Ausmelt has announced signing of a MoU with Zinifex for the processing of zinc bearing primary leach residues from Zinifex's zinc productions at Risdon in Tasmania for a 2 year period with renewal options resulting in expected revenues of about A$27 million. The MoU is subject to final feasibility studies, regulatory approvals and concluding a final agreement.

Under the MoU terms, Ausmelt would process 55,000 tonnes of primary leach residue feed at its smelter facility at Whyalla in South Australia and recover a high zinc content product for return to Zinifex as an attractive feed for its zinc production operations.

As per the release, final decision on the project is also subject to Zinifex satisfactorily resolving transport costs for both product and feed movements to and from Whyalla.