Austpac Resources is progressing on schedule with construction of the Newcastle Iron Recovery Plant at Kooragang Island in Newcastle, New South Wales with several milestones completed.
Austpac has proven technology that converts waste to valuable products including steel mill waste and iron ore fines into high purity iron metal suitable for steel making, and waste metal chloride liquors into saleable hydrochloric acid.
The plant will recycle mill scale and spent pickle liquor from steel mills and produce iron chips or briquettes and strong hydrochloric acid for sale to the industry. The project commenced in May 2011 and the company expects commercial operations and cashflow in 2012. At full capacity, the plant will produce 19,000 tonnes per annum of high grade iron and over 7,000 tonnes per annum of hydrochloric acid.
Shareholders in Austpac include Kronos International with a 7% interest and BHP Billiton which remains the second largest with a 5% interest. Foundations are complete for the northern and eastern extensions to the process tower for the metallizing and the briquetting areas respectively. All steelwork is being fabricated off site and erection of the briquetting tower will start later this month.
The existing nitrogen tank has been relocated to a new bulk gas storage area and an oxygen tank has also been installed. A Construction Certificate has been issued for the bulk mill scale storage shed and foundations for the mill scale handling area within the Plant are complete.
A prefabricated building to house the new motor control centre has been lifted onto the tower and installation of electrical equipment has commenced. Off-site equipment fabrication is well advanced. Delivery and installation will continue through the December quarter of 2011.
Commissioning of sections of the plant will commence in the December quarter and will continue through the March quarter of 2012. Integrated operations will start when commissioning of each section of the plant is complete and production will commence in the first half of 2012.
(Sourced from www.proactiveinvestors.com.au)
