(MENAFN- Muscat Daily) Muscat -
The London-listed minerals processing firm Tri-Star Resources announced that it has successfully resolved the technical issues faced by its antimony-gold processing facility in Sohar, and is now working towards ramping up the production in Oman.
In a communiqué to the London Stock Exchange, Tri-Star said that its Oman-based associate firm Strategic & Precious Metals Processing (SPMP) has been able to complete the remedial works to resolve the technical issues, which hampered production, particularly related to the installation of a new gas cooling solution and modifications to the electric furnace that have been successfully tested with a variety of calcine inputs.
'SPMP now expects to be able to move to the production phase of processing antimony and gold dore', Tri-Star said.
Tri-Star owns a 40 per cent stake in SPMP along with Oman Investment Fund, which also holds 40 per cent shares in the project, and the remaining 20 per cent stake is held by DNR Industries, a part of Dubai-based Dutco Group.
'The successful plant modifications are highly encouraging with SPMP now being able to focus on production of metal, ramp up and concluding appropriate supply and off-take agreements. Now that the production phase is nearing, we intend to move to a quarterly reporting schedule in order to provide a regular news flow to investors,' Adrian Collins, chairman of Tri-Star said.
The SPMP plant is the largest antimony roaster outside of China and the world's first 'clean plant', designed to EU environmental standards. It has a targeted capacity to produce in excess of 50,000oz of gold and 20,000 tonnes in combined antimony metal and antimony trioxide per annum.
'As the facility approaches production, SPMP is committing additional resources to progressing off-take agreements with a number of potential customers internationally,' Tri-Star said. The SPMP board does not expect securing such off-take agreements to be problematic once the plant nears commercial production, it said.
Tri-Star said that the delay of over a year in commencing metal production together with the cost of remedial works, has increased SPMP's funding requirements. 'Accordingly, SPMP has appointed Hannam & Partners to secure further debt funding for the project. It is considered by the SPMP board that the most likely funding sources will be the regional banks and specialist debt investors', the firm added.
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