Australian Strategic Materials (Holdings) Limited, a subsidiary of Australia Strategic Materials Limited (ASX: ASM), and Korea’s Dongkuk Refractory and Steel (DK R&S) have signed a joint development agreement over the development of high purity-metal refining technology.
The pair will combine on the development of a 250kg / day metal plant incorporating the innovative and patented low emission, high purity metal-refining technology in Korea to be acquired by ASM through the acquisition of a 95% interest in Ziron Technology Corporation.
ASM Managing Director, David Woodall said the agreement with DK R&S brings together the strengths of ASM with its innovative metal technology and DK R&S, a leading innovative manufacturer of metals and refractory products within the Korean and global markets.
“This production facility will prove Zirontech’s patented low emission, high purity metal-refining technology at scale, paving the way for a 3,000 to 5,000 tonne per year metal plant in Korea.
Our team in Korea is now progressing the confirmation of the continuous commercial metal production process with significant benefits for Korea, Australia, and the global customers that are faced with changing dynamics in the critical metals supply chain,” Mr Woodall said
Key terms of the ASM and DK R&S Joint Development Agreement for the Commercial Test Plant are:
- Design, develop, construct, install and verify a 250kg per day commercial grade continuous reduction system
- 250kg reduction furnace, design, assembly, and verification will be undertaken at facilities operated by DK R&S under the supervision of a temporary Joint Task Force, with the completed furnace jointly owned by ASM and DK R&S
- The total budget for designing, developing, assembling and installing of the Commercial Test Plant is USD 1 million paid in a 60:40 ratio between DK R&S and ASM
- Basic and detailed design of the Commercial Test Plant to be complete within four months from the date of the Agreement
- Ownership of relevant intellectual property is retained by ASM
- The agreement will terminate if the testing is not successful within 12 months of signing.
ASM is continuing to progress strategic partner, offtake and financing discussions in Korea. The discussions are preliminary and remain incomplete and it is uncertain whether any of these discussions will lead to a proposal for the consideration of ASM’s directors or shareholders.
Established in 1974, DK R&S has been supplying refractories, fine ceramics, steel manufacture to various industries globally and domestically within Korea for over 46 years.