:: Kumba Adds Zinc Refinery to Chinese Investments

Kumba Resources has approved an equity joint venture to expand and jointly operate the Lindong roaster and the Hongye zinc refinery in Inner Mongolia. An agreement was signed in August 2002 to expand the current 24 kt/y operation to a 50 kt/y zinc slab producer in which Kumba will hold a 60% stake. A feasibility study has been completed, and construction has started and is scheduled to be completed towards the end of 2003, with full capacity expected by July 2004. Operations will be managed through the joint venture company Chifeng Kumba Hongye Zinc Corporation Ltd. China has become the world's most important market for base metals, and Kumba said that the Hongye project could serve as a platform for further investments in the region.