The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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34 | ASIA Miner | Volume 14 • Issue 1 | 2017 Vietnam NEXIF Energy, a South East Asian independent power producer, has entered into an agreement to subscribe additional equity in Viet Hydro Pte Ltd. The proceeds will be used by Viet Hydro to further consolidate its holdings in the Coc San hydro-electric project in northern Vietnam. "Nexif Energy is pleased to increase its commitment to the Coc San project, which recently completed construction and com- menced operation," said Nexif Energy founder and co-chief execu- tive officer Surender Singh. "We also look forward to making more investments in Vietnam's power sector." Coc San is a run-of-the-river 30MW hydro power project in the Dum River Valley, a tributary of the Hong (Red) River. It is approxi- mately 300km northwest of Hanoi in Lao Cai province. "The Coc San project is regarded as a model hydro project for en- vironmental and social compliance by multilateral organisations, lo- cal government and communities, and Viet Hydro is thankful for the cooperation extended by the government, employees and contrac- tors that resulted in the successful implementation of the project," said Viet Hydro chairman Srinivas Rao, who is also Nexif Energy's executive vice president, projects and operation. Nexif Energy will subscribe to additional shares in Viet Hydro and Viet Hydro will use the proceeds to acquire the remaining holdings in the project of Colben Energy Holdings (Vietnam) Limited, and HVD Construction and Investment Consultant JSC, which will in- crease Viet Hydro's shareholding in the project to 92%. InfraCo Asia Development Pte Ltd will retain its minority interest in Viet Hydro. "Vietnam is a key target market for Nexif Energy. Further invest- ment into Coc San is a testament of our commitment to the country. We aim to become a leading independent power generation com- pany in Vietnam and are currently evaluating a number of additional promising investment opportunities there," added Nexif Energy's executive vice president of business development Enamul Latifi. Nexif Energy, which was formed in August 2015 by Nexif, a Sin- gapore-based independent power management company, and Denham Capital, a global energy-focused private equity firm, is also completing the acquisition of OneWind's late stage development wind projects, the 212MW Lincoln Gap project in South Australia and the 90MW Glen Innes project in New South Wales. It has ac- quired OneWind's 32% share in RPVD Development, which owns the Walkaway II wind and solar projects in Western Australia. ZincOx Resources plc has entered into a Memorandum of Understanding (MoU) with Korea Zinc Company Limited for the joint development of a recycling plant in Vietnam. The MoU sets out the principle terms of a Joint Venture Agreement under which Korea Zinc and ZincOx will jointly design and develop the new recycling plant. The recycling plant will be based on the Rotary Hearth Furnace (RHF) technology developed by ZincOx in Korea, and where Ko- rea Zinc is the company's partner. The Korean Recycling Plant is one of the world's largest facilities recycling the waste dust (EAFD) generated by recycling galvanised steel scrap and has an annual design capacity of 200,000 tonnes. The Vietnam recycling plant is planned to annually treat 100,000 tonnes of EAFD and in addition to upgrade both the iron and zinc intermediate products of the RHF to final products. The MoU foresees Korea Zinc funding 100% of a definitive de- velopment study (DDS) in sufficient detail to enable the raising of project finance for construction of the project. The DDS is expected to cost about US$2.5 million. Korea Zinc will own 51% of a special purpose company which will be set up to develop the recycling plant, with the remaining 49% held by ZincOx. ZincOx's CEO Andrew Woollett said, "We can now accelerate the program for the development of this important project, and we look forward to entering into the full Joint Venture Agreement in the very near future." Meantime, on January 11, 2017 ZincOx entered into a sale and purchase agreement with Korea Zinc in regard to the company's remaining interest in Zinc Oxide Corporation (ZOC), formerly known as ZincOx Korea Ltd, owner of the Korean Recycling Plant. Korea Zinc has agreed to pay US$7.950 million in two tranches for the remaining interest in ZOC, of which US$7 million is to be paid within three weeks and the balance once Korea Zinc has complet- ed various procedural requirements in Korea. The carrying value of this asset shown in the interim statement of the company at June 30, 2016 was US$5.8 million, thus the trans- action results in a gain of approximately US$2 million. Proceeds will be used to repay the company's Corporate Loan Notes which amount to approximately US$5 million. The balance will be used to progress other ZincOx projects. Additional hydro equity for Nexif Energy ZincOx plans recycling plant The Korean Recycling Plant in South Korea at which the waste dust gener- ated by recycling galvanised steel scrap is recycled.

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