Australia?s Olympia Resources to build zircon processing plant in Banjarmasin

Australian company Olympia Resources Limited said Wednesday its Board had approved the construction of a 25,000 ton-per-annum (tpa) zircon processing plant in Banjarmasin, South Kalimantan, following the completion of a very positive feasibility study on the project.

Feasibility Study confirms net cashflow (before interest and tax) of A$54.8 million over 10 years, Olympia said in a statement.

Olympia said at full capacity the $3.1-million plant will be fed with 35,000 tpa of zircon concentrate which is predicted to produce 23,555 tpa of zircon, 1,570 tpa of rutile and 1,166 ounces per year of gold.

The feed for the processing plant will be purchased from artisan miners in Indonesia by Olympia?s trading company, Sinol Trading Pte Ltd. (Sinol). Sinol is a Singaporean trading company owned 60 percent by Olympia Resources Ltd and 40 percent by Sinarco Resources Pte Ltd.

Olympia will sell most of the zircon and rutile produced into the fast growing Chinese market and already has in place supply agreements with two Chinese customers.

?Olympia Resources is currently arranging finance for the Processing Plant and expects to finalise detailed engineering by the end of 2006 and construct the plant in the first half of 2007,? the company said.

It added that the processing plant will be operated by PT Olympia Indonesia which is 90 percent owned by Olympia Resources Ltd and 10 percent by Olympia?s Indonesian partner, Ali Susanto. (Robert)