Chinese firm to mine zircon sands in Indonesia

China Zirconium, China's largest manufacturer of zirconium products, said it will invest US$31 million (HK$241.8 million) to open a new zircon mine in Indonesia and a new production plant in Binhai, The Hong Kong standard reported Thursday.

China Zirconium will invest US$11 million in a US$20 million zircon mine project, which will be operated by Asia Prima Resources, a joint venture formed with Indra Putra Mega.

The mine in Indonesia will launch zircon sands in the China market in March next year.

Yang said the project, in which China Zirconium holds 51 percent, would help to secure "a cheaper and more stable supply of zircon sands."

By 2010, all zircon sands used by the company will be sourced from its zircon mine. The report did not say the mine's exact location.

Yixing-based China Zirconium invested US$20 million to build the new Binhai plant, which starts production next June. When fully operational in 2010, the plant will produce an annual 45,000 tons of zirconium oxychloride, a basic material that can be turned into other zirconium compounds.(*)