Coziron signs lead supply deal with Chinese firms

Australian mining firm Coziron Resources Limited announced on Wednesday it has signed lead ore purchase contracts from its mining business unit in Padang, West Sumatra with Chinese firms Citic International and Hunan Guiyang Yinxing Non-ferrous Smelt Co.Ltd.(HGY)

The company will ship 500 tons of lead ore to Citic this month and another 500-1000 tons per month for one year will be shipped to HGY, Coziron said.

According to the company, it will go down stream to set up flotation plants in Padang and West Kalimantan to open up the ore grade for processing. The company is also planned to extend of building smelting and electrolyzing plants to produce lead ingot.

Coziron is currently in final discussion to form a joint venture with local firm PT Galian Bumi Khatulistiwa in West Kalimantan to secure a lead tenement with covering area of 5,890 hectares.

In Feb 2008, Coziron has signed heads of agreement to joint venture with PT Galian Endapan Buana (GEB) to develop a lead trading, exploration and mining business in West Sumatra

GEB which holds an exploration license on a tenement in Solok Selatan, West Sumatra, with an area of 500 hectares, has been awarded a lead export license by the West Sumatra Government effective 11 February 2008. It will collect one to two thousand tons of lead ore per month, delivered to the warehouse in Padang. (denny)