Sign up Australia
Proactive Investors - Run By Investors For Investors

Ironbark Zinc hosts successful site visit with China Nonferrous and Greenland Government

Citronen represents one of the largest undeveloped zinc resources in the world
Ironbark Zinc hosts successful site visit with China Nonferrous and Greenland Government
Seated right to left, Múte Bourup Egede, Mr. Qin Junman, Ironbark managing director Jonathan Downes and Hammeken-Holm

Ironbark Zinc Ltd (ASX:IBG) has concluded a highly positive site visit to the Citronen project with the Greenland Government Minister for Mines, Múte Bourup Egede and the Deputy Minister, Jørgen T. Hammeken-Holm.

The 100%-owned Citronen Zinc Project located in Greenland is at an advanced post-feasibility stage and valued at US$609mln.

Also visiting was the Vice President of China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd (NFC), Mr. Qin Junman.

READ: Ironbark Zinc to play part in solving zinc shortage

NFC has a Memorandum of Understanding with Ironbark for the potential funding and construction of the Citronen Project, and Mr. Junman led a team of engineers and experts from NFC and the Nerin Group in the site visit as part of NFC’s ongoing project assessment.

NFC is one of the world’s largest construction engineering groups and has the relevant experience and the capability to provide the key equipment for the Citronen project.

The site inspection was successful in introducing the Greenland Government Mines Minister and Deputy Minister to the Vice President of NFC and his selected team.

Background to NFC Agreement

Ironbark is working with NFC under an agreement to:

- Incorporate current Chinese equipment and construction costs into the Citronen Feasibility Study;
- Prepare a Project study report in compliance with the financing requirement of China's banks;
- Ensure the technical criteria is in compliance with local laws, regulations, standards and codes in Greenland and China; and
- Assist Ironbark in securing Chinese Project debt financing for the development of Citronen under the terms of the earlier Memorandum of Understanding.

Next steps

READ: Ironbark Zinc advancing development of global zinc project

Ironbark Zinc Ltd is awaiting the updated Feasibility Study as prepared by CPC which will be released in the near future and also the Feasibility Update being prepared by NFC sometime later.

Ironbark will also update the market in due course the progress of its agreement with NFC in relation to the funding and construction of the project.

Zinc price on the move

The price of zinc has just risen to the highest prices in almost 10 years of over US$2,965 per tonne and at the same time stockpiles are showing a trend of growing metal depletion with the level at new multi-year lows on an almost daily basis.

Zinc is the fourth most mined metal by volume, and is mostly used for galvanising steel.

It has been widely forecast that zinc prices may continue to trend upwards in the near future, driven by increasing tightness in the concentrate market, following the recent closure of several major mines and healthy and growing zinc demand.

This has been observed already with increasing Chinese refined metal imports.


Falling zinc warehouse stock levels are driving a strong zinc price which is providing Ironbark with exceptional leverage to a rallying zinc price.

Adding an additional interesting value twist to the stock, Ironbark has an undrawn US$50mln funding facility provided by Glencore to expand its project base through acquisition.

View full IBG profile View Profile

Ironbark Zinc Ltd Timeline

Related Articles

Picture of uranium in drums
April 24 2018
Daily uranium production rates increased from 427 pounds to 485 pounds during the March quarter.
January 24 2018
Compelling economics at the Hellyer project are underpinning NQ's plans for 2018
Checking a Redmoor core sample
May 11 2018
The Redmoor project's inferred resource has 45,000 tonnes of contained tin equivalent.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use