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MEI Online: General Minerals Engineering: Latest News: December 15th 2006


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:: Ausmelt to Establish Metallurgical Laboratory

Ausmelt Limited (AET) is expanding its operating base by establishing a new metallurgical laboratory and minerals testing business. The new business will be called Ausmelt Minmet Metallurgical Laboratories (AMML) and will be based in Gosford, NSW.

Ausmelt Managing Director, Mr Paul Abbott, said today the decision to establish AMML was "a lowcost and low-risk growth strategy for Ausmelt."

Mr Abbott said work on the venture would begin immediately and AMML should begin generating revenue from the March quarter in 2007. He said capital expenditure on the venture would be modest and would be funded entirely from internal cash resources.

The new venture will be managed by Mr Graeme Sheldon. "Graeme Sheldon has over 30 years’ experience in minerals process testing and laboratory management. He was one of the founders and directors of Metcon Laboratories in Sydney," Mr Abbott said.

"The new business will have strong synergies with Ausmelt’s AM2 chemicals business and there is potential to expand AMML through both acquisitions and organic growth. It is a small, but positive first step towards converting Ausmelt into a diversified provider of technology, engineering services and related products to the mining, metals and associated industries worldwide."

Mr Abbott said clients for the new business would be drawn from throughout Australia and overseas - particularly off-shore projects owned or managed by Australian mining companies.

"We believe the new venture is well-timed. The current capacity of metallurgical laboratories in Australia cannot match demand and this situation is expected to continue for some time." AMML’s core business will be testing for gold and base metals, specialising in flotation and hydrometallurgical testing. Work would include metallurgical testing and development for new mining operations, process development for existing projects and project expansions.

The metallurgical laboratory would initially specialise in flotation test work on gold and base metal ores but over time would extend to other testing and metallurgical process capabilities such as cyanide leaching of gold ores, gravity separation of gold and tin ores and acid leaching of copper, nickel and uranium.




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