The tantalum shop is open for business. << demand for tantalum is expected to recover. << significant increase in the demand for semiconductors << manufacturing facilities returning to full production.
======================================== ATE Exports Initial Tantalum Concentrate
The Directors of Australasian Gold Mines NL (the "Company") are please to announce that the Company has delivered and has been paid for its initial shipment of tantalum concentrate to an overseas customer. This shipment was followed by a second shipment this week of 12,000 lbs of concentrate for a total shipped of 22,000 lbs. These shipments will be followed by monthly shipments of up to 5,000 lbs of contained Ta2O5 until December 2002.
In the meantime, the Company expects to finalise another supply contract within the next few months for the supply of concentrates to Japan.
Being awarded further contracts will determine the timing of the development of the Binneringie and Mt Deans projects to meet the demand for concentrate. The Company has commenced the feasibility studies of both projects which are expected to be completed in the last quarter of this year.
The demand for tantalum is expected to recover late 2002 and in the first half of 2003. There has been significant increase in the demand for semiconductors in Europe, Japan and US over the last few months with manufacturing facilities returning to full production.
The initial shipment has reinforced the Company's commitment to the tantalum industry and justifies the establishment of its own mineral dressing plant at Balcatta that has been used to upgrade the concentrates produced from the Company's Dalgaranga processing plant. It is believed that this is the only independent tantalum mineral dressing facility in the southern hemisphere outside of Sons of Gwalia's operations. The mineral dressing plant has the capacity to meet the expanded volume of material that will be produced from the Binneringie, Walwa and Mt Deans projects. The plant's capacity would also allow for the toll treatment of third party material.