Zinc of Ireland (ASX:ZMI) secures $1.2m grant for ARGO

Zinc of Ireland has secured a €734,000, approximately $1.2m, government development grant from the Flanders Innovation & Entrepreneurship agency, known as VLAIO, to support the advancement of its ARGO metallurgical technology from Technology Readiness Level 4 to Pilot Plant phase at Technology Readiness Level 7.

Highlights

VLAIO is a Belgian government agency responsible for providing financial support and strategic guidance to companies operating within the Flemish Region.

Its development funding supports enterprises working on innovative products through to Technology Readiness Level 7, which includes demonstrators, pilots and scale ups.

The recipient of the grant, Metallon Clean Extractions BV, known as Meclex, is a ZMI subsidiary focused on the company’s metals technologies.

The funding supports ZMI’s strategy of developing metallurgical processes to recover valuable metals from industrial residues and recycling streams.

ARGO is a hydrometallurgical process designed to treat zinc leach residue generated during primary zinc smelting and refining, with approximately 20% of zinc smelter throughput ending up as zinc leach residue.

The process is designed to recover zinc, lead and silver, together with the potential recovery of the critical minerals gallium, germanium and indium.

According to the announcement, ARGO offers the potential to provide a new source of critical minerals, eliminate hazardous waste elements from the current pyrometallurgical route, and reduce energy consumption and emissions.

ZMI recently accelerated and expanded its development work, with the program focusing on the recovery of germanium, gallium and indium.

The grant will cofund work at Solvomet, the Catholic University of Leuven’s Research Centre for Circular Hydrometallurgy.

Solvomet supports mining, metallurgical and recycling companies in developing circular, low energy input hydrometallurgical processes using laboratory and pilot scale experimental facilities and modelling capabilities.

A major 12 month testing program has been designed to progress the ARGO flowsheet to pilot phase by early 2027.

VLAIO will progressively fund the majority of the work at Solvomet over the next 12 months, based on an agreed budget and schedule, with numerous key deliverables targeted for completion during that period.

ZMI Chief Executive Officer Greg Ross said:

“This grant allows ZMI to strongly invest in the development of ARGO, progressing further and faster towards commercialisation, with substantial news flow expected as we progress to pilot plant testing by early 2027”.

The Flanders region is a global producer of zinc and lead products and includes Nyrstar’s Balen smelter, with ZMI holding a cooperation agreement with Nyrstar, an international producer of industrial and critical minerals and metals, including zinc and lead.

Under the agreement, Nyrstar provides ZMI with zinc leach residue feedstock, industry know how and testing facilities.

The cofunding agreement comprises VLAIO’s €734,000 contribution and €489,000, approximately $0.8m, from Meclex’s existing cash reserves.

Its term is 24 months, although continuation after 12 months is contingent on Meclex providing the required financial statements and an updated budget covering the remaining project period.

VLAIO can terminate the agreement early, revise the grant, reclaim funds or suspend payments in cases of project noncompliance, underperformance or failure to meet reporting deadlines, with these conditions forming part of the disclosed funding arrangements.

ZMI is also considering establishing its European head office and a laboratory in the Flanders region to support ongoing product development and marketing activities.

The company’s announced work program now centres on completing the scheduled Solvomet testwork and progressing ARGO towards pilot plant testing by early 2027.