During 2005, Polymetals entered into the 50/50
Hellyer Zinc Concentrate Joint Venture (HZCJV)
with Intec Limited (ASX: INL) to fund, manage
and operate the Hellyer Tailings Re-treatment
Project located in Tasmania. The HZCJV exploited
the then high lead and zinc prices to enable profitable
production of a bulk concentrate from the lead/zinc/silver
tailings. The operation utilised the existing
Hellyer plant and a 90 tonne dredge (mobilised
from WA) to produce concentrate that was shipped
to Chinese smelters.
Polymetals’ experience and rapid development
enabled the Company to make an early start to construction in June 2006 and produce first concentrate
in November of that year.
The first 5kt concentrate shipment departed the
port of Burnie in January 2007.Under Polymetals’
management the operation was successful, exceeding
key budgeted production targets. Base metals price
volatility at the time encouraged Polymetals to
mitigate risk through hedging which proved prudent.
In July 2008, Polymetals withdrew from the HZCJV
due to the downturn of the lead/zinc market, but
not before it had made strong profits from the
operation. Polymetals concluded its role as manager
of the Hellyer Project having produced 17kt of
zinc and 5t of lead (Polymetals 50% share).
