HAZELWOOD ENTERS OPTION TO ACQUIRE WOLFRAM CAMP.
TUNGSTEN MOLY MINE TO SHORE UP SUPPLY CHAIN.
KEY POINTS:
• Hazelwood considering the acquisition of idled Wolfram Camp mine in Queensland
• Wolfram Camp has process plant & infrastructure in place; a re-start study is proposed
• A potential additional source of tungsten feedstock for Hazelwood’s downstream processing
• Adds to future supply chain with Big Hill Tungsten Deposit & Mt Mulgine Project in WA
• Ferrotungsten plant scheduled for commissioning in March quarter 2011
• Marketing Agency Agreement in place with leading trader WOGEN
Hazelwood Resources Ltd (ASX: HAZ), an emerging ferroalloy producer, is readying for the commissioning of the largest advanced ferrotungsten furnace outside of China in 2011. This refining business ultimately aims to be vertically integrated with Hazelwood’s own feedstock source from the Big Hill Tungsten Deposit in Western Australia. To accelerate the vertical integration and decrease reliance on third-party feedstock, Hazelwood is also considering the acquisition of the mothballed Wolfram Camp tungsten-molybdenum mine in Queensland.
“Hazelwood is moving towards being a successful, vertically integrated tungsten business. Most of the global tungsten industry is vertically integrated. We have chosen to operate in the scarce, high margin
alloying sector. We are nearing the completion of construction and will be selling tungsten next year. Hazelwood is overdue for a re-rating”, commented Hazelwood Managing Director Terry Butler-Blaxell.
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