Padaeng eyes Vn market

Padaeng Industry is interested in exporting zinc to Vietnam and opening a silicate smelting plant there.  Managing director Andre Van Der Heyden yesterday said the company would ship its zinc to Vietnam to create brand awareness.

Vietnam's demand for zinc is expected to grow from 40,000 tonnes to 50,000 tonnes this year and almost 100,000 tonnes next year, which is close to Thailand's consumption of 107,000 tonnes.

The company is exploring a silicate lode in northern Vietnam that shows potential for supporting a smelter.

At home, the company recently clinched special mineral-prospecting licences for eight sites in Tak, Chiang Mai and Phetchabun, besides its existing 20 sites.

It also has projects to explore for minerals in Lamphun and Kanchanaburi, as well as Kasi district of Vientiane.

Van Der Heyden said the company would post a profit this year, despite a net loss of Bt37 million in the first quarter against a net profit of Bt313 million in the same period last year.

The loss was due to the high cost of ore inventory against the low global zinc price, which has dropped to US$2,300 (Bt74,400) per tonne, from $4,500 before.

The company had to halt mining last October, due to the expiry of its licence, which was extended by 15 years just last month.

The company forecasts that it will produce less ore and zinc than last year.

This year it is expected to produce 125,000 tonnes of ore, of which 30,000 tonnes will be zinc.

On average, it can produce 175,000 tonnes of ore, of which 37,000 tonnes are zinc.

However, the company believes the reduced output will not hit its financial performance, since it will import zinc to compensate for the 7,000 tonnes it could not produce.