Exploration firm Ennex is seeking to raise $240 million (€219 million) to develop a zinc mine at its site in Shaimerden, Kazachstan, although the company's chairman, Mr Brian Cusack, said it would sell the site "if somebody offers enough".
Potential investors have expressed doubt about "three major hurdles", Mr Cusack told yesterday's annual meeting. These were: the technology Ennex plans to use in the project; the size of the zinc deposit; and the political situation in Kazachstan.
The company rejected these concerns, and calculations by its management suggested the project was worth $120 million, Mr Cusack added. "We will be able to bring the project to production."
On worries about the political situation in Kazachstan, he said: "In any former Soviet country there is an issue. The further east you go the more problematic it gets."
He added, however, that major corporations such US oil group Chevron, Korean conglomerate Samsung, and the Indian owners of the former Irish Steel plant in Cobh, Ispat, had made significant investments in the state.
The most recent feasibility study indicated that Ennex could produce zinc at less than 17 cents per pound, "potentially the cheapest production of zinc in the world".
Ennex would send an information memorandum seeking funding to other companies in its sector in September, said Mr Cusack. Speaking after the meeting, he said the project would carry $160-$180 million straight debt; $60-$80 from a joint venture partner and additional sums from forward contracts.
A lead-in period of three years was required to finance the project and construct the mine, said Mr Cusack. The site had a zinc supply of 1 million tonnes, he added.
