Drone Footage of the SPMP project as at May 2018
The SPMP Project is a commercial metal processing facility which will produce high grade antimony ingots, powdered antimony trioxides (“ATO”), gypsum and gold ore bars.
Feedstock will be sourced internationally and will be treated by an environmentally friendly roasting process starting in 2019.
Oman joint venture
SPMP was formed in June 2014 to develop and build the Project. Tri-Star has a 40% equity interest in SPMP, with the other joint venture partners being The Oman Investment Fund (“OIF”) (40% equity holder) and DNR Industries Limited, part of Dutco Group in Dubai (20% equity holder). Tri-Star also has an $22.8 million mezzanine instrument in SPMP accruing 15% interest per annum, alongside the other joint venture partners who also have mezzanine instruments with SPMP on similar terms.
The Project remains an attractive prospect for Tri-Star for the following reasons:
SCALE: The Project is the largest antimony roaster outside of China and the world’s first ‘Clean Plant’, designed to EU environmental standards. It will have the capacity to produce more than 50,000 oz. of gold per annum and 20,000 tonnes in combined antimony metal and antimony trioxide (“ATO”) products which represents 12%-15% of average annual world antimony production and will thus establish Oman as a major global producer of antimony.
EARNINGS: The Project will generate significant revenues, divided approximately 60:40 between antimony and gold. In terms of developing end products, antimony derivatives offer the potential for further margin growth over and above the normal conversion margin.
TECHNOLOGY: The Project applies a proprietary antimony and gold roasting technology that is flexible and sophisticated enough to be able to process many types of grade and impurities.
LOGISTICS: The Project will supply value added antimony products to customers across the globe. The location of the Project in the Gulf region provides an excellent centralised logistics route, and access to relatively inexpensive energy and modern infrastructure.
DEMAND FOR PRODUCT: Antimony is a rare metal with a range of industrial applications. Amongst other things it is used as an additive to flame retardant compounds, utilised in printed circuit boards, computers and other electronic products. Antimony has consistently ranked highly in European and US risk lists for supply of chemical elements or element groups required to maintain the current economy and lifestyle.
BOARD: SPMP has an experienced and internationally focused Board of Directors who have helped manage the project from inception through to near completion.
April/May 2018 – SPMP Project in Sohar, Oman