Calcine Plant
Imported zinc sulphide concentrate, a significant cost of production, is converted into calcine at the Calcine plant in Rayong province prior to being fed to the smelter in Tak province. In 2003 the company reduced the amount of calcine used in the smelting process in order to lower production expenses, resulting in total calcine production of 98,743 mt for the year, compared to 113,764 mt in 2002, or a decline of 13.2%. Instead, more zinc silicate ore, which is less costly, has been put into the production mix.
Since production of Calcine has dropped, so too has the production of its by-product, sulphuric acid. During the year the company produced a total of 98,063 mt of sulphuric acid, a decrease of 15.99% from the year 2002. However, the price of sulphuric acid rose sharply in 2003 resulting in revenue from sales of Baht 101 million, an increase of Baht 30 million from the previous year.
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