AUSTRALIAN METAL TRADER LINKS TO ASTURIANA DE ZINC
<Metal Traders Australasia Ltd> said a
newly-formed subsidiary, the <Austmet Ltd> group, has
negotiated an exclusive long-term contract with Spain's
<Asturiana de Zinc> to market its zinc metal exports.
    Metal Traders said in a statement the contract would
underpin the worldwide zinc, copper and lead trading activities
of Austmet, a wholly-owned London-based company with a U.S.
Unit in Stamford, Connecticut.
    Austmet has recruited a group of base metal traders,
currently operating out of Britain and the U.S., Who have
handled Asturiana's business for the past five years, it said.
    Asturiana has a three-year option to purchase 25 pct of the
Austmet group, to be priced on an independent valuation at the
time of exercise, Metal Traders said.
    Austmet will have an initial equity base of one mln stg, a
turnover of 200 mln Australian dlrs rising to 300 mln in the
first year, and credit lines of up to 30 mln U.S. Dlrs.
    Austmet should be generating profits from July 1 and a
1.5-2.5 mln dlr net is envisaged within two years, it said.
    Metal Traders said Asturiana has the largest zinc smelting
capacity in Europe -- nearly 200,000 tonnes a year of 99.995
pct high-grade zinc, at Aviles in northern Spain.
    Metal Traders, a listed company, was formerly <Pyrotech
Resources N.L.> whose chief activity was the development and
marketing of high-technology smelting processes invented in
Australia, notably the Siromelt Zinc Fuming Process.
    But in late 1986, control of the company changed and it
expanded by acquisition into metal trading in Australia and
Asia. It then changed its name.
    It also has the marketing contract for mineral sands
produced by <TiO2 Corp N.L.>, of which it holds 17.5 pct.
    In today's statement, Metal Traders also said it is
reviewing possible acquisition of a mineral producer.
 REUTER
