Base Metals Division - Befesa Silvermet
Global Atomic holds a 49%, non-operated interest in the Befesa Silvermet Joint Venture, at Iskenderun Turkey. BEFESA S.A (FRA.BFSA) is the operator and holds 51%.
Befesa Silvermet acquires electric arc furnace dust (“EAFD”) from steel mills and recycles the EAFD through its Waelz kiln to produce a high-grade zinc oxide concentrate which is sold to zinc smelters throughout the world.
Global Atomic receives cash flow from its Turkish zinc operations through its 49% share of the following:
- Annual dividend payment based on net free cash flow. The dividend is typically declared in March and paid in Q2;
- Quarterly management fees of 3% of net revenues; and
- Sales commissions of US$20 per tonne of zinc concentrate shipped.
Silvermet’s joint venture partner, Befesa Zinc S.A.U. (“Befesa”), is the operator of BST. Befesa has facilities throughout Europe and processes between 45% and 50% of European EAFD. It also has facilities in Korea as well as the Turkish operation.