asked the Minister for Industry and Commerce when construction of a smelter for lead and zinc concentrates will commence; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Lead and Zinc Smelter.
13.
Studies on the establishment of a zinc smelter at present being carried out have not yet been completed and it is not possible at this stage to supply the information sought by the Deputy or to make a detailed statement on the matter.
Does the Minister agree that in view of the large concentrates of lead and zinc which will become available in the next year or two from Navan, both from the Tara and Bula Mines, not to establish a smelter for those concentrates would be to lose a high proportion of those resources for the nation?
Yes, I agree.
In those circumstances would the Minister give a guarantee to the House now that, in so far as it is in his power, he will ensure that a smelter will be established within the next year or two?
I have already given a guarantee of an Irish smelter. I am happy to reiterate the guarantee of an Irish smelter.
Are we to take it that there definitely will be an Irish smelter?
The Deputy said in so far as lies within my power. I have already given that guarantee and I reiterate it.
Question No. 14.
Are discussions actually taking place at the moment towards the financing of such a smelter?
There are a number of stages. Since this is a project that would cost of the order of £50 million or more there is what is called a pre-feasibility stage which determines the general parameters which will have to be taken into consideration, whether the basic idea is sound. That stage is completed. You then go into a lot more detailed work, which is expensive and lengthy, and which you do not undertake unless you have crossed the first hurdle. We have crossed the first hurdle and we are in the course of feasibility studies. They involve contacts with firms with the actual technological expertise to smelt and also with the financial institutions that finance such enormous amounts of investment.
Will the State be taking a share or an equity interest in this smelter?
I am not in a position to give finite details but that is my intention.
Question No. 14.
What sort of proportion?
I really cannot give those details to the Deputy now.
Will the smelter be available when the concentrates become available in about two years time?
I have made clear that they will not be. There will be a period during which we will allow the export of concentrates because it is desirable that we get the employment in Navan and some profits for the companies quickly so there will be a matter of a year or two when we will be exporting concentrates but not smelting in Ireland. The lead time for a smelter is three to four years.
Can the Minister give an assurance that the period of the export of concentrates will not exceed two years?
If I gave that explicitly without any qualification I would consider that binding and I do not want to use words lightly. I would find it impossible to give that guarantee with absolute certainty because the Deputy knows as well as I do that there are imponderables of various kinds. While that is an intention with a high likelihood of being realised I could not guarantee the certainty of its being realised.