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Dáil Éireann debate -
Thursday, 31 Oct 1985

Vol. 361 No. 4

Written Answers. - Establishment of Zinc Smelter.

21.

asked the Minister for Energy the total tonnage and value of exported zinc, lead and copper concentrates in the latest year for which figures are available; if, in view of the huge exports of ore concentrates from this country, the Government will again examine the possibility of establishing smelting facilities here; and if he will make a statement on the matter.

27.

asked the Minister for Energy if he will consider having an expert study carried out on the feasibility of establishing a smelter in this country, in view of the overcapacity in electricity generation that will be available after Moneypoint station comes on stream.

I propose to take Questions Nos. 21 and 27 together.

The amount and value of zinc, lead and copper concentrates exported from Ireland in 1984 were as follows:

Concentrate

Tonnes

Value

Zinc

403,706

£102,365,000

Lead

61,114

£7,364,000

Copper

Nil

Nil

A detailed investigation of the prospects for establishment of an Irish zinc smelter was carried out by the Industrial Development Authority in 1976 and 1977. An American company indicated positive interest in the project but due to a serious downturn in the international zinc market they did not maintain their interest and withdrew from the project.

The IDA has reviewed the project periodically since then. A review carried out recently, involving up-dating of capital costs, revenues, electricity, transport, wages and salaries, reagents and other variables, concluded that the project is still not viable. Continuing over-capacity in the industry, high energy costs and inadequate metal prices continue to be serious adverse factors militating against successful establishment and operation of a zinc smelter in Ireland.

I have been informed by the ESB that any excess capacity in the system, even following the commissioning of Money-point, is likely to be of comparatively short duration. The construction of a zinc smelter based on such a capacity situation would not per se, be a practical proposition.

A decision on the question of establishment of lead smelting capacity cannot be taken until firm decisions in favour of a zinc smelter and on the smelting process to be used, are taken. If a process involving joint production of zinc and lead was decided on there would be no necessity for a separate lead smelting facility.

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