Dáil Éireann debate -
Thursday, 13 Nov 1997

Vol. 482 No. 7

Written Answers. - Mining Enterprises.

Derek McDowell

Question:

56 Mr. McDowell asked the Minister for the Marine and Natural Resources if he will give details of the approval given to the Lisheen Mining Enterprise, County Tipperary, including the projected levels of employment; and if he will make a statement on the matter. [19116/97]

Minister for the Marine and Natural Resources (Dr. Woods)

On 7 October last I granted a State mining lease for the development of a major new zinc-lead mine at Lisheen, County Tipperary. A summary of the principal terms of the lease are as follows.

This development will provide over 300 highly paid jobs during mining operations which are expected to commence in mid1999. About 700 jobs, many of them local, will be created during the construction phase. In addition to the benefits to the local economy from wages and salaries, the mine's earnings will be applied in part to the purchase of goods and services in Ireland, the value of which is expected to be in the region of £13.5 million per annum. This does not take account of purchases during construction which are estimated at £40 million.

Summary of Main Terms of Lisheen State Mining Lease

1 Lessees:	Minorco Lisheen Mining Ltd., Ivernia Lisheen Mining Ltd. and Lisheen Mining Ltd.
2 Term of Lease:	30 years
3 Area of Lease:	About 9.3 km²

4Financial Terms:

(a) Royalties:

—1¾ per cent of Revenues per annum for the first three years of production;

—3 per cent of Revenues per annum for the fourth and fifth years of production;

—4½ per cent of Revenues per annum for each subsequent year of production.

(b) Dead Rent (to merge with royalties):

—£50,000 for first year of lease;

—£100,000 for second year of lease;

—£300,000 per annum for third and each subsequent year in which minerals are being worked;

—£20,000 per annum thereafter.

Note: Revenues for royalty purposes are revenues before interest and taxation. Dead rent and royalties are payable half yearly.

5Closure Provisions:

The lessees are required under the lease and in accordance with the conditions of the planning permission to establish and maintain a bond of at least £9.5 million, indexed in accordance with the wholesale price index — building and construction (capital goods) to provide for the orderly shut down of the mine and the restoration and rehabilitation of the site when production has ceased.