asked the Minister for Energy the total State investment in Bula mines to date; the total estimated ore deposits in Bula mines, and its value; when Bula mines will come into production; and the steps the Government are taking to protect their investment in Bula mines.
Ceisteanna—Questions. Oral Answers. - Bula Mines.
17.
The total State investment in Bula Limited to date is £10,205,000. I have been informed by Bula Limited that the in situ geological ore reserves owned by the company range from 20 million tonnes, grading 8 per cent combined lead and zinc at a 2 per cent cut-off, to 10.5 million tonnes, grading 13.9 per cent combined lead and zinc at 5 per cent cut-off. The value of the ore reserves would depend on a number of variable factors at time of extraction such as metal prices, smelter treatment charges, operating costs and exchange rates. It is not possible to say at this stage when extraction of ore from the mine will commence. The company is engaged in discussions at present with certain interests with a view to agreeing on mine development and on elements of major financing arrangements. It is expected that these discussions will be completed in the near future and the outcome will then be reviewed in conjunction with my Department.
Development of the mine is primarily a matter for the management of the company but my Department is keeping in close touch with the discussions in which the management is involved with a view to a satisfactory mine development and financing package.
I am sure the Minister will agree that this is one case in which the Government cannot say that they have taken it over from Fianna Fáil. This was a Coalition deal. I take it the Minister is aware of the deal made under former Minister Justin Keating. Is it a fact that in addition to £10.25 million of taxpayers' money handed out to the owners of Bula by the then Minister of State, the taxpayer must also pay 50 per cent of Bula Mines' debts to the banks which amount to £20 million?
That is not correct. I am surprised at Deputy Mac Giolla being against State involvement in the development of natural resources. His philosophy seems to run counter to that of his party.
What did the State get for their £9.5 million? Why is it that almost ten years later not a teaspoonful has been taken out of Bula? What say has the Minister or the State got in forcing an agreement on Bula Mines? I understand that while we got a 49 per cent stake we only have 24 per cent of the Vote. Is that correct?
Yes, something like that.
We are only talking about £10 million.
The development of the mine is confined to the Minister using his best endeavours to guarantee or raise £10 million. When the company get a viable proposition to develop the mines my Department will give every consideration to whatever package comes before us.
Surely when making the deal the Minister arranged a viable proposition. Otherwise why do they give them the money?
It is primarily a matter for the company to put together a package for the development of the mine. When that comes before my Department we will give it every consideration.
The Minister said the total investment by the State in Bula Mines was £10.25 million. How does he account for the difference between that figure and the figure of £9.6 million in the 1977 Act dealing with Bula Mines? What additional shareholding, if any, did the State get for the extra investment that it appears to have made?
The balance was a loan given to the company last year and in early 1984.
What are the circumstances of the loan?
That is a confidential matter between my Department and the company.
I do not consider it so. In 1976 and 1977 we had a very lengthy debate in this House about the original £9.6 million which has gone down "the Swanee". Therefore, I think we might inquire about this £650,000 which has been loaned. What security was given for this loan?
At this point in time and in view of the negotiations being carried on by the company with a view to the development of the mine, I am not able to tell the Deputy the exact reasons for the loan.
That is not satisfactory. The Minister volunteered the information that a loan had been given to the company—
The Deputy may ask a question.
Once again I must ask the Minister of State to tell the House the reasons for this loan, the circumstances in which it was given, what security, if any, was obtained for it, and when it is repayable?
As I have said, on grounds of confidentiality I am not at liberty at this time to give the information the Deputy requires, but I would be happy to do so at another time.
May I pursue the last matter further?
Question Time is over.
Under what statutory authority was that money loaned? Was it by the Department or the IDA?
On grounds of confidentiality I am not at liberty to give the details.
That is very unsatisfactory. I would like to give notice that I propose to raise this matter on the Adjournment.
I will communicate with the Deputy. The remaining questions will appear on tomorrow's Order Paper.