asked the Minister for Energy if he will state in respect of the lead and zinc ore which has to date been exploited by Tara Mines Limited from the State mining lease area at Navan, the tonnage and grade of such ore and its approximate in situ value based on the prices current at the time of its extraction; the monies paid by Tara Mines Limited to the Exchequer by way of dividend, corporation tax or royalty since it commenced mining operations at Navan; in respect of the State mining lease granted to Tara Mines Limited, the tonnage and grade of the proven and probable ore reserves as defined in the mining industry which existed within the leasehold at the start up of mining operations; and the tonnage and grade of such proven and probable ore reserves which now exist within the leasehold.
Written Answers. - Tara Mines Operation.
Tara Mines Limited — Proven and Probable Geological Ore Tonnages and Grades.
|
At Start-up |
Extracted to 31 December 1985 |
Reserves at 31 December 1985 |
||||||
|
Tonnes (Million) |
Zinc % |
Lead % |
Tonnes (Million) |
Zinc % |
Lead % |
Tonnes (Million) |
Zinc % |
Lead % |
|
22.446 |
12.37 |
2.64 |
13,369 |
11.48 |
2.47 |
27.562 |
9.33 |
2.23 |
An additional tonnage of 5.999 million tonnes was established between start-up and 31 December 1985 and other ore in the "possible" ore category at start-up was subsequently up-graded to the "proven" and "probable" categories. An in situ ore value, derived by multiplying tonnage by price per tonne is not a valid ore valuation approach as it does not take account of ore mineability or of ore extraction and other costs. In any event it would not now be possible to undertake such a task without an expenditure of staff time disproportionate to the utility of the results which might be achieved. If the Deputy would wish me to do so I can make available to him the consolidated accounts of Tara Exploration and Development Company limited which will provide him with details of the net outcome of the mining operations conducted by Tara Mines Limited for each year to 31 December 1985.
Tara Mines Limited has paid no dividend to shareholders to-date and has paid no royalty to the State for reasons which I enunciated in reply to a Question by Deputy MacGiolla on 5 February 1986. To date the company has paid £313,000 in corporation tax and £78,000 in dead rent to the State.