Written Answers - Glangevlin (Cavan) Gypsum Deposit.
Brendan Smith
Ceist:
30
Mr. B. Smith
asked the
Minister for Transport, Energy and Communications
when he expects the gypsum deposit at Glangevlin, County Cavan, to be extracted; the specific measures, if any, he has taken to ensure that no further delay occurs in mining this valuable deposit; the further measures, if any, he has taken to ensure that the extraction of this major deposit will lead to the processing of the gypsum locally in order to ensure the maximum benefit to the local community in the creation of employment.
[2032/96]
Brendan Smith
Ceist:
39
Mr. B. Smith
asked the
Minister for Transport, Energy and Communications
the reason it is necessary to have further prospecting carried out over the gypsum deposit at Glangevlin, County Cavan, in view of the technical report published in 1992 which estimated the total deposit and the tonnage mineable.
[2031/96]
Brendan Smith
Ceist:
101
Mr. B. Smith
asked the
Minister for Transport, Energy and Communications
the conditions attached to the recent award of a prospecting licence in respect of gypsum deposits at Glangevlin, County Cavan; and if he will make a statement on the matter.
[1638/96]
I propose to take Questions Nos. 30, 39 and 101 together.
The process of identifying and assessing a mineral deposit is a complex one involving a number of stages. After the initial discovery it is necessary to carry out a great deal of further work to establish that it is commerically and technically feasible to mine and process it in ways consistent with environmental protection and planning requirements, and to develop detailed plans to do this.
The 1992 technical report referred to by the Deputy was only a step along the way. It did include an estimate of the resources in the deposit and merely showed that it was likely to be physically possible to extract a substantial tonnage of gypsum. It also showed that the Glangevlin deposit was sufficiently economically attractive to warrant further more detailed exploration work.
This is a long way from concluding that it was in fact a viable project. The further work to confirm this needs a prospecting licence.
The purpose of the prospecting licence is to give the holder the rights which he needs to allow him and my Department assess the deposit in detail. This would involve testing it for both quality and quantity. If these proved to be satisfactory there would then need to be tests to identify whether there were any hazards or difficulties peculiar to the deposit which would have implications for the development of a mine.
In accordance with normal procedures the two applications received for a prospecting licence covering the gypsum deposit known to exist at Glangevlin were considered initially on the basis of the technical proposals put forward by the applicants. One of the technical proposals was clearly superior to the other and as the applicant was suitable as regards technical competence, financial ability to carry out the work programme and character there was no reason to refuse to grant the licence.
In the normal course a prospecting licence is issued for an initial six year term as there is usually less certainty of the existence of a deposit than exists in this case. Because a good deal is already known about the Glangevlin deposit, the licence is being issued for only two years in this case and the work programme must be rigorously adhered to by the licence holder. At the end of the two year period the licence holder will, on the basis of the approved work programme, have determined the feasibility or otherwise of developing the deposit for mineral extraction and the most appropriate way that it can be developed if it seems to be feasible.
A renewal of the licence will be granted for a further two years on the basis that the licence holder will proceed with a full feasibility study and environmental impact study during that time should the results of the exploration warrant it. At the end of the second period the licence holder should be in a position to decide whether or not to make application for a State mining facility, planning permission, an integrated pollution control licence and other required permits.
I would stress that, if the exploration shows that the gypsum deposit at Glangevlin is of a quality and quantity which would make commercial mining possible, my intention is that it should be moved to a development stage as soon as possible.
The results of the exploration will be available to the technical experts in my Department and they have the necessary expertise to evaluate these results independently of the licence holder and form an expert opinion on the feasibility of its commercial development.
Crude gypsum is a low value product with only a limited market and further processing will be an essential part of any development here. The Deputy will, of course, be aware that the development of the deposit, if it proves to be commercial, will be by private capital and capital will always seek the maximum reward. While I would be anxious that local employment should be maximised, this will be a matter for the ultimate developer and I will have no control over whether he wishes to process it on site, within the State or elsewhere.
The market for gypsum products is seeing increasing imports and considerable price competition resulting in falls of over 30 per cent in the price for some major product lines since 1990. In such circumstances the developer will be very anxious to ensure that the substantial development costs incurred in exploring the deposit and developing it as a working mine will not be lost. The developer will, therefore, process the gypsum at whatever location will give the greatest guarantee of a return on investment. However, transport costs are a significant element in the cost of bulk products such as gypsum rock and this provides an incentive for processing as close as possible to any mine site.
Should the licence holder feel, at any stage during the validity of the prospecting licence, that the indications are so unfavourable as to show that the development of a mine would not be commercially viable, the licence may be surrendered without any additional expense being incurred.
In any case my officials will closely monitor work on this licence. In the event that the prospecting licence holder fails to comply with the agreed terms attaching to the licence I will revoke the licence. I would stress, however, that I have every expectation that the prospecting licence holder will comply fully with the conditions attaching to it.
In the event of the licence being surrendered or revoked, I will then decide, having regard to the technical reports and other relevant information which will be available to my Department, whether to offer the licence to another suitable party or parties, or to remove it from offer.
The Deputy will be aware from what I have siad that, in the first instance, there can, at this stage, be no guarantee of the development of a mine at Glangevlin. If, however, the deposit is proved to be of commercial quality it will be at least four years before the prospecting licence holder can be expected to commence development. Development will not be able to commence without the required planning permission and other permits being granted for the project.
