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Dáil Éireann díospóireacht -
Wednesday, 9 Oct 2002

Vol. 554 No. 5

Written Answers. - Tara Mines.

Pat Rabbitte

Ceist:

119 Mr. Rabbitte asked the Minister for Communications, Marine and Natural Resources the information available to his Department on plans for the future of Tara Mines; and if he will make a statement on the matter. [17062/02]

Tara Mines Ltd. has been mining zinc and lead at its Navan mine since 1977, under a State mining lease granted in 1975. Tara is Europe's largest zinc mine and has produced almost 55 million tonnes of ore to date. Current reserves and resources are estimated at about 45 million tonnes, not including over eight million tonnes in the Nevinstown part of the Navan ore body, acquired recently by Tara from the receiver of Bula Ltd.

In recent years, however, the zinc market has been experiencing serious difficulties resulting in a decline in prices to levels not seen for 30 years. In the face of this and the high costs of the operation Tara's parent company, Outokumpu OYJ of Finland, decided, in November 2001, to temporarily close the mine and put it on a care and maintenance footing. The mine fully reopened on 16 September 2002 with a workforce of more than 650. Up to 28 employees are being recruited to replace retired workers and some who did not return following the temporary closure. A training programme for these is now under way. A total of 60,000 tonnes of zinc in concentrates is expected to be produced in 2002 rising to over 200,000 tonnes in 2003.

Any recovery in the zinc sector will be subject to international forces but Tara has used its period of temporary closure to implement measures designed to reduce costs and increase productivity which will improve competitiveness. The cost of the improvement programme is estimated at between €15 and €20 million.

Prices are still low but, on the positive side, developments in the concentrates market have resulted in an improvement in smelter terms in favour of mines. Tara wishes to be in a position to fully benefit when there is an upturn in prices and is working actively to incorporate the former Bula ore and the major south west extension known as SWEX into production, for which it will seek planning permission as soon as possible. Production at the mine is expected to increase from a total of two million tonnes of ore in 2001 to 2.6 million tonnes in 2003, with a further increase to 2.8 million tonnes in 2004. Major capital investments and operational improvements are being made by the company and I am confident that these will form a solid foundation for Tara's future as a viable long-term zinc mine with an expected lifespan well into the next decade.
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