This Bill is designed to procure that the smelting of ore concentrates will be carried on only under licence. This control will apply to the smelting of all metals although, as will be apparent as I go on, the immediate intention is to control the smelting of lead and zinc.
Mining of ores in this country is already on a substantial scale but the processes carried out at our mines are confined to the reduction of the ores into ore concentrates, all of which are at present exported. Obviously, it is desirable to encourage by all possible means any proposals which would lead to an increase in the extent of income and employment which this country can derive from its natural resources. The establishment here of a smelter to extract the metals themselves from the concentrates would be a major asset to our economy. Smelting is, however, an enterprise which involves a very high capital investment and the economics of a smelting project, therefore, require very careful study. The probable life of a mine or mines to feed the smelter and the feasibility of profitable disposal of the by-products of smelting are among the matters which must be investigated.
A group of companies, at present involved in the mining of lead and zinc in this country, proposes to study, with the aid of consultants, the prospects for the establishment of a viable smelter here. This study alone will involve the group in considerable outlay. The purpose of the study is, first, to decide whether the establishment of a smelter in this country would be an economic proposition at all and, if so, then to ascertain whether the necessary financial backing can be procured. It is hardly likely that this country could support more than one smelter, if, indeed, one proves to be feasible.
The Bill proposes to make it mandatory to obtain a licence from the Minister for Industry and Commerce to undertake the smelting of metals from ores. It is my intention, if this legislation is enacted, to give a conditional licence to the group that I have mentioned. This will enable the group to carry out the vital preliminary study. If the study should indicate that the erection and operation of a smelter here is technically and economically sound and if, for any reason, the group concerned are not prepared to undertake such a project, I will have power to consider alternative propositions.
During the final discussion of this Bill in Dáil Éireann, some anxiety was expressed as to the possibility that a mining company not connected with the group might be prevented from establishing a smelter in Ireland to process ore concentrates produced in its own mines. I said that it was not my intention that a licence would be refused in such a case and I promised to make a statement in the Seanad as to the exact nature of the undertaking I have given to the group to whom I propose to give a licence.
I indicated that it might not be feasible to lay before the House copies of the actual correspondence in this regard, since this might involve the disclosure of information of a confidential nature about the business of the group and, in fact, this has proved to be the case. My commitment took the form of an acceptance of proposals contained in a letter from the group of companies. I indicated to them in writing that provided the necessary study and, in due course, the construction of a smelter was undertaken by the company to be formed by the group, it was my intention, upon the enactment of this legislation, to give this company a licence and to arrange that for a period of 10 years from the commencement of operation of their smelter no other licences for the smelting of lead and zinc would be issued. It was clearly set out in the correspondence, however, that this restriction on the issue of additional licences would not apply to any company which would propose to construct and operate a smelter solely and exclusively for the purpose of smelting zinc and/or lead concentrates produced from a mine in Ireland owned by such company or any subsidary thereof.
I assure the Seanad that this exclusion from the restrictions on the granting of licences has not subsequently been altered or qualified in any way.
The particular advantage or incentive which the legislation would accord to the promoting group is that they will be entitled by licence to have the first opportunity to explore the feasibility of having a smelter here, from both the technical and commercial aspects. Not only can this be regarded as a recognition of the group's enterprise in being the first to declare preparedness to undertake such a project but I am satisfied that, from the commercial aspect, the financial backing for a smelter of the type envisaged will not be forthcoming unless the group can show that they, and they only, will be licensed to operate a smelter in this country which can process ores and concentrates from all sources.
There is nothing in the Bill to prevent mine operators in Ireland, other than those responsible for establishing a smelter here, from continuing any existing arrangements for sending their concentrates elsewhere to be smelted. I would hope, however, that if the smelter is constructed the smelting company will be able to offer sufficiently attractive terms to induce all operators of lead and zinc mines in Ireland to have their smelting done here. It would be the intention of the smelting company to provide facilities for smelting on an economic and competitive basis all technically suitable lead and zinc concentrates offered to them and produced from mines in Ireland.
I trust that I have made it clear that the sole purpose of this Bill is to facilitate the bringing into being in this country of a new and important industry which it might otherwise not be possible to procure. I, therefore, recommend the Bill to the Seanad.