Xstrata plans further expansion of Mt Isa zinc output
Xstrata will spend another $274m to lift output at its George Fisher zinc mine in Mt Isa by nearly 30% by 2013 after approving $122m for the nearby Black Star Deeps open-cut project.
Brian Hearne was encouraged by huge reserves.
The mining giant said it had Queensland Government approval to increase the annual production rate from the underground mine from 3.5mpa to 4.5mtpa.
"George Fisher Mine contains one of the largest zinc reserves in the world and the expansion project enables us to further tap its significant resource potential," Xstrata Zinc Australia chief operating officer Brian Hearne said.
Both projects would ensure the full utilisation of the zinc-lead concentrator capacity in Mount Isa which was raised to 8mtpa in 2009.
The George Fisher Mine expansion will create jobs for an additional 250 contractors in construction and 120 employees in its operation.
The project involves the development of a second hoisting shaft and associated infrastructure to service the northern area of the mine using large diameter raise boring technology. An underground crushing and ore handling facility will be installed and power and air ventilation services upgraded.
Mr Hearne said the expansion project had been encouraged by a 126% increase in zinc reserves from 33mt when Xstrata acquired the operation in 2003 to 76mt this year.
A 14-month, $6.5n feasibility study found the project would cause minimal changes to the mines present environmental conditions.
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