Xstrata proposes A$270m McArthur River zinc expansion

PERTH (miningweekly.com – The zinc division of diversified miner Xstrata has submitted the draft environmental-impact statement (EIS for the proposed A$270-million expansion of its McArthur River operation, in the Northern Territory.

Xstrata Zinc Australia COO Brian Hearne said in a conference call that the expansion would increase McArthur River's capacity from 2.5-million tons to 5.5-million tons of ore a year, producing around 800 000 t/y of zinc/lead concentrate for the export market.

The project would involve expanding the current operation from a footprint of 145 ha to 210 ha, and the depth of the pit from 210 m to 420 m.

"The expansion has been designed to sustain the long-term future of the mine, at a higher rate of production," Hearne said.

The expansion would also increase the workforce at McArthur River by some 67%, bringing the total number of workers to 735 at its peak in 2020, compared with an initial estimate of 550 jobs.

"Our earlier estimates have now gone through the robust process of an EIS and we are looking at being able to offer more jobs, a longer mine life, and greater financial investment into the community in which we operate and the Northern Territory and Australian economies," Hearne said.

He noted that aside from the direct employment benefits, the operation would also require a wide range of products and services from other business sectors, predominantly in the Northern Territory, to support and service an expanded operation.

The project was expected to boost industry output by some A$8. 4-billion within the Northern Territory economy, and A$9.3-billion nationally during the construction, operation and decommissioning periods.

Meanwhile, the expansion project would also increase the McArthur River mineable reserve from an identified 53-million tons, to around 115-million tons, extending the expected mine life by nine years, from 2027 to 2036.

Hearne said that over its lifetime, the project was expected to produce some 20-million tons of zinc-lead concentrate.

"The expansion will enable McArthur River to meet demand for zinc in concentrates more competitively," he noted.

The proposed expansion of the McArthur River project was currently in the feasibility study stage and was subject to approval by the Xstrata board. Hearne noted that the expansion proposal would likely go before the board by mid-year, with investment approval expected by the end of the year.

 

 

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