Lifeline for Europe's Largest Lead and Zinc Mine

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Europe's largest lead and zinc mine, the Tara Mine in Navan, Ireland, has won an extension that will allow the mine to operate for a further 10 years.

The Irish Government has granted the extension to mine operator, Boliden Tara Mines Limited, a decision that will save more than 650 jobs. The mine, which has been in operation since 1977, has produced more than 80 million tons of ore in that time. In 2012, Ireland was Europe's largest producer of zinc metal in concentrate (32% of all European zinc mine output, inclusive of the Russian Federation) and the tenth largest producer in the world (2.5% of world output). The vast majority of that came from the Tara mine.

"Ireland needs strong, competitive industries that punch above their weight in the international arena," stated Minister of State for Natural Resources, Fergus O'Dowd TD. "The Irish Mining industry, as a significant global player in terms of zinc and lead output, is clearly one of those, and Boliden's contribution is central. It is hoped that Boliden Tara Mines will be able to take full advantage of the new ten year leases. Exploration is continuing around the mine to identify further mineral resources that we hope will become mineable ore reserves. Boliden and other companies are also carrying out exploration elsewhere across the country."

Stefan Romedahl, the recently appointed General Manager of Boliden Tara Mines Limited, added: "Boliden is pleased that negotiations around the extension lease have been concluded. A stable platform has been established and we need to continue to reduce costs in order to make Tara profitable".

In return for the extension, the State will receive royalties of up to 3.75% of revenue as well as Boliden paying corporation tax at 25% which is twice the rate applying to profits from general trading. Approximately 2.6 million tons of ore for zinc and lead concentrate production is mined and concentrated at Tara mine every year.

The future of the mine has been uncertain over the past year. In January, workers were put on protective notice that their jobs might be lost as Boliden sought to reduce costs. However, in March, a deal was agreed with staff to reduce overtime costs and alter early retirement contracts while Boliden agreed to a €110 million ($148 million) investment in the mine's future.

John Regan, Organiser with Irish union SIPTU, welcomed the extension news. "In a climate of uncertainty for workers this new agreement on the leasing of mining rights with Boliden, the company which owns Tara Mines, until 2023 gives those employed there a welcomed degree of certainty. It is also very good news for the estimated 3,000 people employed in jobs dependent on the operation of the miners and the wider community which stands to benefit from the mining of these natural resources through royalty and tax payments to the State."

The annual economic contribution of the mining and exploration industry in Ireland is approximately €809 million ($1.1 billion) and employs over 1,300 full-time employees directly and supports an additional 3,300 regional jobs.

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