McArthur River Zinc and Lead Mine's Phase III Expansion Nears Completion

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Researched by Industrial Info Resources Australia (Perth, Australia)--The McArthur River zinc and lead mine's Phase III expansion is entering its final stage, after the mechanical works were completed in September 2013. Construction on the $300 million expansion has been ongoing since December 2012, with completion expected in early 2014. The McArthur River mine is one of Xstrata's (ASX:XTA) key zinc and lead assets, along with the George Fisher Mine in Mount Isa, Queensland.

The McArthur River Mine is 70 kilometres southwest of Borroloola in the Northern Territory and has been operational since 1995, with an estimated annual processing capacity of 2.5 million metric tons per year. The Phase III expansion is expected to increase the processing capacity to 5.5 million metric tons per year, producing approximately 380,000 tons per year of zinc and 93,000 tons per year of lead concentrate.

The project also involves the addition of a 53-megawatt (MW) gas power station, which will be constructed on a build, operate, own and maintain (BOOM) basis. The construction of the power station is expected to be completed by November 2013.

Due to the expansion, Xstrata had to expand the existing mining accommodation camp facility by another 364 "man camps" for the work force. The expansion on the accommodation village was completed in August 2013.

Engineering and project management firm Milestone Engineers (Perth) was appointed the engineering, procurement and construction (EPC) contractor for the expansion. The project also saw the involvement of other Western Australian contracting companies, such as Karridale Group and the Minserve Group. Engineering and technology firm Mipac Engineering was awarded a contract to install new control systems for the plant areas, such as dewatering, grinding, crushing and power stations. The Phase III expansion at McArthur River includes some of the surplus equipment from Xstrata's George Fisher mine in Mount Isa.

John Noordhoek, a project manager from Milestone Engineering, confirmed that the new equipment is scheduled to undergo final commissioning by November 2013, with minimum interference to the existing plant, and final completion by February 2014.

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