Global resources giant MMG has endorsed the development of a mine at one of the world’s largest zinc deposits in Queensland’s northwest.The $1.4 billion Dugald River zinc mine project, located northwest of Cloncurry, will add an additional 200,000 tonnes of zinc a year to MMG’s production profile, whose operations at the company’s Century mine northwest of Mount Isa are due to end in 2016. Century mine currently produces approximately 500,000 tonnes of zinc annually.“This will be a significant investment for MMG and one which demonstrates our confidence in the long-term outlook for zinc,” said MMG chief executive officer Andrew Michelmore.MMG has identified zinc as a core commodity for the company’s future sustainability and growth. In the short term, a number of zinc mines are expected to exhaust their current Ore Reserves with mine closures peaking in the three years following 2015.“It is anticipated zinc production from Dugald River will contribute to meeting the expected increase in demand resulting from the continuing industrialisation of the developing world, in a commodity where mine closures and contractions are expected in the short term,” Michelmore said.
The project will see the development of an underground mine accessed by north and south declines. Run-of-mine (ROM) material will be hauled to the surface before treatment by an on-site concentrator.
Zinc and lead concentrate will be produced and transported by road to Cloncurry. A rail load-out facility at Cloncurry will be constructed, allowing concentrate to be transported via rail to Townsville, where it will be shipped or sold to local smelters.Approximately 600 jobs will be creating during the construction phase and 500 employees and contractors will be required once the mine is in operation.The mine is expected to have a positive impact on the local Queensland and Australian economy, including payments of more than $200 million in operating expenditure annually and annual royalties to the state of Queensland of approximately $15 million, subject to metal prices and production at the time.
The Dugald River project has an Agreement with the Kalkadoon People, traditional owners of the land on which the mine is being developed, ensuring training and employment, business development opportunities and cultural recognition will be provided for the life of the mine. MMG also has a close relationship with the Mitakoodi People whose history is linked to the Cloncurry township and areas to the south and east of the Dugald River project.The project will be commissioned in 2015 with the first ore feed expected in the third quarter. Based on current estimates, the first concentrate shipment is expected to take place in the fourth quarter of 2015.
Source:Design Build
