Xstrata Zinc has announced moves to accelerate the production of its Lady Lorrtta underground mine and further extend the life of the Handlebar Hill open cut operation in Queensland, which is expected to result in a net increase in annual zinc production of 5 per cent, or 25,000 tonnes.

 

The announcement comes after construction of the Lady Loretta project has progressed rapidly, with decline development, surface infrastructure and services being delivered well ahead of schedule.

 

Xstrata has delivered a further $57 million in funding for the accelerated development of the mine, increasing the annual ore production rate from 1.0Mt to 1.2Mt and bringing forward the start of production by one year to late 2012.   Work has commenced immediately to secure key equipment and redesign the development infrastructure, mining plan and associated road upgrades to accommodate the increased annual ore volume.

 

Xstrata Zinc Australia Chief Operating Officer Brian Hearne said expansions of both mines through a total additional investment of $87 million would realise significant value from our Australian zinc business, including an estimated 30 new direct jobs.

 

“We are accelerating the delivery of ore from Lady Loretta to Mount Isa by developing the upper ore bodies independently to the deeper underground resources,” Mr Hearne said.

 

“At the same time, we are investing in a further expansion of the Handlebar Hill operation following improvements in mining methods and metallurgical performance since the mine was designed in 2007.”