The timing of purchase in July 1987 could not have been better. Metal prices began to move up, immediately after they bought the mine for $10 million. Zinc prices more than doubled over the next two years, and lead and copper also moved up. The price recovery enabled Denehurst to develop the underground ore, and transformed the mine from a low-profit operation to one which was able to report a profit of $12.4 million in the first half of its 1988-89 year.
The mine is now a fully developed underground operation treating 550,00 tonnes of ore per year. Reserves are about 3 million tonnes, and drilling indicates still further ore at depth. Testing of their technology is proceeding at a $1.1-million pilot plant, but the company’s emphasis has shifted to mining. Uranium Floor Price Dropped
The Australian government announced early in September that it had approved uranium export contracts at a price of $26(US) per lb of contained U3O8. This is a sharp decrease from the previous minimum export price of $31. However, the energy minister, in making the announcement, said that the new price is in line with international markets, and that the reduction was necessary to allow Australian exports to retain their markets.
The Australian government, through its export licensing powers, maintains minimum export prices for several mineral products, including uranium. Noranda Takes Equity in Sydney Refinery
Noranda Minerals has taken a 40% equity in a new precious metals refinery being built in Alexandria, an industrial suburb of Sydney. Its partners will be MIM Holdings, also with 40%, and Tolltreck Systems, with the remaining 20%.
The plant will have the technology and equipment to treat a wide variety of feed materials. These will range from mine products and treatment residues containing gold and silver through low grade electronic scrap, higher grade semi-processed scrap, to high grade gold and silver products. Capacity will be about seven tonnes per years of 99.99% pure gold bullion, and 70 tonnes of similarly pure silver per year. The plant will employ up to 50 people.
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