Teck and Xstrata close Lennard Shelf mine

Teck Cominco (TCK. B-T, TCK-N) and Xstrata (XSRAF-O, XTA-L) are closing the Lennard Shelf Pillara zinc-lead mine in Western Australia, because it is no longer economic.

The mine, owned by the two companies on a 50-50 basis, employs 300 people and was to be shut down in early August. The decision was based on a sharp drop in zinc and lead prices, the strengthening of the Australian dollar, high energy and labour costs, and production volumes that were lower than planned.

The past-producing mine reopened in early 2007 with an anticipated life of three to four years. Last year, the mine produced 42,100 tonnes zinc and 12,400 tonnes lead.