MIM, Japanese partners approve McArthur River

Development of the zinc-lead-silver McArthur River joint venture in Australia’s Northern Territory has been given the green light.

Construction of the underground mine, to be started in early 1993, will cost an estimated A$250 million and take 18-24 months to complete. The milling facility is expected to treat 1.5 million tonnes of material per year, producing a concentrate with 160,000 tonnes zinc, 45,000 tonnes lead and 49,764,800 million grams (1.6 million oz.) silver.

Metallurgical problems have hampered development of the project, which was found in 1955. A deposit on the property hosting 47 million tonnes averaging 15.7% zinc, 6.5% lead and 66 grams silver per tonne will provide 30 years of mine life at the scheduled production rate.

MIM Holdings has a 72% interest in the project. MIM’s Japanese partners are Nippon Mining with 15%, Mitsui with 5%, Mitsubishi with 5% and Marubeni with 3%.