Xstrata restructures Mt Isa zinc/lead operations to secure...

Xstrata restructures Mt Isa zinc/lead operations to secure long-term future

http://www.miningweekly.com/article.php?a_id=150549

By: Esmarie Swanepoel

Published on 13th January 2009

JOHANNESBURG (miningweekly.com) – Global diversified mining group Xstrata would put Handlebar Hill zinc operation on care-and-maintenance, and would suspend the planned upgrade of the Pac Rim crushing system, it said on Tuesday.

The Handlebar Hill mine would be closed on February 12.

These operational changes formed part of the company’s plans to restructure its Mount Isa zinc/lead operations in Australia, following a strategic review.

Xstrata stated that the restructuring would optimise efficiency and productivity, and would secure the long-term future of its Mt Isa zinc operations.

Production from Handlebar Hill would be replaced by increased production from the company’s higher-grade George Fisher underground mine, and the large-scale Black Star open cut mine, in Mt Isa. The yearly production at these two operations would increase by about 13% and 38%, respectively in 2009.

“The initiative being implemented at Mt Isa will deliver increased volumes of higher grade material from George Fisher, together with higher volumes of feed from the Black Star mine, to significantly improve recoveries and operating efficiencies,” said Xstrata Zinc Mt Isa executive GM Kevin Hendry.

“These operational changes are being made to reposition Xstrata Zinc’s Mt Isa operations and secure their long-term future in the face of very challenging market conditions.”

The company stated that about 89 contractors and 60 permanent staff would be affected by the restructuring. “We are working closely with all those impacted by this decision to ensure they are appropriately supported. Xstrata Zinc is assisting affected employees to find alternative positions, and we have identified a number of opportunities that will be available at Xstrata Zinc or Xstrata Copper Mt Isa operations.”

Hendry added that operations at Handlebar Hill were expected to restart when market conditions improved.