The Queensland Resources Council welcomes the MMG Limited announcement of the approval of its Dugald River project, which will make it one of the top 10 zinc mines in the world.
The $US750 million mine is set to deliver an annual production of approximately 160,000 tonnes of (contained) zinc in concentrate, and almost a million ounces of silver a year over the estimated 28-year mine life. Construction of should commence in 2016 with first production of the high-grade zinc expected in 2018.
QRC’s Deputy Chief Executive Greg Lane said the announcement was good news during tough times.
‘With global supply tightening, this announcement is good news for Queensland and even better news for Cloncurry and Townsville, which are set to benefit from jobs, both in and supporting the mine,' Mr Lane said.
‘The revenue from royalties and exports is also set to benefit the state.
‘I applaud MMG for pushing on and making tough decisions during the low commodity price cycle.’
This announcement is also a huge vote of confidence in the North West, to which the resources sector contributed $2.2 billion during 2013-14.
‘Australia leads the world in economic zinc resources and one of Queensland's resource strengths is the diversity of commodities we produce,’ Mr Lane said.
‘And with MMG’s Century Mine winding down, this partial replacement production of zinc is good news for all Queenslanders.’
Zinc’s primary use is to provide a protective coating for iron and steel to minimise weathering, which is invaluable to construction and manufacturing.
Dugald River is located approximately 65 kilometres north-west of Cloncurry, in North-West Queensland.