Mining giant Xstrata has released a draft Environmental Impact Statement (EIS) for its planned $270 million expansion of its McArthur River Mining (NRM) operations, with the company saying the project will ‘deliver more benefits for the Northern Territory than first thought’.

 

The NRM expansion project will see the mine’s workforce expand by 67 per cent, creating 295 new jobs when in operation and bringing the total workforce to 735 at its peak by 2020, compared to initial estimates of 550 jobs. 

 

The EIS proposes increasing capacity at the mine from 2.5 million tonnes of ore per annum to 5.5 million tonnes, producing approximately 800,000 dry metric tonnes per annum of zinc-lead concentrate for export markets.

 

Xstrata Zinc Australia Chief Operating Officer Mr Brian Hearne said: “Our earlier estimates have now gone through the robust process of an EIS and we’re looking at being able to offer more jobs, a longer mine life and greater financial investment into the community in which we operate and the Northern Territory and Australian economies.”

 

The project proposes:

  • increasing MRM’s mineable reserves from an identified 53 million tonnes to 115 million tonnes
  • extending the life of mine by nine years from 2027 to 2036
  • expanding the current pit within the existing bund from a footprint of 145 hectares to 210 hectares and the depth from 210 metres to 420 metres
  • increasing our operational workforce by 67% at its peak from 440 currently to 735 by 2020 and sustaining a high level of Indigenous workforce participation
  • extending the life of our MRM Community Benefits Trust to 2036, which will allow an additional AUD11.3 million to be invested in the community and bring total investment by the Trust to AUD43.3 million since 2007
  • increasing the capacity of the existing tailings storage facility, including an already planned, new, lined water management dam
  • generating approximately 530 million tonnes of additional overburden to be accommodated in one existing and two new overburden emplacement facilities 
  • expanding the power station at the mine to a capacity of 45-50 MW
  • building a temporary construction camp and expanding existing accommodation facilities.

 

Over its lifetime the project is expected to produce approximately 20 million tonnes of zinc-lead concentrate for export.

 

Mr Hearne said: “The expansion will enable MRM to meet demand for zinc in concentrates more competitively. 

 

“Aside from the direct employment benefits, we will require a wide range of products and services from other business sectors, predominantly in the Northern Territory, to support and service an expanded operation.”

 

Xstrata’s estimate’s the MRM will boost industry output by an estimated $8.4 billion within the NT and an expected $9.3 billion nationally during the construction, operational and decommissioning periods.

 

A full copy of the draft EIS can be found here