Toronto and Madrid, 13 July 2011
Xstrata Zinc Canada has agreed to purchase the remaining 23.6% interest in the Pallas Green property in Ireland belonging to its current joint venture partner in the project, Minco plc, for $19.4 million.
Under the agreement, which is subject to Minco shareholder approval, Xstrata Zinc will become the sole owner of the project at Cahernconlish, Limerick County in the Republic of Ireland.
Exploration efforts have identified significant zinc mineralisation at the Pallas Green property, which is at pre-feasibility study stage. As of December 31, 2010 the JORC compliant inferred resource estimate is 25.9 million tonnes with 7.51% zinc and 1.38% lead at a 4% cut off (8.89% Zn eq).
Xstrata Zinc Chief Executive Officer Santiago Zaldumbide said: “This acquisition is consistent with Xstrata Zinc’s stated growth strategy and demonstrates our commitment to the Pallas Green project and our belief in its longer-term potential as a zinc operation. If developed, Pallas Green would be well positioned to supply our European smelters based in Spain and Germany. We look forward to working with the Irish authorities and stakeholders to develop these properties.”
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Xstrata Zinc Canada
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ABOUT XSTRATA ZINC
Headquartered in Madrid, Spain, Xstrata Zinc is one of the world’s largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata’s zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom.
Xstrata Zinc’s operations in Spain comprise the San Juan de Nieva zinc smelter and the Arnao zinc semis plant in Asturias, and the Hinojedo roasting plant in Cantabria.
In Australia, operations comprise: the Mount Isa, George Fisher underground, Handlebar Hill open cut and Black Star open cut zinc-lead mines, zinc-lead concentrator, lead smelter and Bowen Coke Works in north Queensland; and the McArthur River open pit zinc-lead mine, processing and loading facility in the Northern Territory.
In Canada, operations and exploration projects include the Brunswick zinc-lead mine, and the Brunswick Lead smelter and recycling facilities in New Brunswick; the Perseverance zinc mine and the Bracemac McLeod mine development in Quebec and the General Smelting facilities and 25% of the CEZ zinc smelter near Montreal.
Xstrata Zinc also operates the Nordenham zinc smelter in northern Germany; the Northfleet lead refinery in the United Kingdom; and owns 33.75% of the Antamina mine in Peru.
Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.