CENTURY Zinc is investigating ways to keep its operations in the Gulf of Carpentaria operating beyond 2015.

Parent company MMG plans to close Australia’s largest open pit zinc mine at Lawn Hill in three years’ time.

The mine produces about 500,000 tonnes of zinc in concentrate a year.

The product is shipped out through the concentrate de-watering and ship-loading facilities at Karumba.

The operations employ 741 staff and 268 contractors, many of whom will transfer to MMG’s proposed new mine at Dugald River, 85km northeast of Mt Isa.

New general manager Mark Adams, who joined MMG in November, said Dugald River was part of the company’s strategy to maintain its presence in northwest Queensland and replace Century Zinc
production.

"This year we’ll continue to explore all options to extend Century mine life beyond 2015," he said. "However, it’s important to remember that all mines are finite resources.

"That’s why MMG is also progressing a number of growth projects internationally to replace Century in zinc equivalent production, with Dugald River being an important part of this strategy."

A MMG spokeswoman said Dugald River was 300km from Century and it was probably not feasible for concentrates to be transferred to Century’s Lawn Hill processing facilities and on to the Karumba port.

"Instead, it is expected that concentrates from the Dugald River project will be transported to a loadout facility in Cloncurry and then moved by rail to Townsville for shipping," she said.

“While Century’s current mine life is to 2015, MMG is continuing to exhaustively explore options to extend operations beyond this.”
The spokeswoman said the company was committed to working with a range of stakeholders to consider alternative uses for the extensive infrastructure, including the Karumba port facility.
Mr Adams said MMG would maintain a significant presence in the Gulf for many years during the Century closure and rehabilitation
process.
He said a focus now would be meeting Century’s 1000-strong workforce, the Dugald River project team and other stakeholders.
“Production began at Century more than 12 years ago and I believe it is important that I understand the history and impact of the operation in the region,” he said.
“It’s not every day you get asked to lead one of the industry’s best operations, especially one with as strong a community focus as Century.
“Just one example is the rate of indigenous employment at the mine,  with about 25 per cent of the mine’s workforce identifying as being from local indigenous communities. That’s about five times the industry average for local indigenous participation.”
Mr Adam said Dugald River was one of the world’s largest undeveloped zinc deposits and the board had committed a further $157 million for the next stage of works at the site.
“The board will consider final approval for development and commissioning of Dugald River once this phase of works is complete,” he said.
“This means that Dugald River could be in production in early 2014 subject to this and other approvals.”
The next phase of works at Dugald River includes detailed engineering, metallurgical test work, long-lead time major equipment procurement, continuation of site works and underground development.
The new $700 million mine with up to 500 jobs is expected to start in 2014.
It will provide work for staff from Century Zinc’s mine after it
closes. Workers will also be sourced from Cairns, Townsville and
Brisbane.
MMG was one of the first mines to establish a large capacity fly-in, fly-out base in Cairns, running a 100-seat jet twice on a Tuesday and once on a Wednesday to Karumba.

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