Ivernia West expects the Lisheen Mine, which it owns jointly with Minorco, to start producing lead and zinc by September 1999. Ivernia said yesterday that it has now secured sales agreements for 70 per cent of the zinc and lead due to be produced at Lisheen between 1999 and 2003. Lisheen is expected to produce 1.5 million tonnes of ore when in full production.
The September production date is later than was originally expected, though it was delayed by a lengthy planning process. Managing director, Mr David Hough, said the placing of 70 per cent of the minerals was the amount stipulated by Ivernia's bankers and he said this figure was likely to increase in the coming months.
The company said the market for zinc and lead remains positive despite the Asian crisis and this should lead to a small rise in prices later this year, mainly due to demand from western economies.
Ivernia has also announced that funding for the development costs of Lisheen has been finalised. Ivernia and Minorco have each entered into separate loan facility agreements for $86.5 million and bonds of £5.8 million.
Over 500 people are currently employed on the construction of the mine at Lisheen and the company expects 300 people to be employed in operations over its 14-year life.
Mr Hough said its south and north Rathdowney licence areas, which are jointly owned with Minorco, are also "looking very promising". In the south Rathdowney zone the company is concentrating on a recently mineralised zone to the north-east of Lisheen, known as the Bogzone.
Bore holes drilled in this area show significant levels of zinc grading which may make mining a possibility after Lisheen is exhausted, said Mr Hough. He added that drilling had begun at the company's Clogher Valley site and had confirmed previously recorded levels of mineralisation. Mr Hough was speaking after announcing the company's results for the nine months ended 31 December 1997 which showed a net loss of £179,140, compared to £60,911 for the previous accounting period.
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