Name and Location
McArthur River mine (MRM) Phase 3 development project, Northern Territory, Australia.

Client
Xstrata Zinc.

Project Description
The project will more than double capacity at Xstrata’s MRM from 2.5-million tons of ore a year to 5.5-million tons a year from 2014, extending the mine life to 2038.

The MRM Phase 3 development project will increase zinc production to 360 000 t/y and lead production to 800 000 t/y.

Advanced processing technology on site will, for the first time, enable MRM to produce separate zinc concentrate acceptable to all smelters from its bulk zinc-lead concentrate.

The project will reduce average unit costs by more than 20% and reserves will increase by about 70-million tonnes to 115-million tonnes, making MRM the largest zinc resource in the world.

The project proposes the expansion of the current pit within the existing bund from a footprint of 145 ha to 210 ha and the depth from 210 m to 420 m; an increase in the capacity of the existing tailings storage facility and lining the existing Cell 3 and proposed Cell 4 with a high-density polyethylene barrier to prevent potential seepage; the generation of about 530-million tonnes of additional waste rock, to be accommodated in one existing and two new overburden facilities; the construction of a temporary construction camp; and the upgrade of existing infrastructure facilities.

A 20-year supply agreement has been secured with Energy Developments to develop a new gas-fired power station at MRM, generating 40 MW/y to service the expanded operations from 2014.

Value
$369-million has been approved for the development, subject to final approval by the Australian government.

Duration
Following approvals, the Phase 3 development will be commissioned in 2012 and reach full production in 2014.

Latest Developments
The Northern Territory government approved the A$369-million expansion of the McArthur River zinc mine.

The Phase 3 development project will result in the employment of a further 300 people and will extend the life of the mine by nine years, to 2036, taking ore production from 2.5-million tonnes a year to 5.5-million tonnes a year of ore, and production from 360 000 t/y to 800 000 t/y of zinc.

“With the approval of Phase 3, McArthur River mine will become the largest zinc resource in the world,” Mines and Energy Minister Willem Westra van Holthe said.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Xstrata Zinc Australia GM corporate affairs, community relations and human resources, Joanne Pafumi, tel +61 7 3295 7586 or email jpafumi@xstratazinc.com.au.