RENISON GOLDFIELDS EXTENDS LYELL COPPER MINE LIFE
The Renison Goldfields Consolidated Ltd
<RGFJ.S> (RGC) Mt Lyell copper mine in Tasmania will stay open
for an extra five years following a new aid package from the
state government, RGC said in a statement.
    The mine had been scheduled to close in 1989 after the 40
series stopes were mined, but will now stay open until the
deeper 50 and 60 series have played out, probably in 1994.
    The Australian dollar's fall since 1985 also improved the
local dollar copper price, making the company profitable and
justifying the mining of deeper reserves at a copper grade of
about 1.95 pct against about 1.60 pct now, the firm said.
    Ore output will be cut, but the higher grades will keep
contained-copper output at current levels of about 24,000
tonnes a year, it said. Capital expenditure of about 18 mln
dlrs will be required over the life of the new plan, RGC said.
    The latest aid package is the third since 1977 for RGC, a
major employer in Queenstown on the thinly populated west coast
of Tasmania.
    The mine was kept open in 1985 after Tasmania gave RGC 10
mln dlrs in aid. The new package includes an eight mln dlr
advance to RGC at the long-term bond rate, power concessions
and deferred royalties and payroll taxes.
 REUTER
