By Robb M. Stewart
MELBOURNE--Xstrata PLC (XTA.LN) said Friday it aims to lift
production of zinc, lead and silver at its Lady Loretta mine in
northeastern Australia by a third to 1.6 million metric tons a
year, which will take the investment in the newly opened mine to
362.2 million Australian dollars (US$379.3 million).
The underground operation in Queensland state began mining in
September and is set to begin commercial production in mid-2013,
then ramp up to the new target by 2016. Lady Loretta had originally
been designed to produce 1 million tons annually, but Xstrata said
its zinc project teams had continued to assess opportunities to
raise output.
"The expansion project will allow the earlier recovery of
resources from several of Lady Loretta's upper ore bodies and will
increase the number of stoping levels available in the underground
mine in future years," said Brian Hearne, chief operating officer
of Xstrata Zinc Australia.
Mr. Hearne said the A$59.2 million expansion would include
investment in larger ore handling facilities, increased plant
equipment and more village accommodation.
Write to Robb M. Stewart at robb.stewart@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires