Potosi mine gets go-ahead
Saturday, 12th February, 2011
The announcement comes two months after Perilya was granted development approval from City Council to reopen the mine, which is expected to employ about 100 people.
Council knocked back the company's original proposal to truck ore through the city after residents criticised the plan, but later rescinded the decision on legal advice.
However the council and the mining company struck a deal to part-fund construction of a by-pass road around the city.
Mayor Wincen Cuy said the road would be built before Perilya was ready to start production at Potosi.
In a statement to the Australian Stock Exchange yesterday, Perilya said it expects to commence production in late 2012, following an 18 month development period.
Development at Potosi first began in March 2007 but was suspended in September 2008 due to plunging commodity prices which also saw the company sack 440 workers from the local mine.
Development will restart in the first half of 2011 and will initially target mining about 1.6 million tonnes of ore at an average grade of 8.3 per cent zinc, 3.1 per cent lead and 38 grams per tonne silver.
The company decided to restart development after positive results from studies in 2009 and 2010 that focused on a viable operation using ore as additional feed to the concentrator at Southern Operations, chief executive Paul Arndt said.
Shares in Perilya closed half a cent higher at 63 cents. BDT/AAP