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Perilya extends life of mines again

Wednesday, 2nd January, 2013

 By Erica Visser

 Perilya has announced that its local mines have at least another 10 years of life left in them.

In 2002, when Perilya took over the mines from Pasminco, it was expected that they would last just seven years.

Perilya reported to the ASX on Friday that its Southern Operations would be viable for a decade from June last year.

The report said that the mine life reflected “sustained improvements in productivity in Broken Hill, including modernisation of the mining fleet, improved milling recoveries and process improvements.”

The Perth-based Manager/Director of the company, Paul Arndt, said that it was optimistic about the year ahead.

“Perilya is entering the new year with an extremely strong and growing annual production base and a suite of development options,” Mr Arndt said.

“Our task is to ensure this improvement is sustained and to sensibly progress the expansion opportunities that lie before us at Broken Hill.”

The Broken Hill operations General Manager, David Hume, who took over from Andrew Lord last month, said that the news was a good start to his time here.

“This announcement is extremely positive news for Perilya and Broken Hill as well, as it secures the future of the Perilya Broken Hill operations for another 10 years,” Mr Hume told the BDT.

“It’s very pleasing, as the new general manager, to be coming into a business that is growing and also underpinning a long-term presence as a major employer in the Broken Hill area.”

Mr Hume said that the coming years were set to be a time of growth for the company, particularly with the opening of its Potosi Mine.

Potosi, on the city’s north outskirts, is expected to open in March.

“We anticipate further success in growing the resource base for the business as evidence by redevelopment of Potosi and the current technical evaluation of the North Mine project,” Mr Hume said.

He said that the longer than expected mine life was a result of Perilya’s commitment to its local operations.

“I think it vindicates Perilya’s faith in the business and its decision to invest considerable capital in Broken Hill operations.”

The good news comes after Perilya received a backlash from some in the community over its decision to pursue City Council for a refund of almost $7 million in rates which the Land and Environment Court ruled that it should not have paid.

The company is also set to challenge previous State Government valuations of its local land in a bid to reclaim additional millions of dollars.

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