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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Mineral Studies.

Domestic Ore Processing and Smelter Feasibility

Summary

The Minister said the IDA investigated an Irish zinc smelter in 1976–77 and recently updated its study; commercial prospects remain poor, especially without a project promoter. He clarified that exports are concentrates rather than raw ore, giving 1982 figures for lead, zinc and copper concentrates.

asked the Minister for Energy if, in view of the huge amounts of raw ore exported from this country, any studies have been undertaken on the cost of processing lead, zinc and copper ore in this country; by whom such studies were carried out; the results; and if he will make a statement on the matter.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

A detailed investigation of the prospects for establishment of an Irish zinc smelter was carried out by the Industrial Development Authority in 1976 and 1977. An American company indicated positive interest in the project but due to a serious downturn in the international zinc market they did not maintain their interest and withdrew from the project.

There has been some recovery in the zinc metal industry during recent months and the IDA recently up-dated their earlier studies. However the IDA have concluded that the commercial prospects of a smelter are now no better than previously indicated. Continuing over-capacity in the industry, high energy costs and inadequate metal prices continue to be serious adverse factors militating against successful establishment and operation of a zinc smelter in Ireland.

A decision on the question of establishment of lead smelting capacity cannot be taken until firm decisions in favour of a zinc smelter and on the smelting process to be used, are taken. If a process involving joint production of zinc and lead was decided on, there would be no necessity for a separate lead smelting facility. The question of establishment of lead and zinc smelting facilities in Ireland will continue to be kept under review.

Since the closure of the Avoca copper mine in August 1982 there has been no production of copper concentrates in Ireland.

Comment on this

Am I to take it that no study has been made since 1976 of the feasibility of a lead and zinc smelter, that all that is happening is that the IDA are looking at the 1976 investigation?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The IDA have referred to earlier studies and I am sure they are competent in this field. From the point of view of confidentiality, I do not propose to name the company involved earlier.

Comment on this

Will the Minister tell us what "updates" means. Can he tell us what is the difference in zinc prices now compared with 1976? Is it not true that there has been a very rapid increase in zinc prices?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

It is because of the increase in prices that the IDA have become interested again, but in the absence of a promoter the likelihood of a smelter being established is very remote.

Comment on this

Has a study been made in conjuction with the report of the planning board? In 1982, exports of raw ore amounted to 343,000 tonnes. Has this been taken into consideration in the job creation programme as well as the 1976 study?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

The Deputy is misinformed. No lead, zinc or copper ore are exported but rather concentrates. It is not raw ore. It is a stage in between raw ore and smelted ore. In 1982 the export of lead concentrates was 49,383 million tonnes. Zinc concentrates——

Comment on this

Should it not be thousand tonnes?

Comment on this
Edward Collins Mr. E. Collins Fine Gael

Thousand, yes.

Comment on this

The "m" means metric not million.

Comment on this
Edward Collins Mr. E. Collins Fine Gael

Possibly. Zinc concentrates were 343,770 metric tonnes and copper concentrates 7,430 metric tonnes. There are no figures available for 1983.

Comment on this