andProinsias De Rossa asked the Minister for Energy the reason, in reply to Parliamentary Question No. 17 of 8 May 1984 regarding estimated ore deposits in Bula Mines, he gave the figures of 20 million tonnes, which had been provided by Bula, rather than the figure of 7.8 million tonnes which had been estimated by the Geological Survey of Ireland.

4.

andProinsias De Rossa asked the Minister for Energy if he accepts the Geological Survey's estimate of ore deposits in Bula Mines, and whether Bula's estimate of the orebody or that provided by the Geological Survey is being used by his Department in any negotiations with Bula.

I propose to take Questions Nos. 3 and 4 together.

In my reply on 8 May 1984 to a question by Deputy Mac Giolla in regard to the estimated ore deposits of Bula Ltd., I stated that I had been informed by the company that the in situ geological ore reserves ranged from 20 million tonnes, grading 8 per cent combined lead and zinc at a 2 per cent cut-off, to 10.5 million tonnes, grading 13.9 per cent combined lead and zinc at 5 per cent cut-off. I would emphasise that the information I provided was in terms of in situ reserves in response to the Deputy's question.

The Geological Survey carried out assessments some time ago of the Bula orebody including an assessment of the extent of the mineable ore reserves, as distinct from in situ reserves. Several other assessments of mineable reserves have been made since then by other organisations and the Deputy may be assured that all relevant information on this subject will be borne in mind in the appraisal of the Bula mine project.

I might say that there can be variations of some significance in calculations of ore reserves by different experts, depending, among other factors, on the methods of calculation used and on their perception of the mineability of various parts of the orebody especially where the nature and extent of the mineralisation may not be fully established.

It was because of the Minister's reply to my question last May that I put this question down. I have since discovered the Geological Survey report. The Minister stated the Geological Survey report was in regard to mineable quantities and was not calculated on an in situ basis. If I may read from one small part of the report——

It is not in order to quote at Question Time.

Is the Minister aware that the Geological Survey report states that the demonstrated reserves have been calculated on an in situ basis? With a cut-off grade of 5 per cent they calculate 7.8 million tonnes with an average combined grade of 14.28 per cent. Is the Minister aware that in their report they state there is a striking difference between their estimate and the estimate given by Bula Limited of 11 million tonnes grading 12.36 per cent? There is a 40 per cent higher tonnage in the Bula estimate and a 13 per cent lower grade. Will the Minister explain why he refuses to accept the Geological Survey report?

In my reply of 8 May I made it quite clear that the estimate of the in situ reserves was given to me by Bula. I am aware of the Geological Survey assessment. It now forms part of the information available to me on the Bula orebody. I am aware that there are variations of some significance in the calculations in the various reports available to me. I pointed out in my reply that this is not unnatural or unusual. It depends on the number of factors taken into account by the various experts who assess the mining potential of the orebody and various other matters of a technical nature.

In regard to Question No. 4, will the Minister state which estimate the Government are using in their negotiations with Bula or with any financial companies in relation to the operation?

The Geological Survey report is one of a number of reports at my disposal. Due account will be taken of the contents of each of the reports including the Geological Survey report.

Surely the Minister will use the estimate he considers best in conducting the negotiations since the Government have a 49 per cent stake in Bula. Which estimate is he using?

There are a number of reports that have been compiled by experts in respect of the Bula orebody. I will be taking the best advice that is available regarding Bula from the technical experts in my Department.

Is the report that was carried out by a subsidiary of the ICC the one that is as close as makes no difference to the one that may be accepted by the Department in the final negotiations?

I can only give the same answer to Deputy Reynolds. There are a number of reports concerning the orebody, some of which have come to hand recently. I will take into account all the various elements involved so as to be in a position to take the best possible information from the reports. Should I not be satisfied that the information available to me is sufficient, I would not be slow to take the advice of other consultants.