Tara Mines production and future
Tara Mines produced 2,417,600 tonnes of diluted ore in 1988 and targeted 2.6 million tonnes for 1989; sales values were unavailable. The Minister said Outokumpu’s planned flotation would not affect operations and the State would retain its shareholding. Asked about extraction rates, the mine’s lifespan and tax receipts, he cited the Minister’s powers under the lease, said revenue issues were under discussion, and undertook to provide the lifespan figures later.
asked the Minister for Energy the total tonnage and value of ore produced by Tara Mines in 1988; the expected figures for 1989; if the reported decision of Outokumpu to float off its mining interests as a separate company is likely to have any implications for the future of the mine; if it is intended to ensure that the State retains its shareholding in Tara Mines; and if he will make a statement on the matter.
Comment on this
I am informed by Tara Mines Limited that the company produced 2,417,600 tonnes of diluted ore in 1988 and that its target for 1989 is 2.6 million tonnes. Sales revenue figures for 1988 are not yet available and, in regard to 1989 figures, it is not the company's policy to issue sales value forecasts.
I am also informed by the company that whilst Outokumpu intends to float off certain of its mining interests it will maintain a controlling interest over Tara Mines Limited and that consequently the floatation will have no effect on the company's operations.
The State will retain its shareholding in Tara Mines Limited unless an acceptable offer for the shareholding is received.
Comment on this
Is the Minister worried about the rapidly increasing extraction rate at the mine? Can he forecast how long the mine will last at this rate of extraction? Have the Government any control in that regard? I understood they had some control over the rate at which they would allow mines to extract, bearing in mind jobs in the area, et cetera. Could the Minister say what is happening in regard to Tara Mines, in view of the fact that they are hiving off their mining to a separate company with a tax base in Holland? The Minister has not received a penny since the mines started in 1978 and is looking for a figure in the region of £5 million.
Comment on this
Regarding the Deputy's point about not receiving a penny, of course it is a worry that these developments have not progressed as originally envisaged. That is being discussed with the Revenue Commissioners. Under the mining lease the Minister for Energy has considerable powers in determining how the company operate the mine. We have had discussions with Outokumpu and they have made considerable progress in their operation, which would appear to be in line with Government expectations.
Comment on this
The Minister has not said whether he is satisfied with the extraction rate and how long the mine will last.