Magellan restarts Wiluna lead mine

Magellan Metals has restarted processing operations at its Wiluna lead mine, the operation at the centre of the Esperance lead saga more than three years ago.

Magellan currently has about seven weeks of stockpiled ore availabe for processing through the plant, and mining operations are scheduled to recommence in March.

Magellan estimates it will produce approximately 60,000 tonnes of contained lead in concentrates during 2010 following the restart of operations. It has substantially completed the shipment of approximately 22,700 wet metric tonnes (approximately 13,500 tonnes of contained lead) of stockpiled lead carbonate concentrates.

In August 2009, following extensive community and government consultation, Magellan obtained final approvals to commence bagged and containerised sealed shipments of lead carbonate concentrates through the Port of Fremantle.

Shipments of the mine-site concentrate stockpiles started in September 2009 for export to international lead smelters through the Port of Fremantle.

Shipments of concentrate stockpiles are nearing completion and a smooth transition into new production is expected.

All shipments have been without incident and in full compliance with the stringent conditions imposed by the Environment Minister Donna Faragher.

In parallel with shipping the stockpiled material, during the second half of 2009, Magellan embarked on the detailed restart planning process. The major maintenance and re-commissioning projects required ahead of restart were undertaken during January and February 2010.

Significant additions to the Magellan management team were made during the second half of 2009 and recruitment of the mine-site workforce commenced in the fourth quarter of 2009 ahead of restart. At full complement the Magellan workforce will be about 160 including contractors.

On February 4 2010 Magellan Metals met its commitment under the terms of the Esperance Agreement and made an initial A$3 million payment (one third of its total) to the Western Australian Government as a contribution towards the clean-up of the port and the town.