Tuesday 25 September 2018

Pensions move lifts Tara Mine operation

Tara Mines in Co Meath
Tara Mines in Co Meath
John Mulligan

John Mulligan

The Tara Mines operation that's owned by Swedish group Boliden saw its profits soar last year to €45.7m. It recorded an exceptional gain related to the closure of its defined benefit pension scheme.

The closure of the scheme resulted in a €44.8m gain for the company behind the mine at Navan, Co Meath, which is the world's eighth-largest zinc mine. It had a €24.2m pension-related gain the year before.

Excluding the gain, operating profit for 2016 was €1.3m. That compared to a €22.7m loss before exceptional gains in 2015.

The 2016 figure was despite turnover at the mine soaring 40pc to €217.5m as the operation benefited from higher prices for zinc and lead.

Accounts just filed for the operation show that the average price per tonne of zinc during 2016 rose 8.7pc to $2,095. The average price per tonne of lead was $1,872, which was 4.9pc higher than in 2015.

The mine, which employs about 700 people, produced 2.6m tonnes of ore last year, which compared to 2.2m tonnes in 2015.

Tara, which opened in 1977, accounts for half of Boliden's total zinc concentrate output.

Earlier this year, Boliden said it will invest €44m in the mine after finding additional reserves.

The new find - called Tara Deep - will also make Tara one of the world's deepest mines, with fresh ore located up to 1.9km below the surface.

In the summer, it received planning approval for a project to extend the mine's so-called tailings dam - used to store mining by-products after ore is separated from the material in which it's embedded.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business