Xstrata Zinc start at Bracemac-McLeod

Panorama

Xstrata Zinc Canada has announced the commencement of construction of the new Bracemac-McLeod Mine. At full production, the mine will produce 80,000t of zinc and 10,000t of copper annually, with development tonnes expected in early 2012 ramping up to reach full production in the first quarter of 2013.

The total capital cost for the mine is approximately C$158 million, of which Xstrata’s share will be approximately C$104 million. The mine will provide 250 jobs for its life span of at least four years and will be located approximately 4km from Xstrata Zinc’s Matagami concentrator, which is currently supplied with ore from Xstrata Zinc’s nearby Perseverance mine.

The project will provide a continued feed of ore to Xstrata’s Matagami concentrator once the Perseverance mine comes to the end of its life. It will also use existing processing infrastructure and will provide ongoing employment opportunities for the existing workforce at Perseverance. The new mine will also minimise its environmental footprint by using the closed Bell-Allard South mine pit to dig the new ramp.

The Bracemac-McLeod project is the result of a successful exploration joint venture with Donner Metals. The project will be managed and operated by Xstrata Zinc, while Donner Metals has the right to earn in a 35% share in the joint venture by proportionately funding its share of the capital costs.