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MMG releases Environmental Impact Statement for Dugald River

MMG today released its Environmental Impact Statement (EIS) on the proposed Dugald River project, with the document open for public comment until 7 March 2011.

The release of the EIS is the next important step for the project, and follows the completion of a feasibility study in 2008 which was updated in 2010.

The Dugald River resource is located in north western Queensland, approximately 65 kilometres north-west of Cloncurry and 85 kilometres north-east of Mt. Isa.

CEO Andrew Michelmore said the project was an important part of MMG’s growth strategy.

“The MMG business is now part of Hong Kong-listed Minmetals Resources Limited (HKEx: 1208), and Dugald River is an important part of our strategy to build a leading global diversified base metals company,” he said.

“We expect to make the commitment to develop the Dugald River project around the middle of 2011 and, subject to that and other required approvals, could have the mine in operation during 2014.

“As a result of the impending closure of several major zinc mines over the next few years (including our Century mine, which is expected to close around 2015), we believe the development of Dugald River to be very timely,” he said.

It is expected that Dugald River will produce concentrates containing approximately of 200,000 tonnes of zinc, 25,000 tonnes of lead and 900,000 ounces of silver annually over a 23-year mine life, with the resource open at depth.

Mr Michelmore added, “A very important element of the current phase of this project is consultation between MMG, the local community and other key stakeholders. We have already commenced consultation with some stakeholders, and will now expand our activities in this regard.”

A Public Notice of the EIS was published by the Queensland Department of Environment and Resource Management (DERM) and any person wishing to make comments on the EIS should address them to:

The Chief Executive
Attention: The EIS Coordinator
Dugald River Project
Department of Environment and Resource management
GPO Box 2454
Brisbane QLD 4001


DERM is expected to provide its Assessment Report on the EIS during the second half of 2011, and we expect to receive the Project Environmental Authority in the first half of 2012.



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