Hong Kong-listed Minmetals Resources, a subsidiary of Chinese metals and mineral trading company China Minmetals Corporation, has announced that its board of directors has approved expenditure of A$157 million ($158 million) for the development of the next stage of its Dugald River zinc mining project in northwest Queensland, Australia.
The next stage of the Dugald River development would progress project activities to receive full environmental approval. Major work would include detailed engineering, metallurgical test work, long-lead time major equipment procurement, the continuation of early site works, and underground decline development.
The undeveloped Dugald River zinc mine has an expected annual production capacity of 200,000 mt of zinc ore concentrate. The mine will have an estimated life of 22 years.
Minmetals also possesses another zinc mine in Australia, i.e., Century Mine, the largest open-pit zinc mine in the country. This mine has an annual production capacity of 500,000 mt of zinc ore concentrate. It is expected that the life cycle of the mine will come to an end around 2015.