30/09/05
Western Australia is set to become one of the top five lead producers in the world when the Magellan Lead Mine, located 40km west of Wiluna, reaches full production in 2006.
State Development Minister Alan Carpenter officially opened the Magellan project today, saying it was WA's only pure lead mine and when fully operating, would produce close to three per cent of global mine production of lead.
"There is a strong and increasing global demand for lead, fuelled by the rapid growth of China's vehicle fleet and the subsequent demand for electrical-storage batteries, " Mr Carpenter said.
"With lead now in short supply and analysts' forecasts predicting a continued growth in demand, the Magellan project will become a vital player in the world lead market."
The Minister said the Magellan project would deliver major economic benefits to the local region and WA through employment, goods and services, royalties and exports over the coming decade.
The Phase Two - refinery stage of the Magellan development, due for completion in 2007, is set to further boost economic benefits to the State.
"A total of 120 people were employed during the mine's construction phase, with 80 to be permanently employed at full production," Mr Carpenter said.
"There will also be permanent employment for approximately 30 people indirectly, mainly in the transport and shipping sector."
The Minister said the State had invested significant resources in the region to ensure the infrastructure was in place to facilitate the Magellan project.
"Murchison-Eyre MLA John Bowler has secured a $7.5million commitment from the Gallop Government to seal two sections of the Wiluna-Meekatharra road, to greatly improve safety and driving conditions for the east-west transport link between the mine and Wiluna," Mr Carpenter said.
"We are also working with mine owners, Ivernia Inc. to fast track the construction of a new gas pipeline to connect the Goldfields Gas Transmission line to the Magellan site.
"Further, as Magellan's lead concentrates are railed from Leonora south to the port of Esperance, we are seeing an increase in demand for rail and port facilities that facilitates further growth in towns like Esperance.
"Projects like Magellan make a positive contribution to the State's economic infrastructure, adding to our capabilities and attractiveness as a place to invest."
Mr Carpenter said the project was expected to bring royalties to the State of $4million per year from 2006.
Minister's office: 9222 9699
