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Joint News Release: Lennard Shelf operation ceases production (PDF)
Madrid and Vancouver, 14 July 2008
Teck Cominco Limited (TSX: TCK.A and TCK.B, NYSE:TCK) and Xstrata Zinc today announce the closure of the joint venture Lennard Shelf Pillara mine in Western Australia. Operations are expected to cease by early August.
The Pillara mine has become uneconomic, primarily due to the sharp decline in zinc and lead prices compounded by the appreciation in the Australian dollar. Higher energy and labour costs and lower than planned production have also contributed to rendering the project uneconomic. The decision to start Lennard Shelf was made in 2006 and production commenced in early 2007. In the period to 31 December 2007, the operation produced 42,100 tonnes of zinc metal and 12,400 tonnes of lead metal.
Orderly mining of drilled and broken ore stocks will be undertaken from today until the cessation of milling operations. Mine development and exploration work has been suspended. All existing contracts will be terminated and employees will be provided with appropriate support.
Dewatering of the Pillara mine will be discontinued following de-commissioning and the plant and surface facilities will be placed on care and maintenance until a decision on the long term future of the assets and tenements is taken.
The closure is not expected to have a material impact on earnings for either company.
Ends
For further information contact:
| Teck Cominco Limited | Xstrata | ||
| Greg Waller | Claire Divver | ||
| Telephone | +1-604-685-3005 | Telephone | +44 20 7968 2871 |
| Email | greg.waller@teckcominco.com | Email | cdivver@xstrata.com |
| Xstrata Zinc Australia | |||
| Patrick Collins | |||
| Mobile | +61 4 23 842 994 | ||
| Email | pcollins@xstratazinc.com.au | ||
Notes to editors
About Lennard Shelf
Lennard Shelf is a 50/50 Joint Venture with Teck Cominco and Xstrata, located in the Kimberley region of Western Australia. The reopening of the Pillara mine and milling operations was announced in April 2006 with a projected mine life at that time of 3 to 4 years. Approximately 300 employees and contractors are currently employed at the Pillara mine and mill and Derby port facilities.
About Teck Cominco
Teck is a diversified mining company, headquartered in Vancouver, Canada. Shares are listed
on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock
Exchange under the symbol TCK. The company is a significant producer of copper, zinc,
metallurgical coal and specialty metals, and has interests in several oil sands development
assets. Further information can be found at www.teckcominco.com.
About Xstrata Zinc
Headquartered in Madrid, Spain, Xstrata Zinc is one of the world’s largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata’s zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom. Further information can be found at www.xstrata.com.