Noranda and Teck Cominco reach agreement for Noranda to earn 50% interest in the Lennard Shelf zinc mine
April 23 2004 - 5:47PM
PR Newswire (US)
Noranda and Teck Cominco reach agreement for Noranda to earn 50%
interest in the Lennard Shelf zinc mine TORONTO, April 23
/PRNewswire-FirstCall/ -- Noranda Inc. (TSX and NYSE: NRD) today
announced that it has reached an agreement with Teck Cominco
Limited (TSX: TEK.b) to earn a 50% interest in the Lennard Shelf
mineral properties, plant and equipment and infrastructure in
Western Australia. In order to earn its 50% interest, Noranda will
be required to effectively invest approximately A$16 million in
exploration, operating, capital expenditures or other advances in
Lennard Shelf. The property was acquired by Teck Cominco from
Western Metals Limited in October 2003 for A$26 million. The
Lennard Shelf mines are currently on care and maintenance. Work was
suspended by Western Metals in late November 2003. Noranda and Teck
Cominco will endeavour to produce a redevelopment plan for the
assets. Work will include a detailed review of reserves and
resources, as well as mine planning and other optimization work,
and the generation of an exploration program to further define and
expand resources and reserves. A decision to restart the Lennard
Shelf mines will depend on the outcome of this work program, as
well as market conditions. "We are very pleased with this
opportunity to partner with Teck Cominco in owning this attractive
asset with significant exploration potential," said Derek Pannell,
President and Chief Executive Officer of Noranda. "The production
from Lennard Shelf will significantly increase our zinc exposure
when zinc market conditions have markedly improved." Lennard Shelf,
located in the Kimberly region of Western Australia, 2,500
kilometres north-east of Perth, consists of a number of Mississippi
Valley type lead/zinc deposits and a mill with an annual capacity
of 3.1 million tonnes of ore. In the year ended June 30, 2003,
Lennard Shelf produced 176,000 tonnes of zinc and 70,000 tonnes of
lead. Noranda Inc. is a leading international mining and metals
company with more than 48 mining and metallurgical operations and
projects under development in 18 countries. Noranda is one of the
world's largest producers of zinc and nickel and is a significant
producer of copper, primary and fabricated aluminum, lead, silver,
gold, sulphuric acid and cobalt. Noranda is also a major recycler
of secondary copper, nickel and precious metals. It is listed on
The Toronto Stock Exchange and The New York Stock Exchange (NRD).
DATASOURCE: Noranda Inc. CONTACT: Dale Coffin, Director, External
Communications, Noranda Inc., (416) 982-7161, ;
http://www.noranda.com/
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