Teck to explore fertile territory

A SUBSIDIARY of Canadian mining giant Teck has won the right to explore about 100 square kilometres of the potentially lucrative northwest minerals province.

The tender was announced yesterday as the State Government released its blueprint for development of the province, regarded as one of the world’s best underdeveloped mineral regions and containing an estimated 1.5 billion tonnes of known mineral resources, mainly copper, zinc, lead and gold.

Teck Australia will start exploration work for zinc, lead and silver as soon as the company is granted its exploration authority.

Teck Australia will explore an area about 8km southwest of Cloncurry, with access to the 1000km rail line to the port of Townsville.

The development comes in the wake of base metals prices jumping over the six months to December, with zinc prices rising 35 per cent and lead by 32 per cent.

The province has some significant development, including Mount Isa and the Ernest Henry copper mine, but is regarded as underdeveloped due to its remoteness and cost.

Natural Resources Minister Anthony Lynham said the blueprint, along with the Teck announcement, helped secure the next generation of resource development in the state’s northwest.

“The blueprint represents the combined efforts of government, industry and business stakeholders from across northwest Queensland to facilitate a strong and prosperous future for this important region,” he said.

The blueprint includes the potential for a mining company to get the same benefit granted as the first mover in a new basin. That would allow for royalty relief for the first years of production, but paid back later with interest.

The Government said the blueprint would help resource sector development, diversify the economy and create jobs.

It also includes a program in which the Government will develop “pre-competitive geoscientific’’ data to get a better understanding of the region east of Mount Isa and Cloncurry known as the Eastern Succession.