Zinc mine in first deal on royalties

A BORN-AGAIN zinc mine in the North West Minerals province has struck a landmark royalty deferral deal with the State Government.

New Century Resources’ zinc mine at Lawn Hill has become the first miner to ink a deal under the State Government’s royalties framework, which was introduced in 2017.

Premier Annastacia Palaszczuk said the deal would “supercharge” the ramp up of the $150 million mine and support more than 260 construction jobs and 240 ongoing operational roles.

“We know the North West Minerals Province is rich in minerals like copper, cobalt, zinc and gold, as well as potential deposits of rare earth minerals that will play an increasing role in renewable electricity generation and battery technology,” she said.

New Century Resources’ revived the zinc mine after acquiring it from MMG in 2017.

The company has since been selling zinc and silver deposits recycled from tailings.

Under the royalties framework, deferred royalties must be repaid in full with interest.

The State Government said the “reinvigorated” zinc mine had the additional benefit of continuing the operation of a 304km slurry pipeline between the mine site and Karumba, in the Gulf of Carpentaria.

This means the miner will continue to dredge the Port of Karumba, making it accessible for other commercial users.

Deputy Premier Jackie Trad said New Century had committed to employing a “significant proportion” of local indigenous workers.

“The company has set a great benchmark for future proponents wishing to engage in a Royalty Deferral and Repayment Agreement,” she said.

The company will extract metals in concentrate by reprocessing tailings and aims to achieve production of 264,000 tonnes a year of zinc and three million ounces of silver over seven years.