ARCON Mines has moved closer to production at its Galmoy, Co Kilkenny, zinc lead mine, following the placing of a £5 million order for mobile underground equipment. A Finnish consortium, comprising Tamrock and Normet, will supply the equipment ahead of commissioning and ore production in the fourth quarter of this year.

Both companies have been supplying equipment to Tara Mines, Europe's largest zinc mine. The equipment consists of rigs, trucks and service gear. The Galmoy project is being designed as a 650,000 tonne a year zinc lead mine with ore grading 11.5 per cent zinc and 1 per cent lead. Reserves rose by 25 per cent in March when Arcon announced an increase in reserves of 1.78 million tonnes.

Arcon has already entered into arrangements with six European smelters, at a market price at the time of delivery.