The first shipment of concentrates from the zinc/lead mine at Lisheen is on schedule for November, according to chairman, Mr Clayton Love Jnr.

The mine, he said, is coming on stream at a time when zinc prices have begun to increase. Full production of 125,000 tonnes is expected by the second half of next year.

More than 450 people are currently employed in construction, mining and processing activities at Lisheen. Recruitment of employees for the concentrator plant is now almost complete and recruitment for mining operations is ongoing. When the mine is in full production around 300 will be employed in permanent jobs, the chairman confirmed in his interim statement to shareholders.

The mine development programme, which was significantly delayed due to water inflows, "is now scheduled for completion by the end of the first quarter of next year", he said. "The high water inflows into the mine, from near surface features along the decline, continue to be effectively managed through a combination of surface and underground dewatering wells". The chairman said upgrading of the county access roads is proceeding to schedule and will be ready in November for the transport of concentrates to Cork port.

Project expenditures amounted to $55.4 million in the first half of 1999. This, together with working capital increases, was funded by cash drawdowns of $46.7 million under the $173 million term loan facility for the project and by equity contributions of $14.1 million by Ivernia and Anglo America, Ivernia West said. Total capital expenditure to date amounts to $196 million.

Final agreement was reached with Polymetals to invest in its subsidiary, Magellan Metals, which controls the Magellan lead carbonate deposit near Wiluna in Western Australia. It is acquiring 20 per cent and has the right to increase this up to 60 per cent.

Ivernia's development and exploration expenditure increased from £13.2 million to £25.1 million in the first half, reflecting the development stage of its operations.