THE chief executive of Arcon, Mr Brendan Gilmore, is to step down from the position in October. He will be replaced by Mr Tony O'Reilly junior, who is currently deputy chief executive.

Mr Gilmore, who was on a two year contract, will remain on as chairman of the exploration company which is currently developing a £65 million lead/zinc mine at Galmoy, Co Kilkenny.

Mr Gilmore, who owns the financial consultancy firm Gilmore & Associates has played a role in Arcon for the past five years. He admitted that the mine had had a difficult passage.

"It was the first base metals mine to be built in Ireland in more than 20 years and had to contend with problems and interest groups which didn't exist 20 years ago.

The mine was vigorously opposed by some groups.

Mr Gilmore said it was a very timely moment to be handing over the position to Mr O'Reilly who had worked with him for five years and was very able.

Mr O'Reilly saldone of his tasks would be to continue to develop Arcon as an explorations company and to continue the programme to locate more deposits at Galmoy.

The company is expected to be in production early next year and recently announced that it had located another 2.5 million tonnes of resources, extending the life of the mine further.

In a statement, Arcon director, Mr John Meagher, said Mr. Gilmore became chief executive" at a critical stage in the evolution of the company and would be handing over to Mr O'Reilly after the first ore from the mine came to the surface.

"Under Brendan's leadership, ably assisted by Tony and chief operating officer, Jim Tilson, the company has secured planning permission for the Galmoy Mine, obtained the necessary mine licence, arranged the raising of, funds for the construction of the mine, which is now nearing completion, and achieved a full listing for the company," Mr Meagher said.