The Tara Mines operation in Co Meath – Europe’s biggest zinc mine and one of the largest in the world – plunged to a €29m loss last year as weaker prices and exchange rates hit the business.
wned by Sweden’s Boliden, revenue at Tara Mines fell almost 14pc to €171.1m last year. However, the company said the outlook for the mine – which extracts zinc and lead ore – remains positive.
The loss in 2020 compared to a pre-tax profit of €12.6m in 2019.
The directors of the business noted in newly-filed accounts that the average price of zinc fell 11pc last year to $2,267 (€2,002) a tonne. The average price for lead last year was 8.7pc lower, at $1,862.
They noted that with group revenue in US dollars, and operating costs mainly in euro, the exchange rate has a significant bearing on the group’s financial results. The average dollar to euro exchange rate weakened appreciably last year compared to 2019.
The current spot price for zinc is $3,211 (€2,837) a tonne, while for lead, it’s $2,343.
“While the start of 2021 has again been challenging from an operational perspective, demand for concentrate remains strong, and management see no material risk to production and the supply of group concentrates through 2021,” said the directors in the accounts.
There were 2.3m tonnes of zinc and lead ore mined and milled at the Tara operation last year, which compared to 2.5m tonnes in 2019.
“Current ore reserves indicate a mine life through 2028,” note the directors, adding that the outlook for the mine’s future “remains positive”.
“Market conditions require the company to remain focused on productivity improvements and control of its cost base as mining operations and the delivery of ore move further away from the surface processing facilities,” they add.
“Continued investment is required to address these challenges in the years ahead.”
The mine, which has been operational since 1977, employs almost 700 people.
Last year, the company behind the mine spent €18m on exploration activities, compared to €12.7m in 2019.
Boliden’s Tara Deep project at the Navan mine aims to prolong its life as the group hunts for new lead and zinc ore in the area.
The plan envisages a more than €40m investment that will unlock the ore at depths of up to 1.9km, which will make the mine one of the deepest in the world.
Tara Deep is located approximately 1km southeast of the main mine and is currently a major focus for exploration and development by the group.
In a recent presentation to investors, Boliden said that work is significantly advanced on the Tara Deep project.
Projected resources at Tara Deep have been steadily increased by the company.
By the end of last year, a total of 25km of drilling has been completed in relation to Tara Deep, including extensive navigation drilling.
However, the Covid pandemic curtailed exploration activity during 2020.
“As the mine gets deeper, increasingly thinner areas of ore are being encountered and this requires continual focus on costs, diamond drilling and optimal mining methods,” noted a report prepared for the group last year.
