What is MIM doing to improve the returns on its lead-zinc assets?
A. Almost a third of MIM’s revenue is derived from lead-zinc but very little profit. Increasing the returns from the lead-zinc revenues is one of the company’s three main objectives, the other two being to double 2001 coal production by 2006 and increase copper production by 50% by 2007. Pursuing a strategy of exiting loss-making European zinc smelters, we have sold one (Duisburg) and closed the other (Avonmouth by March 1 2003). We are conducting a feasibility study into producing zinc metal at the McArthur River mine site using the MIM Albion Process technology, thus greatly reducing the realisation costs (transport and smelting/refining) that comprise up to 60% of total production costs. This has the potential to make MIM the lowest cost zinc metal producer in the world.
