Magellan Metals is likely to see tougher environmental conditions for its Wiluna lead mine following the release of the EPA’s draft recommendations.
The report, by the Environmental Protection Authority for the WA Government, comes after lead carbonate was detected on the outside of sealed bags which were being transported from Magellan’s Wiluna mine.
It focuses on compliance reporting; dust control; the mine’s decommissioning and rehabilitation plan; its environmental monitoring plan; an emergency response plan; Magellan’s transportation plans; and ongoing management plans.
According to Magellan, once it receives the final operating conditions from the WA minister it will be able to provide guidance for restarting its halted operations.
However, it hinges on the transportation conditions offered in the draft recommendations, as the miner would not be able to restart operations until it had satisfied these lead carbonate transportation requirements.
Once it announces the decision, it will take just over three months for ramp up operations to be completed.
As of 30 September Ivernia, which owns Magellan, has spent around US$10.5 million on care and maintenance activities, and stockpiling its resource. There is an existing stockpile of around 10 100 tonnes of lead carbonate concentrate at the site.
The miner is as yet unsure whether it will have enough capital to restart the mine once a decision is made.