MT ISA

For the year ended, performance at the Mount Isa zinc-lead concentrator improved significantly and throughput increased from 5.0 million tonnes in 2007 to 6.1 million tonnes in 2008 as the expansion project progressed. Zinc metal in concentrate rose by 25% to 283,100 tonnes. Real cost savings were achieved through optimising reagent usage and improvements in energy efficiency. These improvements were partially offset by inflationary increases in the price of many consumables. In 2008, the Mount Isa lead smelter achieved production of 167,303 tonnes of crude lead. This was the result of increased concentrate feed from the zinc-lead concentrator and increased volumes of third party lead concentrate feed. Also reported that a strategic review aimed at optimising efficiency and productivity and securing the long-term future of Mount Isa operations has resulted in a restructuring of operations includes placing its Handlebar Hill operation on care and maintenance from early February 2009. Production from Handlebar Hill will be replaced by increased output from the George Fisher and Black Star operations at Mount Isa

The mine's and copper smelters have jointly established the Smelter Emissions Project, to achieve in excess of 98% capture and treatment of sulphur dioxide gas emissions from the lead smelter. A number of options are under consideration, with a decision expected in 2009 to enable emissions controls to be implemented over the following two years. Mount Isa smelter anode production was 2% lower due to the impact of 15 days of boiler maintenance in the primary smelter. Nonetheless, the supply of Altonorte anode to the Townsville refinery supplemented North Queensland anode production and led to an increase in cathode production of 2% over the prior first hal

Reported that a pre-feasibility diamond drilling programme on the 500 orebody enabled a upgrade to the previous Inferred Mineral Resource estimate. A total of 25 million tonnes of resource 48 has been converted to an Indicated status from an Inferred category. The pre-feasibility study into underground mass mining options is expected to be completed by the end of 2008 with a full scale feasibility study planned for 2009. Ore throughput in the Mount Isa zinc-lead concentrator rose by 9% compared to 2006 to 5 million tonnes, despite the fire incident. Zinc in concentrate production rose by 8% to 227,000 tonnes, with lead in concentrate production of 104,000 tonnes, a 4% decrease from 2006 due to lower head grades and recoveries. The fire impacted production by approximately 13,000 tonnes of zinc and 7,000 tonnes of lead in total. An insurance claim has been prepared for this business interruption. Ore production levels are expected to improve in 2008 as the capacity of the concentrator is increased to 8 million tonnes per annum. Performance at the Mount Isa lead smelter improved in 2007, as a direct result of increased volumes of third-party lead concentrate feed, which partially offset lower volumes of concentrate and lower grade lead feed from the concentrator. Lead in bullion production increased by 6% to 125,600 tonnes