Anglesey Mining want to reopen Parys Mountain by 2020

Anglesey Mining want to reopen Parys Mountain by 2020

The news comes following a recent rise in metal prices, spurring the company to push forward with the development of their plans.

There have been a number of attempts to restart work at Parys Mountain, which closed almost a century ago, and now the mining firm is hoping to complete a definitive feasibility study in the first half of next year.

Assuming financing talks go as expected by the middle of next year, construction at the historic mine could start before the end of 2018, with initial output coming in the first half of 2020.

Since the company produced a scoping study in July, the price of all metals to be produced at the mine have risen, with copper now at US$3.10 per pound, compared to US$2.50 a pound two months ago.

Similarly, zinc has increased to US$1.40 per pound compared to US$1.25 per pound in the study and lead has moved to US$1.09 per pound compared to US$1.00, Anglesey said.

Using the July prices, on a base case the pre-tax net present value is US$33.2m (£26.6m) and an indicated internal rate of return of 28.3%.

By using the longer-term metal price projections (US$1.35 for zinc and US$3 for copper) the net present value rises to $43.2m (£34.6m) and the indicated internal rate of return moves to 33%.

Even better for the firm, the July study was based upon 2.1m tonnes of resources, as reported in 2012.

Consultant Micon International has reported a further 4.1m tonnes of inferred resources which were not incorporated in the scoping study.

These would be processed through the same plant and would significantly increase the projected 8 year life of the mine to 15 or 18 years and enhance net value.

Bill Hooley, chief executive of Anglesey, said: “We are very pleased with the results of the Scoping Study which demonstrate a viable mine development at Parys Mountain and a healthy financial internal rate of return.

“The base case economic model at 1,000 tonnes per day indicates a robust project at consensus forecasts for the long-term prices of zinc and copper.

“This is the first detailed economic study of the Parys Mountain project for a number of years and, based on the current availability of reconditioned process plant, the estimated pre-production capital cost for the project is at a level that could be financeable.”

Mining at the particular site dates back to as far as the Bronze Age and yielded more than 300,000 tonnes of material before its closure.

In 2006, Anglesey Mining planned to sell shares to pay for a feasibility study to reopen the site.

In 2008 it was nearly sold to an Australian mining company but the deal fell through.

The company has had planning permission since 1990 and Mr Hooley believes about 120 jobs could be created.