Mr President, distinguished guests, ladies and gentlemen, I would like to thank you for your kind invitation to this annual gathering of the Irish Mining and Quarrying Society. It is one that I was very happy to accept. I am advised that this is primarily a social occasion so I will try to keep my comments short.
As you know, my brief as Minister is a very broad and diverse one. The focus tonight, however, is on my responsibility for mining and mineral exploration, handled by the Exploration & Mining Division of my Department, and for the activities of the Geological Survey of Ireland.
I am aware, of course, that not all of your members are involved in the mineral sector but you will all be familiar with the wide-ranging work of the Survey, which regards your industry as valued customers.
I am glad to meet you all and to have the opportunity to celebrate another interesting year. As we approach the end of 2005, we can look back on a year of mixed fortunes in some areas but we can safely say it was a good one for the extractive industries.
I am very happy to see that the recovery in the base metals market last year has carried through to 2005 and we are now enjoying higher zinc prices than we’ve seen for many years.
I believe that the prognosis is very good for the next few years, although there are concerns at the impact of high oil prices on energy costs.
The International Lead and Zinc Study Group is predicting large deficits for zinc for 2005 and 2006, and somewhat smaller ones for lead, and the general expectation is that these will continue for some years. The main bottleneck is mine production, which augurs well for concentrate treatment charges in the short term at least. China continues to be a major driver of the deficits, and the new mines and smelters there are not expected to be enough to cover its own requirements. The general expectation is that the Chinese boom will continue at least until the Olympics in 2008.
During the first eight months of the year, Ireland was responsible for over 40% of Western Europe’s zinc mine production and nearly 30% of its lead output. Against this background I am optimistic for continued success for our three zinc and lead mines, Navan, Galmoy and Lisheen in the coming years.
I would like to welcome to Ireland Arcon Mines’ new partners, the Lundin Mining Group. Their investment in Arcon, which has already contributed to increased profit in the Group, should be seen as a vote of confidence in base metal mining here, and I hope that the development of the R-zone at Galmoy will lead on to more success in the future.
With the long-running Bula saga now behind it, and the Nevinstown deposit now being worked by Boliden-Tara Mines, I am confident that the Navan mine will continue to provide the company with economic resources well into the next decade.
The Lisheen mine obtained Planning Permission for the Bog zone in October, and I look forward to many more productive years there also.
All of this success has encouraged interest in exploration, and, in addition to drilling for further resources by the existing mines; there has been a significant increase in applications for Prospecting Licences.
I am pleased to report that there was an increase of over 20% in exploration expenditure outside mine areas in 2004, an upturn which has been carried through to 2005.
I am particularly encouraged by the entry to the exploration arena here this year of the major multi-national Teck-Cominco who have been offered a number of Prospecting Licences.
In view of this renewed exploration interest, my Department decided in 2005 to make available for exploration, two areas with identified prospects. These are at Ballinalack, Co. Westmeath, for zinc, and at Cregganbaun, Co Mayo for gold.
There was substantial competitive interest and licences are currently in the process of being issued over this ground.
Uptake of exploration ground has also shown a marked increase with some 25 areas issued or in the process of being so in 2005. The encouraging results from exploration are continuing for the major zinc project area of Pallas Green in east Limerick and an aggressive exploration programme is now scheduled by Arcon in the area around Galmoy, Co. Kilkenny. I am confident that we have not seen the last of any new economic zinc or gold deposits.
As part of the continuing drive by the Exploration and Mining Division to stimulate exploration investment and ensure that Ireland remains globally attractive and competitive, the last year has also seen substantial output from its exploration support programmes. Exploration data is now freely available for over 40% of the country through the Division’s industry focused website.
In the last year, EMD has also focused on adding value to this company data with the launch of its Target Areas Initiative. As part of this programme, focused information on the zinc and gold prospects mentioned previously were released on CD-ROM.
All in all, it’s a lot more optimistic than in recent years and I am glad the Exploration & Mining Division (EMD) of my Department was able to assist the industry when times were difficult through flexibility in regulatory aspects, such as the expenditure moratorium for exploration and interim royalty relief for some mining operations. I will continue to encourage consultation with the industry and co-operation where possible to address our mutual concerns.
My officials are currently developing new legislation for the minerals sector which I hope to be able to unveil early in 2006.
My intention is to consolidate and modernise the various Acts under which the sector is regulated in order to provide greater clarity and streamline processes. In this regard I appreciate the contribution to the consultation process made by some of your members and their helpful submissions.
2005 has been another good year for the construction industry, of course, and consequently for the non-mineral extractive sector also. 120 million tonnes of aggregates were extracted in the last year, which is a considerable achievement. Without it our major infrastructure programme would grind to a halt.
Infrastructure development represents a major element in the recently announced transport policy, Transport 21, and achievement of targets will depend on your members continuing to deliver the vital raw materials. The housing sector remains buoyant and housing stock is increasing at twice the rate of increase in the population. Your industry is vital to ongoing development in this sector also.
Quarrying is not always associated in people’s minds with good environmental and health and safety practices. I am most encouraged to see that two Irish companies, Kilsaran Concrete and Roadstone Provinces featured amongst the recipients of the and UEPG’s 2005 sustainable development awards.
Your sister organisation the Concrete Federation has just launched its environmental code and this will no doubt help others to follow in the footsteps of Roadstone and Kilsaran and show that quarries can be good neighbours.
Irish Gypsum is of course another leading supplier of materials for the construction industry, operating under a State Mining Lease from my Department. The company is now producing from its new underground mine at Drummond.
A wide range of information and services is provided to your industry by the Geological Survey of Ireland (GSI), the national agency for earth sciences.
Examples of GSI activity in this area include its collaborative work with Local Authorities, where it has now carried out aggregate potential mapping for Counties Cavan, Donegal, Meath and Wicklow, raising the recognition of your industry, and the resources it is based on, in the planning process. In addition GSI has continued working in partnership with Kilsaran Concrete Ltd. on mapping of the Quaternary sediments in Counties Westmeath and Louth in the search for granular aggregates.
The Survey has recently commenced the Irelithos Project in conjunction with the Office of Public Works. This project seeks to identify replacement stone for buildings and monuments in the care of the OPW and their possible sources.
It is vital for the future of the extractive industry that we deal effectively with the legacy and heritage of its past. I have this year secured the agreement of the Government to fund rehabilitation works at the former mine sites at Silvermines. This work will be undertaken by North Tipperary County Council.
The Government has also agreed to fund studies of the former mining area of Avoca in order to develop an integrated management and remediation plan for the area. These studies are being managed by GSI, with help from EMD and in liaison with Wicklow County Council and other relevant agencies.
My Department is also responsible for many aspects of the Marine area, and recently I was happy to bring a memorandum for the next phase of the Irish National Seabed Survey to cabinet for approval. This major GSI managed project, in joint venture with the Marine Institute (MI), has successfully mapped Ireland’s offshore region, in one of the largest such surveys ever undertaken worldwide.
In this phase of the project, now under the title INFOMAR, the survey work is to move closer to shore. Critically for your industry is that a key application of this important work is the identification and mapping of seabed resources of sand and gravel.
An evaluation project, called IMAGIN, on the best methods to recognise and map these resources, is already underway involving GSI, UCC and the British Geological Survey. Given trends worldwide in aggregate development moving offshore, there can be little doubt that this will be a growing sector of importance for your industry.
Once again, thank you for giving me the opportunity to address you directly and comment on events during the past year. I wish you all a pleasant evening and continued success in 2006 and beyond.
ENDs