commercial Norpac base metal mine assets to be liquidated

Press, Volume CXIV, Issue 33452, 6 February 1974, Page 13

commercial Norpac base metal mine assets to be liquidated

(Nep; Zealand Press Association; WELLINGTON, February 5. The Tui Mine, Te Aioha, which is owned by Norpac .Mining, Ltd, is to close after efforts to find new markets for the metals failed, partly because Japanese industry is reducing output as a result of the oil crisis.

The mine has been kept in operation for many months by support from the Government and the Development Finance Corporation. The Minister of mines (Mr Colman) said that the receiver (Mr I. M. Sommerville> is taking steps to cease work at the mine and to dispose of the assets. “We are naturally disappointed that the only base metal mining operation to start up in New Zealand has met this fate,” Mr Colman said. “Despite vigorous efforts to find profitable markets for the concentrates produced and to find a mining partner for the venture, insufficient interest has been generated to warrant any further delay in closing down the mine,” he said. Japanese industry was forced to cut back production soon after the Depart-

ment of Scientific and Industrial Research had successfully conducted small scale trials designed to reduce the level of mercury contamination in the concentrates. The Mitsui Company of Japan, which held the contract for the mine output had announced that it would not be interested in reestablishing purchase arrangements because its smelter had been forced to reduce output by 20 per cent. Mr Colman said that 20 other smelting companies, or their agents had shown interest in purchasing concentrates, but only two companies had made firm offers. However, because of high shipping costs only marginal returns would have been available to the Tui Mine. Attempts were made to interest an overseas smelting (company in taking an equity

interest in the mine and expand production to more profitable levels. One company sent a team of experts during the middle of January to evaluate the prospects. However, this company has advised that because of the high cost of development that would be involved, it was forced to decline any further consideration of financial involvement, Mr Colman said.