Magellan Metals

Magellan Metals^[1] operates a lead mine at Wiluna in Western Australia.

Magellan Metals is wholly owned by and the principal operating asset of Ivernia Inc., an international base metals mining, exploration and development company listed on the Toronto Stock Exchange (TSX) under the symbol IVW.

The Magellan Mine is an open cut lead carbonate mine and concentrating facility.

Sealed Shipment Process

Mining in the Wiluna-Leinster area.

Following issues with the bulk loading of lead carbonate concentrate at the Port of Esperance in 2006/07, which resulted in fugitive dust emissions, the mine was placed on care and maintenance in April 2007.

In August 2009, after extensive community and Government consultation, Magellan Metals obtained final approvals to commence bagged and containerised sealed shipments^[2] of lead carbonate concentrate through the Port of Fremantle.

In September 2009, Magellan Metals began export of the lead concentrate stockpiles at the mine-site to its international customers using the sealed shipment process.

In mid-December 2010 Magellan met with and proactively advised the Office of Environmental Protection Authority (OEPA) that an internal review of data showed that lead from the Magellan Mine may have been identified within a small number of sealed containers. Magellan Metals was fully prepared to meet the timeline agreed with the OEPA as a result of these meetings to provide additional information when the Stop Order was issued on December 31, 2010^[3].

In early January 2011 the independent laboratory responsible for the testing reviewed its results and found that they were incorrect and there had been no exceedances of the baseline. This position was confirmed by an independent expert commissioned by Magellan Metals^[4] and an independent review commissioned by the Western Australian OEPA. Both the Government and Magellan Metals confirmed that there was no risk to the community from the transport operations^[5].

Magellan Metals was given permission by the Government to commence transporting again in late February under Interim Implementation Conditions imposed on the operation^[6]. However, after two further interruptions to the transport process in February and March the company’s owner, Ivernia Inc, placed the Magellan Mine operations on care and maintenance on 7 April 2011^[7].

Ivernia has stated the mine will remain under care and maintenance while an end-to end-review of the entire Magellan Metals operation is undertaken to identify ways to minimise the risk of further business interruptions. Ivernia has said that at the current time it cannot provide any guidance on when operations will restart at the Magellan Mine^[8].

Esperance Lead Issue

Following the reported deaths of native birds at Esperance in Western Australia between December 2006 and March 2007, it was discovered that lead being exported through the town's Port had caused or contributed to their deaths.

On 12 March 2007, the Board of the Esperance Port Authority put an immediate stop to any further shipments of lead carbonate through the Port.

A Parliamentary Inquiry into the event was instigated and investigated the bird deaths, high blood-lead levels in Esperance residents and the contamination of the town's water tanks.

The Parliamentary Inquiry report^[9] was published in November 2007.

The Inquiry found that the issues were complex and involved multiple parties including the Esperance Port Authority and the Department of Environment and Conservation (DEC).

The DEC subsequently instigated legal action against the Esperance Port Authority on various matters relating to polluting the Esperance town site. The Port entered a guilty plea in October 2009 on most charges against it and was subsequently fined A$525,000 under the WA Environmental Protection Act 1986, the biggest fine ever under the Act.^[10]

The government is spending an estimated A$20 million on the clean up in Esperance.^[11] Magellan agreed to make a voluntary contribution of A$9 million to the Western Australian State Government towards the clean up of Esperance and separate A$1 million for community projects in the town.

See also

• Environmental issues in Australia

References

1. ^ Magellan operation http://www.magellanmetals.com.au
2. ^ Magellan sealed shipment process http://www.magellanmetals.com.au/operations/mining.aspx
3. ^ Ivernia News Release 3 January 2011 http://magellanmetals.com.au/media/16532/ivw%20news%20release%20jan%203%202011.pdf
4. ^ Ivernia News Release 10 January 2011 http://magellanmetals.com.au/media/16587/ivw%20news%20release%20jan%2010%202011.pdf
5. ^ The West Australian 4 January 2011 http://au.news.yahoo.com/thewest/a/-/breaking/8593629/no-evidence-of-lead-leak-company/
6. ^ Interim Implementation Conditions http://www.epa.wa.gov.au/peia/Interim%20implementation%20conditions%20%28s46a%29/Pages/default.aspx?cat=Interim%20implementation%20conditions%20%28s46A%29&url=peia/Interim%20implementation%20conditions%20%28s46a%29
7. ^ Ivernia News Release 5 April 2011 http://magellanmetals.com.au/media/19048/ivw%20news%20release%20april%205%202011_final.pdf
8. ^ Ivernia News Release 5 April 2011 Ivernia News Release 5 April 2011 http://magellanmetals.com.au/media/19048/ivw%20news%20release%20april%205%202011_final.pdf
9. ^ Parliamentary Inquiry Report http://www.dec.wa.gov.au/content/view/3484/1729/1/5/
10. ^ Esperance Port fined over lead contamination: http://www.abc.net.au/news/stories/2009/10/30/2729043.htm
11. ^ Magellan should pay for Esperance clean up:Greens http://www.abc.net.au/news/stories/2008/04/04/2207786.htm

External links

• Official website
• WA Government responds to anti-lead protests
• Official knew of lead risk breaches