Replacement of an ageing mobile equipment fleet

"History of Tara Mines Ltd.Tara Exploration and Development Company Ltd. was formed in Canada by Irishmen in 1953. The discovery of an orebody approximately six miles from the historically famous Hill of Tara in County Meath was a wild dream . Nevertheless this dream became a reality. Tara Mines Ltd. was formed, and the mine developed some 35 miles northwest of the City of Dublin in the Irish Republic.Tara's original drilling program indicated a zinc-lead orebody of approximately 60 million tonnes grading at 10.1% Zn and 2.6% Pb. The terms of the mining lease stipulated that the Irish government would acquire 25% equity interest in the operation. The mine was thus owned 75% by Tara Exploration and Development Company Ltd. of which the principal shareholders were Noranda and Northgate, together with 25% being held by the Irish government. The mine was purchased in March 1986 by Outokumpu Oy, a Finnish mining and metallurgical company, and together with the 25% government stake are the current owners. Outokumpu Analysis on Tara Mines Ltd.Upon ownership Outokumpu carried out a comprehensive analysis on the operation and came to the following conclusions :1. Tara had a good orebody;2. Tara had a skilled, capable, stable workforce;3. Tara's concentrator and processing equipment was adequate to meet requirements;4. Tara's mobile equipment fleet was too old and too numerousin numbers; and5. Tara had too many employees, both staff and hourly paid .With ore reserves of approximately 50 million tonnes and at a planned extraction rate of 2.6 million tonnes it meant that the mine had a lifespan of approximately 20 years. To be a viable operation into the future, the mine had to become more efficient. Operating costs and manpower levels had to be dramatically reduced."