Profits at Tara Mines operator fall by 63%

Pre-tax profits at the firm that operates Tara Mines last year fell by 63% to €10.26m, new figures show.

The mine is Europe’s largest and the world’s 5th largest zinc mine and employs 717 people.

In filings just lodged with the Companies Office, they show that revenues at the Swedish-owned Tara Mines Holdings Ltd and subsidiaries increased by 2% from €190m to €194.5m in the 12 months to the end of December last.

Earlier this year, the firm warned the Labour Court that without a reduction in labour costs, 2013 would be loss-making for the mine and that the savings were necessary to secure additional capital investment for the operation.

Management and unions at the Labour Court reached an agreement on costs that will result in the company investing €110m to maintain the mine’s operation to 2018 and beyond.

Production at the mine, located 2km west of Navan, began in 1977 and since then over 70 million tonnes of ore have been mined.

Currently, Tara produces between 2.4 and 2.5 million tonnes of ore per annum resulting in 400,000 tonnes of zinc and lead concentrate.

The mine was purchased by Swedish company, Boliden in 2004.

According to the directors’ report, the mine has reserves until 2019.

The directors state that cost of sale increases, driven by a €5.4m asset write-down, were the main factors behind the drop in profits.