RENISON GOLDFIELDS EXTENDS LYELL COPPER MINE LIFE

  The Renison Goldfields Consolidated Ltd
  &lt;RGFJ.S> (RGC) Mt Lyell copper mine in Tasmania will stay open
  for an extra five years following a new aid package from the
  state government, RGC said in a statement.
      The mine had been scheduled to close in 1989 after the 40
  series stopes were mined, but will now stay open until the
  deeper 50 and 60 series have played out, probably in 1994.
      The Australian dollar's fall since 1985 also improved the
  local dollar copper price, making the company profitable and
  justifying the mining of deeper reserves at a copper grade of
  about 1.95 pct against about 1.60 pct now, the firm said.
      Ore output will be cut, but the higher grades will keep
  contained-copper output at current levels of about 24,000
  tonnes a year, it said. Capital expenditure of about 18 mln
  dlrs will be required over the life of the new plan, RGC said.
      The latest aid package is the third since 1977 for RGC, a
  major employer in Queenstown on the thinly populated west coast
  of Tasmania.
      The mine was kept open in 1985 after Tasmania gave RGC 10
  mln dlrs in aid. The new package includes an eight mln dlr
  advance to RGC at the long-term bond rate, power concessions
  and deferred royalties and payroll taxes.
  

