Xstrata says didn’t breach lead levels in Mt Isa

Production and Markets

Xstrata plc said re-testing of air samples showing excessive lead levels near its smelter in Mt Isa, Australia, showed it didn’t breach quality limits.

“The re-testing of the original samples by two laboratories, including a leading Queensland government-owned laboratory, returned correlated results over the weekend, namely that the lead concentration levels did not exceed regulatory limits,” Xstrata said in an e-mailed statement.

In the three months to end-December, one of the five monitoring stations in the town recorded an average level of lead 0.6 micrograms higher than allowed, Queensland state Environment Minister Kate Jones said on February 19. The Zug, Switzerland-based company had until today to remedy the alleged breach or face fines of as much as A$2 million (US$1.8 million).

“I am relieved to hear that Xstrata believes that they have new data which shows that their lead levels are safe,” Ms Jones said today, according to Australian Associated Press. “This is the outcome that all of Mt Isa and everyone in Queensland wants to see.”

Ms Jones will be releasing a statement regarding the tests later today, a state government employee who declined to be identified said.

Queensland’s government in May 2008 said it would monitor lead dust and conduct further blood tests on residents after tests showed elevated levels in some children in Mt Isa, the home of a mine and smelter owned by Xstrata.

Xstrata gained control of the mine and smelter in 2003 by buying MIM Holdings Ltd for A$3.44 billion (US$2.95 billion).

Feb 22 (Bloomberg)