Xstata plans to more than double output of zinc-lead concentrates from its McArthur River mine in the Northern Territory and upgrade three smelters worldwide, in a bid to extend the life of the isolated mine.

In a statement, Xstrata Zinc said it would look at spending $270 million to raise the mine's output of zinc-lead concentrates to 800,000 tons a year, from 384,000 tons last year, while a further $630m would be spent on upgrading smelters in Spain, Germany and Canada.

 

Global mined zinc production totalled 11.3 million tons of refined metal in 2009, and zinc concentrates typically contain about 50 per cent pure zinc.

 

Brian Hearne, chief operating officer of Xstrata Zinc Australia, said an environmental notice had been lodged with the Northern Territory government and the plan would extend the life of the remote mine by six years, to 2033.

 

"It is only by increasing production at MRM and reducing unit costs that the overall project is financially viable," he said.