Pipes cleaned at Red Dog mine

Despite lower production from some partially clogged pipes in its mill, Red Dog posted a $38 million profit for the first quarter, a dramatic turnaround from the $8 million loss reported for the same period in 2003.

Zinc production rates for Red Dog, the world's largest producer of zinc and Alaska's largest mine, dropped about 10 percent in the first three months of 2004, General Manager Rob Scott said in a telephone interview on April 29.

Lead production, more of a secondary mineral, declined about 6 percent, during the same period.

"We had a slowdown because pipes were restricted, caused by scaling in the pipes," Scott said. "We have quite high dissolved solids in our process water - it's hard water, no different from scaling in your own home's pipes - but it caught us off-guard, because it was a gradual build up."

Employees fixed the problem using a pig that was run through pipes connected to pumping devices. Gravity-fed pipes will be cleaned out using a high-pressure washing technique at the beginning of May, part of work that will be completed during a pre-scheduled twice-yearly plant shutdown.

"We take three days to do general maintenance within the mill, to work on critical areas in the mill that can't be worked on during operation," Scott said. "It's a planned event, two times a year."

Profitable first quarter reported

Red Dog's operator, Teck Cominco, reported a profitable first quarter at the remote mine and mill in Alaska's far northwestern region, part of its company-wide financial report discussed during an investor conference call on April 27. Revenues reported for the first three months were $109 million, a substantial increase over the $83 million in 2003. Teck Cominco reported a $38 million operating profit at Red Dog this quarter, compared to an $8 million operating loss posted in the first three months of 2003.

The first quarter revenue reported for Red Dog actually comes from sales of zinc and lead produced and shipped in late 2003. Red Dog's shipping season is roughly 100 days, starting in July and concluding in early October for the ocean-going barges carrying concentrate.

"With the slipping of production now, it doesn't affect sales for our first quarter," Scott said. "We still have an opportunity to make it up." Zinc concentrate production slipped to 130,000 tons for the first quarter, compared to 144,000 tons in 2003. Lead concentrate production also dropped to 27,000 tons, from the 29,000 tons reported in 2003. The total amount of ore milled at Red Dog during the first quarter was 670,000 tons, versus 804,000 tons in 2003.