Ivernia expects to restart Australian lead mine next year


Oct 11 (Reuters) - Canadian base metal miner Ivernia Inc

said it expects to restart operations at its lead minein Western Australia in the second quarter of next year, nearlytwo years after suspending operations on fears of a possibleleak of the toxic metal.

Shares of the company rose 11 percent to 10.5 Canadian centsin morning trading on the Toronto Stock Exchange on Thursday.

Ivernia halted operations at the Magellan mine in April lastyear after lead was found in mud samples taken from shippingcontainers coming from the mine. Its shares have fallen 76percent since then until Wednesday close.

The company had also laid off about 83 percent of theworkforce at the mine, which the company says is the world'slargest lead carbonate mine.

Ivernia now plans to restart operations in stages, with fullproduction targeted by the end of 2013, the company said in astatement on Thursday. It expects to sell lead carbonateconcentrate in the second quarter of next year.

The government of Western Australian approved newtransportation and operating conditions for the mine in July.

The company sold 46,200 tonnes of lead metal in concentrateform in 2010 from the mine, which has seen a number of workstoppages over the years due to environmental concerns.

Fear of lead poisoning has led to many mine closures acrossthe world. Some countries have already restricted the use of thebase metal in paints and cosmetics.

(Reporting by Maneesha Tiwari in Bangalore; Editing by DonSebastian)

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