Spend $246 Million To Expand Australia Zinc

To boost George Fisher mine's output by nearly 30 percent.

Production rate to rise to 4.5 million tones.

To reduce mine life by five years to 21 years.

Miner Xstrata, the world's biggest integrated zinc producer, will spend A$274 million ($246 million) to boost output at its George Fisher mine in Australia by nearly 30 percent by 2013.

In a statement on Friday it had got approvals from the state government of Queensland to proceed with the expansion of the mine at the group's Mt. Isa operations.

"George Fisher Mine contains one of the largest zinc reserves in the world and the expansion project enables us to further tap its significant resource potential."

The expansion will increase the annual production rate to 4.5 million tonnes from 3.5 million tones.

"While the increased production rate will reduce the life of mine by five years to 21 years, the orebody remains open at depth to the north of the mine."

Xstrata has increased reserves at the operation by 126 percent to 76 million tonnes from 33 million tonnes when it acquired it in 2003.