TARA Mines said yesterday it would definitely be interested in acquiring Bula's ore body, if and when it comes on the market. Tara's own mining operation is beside the land, which was the subject of Ireland's longest running legal battle and it, would extend Tara's mining life.
That battle ended on Thursday with the High Court throwing out all claims made by Bula Ltd directors, Mr Michael Wymes and Mr Richard Woods, and admonishing, Mr Wymes for taking the court action in the first place.
The directors of Bula Ltd, which is in receivership, had claimed that" the Minister for Energy and Tara Mines Ltd were responsible for the failure to bring the neighbouring Bula lead and zinc mine at Nevinstown, Co Meath into production.
Tara's managing director, Mr, Charlie Byrne, told The Irish Times yesterday that the company would be interested in buying the land and mining it. He said there had been various estimates of how much reserves were there. One estimated put it at 8 million tonnes.
Tara is mines about 2.5 million tonnes of lead/zinc each year and has 10-12 years of mining life left.
Acquiring the disputed ore body would add a further three to four years to the mine, he said.
If there is no appeal against this week's High Court decision and other court actions are dropped, it appears that the receiver, Mr Laurence Crowley, will proceed to find a buyer for the assets, which of course, is the ore body.
However, Bula Ltd is taking legal action against Mr Crowley, several banks and an engineering company. Mr Crowley was unavailable for comment yesterday.
Ironically, Mr Wymes previously, turned down a £25 million offer by Tara for the mine, plus indemnity against the debts, which were in excess of £15 million. In fact the whole dispute had its roots in attempts by both parties to buy the orebody.
Mr Byrne stressed yesterday that anything could still happen and the possibility of purchasing the ore body could still be a long time away.
An independent operation could still buy the body, but would face much higher start up costs.
Mr Byrne said Tara was delighted" at the High Court decision, "but it, doesn't actually change a whole lot, because the ore body is still under receivership".
Costs in the case which lasted for 286 days in court, over almost 10 years, will be determined by the High Court on Wednesday. Estimates have ranged from £3 million to £6 million. Several sources said yesterday, costs could be closer to £5 million to £6 million.
Tara Mines said last night it expected to be awarded its costs.
The State is a 49 per cent shareholder in Bula Ltd and paid £9.5 million for a share in the mine. Last night a spokesman for the Department of Transport, Energy and Communications, said the Department is reviewing the implications of the court decision and is in contact with its legal advisers. However, it said it was awaiting the outcome of the full proceedings.
Mr Wymes could not be contacted for comment yesterday, nor could his fellow director who took the action, Mr Wood, a farmer from County Cork, who the judge said had been effectively brainwashed by Mr Wymes.
