Low zinc prices and poor production levels are being blamed for heavy losses last year at Arcon, the mining group which operates the Galmoy lead-zinc mine in Co Kilkenny. Arcon is 44 per cent-owned by Sir Anthony O'Reilly and his family interest, and his son, Mr Tony O'Reilly, is chairman.

Losses last year totalled €10.4 million, a substantial increase on the €1.6 million in 1999. At the operating level, Arcon moved from a 1999 profit of €4.3 million to a 2000 loss of €1.47 million. An increase in interest charges was the main factor turning this operating loss into the pre-tax loss of €10.4 million. Net debt at end-2000 was €87.4 million, an increase of €10 million from the end of 1999.

Mr O'Reilly attributed the increased losses to lower zinc prices, poor production levels, repair and maintenance costs and a €1.27 million provision against foreign exploration investments.