Hi,

My guess is that it is catching up with the rest of the country especially WA. And considering rental yeilds are over 7% + i think it has a very long way to go!
People i talk to find it hard to beleive the rental returns.But their is not much left to rent and with the expansion of the mines and 600 new employees + families its only going to get worse. This is my opinion only and anyone should do thier due diligence.

This is an article which i saw back in august.

Last Update: Thursday, August 3, 2006. 8:00am (AEST)
Xstrata hopes the investment will give output at Mt Isa a massive boost.

Xstrata hopes the investment will give output at Mt Isa a massive boost. (ABC )

Xstrata plans $160m Mt Isa mining expansion

Swiss mining giant Xstrata has revealed plans to turn its Mt Isa operations in north-west Queensland into the world’s third largest zinc mine.

In its interim profit report, Xstrata Zinc has announced a new $160 million project which will boost production by 60 per cent within two years.

The company says this year’s production of 5.5 million tonnes will rise to 8 million by 2008 – an increase in north-west zinc output of 165 per cent since 2003.

General manager Fred White says boosted production is being matched by expanded reserves.

“In 2004, reserves for the zinc side of the business sat at 48 million tonne,” he said.

“Since then we’ve increased those by bringing Black Star open-cut online and, with further drilling around Black Star and out at George Fisher Mine, we’ve managed to lift those reserves to 81 million tonne now.”

he first project entails the innovative use of second-hand equipment, sourced from Xstrata Zinc’s George Fisher mine and overseas at a cost of less than US$5 million, to increase existing throughput capacity by some 30% to 6.5 million tonnes per annum in the final quarter of 2006.

The second project focuses on a major revamp and expansion of the zinc-lead concentrator at Mount Isa, at a capital cost of some US$120 million, which will increase throughput to 8 million tonnes per annum by the second half of 2008 – 60% above current capacity. The project comprises the installation of a new semi autogenous grinding (SAG) mill, ball mills and flotation circuit, enabling Xstrata Zinc to replace the existing ‘Heavy Medium Plant’, as well as the obsolete rod and ball grinding circuit. The project is expected to be completed in the first half of 2008.

Ore production from the George Fisher and the Black Star mines will increase substantially in the second half of 2006, with ore production from the Black Star Stage 3 East and North sections scheduled for early 2007, to provide sufficient feed for the enlarged capacity of the concentrator from the fourth quarter. In 2006, production from these two mines is estimated to reach approximately 5.5 million tonnes, almost 40% above 2005 production levels. A major drilling programme is underway at both mines to continue the progress made in extending ore reserves to support the current and future expansion potential of the Mount Isa zinc-lead operations. Reserves increased at Black Star and George Fisher from 48 million tonnes in 2004 to 66 million tonnes in 2005, with current total reserves of 81 million tonnes confirmed, as follows:
George Fisher 48.8 Mt @ 8.6% zinc, 4.9% lead and 100g/t silver
Black Star 32.3 Mt @ 5.1% zinc, 3.2% lead and 61g/t silver
Total 81.1 Mt @ 7.2% zinc, 4.2% lead and 84g/t silver

These figures are expected to increase materially as the current drilling programme progresses.

Commenting, Xstrata Zinc Chief Executive Santiago Zaldumbide said: “The projects we announce today build upon the excellent progress made in improving the operating efficiency and long-term viability of our zinc-lead business at Mount Isa. This rapid and capital efficient expansion of our zinc concentrate capacity, together with the extension of the zinc reserves, will reduce costs and significantly enhance earnings from the end of this year, while adding to the long-term value of our business. I am particularly pleased that despite ongoing shortages and price increases for equipment and materials, Xstrata Zinc has been able to secure an additional 1.5 million tonnes of capacity within an accelerated timeframe and at exceptionally low capital cost through the highly innovative adaptation of second hand equipment and our existing process technology expertise.

“Together, these two projects will increase zinc-lead ore throughput to 8 million tonnes per annum by the second half of 2008, approximately 5 million tonnes, or 165%, above the throughput achieved in 2003 when Xstrata took stewardship of the operation. Critically, these expansions will also improve the competitive position of Xstrata Zinc by doubling the proportion of the Group’s concentrate requirements met from our own sources. By 2008, Mount Isa will be the world’s third largest zinc mine, producing some 800,000 tonnes of zinc concentrate, which is around two-thirds of our global zinc smelter requirements.”
Dom[biggrin]

Hi reelygood1,

Could you tell me how many bedrooms the property has .Thats $280.00 rent each side of duplex thats a good rental return.

Dom

Ps. still trying to buy their.[biggrin]

Hi Ravtown,

Thanks for the update on the town ,i lived and worked in the mine about 10 years ago . So i knew a bit about the area . Being a city boy i could not live their for long but i did enjoy my time working in the mine. It opened my eyes up!.

I will be taking a trip soon (next 2 weeks ) to check out a property i have their and the local.

Dom

Hello,

Is anyone here buying or sniffing oout in Mount Isa?

Dom [biggrin]

Don,

You must be really busy. I have a 3*3 bedroom duplex i bought about 3 years ago for $135,000.The current rent is $220 each side up originally from $120 when i first bought them.( valued @ $300,000)
I have made an offer on a block of units and awaiting reply.
Don do you buy land and build and onsell or do you have a mixture? Is this a full time job for you?
Pm me if you want to keep details private.

Dom [biggrin]

Hi everyone,

Just catching up on what is happening in the ISA , it seems that the rental situation is very tight and an average 2 bedroom unit is attracting around $220-$240 per week. Lately i have been fowlloing some of the sales and they are still climbing and many properties dont stay on the market long.Rental returns seem to jump up every couple of months and some houses are renting at $1000 a week.( so the agent tells me. I have seen four sets of blok units sell whithin a week.

I have been informed that the mine is looking for imigrants to fill positions .
Since watching the sixty minute segment on western australia it sems that the rescourse boom may go on for years.
I have one property which is doing quiet well in the Isa and i have made an offer on a second.Hope to make millions.

Dom
[oneeyed]

Hi Stuart ,

Thanks for your input much appreciated. I am excited and nervous to enter into a buisness but i cant wait.
But this does all take time to find and set up the right buiness.
You say the last two purchases, do you have more then one buisness?

Dom [biggrin]

Thanks reallygood1,

Seems that their is a large housing shortage. Prices should continue rising, but i dont think they could get as high as places like Emerald. But then again its hard to predict these things.( i see Cloncurry is Going a bit silly to)

Dom [biggrin]

Hi again,

Was talking to an RE in ingham who claims that mining companies are looking at mining gold behind the ranges. This would boost the town dramatically if it was true.Will do due dilligence on this one but this might be inevitable.(quote Matrix)

Dom [biggrin]

Just of the point i have been watching of all places Ingham, because land was vvery cheap started $15000 and plenty of movable houses but unfortunatly time and prices have started to move up quickly. Not sure why. I dont mind travelling if this would be my full time job.I have noticed though other places are selling positively geared properties. So mayby it might be better to have a few of these for an income. Any Opinions?

Dom[biggrin]