The issuing of a State mining lease for the Lisheen zinc/lead mine in Co Tipperary was welcomed by the mining partners yesterday as the completion of the regulatory process.

Ivernia West and Minorco Lisheen said that the £165 million project on the largest mine discovery in Europe in 10 years would see an initial force of up to 700 working on the site over two years. Construction work began last month. "In the subsequent mining phase, due to run for over 14 years, up to 300 people will be directly employed.

"It is expected that the Lisheen project will represent at annual £35 million injection into the local and national economy in terms of wages, goods and services," the companies stated. In granting the lease, the Minister for the Marine and Natural Resources, Dr Woods, said the 30year term involved was a mark of confidence that further significant reserves would be discovered. He said that, combined with the Tara and Galmoy mines, the output from Lisheen would place Ireland among the world's largest producers of zinc and lead concentrates.

About £40 million would be spent on procurement in Ireland during the construction phase, he added. Apart from the first five-year concessionary period, the State will benefit from royalties on Lisheen minerals, payable at a rate of 4.5 per cent of revenues and expected to amount to about £35 million over the mine's lifetime.