Some 40 workers at the Galmoy zinc and lead mine in Co Kilkenny will cease working overtime and refuse to answer call-outs from today after they failed to reach an agreement over a pay dispute with the mine's owner, Swedish group Lundin Mining.

The workers concerned are mainly mechanics and electricians and are members of the Technical, Engineering and Electrical Union.

In a similar dispute with some 100 members of trade union Siptu, the two sides have agreed to go to the labour court and both groups last week submitted their respective motions. A recommendation is expected by July 5th. These are mainly miners and mill operators.

In total, some 220 people are employed at the mine, which has an annual production of some 70,000 tonnes of zinc and 19,000 tonnes of lead.

Toronto and Stockholm-listed Lundin acquired the Galmoy mine in March 2005 through the purchase of Arcon International Resources.

Last year sales from the mine rose 75 per cent as the group benefited from higher metal prices. However, in April this year the company said that production at the mine fell 40 per cent in the first quarter, citing the ongoing pay dispute and a temporary closure of the mine following a fatal accident.

Lundin also announced yesterday that it had further extended the expiry date for its offer to acquire all of the issued shares and warrants of Rio Narcea Gold Mines to 6 pm on June 29th.