Yesterday the company (CBH) announced it would proceed "unconditionally" with the purchase of Pasminco's zinc, lead and silver mine along with the concentrate ship-loading facility at the port of Newcastle.

CBH expects to "take possession" of the Cobar mine in mid-September.

It will pay Pasminco $2.2 million initially and a further $3.2 million in June 2004.

The company also will lodge an environmental bond of $4.6 million with the NSW Department of Mineral Resources and pay out a $6.6 million lease arrangement on the Newcastle ship-loader.

Managing director Bob Besley said the throughput of the mine would be increased and its life doubled to nine years.

"We expect the Elura operation, including the ship-loading facility to produce more than $1 billion in revenue over the nine-year period," he said.

"This is based on the long-term average zinc price of 45 to 50 US cents per pound and existing exchange rates. There is also potential to extend the mine life beyond nine years through further drilling of adjacent mineralisation."

CBH already has announced agreements with its major shareholders Toho Zinc Company and Clough Engineering to provide $12.5 million in equity finance.

In the past two months they have analysed the Elura mine plan and developed initiatives to "improve efficiency and extend the mine life to nine years".

Last week the NSW Industrial Relations Commission approved CBH's application to have the Elura "consent award" rescinded on the completion of the purchase.

CBH says this will enable it to introduce "improved work practices and efficiencies".