Xstrata faces Australian law suit on lead levels

By James Grubel

CANBERRA, April 11 (Reuters) - Mining company Xstrata Plc (XTA.L) is set to face legal action over its Mount Isa operations in Australia that produce around 4 percent of the world's lead, from a young girl suffering lead poisoning, the girl's lawyer said on Friday.

But the case could widen, with reports that health authorities have identified 45 children with dangerously high levels of lead in their blood in Mount Isa, a remote mining town about 1,300 km (800 miles) north west of the Queensland city of Brisbane.

"I think there is an environmental catastrophe in Mount Isa," said lawyer Damian Scattini, who is preparing a case on behalf of 6-year-old Stella Hare.

Xstrata Copper North Queensland chief operating officer Steve de Kruijff said the company was unaware of any legal action, but took the health of its workers and the nearby community "very seriously".

"Xstrata is committed to environmental management and improving its environmental performance in Mount Isa," he said on Friday, adding the company had 15 monitoring stations around Mount Isa.

Xstrata acquired the Mount Isa operations when it purchased MIM Holdings Ltd in 2003. The purchase also included coal and zinc, lead and silver mines.

Scattini told Reuters he was preparing the case against Xstrata and its Mount Isa zinc, copper and silver mining operations on behalf of the parents of Stella Hare, who has high levels of lead, selenium, cadmium and arsenic in her blood.

"She's got about 10 of them (contaminants), any one of which would be cause for alarm," Scattini told Reuters on Friday. "She's having behavioural problems, she's falling behind at school, she's as thin as a rake and won't eat."

The Queensland state health authorities have been testing children in Mount Isa for elevated lead levels in their blood and is due to report its findings next month. But last December, authorities said 45 children had high blood-lead levels.

Xstrata said it had substantially improved emissions from its Mount Isa mine since 2000, and said it was working with local authorities to manage lead levels.

In 2007, lead miner Ivernia Inc (IVW.TO) was forced to shut its Magellan mine in Western Australia state after authorities closed the port of Esperance when thousands of birds in the area were found dead from lead poisoning.

The miner is still awaiting permission to resume shipments from the mine by an alternative route. ($1=A$1.07) (Editing by Jonathan Standing)