World lead prices could be about to sent even lower with the imminent restarting of shipments from a West Australian mine that supplies 3% of global output.
Lead prices have followed zinc prices lower in the past month or so as economies in the US and Europe slowed.
Lead prices fell 5%, or around $US135, to $US2540 a tonne, the lowest level in five months, on the Magellan news.
The Western Australian Government's environmental watchdog has recommended lead concentrate from Ivernia's WA mine be allowed to be shipped through the port of Fremantle.
Ivernia is a Canadian group and its subsidiary, Magellan Metals is the company at the centre of the lead contamination problems in the southern WA city of Esperance crisis.
Magellan had applied to the Environmental Protection Agency (EPA) to export the lead from its Wiluna mine through Fremantle.
The company was stopped from shipping the product through Esperance earlier this year after if was discovered lead dust was escaping into the town and leading to high lead blood levels among parts of the population, including some children. Birds and other wildlife were found dead from apparent lead poisoning as well.
The EPA gave its in principle go ahead for the export through Fremantle, subject to environmental conditions.
EPA Chairman Paul Vogel said management of lead emissions at the mine site, along the transport route and at Fremantle was the main concern.
"The Port of Fremantle is currently the only container terminal in Western Australia capable of handling the volume and proposed method of transport of lead carbonate," Ivernia quoted the EPA in a statement on its website.
EPA Chairman Paul Vogel said that the management of fugitive lead emissions, at the minesite, along the transport route and at the Port of Fremantle was the main issue assessed by the EPA.
"The lead concentrate is to be sealed in United Nations and State Government approved bulk bags and loaded into shipping containers, which are then closed with a steel bolt until arrival overseas," Dr Vogel said.
"An accredited, independent, inspector will ensure that there is no fugitive lead dust on the outside surfaces of both the bulk bags and the shipping containers prior to leaving the minesite.
"Magellan carried out a risk analysis for the handling and transport of lead carbonate concentrate from the mine to the Port of Fremantle that shows that after risk reduction measures are put in place all risks are ranked in the low to moderate risk categories.
"An Emergency Response Plan has been developed that sets out the procedures to be followed in the event of an accident during transport or loading of the lead carbonate concentrate from the mine site to the Port of Fremantle.
"The objective of the plan is the immediate containment of any release of concentrate and a quick and complete clean up. The document has been produced in consultation with the Fire and Emergency Services of Western Australia.
"An accredited, independent, inspector will ensure that there is no fugitive lead dust on the outside surfaces of both the bulk bags and the shipping containers prior to leaving the mine site."
The EPA report will be sent to Environment Minister David Templeman, who will make the final decision on the proposal.
Fremantle mayor Peter Tagliaferri said the shipments would greatly increase the amount of hazardous cargo going through the port.
"This intensifies the risk profile significantly, it's too big a risk to take," Mr Tagliaferri said.
The lead would be sealed in bulk bags and loaded into shipping containers, while an independent inspector would check whether lead dust was escaping from bags as they left Magellan's mine in Wiluna.
Mr Tagliaferri said the town of Fremantle had not been consulted about an Emergency Response Plan flagged by the EPA.
Conservation Council of WA director Chris Tallentire said Magellan had a shocking history with lead exports and should not be allowed to export the product at all.
"The EPA doesn't take a look at the bigger picture, doesn't take a look at cumulative impacts, doesn't look at the history of companies like Magellan," Mr Tallentire told AAP."
