HC Deb 09 June 1988 vol 134 cc635-6W
Mr. Harris

To ask the Chancellor of the Duchy of Lancaster, if he will make a statement on the current position of the Rio Tinto Zinc Corporation plc tin mining operations in Cornwall.

Mr. Kenneth Clarke

[pursant to his answer, 22 March 1988.]: The loan of £15 million offered in 1986 to Carnon Consolidated Ltd., then a subsidiary of RTZ Corporation plc, is repayable in the years 1996–2001. The loan of £10 million offered this year to Carnon Holdings Ltd., (the new parent company of Carnon Consolidated Ltd.) replaces guarantees of £10 million commercial loans under the 1986 offer. This loan is repayable from 1993 onwards. Both loans are interest-free and both are linked to capital expenditure. Repayments of both loans are related to the after-tax profits of the preceding year above a minimum level. There are provisions for repayments to be waived if profits are insufficient.