By Leia Michele Toovey- Exclusive to Lead Investing News

^[1]Australia's carbon tax program may force miners into bankruptcy.

Nyrstar ^[2], the countries largest zinc and lead miner issued a response to the governments proposed taxation scheme.  Chief Operating Officer Greg McMillan said modeling prepared for the company showed that the taxation would cost the company $70 million a year, assuming a carbon price of $40 a tonne. "That would completely wipe out profits from our Australian operations," McMillan added.

Nyrstar would not qualify for special government assistance to become more energy efficient because its carbon emissions were currently below a proposed threshold for emissions-intensive industries.  If the taxation scheme goes ahead as proposed McMillan said his company would have to consider closing its smelters at Port Pirie, in South Australia, and Hobart, which together generated more than $2 billion a year  in revenue and employed 3250 people directly and indirectly. McMillan urged the Government to change its compensation formula, predicting the industry would otherwise be forced offshore to countries with lower environmental standards.

Sun Metals, a company that operates a zinc refinery in Townsville shared Nyrstar's concern. Sun Metals chief executive S.B. Lee said, "It depends on how much the price of power increases, but it could threaten the future of our operations in Australia." He added the industry was also taking a battering because of falling commodity prices.

Nyrstar's warning that its smelters in Tasmania and South Australia states would become unprofitable increased pressure on the government to stall its plan until a global agreement is reached on a carbon tax price. McMillan stated, "The world's demand for zinc and lead is not going to decline if our smelters shut down; that supply will be taken up by other operations in parts of the world that don't have the same price for carbon as an impost on production." "Most likely, that will happen in China or India where they have less stringent environmental regulations and you will actually produce more tons of CO2 per ton of zinc," he said.

 Lundin Mining Corp. (TSX:LUN) reported Thursday a US$199-million loss as the metals miner took $201.1 million in pretax write downs, reversing a year-before profit of $76.6 million. The Toronto-based company also announced it is suspending zinc production at two Portuguese mines in response to plunging commodity prices. The loss amounted to 51 cents per share, compared with earnings of 20 cents per share in the year-earlier period.Net earnings before the impairment charges and related taxes were $2.1 million, the company said. Sales in the quarter declined to $191.9 million from $292.8 million. Metal production for the year was in line or ahead of expectation. Copper production increased by eight per cent to 24,433 tonnes compared to the same quarter in 2007 and zinc production increased by 23 per cent to 44,605 tonnes. However, losses came as zinc, lead and nickel ^[3] prices were down 45 per cent, 38 per cent and 37 per cent.

Arehada China ^[4] is suffering from operational losses as current zinc and lead prices have made the mine and zinc plant unprofitable.  Accordingly, operations are being suspended to prevent losses. The Company believes that the majority of other similar mines in the Inner Mongolia Autonomous Region have also shut down operations due to low commodity prices. The zinc plant and mine infrastructure are being prepared for the orderly suspension of all activities; staff at the zinc plant and mine is being reduced to a level that will meet care and maintenance requirements.

Canadian Zinc Corporation ^[5] (TSX:CZN) announces its financial results for the quarter ended September 30, 2008. As at September 30, 2008, Canadian Zinc had cash, cash equivalents and short term investments of $24.2 million and a positive working capital balance of $23.9 million. Accordingly, the Company believes that it remains in a strong position to further continue its planned exploration, development and permitting activities of the Prairie Creek Mine. The Company's principal focus is its efforts to advance the Prairie Creek Mine, a zinc/lead/silver property located in the Northwest Territories of Canada, towards production. The Prairie Creek Mine is partially developed with an existing 1,000 tonne per day mill and related infrastructure.