A company involved in the sale of lead and zinc at the Galmoy mine in Co Kilkenny achieved a five-fold increase in pre-tax profits in 2006 to €42.7 million.

Recently filed accounts for Galmoy Mines, a subsidiary of quoted company Lundin Mining, also show that Sir Anthony O'Reilly was last year released from a €7.9 million guarantee in relation to bank bonds issued "in respect of obligations to the Minister for Communications, Marine and Natural Resources and to Kilkenny County Council".

Bonds totalling €11.9 million were issued to the minister and the council, secured on Sir Anthony's guarantee and "restricted cash deposits" of €3.8 million.

Galmoy Mines last year increased its restricted cash deposits by €8.5 million and Sir Anthony was released from his guarantee, which could have remained until 2008.

Galmoy was previously owned by Arcon Resources, a former listed company that was controlled by Sir Anthony and his family. It was subsequently acquired by Lundin Mining, which is listed in Toronto, New York and Stockholm.

The profits increase reflects a sharp increase in the value of lead and zinc on world markets in 2006. Galmoy's accounts show that the gross value of metal sold in 2006 rose to €145.4 million from €82.7 million a year earlier.

Smelting charges and other deductions rose by 76.4 per cent to €50.3 million. This left the company with turnover of €95 million, up from €54.2 million in 2005.

The Galmoy mine paid no tax in either 2005 and 2006. The accounts say that Galmoy carried forward "mining tax losses and unutilised capital allowances" of about €102 million in 2006, down from €131 million in the previous year.