THE TARA lead and zinc mine near Navan, Co Meath paid a €97 million dividend to its Swedish parent group Boliden in 2007 following strong growth in profitability.

Accounts just lodged with the companies office here show that Tara Mines Holdings Ltd posted a profit last year of €197 million, compared to €175 million in 2006.

This was in spite of a drop in global zinc prices in 2007. Turnover from the mine rose by 4.7 per cent to €333 million.

Tara opened in 1977 and is one of the biggest lead and zinc mines in Europe. Along with Galmoy in Kilkenny and Lisheen in Tipperary, it produces about 40 per cent of all zinc mined in Europe.

The directors' report stated that the mine's life should be extended by a couple of years until 2017. "The short-term future of the mine, with a current buoyant market, is positive," it added.

As a result of its bumper year, Tara paid €55 million in corporation tax to the Irish exchequer last year, up from €44 million in 2006.

Its accumulated profits were boosted to €113 million from €72 million a year earlier.

Tara's financial statements show that its total employee costs rose by €4.2 million in spite of a decline in its workforce of 13, to 665. The total remuneration paid to workers last year was €52 million, up from €47.8 million in 2006. Directors' remuneration rose to €420,000 from €372,000.

Tara's pension scheme cost the company €5.8 million in payments during the year and showed a deficit of €13.3 million at the end of December 2007.

Tara's accounts detail a legal spat between a subsidiary relating to pension enhancements negotiated by the subsidiary with its "active" workforce in 1999.

The claim was rejected by the High Court, but is being appealed to the Supreme Court. It could potentially cost Boliden €7.5 million.

The directors said they are confident the group has "no liability".

Just more than €4 million was spent on exploration costs at the mine during the year, up 24 per cent on the previous 12 months.