THE nation's first new bauxite mine in 35 years has been heralded a beacon in a dark year for the Tasmanian mining industry.
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Civil work started at the Bald Hill mine near Campbell Town yesterday, spawning an estimated 45 direct and 135 indirect jobs for the Northern Midlands, and potentially leading to a $150 million output a year within 18 months.
The mine is one of three bauxite projects potentially operating in Northern Tasmania within the next two years, with Australian Bauxite Ltd chairman Paul Lennon - the former Tasmanian Labor premier - confident of further mineral exploration.
Mr Lennon said operations at Bald Hill would start on January 5 with the first shipment due out of Bell Bay by the end of March.
"The price for bauxite is strong and that's what's given us as a board the confidence to invest $10million here in Tasmania to open up bauxite mining," Mr Lennon said.
The Bald Hill opening comes after a tough year for mining in Tasmania - particularly in the state's West and North-West - with a number of projects stalled and jobs lost amid price downturns and environmental legal battles.
Resources Minister Paul Harriss said the opening of Bald Hill represented the optimism and buoyancy of the industry.
"You talk about all the bad news - there's a lot of exploration under way in Tasmania as we speak," Mr Harriss said.
"The mining industry by nature is an optimistic industry.
"This [mine opening] is just a culmination of those positive things coming together."
Mr Lennon said the company hoped to have bauxite mines near Fingal and Westbury approved within two years, with a view to produce bauxite in Northern Tasmania for up to a decade, and potentially longer if more deposits could be found.
Most bauxite is converted into alumina, which forms the basis for aluminium.