The state government will spend $9.5 million on Mt Lyell improvements as optimism grows about a resumption of production at the veteran Queenstown copper mine.
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Premier Will Hodgman said the money would allow mine operator Copper Mines of Tasmania to undertake projects essential for the re-start of operations and could potentially bring forward a restart by more than six months.
“These projects will commence almost immediately and create more than 50-60 new jobs at the mine in the construction phase and, importantly, will move us closer to the re-start of mining operations, which in the longer term would be expected to create up to 300 jobs,’’ Mr Hodgman said.
``The government has worked closely with CMT throughout the period of the mine’s closure to facilitate the re-start of the mine at the earliest possible stage.
“Supporting mining in Tasmania and delivering jobs in the North-West and West Coast of Tasmania is extremely important to the Liberal government and today’s announcement is in addition to the $25 million financial assistance package announced in late 2015 to facilitate the re-opening of the mine.
“We will continue to work closely with CMT and the mining industry to bring about the re-opening of the mine.”
Resources Minister Guy Barnett said CMT’s recent announcement it was reviewing re-start plans on the back of improved metal prices meant now was the perfect time for the government to take decisive action to help bring about the re-start.
Mr Barnett said the $9.5 million from the government would support four projects which were all essential to the re-start.
They were:
- Decline refurbishment and preparation ($4.5 million);
- North Lyell Tunnel rehabilitation to manage water flows into the mine, leading to better operational and environmental outcomes ($1.5 million);
- West Queen water supply pipeline, replacing a 100-year-old pipeline ($2 million); and
- infrastructure associated with the upgrade of the crushing mill ($1.5 million).
“Re-starting the mine would be a great outcome for employment in the region, but also for the environment,” Mr Barnett said.
“An operational mine delivers the best environmental outcome for the state, and allows legacy environmental issues to be better addressed.”
“We support the mining industry in Tasmania in the strongest possible terms and we want to see the mine back up and running to create up to 300 direct and 750 indirect jobs for the region.”
The government said CMT (a subsidiary of international miner Vedanta Resurces) was also investing heavily in the future of the mine.
CMT had spent more than $100 million keeping the mine in care and maintenance and committed $80-$100 million to future new works to facilitate a potential re-start.
The mine has been on care and maintenance since 2014, following a production halt after three mine deaths in two incidents and the revamping of mining plans.
Vedanta has been waiting for copper prices to improve before re-opening Mt Lyell.
“In working towards the restart of the mine, safety is of the highest importance,” Mr Barnett said.
“CMT advises that there is a key focus on safety in its review into re-starting operations.
“As part of its review into re-starting the mine, CMT are investigating the redevelopment of the processing plant and ore handling circuit, with the possibility of employing electric driven trucks to bring ore to the surface.
“This is an innovative approach which would make the Mt Lyell mine the first fully electrified underground mining operation in Tasmania.”
