Labor’s Shane Broad has backed the state government’s $9.5 million spend at Mt Lyell to lift the chances of a copper production re-start.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
“This is clearly work that needs to be done and Labor backs the projects that are on the table,” new Braddon MHA Dr Broad said.
“We couldn’t have a situation where we allowed the mine to reach the point of no return.
“With ongoing supply disruptions at two of the world's largest copper mines in South America and a positive outlook on copper prices, now is a good time to get the mine ready for operation.”
Asked whether governments should simply let market forces decide whether businesses survived, Dr Broad said it was often not that simple.
“If this mine gets going, it creates a lot of employment on the West Coast and also service industries, and royalties that come back to the state,” he said.
“This could be seen as an investment rather than a handout.”
Dr Broad said governments should always exercise caution, make sure investments stacked up and be held to account if projects did not go ahead.
“I think this one does stack up,” Dr Broad said.
“I welcome the investment in new technology that will produce a better grade of ore and improve the cost profile of the mine.”
He said West Coast residents would want to hear a guarantee the Queenstown mine would open again.
“That’s the economic boost the region is hoping for,” Dr Broad said.
“It would be good for the government to clarify under what copper price/production scenarios Vedanta would guarantee re-opening the mine.
“The West Coast would welcome greater certainty.”
He said supporting the West Coast economy was a priority for Labor.
“We have positive policies to support the mining sector and tourism opportunities,” he said.
“It’s critical that we encourage new economic opportunities while supporting traditional sectors like mining at the same time.
“The West Coast is too important to play politics with, Labor backs the announcement and we’ll continue to work towards the re-opening of the mine in government after the next election.”