Photo by: Bloomberg
PERTH (miningweekly.com) – The Tasmanian government will invest some A$9.5-million to restart the Mt Lyell copper mine, which was shuttered at the start of 2014.
Premier Will Hodgman said that the investment will allow project owner Copper Mines of Tasmania (CMT) to undertake a range of projects essential for the restart 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 to 60 new jobs at the mine in the construction phase, and importantly will move us closer to the restart of mining operations, which in the longer term would be expected to create up to 300 jobs,” Hodgman said.
Resources Minister Guy Barnett said that CMT’s recent announcement that it is reviewing restart plans on the back of improved metal prices means that now is the perfect time for the Government to take decisive action to help bring about the restart.
The A$9.5-million government investment will support four key projects at the mine, including decline refurbishment and preparation, valued at around A$4.5-million, rehabilitation of the North Lyell tunnel rehabilitation, worth some A$1.5-million and replacing the West Queen water supply pipeline at a cost of around A$2-million.
Infrastructure associated with the upgrade of the crushing mill will also cost some A$1.5-million to complete.
Vedanta Zinc International and CMT CEO Deshnee Naidoo said that the government’s investment would allow a restart decision much sooner, and would make it more likely, as well as providing substantial community and environmental benefits.
The decision to restart operations at Mt Lyell could require a capital investment of between A$80-million and A$100-million, Naidoo revealed.
Since mining operations ceased in January 2014, CMT and its parent company Vedanta has invested around A$100-million in the project to develop new block cave mining methods, environmental projects, and on exploration and rehabilitation at the project area.
“As part of its review into restarting 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,” Barnett said.