Tasmania’s historic Mount Lyell copper mine will reopen near Queenstown, more than a decade after it was shut down following three workplace deaths.
Mining company Sibanye-Stillwater’s board has approved a restart of the mine, which has sat on care and maintenance since 2014.
The South African miner confirmed the decision in its half-year results on overnight, following a feasibility study and internal assurance review.
Sibanye-Stillwater said the operation was expected to create about 300 jobs at full production on the West Coast.
The mine was placed on care and maintenance in 2014 after three workers died in two separate incidents in 2013 and 2014.
Those deaths were the subject of a coronial inquest. The mine first began producing in the 1890s.
The company said 2026 capital spending on the project would be $11 million, covering planning, engineering, permitting, procurement and mobilisation.
According to its half-year results, Sibanye-Stillwater will spend about $US340 million ($520 million) in total restarting the operation.
It said it was targeting first production in early 2029, with project execution to begin in the first half of 2027.
The results said that at full production the copper-gold mine was expected to produce about 26,000 tonnes of copper a year, along with about 16,000 ounces of gold and 116,000 ounces of silver.
Sibanye-Stillwater said the mine would have an initial life of 23 years.
According to the results, its existing shaft and decline extend to 800 metres deep and its permitted tailings facility has enough capacity for the full mine life.
The company gained the asset through its 2023 takeover of New Century Resources, which included an option to buy Copper Mines of Tasmania. It exercised that option in November 2023.
Business, Industry and Resources Minister Felix Ellis said the state government had put up a $9.5 million package to “undertake works necessary to support the re-opening of the mine”.
“We have also worked with the company on the legislative and regulatory framework for the mine, power supply, workforce housing and other practical requirements needed to support a successful restart,” he said.
“Our government has reconfirmed its commitment to $25 million in funding support for the restart, to be delivered through the reimbursement of payroll tax and mining royalties once mining operations recommence.”
Shadow resources minister Shane Broad welcomed the restart, calling it a “major opportunity” for Queenstown and the West Coast.
“It means more people working locally, more money flowing through local businesses and more opportunities for Tasmanians to build a future on the West Coast,” he said.
“The return of mining at Mt Lyell represents a significant vote of confidence in Queenstown, the West Coast and the future of Tasmania.”
Sibanye-Stillwater said the restart relied on existing infrastructure and renewable hydroelectricity to reduce costs and risk.
It said the new mine design drew on lessons from the 2014 suspension, using modern mine planning, refurbished infrastructure and increased automation to support safer operations.
