Tasmania’s Mt Lyell copper mine is set to be fully acquired by a South African group after almost a decade of lying dormant.
Sibanye-Stillwater will exercise its option to purchase the mine from the current owner, the Indian group Vedanta Resources.
Located near Queenstown on the state’s West Coast, the Mount Lyell mine was established in 1893 and has since produced more than 1.4 million tonnes of copper, 50 tonnes of gold and 1500 tonnes of silver.
However, it has been idle since 2014 when it closed following multiple fatal accidents.
Sibanye-Stillwater is currently conducting a feasibility study to revive the historic underground mine, a positive move that Premier Jeremy Rockliff believes could potentially generate hundreds of new jobs in the West Coast region.
Minister for Resources Felix Ellis said the Tasmanian Liberal Government has provided support over a long period of time to help assist with the re-opening of the mine while the owners invested in care and maintenance.
The Tasmanian government has invested $9.5 million to support the mine’s resumption and has pledged a $25 million assistance package if operations restart.
“This package remains on the table for a new owner, subject to appropriate due diligence,” Ellis said.
According to a 2023 statement from New Century Resources, the mine could be restarted with an investment of $279 million and could produce 555,000 tonnes of copper and 320,000 ounces of gold over a 25-year period.
West Coast Mayor Shane Pitt sees the announcement as positive news for the region, which heavily relies on mining as its main economic driver, as does Shadow Minister for Resources Shane Broad.
“This sale is a crucial step towards the reopening of the mine. The West Coast community stands to benefit greatly from the huge boost that reopening of the mine would create, flowing further through Tasmania’s entire economy,” he said.
“Mining is a key sector in Tasmania’s economy, generating hundreds of jobs and providing essential metals and minerals for our industries.”
He said Labor “look forward” to working with the Government on the legislation as a “matter of urgency”.
