Reopening of a historic mine
Tasmania's Mount Lyell copper mine near Queenstown is set to reopen, more than a decade after it was shut down. Mining company Sibanye-Stillwater has secured board approval to resume operations, according to announcements reported by ABC Australia and Pulse Tasmania.
The mine, which first began producing in the 1890s, had been on care and maintenance since 2014. The shutdown followed the deaths of three workers in two separate incidents in 2013 and 2014, as well as a rockfall that damaged underground infrastructure. Those deaths were the subject of a coronial inquest.
Sibanye-Stillwater confirmed the restart decision in its half-year results, after a feasibility study and internal assurance review, as reported by Pulse Tasmania. The company expects to create about 300 jobs at full production.
Investment and timeline
According to the company's half-year results, Sibanye-Stillwater will spend about US$340 million (A$520 million) in total restarting the operation. A capital investment of about $490 million is required before production begins, as reported by ABC Australia.
In 2026, the company plans to spend $11 million on planning, engineering, permitting, procurement and mobilisation. Project execution is set to begin in the first half of 2027, with first production targeted for early 2029.
At full production, the mine is expected to produce about 26,000 tonnes of copper, 16,000 ounces of gold and 116,000 ounces of silver annually, according to both outlets. The mine is expected to have an initial life of 23 years.
The existing shaft and decline extend to 800 metres deep, and the permitted tailings facility has enough capacity for the full mine life, according to the company's results as reported by Pulse Tasmania.
Ownership and acquisition
Sibanye-Stillwater gained the asset through its 2023 takeover of New Century Resources, which included an option to buy Copper Mines of Tasmania, the mine's previous operator. The company exercised that option in November 2023, as reported by Pulse Tasmania.
The new mine design draws on lessons from the 2014 suspension, using modern mine planning, refurbished infrastructure and increased automation. The restart also relies on existing infrastructure and renewable hydroelectricity to reduce costs and risk, according to both outlets.
Local and political reaction
West Coast Council Mayor Shane Pitt called the reopening "fantastic news" for the community, saying that "before its closure in 2014, Mt Lyell was the beating heart of Queenstown, and its reopening will breathe new life into our region," as reported by ABC Australia.
Tasmanian Labor said the project would create "flow-on benefits" for local contractors, accommodation providers, hospitality businesses and retailers, according to ABC Australia.
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," as reported by Pulse Tasmania. The state government has also reconfirmed its commitment to $25 million in funding support for the restart.
Shadow resources minister Shane Broad welcomed the restart, calling it a "major opportunity" and saying the return of mining at Mt Lyell represents a "significant vote of confidence" in Queenstown, the West Coast and Tasmania's future, as reported by Pulse Tasmania.
Environmental considerations
The lower King and Queen rivers remain heavily affected by historic mining and are "essentially lifeless" due to acidity and high metal concentrations, according to a 2021 statement from the Federal Department of Climate Change, Energy, the Environment and Water cited by ABC Australia.
Sibanye-Stillwater has stated that it will meet environmental, rehabilitation and closure obligations under applicable regulations. The company said the mine would utilise increased automation and have clearly defined future and environmental closure responsibilities, as reported by ABC Australia.