Title : Rising nickel price prompts plan to reopen Tasmanian mine
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Rising nickel price prompts plan to reopen Tasmanian mine
The Avebury nickel mine near Zeehan is expected to restart as early as January next year, with hopes it will create more than 200 jobs on Tasmania's west coast.
The Avebury mine has been in care and maintenance since 2009 after a fall in nickel prices, but was bought from MMG Limited by Dundas Mining for $25 million in mid-2017.
Premier Will Hodgman said Dundas planned to begin recruiting for 200 mining, processing and administration jobs immediately, with plans to have the mine back in production by January 2019.
Mr Hodgman has announced the Tasmanian Government will provide a support package of $3.5 million in payroll tax relief to assist the reopening.
"This is our way of showing that the Tasmanian Government backs Tasmanian business," he said.
"We will keep taxes down and input costs down to make Tasmania a more competitive place to do business and that's reflected in the confidence that we're seeing with this exciting announcement today."
Prime Minister Malcolm Turnbull and Mr Hodgman toured the site on Monday morning.
West Coast Mayor Phil Vickers said the mine's restart would bring economic benefits to the west coast, which had been left surprised and worried when the mine went into care and maintenance.
"When it closed nine years ago, there were 238-odd people who lost their jobs, so the announcement that Dundas mining is going to actively work towards a restart is really good," he said.
"It will have a flow-on affect right across north-west Tasmania, if not Tasmania as a whole."
Labor resources spokesman Shane Broad welcomed the announcement, which he said would help drive the revitalisation of Zeehan and be critical for the region.
Mr Broad said plans to reopen the mine coincided with stronger minerals prices and economic conditions.
"The state continues to be at the mercy of global economic conditions and we should not forget that today's low Australian dollar is driving the state's economic resurgence," he said.
'Multi-generational jobs will be created here'
Nickel deposits were discovered at the Avebury site in 1997, with full-scale mining operations beginning in 2006.
Avebury mine chairman Geoff Summers said the price of nickel had doubled since Dundas purchased the mine a year ago, with much of the demand coming from the battery market.
He said most employees of the mine would be permanent but there would also be some contractors.
"There are multi-generational jobs that are going to be created here, which is of huge benefit to this area," Mr Summers said.
"It's a great day for Zeehan, it's a great day for the north-west coast and it's a great day for Tasmania.
"This will be a cornerstone of Tasmania's economy."
Dundas will also produce cobalt and has already pre-sold concentrate from the mine for the next few years.
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