Smiles over restart of nickel mine

PRIME Minister Malcolm Turnbull has wound up a twoday trip to Tasmania’s West Coast with a visit to a mothballed mine outside Zeehan which could return to full production by January.

West Coast Mayor Phil Vickers said Zeehan boomed when the Avebury nickel mine opened in 2007.

But that boom was short lived with the nickel mine closing within its first year of operation with the loss of 230 jobs. Zeehan is now a much quieter place with just one coffee shop and one hotel open yesterday.

“Zeehan may not boom again like it did when Avebury opened, but the news that it will be starting is great and 200 jobs in a small town is a massive thing,” Mr Vickers said.

The mine has been in careand-maintenance mode since 2009, but yesterday Dundas Mining Pty Ltd announced a planned restart of mining operations, with the aim of resuming production from the beginning of next year.

The State Government is supporting the reopening of the mine with up to $3.5 million of payroll tax relief.

Avebury chief executive Geoff Summers said the nickel mined would be used to make batteries and the nickel reserve would last 30 years.

When Avebury shut down nickel prices sat at $7000 a tonne. Today nickel is fetching $15,000, and they nickel to be mined from Avebury has already been pre-sold.

Mr Turnbull, who joined Braddon Liberal candidate Brett Whitley and Premier Will Hodgman to meet locals at the Empire Hotel in Queenstown on Sunday night, said Tasmania’s exports had grown by 26 per cent in the past year with mineral exports leading that growth.

“Mines such as this provide highly paid jobs and the fact that two apprentices are already here on site today shows the opportunities it will bring,” Mr Turnbull said.

Prospective mine workers can apply online from today.

Mr Hodgman said the mine had sat idle for too long and Dundas Mining’s investment showed there was confidence in Tasmania’s mining sector.

Mr Hodgman said the payroll tax relief built upon the Government’s previous support for mining on the West Coast, including $9.5 million for essential works at the Mt Lyell copper mine, and $2 million in the 2018-19 budget for a new Exploration Drilling Grant Initiative to develop new opportunities.

Dundas bought the mine in July 2017 from MMG Ltd for about $25 million.

Opposition spokesman for Resources Shane Broad welcomed the news that the mine would restart.

“I have been in regular contact with Dundas Mining management since coming to Parliament last year and I have expressed Labor’s strong support for the reopening of the mine,” Dr Broad said.

“This will drive the revitalisation of Zeehan and that is critical for the entire West Coast region.

“It should be noted that Avebury closed due to a 70 per cent reduction in global nickel price in 2008 and the decision largely reflects stronger global 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.”