Rich pickings as mining industry ramps up

These are golden days for exploration and processing

TASMANIA’S mining industry is on the up, with multimillion-dollar plans by Hellyer Gold Mines to capitalise on the reopening of its West Coast mine.

Hellyer project manager NQ Minerals plans to reprocess up to $1.5 billion in gold and $1 billion in zinc from previously discarded materials by next month, thereby creating up to 50 ongoing jobs.

Mining and mineral processing is an industry we often take for granted. It’s been an industrial fixture of the West Coast community for generations, but we should never forget this sector makes up more than half our state’s exports and supports thousands of jobs.

Production from our resources sector is up 45 per cent to almost $3 billion over the past year.

The reopening of the Hellyer project is strong evidence of an industry thriving with its tail up and making money. Exports have increased by 40 per cent to more than $2 billion a year.

The company, which holds the Hellyer Mill and tailings facility, has started producing concentrate and expects to produce commercial quantities by the end of this month.

NQ Minerals has advised they’ve met their time frame and budget and this is due to the exceptional skills of its North-West workforce. Other reprocessing will include silver and lead. The company has committed to giving Tasmanians preference for jobs where possible.

Mining companies employ more than 4000 people, or almost double employment levels of three years ago.

In the 12 months to the end of July last year, mining and mineral processing represented over half the state’s net export value. The industry also contributes significantly, through service provision and the supply chain, to regional economies.

There are 10 major mines in the state and six major mineral processing facilities. Over the three years 2017 to 2020 the mining sector will contribute almost $110 million in royalties to taxpayers. That’s money we can redirect to police, hospitals and schools.

The Hodgman Liberal Government is providing almost $10 million to the Mt Lyell Copper Mine for works associated with resuming operations.

We are providing $3.5 million in payroll tax relief for the Avebury Mine restart which is expected to begin operations in January, creating more than 200 jobs in mining, processing and administration.

The Rogetta Mine, south of Burnie, was recently granted approval for a $100 million iron ore mine, creating more than 200 jobs during construction and up to 100 permanent when operational.

Grange Resources’ Savage River operation is adding 54 jobs while investing $10 million in stage one of a feasibility study to investigate accessing the ore body through underground mining.

This is a growth industry that is investing and exploring with confidence.

The Government is delivering certainty and ensuring there are no more lock-ups. Mineral exploration in Tasmania was $6.6 million in the June quarter this year, representing 43.5 per cent more than last year. The yearto-year increase nationally was 28.9 per cent. That’s a huge expression of faith in our mineral resource potential.

The Government is backing more mineral exploration with $2 million in grants which provide 50 per cent of drilling costs on successful programs.

With a consistently low value dollar, Tasmanian exports are at record levels. Mining is the bedrock of resource development, exporting a near-record $3.68 billion in goods last financial year. This is a 29.2 per cent growth on the previous year, showing we are well on our way to meeting our target of a 50 per cent increase in new mining ventures over five years.