Tasmania's Mount Lyell copper mine to reopen in boost for west coast

A South African mining company has announced plans to restart the historic Mt Lyell copper mine on Tasmania’s west coast, marking a significant step toward reviving the economic fortunes of the small town of Queenstown. The mine, which has been dormant since entering care and maintenance in 2014, is set to resume operations following approval from the company’s board. The decision comes amid growing global demand for copper, particularly in sectors such as renewable energy and electric vehicles. The mine, located near Queenstown, played a central role in the region’s economy for over a century. It was previously operated by Copper Mines of Tasmania before being acquired by Sibanye-Stillwater in 2023. The decision to restart operations follows a period of uncertainty and hardship for the local community, which suffered greatly when the mine closed. In 2014, three workers lost their lives within six weeks due to accidents, including a fatal rockfall that damaged critical infrastructure. These incidents led to the mine’s shutdown and raised concerns about worker safety. General Manager Clint Mayes of Mt Lyell expressed optimism about the mine’s return, stating it was “a long time coming.” He emphasized the importance of the mine to the region, calling it the “beating heart” of Queenstown. The mine’s revival is expected to bring more than 300 jobs to the area, offering a substantial economic boost to the region. The Tasmanian government has already allocated $9.5 million for initial works and pledged a further $25 million upon the mine’s reopening. Resources Minister Felix Ellis, who spoke emotionally about his personal connection to the area, highlighted the significance of the mine to many Tasmanians living abroad. Local leaders have welcomed the announcement. Mayor Shane Pitt of the West Coast Council called the news “fantastic,” noting that the mine was once the lifeblood of Queenstown. He praised the partnership with Sibanye-Stillwater, expressing confidence in the future of the region. The mine’s reopening is anticipated to generate flow-on benefits for local businesses, including contractors, accommodation providers, and hospitality services. According to a recent company report, preparations for the mine’s restart are set to begin early next year, with full production expected to commence in early 2029. The project requires an initial investment of approximately $490 million, which will be used to upgrade facilities, including the installation of a new processing plant, refurbishment of the existing shaft, and enhancements to ventilation, power, water, and pumping systems. The mine aims to extract 26,000 metric tonnes of copper, 16,000 troy ounces of gold, and 116,000 troy ounces of silver annually, with potential operations extending for up to 23 years. Mayes acknowledged that while rising copper prices contributed to the decision, the primary driver was long-term demand projections. He noted the increasing reliance on copper for technologies ranging from electric vehicles to household appliances, emphasizing its essential role in modern infrastructure. He reiterated his belief that the mine should have reopened sooner, citing the vast reserves still available beneath the surface. Worker safety remains a top priority for the company. Past incidents, including two tragic deaths in 2013, underscored the risks associated with mining activities. Mayes confirmed that the “mud rush” phenomenon poses the greatest danger and that automation will play a key role in improving working conditions. The mine’s renewed operation will incorporate advanced safety measures to prevent similar tragedies from occurring.