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

By Emily Smith

Topic:Mining and Metals Industry

Mt Lyell copper mine has been in care and maintenance for more than a decade. (Supplied: Sibanye-Stillwater)

In short:

Mining company Sibanye-Stillwater has received board approval to restart the Mt Lyell copper mine near Queenstown on Tasmania's west coast.

The mine was an economic driver for the region for more than a century, until it entered care and maintenance in 2014, following the deaths of three workers.

What's next?

The mining company hopes it can commence production in early 2029.

A South African company plans to restart the historic Mt Lyell copper mine on Tasmania's west coast, creating more than 300 jobs.

The mine near Queenstown was a cornerstone of the region's economy for more than a century.

But it entered care and maintenance in 2014, after three workers were killed within six weeks, and a rockfall damaged underground infrastructure.

A coroner investigating three deaths within six weeks at the Copper Mines of Tasmania mine says two of them could have been avoided if basic safety principles had been observed.

The mine had been operated by Copper Mines of Tasmania before it was acquired by mining company Sibanye-Stillwater in 2023.

Today Sibanye-Stillwater has announced it has secured board approval to resume operations.

"We are very pleased and proud to announce we are moving forward with the project," Mt Lyell general manager Clint Mayes told media this morning.

'Beating heart of Queenstown'

Tasmanian Resources Minister Felix Ellis said the state government had provided $9.5 million for early works at the site, and would provide a $25 million package once it reopened.

He became emotional when discussing the planned restart today, saying he had been a plumber on the west coast at the time the mine went into care and maintenance and saw how hard it was on locals.

"We are looking forward to welcoming them back."

The West Coast Council Mayor Shane Pitt said it was "fantastic news" for the entire community.

"The west coast backs those who back us, and I look forward to a long and rewarding partnership with Sibanye Stillwater."

The mine has been described as the "beating heart" of Queenstown. (ABC: Selina Bryan)

Tasmanian Labor said along with the 300 jobs, it would create "flow-on benefits for local contractors, accommodation providers, hospitality businesses and retailers".

"Mt Lyell is part of the fabric of Queenstown, and its restart will provide a major boost for the broader west coast economy, with benefits felt across the state," a spokesperson said.

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Production to restart in 2029

According to a company report published yesterday, work at the project is scheduled to begin early next year, before production commences in early 2029.

This will first require capital investment of around $490 million, which Mr Mayes said would fund upgrades such as a brand new processing plant, refurbishment of the existing shaft, and improvements to ventilation, power, water and pumping.

The company plans to mine 26,000 metric tonnes of copper, 16,000 troy ounces of gold and 116,000 troy ounces of silver from the site each year.

It believes the mine can operate for another 23 years.

It is hoped reopening the mine will result in 300 new jobs. (ABC News: David Hudspeth)

Asked whether the decision to restart was driven by rising copper prices, Mr Mayes said it was "a nice sweetener", but was more based on long-term demand forecasts.

"There's a big future in copper. Every electrical component, everything to do renewable resources or EVs, fridges, freezers all need transmission lines, all need [some form of] copper.

"We believe copper is the metal of the future."

He said he always believed the mine would reopen.

'Safety the focus' for revitalised mine

Worker safety has long been a concern at Mt Lyell.

In 2013, 25-year-old Alistair Lucas and 45-year-old Craig Gleeson died after falling about 20 metres down a shaft.

Alistair Lucas (L) and Craig Gleeson, who died in a mining accident on December 10, 2013. (Supplied)

Only six weeks later, 53-year-old Michael Welsh died in a "mud rush incident", which is when mud suddenly flows from underground openings.

Mr Mayes said "mud rush" was the biggest risk to workers and the company would use automation to make conditions safer moving forward.

Queenstown miner Michael Welsh who was killed underground at Mount Lyell copper mine in Tasmania. (Facebook)

"The big ticket for us is the introduction of automotive technology," he said.

"So tele-remotes. So actually removing the person out from the draw points where mining is occurring.

Sibanye-Stillwater said the mine would be powered by hydropower, would cover the mine's "existing and previously disturbed footprint", would utilise "increased automation" and would have clearly defined future and environmental closure responsibilities.

The environmental impacts of the mine, under previous ownership, have come under scrutiny for years.

According to the Federal Department of Climate Change, Energy, the Environment and Water in 2021, the nearby lower King and Queen rivers remain heavily affected by historic mining practices.

It said they were now "essentially lifeless", due to acidity and high metal concentrations.

The surrounding hills have been stripped bare of vegetation, partly due to toxic fumes from smelting.

"Sibanye-Stillwater will be responsible for meeting environmental, rehabilitation, and closure obligations that arise from both the restart and future operations, in accordance with applicable regulations," the company states on it website.

"The group is currently evaluating opportunities such as mine-water treatment and reuse, progressive rehabilitation, and the engineered placement of potentially acid-forming material in suitable existing mining voids."

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