The Western Australian Department of Mines, Industry Regulation and Safety (DMIRS) is reminding mining operators interested in reopening the former Ellendale diamond mine that expressions of interest (EOI) close on 30 November 2018.
Located just 120 kilometres east of Derby, Ellendale formerly produced about half of the world’s highly valuable Fancy Yellow diamonds as well as clear and industrial-quality diamonds (US jeweller Tiffany & Co was previously a major client for the project).
After the mine was closed in 2015, companies were prevented from applying for mining rights in the area until a process to identify a suitable mining company or consortium was undertaken.
The successful applicant will be chosen by Mines and Petroleum Minister, Bill Johnston, after considering the expressions of interest.
Mr Johnston said that new processing and innovative marketing could lead to restarting of production at Ellendale.
“We are looking for a company that will bring fresh eyes and a new approach which will result in a successful restart of mining operations,” he announced.
The Minister stated that there were still materials known to contain diamonds when the former operation closed.
“This is a rare opportunity for a suitably qualified company with the ability to mine diamond ore, process it and then market the diamonds,” Mr Johnston said.
The Minister also said that there were many instances where materials left behind by one mining and processing operation become a source of profit for another company.
“The Government would like the remaining resources at the site to be developed for the economic, social and environmental benefit of the site, the regional community, and the people of Western Australia,” he stated.
The Minister added that a new operator would not automatically be expected to address all the legacy impacts remaining after the abrupt closure of the former mine in 2015, but he expected the new company to approach the area with a sense of responsibility to assist in cleaning up legacy issues left by the former miner at the site.
“We will not be telling a new leaseholder how to do its job of mining, but we want to ensure that the successful company does its work safely for its workers, the community and the environment,” Minister Johnston said.
Submissions for the mine will be evaluated by a panel of experts at the DMIRS before being presented to Mr Johnston. Following this, the Minister is to select the successful candidate after considering all the EOIs.
The State Government has also commented in the past that the reopening of Ellendale mine and the operating phase of the project is set to create numerous jobs for Western Australians. Submissions close on Friday, November 30, and it is expected the successful company will be announced in early 2019.
More information on the Ellendale mine, along with further submission details can be found here.
