The long-dormant Mt Lyell copper and gold mine is closer to a restart than it has been in a decade, with a feasibility study for the project already complete.
Federal Resources Minister Madeleine King confirmed that the feasibility study for reopening the mine is complete, with a definitive board decision expected later this year.
The mine, located near Queenstown on Tasmania’s West Coast, has been under care and maintenance since 2014 following tragic safety incidents.
However, the outlook for the site has shifted since.
Minister King noted that the underground infrastructure is now in “very good shape” after extensive remediation work, and the current global market for copper and gold has made the project an increasingly attractive prospect.
Sibanye-Stillwater obtained the option to acquire 100 per cent of Copper Mines of Tasmania through its acquisition of New Century Resources in 2021, and has since exercised that option.
Mt Lyell has a 79.4 million tonnes mineral resource containing 1.6 billion pounds of copper and 500,000 ounces of gold across various underground and open pit deposits.
King said there have been favourable developments in favour of an opening such as the high demand for copper and deepened geological knowledge of the mine since its closure.
Sibanye-Stillwater must still weigh the Tasmanian project against other global investments before their board gives the final green light.
“I did express my wish to Sibanye-Stillwater that we resolve this as soon as possible,” Minister King said in an interview with ABC Radio.
While she could not provide a specific month for the decision, she emphasised that the local team is “putting their best foot forward” to secure the necessary approval.
Safety remains a paramount concern for both the government and the operator. The Minister acknowledged the mine’s difficult history, stating that the company has invested heavily in site improvements to ensure modern safety standards are met.
“People have died, and that is entirely unacceptable in a mining context. People deserve to come home after their shift or their swing. So, they have worked at that. They’ve got plans for the site, but they do have to make sure they get that board approval.”
