The Tasmanian state government has moved to support the long-term future of one of the state’s largest mines, tabling a bill that will support Grange Resources Ltd. as it transitions Savage River mine into underground operations.
Tasmanian Minister for Business, Industry and Resources, Felix Ellis, said the Grange Resources (Tasmania) Pty Ltd (Alternative Application Period) Bill 2026 was critical to ensuring the long-term future of the Savage River mine, and the hundreds of direct jobs it supports in North West Tasmania.
“The Savage River mine is a crucial part of the Tasmanian community, supporting hundreds of direct jobs and generating an average of AU$19.5 million in royalties per year,” Ellis said.
“Grange has proposed an investment of up to AU$1.2 billion to transition its open cut operation to an underground block cave mining operation.
“This transition will reduce operating costs, lower its carbon footprint, and extend the life of the mine.”
Grange Resources owns and operates Savage River mine, one of Australia’s largest integrated iron ore mining and pellet production business, located in the northwest region of Tasmania.
The magnetite iron ore mine produces some of the highest iron-concentrated magnetite in the country with minimal impurities.
In 2025, Grange Resources unveiled plans to shift the mine’s operations from an open-cut to an underground mine. In its 2025 financial report, Grange said it expects underground financing to materialise in the second quarter of 2026, with mining to commence in July 2026.
The company said the underground operation will deliver a significant reduction in life-of-mine operating costs of around 30 per cent.
Minister Ellis said for Grange to continue producing and exporting a world class product from Tasmania, their financiers required long-term certainty over their lease.
“This Bill has been drafted to enable Grange to apply for an early renewal of its mining leases, which will provide the certainty of their mining lease tenure that lenders to a project of this scale require,” he said.
“This certainty will allow the board of Grange to come to a final investment decision on their development plans.”
