CMT’s Mount Lyell mine to be given a new lease of life

1610
Image credit: CMT's facebook page

The Hodgman Liberal Government has announced a $25 million assistance package to Copper Mines of Tasmania (CMT) to ensure that the company’s Mount Lyell mine – one of the country’s oldest and most important mines – is in a position to reopen when copper price improves.

Image credit: CMT's facebook page
Image credit: CMT’s facebook page

The Mt Lyell copper mine, which was placed under care and maintenance following the deaths of three workers in December 2013, has produced more than 1.8 million tonnes of copper to date.

The assistance package – to be granted only if the mine does reopen – is in the form of a grant to reimburse CMT for payroll tax and royalties and would be paid over a five-year period from the recommencement of operations.

“CMT and its parent company, Vedanta, have said this package will give Mt Lyell the best possible chance of reopening,” Minister for resources Paul Harris said in a media statement.

Adertisement

“While, unfortunately, the immediate outlook is not positive due to low copper prices, there has been a strong commitment by CMT and Vedanta to reopening the mine.”

He said the mine was now backed by proven financial and technical feasibility studies, and was ready to reopen at the first sign of sustainable improvement in the copper market.

“A reopened Mt Lyell is expected to employ about 135 full-time equivalent workers, with more than 50 contractors also engaged in the operation,” Mr Harris concluded.