Sibanye-Stillwater has announced it has exercised the option to acquire Copper Mines of Tasmania Pty Ltd’s Mt Lyell Mine in Tasmania before its expiry date on 5 November 2023.
Sibanye-Stillwater has acquired the option to acquire 100% of Copper Mines of Tasmania Pty Ltd for $10 million from Vedanta Limited, known as the Mt Lyell Transaction. The acquisition was made through the acquisition of New Century Resources Limited, a previously operated underground copper mine with gold by-products.
Sibanye-Stillwater is conducting a feasibility study to re-establish its operation, with the company set to review its options after the study’s completion.
”We identified copper as an essential metal necessary to enable the clean energy transition. Mt Lyell potentially provides a low cost exposure to copper, adding primary production of copper to our current lithium and nickel exposure. We look forward to working with all the local stakeholders including the Tasmanian Government as we consider the potential advancement of this opportunity,” Sibanye-Stillwater CEO Neal Froneman said.
The Tasmanian Government has welcomed the announcement, noting mining and minerals processing are crucial for the Tasmanian economy, generating over 5000 jobs in regional communities and being the largest export product by value.
Premier Jeremy Rockliff said the potential reopening of the Mt Lyell Mine would generate jobs and economic growth in the West Coast region.
“Copper has been identified as one of the essential metals needed in the world’s clean energy transition, of which Tasmania is a world leader by being 100 per cent self-sufficient in renewable electricity,” Premier Rockliff stated.
Minister for Resources Felix Ellis said that the State Government has provided significant support for reopening a mine while the owners have invested in its care and maintenance.
“Our support has included a $9.5 million package to undertake works supporting the recommencement of mining operations as well as a $25 million assistance package to be made available once mining operations recommence,” Minister Ellis stated.
“This package remains on the table for a new owner, subject to appropriate due diligence,” Minister Ellis added.
