New era for Tasmania’s former Silver City as nickel mine reopens

A regional Tassie town is abuzz as a nickel mine, which will help feed the world’s electric-battery revolution and local families, reopens.

Workers and Zeehan Primary School students at Avebury Nickel Mine

THERE has been a major change of mood in the Tasmanian town of Zeehan.

Like all mining towns, Zeehan, once known as Silver City, has seen boom and bust.

Right now, things are booming again with the reopening of a nickel mine which already employs 150 with another 50 workers to be hired soon.

Construction has started on one of two new workers’ camps and families are being lured to the area.

The owners of the Heemskirk Hotel in Zeehan have already seen a big pick-up in room bookings and meals.

“There is a real sense of hopefulness in the town,” she said.

West Coast Mayor Shane Pitt said some workers would need to drive in and drive out of the region due to a lack of accommodation. But he said some had already come back home to the West Coat to take up jobs at the mine.

“We also expect to see an increase in shops on the west coast as things ramp up. Towns could be filled with food outlets - even boutique breweries,” he said.

There was a similar sense of optimism in the west coast town back in 2006 when the Avebury mine first opened under Allegiance Mining.

But it was short lived.

The mine closed again in 2009 with just a small crew staying on to keep it in good working order for a long, 13-year hiatus.

Resources Minister Felix Ellis talks to Zeehan schoolchildren at Avebury Nickel Mine

Now the nickel project has new owners - Mallee Resources - and Avebury Nickel Mine was officially opened again on Tuesday.

This time around, the good times are expected to last at least two decades with Mallee Resources managing director John Lamb confident even more resources will be found to stretch that out.

Mr Lamb said it had taken a massive community effort to bring the mine back to life after 13 years on care and maintenance.

“This is not just a new life but a re-imagining,” he said at the opening ceremony.

“We will spend $5-8m a year on local services and aim to become the first green nickel mine in Australia and to replace diesel underground machines with electric vehicles.

Tasmanian manufacturer Elphinstone is already working on new electric mining vehicles and Mr Lamb said Mallee Resources would be in talks with the company soon.

Zeehan Primary School choir members at the Avebury Nickel Mine

Nickel concentrate - headed to be made into batteries rather than stainless steel - is building up on the Burnie wharf ready for export.

“It is our vision to be producing the greenest battery grade nickel and cobalt not going into low-grade stainless steel,” Mr Lamb said.

“Mallee Resources is also investigating the potential for downstream processing in Tasmania to produce battery precursor products such as nickel sulphide, hydroxide or even nickel metal,” he said.

“It is therefore essential that the Australian Government adds nickel to the nation’s Critical Minerals List.” Mr Lamb says it was also time to change the perception of mining.

“We are putting our waste back underground. This is a clean operation and a sign of things to come in the industry.”

Resources Minister Felix Ellis said the reopening of Avebury was the latest in a run of good news for the mining sector including the start of work on King Island’s Dolphin tungsten mine, signing of an option agreement between Mt Lyell’s current owner and New Century Resources to acquire the operation, and a record mineral exploration spend and royalties take.