Dundas set to restart operations at mothballed Avebury nickel mine on Tasmania’s West Coast

UPDATED: PM Malcolm Turnbull has wound up a two-day trip to Tasmania with a visit to a mothballed mine outside Zeehan which is due to resume production in January.

Positive signs of reopening the Avebury nickel mine at Zeehan on Tasmania’s West Coast. Picture: CHRIS KIDD

UPDATED: PRIME Minister Malcolm Turnbull has wound up a two-day trip to Tasmania with a visit to a mothballed mine outside Zeehan which is due to resume production in January.

West Coast Mayor Phil Vickers said Zeehan boomed when the Avebury nickel mine opened in 2007. But the boom was short lived, with the mine closing within its first year of operation with the loss of 230 jobs.

Zeehan is now a much quieter place, with just one coffee shop and one hotel open today.

Tasmanian Premier Will Hodgman, Avebury nickel mine CEO Geoff Summers, Prime Minister Malcolm Turnbull, and Liberal candidate for Braddon Brett Whiteley at the announcement of the reopening of the Zeehan mine. Picture: CHRIS KIDD

“Zeehan may not boom again like it did when Avebury opened but the news that it will be starting is great and 200 jobs in a small town is a massive thing,” Mr Vickers said.

The mine has been in care-and-maintenance mode since 2009, but owner Dundas Mining Pty Ltd today announced a planned restart of operations with the aim of resuming production in early 2019.

The State Government is supporting the reopening of the Avebury mine by providing a support package to deliver up to $3.5 million in payroll tax relief.

Avebury CEO Geoff Summers said the nickel mine would be used to make batteries and the nickel reserve could last 30 years.

When Avebury shut down nickel prices sat at $7000 a tonne. Today nickel is fetching $15,000 a tonne and the concentrate produced has been pre-sold.

Mr Turnbull — who also joined Braddon Liberal candidate Brett Whiteley and Premier Will Hodgman to meet locals at the Empire Hotel in Queesntown on Sunday night — said Tasmania’s exports had grown by 26 per cent in the past year, with mineral exports leading that growth.

The Braddon by-election is about who can deliver for the people of North West and West Tasmania.

Brett Whiteley has a strong record and if elected will be able to deliver even more for Braddon.#politas #auspol #whiteleydelivers #PlanforBraddon pic.twitter.com/TQdDG0nEFO

— Tasmanian Liberals (@TasLiberal) July 7, 2018

On 7XS in Queenstown with PM @TurnbullMalcolm @brettwhiteley60 and @brooksy4braddon talking mining, tourism and jobs on the West Coast pic.twitter.com/4Oiq5BkrPG

— Will Hodgman MP (@WillHodgman) July 8, 2018

“Mines such as this provide highly-paid jobs and the fact that two apprentices are already here on site today shows the opportunities it will bring,” Mr Turnbull said.

Prospective mine employees can apply online from today.

Mr Hodgman said the Avebury mine had sat idle for too long and Dundas Mining’s investment showed there was confidence in Tasmania’s mining sector.

The Premier said the payroll tax relief built upon the Government’s previous support for mining on the West Coast including: $9.5 million for essential works at the Mt Lyell copper mine; and $2 million in the 2018-19 Budget for a new Exploration Drilling Grant Initiative to develop new opportunities.

PM @TurnbullMalcolm and Premier @WillHodgman at the Avebury Mine on the #Braddon campaign. State Gov giving $3.5m in tax relief to help restart the mine. #politas #auspol @7NewsTasmania pic.twitter.com/mVCXZQl73d

— Sean McComish (@spmccomish) July 9, 2018

Dundas bought the mothballed mine in July 2017 from MMG Limited for about $25 million.

Opposition resources spokesman Shane Broad welcomed the Avebury restart plan.

“It is great news for the West Coast and particularly for Zeehan to see a timetable for the Avebury nickel mine to come out of care and maintenance and return to full operations,” Dr Broad said.

“I have been in regular contact with Dundas Mining management since coming to Parliament last year and I have expressed Labor’s strong support for the reopening of the mine.

“This will drive the revitalisation of Zeehan and that is critical for the entire West Coast region.

“It should be noted that Avebury closed due to a 70 per cent reduction in global nickel price in 2008 and the decision largely reflects stronger global minerals prices and economic conditions.

“The state continues to be at the mercy of global economic conditions and we should not forget that today’s low Australian dollar is driving the state’s economic resurgence.”

Avebury nickel mine CEO Geoff Summers at the mine site at Zeehan. Picture: CHRIS KIDD

EARLIER: ZEEHAN’S Avebury Nickel Mine could be back in operation as early as January next year, with the promise of at least 200 new jobs.

The mine has been in care-and-maintenance mode since 2009, but today Dundas Mining Pty Ltd announced a planned restart of mining operations with the aim of resuming production from the beginning of 2019.

Prime Minister Malcolm Turnbull and Tasmanian Premier Will Hodgman are on a roadtrip in the region as part of the Liberals continuing campaign to wrest the federal seat of Braddon back from Labor and the upcoming by-election.

MORE: KEAY IN TROUBLE IN BRADDON, SAYS NEW POLL

The State Government is supporting the reopening of the Avebury mine by providing a support package which will deliver up to $3.5 million of payroll tax relief.

Heralding a massive employment boost for the resource-rich region, Mr Hodgman said Dundas had advised that recruitment would begin immediately for more than 200 jobs in mining, processing and administration.

The Avebury Mine on the Trial Harbour road near Zeehan.

“This builds upon our previous support for mining on the West Coast, including $9.5 million for essential works at the Mt Lyell copper mine, and $2 million in the 2018-19 Budget for a new Exploration Drilling Grant Initiative to develop new opportunities,” he said.

Dundas bought the mothballed mine in July 2017 from MMG Limited for about $25 million and said at the time that it was keen to get the mine up and running as soon as possible.

MORE: NEW HOPE FOR WEST COAST MINE

But it was a long road to get to that point. The agreement was first mooted in 2016 and believed to be backed by a Chinese trader from Sydney.

Premier Hodgman said the mining sector was a pillar of Tasmania’s economy, “responsible for 55 per cent of our exports and supporting thousands of jobs in regional communities”.

He said the Tasmanian Government would continue to support the mining sector, as a key part of its plan to generate further economic activity and support local jobs in regional communities.