Avebury Nickel mine owner on Tasmania’s West Coast goes into administration

The owner of Avebury Nickel Mine has been placed in administration. But what does it mean for the mine?

Miners working underground at the Avebury Nickel Mine. Picture: Supplied

Tasmania’s Resources Minister says it’s business as usual at Avebury Nickel Mine, despite the mine’s owner being placed into administration.

Mallee Resources went into administration over unpaid debts.

Resources Minister Felix Ellis said he was confident the mine would bounce back.

“Obviously as their general manager has said today, the administration does not affect the operation of the mine, workers continue to go to work, the gates are open, they continue producing ore, suppliers are getting paid and critical projects are continuing,” Mr Ellis said.

“Obviously administration a process that’s outlined in the corporations act and the shareholders and others and the administrator will work through those matters

“As a government we are committed to backing in the West Coast, we see major new mines reopening including the Avebury Nickel mine..this mine and the West Coast has a bright future.”

Question time in the Tasmanian Parliament, Felix Ellis MP. Picture: Chris Kidd

Mr Ellis said the state government had offered Mallee Resources payroll tax relief, subject to conditions, to support the mine.

“The shareholders in a vote declined that offer,” he said.

Shadow Resources Minister Shane Broad blamed a lack of state government support for the mine owner’s predicament.

“When the Avebury first reopened in 2018, the Liberal Government promised up to $3.5m in payroll tax relief to get the mine started. But true to form for this government, they failed to deliver on this promise,” Dr Broad said.

“The Liberals have also deliberately held back a cash bond worth more than $1m through Aurora Energy, which if provided would offer much needed capital to keep the mine going.

“With 200 jobs at significant risk, the appointment of administrators at Avebury is a massive kick in the teeth for the West Coast.

“What’s even harder to swallow is that it could have been avoided if the Premier stepped up and delivered what his government had promised.”

Mallee reopened Avebury in November last year after it lay dormant for 13 years.

However the mine’s solvency was threatened after shareholders of Mallee Resources voted down a takeover bid last month by the company’s biggest shareholder, Hartree Partners.

Mallee owes Hartree $31m, most of which, $25m, was provided at the end of June as an incremental loan.