New hope for West Coast mine jobs with possible sale and reopening of Avebury nickel mine

THE mothballed Avebury nickel project near Zeehan may have a new owner increasing hopes 200 new jobs will be injected into Tasmania’s downcast mining sector.

The entrance to the Avebury nickel mine near Zeehan on the West Coast.

THE mothballed Avebury nickel project near Zeehan may have a new owner increasing hopes 200 new jobs will be injected into Tasmania’s downcast mining sector and buoy a region rocked by mine closures.

Avebury owner MMG, which also operates the Rosebery mine, has entered into a $25 million share sale agreement with privately owned Tasmanian company Dundas Mining.

The new deal comes after the mine’s sale to Avebury Nickel Mines Limited fell through last year when the prospective buyer could not secure the funds.

It dashed hopes it would again be a working proposition after seven years on care and maintenance.

West Coast Mayor Phil Vickers said the community had its fingers crossed this deal was a “goer” and the mine would again inject money into Zeehan and the rest of the state.

The latest deal comes as Henty gold mine, which closed at the end of 2015 leaving a workforce of 150 out of a job, continues to ramp up its workforce ready for a restart in production later this year.

“The Avebury news combined with Henty getting busy fixing its mill and hiring in line for production to restart is just great,” Cr Vickers said.,

It is understood the new agreement with Dundas Mining is backed by a Chinese trader in Sydney.

Tasmanian Minerals and Energy Council CEO Wayne Bould said the news was “absolutely welcome” for the industry, miners looking for work and Tasmania.

The mining industry is also waiting to hear if Mt Lyell, which was closed following the deaths of three workers, will reopen when copper prices improve.

The Avebury nickel mine has been on care and maintenance for the past seven years.

MMG Limited said its share sale agreement with Dundas Mining involved a deposit of $1.5 million payable on signing and $23.5 million payable on completion.

The Avebury mine has been on care and maintenance since 2009.

Following an internal review, MMG started an expression of interest process for the asset.

The sale is subject to a number of conditions precedent including MMG Board approval but is expected by the end of the year.

MMG general manager Australian operations Rick Watsford said the company believed the offer represented the best outcome for both MMG and the Avebury asset.

“Dundas Mining is committed to a restart of the mine and MMG is confident that the sale will reinvigorate the Zeehan area, by providing new jobs and economic benefit to the region,” Mr Watsford said.

Avebury was developed by Allegiance Mining at a cost of about $1 billion and opened in 2006.