Venture Minerals looks to sell three Tasmanian leases, prompting calls for review of mining laws

A Perth-based mineral exploration company is set to exit Tasmania even after receiving six grants from the state government, prompting calls for a review of mining laws.

Venture Minerals is selling its Riley Creek lease near Tullah. Picture Supplied

A Perth-based mineral exploration company is moving to sell its three Tasmanian mines and exit the state, even after receiving six drilling grants from the state government.

Venture Minerals is selling its subsidiary Venture Iron, which is the holder of the Riley Creek project, to Gold Valley for $3m.

It comes after a review of the iron ore mine – which is located near Tullah and has been on care and maintenance since 2021 – determined that selling it was the best option to maximise value for shareholders.

The Venture Minerals board has resolved to focus more on its rare earth assets, particularly its new discovery at Jupiter in Western Australia. The company is planning to appoint an advisor to run a sale process for its other Tasmanian assets: the Mt Lindsay tin mine and the Mt Livingstone iron ore project.

Venture Minerals managing director Phillippa Leggat said the sale addressed the “financial burden” of maintaining Riley Creek.

Venture Minerals is selling its Riley Creek lease near Tullah. Picture Supplied

“We thank the Tasmanian authorities for working with Venture all these years,” she said.

The Bob Brown Foundation has been critical of Venture Minerals’ decision to sell Riley Creek to Gold Valley Group due to the latter’s perceived financial troubles. Gold Valley Iron went into liquidation in 2020 and the corporate regulator, ASIC, has applied to deregister another company called Gold Valley Exploration.

The Mineral Resources Development Act states that the Resources Minister can only grant an application for a lease if they are satisfied the applicant is “likely to have sufficient financial and technical resources to carry out the mining plan”.

Venture Minerals has received six grants under the government’s Exploration Drilling Grant Initiative, with the latest round of the scheme paying up to $70,000 to mining companies for drilling costs and $20,000 for helicopter support.

Greens MP Tabatha Badger.

Greens mining spokeswoman Tabatha Badger said Venture Minerals’ decision to exit Tasmania was evidence that that the state’s mining laws – which are more than 30 years’ old – and government grant scheme were “no longer fit-for-purpose” and needed to be reviewed.

“An example of the failures of what we’re currently seeing is with Venture Minerals, who have been the beneficiary of up to six grants from the Tasmanian public purse, and yet they’re currently making a windfall profit from the pending transfer of the Riley Creek lease that is set to be signed off by [Resources] Minister [Eric] Abetz in the coming weeks,” she said.

“And we’d absolutely encourage him not to sign off on that and to rethink that sale.”

Energy and Renewables Minister Nick Duigan said the government was “looking to find a way to encourage and promote our productive industries”.

Energy and Renewables Minister Nick Duigan. Picture: Stephanie Dalton

“They’re super important for employment in the regions and we’ll do what we can to back them in,” he said.

Mr Duigan accused the Greens of attempting to hinder the mining sector and wrap it “in red and green tape”.

He would not be drawn on Ms Badger’s call for mining laws to be reviewed.