Ore price slump blamed for the closure of the Avebury Nickel Mine on the West Coast

Having been in receivership and on the hunt for a new owner since September, the life support for the embattled Avebury Nickel Mine has been turned off. Why it closed.

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

The Avebury Nickel Mine will be closing down with more than 200 jobs to go with it.

The mine at Zeehan was placed into administration in September before going into receivership after owner Mallee Resources could not pay its debts.

It was hoped a new owner would take over the mine, but the receivers of Mallee Resources said a slump in nickel prices due to increased supply from Indonesia meant it had to close.

Receiver Scott Langdon said the oversupply meant that the higher costs of Australian ore made nickel mines here, such as Avebury, uncompetitive.

“As a number of other Australian miners have recently experienced, without a structural change in the market to properly value low carbon, battery-grade nickel, local mine operations will continue to be disadvantaged compared to their competitors,” Mr Langdon said.

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

“It is disappointing that despite interest from global participants, current market conditions have presented challenges to finding the right path for a sale at this point in time.

“These external factors left us with no other choice than transitioning to a Care and Maintenance program for Avebury.

“We thank the Avebury workforce for their hard work and support throughout the receivership.”

Mr Langdon said it was finalising the plan for the transition to care and maintenance for the Avebury Nickel Mine and would be communicating with stakeholders and employees over the coming days.

Australian Workers Union (AWU) acting Tasmanian Branch secretary Robert Flanagan said employees at the mine had been “blindsided” by the decision.

“After the purchase of new gear to improve efficiency on site, the expectations had been that a buyer would be found to continue operations,” Mr Flanagan said.

“The collapse in the global nickel price has been the key factor here and it is devastating for the workers at the Avebury mine, all of whom left secure employment to take on roles at the mine.

“These workers expected jobs at the Avebury mine would be secure, long-term roles.”

Mr Flanagan said the AWU met with members at the mine to identify potential concerns and provide assistance.

“The AWU has had preliminary discussions with the receiver last night, and those discussions will continue.

“A considerable concern for the workforce is the payment they will receive at terminations given most have only been on site for a period of one or two years.”

West Coast Mayor Shane Pitt. Picture: Linda Higginson

West Coast Mayor Shane Pitt said he was concerned about the closure.

“This is a devastating blow for the West Coast,” Mr Pitt said.

“These hard-working West Coasters had a job yesterday but not today, and that’s a massive financial and emotional whack to every worker and their families.

“This is going to have an impact for weeks, months and years ahead for Avebury workers, and our wider region.

“On top of the continuing uncertainty about salmon farming in Macquarie Harbour, our community is now under immense stress.”

Labor Resources spokesperson Shane Broad also said the mine closure was a big blow.

“The closure of the Avebury Mine is devastating for the West Coast, the 200 impacted workers and their families who are now left without a job and an income,” Dr Broad said.

“The last thing the region needed was for this mine to shut, especially when the economy is already struggling and many Tasmanian families are doing it tough with the cost of living crisis.

“Labor would like to see other mines take on as many of these impacted workers as possible to help soften what will be a big blow.”