New GM says Avebury should be in production again by September

After a rocky start, a mine on Tasmania’s West Coast is ramping up to production and anticipates a full workforce of 180 – all of them local. FULL DETAILS >>

• ‘200 jobs in a small town is a massive thing’
• New hope for West Coast mine jobs

AFTER a slow start, Avebury Nickel has its permits in order ready to start producing ore from its Zeehan mine later this year and shipping it to overseas customers.

Dundas Mining bought the Avebury Mine in 2017 for $25m and first forecast it would be producing ore again – and employing many locals – in January, 2019.

But work to get the mine operating stalled due to a stoush over rates with the West Coast Council under former director Geoff Summers.

Tasmanian Premier Will Hodgman, Avebury Nickel Mine CEO Geoff Summers, Prime Minister Malcolm Turnbull, Liberal Braddon candidate Brett Whiteley at the announcement of the reopening of the Avebury Nickel Mine at Zeehan in 2018. PICTURE CHRIS KIDD

Mr Summers has since left the company and West Coast Mayor Phil Vickers said an “agreement” had been reached with Avebury Nickel over settling the more than $1m debt.

Avebury Nickel’s new general manager Dale Burgess said there were now 24 workers on site with a total of 180 full-time workers needed after the company ramps up to production in the third quarter of this year.

“There was some bad press about the mine at the beginning but we have a robust business case now and have jumped significant regulatory hurdles,” Mr Burgess said.

“We have council approval and Environmental Protection Authority approval and our mining plan has been accepted.”

The news last year that the mine had been sold and would re-open and create 200 jobs was hailed in the region.

Zeehan boomed when the Avebury nickel mine opened in 2007.

But that boom was short lived.

“I am in town now and Zeehan is looking a little sad. Let’s hope we can turn that around.” Mr Burgess said.

“We want our workforce to live on the west coast or maybe drive in from Burnie and other nearby centres.

Angas Zinc Mine in Strathalbyn outside of Adelaide. Dale Burgess working in the mine.

“The council has been gracious and co-operative and we have agreed to a payment structure. We want to be good corporate citizens and contribute to the community. It will be an owner-operated mine with no fly-in fly-out workers.”

Former prime minister Malcolm Turnbull and Premier Will Hodgman met at the site in July, 2018 to talk up its prospects and the granting of a payroll tax holiday worth $3.5 million if it again became an operating mine.

“The company is spending about $500,000 a month on the site and has appointed its leadership group.

“The board is also talking to three or four offtake customers,” he said. “It is likely the nickel will go to a smelter in China, Canada or South Africa.”

The mine is expected to produce 7000 tonne of pure nickel per annum when it is in full production.

‘Nickel is the flavour of the month and worth US$16,000 a tonne – almost double what it was when the mine closed,” Mr Burgess.