BY ELIZABETH FABRI
DUNDAS Mining will reopen its mothballed Avebury nickel mine with production to resume in January 2019.
The mine, purchased last year from MMG for $25 million, has been on care and maintenance since 2009 amid a downturn in the nickel market.
Resurgent prices over the last 12 months encouraged Dundas to bring the mine back to life.
“When we signed up to buy this place it (the nickel price) was $US7000 a tonne. It’s now $US15,000 a tonne,” Dundas Mining chief executive Geoff Summers told The Advocate.
Tasmanian Premier Will Hodgman said a recruitment process had begun, with more than 200 jobs to be made available across mining, processing, and administration.
He said the State Government was also supporting the reopening by providing a support package that will deliver up to $3.5 million of payroll tax relief.
“This builds upon our previous support for mining on the West Coast, including $9.5 million for essential works at the Mt Lyell copper mine, and $2 million in the 2018-19 Budget for a new Exploration Drilling Grant Initiative to develop new opportunities,” Mr Hodgman said.
“The Tasmanian Government will continue to strongly support our mining sector, as a key part of our plan to generate further economic activity and support local jobs in our regional communities.”
Prime Minister Malcolm Turnbull said in the last year Tasmania’s exports had grown by 26 per cent, and the two biggest goods exported were zinc and aluminium.
“This is a great mining State and this (Avebury) will add nickel to the list of great exports once again from Tasmania,” Mr Turnbull said.