Sibanye-Stillwater, a prominent mining firm, has received the necessary approval from its board to initiate operations at the Mt Lyell copper mine, located near Queenstown on Tasmania’s western coast.
For over a century, the Mt Lyell mine served as a vital economic asset for the local community until it was put into care and maintenance in 2014, following the tragic fatalities of three workers and damage from a rockfall that affected its underground infrastructure.
The company, which acquired the mine from Copper Mines of Tasmania in 2023, is optimistic about starting production by early 2029. This initiative is expected to generate more than 300 job opportunities.
Mayor Shane Pitt of the West Coast Council expressed his enthusiasm for the news, stating that the reopening of Mt Lyell would rejuvenate the region, which had relied heavily on the mine prior to its closure. He emphasized the importance of a collaborative relationship with Sibanye-Stillwater moving forward.
The Tasmanian Labor party also highlighted that the resumption of operations would not only create direct employment but would also have positive ripple effects for local businesses, including contractors and hospitality services. A spokesperson noted that the mine is an integral part of Queenstown’s identity and its revival would significantly benefit the broader west coast economy and beyond.
According to a recent company report, initial preparatory work at the Mt Lyell site is slated to begin early next year, with production expected to kick off in early 2029. This process will require a capital investment of approximately $490 million.
Sibanye-Stillwater plans to extract around 26,000 metric tonnes of copper, 16,000 troy ounces of gold, and 116,000 troy ounces of silver annually from the mine, with the expectation that operations could continue for an additional 23 years.
The company has stated that the mine will utilize hydropower and adhere to a footprint that respects existing and previously disturbed areas. It will implement advanced automation and address future environmental responsibilities as part of its operational strategy.
Environmental concerns stemming from previous mining practices have been significant, with the Federal Department of Climate Change, Energy, the Environment, and Water reporting in 2021 that the adjacent lower King and Queen rivers remain severely impacted, effectively rendering them lifeless due to acidity and elevated metal levels. The surrounding hills have also suffered from deforestation linked to toxic emissions from smelting activities.
Sibanye-Stillwater has committed to fulfilling its environmental, rehabilitation, and closure obligations as mandated by relevant regulations, stating that it is exploring solutions such as mine-water treatment and progressive rehabilitation to mitigate the environmental impacts of the mine’s operations.
