The potential new operators of the Mount Lyell copper mine on Tasmania's west coast say rehabilitating the environment will be a priority.
The Queenstown mine has been in care and maintenance for more than five years, after the deaths of three workers in two incidents in 2013 and 2014.
Last year, the mine — which was founded in the 1890s — was put up for sale, but that was delayed due to the pandemic.
Owner Vedanta Resources announced overnight that it had entered into a purchase agreement with Australian metal producer New Century Resources.
Under the agreement, New Century would spend $13 million on exploration and development over the next two years, before deciding whether or not to take over the mine and restart operations.
New Century managing director Pat Walta said he was confident operations at the mine could restart after the two years.
"There's 135 million tonnes of identified resources at Mount Lyell. There's potential for decades-long resource life."
Environmental focus
The effects of mining near Queenstown are in plain sight.
The mountains surrounding the mine and the town have been stripped bare, creating a lunar-like landscape, while the river is tainted red.
Mr Walta said the company was keen to rehabilitate the environment.
"The water contains metals, which is the cause of the pollution, but they are very valuable. We can treat that water and recover those metals … generating value out of that water stream as well.
"We are going to be studying all the options, including a restart study, a tailings reprocessing study, and a water treatment study."
New Century has past experience taking over mothballed mines and bringing them back to life.
In 2017, it acquired the Century zinc mine in Queensland, which was in care and maintenance.
"That mine needed environmental rehabilitation, too, and we've achieved those things in just two years," Mr Walta said.
He said the company would take a similar approach in Queenstown.
'It's something the locals have been wanting'
If the mine's operations restart, it could create up to 300 jobs for the local economy.
West Coast Mayor Shane Pitt said while the region had diversified its economy in recent times, the future of the mine was still integral to the community's success.
"It's been a few years now and it's something the locals have been wanting and waiting for since it went into care and maintenance," he said.
"It will open up further job aspirations in the area."
Copper in demand
Tasmanian Minerals, Manufacturing and Energy Council chief executive Ray Mostogl said demand for copper would increase as Australia aims for net zero by 2050,
"The faster we want to get to net zero the more copper we need," he said.
"Electric cars have much more copper than in the cars we have today. The demand is forecast to increase by 30 per cent between now and 2030.
