Averbury Nickel Mine to Restart Operations After Nine Years

SEATTLE (Scrap Monster): The long-dormant Averbury Nickel Mine near Zeehan in Tasmania, Australia is all set to restart mining operations. The owner of the mine, Dundas Mining Pty Ltd., announced that the mine operations are expected to restart as early as January 2019. It must be noted that the mine has been in care and maintenance since 2009.

The announcement regarding restart of operations comes after almost a year since Dundas Mining purchased the mine from Rosebury Mine operator MMG Limited for nearly $25 million in mid-2017. This coincided with the visit of the Prime Minister Malcolm Turnbull along with Premier Will Hodgman. Mr. Turnbull noted that Tasmania has emerged as a great mining state with mineral exports surging over 26% during the past year. Hodgman noted that it is good news for Tasmania business community that the facility that had been sitting idle too long will now have life injected back to it. He also declared a payroll tax relief support package of $3.5 million to assist the reopening.

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The restart is expected to generate around 200 jobs in the region. The company plans to begin recruitment process for mining, processing and administration jobs immediately. Most of the employees of the mine would be permanent, but the company plans to employ a few contractors s well. It must be noted that the mine had employed around 238 employees at the time of its closure in 2009.

Labor resources spokesman Shane Broad welcomed the decision to restart the mine, saying that it would help drive the revitalization of Zeehan. According to him, stronger mineral prices and economic conditions have influenced the restart decision. Incidentally, the nickel prices have more than doubled when compared with the prices when MMG Limited had signed up to buy the mine. The increased demand from EV battery market is expected to keep nickel prices buoyant in the medium term.