Sibanye-Stillwater is a step closer to reopening the historic Mt Lyell copper and gold mine in Tasmania following the completion of a comprehensive feasibility study.
The mine is located in Queenstown on Tasmania’s west coast, with a legacy that dates back to 1894.
Federal Resources Minister Madeleine King recently confirmed the milestone, noting that Sibanye-Stillwater’s board is expected to make a final decision on the project later this year.
If approved, the decision would bring the underground operation back online after it was placed on care and maintenance in 2014.
King highlighted the progress made at the site, stating that the underground infrastructure is now in excellent condition following significant investment by Sibanye-Stillwater to improve safety standards.
“The thing about this mine and what is very clear from speaking to Sibanye-Stillwater is there is a lot in its favour on the reopening,” she said.
King pointed to positive copper and gold prices, a strong market and relationships with the West Coast Council and the Tasmanian Government as key drivers of the project.
Mt Lyell boasts a 79.4-million-tonne mineral resource containing 1.6 billion pounds of copper and half a million ounces of gold. Sibanye-Stillwater secured the option to acquire 100 per cent of Copper Mines of Tasmania through its acquisition of New Century Resources in 2021, and has since exercised that option.
Sibanye-Stillwater chief executive officer Neal Froneman emphasised the strategic importance of the asset for the company’s green energy portfolio.
“We identified copper as an essential metal necessary to enable the clean energy transition,” Froneman said.
“Mt Lyell potentially provides a low-cost exposure to copper, adding primary production of copper to our current lithium and nickel exposure. We look forward to working with all the local stakeholders, including the Tasmanian Government, as we consider the potential advancement of this project.”
While a specific timeline for the board’s decision remains unconfirmed, federal and state governments have expressed strong support for the potential economic boost the mine’s revival would bring to the local community.
