Sibanye-Stillwater to restart Mt Lyell copper mine in Tasmania, creating 300+ jobs

A South African company plans to restart the historic Mt Lyell copper mine on Tasmania's west coast, creating more than 300 jobs.

The mine near Queenstown was a cornerstone of the region's economy for more than a century.

But it entered care and maintenance in 2014, after three workers were killed within six weeks, and a rockfall damaged underground infrastructure.

The mine had been operated by Copper Mines of Tasmania before it was acquired by mining company Sibanye-Stillwater in 2023.

Today Sibanye-Stillwater has announced it has secured board approval to resume operations.

'Beating heart of Queenstown'

The West Coast Council Mayor Shane Pitt said it was "fantastic news" for the entire community.

"The west coast backs those who back us, and I look forward to a long and rewarding partnership with Sibanye Stillwater."

Tasmanian Labor said along with the 300 jobs, it would create "flow-on benefits for local contractors, accommodation providers, hospitality businesses and retailers".

"Mt Lyell is part of the fabric of Queenstown, and its restart will provide a major boost for the broader west coast economy, with benefits felt across the state," a spokesperson said.

Production to restart in 2029

According to a company report published yesterday, work at the project is scheduled to begin early next year, before production commences in early 2029.

This will first require capital investment of around $490 million.

It plans to mine 26,000 metric tonnes of copper, 16,000 troy ounces of gold and 116,000 troy ounces of silver from the site each year.

It believes the mine can operate for another 23 years.

Sibanye-Stillwater said the mine would be powered by hydropower, would cover the mine's "existing and previously disturbed footprint", would utilise "increased automation" and would have clearly defined future and environmental closure responsibilities.

The environmental impacts of the mine, under previous ownership, have been a long-standing issue.

According to the Federal Department of Climate Change, Energy, the Environment and Water in 2021, the nearby lower King and Queen rivers remain heavily affected by historic mining practices.

It said they were now "essentially lifeless", due to acidity and high metal concentrations.

The surrounding hills have been stripped bare of vegetation, partly due to toxic fumes from smelting.

"The group is currently evaluating opportunities such as mine-water treatment and reuse, progressive rehabilitation, and the engineered placement of potentially acid-forming material in suitable existing mining voids."