CAPITAL MARKETS

Mt Lyell in limbo

THE recent closure after a string of fatalities of the Mt Lyell mine in Tasmania and an associate...

Justin Niessner

This article is 11 years old. Images might not display.

Copper Mines of Tasmania today confirmed that the operation that went into shutdown last month would extend its closure and reduced pay plan for about 316 CMT and Barminco employees until April 11.

At that point the company said it hoped to have a better view of how long the shutdown might continue.

The safety investigations and risk assessments being carried out follow the death in mid-January of a 53-year-old loader operator at the site due to a mudslide and a double-fatality in December of workers aged 25 and 45 who fell 35m from a maintenance platform.

CMT general manager Scot Clyde today said the company remained firmly committed to exploring every avenue to return the mine to production, provided it could be done safely.

“Over the past month we have had five external consultants with a high level of expertise and capability in cave mining operations working with our own team on possible solutions and changes to operating methods to mitigate the risk of mud rush,” Clyde said.

“Technical and economic feasibility assessments of a number of different options are currently underway.

“While we remain optimistic, we are not looking at an exercise of minor changes but potentially different technical solutions and changes to our operating methods to allow us to mine ore safely and unfortunately this takes time.”

In the meantime, CMT has committed to providing at least some level of financial support for the mine’s employees, with a standby arrangement including a mix of ongoing care and maintenance employment, redeployment to other sites, leave and a standby wage arrangement.

WorkSafe Tasmania requires CMT to undertake a “safety case” for the mine, which the company says is involving much more work in its review process.

“We regret that we are unable to provide more clarity to our employees and the local community but feel that a continuation of the standby arrangements are the best way to continue to support our CMT and Barminco employees,” Clyde said.

To further support the employees affected by the closure, the Australian Workers’ Union has called on the federal and Tasmanian governments to each allocate $A200,000 in hardship funding.

“It’s important that everyone recognises that the employees of this mine are suffering serious financial hardship while it’s closed,” AWU Tasmanian secretary Ian Wakefield said.

“The Tasmanian government and the West Coast Council have provided support through a works program while these employees are in limbo but that support now needs to continue and be expanded, given the extended closure of the mine.

“Through no fault of their own, employees at Mt Lyell mine are facing an anxious period ahead.

“Hardship support to assist them through this will make a world of difference.”

TOPICS:

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

editions

ESG Index 2025: Benchmarking the Future of Sustainable Mining

The ESG Index provides an in-depth evaluation of the ESG performance of 60+ of the world’s largest mining companies. It assesses companies across 10 weighted indicators within 6 essential ESG pillars.

editions

Leadership Insights 2025

Leadership Insights reveals key trends in priority mining issues through interviews with 15+ top mining company executives and an industrywide survey.

editions

Mining IQ Risk Analytics

Risk Analytics offers interactive access to World Risk Insight data, allowing you to customise risk views, benchmark jurisdictions, explore data behind scores and read expert commentary to guide your decision-making.

editions

Project Pipeline Index 2025

View our 50 top mining projects, handpicked using a unique, objective selection process from an expanded database of 600+ global assets.