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
Mt Lyell in limbo

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:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.