The mine has been on care and maintenance last year following three fatalities.

Vedanta conducted a review of Copper Mines of Tasmania's (CMT) prefeasibility work on the technical and economic viability of a new operating model and given its support to move to the next stage of work.

CMT Mt Lyell projects and site manager Jared DeRoss said it was positive news and a major step towards a restart in the next 15 months.

"We have determined the new mining method that we will adopt and the orebody we will mine," he said.

"The next stage is to carry out the detailed technical design of the mining system, layout of the new mine and safety systems and do further work on the economic feasibility of the operation."

Subject to study outcomes, CMT plans to begin mine development and construction work later this year.

"This is very good news and we're very optimistic, but at the same time we don't want to overstate the current position," DeRoss said.

"There is still much work to do on the commercial side and design of a safe, sustainable and viable production operation and so there is still the potential for delays to our timetable over the next few months.

"Our target is to start new development work by October/November with production operations commencing some 12 months after that."

Mt Lyell was mining at a rate of 2.5 million tonnes per annum when it closed, and exploration since the shutdown had resulted in an additional 20Mt of ore being added to resources, taking the total to around 50Mt.

Exploration is continuing.

"The surface diamond drilling project to identify further resource concluded after drilling down 1.4 kilometres and we are awaiting the assay results from that project," DeRoss said.

"The drill has now been moved for the new mining project."

The tailing dam raise is scheduled to be completed by mid-month and the dredging is on track for completion by August.

DeRoss said the company had been working closely with WorkSafe Tasmania on safety and risk management and would continue to do so.

The company said it appreciated the ongoing support from stakeholders including mining contractor Barminco, suppliers, the state government, West Coast Council and the community.

Tasmanian Minister for Resources Paul Harriss welcomed yesterday's announcement, though acknowledged the challenges ahead, including low commodity prices.

"The government has been working with CMT through the care and maintenance period to do whatever we can to maximise the prospects to capture any new mineral opportunities and we continue to support the West Coast with projects and training proposed by the government and community-led working group which is helping to reinvigorate and diversify the region's economy," he said.

Currently CMT is employing about 80 full-time equivalent positions, comprising 31 CMT employees plus contractors.