International and national developments in the mining and smelting industry pose some big questions for the future of two of Tasmania’s biggest industries: Nyrstar zinc smelter in Hobart and MMG’s Rosebery polymetallic mine on the West Coast of Tasmania.
In December 2012 The Canadian Press ran a story ( China makes plans to mine the Arctic ) about MMG’s expansion of its zinc mining empire into the Izok Corridor in Canada.
MMG’s proposed Izok Corridor zinc mine will destroy Izok Lake and three smaller lakes at High Lake; in addition to threatening the calving grounds of the largely decimated Bathurst caribou herds.
MMG’s Sally Cox (Fox) commented about the Izok mines:
Their time has come, said Fox.
“They’re very much about our future confidence in zinc,” she said from Melbourne, Australia, where MMG is headquartered. “We see in the next few years a number of major zinc mines will be coming off-line.”
One of those is MMG’s own Century mine, which produces 500,000 tonnes of zinc annually.
“Between the Izok Corridor project in Canada and our other project in Australia, we would be hoping that they would replace the zinc production of our Century mine,” Fox said. ( http://www.castanet.net/edition/news-story-85212-4-.htm )
This Project is an important part of MMG’s plan to continue to meet its current contracts and to grow its business as a major zinc producer. One of MMG’s operating zinc mines will run out of ore in the next 4 to 5 years and MMG hopes to replace part of its production with zinc concentrate from the High Lake and Izok sites. ( From Izok Corridor Project – Project Proposal 2012 – Volume 2 Appendices Page 8 )
In September this year the ABC reported the announcement by MMG of the closure of its Century zinc mine with the ore running out in 3 years and the commencement of rehabilitation of the mine:
The Australian mining industry is heading into unchartered territory with the closure of the world’s third largest open cut zinc mine in 2016.
Century mine is owned by the Chinese company MMG and it will be the first ever closure of a base metal mine of this size in Australia, possibly the world.
The zinc ore body at the mine is due to run out within the next 3 years, but the lengthy rehabilitation process has already begun. ( http://www.abc.net.au/news/2013-09-19/century-mine-closure/4969242 )
The announcement by MMG of the closure of the Century zinc mine has come earlier than previously stated to The Canadian Press.
Meanwhile progress is still in doubt over the Nyrstar Transformation program to upgrade the Port Pirie Smelter which the South Australian Government has funded to the tune of $5million; as a result of compliance requirements by the SA EPA. ( http://www.abc.net.au/local/stories/2013/08/28/3835840.htm )
In May this year MMG Rosebery mine held its first community meeting with residents of the town to discuss the future social implications of the mine closure.
The big questions about the future of Nyrstar and MMG Rosebery mine need to be asked:
Will the Izok Corridor Project coming online have any impact on the predicted/planned closure date of the MMG Rosebery Mine and will this result in the subsequent closure of the Nyrstar Smelter in Hobart and a flow-on decision by Nyrstar Port Pirie smelter to not proceed with its Transformation project due to:
* the closure of the MMG Rosebery Mine and the Hobart Nyrstar Smelter?
* $AUS exchange rate?
* market demand?
* requirements of aging facilities?
* increased pressures from regulators to protect public and environmental health?
* a reduction in the quality of ore?
If MMG is looking to mine closure within 5 years will Sally Cox arrange for a community meeting in Rosebery where she can provide answers to the questions now being quietly discussed by some local residents:
* is the mine planning on buying back residents’ homes as part of their obligation to rehabilitate parts of their mine lease contaminated by mine operations?
* how long will the mine continue to conduct rehabilitation work in Rosebery and will they employ locals or only FIFO?
* what is the predicted long-term impact of Acid Mine Drainage and remediation programs on residential properties and the local environment; especially waterways such as the Pieman River?
* Will MMG’s fiscal obligations under closure conditions be sufficient to properly remediate the mine contaminated areas and will the EPA hold them responsible for the long term impacts of Acid Mine Drainage on the township of Rosebery and its environs?
