The Hodgman Liberal Government’s number one priority is jobs and we are helping secure 200 jobs on the West Coast with the announcement of a support package to help get the Avebury mine up and running.
After being placed in Care and Maintenance by the Minerals and Metal Group (MMG) in 2009, it was announced last year MMG had entered into a sale agreement with Avebury Nickel Mines Limited (ANM). That sale is due to be finalised by the end of the month as ANM continues to secure funding.
Minister for State Growth Matthew Groom said the support package is a result of discussions held with ANM and Adam Brooks, as Chair of the West Coast Economic Working Group, after they approached the Government about possible support to help reopen the mine.
Minister for Resources Paul Harriss said the reopening of the Avebury mine would represent a significant boost to the West Coast community after several setbacks to the local economy over recent years.
Mr Groom said “After careful consideration, the Government has accepted a recommendation from the independent Tasmanian Development Board to provide ANM with a conditional support package.
“This package includes a grant to ANM for 50% of the stamp duty on the purchase price from MMG or $900,000, whichever is the lesser amount, as well as a grant for up to $2.6 million to reimburse all of the payroll tax paid on positions at the Avebury mine for 2 years.
“Following the substantial commencement of operations, the Government has also committed to considering a limited mining royalties deferral.
“The Tasmanian Development Board has made this recommendation on the basis that without this support package the reopening of the Avebury mine in the short to medium term is unlikely.
“It’s important to note the support package is conditional on ANM raising the capital needed to complete the purchase and upgrades necessary to resume mining. As the support package offered to ANM represents forgone potential future revenue for the Tasmanian Government, it will have no impact on the State’s budget position.
“I am confident that the Government has done everything in its power to facilitate this much needed resumption in activity. We are sincerely hopeful that the confidence we have provided in the resumption of mining at Avebury is reflected in the private capital market in the near future.
“Investments like Avebury mine are needed to strengthen the economies of remote areas, underpinned by improved infrastructure, skills training and access to new markets. Continued investment in core mining and mineral processing, primary industry and tourism sectors will underpin any local economic development strategy for the immediate future.”
Mr Harriss said the reopening of the Avebury mine would see the creation of around 200 news jobs and would represent a substantial investment in the region.
“The West Coast has a heavy reliance on mining production which has been dramatically affected by the downturn in global commodity markets and the Labor-Green destruction of the forestry industry.
“The Government is keen to see the resumption of activity at Avebury mine. We believe that the exports from the mine added to the employment created will provide a much needed boost for not only the West Coast but the whole of the State’s mining sector.
“The local economy still depends on the strength and prosperity of the traditional, core economy for its survival.“
The Hodgman Liberal Government’s number one priority is jobs and it will continue to explore and utilise every responsible course of action available to advance this goal.
Matthew Groom, Minister for State Growth, Paul Harriss, Minister for Resources
