Avebury Mine to Close 

by Olivia Johnson, Australian Mining

Less than two years after returning to operational mode, the Avebury nickel mine is being transitioned back into care and maintenance.

The Avebury nickel-sulphide project is wholly owned by Mallee Resources and is located approximately 8km west of the town of Zeehan, within a known mining district on Tasmania’s western coast.

Mallee Resources’ receivers and managers were appointed in September 2023 and have been operating Avebury while searching for a long-term buyer.

KordaMentha Restructing, an advisory and investment firm, cited the weakening nickel price and the increase in Indonesian nickel supply as the reason behind the mine’s closure.

Avebury mine receiver Scott Langdon said the oversupply of low-quality Indonesian nickel made the higher priced, good quality Australian nickel uncompetitive.

“As a number of Australian miners have recently experienced, without a structural change in the market to properly value low-carbon, battery-grade nickel, local mine operations will continue to be disadvantaged compared to their competitors,” he said.

“It is disappointing that despite interest from global participants, current market conditions have presented challenges to finding the right path for a sale at this point in time. These external factors left us with no other choice than transitioning to a care and maintenance program for Avebury.

“We thank the Avebury workforce for their hard work and support throughout the receivership.”

The care and maintenance plan will be communicated to Avebury employees and stakeholders over the next few days.

Read the full story here: Avebury mine to close – Australian Mining.

Media release – Shane Broad MP, Shadow for Resources, Member for Braddon, 8 February 2024

Job losses will devastate west coast community and economy

The closure of the Avebury Mine is devastating for the west coast, the 200 impacted workers and their families who are now left without a job and an income.

The last thing the region needed was for this mine to shut, especially when the economy is already struggling and many Tasmanian families are doing it tough with the cost of living crisis.

Labor would like to see other mines take on as many of these impacted workers as possible to help soften what will be a big blow.

The Government also must now step up and support impacted workers, who will be feeling the weight of this closure.

There is no doubt that the situation at Avebury could have been less complicated had the Liberal Government stepped up and provided the support it promised to keep the mine out of administration. This included providing $3.5 million in payroll tax relief and releasing the $1 million bond held by Aurora.

It those instances, the people of the west coast were badly let down by Premier Jeremy Rockliff and Resources Minister Felix Ellis, who effectively did nothing.

This time the Liberals need to step up. It is time to help workers and their families, now.

After 10 years in government, the Liberals are more focused on itself than helping regional Tasmanians get through the cost of living crisis.