Mount Lyell copper mine to reopen after 12-year hiatus, bringing 300 jobs to Tasmania's west coast

The mine, which was a cornerstone of the west coast economy for more than a century, was acquired by Sibanye-Stillwater in 2023. The company announced today it has secured board approval to resume operations.

West Coast Council Mayor Shane Pitt described the news as "fantastic" for the entire community. "Before its closure in 2014, Mt Lyell was the beating heart of Queenstown, and its reopening will breathe new life into our region," he said. "The west coast backs those who back us, and I look forward to a long and rewarding partnership with Sibanye-Stillwater."

Tasmanian Labor said the 300 direct jobs would create "flow-on benefits for local contractors, accommodation providers, hospitality businesses and retailers." A spokesperson added, "Mt Lyell is part of the fabric of Queenstown, and its restart will provide a major boost for the broader west coast economy, with benefits felt across the state."

According to a company report published yesterday, work at the project is scheduled to begin early next year, with production commencing in early 2029. The restart requires a capital investment of approximately $490 million. The company plans to mine 26,000 metric tonnes of copper, 16,000 troy ounces of gold and 116,000 troy ounces of silver annually, and believes the mine can operate for another 23 years.

Sibanye-Stillwater said the mine would be powered by hydropower, would cover the "existing and previously disturbed footprint," would utilise increased automation, and would have clearly defined future and environmental closure responsibilities.

The environmental legacy of the site remains a concern. According to the Federal Department of Climate Change, Energy, the Environment and Water, the nearby lower King and Queen rivers remain heavily affected by historic mining practices and are now "essentially lifeless" due to acidity and high metal concentrations.

Why This Matters

The reopening promises a major economic boost for Tasmania's west coast, a region that has struggled since the mine's closure in 2014, with hundreds of direct and indirect jobs.
The project highlights the tension between resource development and environmental remediation, as historic mining left severe pollution in local waterways.
If successful, the mine could supply copper, gold and silver for more than two decades, supporting global demand for metals critical to electrification and construction.

Background

Mount Lyell operated for over a century and was the economic backbone of Queenstown. It entered care and maintenance in 2014 after a tragic period in which three workers were killed within six weeks, followed by a rockfall that damaged underground infrastructure. The mine was later acquired by Sibanye-Stillwater in 2023, a South African mining company with a portfolio of precious and base metal operations. The surrounding area bears visible scars from a century of mining, with denuded hills and acid mine drainage affecting the King and Queen river systems.

Key Perspectives

Local community and government: The reopening is widely welcomed as a lifeline for the west coast. Mayor Shane Pitt and Tasmanian Labor both emphasise the flow-on benefits for local businesses, accommodation providers and hospitality, and the restoration of the mine as a symbol of regional identity. Sibanye-Stillwater: The company frames the restart as a modern, responsible operation — powered by hydropower, confined to the existing footprint, using automation, and with a clear closure plan — aiming to address past environmental failures. Environmental advocates and downstream communities: Historic mining has left the lower King and Queen rivers "essentially lifeless" according to the federal government. Even with the company's commitments, there will be scrutiny over whether the new operation can avoid repeating past damage and help remediate the existing contamination.

What to Watch

Whether Sibanye-Stillwater secures all necessary environmental and planning approvals from state and federal regulators.
The start of early works on site in early 2027, as scheduled, and the company's progress toward the 2029 production target.
Ongoing monitoring of water quality in the King and Queen rivers, and any commitments the company makes to remediation beyond its own footprint.
Global copper prices, which will affect the project's long-term viability and scale of investment.

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