Tasmanian mining has once again grabbed the media spotlight.
A nickel mine financing and takeover bid could signal the start of renewed production, creating 200 new mining jobs.
MMG`s has sold its Tasmanian Avebury nickel mine to QCG Resources for $40 million. The mine which is located about 10 kilometres west of Zeehan, has been in care and maintenance since February this year, however this new acquisition could kick-start production in a matter of months.
The strength of current nickel prices is likely to lift the Avebury mine out of its care and maintenance mode and into full production, creating around 200 new Tasmanian mining jobs in the region.
In fact, the diligence and quality of the care and maintenance program has meant that a return to mining productivity could happen as soon as the necessary modifications are made to the milling circuit.
“grand ambitions to get nickel mining up and running”
This is great news for QCG which is a privately owned exploration company. It has grand ambitions to get nickel mining up and running as soon as possible.
The deal is still subject to finance, with GQC needing to raise at least $33.25 million of the $40 million deal as part of it`s closing payment. There are, however, a number of financial organisations in Australia and abroad that are in negotiations to help fund this new mining project.
One of the great advantages of the acquisition is the good reputation and high quality of the mine. The Avebury nickel mine also has great infrastructure already in place.
“a real sense of genuine excitement”
There is a real sense of genuine excitement within QCG and also MMG, whose executive general manager has gone on record saying that QCG was well positioned to bring the Avebury mining operation back into production at a time when nickel prices are on the rise again.
This new acquisition will definitely breathe new life into the nickel mining industry, but has the potential to bolster mining in the entire Zeehan area.
Should all go to plan, there is a real likelihood for mining jobs growth and continued economic benefits for the region.
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