MMG completes sale of Avebury mine

MMG has completed the sale of its Avebury nickel mine to Tasmanian based Dundas Mining for $25 million.

The Avebury mine, located 8km west of Zeehan in Tasmania’s West Coast, has been in care and maintenance since 2009, not long after MMG acquired the mine.

MMG then initiated an internal review and external expression of interest process for the asset in 2011.

Dundas aims to bring the Avebury operation back into production as soon as possible.

General manager – ASEA Operations, Gus Gomez, said MMG believes the offer is the best outcome for both parties.

“Dundas Mining is committed to a restart of the mine and MMG is confident that the sale will reinvigorate the Zeehan area, by providing new jobs and economic benefit to the region,” Gomez said.

“MMG would like to thank the Tasmanian Government, West Coast Council, local community members and all other stakeholders in the region for their ongoing support throughout the sale process.”

Gomez added that MMG remains committed to Tasmania through its Rosebery operation, and will continue to make social and economic contributions to the state and West Coast region.

The Tasmanian Government welcomed the sale, and resources minister Guy Barnett said it showed a positive sign of growing confidence in the state’s resource sector.

“Dundas Mining is a privately owned exploration and mining development company based in Tasmania and their commitment to bringing the Avebury operation back into production as soon as possible is very pleasing,” Barnett said.

He added that jobs are the state government’s main priority and looks forward to the restart of the mine to create more employment.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.