The New South Wales government has given Australian resources company TriAusMin the green signal to re-open Woodlawn mine.
The mine, located in the Lachlan Fold Belt between Sydney and Canberra was shut in 1998 when its previous owner went into administration.
The company is looking to mine from three current tailings dams before it reopens the underground mine.
TriAusMin’s managing director Wayne Taylor said the mine has the capacity to produce about 150,000 tonnes of zinc, copper and lead per year for up to 21years, the ABC reported.
“Technology has improved and we are now able to recover more of the minerals of value out of what’s left,” he said.
But Taylor also said the company needs to overcome the finance hurdle before it begins the venture.
“It’s a difficult market out there at the moment, not many mining ventures are getting the funding they need to get started,” he said.
Taylor recently spoke at an investor and mining conference, Sydney Resources Round up.
“We’ve still got more work to do. On the tailings treatment project we are in a pretty solid position to move that ahead, but it is subject to acquiring financing and that’s a $100 million equation for us,” he said.
He was one of many junior miners who were cautiously presenting business cases that outlined projects were ‘downturn proof’.
Local residents in Tarago are worried about the impact of the mine on local roads. The Tarago Progress Association is for the development but spokesman Cid Riley is worried about more trucks on local roads.
“The locals and a lot of the people that live around the area would be mainly concerned about the traffic movements and what the effects might be on the truck haulage routes,” he said.
But Taylor assured the impact will be negligible.
“The operations will bring a few trucks through the town, we’re restricted on the hours that we can do it,” he said.
Goulburn Mayor Geoff Kettle is pleased with the re-opening of the mine and sees opportunities for local employment.
“This is a $126 million mining development over the next 20 or so years,” he said.
“It’s going to create 140 jobs for the local area with up to 200 in construction. It’s good for the economical stability of the area.”
The company had previously said reopening Woodlawn mine could potentially create 400 jobs.