An employee works at the Ferronikeli smelting complex in Glogovac, central Kosovo February 12, 2009.mining
An employee works at the Ferronikeli smelting complex in Glogovac, central Kosovo February 12, 2009. The Ferronikeli ore mining and metallurgical complex, set up in 1984 to produce ferro-nickel for export, was badly damaged during the 1999 NATO air strikes against Serbia. It was bought by a consortium of international investors in 2006. Reuters/Hazir Reka

The Tasmanian government released two announcements, with one regarding the reopening of a nickel mine in the west and a new venture involving iron ores in the northwest, in an effort to encourage development in the mining sector.

As ABC reports, the Tasmanian Government is trying to reopen the mothballed Avebury Nickel Mine and provide a mining lease to Forward Mining in order to jumpstart a project in Rogetta. The new mine is set to begin construction next year, with production slated to start in 2017.

Paul Harris, the Resources Minister, sent out budget estimates earlier, adding that 200 jobs are expected to be laid out, with 100 more jobs to be given during the duration of the project. “In order to give some context to how significant this project is, it would increase Tasmania’s net commodity export volume of iron ore from around 2.8 million tons to 3.8 million tons,” said Harris in a statement.

Harris announced that a budget assistance of up to $3.5 million will be given to the new owners if the Avebury Mine reopens. This budget assistance is expected to grant Avebury $900,000, or approximately half the stamp duty on the sale price of the mine, whichever is valued lesser. The government is also thinking of deferring royalty payments.

Heads of Avebury Nickel Mines Limited aim to see improvement before moving forward on setting a date on the mine’s reopening. Adam Brooks, Parliamentary Secretary for Small Business and Trade, said in a statement that Avebury will re-establish the country’s strength in mining.

“Obviously mining is a major strength for Tasmania to harness and our plan to help get Avebury up and running again could create 200 jobs for the West Coast,” Brooks said in a report by The Advocate.

Doug Daws, Avebury Nickel Mines Limited‘s chairman, said that his confidence banks on its quality, and that he is sure that the mine will get the investor backing it get up and running once nickel prices improve. They have a target to complete the sale and purchase agreement by June 30.

Russia’s nickel industry is also looking at a bright future while Tasmania is working to boost its mining sector by reopening a nickel mine. Amur Minerals Corporation (London AIM:AMC), a developing mine in the Russian Far East, has just been awarded its mining license from the Russian government. The company is currently completing its final feasibility study.

Contact the writer: a.lu@ibtimes.com.au

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