This article appeared in 'The Examiner' a Tasmania newspaper on...

This article appeared in 'The Examiner' a Tasmania newspaper on Sunday

Economy, Business & Finance front page
http://www.examiner.com.au/story.asp?id=374812

Rebirth of mine boon for Waratah
By HELEN KEMPTON , Sunday, 10 December 2006

MINING at the historic Mt Bischoff mine at Waratah is set to begin again next year - 60 years after the mine that "built" Launceston produced its last tin.

Bluestone Tin, which bought the mine in 2004, has lodged a development plan with the State Government and anticipates gaining approval in the new year.

The company also plans to restart mining at the mothballed Renison Bell tin mine, 80km away, and process the ores together at the Zeehan operation.

But it might struggle to get workers.

The West Coast's mining industry is fighting to hold on to its skilled operators in the face of a new nickel mine also starting up production next year.

And companies are even offering financial incentives for workers to stay put.

It is understood one mine has increased worker's pay packets by 10 per cent while workers at another mine are being offered supermarket vouchers.

The rebirth of Mt Bischoff should bring workers and money back to the town.

The revival of open- cut mining at Mt Bischoff will coincide with production resuming at Renison Bell.

Bluestone plans to mine 220,000 tonnes of ore a year at Waratah over four years. This would be carted from Waratah to Renison for processing.

Bluestone Tin became Renison's white knight in 2004. The mine had been shut down by administrators in December, 2003 after a four-month hunt for an investor failed.

But in March, Bluestone bought the mine and rehired most of the workers who had lost their jobs.

Bluestone spent around $50 million bringing the mine - described as a "basket case" by many who courted the idea of investing in it - back into production.

But the high was short-lived.

Just seven months later the mine closed again in the face of sagging tin prices and the 200 workers who had come back to be part of the tin revival were jobless again.

Bluestone predicted the mine would be closed for six months but it has dragged out to more than a year with the mine in care and maintenance mode while a decision to restart production was made.

But in its September quarterly report, Bluestone Tin said Project New Blue - the pre- feasibility study looking at reopening Renison and starting mining at Mt Bischoff - was complete. Bluestone is also advancing a study into recovering the substantial tin resource in the Renison Bell tailings dam through a tin fuming plant.

Premier Paul Lennon, this week confirmed an application to start open-cut operation at Waratah was in the Government's hands.