new hope for closed mine (nt news)

New hope for closed mine

NICK CALACOURAS

November 4th, 2009
Browns Oxide project manager Bob Young. Hunan Nonferrous Metals Corporation has taken over the operation, which is due to reopen in the near future after shutting down last year

Browns Oxide project manager Bob Young. Hunan Nonferrous Metals Corporation has taken over the operation, which is due to reopen in the near future after shutting down last year

THE Browns Oxide project in Batchelor is expected to reopen within months.

The copper, cobalt and nickel deposit in Batchelor shut down last year when Compass Resources went into voluntary administration.

But the China-based minor partner Hunan Nonferrous Metals Corporation has now taken over the entire operation.

The company's deputy chairman, Zeng Shaoxiong, said the new facility was expected to be built by February with work starting in April.

Mr Shaoxiong said he needed mining and environmental approvals for the adjacent deposits at Browns East and Area 55 because the main site has only enough minerals to mine for 22 months.

Resources Minister Kon Vatskalis said he would he would try to help with the approvals process.

He said the possibility of reopening the mine was exciting.

"In other places in Australia, we had mines mothballed and shut down. But in the Territory, we have new ones starting up," he said.

Mr Vatskalis said the mine collapsed under Compass Resources because of their increasing costs.

He said they were using untested technology that did not work as well as expected.

"We were disappointed when it went under, not upset, because it was a promising mine," Mr Vatskalis said.

Mr Shaoxiong said a team of Chinese and Australian experts would meet in Beijing next month to discuss better techniques and equipment.

Hunan Provincial Party Committee secretary Mei Kebao also gave his support for the projects.

"We encourage competitive groups to invest in the Territory," he said.