Tasmania offers incentives to Vedanta to resume copper mining

Mumbai: Tasmania has offered a financial package of 25 million Australian dollar (ASD) to Vedanta Resources for restarting a copper mine by 2017, the Australian state's premier, Will Hodgman said.

"The mines operation is shut at the moment and we hope to restart the copper mines by 2017 with financial support and tax reliefs. We have offered ASD 25 million financial package to sustain the operations to Vedanta for copper mines," Hodgman, who is leading a Tasmanian trade mission to the country, told PTI here.

The mine is run by Vedanta subsidiary, Copper Mines of Tasmania (CMT) and its operations at Mt Lyell copper mine on Tasmania's west coast were suspended in 2014.

"The Mt Lyell mine is a victim of unfavourable commodity prices. We see prospective opportunities to restart mining next year," Hodgman said.

It was employing 370 workers earlier.

CMT earlier announced that Vedanta had given it the nod to move to the final feasibility stage for a planned resumption of mining.

Hodgman is leading a trade delegation comprising industry leaders from education, energy, tourism, and food and beverage sectors to the country. They started off from Kerala.

Meetings with government and business leaders will seek to deepen economic links, while showcasing what the pristine and innovative island state of Tasmania has to offer visitors, students and investors, the premier said.

During the ongoing trade mission, the Tasmanian delegation plans to hold meetings with existing investors in Tasmania including Vedanta and Sun Pharma, apart from hosting education agent events, youth cricket workshops with Ricky Ponting and David Boon.

The delegation also aims to finalise some important business and sporting exchange programmes, Minister for state growth Matthew Groom said.