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The future of an underground mine at the Argyle Diamond Mine looks brighter following a State Government announcement. Last week State Development Minister Clive Brown announced that the Gallop Government fully supported the proposal by Argyle Diamond Mines to proceed with an underground operation and will provide financial support if it is independently verified that the project would not otherwise proceed. General manager Brendan Hammond said it was an ‘open secret’ that the mine had been seeking royalty relief from the State Government for some time. Describing Mr Brown’s statement he said: “This is great news; it represents a real possibility for us to step forward.” Studies are currently underway to see whether it is feasible to extend the mine life by the operation moving from open cut to underground. The costs of an underground operation are significantly higher and Rio Tinto is looking at options to cut the costs of the operation, if it is shown to be viable. |
A decision is expected in June next year. The Minister said the State Government would consider providing financial support if it was satisfied by an independent assessment of the Argyle underground feasibility study that the project would not proceed without State Government assistance. He said the Gallop Government was committed to creating new jobs and opportunities in the Kimberley. "The Gallop Government has a plan that is working to grow the economy, build stronger communities and protect our unique environment," he said. "The Kimberley has played a vital role in WA’s economy and social development and the government is working hard to grow this contribution.” Mr Hammond said Argyle had undergone huge changes during the past three years. “These changes have been in how we do business, especially in relation to economics and employment in the region [East Kimberley].” He said than the mine now employed more than 40 percent of its workforce locally, with 22 percent being indigenous workers. |
He said the company was engaged in a strategy to cease fly-in/fly-out operations for workers. The company wanted to contribute to the East Kimberley community in ways that would carry on, even beyond the life of the mine. It had put between $15 and $20 million into the East Kimberley’s economy in the last three years. Three years ago it had spent $3 million on goods and services in the East Kimberley. This year, it would spend $21 million on local goods and services. Mr Hammond said he was chuffed with the government’s decision to help. The Minister said any financial support offered to Argyle would be contingent upon both Argyle and Rio Tinto making binding commitment to maximising benefits to local communities from the project, including the continued implementation of local employment and local purchasing practices. |