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Brian Hearne didn’t think he’d be back at Woodlawn Mine when he left 23 years ago.
It was two years before owner Denehurst hit financial strife and went into administration, leaving hundreds of employees out of work.
But now Mr Hearne is back after years working elsewhere in the mining industry. He started out at Woodlawn as an operator and worked his way up to production superintendent. Now he’s general manager.
Mr Hearne was just one attendee at Tuesday’s ground breaking ceremony to mark start of construction at the mine in the next few weeks. Heron Resources is reviving the underground and tailings operation after years of investigation and exploration. It is expected to generate 250 jobs during construction and 156 ongoing positions, many of which will go to locals.
Mr Hearne said several former Woodlawn miners had expressed interest in coming back.
“There’s a handful that are sick of flying in and out (to mines) so there are opportunities there for them,” he said.
Like Mr Hearne, Heron Resources managing director and CEO Wayne Taylor was not surprised that advanced high grade deposits of zinc, copper, lead, gold and silver had turned up during testing.
“It’s that old adage in the mining industry – where do you find a new mine? Next to the old one,” he said.
In 2016 the company won approval to extract 1.5 million tonnes annually of the ore concentrates over 10 years. Explorations have continued within a 20km radius of the mine at Currawang and Cowley Hills where rich mineralisation veins have been discovered.
Mr Taylor said earthworks would start at Woodlawn in the next few weeks.
“It’s very exciting,” he said.
“I’ve been working on this since 2011. Zinc is not the easiest thing to get excited about but we’ll be generating product at a time of strength in the market. We knew the punch was coming and we’d have liked to be six months ahead (of our timetable).”
He said zinc prices were reaching a 10-year high and there was a “robust outlook.” Mr Taylor said it was now critical to start production by early 2019. Mining will start on the tailings dams and move to underground operations behind the existing bioreactor. A feasibility study estimated 2.8m tonnes of ore reserves underground and 9.5m tonnes from reclaimed tailings.
The company has already ordered $10.5m worth of processing equipment, including a $US4.4m grinding mill.
Ertech has been signed up for earthworks under a $12m contract and Sedgman enlisted to undertake $107m worth of construction. Mr Taylor said subcontracting jobs would flow locally, boosting the economy, and this would continue with operational positions.
Commodity trader Louis Dreyfus Company Metals has been enlisted to sell all the zinc, copper and lead concentrates produced until the end of 2021.
“We’ve secured very attractive terms and they’ll sell it to smelters throughout Asia and wherever else they can,” Mr Taylor said.
The zinc and copper will be trucked to Port Kembla and the lead to Port Botany. Mr Taylor said rail transport was a possibility but it would have to be a stand alone arrangement from Veolia, which relied on rail to bring waste to the bioreactor.
“(Ore) product was initially railed out of Woodlawn but times have changed and the infrastructure’s different. We’re yet to firm anything up,” he said.
The $240m mining project has been funded through $100m debt financing and $140m equity. New York-based Orion Resources is the largest contributor with $139m, followed by Castlelake with $110m and Greenstone.
Orion portfolio manager Peter Rozenauers, a former Denehurst mining engineer, said he first starting talking to Mr Taylor about involvement in 2013.
“This made sense to us and we’re glad it’s got to this point,” he said.
“...We’re at the start of a global coordinated growth period and one with low inflation, so we can expect interest rates to be benign worldwide. With base metals there is not a lot of development capital involved so Heron can take advantage of the market conditions.
“It (the mine) has good jurisdiction and a long life.”
Despite approval for 10 years, the company is expecting a longer lasting resource.
‘Shot in the arm’
Hume MP Angus Taylor, Goulburn Mulwaree Mayor Bob Kirk, general manager Warwick Bennett, Crs Denzil Sturgiss and Peter Walker, economic development officer, Debbi Rodden and Tarago community members also attended Tuesday’s ceremony.
“It has huge benefits to the Tarago community and there will also be spin-offs to Goulburn with 60pc of the operational jobs sourced locally,” Cr Kirk said.
“That means 30 to 40 families probably moving to Goulburn...Good on the old mine operators for leaving so much ore behind so these people could come in with their new technology.
“I’m hugely encouraged by what I’ve seen.”
Tarago Progress Association was similarly upbeat.
President Judy Alcock said she wanted to spread the word that the project was fully funded.
“From the town’s point of view, it means jobs and housing, a boost for schools and the whole area,” she said.
Mrs Alcock moved to Tarago in 1988 and ran several businesses, including her current one, Tarago Real Estate.
She has lodged a development application for four shops diagonally opposite the Loaded Dog Hotel. They will include a cafe, her own business, antiques and collectables and a cooperative selling “high quality” home produce.
“I’ve been thinking about it for a while, looking for the right time,” Mrs Alcock said.
She told The Post that half of the town’s Sherwin’s Ridge 30-lot subdivision was sold and strong demand continued to flow from Sydney and Wollongong. A village plan being formulated by Goulburn Mulwaree Council has identified land near the railway line to be rezoned for medium density housing.
Hume MP Angus Taylor told Tuesday’s crowd he’d been watching the project for some time.
“I love watching new investment creating jobs and this is exactly that,” he said.