GALAXY Resources inaugurated a new lithium mine in Ravensthorpe on Friday, throwing the region a lifeline after the closure of BHP Billiton nickel mine in January.
The project, launched by the Premier Colin Barnett, has a 15-year mine life with the potential to extend beyond that.
The company will employ 100 people during construction and about 75 permanent jobs will be provided for locals when work begins at the Mt Cattlin mine this week.
Mr Barnett said that this year has been a very tumultuous year for Ravensthorpe.
“At the beginning of the year we had the shock news when BHP closed the major nickel project, which just started and resulted in losing many jobs,” he said on Friday at the launch.
“To their great credit, the Ravensthorpe community have kept going and indeed the year is ending on a far more optimistic note.
“I am delighted to be here today with Galaxy Resources for the ground breaking of this lithium mine.
“I am quietly optimistic that we will see that project reopen.”
Mr Barnett said that there were two groups looking at the BHP Billiton nickel site and he hoped one of them comes to fruition.
However, according to reports on Monday, China's largest nickel producer, Jinchuan Group, has been removed from the next stage of BHP Billiton’s process to sell its mothballed Ravensthorpe mine.
Lithium is used in batteries in laptops, mobile phones and power tools but more and more is starting to be used in hybrid and electric cars.
Ore from the mine will be crushed, screened and washed onsite to produce a higher grade, inert ore with an appearance similar to gravel. This will then be exported in bulk through Esperance Port to China.
Galaxy Resources managing director Iggy Tan said that the company has received final mining approval.
“By 2010, the Mt Cattlin mine will be the world's second largest hard rock producer of spodumene and, through the development of its value adding lithium carbonate plant in China, the company will be the largest and lowest cost lithium carbonate producer in Asia.
“We are very excited to have this mine commence construction and we hope we are running this time next year,” he said.
Shire of Ravensthorpe president Ian Goldfinch said that the project signals a regeneration of Ravensthorpe and Hopetoun.
“It’s upwards and onwards from here,” he said.
Member for Eyre Dr Graham Jacobs said the new mine will see a smaller, graduated and manageable growth on the road to recovery for Ravensthorpe and Hopetoun.
“This is indeed a great day for Ravensthorpe after the previous unfortunate incident.
“As a local member I felt the pain and people came to me with lots of issues,” he said.
Another miner, Tectonic Resources, is about 18 months away from establishing in the region.
It is focused on developing its 100 per cent owned Phillips River Project located near Ravensthorpe. The area hosts a rich inventory of gold, silver and base metals.
Mr Barnett also announced that the Government is allocating $20 million to the upgrade to the Hopetoun to Hammersly Inlet road together with lookouts, barbecue areas and camping facilities.
The work on a new road to improve access to tourist sites in the Fitzgerald River National Park will start by the end of January next year.
“That is a very spectacular national park and will allow tourists and residents of WA to visit the area,” Mr Barnett said.
“We pledged to improve access from the western and eastern ends to tourists sites in the Fitzgerald River National Park,” he said.
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