700+ jobs as Xstrata resumes Ernest Henry expansion

Xstrata Copper has announced it will resume the expansion of the Ernest Henry copper mine in North Queensland, following the Federal Government’s agreement with the mining industry over the Resource Super Profits Tax (RSPT).

In May, the company suspended the development of the $589 million underground mine development and its $30 million North Queensland regional exploration program, following a review into the potential impacts of the RSPT.

Xstrata also suspended $186 million worth of work including the planned expansion of its Wandoan thermal coal project in Queensland, and an exploration program around Cloncurry and Mt Isa.

The company has confirmed this week however that full activities would resume at the Ernest Henry expansion, and the exploration spending would be reinstated.

The new underground operations at Ernest Henry will extend the mine’s life expectancy to at least 2024 and generate an additional 330 jobs during construction.

The project is also expected to provide 400 full-time jobs once it is completed in 2013. The expansion is still subject to final Queensland Government approvals.