CopperChem has completed the purchase of the Stockman zinc-copper mine project near Benambra in the state of Victoria, Australia.
Following the acquisition, CopperChem will invest towards the development of the project.
The new mine development will see an investment of A$180m-A$200m ($135.1m-$150.11m), and is expected to create 300 jobs during the construction phase, with an additional 250 jobs in later stages of the development.
Victoria Minister for Resources Tim Pallas said: “This investment has the potential to generate new, highly skilled jobs and boost business opportunities in the Omeo and wider East Gippsland community.
“The agreement between the state and company lays the foundation to protect the environment and downstream river users, including town water suppliers, irrigators, and commercial fishers.”
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Copper produced from the mine is expected to serve the state’s construction and electronics industries.
In addition, the project development will lead to estimated royalties of around A$40m ($30.02m) to the state.
CopperChem reached an agreement with the state government to fund the ongoing management of a tailings storage facility after mining has ended in an effort to protect the local Tambo River area.
With an expected mine life of around ten years, the mine represents the first new mine to open in Victoria since 2006.
In 2014, the project secured a planning assessment after an environment effects statement and public inquiry process were completed.
The company intends to begin exploration and resource development activities by the end of the year, with production to start after the installation of infrastructure subject to CopperChem’s final investment decision and obtaining necessary permits.