The King Island Scheelite mine closed in 1990, after a prolonged depression in the world tungsten market. But the price of tungsten has been rising, making the mine a viable proposition.
Mayor Greg Barratt said the announcement of the new lease was very positive news.
He said the local economy had been at a low ebb since the closure of the island's abattoir in 2012 and the 50 jobs expected to be created at the mine would be a significant boost.
Resources Minister Paul Harriss said the lease would allow the company to begin pumping water from the Dolphin open cut mine, a key step if mining operations are to resume. http://www.themercury.com.au/news/tasmania/king-island-hails-new-lease-for-old-mine/story-fnj4f7k1-1226956536150