COPPER Mines of Tasmania will restart production at its My Lyell Mine at Queenstown late next month.
However, with the new mining technique it has adopted, 88 positions at the mine will be lost.
The mine will employ remote mining equipment to stop workers being exposed to another mud rush event.
Production was halted in January after the death of Barminco Limited loader operator Michael Welsh, 53, in a mud slide at the site.
CMT's general manager Scot Clyde said yesterday the mine had received approval from WorkSafe Tasmania to recommence development at the end of June and the re-establishment of mining operations planned in late July.
``A new mining method is a significant change to mine design and operation, including the introduction of remote mining equipment and new technology to remove people from the risk of mud rush,'' Mr Clyde said.
``While this is good news for the bulk of our employees, the local community and suppliers, it will significantly reduce ore production over the next two years and unfortunately this requires fewer employees,'' he said.
Mr Clyde and chief executive officer of underground mining contractor Barminco Peter Stokes said the mine would continue to employ about 239 people. However, about 64 positions would be affected across all areas of the mines operation.
A further 24 positions are likely to be affected in the New Year.
CMT and Barminco will consult unions and employees over the next two weeks to identify who would be affected by the reduction in positions.
The company will examine all options to minimise the impact on employees, with retrenchment a last resort.
Vedanta's operational profit was down $33.4m due to the closure of the Mt Lyell mine to the month of March.
``The company is undertaking exploration drilling and feasibility studies to prove up ore deposits on the site and is confident that the mine has a longer-term future,'' Mr Clyde said.
``This is a major financial commitment by the company and buys time to develop the new resource to extend the life of the mine.''
Mr Clyde said the company was also continuing to talk to the State Government and other stakeholders regarding how they might assist the mine and its employees.