Mr BALCH - 1998-10-13
Madam Speaker, I understand the Territory is likely to get a new gold mine. Would the minister please tell the House about this project?
ANSWER
Madam Speaker, this is a very exciting time for the Territory. The project that the honourable member is referring to is the Maud Creek gold mine, which is owned by Kilkenny Gold, and is about 20 km east of Katherine. After the difficulties that are being faced around Australia by the gold mining industry, this is indeed exciting news for the Territory. This proposed mine is expected to provide some 100 construction jobs and 80 operational jobs over a 6 year mine life. The Territory’s gold industry forms a very significant part of our overall mining industry, which in turn is the biggest contributor to our GSP. The NT mining industry contributed some 10.7% of our GSP in 1996-97, which is more than 2 times the national figure of 4.1%.
Over the past year or so, we have seen a sustained drop in the price of gold, which is measured of course in $US. This was a major contributing factor to the decline of the Mount Todd gold mine about this time last year. However, the relatively low value of the $A against the Greenback, combined with very significant forward sales and careful minimisation of production costs, have kept the Northern Territory’s gold mines, in general terms, very viable. In fact, in 1997-98 the Northern Territory recorded a gold production value of $356m, an increase of some $9m over the previous year’s figures.
This encouraging sign is no better demonstrated than by the level of interest shown by tenderers for the purchase of the Mt Todd mine which may lead to its eventual reopening.
I should point out that the ultimate start-up of the Maud Creek gold mine, as yet, is no certainty. There are a number of environmental and feasibility studies which Maud Creek, like any other development project, must complete before government and internal company approvals are given. However, these processes are underway.
The former project owners gave notice of intention to develop the project to my Department of Mines and Energy and this notice triggered the Territory’s Environmental Assessment Act and my colleague, the Minister for Lands, Planning and Environment, subsequently determined that a full environmental impact statement was required. This EIS was prepared by consultants, Dames and Moore, and was released for public comment on 30 September 1998.
At the request of the member for Katherine, Kilkenny Gold and Dames and Moore have agreed to hold a public meeting in Katherine to inform local residents about the project and its potential impact on the local community. I understand my colleague, the Treasurer, is going to chair that meeting.
Depending on the positive outcomes from the EIS process and the company’s own feasibility studies, we could indeed see a new gold producer in the Northern Territory. All going well, the mine should and could be producing by the end of next year. This is a very promising indication for this industry in the Territory.
ANSWER
Madam Speaker, this is a very exciting time for the Territory. The project that the honourable member is referring to is the Maud Creek gold mine, which is owned by Kilkenny Gold, and is about 20 km east of Katherine. After the difficulties that are being faced around Australia by the gold mining industry, this is indeed exciting news for the Territory. This proposed mine is expected to provide some 100 construction jobs and 80 operational jobs over a 6 year mine life. The Territory’s gold industry forms a very significant part of our overall mining industry, which in turn is the biggest contributor to our GSP. The NT mining industry contributed some 10.7% of our GSP in 1996-97, which is more than 2 times the national figure of 4.1%.
Over the past year or so, we have seen a sustained drop in the price of gold, which is measured of course in $US. This was a major contributing factor to the decline of the Mount Todd gold mine about this time last year. However, the relatively low value of the $A against the Greenback, combined with very significant forward sales and careful minimisation of production costs, have kept the Northern Territory’s gold mines, in general terms, very viable. In fact, in 1997-98 the Northern Territory recorded a gold production value of $356m, an increase of some $9m over the previous year’s figures.
This encouraging sign is no better demonstrated than by the level of interest shown by tenderers for the purchase of the Mt Todd mine which may lead to its eventual reopening.
I should point out that the ultimate start-up of the Maud Creek gold mine, as yet, is no certainty. There are a number of environmental and feasibility studies which Maud Creek, like any other development project, must complete before government and internal company approvals are given. However, these processes are underway.
The former project owners gave notice of intention to develop the project to my Department of Mines and Energy and this notice triggered the Territory’s Environmental Assessment Act and my colleague, the Minister for Lands, Planning and Environment, subsequently determined that a full environmental impact statement was required. This EIS was prepared by consultants, Dames and Moore, and was released for public comment on 30 September 1998.
At the request of the member for Katherine, Kilkenny Gold and Dames and Moore have agreed to hold a public meeting in Katherine to inform local residents about the project and its potential impact on the local community. I understand my colleague, the Treasurer, is going to chair that meeting.
Depending on the positive outcomes from the EIS process and the company’s own feasibility studies, we could indeed see a new gold producer in the Northern Territory. All going well, the mine should and could be producing by the end of next year. This is a very promising indication for this industry in the Territory.
Last updated: 09 Aug 2016