Mr HATTON - 1999-02-18
In December 1998, BHP announced the sale of its Gemco operations, in particular its Groote Eylandt manganese mining operations to Billiton, a world-wide resource group based in London. Can he please advise if this sale is expected to have any significant implications for the Northern Territory, and in particular the Groote Eylandt community?
ANSWER
Mr Speaker, yes, the BHP Groote Eylandt Mining Company has been sold to Billiton. This is a company that has a major interest in Samancor Ltd in South Africa, from where the Groote Eylandt operations will be administered. So the administration base has moved from Melbourne to South Africa.
Obviously members are very aware of the significant contribution that Gemco makes to the Northern Territory economy. It has been operated here by BHP since about 1966. The mine is a world-class manganese mine and currently produces about 1.6m tonnes of manganese per year. I think that comes out at about 5m tonnes of ore.
Recently, we had a senior official of Samancor visiting the Territory, and from discussions he had with senior departmental officers, it was clear that they are going to continue to operate the mine under its current arrangements. The present manager and work force are being retained. There are certainly no plans in place for any changes to the way the company secures its supplies and services from the Northern Territory. That is very important and is probably the most important issue for which we need to ensure continuation.
Production from Groote Eylandt is mainly exported. About a third of it goes down to Tasmania to a company down there called TEMCO, and I believe that Billiton has also purchased TEMCO under the same arrangements that they purchased the mine. Samancor will operate Gemco, I am advised, as an autonomous business and there certainly does not seem to be any reason why the Territory business community won’t continue to enjoy a commercial relationship with that mine, which brings significant benefits to the Territory.
The mine has a life of 30-odd years to go, and that is on present known resources. Obviously, we will continue to ensure that Territory business gets maximum opportunity to gain the benefits of expenditures from that operation.
ANSWER
Mr Speaker, yes, the BHP Groote Eylandt Mining Company has been sold to Billiton. This is a company that has a major interest in Samancor Ltd in South Africa, from where the Groote Eylandt operations will be administered. So the administration base has moved from Melbourne to South Africa.
Obviously members are very aware of the significant contribution that Gemco makes to the Northern Territory economy. It has been operated here by BHP since about 1966. The mine is a world-class manganese mine and currently produces about 1.6m tonnes of manganese per year. I think that comes out at about 5m tonnes of ore.
Recently, we had a senior official of Samancor visiting the Territory, and from discussions he had with senior departmental officers, it was clear that they are going to continue to operate the mine under its current arrangements. The present manager and work force are being retained. There are certainly no plans in place for any changes to the way the company secures its supplies and services from the Northern Territory. That is very important and is probably the most important issue for which we need to ensure continuation.
Production from Groote Eylandt is mainly exported. About a third of it goes down to Tasmania to a company down there called TEMCO, and I believe that Billiton has also purchased TEMCO under the same arrangements that they purchased the mine. Samancor will operate Gemco, I am advised, as an autonomous business and there certainly does not seem to be any reason why the Territory business community won’t continue to enjoy a commercial relationship with that mine, which brings significant benefits to the Territory.
The mine has a life of 30-odd years to go, and that is on present known resources. Obviously, we will continue to ensure that Territory business gets maximum opportunity to gain the benefits of expenditures from that operation.
Last updated: 09 Aug 2016