Mr BALCH - 2001-02-27
Giants Reef Mining Ltd has just announced that it made a successful takeover bid for Normandy Tennant Creek Pty Ltd, a wholly owned subsidiary of Normandy Mine Ltd. What are the implications of this takeover for Tennant Creek and its local gold mining industry?
ANSWER
Mr Speaker, this is another example where government does work with industry to ensure the increase of jobs and activity. I can confirm Giants Reef made a very successful offer for Normandy Tennant Creek, and that is subject, obviously, to the normal due diligence and formal documentation, including my approval for the transfer of tenements.
But the purchase secures for Giants Reef all of Normandy Mining Tennant Creek tenements and their assets, including equity in the high-grade Chariot gold deposit. Now, the takeover will elevate Giants Reef from being a junior player, a junior explorer, to a profitable gold producer. Giants Reef’s new acquisitions, when added to its existing tenements, will give this local Territory company effective control of the Tennant Creek mineral field. This is excellent news for the local gold mining industry, and also for the people of Tennant Creek. Giants Reef has advised it is fully committed to an early development of the Chariot and the Edna Beryl gold deposits, and they are targeting production to commence by January next year. That means new jobs will be created immediately, with 50 or 60 jobs expected to be created in the next 12 months as the mine is developed and moves into production.
I am also very pleased to advise that, as a Territory company, Giants Reef is committed to local employment and all - all - of its employees will be based in Tennant Creek. In fact, the chairman of the board has made a commitment to live in Tennant Creek, and to make sure that the board meets in Tennant Creek. And that has been the case with Giants Reef since its beginning.
On the basis of existing proven reserves, gold mining operations are expected to last for at least four to five years. The company is certainly very confident of further exploration success, and it believes that the new discoveries they make will continue to extend the life of gold mining in the Tennant Creek area. That view also accords with the government’s own assessments, which were supported, and are supported, by the very promising geophysical data which has been acquired as part of the government’s $16m five year exploration initiative. I have spoken about that initiative in this House a number of times. This initiative is attracting new interest from exploration companies and further developing the Territory’s minerals potential.
Mining has played a leading role in the history of the Territory and, despite its ups and downs, is certainly still amongst the major contributors of jobs and export revenue. I would like to congratulate Giants Reef and its hard working general manager, Nick Byrne, on this very important new acquisition. It will certainly give a new lease of life to gold mining in Tennant Creek. It will help maintain the town’s very proud mining history and this government certainly looks forward to working closely with the company as it seeks to develop the Territory gold mining industry for the benefit of all Territorians. In contrast, I might add, to the attitude of the Labor opposition which works very hard to prevent the development of any initiative in the Territory as it moves in areas relating to the environment, in regards to native title issues and a number of other areas to continually frustrate the work of this government to provide opportunities for Territory companies to grow and create jobs.
We will not resile from the fact that we govern on behalf of all Territorians and we will continue our very active commitment to creating jobs and activities in this Territory for Territorians.
ANSWER
Mr Speaker, this is another example where government does work with industry to ensure the increase of jobs and activity. I can confirm Giants Reef made a very successful offer for Normandy Tennant Creek, and that is subject, obviously, to the normal due diligence and formal documentation, including my approval for the transfer of tenements.
But the purchase secures for Giants Reef all of Normandy Mining Tennant Creek tenements and their assets, including equity in the high-grade Chariot gold deposit. Now, the takeover will elevate Giants Reef from being a junior player, a junior explorer, to a profitable gold producer. Giants Reef’s new acquisitions, when added to its existing tenements, will give this local Territory company effective control of the Tennant Creek mineral field. This is excellent news for the local gold mining industry, and also for the people of Tennant Creek. Giants Reef has advised it is fully committed to an early development of the Chariot and the Edna Beryl gold deposits, and they are targeting production to commence by January next year. That means new jobs will be created immediately, with 50 or 60 jobs expected to be created in the next 12 months as the mine is developed and moves into production.
I am also very pleased to advise that, as a Territory company, Giants Reef is committed to local employment and all - all - of its employees will be based in Tennant Creek. In fact, the chairman of the board has made a commitment to live in Tennant Creek, and to make sure that the board meets in Tennant Creek. And that has been the case with Giants Reef since its beginning.
On the basis of existing proven reserves, gold mining operations are expected to last for at least four to five years. The company is certainly very confident of further exploration success, and it believes that the new discoveries they make will continue to extend the life of gold mining in the Tennant Creek area. That view also accords with the government’s own assessments, which were supported, and are supported, by the very promising geophysical data which has been acquired as part of the government’s $16m five year exploration initiative. I have spoken about that initiative in this House a number of times. This initiative is attracting new interest from exploration companies and further developing the Territory’s minerals potential.
Mining has played a leading role in the history of the Territory and, despite its ups and downs, is certainly still amongst the major contributors of jobs and export revenue. I would like to congratulate Giants Reef and its hard working general manager, Nick Byrne, on this very important new acquisition. It will certainly give a new lease of life to gold mining in Tennant Creek. It will help maintain the town’s very proud mining history and this government certainly looks forward to working closely with the company as it seeks to develop the Territory gold mining industry for the benefit of all Territorians. In contrast, I might add, to the attitude of the Labor opposition which works very hard to prevent the development of any initiative in the Territory as it moves in areas relating to the environment, in regards to native title issues and a number of other areas to continually frustrate the work of this government to provide opportunities for Territory companies to grow and create jobs.
We will not resile from the fact that we govern on behalf of all Territorians and we will continue our very active commitment to creating jobs and activities in this Territory for Territorians.
Last updated: 09 Aug 2016