Department of the Legislative Assembly, Northern Territory Government

Mr HAMPTON - 2008-06-10

Just a few days ago, the millionth tonne of manganese from the Bootu Creek Mine left Darwin Harbour. This is great news for the Territory minerals sector, and for our freight and export sectors. Can you advise the House on the effects of this significant milestone and what it means for Territory business?

ANSWER

Madam Speaker, I thank the member for Stuart for his question. As the member for Stuart just pointed out, on Saturday morning I had the wonderful duty of visiting the Port of Darwin to witness the loading of 28 000 tonnes of manganese being loaded on to a ship bound for China. This manganese was mined at Bootu Creek by OM Manganese and represented an historic milestone of one million tonnes that had been shipped to China in less than two years.

Bootu Creek was actually established and commissioned in June 2006. I am pleased to say that it was one of the first mining companies to use the railway to ship its ore to the Port of Darwin.

The other pleasing part about this operation is that they are stepping up production at Bootu Creek. This year, they are expected to mine around 700 000 tonnes of manganese, again, to go to China, and the forward projections are looking very good, indeed. OM Manganese is a very strong contributor and a great player in the Northern Territory economy, especially through direct and indirect employment. Currently, they employ around 210 people on-site - that is, their own employees and also through contractors - and of these 210 employees, around 14% is indigenous. So, this is great news.

The flow-on effects: the money injected supports services that are supporting the mining industry, and that flows into millions of dollars in and around the Territory. Active exploration programs are currently being undertaken so that they can, hopefully, extend the life of the mine. Currently, the life of the mine is around eight or nine years, but they are hoping, with further exploration and with some of the wonderful results they are achieving from this exploration, to elongate the life of that mine. The OM financial contribution for 2008 is forecast at around $150m, which is going into operation capital and exploration costs. A large majority, I am pleased to say, will be spent in and around the Tennant Creek area and also at the Port of Darwin.

Madam Speaker, mining and energy production in the Northern Territory is set to grow to over 30% next financial year to $7.5bn and is now worth around 40% of our GSP. The Territory economy is booming, and that is on the back of the mining, of which OM Manganese is playing a very important role. I congratulate OM Manganese and all those involved with achieving this historic milestone.
Last updated: 09 Aug 2016