Department of the Legislative Assembly, Northern Territory Government

Mr McADAM - 2004-11-30

The Adelaide to Darwin railway has had major success in attracting freight in its first year of operation. Can you please inform the House what the Bootu Creek mine will mean for the railway, East Arm Port, and the community of Tennant Creek?

ANSWER

Madam Speaker, it is an important question from the member for Barkly, and something he has made a great contribution towards seeing achieved. There was an announcement this morning that the Bootu Creek mine, 100 km or so north of Tennant Creek, is going to go ahead. There will be a ceremony with traditional owners next week, on 10 December.

It is a manganese mine and, in the first instance, the manganese will be exported to China. The manganese will leave the mine and go via 58 km of road that is already under construction, to the rail, by rail to Darwin, and by ship from Darwin to China. This is a real demonstration of our new trade route going to work.

The mine itself will mean 80-plus jobs, a $30m capital investment towards getting it going and a boost to our exports of $70m per year. For the community of Tennant Creek, already there are local jobs. Contractors have been employed on the site, and there are business opportunities on the supply side for the Bootu Creek mine.

In terms of rail activity - this is very important - there will be 600 000 tonnes of manganese going from the mine at Bootu Creek to the Port of Darwin every year. What that means in extra trains is three to four dedicated extra trains on the rail each week. If you look at what that does to the rail, currently they have moved something like 450 000 tonnes in less than a year. We are more than doubling that with 600 000 tonnes of manganese going on the rail. This really demonstrates the importance of our investment in rail as, what was previously marginal is now viable, because we have reduced those costs of moving the manganese by rail - very important.

We have increased activity on the rail, in the Tennant Creek region and, importantly, at the port. To get that ore to China, this now means one to two bulk carrier ships coming to the Port of Darwin each month and, to support that operation, a government investment of $11.2m on a new bulk loading facility. That is a very important component of having this happen. That bulk loading facility is currently going to design.

The official opening of the mine will take place on 10 December. In the third quarter next year, the mine should be operational. So, look out trade route: we have increased activity on the rail and on the port. What it means is more jobs and more business opportunities. It certainly says that the Territory's investment in this new trade route has been a winner. Thank you, Bootu Creek.

Madam SPEAKER: And certainly good news for Olympia Resources with their garnet mining in Alice Springs
Last updated: 09 Aug 2016