The Territory is a veritable goldmine – literally. The precious metal, along with a wealth of other minerals occurs in abundance.
The Northern Territory is a veritable goldmine - literally. The precious metal, along with a wealth of other minerals, occurs in abundance. A 2005 international survey of over 150 mining companies ranked the Northern Territory eighth in the world in terms of mineral prospectivity.
Territory mining operations already account for much of Australia’s exports of uranium, bauxite and manganese. Of all the land area of the Northern Territory, an estimated 43% is considered highly prospective and explorable for mineral resources – the second largest area of all Australian states. With modern exploration methods yet to be applied to much of this terrain, the potential is exciting.
Mining is the single largest industry in the Northern Territory; its value accounted for more than 20% of the Territory’s Gross State Product in 2004-05, compared with 4% of the national GDP.
Mineral processing includes the manufacturing of alumina. The nominal value of mineral production and processing is estimated to have increased by 0.8 per cent to $1395 million in 2004-05.
Current major developments include:
- Alcan’s $2 billion expansion of its alumina operations at Gove, nearly doubling alumina production capacity from 2.0 to 3.8 million tons per annum.
- GEMCO at Groote Eylandt operates the world’s largest manganese mine, producing 13 per cent of the world’s requirements. In 2004, the mine reached record levels of manganese production (3 million tonnes pa) an achievement that was largely attributed to significant increases in Chinese steel production. The company now plans to further increase its output, to 4 million tpa, by de-bottlenecking the mine's beneficiation process.
- Bootu Creek Resources has opened a major manganese mine at Bootu Creek near Tennant Creek, which is placing 600,000 tonnes of export freight on the AustralAsia Railway per annum.
- Compass Resources' Browns Oxide Project, including cobalt, copper and nickel, as well as long-term development of oxide ores, has obtained the necessary approvals and is expected to begin production near Batchelor next year.
The Northern Territory’s most significant mineral resources include:
- bauxite - Australia’s third-largest bauxite mine, near Gove
- gold - major operating mines in the Tanami Desert and Pine Creek areas
- manganese - the world’s third-largest producer of manganese ore, at Groote Eylandt
- zinc, lead, silver - one of the world’s largest known ore bodies, at McArthur River mine
- magnesite - a major resource in the Batchelor area
- lead, cobalt, copper, nickel, silver - a major deposit in the Batchelor area
- diamonds - prospective indicators for the North Australian Craton
- uranium - deposits at Ranger, Jabiluka and Koongarra
Mineral Exploration
The Territory Government’s exploration initiatives focus on multidisciplinary geoscientific studies of the Territory’s major geological terrains. Major programs include extensive airborne geophysical surveys, and the compilation of regional geochemical datasets over known mineral belts and highly prospective, but under-explored, greenfield areas.
The drive to explore the Northern Territory is escalating with a significant increase in exploration, up 31% to $55.6 million – the highest level recorded since 1999-2000. Enquiries for geoscience data have risen three-fold in the past two years. Commodities being targeted are mainly gold, uranium, diamonds and base metals followed by iron, bauxite and nickel. International companies are requesting briefings, with over 30 Asian-based investors seeking briefings in the last 6 months.
This has lead to an increase in Exploration Licence Applications, and renewed interest in gold, base-metal and diamond exploration. Over the next four years, the Northern Territory Government’s Geological Survey Division will be providing industry with the latest high quality geoscientific data. Particular attention will be given to the western Arunta region, which links the gold-producing areas of Tennant Creek and the Tanami and has been largely overlooked.
The Division assists in smoothing the way to the Titles Office, which expedites the titles process, and with over 800 of these being granted in the past three years it’s clear the service is working. Support is also offered for indigenous engagement through the Indigenous Business and Industry Services Division known as IBIS.
For project facilitation investors can contact the Resource Development and Policy team. Skilled professionals are available to assist in the progress of mining development proposals to authorisation stage and help connect potential investors to the right people in the Northern Territory Government.
For more information about opportunities in the Territory’s mining industry go to www.minerals.nt.gov.au or e-mail topendsecret@nt.gov.au
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