South32 (ASX:S32) has resumed shipping manganese from its flagship Groote Eylandt Mining Company (GEMCO) operation, much to the relief of the Northern Territory Government.
The miner suspended operations at GEMCO, which is one of the world’s largest manganese mines and a major contributor to the Northern Territory economy, following the impacts of Tropical Cyclone Megan in March 2024.
The cyclone was an intense weather system that produced record rainfall of 681mm and some of the strongest wind gusts recorded in 20 years.
South32 says it flooded mining pits and caused significant damage to infrastructure, resulting in the temporary suspension of operations at GEMCO.
Over 317,000 hours were spent on the wharf recovery and rebuild, which required more than 970 tonnes of steel and 740 tonnes of concrete to be removed from the seabed.
The 14-month hiatus on exports from the operation put a serious dent in the value of GEMCO’s mineral exports, which in 2022-23 were worth $1.526 billion and fell to $992.6 million in 2023-24, according to the Northern Territory Government.
The value of export sales is forecast to fall further in 2024-25 due to the lack of exports in the first three quarters, which the government estimates will result in a $170 million drop in mineral royalty revenue to the territory.
Minister for Mining and Energy Gerard Maley says getting GEMCO back online is a critical factor in the Northern Territory’s projected 16% increase in royalty revenue for 2025–26, from $298 million to $346 million, which will help fund vital infrastructure and services across the territory.
“The Finocchiaro CLP Government remains committed to supporting the long-term success of the resources sector and ensuring projects like GEMCO continue to deliver strong returns for territorians,” he says.
The Northern Territory Government estimates GEMCO’s manganese exports will be worth $4.8 billion in the 2025-2026 financial year.
Write to Angela East at Mining.com.au
Images: South32
