After a hiatus of more than two decades, large-scale gold mining is back in play in the Northern Territory’s Tennant Creek region.
Traditionally Africa-focused gold producer Pan African Resources (LSE:PAF) has, via last year’s US$54.2 million all-scrip acquisition of private company Tennant Mines, started commercial production at its Nobles gold operation.
The acquisition marked Pan African’s expansion into Australia. Across its portfolio of operations, the company produces in excess of 200,000 ounces of gold each year.
Tennant Creek sits about 1,000km south of Darwin and 500km north of Alice Springs.
The Tennant Creek Mineral Field is considered to be one of the highest grade goldfields in Australia and previously one of the largest producers of gold and copper for the Northern Territory.
The field was discovered in the early 1930s and, according to the Northern Territory Geological Survey, was the last of the major Australian mineral fields found by prospectors. It was mined until the early 2000s when the gold price hit a low of around US$277 ($432) an ounce in January 2002.
During that time the field produced 5.5 million ounces of gold, 348,000 tonnes of copper, and 1.9 million ounces of silver.
Pan African CEO Cobus Loots says the company assessed many projects across Africa and beyond for its next generation of growth, and found value and opportunity in Tennant Mines.
The $94 million project is expected to deliver an average of 60,000 ounces of gold annually over the initial eight-year life of the mine and create more than 160 ongoing jobs over the next two years as the operation ramps up.
Tennant Mines Managing Director Peter Main says one in six of the roles will be filled by Aboriginal territorians, almost all from the Barkly region.
“We’ve spent more than $12 million with 212 territory businesses, including over $7.3 million with 102 Barkly suppliers and $1.4 million with 23 Indigenous enterprises, six of which are owned by Traditional Owners right here in Tennant Creek,” Main says.
The first phase of the Nobles operation includes processing existing stockpiles, before expanding to a series of open-cut and underground mines, which is expected to increase production to around 100,000 ounces per year over the medium term.
An expansion is planned down the track to extend the mine life beyond 15 years.
Minister for Mining and Energy Gerard Maley says the start of production at Nobles is a “significant boost for regional economic development” as the Northern Territory Government rebuilds its economy.
“The Finocchiaro CLP Government is getting on with the job of rebuilding the economy and restoring certainty for the resources industry,” Maley says.
“2025 is our year of action, certainty and security and Tennant Creek’s new gold mine is proof that the territory is open for business.”
Gold mining in the Northern Territory generated $1.4 billion in production value in 2023-24. Total mineral production in the same period was valued at $4.32 billion.
The value is expected to be higher with gold prices now sitting at record levels around $5,093 an ounce.
There are 18 projects in development in the Northern Territory with a combined potential capital spend of $6 billion that could create over 3,400 direct jobs and more indirect opportunities across the regions.
Write to Angela East at Mining.com.au
Images: iStock
