The impact of South32 and Anglo American's manganese mine expansion

By Uwear

In an attempt to expand its profitable manganese mine, South32 Ltd has come to terms in principal with traditional indigenous land owners at Groote Eylandt.

Expansion plans for the site located in the Gulf of Carpentaria has not yet received required government approval, but the plan is believed to be able to expand the scale and extend its lifespan.

RELATED TOPIC: Management spotlight: Australian miner South32

A joint venture between South32 and Anglo American, Groote Eylandt’s GEMCO mine was given consent by the Anindilyakwa Land Council (ALC), which may secure future royalties.

 Nigel Scullion, Australia’s indigenous affairs minister, must approve any formal deal between South32 and traditional land owners. However, he has said in a statement that he welcomes the progress made between the two sides in negotiations.

RELATED TOPIC: Why Anglo American sold its Dartbrook coal mine to APC

GEMCO is one of the largest and lowest-cost manganese ore producers in the world. Its features include high-grade ore, open-cut mining operations, its own port facilities located at Milner Bay only 16km from mining operations, as well as a close proximity to Asian export markets.

With a FY2014 production of manganese ore was 4,776 kt (100 per cent basis), GEMCO has a reserve life of 11 years. South32 is in the early stages of assessing projects which have the potential to improve efficiency at GEMCO’s operations and is exploring areas which have the potential to extend the GEMCO mine life.

RELATED TOPIC: How Fortescue Metals is leading way toward first Aboriginal iron ore mine

GEMCO focuses its community development in alignment with the ALC’s 15-year strategic plan, and funds large development projects which are driven by community leadership, and integrated with similar government and land council projects to increase effectiveness.

The current development projects being implemented are targeting improved outcomes for community health, education, traditional owner culture, employment and diversification of the local economy.

Let's connect!  

Check out the latest edition of Business Review Australia!

 

Share

Featured Articles

How India is bucking the global dealmaking downturn

M&A deal volume and value reach record highs in India in 2022, despite slower dealmaking globally – as scope activity and acquisitions in renewables surge

Create C-suite space for the Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 AI predictions for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

Welcome to the new breed of private members' clubs

Leadership & Strategy

Welcome to the New Age of the CISO

Leadership & Strategy

Making the UAE the world’s strongest digital fortress

Technology