Business news from across the Northern Territory: The latest highlights include the NT Government signing an MoU with South Korea for international mining prospects; and NT Major Events being granted an additional $4 million in funding this coming Dry season. Also making resource news is South32’s Gemco mine facing a period of closure due to Cyclone Megan. In addition, Empire Energy is closer to selling its first gas next year after a highly successful capital raise.

Local economy

NT signs MoU for resource security and international mining prospects

A memorandum of understanding has been signed between the NT Government and the South Korean Government through Korea Mine Rehabilitation and Minerals Resources Corp.

The MoU establishes a broad framework for cooperation based on mutual benefits for the NT and South Korea, as well as boosts trade relationships, with South Korea now the NT’s fourth biggest training partner. The deal came after key international industry leaders and representatives gathered in Darwin recently to discuss opportunities in the NT’s critical minerals sector.

Castile Resources’ Rover 1 project – an underground mine 80 km southwest of Tennant Creek – was also given “major project status” by the NT Government. The project is projected to cost nearly $280 million. It will directly target gold doré, cobalt, copper, and 96.4 per cent magnetite. It is anticipated to generate 160 jobs throughout construction and 120 jobs during operation, the government said.

Local business

NT Major Events has received an additional $4 million in funding

An extra $4 million was granted to the NT Major Events Company to help boost local businesses by attracting more tourists during the approaching Dry season. The latest boost announced as part of the government’s 2024 Budget provided the industry with a total $41 million budget for its 2024 operations.

Major Events Minister Brent Potter said the extra funding was prompted by 2023’s financial rewards. “Last year, the Major Events Company generated $189 million into the Territory economy and we know that $80 million of that was new money. So with this funding boost, we’ll see more events and new events come into the Territory in the next financial year,” Mr Potter said.

The $4 million will be invested in the Events Funding Program. This supports local businesses to deliver sporting, community and cultural events. The latest round of the program in early 2024 provided more than $1 million to 31 local businesses. This included the international film festival and the Top End Gin Festival.

Resources

South32’s Gemco mine is facing a period of closure due to Cyclone Megan

South32’s Gemco mine suffered catastrophic disruption when a bulk cargo ship crashed into the wharf during Cyclone Megan. This made it impossible to load ore for export. During the company’s quarterly meeting, it flagged its Australia Manganese operation had suffered a 13 per cent drop in saleable production. This was in the nine months to March 2024. This was due to the tropical cyclone’s impacts.

The company said its mine could recommence export sales in the third quarter of the 2025 financial year. The cyclone resulted in widespread flooding across Groote Eylandt and significant damage to critical infrastructure, including the wharf and port infrastructure and a haulage road bridge that connects the northern pits of the western leased mining area and the processing plant, the company said in its quarterly report.

“The operational recovery has focused on re-establishing critical services and dewatering targeted mining pits,” the company said in a statement. “Engineering studies are underway on the wharf and haulage road bridge infrastructure restoration. These studies will inform the final schedule and capital costs.”

The Gemco mine is a key provider to NT Government coffers, contributing around $70 million annually in taxes and royalties.

 

Empire Energy closer to selling its first gas next year after a positive capital raise

Key Beetaloo Sub-basin proponent Empire Energy earned $46.8 million in a capital raise after being backed heavily by two US investors. The new capital now allows Empire to drill a new test well. The company said Bryan Sheffield, a longtime investor in Empire and Liberty Energy each invested $7.7 million in the placement.

In addition, Daly Waters, a subsidiary of a US-based private equity firm founded by Mr Sheffield, and Liberty Energy have each individually acquired a 2.25 per cent royalty interest in its EP187 gas asset. This raised $7.7 million.

Empire is now funded to drill a 3km fracture-stimulated horizontal pilot development well in EP187, as well as further progress engineering and preparation for the installation of Carpentaria Pilot Project surface facilities.