Bootu Creek mining operations to cease, ore processing will continue amid reassessment | NT Independent

Bootu Creek mining operations to cease, ore processing will continue amid reassessment

by | Dec 20, 2021 | Business | 0 comments

OM Manganese Limited will cease its mining operations at Bootu Creek this month after 15 years, according to the company.

Current projections outlined in the company’s quarterly production and market update, state mining activities will be finished by December 31, 2021, with residual ore feedstocks continuing to be processed.

Once the primary processing ends, commercial appraisal of the project’s Ultra Fines Processing (UFP) operations will be undertaken.

“Given the current manganese ore environment, after the main processing plant ceases operations, the company will only enter into standalone UFP operations after a complete commercial reassessment has been undertaken to justify the project’s financial stability,” the report stated.

The company is facing 24 charges over the workplace death of mine superintendent Craig Butler, who was killed after a wall collapsed at the mine site in August 2019. The death could see fines to the compnay of up to $35 million.

OMH Limited owns Australia’s Bootu Creek manganese ore mine which began exploration in 2001 and drilling in 2004. The initial batch of manganese ore was processed and transported in 2006. Ceasing mining this month will see the end of the 15-year mining operation.

In the original design, the Bootu Creek Mining facility could process 550,000 metric tons annually. But the ability to produce 800,000 metric tons annually was accomplished due to equipment upgrades and enhancements.

Demand has slowed down lately, the company indicated. A total of 143,847 tonnes of manganese product was exported through the Port of Darwin in three vessels during the quarter ended September 30, 2021. By comparison, in the previous quarter, 228,829 tonnes of manganese product was exported through the port in five vessels.

OMH’s rehabilitation responsibility includes backfilling the Yaka 4 pit void with a current completion date of December 1, 2021.

 

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