Cyclone temporarily shuts South32 manganese mine in Gulf of Carpentaria

South32 is restoring fuel supplies to its Gulf of Carpentaria manganese operation after Tropical Cyclone Megan damaged key infrastructure.

South32 is working to restore fuel supplies to its giant Groote Eylandt manganese operation in the Gulf of Carpentaria after Tropical Cyclone Megan damaged a jetty and other key infrastructure.

South32 said operations at its Groote Eylandt Mining Company (GEMCO) remained temporarily suspended due to the impacts of the cyclone including damage to a wharf by a heavy ship. It is understood the vessel collided with the wharf, which is used to supply diesel fuel for power for the mine and the local community.

Due to the damage, South32 is withdrawing guidance for its Australia manganese business and will provide a further update later this month. The company owns 60 per cent of GEMCO, with the remaining 40 per cent held by Anglo American. The open-cut operation is claimed to be the largest and lowest-cost manganese ore producer in the world.

NT Police Superintendent Sonia Kennon said the vessel was berthed at the wharf when the collision took place, suffering hull damage that caused leaking on board. “The vessel that was attached to the wharf at the time of the storms is still identified as being stable and still in location,” she said.

South32 said the safety of it people and the community on Groote Eylandt remained its highest priority. “Importantly, our workforce is safe and there have been no recordable injuries to personnel at the operations.”

Initial assessments have identified flooding in the mining pits, as well as significant damage to a critical haul road bridge that connects the northern pits of the mining area and the processing plant. Significant structural damage to the wharf and port infrastructure has now also been confirmed.

The company said further assessment of the full impact of the damage was ongoing with plans to return to safe operations as soon as possible. “Alternative shipping arrangements are also being evaluated,” it said.

GEMCO is proposing to extend the life of its manganese mine on Groote Eylandt by developing the Southern Lease Mining Project.

Existing mining operations include the areas known as the western and eastern leases. The project will involve the development of an additional mining area that will be integrated with the existing mining operations and will extend the mine life by around three years. GEMCO plans to mine up to 15 million tonnes of manganese ore from the project area, using the same methods as the existing operations. South32 shares fell 4.17 per cent to $2.99.

Originally published as Cyclone temporarily shuts South32 manganese mine in Gulf of Carpentaria