NT mining: Tennant Creek’s Peko mine enters administration
Another Territory mine has bitten the dust less than one year after its finalised purchase for a meagre $30 million. What happened in the lead up to the collapse.
Northern Territory
Don't miss out on the headlines from Northern Territory. Followed categories will be added to My News.
WA-based Territory explorer Elmore Ltd has been placed in voluntary administration less than a year after it finalised purchase of the Peko Iron project near Tennant Creek.
Administrator Martin Jones from KPMG announced on the ASX that Elmore’s directors had determined the companies were insolvent or likely to become insolvent “at some future time”.
Matthew Woods, Clint Joseph and Martin Jones have been appointed as voluntary administrators.
It is unclear how many jobs have been lost in the shutdown.
A Perth-based contract mineral processor and developer, Elmore commenced its $30m Peko purchase in July 2022 and finalised the acquisition last July with plans to design, build, and commission the project’s mining and processing operations.
The first shipment of ore was sent to China from Darwin Port in October 2022.
Former managing director David Mendelawitz said at the time the company had battled through Covid-19 and border closures to secure the first shipment, and that others would follow.
He said the company was initially focused on producing iron magnetite at Peko, but planned to produce copper, cobalt, and gold from a tailings deposit within the project.
“This is hopefully the first of many shipments and there is potential beyond the seven years as well,” he said.
“We have plans to start extracting cobalt early next year. Very soon after that we’ll do copper and get it out as soon as possible. Hopefully later next year.
“We’ll definitely be looking around Peko in time, we know that the minerals are there as well but we have to find them — at the moment we’re focused on Tennant Creek.”
Also in July 2023, Peko announced it hoped to raise up to $3m through a share purchase plan to help fund development at its Tennant Creek asset.
Gold and copper were found by prospectors Joe Zaczinski and Bill Bohning about 14km from Tennant Creek in 1934 and the prospect was named after Joe’s dog, Peko.
Mining ended in the 1970s and the mine closed in 1981.
In March 2021 the NT Government announced mine restoration would occur under its Mining Management Plan, beginning with processing 3.75m tonnes of tailing.
In November, Mr Mendelawitz was replaced as managing director by Andy Haslam.
The company’s third and final shipment of ore left Darwin Port in October 2023.
The new year has been challenging for the Territory’s resources sector with lithium miner Core halting mining at its Finniss lithium deposit in January. The Peko closure means the NT has now only six operating mines.
More Coverage
Originally published as NT mining: Tennant Creek’s Peko mine enters administration
Dry zone declared for Red Centre community – but they can still drink
Months after a Red Centre community performed legal gymnastics in order to drink in their own homes, a neighbouring community has now done the same – declaring a dry zone, while still able to have a beer. Find out more.
School shut, staff ‘withdrawn’ from community after serious incident
A Red Centre school has been shut and employees ‘withdrawn’ from a community after a serious incident, the department of education says. Read the latest.