GEMCO wedged in Groote Eylandt manganese mine royalty dispute between ALC and GEAT

An NT company plans to break new ground by ‘no later than January 2025’ but says a dispute over which Traditional Owner group gets what must be resolved first.

GEMCO says it ‘requires that the GEAT eastern areas claim be resolved prior to the commencement of mining by GEMCO on the land the subject of the eastern leases’.

The company behind GEMCO’s Groote Eylandt manganese mine says it is on track to break new ground in January despite being caught in the middle of a royalties dispute.

Documents filed with the Supreme Court and obtained by the NT News reveal the company is seeking judicial intervention to settle the dispute between the Anindilyakwa Land Council and the Groote Eylandt Aboriginal Trust.

GEMCO currently pays royalties to both Traditional Owner groups but it says the ALC and GEAT have been unable to agree as to how those royalties should be divvied up in respect of its eastern leases and southern licence.

The mine is in the process of winding down but GEMCO plans to start mining operations on the eastern leases “no later than January 2025”, while if realised, the southern licence could extend its life beyond 2030.

“In order to ensure that GEMCO complies with its contractual obligations with respect to the GEAT royalty, GEMCO requires that the GEAT eastern areas claim be resolved prior to the commencement of mining by GEMCO on the land the subject of the eastern leases,” the writ reads.

Late Anindilyakwa Land Council chairman T Wurramarrba and South32 president Ricus Grimbeek at a land access agreement signing ceremony on Groote Eylandt in 2016.

“GEMCO takes no position as to the resolution of the GEAT eastern areas claim, other than its desire for the GEAT eastern areas claim to be resolved.”

The writ also contains references to the southern licence in identical terms.

But in response to questions from the NT News a spokesman for GEMCO’s parent company South32 said the court proceedings would have no impact on current or future planned operations.

“South32 confirms that Groote Eylandt Mining Company Pty Ltd has commenced proceedings in the Supreme Court of the Northern Territory seeking a declaration in relation to royalties payable by GEMCO to the Anindilyakwa Land Council and the Groote Eylandt Aboriginal Trust,” he said.

“The subject of the proceedings relates to the allocation of relevant royalties between GEAT and the ALC, not the total amount of royalties payable by GEMCO, which is unaffected by these proceedings.

“As the case is listed before the court it is not appropriate for us to comment any further at this stage.”

Both the ALC and GEAT were contacted for comment.