Gemco’s mine set to renew sales after half-a-billion Cyclone Megan insurance payout

A Territory mine has resumed trading - with the help of a massive insurance payout - after six-months rainfall fell within three days. Read the latest.

Miner South32 has resumed manganese sales at its Groote Eylandt mine, 14 months after the facility was devastated during Tropical Cyclone Megan.

Last year’s enforced shutdown cost the Northern Territory Government tens-of-millions of dollars in royalties as well as its broader impact on the national economy.

The rebuild was bankrolled by a massive insurance payout understood to have been the largest single insurance payment ever in the Territory.

In its March quarter statement South32 reported it had received US$350 million in insurance payments in the nine months ended March 2025.

At the current exchange rate, that’s about $545 million Australian dollars.

The company replaced contractors but retained its permanent workforce for the duration of the sales freeze.

A statement released by Groote Eylandt Mining Company (GEMCO) on Monday, said the first shipment of manganese was being loaded and was expected to leave the newly constructed wharf “in coming days”.

Aftermath image of tropical cyclone Megan.

“Export sales are expected to increase over the June 2025 quarter and return to normalised rates over FY26.”

TC Megan was an intense weather system that produced record rainfalls and some of the strongest wind recorded for 20 years.

Over the course of the storm 681mm (about 27-inches) of rain fell at the mine, flooding pits and causing significant damage to infrastructure.

The most telling blow occurred when a bulk handler smashed into the wharf, forcing exports to be suspended while the lengthy process of repairs was underway.

The enormity of the repair is reflected by some of the figures released by Gemco, with 317,000 estimated hours invested in the recovery and rebuild.

More than 970 tonnes of steel and 740 tonnes of concrete were removed from the seabed.

In September 2024 the repair bill had reached $171 million, although an updated figure is not yet available.

Groote Eylandt and Gemco infrastructure was severely damaged by tropical cyclone Megan.

A critical bridge connecting the northern pits of the Western Leases mining area and the processing plant was also rebuilt.

South32 chief operating officer Vanessa Torres said the re-opening of sales represented months of work.

“This is a major milestone in Gemco’s recovery that follows many months of tireless work by our people,” Ms Torres said.

“Tropical Cyclone Megan severely impacted operations at Gemco, requiring a recovery effort of immense scale and complexity.

“Our teams have done an outstanding job in rebuilding damaged infrastructure and preparing to resume export sales. I’d like to thank everyone that has been involved to date, including the Anindilyakwa Land Council and the NT Government for their support.

“Throughout this activity, we’ve remained focused on the safety and wellbeing of our workforce and the Groote Eylandt community, including by supporting the community with their recovery efforts.”

The resumption comes as reports emerge that Gemco’s Cyclone Megan shutdown impacted the development of a manganese alloy smelter in Tasmania.

In the 2025-26 Territory budget, the resumption of production at Gemco was given as a contributing reason NT gross state product was expected to grow by 7.8 per cent.

Before the shutdown, Gemco contributed about $70 million annually to the Territory’s own-sourced revenue.