Pine Creek residents devastated at news Frances Creek iron ore mine will close

PINE Creek locals are devastated at news the Frances Creek iron ore mine will close - ripping about 300 jobs from the town.

Pine Creek

PINE Creek was built on the back of mining. Gold, then tin and now iron ore.

Territory Iron closing down their operations at the Frances Creek mine close to Pine Creek. The Workers village in Pine Creek.

But in what has been labelled “devastating” by the town’s longest resident and the 2005 Northern Territorian of the Year, Eddie Ah Toy, the small town’s Frances Creek iron ore mine will shut down production by November.

READ: ABOUT 1100 JOBS TO GO FROM GOVE

Mr Ah Toy’s grandfather came to the town in 1880 to work in the first mine. Mr Ah Toy, 76, worked with his dad and his family owned the town’s store for 59 years, leasing it out last year.

“I think the town’s devastated. Devastated,” he said.

“I mean what would a town feel when you get news like that? Something that was going as strong as that and contributing to the economy and then they say they are pulling the pin on it.”

He said Territory Iron operations manager Darren Gibcus told a meeting last Friday the company would drop from 300 workers to about 20 by the end of the year. Mr Ah Toy said in that time the company would mine and stockpile ore but not crush and process. But a new $10 million crushing plant is still being built.

The miner’s intentions remain unconfirmed with no response to inquiries from the NT News yesterday. Its parent company The Noble Group is based overseas.

READ: CONTAMINATED SLURRY SPILLED AT RANGER URANIUM MINE

“It’s the price of the ore. At $120 a tonne they make a profit. Between $105 to $110 they more or less break-even but they are down to $94 now, or whatever it is,” Mr Ah Toy said.

“Last May the company lost $6.5 million in production in the month of May … even though their production was full on and everything was going well.

“I hope that the iron ore comes good again so they can continue.

“When we lose about 300 people it is going to have a big impact of the town.”

Mr Ah You said workers dropped in June from 300 to 280, would drop this weekend to 240, by next month to 120 and 20 by the end of the year.

Territory Resources Minister Willem Westra Van Holthe said he had not received any formal communication from the miner that it intended to stop production so would not make comment.