Elmore mining company sends first shipment of magnetite from Peko Mine

A rehabilitated 1930s mine has produced its first shipment of a precious mineral. Here’s what the move means for the Territory.

Elmore managing director David Mendelawitz says the first shipment of magnetite leaving Top End waters is a milestone. Picture: Floss Adams.

After just 12 months, the products from a rehabilitated Tennant Creek mine are ready for export.

The first shipload of 25,000 tonnes of magnetite will head to China to be used in the manufacturing of steel.

The Peko Mine, a copper-gold mine located 14km south east of the town, was found in 1934 and began operation in 1949 before closing in the 1970s.

The government announced the restoration of the mine would occur in March of 2021, under the Mining Management Plan, with 3.75 million tonnes of tailings to process.

Peko Mine near Tennant Creek as it looked in the 1950s. Picture: Supplied.

Mining company Elmore took over the project late last year.

Managing director David Mendelawitz said it was pleasing to see the first of many shipments heading out of the Darwin Port.

“The first ore on a ship is a great milestone for every bulk producer,” he said.

“We first put boots on the ground in Peko just over a year ago now - and through Covid - we’ve built this project and it hasn’t been easy.

“We’re a little company, we’ve always been cash strapped, we’ve had a border closure.

“We’ve had escalation in every single thing in terms of building this.”

But Mr Mendelawitz said the company was looking forward to the future of the mine, with monthly shipments of more than 30,000 tonne expected for the next seven years.

Recently there was so much magnetite inside this storage shed at East Arm Whartf it was almost touching the roof. Picture: Floss Adams.

“This is hopefully the first of many many (shipments) and there is potential beyond the seven years as well,” he said.

Mr Medelawitz said the potential included mining the area for cobalt and copper and even the possibility for further exploration in the Northern Territory.

“We have plans to start extracting cobalt early next year,” he said.

“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.”

Mining Minister Nicole Manison said the locals in Tennant Creek were seeing benefits from the mine’s rehabilitation, with the creation of jobs and reduction of tailings from the mine.

Mining and Industry Minister Nicole Manison says the minerals sector news is a sign of confidence as Territorians work to achieve a $40b economy by 2030. Picture: Floss Adams.

“Thirty jobs is a significant amount of jobs in a town like Tennant Creek — it’s a great opportunity for people to give them well paying jobs doing some terrific work in the mining industry in their hometown, rather than having to fly out to other parts of the country,” she said.

Originally published as Elmore mining company sends first shipment of magnetite from Peko Mine