Pan African Resources drops $77.4m to buy Tennant Consolidated Mining Group (Tennant Mining)

A South African miner has made its first offshore purchase, securing some prized Territory assets. Read what they bought.

South African miner Pan African Resources has invested $77.4m to buy Tennant Consolidated Mining Group, trading as Tennant Mining, and its extensive Northern Territory assets.

Tennant Mining is developing abandoned gold and copper assets across the Tennant Creek mineral field in the Barkly including constructing a centralised processing plant at the old Nobles Nob mine, about 14km southeast of Tennant Creek.

Tennant Mining managing director and chief executive Peter Main said negotiations with PAR began about 11 months ago with the deal subject to stringent due diligence ahead of purchase.

PAR acquired eight per cent of Tennant Mining in March, with the South African group now securing 100 per cent of the Perth-headquartered company.

“This is PAR’s first non-African investment and it gives Tennant Mining surety from a balance sheet perspective and largely de-risks the project.

“It allows us to grow and develop our own assets base at a much faster rate than we would have normally.”

Work is well underway at Tennant Consolidated Mining Group’s Nobles project.

He said project time frames remain the same.

Construction of the gold processing plant is now more than 55 per cent complete, on track for commissioning in the first half of 2025 with first commercial production in the third quarter of 2025.

The previous Labor Government backed the project through a $10m Local Jobs Fund loan.

The revitalisation is underpinned by high global gold prices which increased from $3500 in July to $4060 on Friday.

About 50 people are currently employed by Tennant Mining and its contractors during the construction phase, involving the relocation of the processing plant from the Great Australian Mine in Cloncurry.

This is a positive for the local Tennant Creek community, the Barkly and the Territory’s mining sector,” Mr Main said.

“A company like PAR investing reinforces Tennant Creek’s history as one of Australia’s highest grade mineral fields and its revitalisation as a prospective mining region, particularly given the gold price.

Tennant Mining managing director Peter Main. Picture: Camden Smith

“PAR has committed to fully support Tennant Mining’s team, our plans, and our commitments, including our Territory Benefits Plan for local jobs and buy local commitments – and to complete our earn-in commitments with our joint venture partner Emmerson Resources Limited.

“It will be business as usual with the Tennant Mining team continuing to operate and run the business and project moving forward.

“The major focus for PAR over the next two to three years is seeing the successful transition of the Nobles Project from construction into a long term commercial production project, along with the growth of 100 per cent owned assets and development of a polymetallic circuit to also process copper and other critical minerals to extend life of mining production.”

This masthead visited TCMG’s project in June to inspect progress on the revitalisation of Tennant Creek’s gold and copper assets.

Tennant Mining will initially process stockpiles and tailings from the Nobles project area before expanding into mining of other sites across the mineral field, ultimately producing up to 65,000 ounces of gold annually.

Mining Minister Gerard Maley welcomed PAR’s entry into the Territory economy.

“This major international investment signals renewed business confidence, poised to drive local economic growth, create jobs, and accelerate the revitalisation of Tennant Creek as a vibrant mining hub,” he said.

Business Minister Robyn Cahill said the deal would deliver Tennant Mining access to international financial and technical expertise and the backing of a mid-tier gold miner worth more than $1.3 billion.

Originally published as Pan African Resources drops $77.4m to buy Tennant Consolidated Mining Group (Tennant Mining)