Add Category
Mining is set to return to the Northern Territory's former centre of gold production, with the Nobles Nob operation to reopen near Tennant Creek.
Resources company Tennant Mining has started works to build a processing plant at the site, 14 kilometres south-east of the town.
Gold was mined at Nobles Nob from the 1930s until 1985, with it once considered Australia's richest gold deposit.
Managing director Peter Main said restarting the mine could bring in 65,000 ounces of gold annually, starting from next year.
"It's got a resource base of 1.1 million ounces and a reserve base of 400,000 ounces," he said.
"Average costs are at around $1,500 per ounce, so when you look at the current gold price there's a fair bit of margin in there."
Gold prices have hit record highs in 2024, with spot prices worth about $3,500 per ounce.
Mr Main said he expected to have the project paid back within 12 months.
Tennant Creek's only other operating mine, the Peko mine, closed after its owner went into voluntary administration in February.
How will this help the economy?
The project will initially focus on mining historical stockpiles of waste rock and tailings at the Nobles open-pit mine before the development of open-cut and underground mines begins.
The first phase of the project is expected to take eight years, but ongoing exploration could extend the program beyond 15 years.
The project is expected to be worth $69.9 million to the Northern Territory economy each year.
Mining Minister Mark Monaghan said the development was a boost for the Barkly region.
"We're backing projects like the Nobles project and its processing facilities because it will create hundreds of work opportunities for Territorians and deliver a major boost to the Territory's economy," he said.
"The resources and mining sector is critical to the Territory's economy and that's why we are working with companies so they can grow and deliver the biggest benefits to the Territory."
What jobs will this create?
Construction on the site will create about 80 jobs, but once the project is underway about 160 jobs will open up.
Mr Main said Tennant Mining was hoping to have a workforce of at least 25 per cent local workers.
"But there is a limited supply here and that's the issue we're grappling with," he said, adding that the company hoped to have at least 16 per cent Indigenous employees.
"Already we're at 14 per cent, so we've hit the ground running."
Key stories of the day for Australian primary producers, delivered each weekday afternoon.