Tag Archives: GEMCO

Thiess re-enters the Northern Territory with GEMCO manganese contract

Base metals, Energy minerals, Mine operation news, Mining services, , , , , ,

Thiess has been awarded a three-year contract with GEMCO, a manganese operation on Groote Eylandt, Northern Territory, owned jointly by South32 and Anglo American.

The mining services contract, valued at approximately A$120 million ($79 million), marks Thiess’s re-entry into the Northern Territory.

Thiess says it is committed to efficient and safe mining operations, sustainability, and local community engagement and employment.

Thiess Group Executive Chair and CEO, Michael Wright, said: “This award demonstrates Thiess’ commitment to delivering sustainable mining solutions for our clients, strongly supporting the further development of the local community. For Thiess, the continued diversification into different commodities needed for the energy transition is a key part of our strategy, with manganese playing a crucial role in steel production and having the potential to replace cobalt cathodes in lithium-ion batteries.”

The three-year deal, with the potential for a two-year extension, encompasses a range of services critical to GEMCO’s manganese operation. Thiess will supply, operate and maintain the equipment for the pre-strip mining operations, as well as undertaking the design and construction of support infrastructure, including workshops and related mobile maintenance facilities.

Thiess Group Executive Australia West, David Greig, said: “This contract win represents a significant milestone for Thiess as we re-enter the Northern Territory.

“This contract award is a testament to the collaborative efforts of our Australia East and West regional teams, showcasing the strength and synergy within Thiess. It reflects our ability to leverage expertise from across our company to deliver exceptional outcomes for our clients.”

This contract win follows the scope awarded to FleetCo earlier this year, which included the provision and major servicing of excavators, trucks and ancillary equipment.

GFG Alliance to take over TEMCO manganese alloy smelter following South32 pact

Metallurgy, Mineral processing, Steel and iron ore, , , , , , , , , , , ,

South32’s association with the Tasmanian Electro Metallurgical Company (TEMCO) is set to come to an end after it agreed to sell its stake in the manganese alloy smelter to an entity within the GFG Alliance.

The announcement from South32’s Groote Eylandt Mining Company (GEMCO) said completion of the transaction was subject to approval from Australia’s Foreign Investment Review Board. Upon satisfaction of this condition, GFG will make a nominal payment to GEMCO to acquire 100% of the shares in TEMCO, it said, without naming an acquisition price.

As a condition to the completion of the transaction, the parties have entered into an ore supply agreement from GEMCO to TEMCO.

The smelter, in Tasmania, Australia, is run by the Samancor Manganese joint venture, owned 60% by South32 and 40% by Anglo American.

South32 says TEMCO uses ore shipped from its GEMCO operations in the Northern Territory of Australia and produces ferromanganese for steelmaking. Most of the alloy produced is exported to customers in Asia and North America, with the remaining sold to steel producers in Australia and New Zealand.

South32 CEO Graham Kerr said the agreement represented another milestone for South32 as it continues to reshape its portfolio.

“Today’s agreement follows an extensive review of options regarding the future of our manganese alloy business,” he said.

“The transaction and our ongoing supply of ore to TEMCO will see the smelter, first established in 1962, continue to operate into the future.

“Looking forward, we are confident that GFG, a current TEMCO customer, is well placed to operate the smelter, with the acquisition representing an opportunity to further vertically integrate its steel business.”

The transaction does not include the Samancor Manganese JV’s South African manganese alloy smelter, Metalloys, which has separately been placed under care and maintenance, South32 added.

Alliance stays in the air with South32 Cannington, GEMCO contract

Base metals, Mine operation news, Mining services, Precious metals, Steel and iron ore, , , , , , , ,

Alliance Aviation Services says it has entered a new airline services contract with South32, as agent for each of its Cannington and GEMCO routes.

Alliance will be the sole supplier for these services, according to the company, continuing a relationship with the mine sites that began in 2006.

The extension, from 2020-2030, was won through a competitive tender process and is testament to Alliance’s safety record, on time performance and competitiveness in the marketplace, according to the ASX-listed service provider.

Lee Schofield, Alliance’s CEO, said: “Alliance is delighted to be continuing the provision of these services for both Cannington and GEMCO mine sites from Townsville, Cairns and Brisbane. This new contract will see Alliance flying a minimum of 35 sectors per week.

“For the next 10 years Alliance will also be servicing South32’s charter requirements from Darwin. This will result in a significant increase in our permanent presence in the Northern Territory, which in turn should provide significant new opportunities for Alliance, particularly in tourism.”

GEMCO, in the Northern Territory of Australia, is an open-cut mining operation, producing high-grade manganese ore that is shipped to South32’s Tasmania manganese alloy plant and around the world.

The Cannington underground silver-lead mine, in Queensland, is made up of a 3 Mt/y underground mine and processing plant (pictured).