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Mine plans 100 million dollar water pump to stay open
South32's Groote Eylandt manganese mine will spend $100 million on pipelines to pump excess water into the ocean, a move backed by traditional owners and needed to keep the site viable.
In brief
South32's Groote Eylandt manganese mine will spend $100 million on pipelines to pump excess water into the ocean, a move backed by traditional owners and needed to keep the site viable. South32 will spend $100 million to pump up to 80 gigalitres of water yearly from its Groote Eylandt manganese mine into Milner Bay…
South32 tackles water crisis at remote mine
South32's Groote Eylandt manganese mine faces huge financial challenges from ongoing pit flooding. The company plans to spend one hundred million dollars on new water infrastructure to keep operating.
Eighty gigalitres yearly into Milner Bay
GEMCO will build about twelve kilometres of pipelines to pump up to eighty gigalitres of water per year from the mine pit and discharge it into the island's Milner Bay.
Traditional owners and government back the plan
The Anindilyakwa Land Council supports the project and the NT government has approved it with strict environmental conditions. The council has discussed the plan with GEMCO and the NT EPA for more than three years.
Production costs have nearly doubled
South32's production costs have nearly doubled due to excess water management. The company needs to cut about one hundred twenty-nine million dollars out of the business and all next year's forecasts depend on the infrastructure…
Cyclone Megan worsened the flooding problem
The island and mine site were hit hard by Tropical Cyclone Megan in two thousand twenty-four, but heavy rain in multiple wet seasons was also a factor in the ongoing water management crisis.
Further consultation required before work starts
The infrastructure extends beyond GEMCO's mining leases into Aboriginal-owned land. Work cannot begin without traditional owner consent, and further consultation is continuing between the parties.
What it means
South32 will spend $100 million to pump up to 80 gigalitres of water yearly from its Groote Eylandt manganese mine into Milner Bay, addressing water management costs that have nearly doubled production expenses.
