QMEB ยป Disaster shuts down mine until 2025
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Disaster shuts down mine until 2025

South32 mine
South32 mine

Severe weather will suspend a North Australian resources operation for almost a year.

Tropical Cyclone Megan’s 200km/h winds and 681mm of rainfall is likely to delay production at Groote Eylandt mine until the New Year.

South32 does not expect to export any product for the rest of 2024 and before the March quarter of 2025.

“The intense weather system resulted in widespread flooding across Groote Eylandt and significant damage to critical infrastructure, including the wharf and port infrastructure and a haulage road bridge that connects the northern pits of the western leases mining area and the processing plant,” the proponent said in its latest quarterly report.

Engineering studies are underway on restoring the wharf and haul road bridge infrastructure.

“These studies will inform the final schedule and capital costs. Based on our preliminary schedule estimate we expect to recommence wharf operations and export sales in the third quarter of the 2025 financial year,” the report said.

“[Our operation] maintains property damage and business interruption insurance. We are working with our insurers to assess the impact of Tropical Cyclone Megan and expected insurance recoveries.”

For now chief executive officer Graham Kerr will focus on the “safety and wellbeing” of mine workers and the broader Groote Eylandt community.

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