Mining is set to make a comeback in the Northern Territory’s former gold hotspot, with Tennant Mining reopening the Nobles Nob mine near Tennant Creek.
The company has begun constructing a processing plant 14 kilometres southeast of the town. Gold extraction at Nobles Nob dates back to the 1930s and continued until 1985, once earning the title of Australia’s richest gold deposit.
Peter Main, Managing Director of Tennant Mining, announced that the mine could produce 65,000 ounces of gold annually starting next year. Peter Main reported that the company had 1.1 million ounces of resources and 400,000 ounces of reserves. “With average costs around $1,500 per ounce and current gold prices at approximately $3,500 per ounce, the profit margins are substantial.”
Gold prices have soared to record highs in 2024, reaching about $3,500 per ounce. Main is optimistic that the project will pay for itself within a year. This comes after the Peko mine, the only other operational mine in Tennant Creek, shut down when its owner entered voluntary administration in February.
Economic Impact
The project will initially focus on processing historical stockpiles of waste rock and tailings at the Nobles Nob open-pit mine, followed by the development of open-cut and underground mines. This first phase is expected to last eight years, with potential exploration extending the program to over 15 years. The project is projected to contribute $69.9 million annually to the Northern Territory’s economy.
Mining Minister Mark Monaghan hailed the development as a significant boost for the Barkly region. “We support projects like Nobles Nob because they create hundreds of jobs for Territorians and significantly bolster the local economy,” Monaghan stated. “The resources and mining sector is vital to the Territory’s economy, and we’re committed to collaborating with companies to maximise benefits.”
Job Creation
The construction phase will create about 80 jobs, with an additional 160 jobs expected once the project is operational. Main emphasised Tennant Mining’s goal of employing at least 25 per cent local workers. “However, the limited local labour supply is a challenge we’re facing,” he noted, adding that they aim for at least 16 per cent Indigenous employees. “We’ve already achieved 14 per cent, so we’re off to a good start.”
This reopening marks a significant development for the Northern Territory, promising economic growth and job opportunities in the region.
Conclusion
In conclusion, the reopening of the Nobles Nob gold mine by Tennant Mining marks a pivotal moment for the Northern Territory’s economy. With gold prices at record highs and substantial reserves at their disposal, the project not only promises significant profits but also stands to inject millions annually into the local economy. The creation of hundreds of jobs, alongside efforts to employ local and Indigenous workers, underscores its role in fostering community development. As operations commence, the project is poised to reestablish Tennant Creek as a key player in Australia’s mining sector, bringing renewed prosperity to the region for years to come.
