South32 rules out Groote Eylandt manganese exports for rest of 2024 after cyclone damage

The MV Anikitos was berthed at Groote Eylandt’s wharf during Cyclone Megan. (Supplied)

Groote Eylandt’s manganese mine will not export any ore until January 2025 at the earliest following extensive damage from a tropical cyclone that hit the island in March.

Tropical Cyclone Megan dumped a record 681 millimetres of rain on the Gulf of Carpentaria island on the weekend of March 16 and 17, with wind gusts more than 100 kilometres per hour recorded.

A bulk carrier berthed at Groote Eylandt, which had just been loaded with 40,000 tonnes of manganese from South32’s GEMCO mine, was not moved ahead of the approaching cyclone.

For two days, the MV Anikitos was smashed into the wharf by the cyclonic winds and 4-metre-high seas, causing large parts of the structure to fall into the sea, rendering it unusable.

In a quarterly update to the ASX on Monday, South32 confirmed mining at GEMCO remained suspended and there would be no manganese exports until sometime between January to March 2025.

“Based on our preliminary schedule estimate, we expect to recommence wharf operations and export sales in Q3 FY25,” the quarterly report said.

“Alternative shipping options are being evaluated to mitigate the impact of the wharf outage.”

Heavy rainfall and flooding also destroyed parts of the mine’s haul road and bridge connecting mining pits to the processing plant.

Cost impacts not disclosed

South32’s did not disclose any cost impacts from the cyclone damage and the suspension of mining in its quarterly update.

“Engineering studies are underway on the wharf and haulage road bridge infrastructure restoration. These studies will inform the final schedule and capital costs,” South32 said.

“These options may establish partial ore export capability in advance of the wharf restoration.

“Further detail and anticipated capital costs will be provided once the recovery plans are sufficiently progressed.”

The GEMCO mine was worth $1.5 billion to South32 in the 2023 financial year and produces about 15 per cent of the world’s manganese, according to the NT government.

The damage to Groote Eylandt’s wharf has caused fuel shortages, with diesel and petrol only available one day per week, and diesel purchases limited to $50 worth per vehicle.

South32 said diesel and food was currently being delivered to Groote Eylandt via its barge facility.

“We are continuing to prioritise diesel for power generation,” a South32 spokesperson said.

“Use of the barge facility to deliver diesel is an interim measure and work is continuing to establish additional supply capacity.

“We remain focused on the safety and wellbeing of our workforce and the Groote Eylandt community.”