Operator of the Peko iron ore and gold project in the Tennant Creek region of the Northern Territory, Elmore, has entered voluntary administration.
Elmore has entered all eight of its subsidiaries into voluntary administration, prompting questions over whether the mine is to be saved or permanently closed.
The announcement was made via a notice from the appointed administrators Martin Jones, Matthew Woods, and Clint Joseph of KPMG late last week.
“The directors of the companies resolved that the companies were insolvent or likely to become insolvent at some future time and that administrators should be appointed to the companies,” the notice said.
“A further update in respect of the companies operations will be released to the market in due course.”
The ABC reported on Friday that the announcement follows four years of reported financial losses for the company, including a loss of just over $23.5 million for 2022–23 financial year.
“Administrators now control the company’s operations and are assessing the company’s financial position,” a letter from KPMG to creditors said.
The ABC reported Barkly MLA Steve Edgington said there were “a whole lot of unanswered questions at the moment.”
Edgington, whose electorate includes Tennant Creek, said it is a bleak day when a mine closes.
“Mining, pastoral [and] tourism have been the backbone of the Barkly for so long… there was certainly a lot of hope that it would be a sustainable operation,” he told the ABC.
Only in its infancy, the first shipment from the mine set sail from the Darwin Port in 2022.
In a separate letter circulated to Elmore employees, KPMG said wages would still be paid and employment will continue during the administration process.
“Once [viability is] determined, we will advise you of our intentions regarding ongoing trading,” the letter said.
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