news article

Jobs go as gold mine closes
By Eric Tlozek
June 21, 2005
From:
Forty jobs will go when a gold mine closes in Tennant Creek in September.

Giants Reef will shut the Chariot mine after finding a feasibility study had overestimated the size and grade of the gold deposit.
Chief executive Joe Ariti said the company was trying to find jobs for its local staff at the soon-to-open Bootu Creek manganese mine.

"We are working to ensure as many of our people as possible are able to join that company," he said.

"I'm not really sure what the impact on the town will be."

Giants Reef had its Australian Stock Exchange listing suspended in May.

The Chariot deposit was the company's only operating site and Giants Reef will be re-classified as a mining explorer rather than an operator.

It has suspended operations at smaller deposits around Tennant Creek, including the Cat's Whiskers and Edna Beryl sites.

The company's treatment and processing plant at Warrego will be shut down until Giants Reef starts a new operation.

Mr Ariti said the multimillion-dollar treatment plant would be maintained.

"To build a new facility such as Warrego would cost millions of dollars, but this way it will only cost us $100,000 to $200,000 to start up again," he said.

The Chariot mine was plagued with ground surface problems and equipment damage since it opened with much fanfare in 2003.

Tennant Creek mayor Rod Swanson said the withdrawal of Giants Reef was offset by job gains from Bootu Creek.

"While it is going to be sad to see Giants Reef mothballing its operation, I don't think it's too serious for the town because of Bootu Creek coming on line," he said.

He said there were "a few positive things happening in Tennant", such as Bootu and the rehabilitation of the Peko mine.