Lauren Barrett Thursday, 21 June 2012 NORTHERN Territory explorer Northern Manganese says it could soon be back on the exploration path after inking a cooperation agreement with parties representing the interests of Aboriginal people in the state’s Blue Mud Bay area.
The company said the agreement with Baniyala and the Blue Mud Bay steering committee was a “major first step towards successful exploration of the land and water of Blue Mud Bay for manganese”.
The cooperation agreement recognises the BMB parties support for the exploration for manganese subject to compliance with laws and promotes good faith consultations on ways to advance the aspirations of the company and the BMB people.
Northern Manganese had to put its exploration activities in the Blue Mud Bay area on hold in March this year after NT resources minister Kon Vatskalis put into place a moratorium on offshore exploration and seabed mining for three years.
The decision meant exploration applications and applications for mining of bulk materials in coastal waters would not be granted for three years.
The moratorium had contradicted a decision by the federal government to grant the company exploration rights for eight tenements covering 1723sq.km in shallow areas and two islands around Groote Eylandt.
The decision came as a major blow to Northern Manganese, which had injected about $A1.5 million exploring its ground 18 months prior to the deadlock.
However, with the cooperation agreement now in place, Northern Manganese is confident it will be able to resume exploration in the near term as the parties intend to pursue the state government to change its policy on the moratorium to allow for exploration.
If Northern Manganese is successful in its attempts to overturn the moratorium, the company will seek to negotiate with the Northern Land Council.
Northern Manganese managing director Lloyd Jones said the agreement signified the support each of the parties had for one another.
“Northern Manganese support the Blue Mud Bay communities desire to break free of welfare dependence by embracing and exploring all economic opportunities available to them within their communities,” he said.
“Together we will work to ensure that we realise these opportunities whilst respecting Aboriginal culture and the environment.”
Shares in Northern Manganese were unchanged at A6.5c in morning trade
NTM Price at posting:
4.7¢ Sentiment: Buy Disclosure: Held
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