Elmore, operator of the Peko iron ore and gold project in the Tennant Creek region of the Northern Territory, has entered voluntary administration.
The company 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.
Barkly MLA Steve Edgington, whose electorate includes Tennant Creek, said there were “a whole lot of unanswered questions at the moment”.
“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.
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.
Only in its infancy, the first magnetite shipment from the Peko mine set sail from the Darwin Port in 2022.
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