Tuesday 1 August 2006

by Chris Carter
NT News

THE TERRITORY'S Browns Oxide mining project has been given "ultimate support" from the Federal Government as it moves towards becoming a major global cobalt producer.

Federal Industry Minister Ian Macfarlane yesterday announced the project, located near Batchelor, was awarded Major Project Facilitation status.

The formal recognition will see minerals explorer Compass Resources fast-tracked through bureaucratic red tape, such as environmental evaluations, by the Federal Government.

Compass Resources technical director Rod Elvish said the status would smooth the way towards the mine's establishment.

"This is a huge boost for the company and we're delighted to be recognised in this way," he said. "It's the ultimate support that one can get for a major project of any nature."

Browns Oxide will produce 10,000 tonnes of copper and 800 tonnes of nickel yearly. It will also annually mine 1000 tonnes of cobalt, about 2 per cent of annual world supply.

The Federal Government approves Major Project Facilitation status based on the following criteria:

SIGNIFICANCE -- the project must have at least $50 million invested in capital and must be able to produce good economic benefits for Australia;

A NEED to go through Federal Government approvals and legislation;

THE PROJECT executive must be adequately resourced financially to go through approval processes.

Federal assistance is provided through Invest Australia, a Federal Government agency aimed at attracting foreign investment for Aussie businesses.

Invest Australia resource industries general manager Mark Durrant said: "Through their status the Australian Government will collectively work to get small processes done as efficiently as possible."

The MPF status expiry date is July 31, 2009.