Chandler Project Regulatory Progress

  • On : November 16, 2012

Media Release


Progress on Regulatory Approvals

  • Tellus achieves stage one Mine Management Plan – Exploration Operations approval for its Chandler salt mine project
  • Tellus is planning 10 km of 2D seismic, 1 km2 of 3D seismic and three core wells
  • Tellus achieves signed Exploration Deed with the Central Land Council
  • Notice of Intent to be lodged

Tellus is making good progress on its regulatory approvals and negotiations with traditional owners through the Central Land Council, Managing Director of Tellus Holdings, Duncan van der Merwe said today.

On 17 June 2012, Tellus was granted a Mine Management Plan Exploration Operations (MMP-EO) by the NT Government, Department of Resources (now the Department of Mines and Energy), Mining Environmental Compliance Group for its Chandler salt mine project about 120 km south of Alice Springs.

This will cover seismic work proposed for early 2013. The proposed in-field activity comprises confirmation drilling for mine planning and resource and reserve quantification and consists of 10 km 2D seismic, a square kilometre of 3D seismic and three core wells on Charlotte North.

The Central Land Council is doing sacred site clearance work with custodians towards the end of November along the routes of the proposed mine site, access and haulage roads and Tellus will obtain approvals from the CLC and Aboriginal Areas Protection Authority before drilling starts. The proposed confirmation drilling is on pastoral lease land governed under the Northern Territory Pastoral Land Act. Tellus plans to complete the infield work in Q3 in 2013.

“The project exploration phase has been fast-tracked by using the results from previous oil and gas exploration programs to identify the resource,” Mr Duncan van der Merwe said.

“The oil and gas industry exploration program looked for salt beds and domes as the salt often acts as a trap for hydrocarbons. Historic exploration in the project area includes 145 km of seismic survey (comprising 15 lines), 6600 metres of core drilling (two wells) and about $A6.5 million of historic exploration expenditure.

“Based on this exploration, new core sample analysis and a detailed prefeasibility study it was concluded that the project is technically and commercially viable. Tellus has now progressed to the definitive feasibility study stage,” he said.

A Mining Risk Management Plan (MRMP) associated with the MMP-EO was approved by NT WorkSafe on 8 August 2012.

Pursuant to the NT Environmental Assessment Act and as part of the Environmental Impact Assessment Process, Tellus will lodge the Chandler salt mine project’s Notice of Intent later this week.

An application for a Mining Licence under the Mineral Titles Act will be lodged in early 2013.

About Tellus Holdings

Tellus Holdings Pty Ltd (“Tellus”) is an Australian-owned mining company adding value to underground rock salt. Tellus is the parent of a group of companies involved in the mining, processing and sale of industrial and edible salts, fertilisers and minerals. Potential complementary businesses include storage in voids created by mining.

For further information contact:

Visit: or contact:
Duncan van der Merwe, Managing Director Tel: +61 (0)2 9241-7678
Jane Munday, Michels Warren Munday on +61 0427 880 083