Estrella Resources Launches Manganese Mining in Timor-Leste
Estrella Resources has officially commenced operations at its Ira Miri manganese project, marking a significant milestone in Timor-Leste’s mining sector. This initiative could represent the country’s first substantial bulk mineral extraction under its modern mining code, with plans to extract up to 30,000 tonnes of high-grade manganese oxide ore. The project follows a recent agreement with the national mineral authority, paving the way for ore extraction and potential revenue generation for the government.
Key Developments in Mining Operations
The agreement signed in early January with the Autoridade Nacional dos Minerais, I.P. (ANM) has set the stage for Estrella to begin mining bulk samples at the Ira Miri site. This development is crucial, as it not only allows for the extraction of manganese ore but also signifies the potential for the government to receive its first mining royalty revenue in modern history. Manganese ore in Timor-Leste is subject to an 8% gross smelter return (GSR), which is notably higher than the typical royalties in Western Australia, which range from 2.5% to 7.5% depending on the ore type.
Estrella’s transition from exploration to production is evident as the company prepares to deliver market-ready material for appraisal and potential sales. The mining operations are being carried out by a local contractor crew, equipped with a fleet of earthmoving machinery that includes excavators, bulldozers, and community-owned dump trucks. This local engagement not only supports the economy but also ensures that the community benefits directly from the project.
Excavation efforts are focused on previously identified high-grade areas, with initial ore exposure expected within days. The mining strategy involves stripping topsoil and overburden to reach the manganese layer, with a maximum pit depth of approximately 15 meters. The project aims to transport the mined manganese 17 kilometers to a barge landing site for export, further integrating local logistics into the operation.
Community Engagement and Future Prospects
Estrella Resources emphasizes the importance of community involvement in its operations. The company is committed to maintaining open communication with local stakeholders, including village leaders and the state-owned national mining company, Murak Rai Timor E.P. This collaborative approach ensures that the local population remains informed and engaged as the project progresses.
Coal shipments to India fall 9% as domestic mining increases
Looking ahead, Estrella plans to finalize the concession transfer into a joint venture with Murak Rai Timor, conduct assays on the freshly mined manganese, and initiate discussions with potential buyers for sales and export. This phase is not merely about extracting a bulk sample; it represents a critical proof-of-concept that could lead to significant cash flow and further development in the region’s mining sector.
As Estrella Resources leads the charge in Timor-Leste’s mining landscape, the upcoming extraction of manganese ore is poised to create ripples in the market, potentially transforming the country’s economic outlook in the critical minerals space.
