Chandler Salt Mine

Contact Details

Daniel McCormick
Business Development Manager - ICN
+61 8 8922 9422

  Locations: NT Australia
  Project Value: $676M
  Project Status: Definitive Feasibility Study
  Project Owner Tellus Holdings Ltd

Project Details

Tellus Holdings Ltd (Tellus) plans to develop the Chandler Salt Mine Project (the project) on pastoral leases about 120 kilometres (km) south of Alice Springs and about 15 km by road to the Titjikala community in the Northern Territory.

The project exploration phase has been fast-tracked by using the results from previous oil and gas exploration programs to identify the resource. 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), 6,600 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, lodged its Notice of Intent in November 2012 and has received its Draft EIS Guidelines in August 2013.

The Chandler deposit is potentially Australia's largest underground multi-mineral rock salt deposit and is a world-class asset. With an expected initial mine life of 25 years, the resource could possibly support Australia's longest life mine as evidenced in Europe where salt mines with similar resources have been mined for  hundreds of years.

There is growing demand in Asia for industrial and edible salt and associated minerals (e.g. potash and magnesium rich fertilisers) providing a potentially ongoing market viability. The voids left from mining 700m below ground in a 200m thick salt bed will be used for a complementary storage business. Namely the storage of equipment and archives and the backfill/disposal of mainly mining and oil and gas sector wastes. This hybrid salt mine/storage business is a safe and tried and tested business model. Around the world there are over 150 projects in thick underground salt beds with close to 500 salt caverns/ mines. North America has over 400 salt caverns/ mines selling mostly industrial salts and the voids left from mining used mostly by the oil and gas industry. In Europe, countries like Germany have 30 salt/fertilizer mines that have been used for backfill. This has resulted in improving the viability of the salt mines, increases investment, jobs and environmental outcomes.

Tellus environmental studies and feasibility studies are in progress. The company is identifying potential parties to assist in the development of the mine and supply chain build and operation. 


Project Documents

Media Releases

30/09/19 Tellus Continues To Progress Chandler Project
Sandy Ridge Project Update July 2019
Sandy Ridge Project Update March 2019
Tellus Appoints New Non Excecutive Director
Tellus Holdings Sandy Ridge Financial Close Update
Australian Government Approves Sandy Ridge Facility
Tellus Systems meet International Standards
Australian Government Approves Tellus Chandler Salt Facility
Tellus Receives $1.6 Million Research and Development Tax Incentive Refund
09/04/18 Innovation - Australia's First Air Dome Cell Cover at Sandy Ridge
11/12/17 Chandler Regulatory Approvals Update - NT EPA Recommends Project Approval Subject to Conditions
01/12/17 Sandy Ridge Construction Planning Update-Contracts Awarded for Site Investigations
30/11/17 Sandy Ridge Construction Planning Update - Preferred EPC and PMC Tenderer Appointed
15/09/17 Tellus Supports Local Community Groups
08/09/17 Tellus Accelerates Towards Operational Readiness
25/07/17 Chandler Regulatory Approval Progress
05/05/17 Tellus' BD and Tech Services Teams Expand
13/04/17 Chandler Regulatory Approval Progress
21/02/17 Tellus Releases Chandler EIS for Public Review
21/02/17 Tellus Chandler EIS Community Information Sessions
07/09/15 Chandler Project Update
07/10/16 Tellus Lodges Draft EIS For Chandler Approvals
02/09/16 Revised Terms of Reference Released for Chandler Proposal
26/02/16 Tellus Signs Salt Salt Offtake Distribution Agreement
10/12/15 Tellus Lodges Darwin East Arm DA
21/10/15 Tellus Appoints Lead ECI
20/11/15 Tellus Signs Equipment Finance MOU
17/04/15 Chandler Salt Wet Pilot Commences
20/04/15 Chandler Salt Dry Pilot Commences
26/09/14 Tellus Awarded Major Project Status
25/09/14 NTG Major Project Status Awarded to Chandler Salt Mine
21/08/14 Tellus Holdings Mining the Territory Conf Pres
2/07/14 Chandler Maiden JORC Measured Resource
11/06/14 Chandler Project Moves Next Stage
16/01/14 Chandler Project Site Visits
16/01/14 Chandler Drilling Successfully Completed
08/11/13 Chandler Project Drilling Contract Awarded
05/05/17 Tellus' Projects Awarded Major Project Facilitation Service by the Australian Government


ECI Tier 1 - Prequalification Factsheet

Work Packages

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Chandler Salt Mine - General Updates20 Sep 201331 Dec 202120 Sep 2020
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EIS Studies - Project Management 

Full scope has been awarded to:

Coffey Darwin