Estrella Resources has fired the starting gun on what could be Timor-Leste’s first real economic bulk mineral extraction under the country’s modern mining code. Diggers are now turning the sod at the company’s Ira Miri manganese project, chasing up to 30,000 tonnes of high-grade manganese oxide ore.
The new flurry of activity follows the early January inking of an agreement with the country’s public institution, the national mineral authority Autoridade Nacional dos Minerais, I.P. (ANM), clearing the way for ore extraction at Ira Miri for market appraisal.
The agreement marks an important milestone in Ira Miri's development. The framework gives Estrella the green light to mine bulk samples and ready them for sale, unlocking what is almost certainly the first taste of mining royalty revenue the government has seen in modern times.
Manganese ore attracts an 8 per cent gross smelter return (GSR) in Timor-Leste’s royalty system. That take is similar to, although a bit higher than, Western Australian manganese royalties, which typically vary between 2.5 and 7.5 per cent, depending on the nature of the crushed ore, the concentrate or the sold metal.
The program marks a pronounced inflection point in the company’s transition from explorer to hands-on producer-in-waiting.
It will deliver the project’s first market-ready material for appraisal, potential spot sales and export trials, while crucially enabling real-world testing with international offtake partners seeking low-impurity manganese feedstock.
The heavy lifting at the pit is being handled by an entirely local Timor-Leste contractor crew, which has rolled in with a serious fleet of earthmoving gear.
The fleet comprises three excavators, a loader, a backhoe, a support digger, two bulldozers and a dozen community-owned dump trucks fitted with mud chains to tackle the wet-season pit and road conditions.
Estrella Resources managing director Chris Daws said: “Estrella continues to lead the way in the virtually unexplored region of Timor-Leste and I am thrilled to see the diggers lining up at the high-grade and highly prospective Ira Miri Manganese project. Through this market sample, the Company will have the ability to sell and export up to 30,000 tonnes of ore.”
The pre-strip is being driven across multiple mining benches simultaneously, accelerating the push through topsoil and limestone overburden towards the manganese horizon, with first ore exposure tipped within days.
Estrella’s in-house geo’s and engineers are also riding shotgun on site to log detailed metallurgical, quality and commercial data as the manganese comes out of the ground.
Additionally, external surveyors are on permanent duty, with initial 12-hour day shifts slated to be extended within a week to include night shifts.
Excavation will centre on previously drilled high-grade sweet spots, including points where the drill intercepted 8.05m at 53 per cent manganese and 11.97m at 28.9 per cent manganese.
The pit shell has been designed to a maximum depth of about 15m, with the total excavation amounting to about 85,000 cubic metres.
Topsoil is being stripped and stockpiled for later rehabilitation, while other pre-stripped overburden is being benched outside the pit outline, in line with the company’s environmental and regulatory playbook.
From pit to port, the manganese will be transported 17 kilometres by truck to the old Lautem airstrip and the barge landing site of a former fish-processing facility, where it will be loaded for transfer to offshore bulk carriers.
Estrella says that engaging the local community remains the heartbeat of the operation. Local contractors mean local pay packets and the company is tracking safety, traffic management and ongoing consultation with various parties and agencies to keep everyone in the loop.
These include village leaders, the ANM, Murak Rai Timor E.P. - the country’s state-owned national mining company, established in 2023 to manage and develop the country's mineral resources - and other stakeholders.
The engagement track record is strong and locals remain actively involved as the project advances.
The company says the next steps include completing the concession transfer into the Estrella-Murak Rai Timor JV company, assaying the fresh-mined manganese to compile a marketing-grade product specification sheet and ramping up buyer discussions for sales and export.
Plainly, this is a pivotal phase for the company. It’s not just about a bulk sample – it’s also a proof-of-concept milestone that will convert Ira Miri’s high-grade, low-impurity manganese into tangible tonnes and potential early cashflow.
With Timor-Leste’s mining framework now being road-tested in real time, and Estrella positioned as the front-runner, the project is quietly building momentum towards something much bigger in the critical minerals space.
With first ore just days away – the manganese market might just feel a few ripples from the Timor Sea sooner than expected.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
