BHP Billiton Ltd has closed the Groote Eylandt manganese ore operation in the Northern Territory (NT) due to Tropical Cyclone Paul.

Groote Eylandt Mining Company Pty Ltd (GEMCO), jointly owned by BHP Billiton and Anglo American Corporation, is one of the world's leading suppliers of manganese ore.

"The operations remain closed today (Monday), as the weather is closely monitored," BHP said in a statement emailed to Reuters.

The mine produces more than 3.8 million tonnes annually, or about a quarter of the world's total.

Joint venture operator BHP holds a 60% stake in the project, with Anglo American holding the remaining 40%.

Earlier today, the Bureau of Meteorology (BOM) said that the Category 2 cyclone was currently close to the NT coast and is expected to move inland and weaken slightly early on Tuesday.

The weather bureau has warned that the cyclone could produce destructive winds of up to 140 kilometres per hour on the coast near Cape Shield as the it moves inland.

"Gales with gusts to 110 kilometres per hour are currently being experienced between Nhulunbuy and Numbulwar, including Groote Eyland," the bureau said.

Separately, US major ConocoPhillips , which operates the Darwin liquefied natural gas (LNG) project in the region, said it would monitor the storm's path but that the facility was running normally.