AFRICA
A walk on the wild side
JUST before Christmas the managing director of copper miner Mawson West, David Frances, took his wife and two teenage daughters for a trip into the Congo. As you do!
Vale to expand N5
RIO DE JANEIRO, Jan 27 - Vale has received an operation licence for its N5 Sul pit, part of the N5 mine at Serra Norte in Carajás, Pará, Brazil. The new operation would support Vale’s focus on iron ore quality enhancement in Carajás in coming years, the company said.
New CAT record
PEORIA, Jan 27 – Caterpillar has posted its biggest increase in sales since 1947 with 2011 full-year revenues of $US60.138 billion, up 41% from $42.6B in 2011, and profit climbing 83% year-on-year to $US4.93B. Excluding the impact of the acquisition of Bucyrus International, 2011 profit for the NYSE-listed company was $US7.79 per share, up 88% from a year ago.
Quebec rated highly
TORONTO, Jan 27 – Copper One Inc has credited the Quebec Government’s “stable and mining-friendly jurisdiction” for its decision to seek total control of the Queylus copper-gold property in Canada.
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Lonmin ire
LONDON, Jan 27 – Lonmin has expressed frustration at disruptions to mining operations and production by safety stoppages ordered by South Africa’s Mineral Resources Department.
PGM output up
LONDON, Jan 27 – Lonmin reports total refined production by its South African operations was 113,950oz of saleable platinum in the December 2011 quarter, 24.3% higher than the December 2010 quarter. Total platinum group metals production rose 2.3% to 245,950 oz.
Anglo global production
LONDON, Jan 27 – Anglo American iron ore production rose 5% to 12.4Mt in December quarter, mainly due to initial production from Kolomela mine and performance improvement at Amapa.
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Anglo platinum rise
JOHANNESBURG, Jan 27 – Anglo American Platinum clocked up three years of largely trouble-free smelter operations as it recorded a 10% rise in refined platinum production to 710,000oz in the December quarter.
Kolomela's early dividend
JOHANNESBURG, Jan 27 – Kumba Iron Ore says the early commissioning of the Kolomela iron ore mine in South Africa’s Northern Cape Province helped lift production to 11.2Mt in the December 2011 quarter, a 4% rise on the corresponding period.
Lycopodium for Dutwa study
JOHANNESBURG, Jan 27 – African Eagle Resources has selected Australian engineer Lycopodium Minerals to prepare the bankable feasibility study for its Dutwa nickel project in Tanzania.
PanTerra tables offer
SYDNEY, Jan 24 – PanTerra Gold entered a definitive agreement to acquire Vancouver-based Novus Gold Corporation via a one-for-three share issue in British Columbia, Canada.
Doornkop stop
JOHANNESBURG, Jan 27 – Harmony Gold Mining has stopped operations at its Doornkop gold mine near Randfontein, South Africa, to complete investigations into the death of an employee on Wednesday.
Ezulwini falls short
JOHANNESBURG, Jan 27 – First Uranium Corporation has conceded that its Ezulwini underground gold and uranium mine in South Africa will fail to achieve its FY2012 production targets of 70,000-80,000oz of gold and 110,000-130,000lb of uranium.
Noble upgrade on cards
PERTH, Jan 24 – Noble Mineral Resources expects to upgrade resources and reserves at its Bibiani gold mine in Ghana after receiving significant assay results from recent drilling.
Cosmo pivotal
TORONTO, Jan 27 – Crocodile Gold has underlined the importance of its Cosmo underground gold mine in Australia’s Northern Territory, due to reach commercial production in the second half of this year.
Tampakan resource lift
MELBOURNE, Jan 27 – Indophil Resources has revealed an 18% lift in estimated mineral resources for the Tampakan copper-gold project on Mindanao in the southern Philippines, including a “significant lift” in the measured and indicated categories.
La Negra promise
PERTH, Jan 27 – Red Gum Resources says it has been encouraged by early positive indications from initial metallurgical study testwork that will help resource definition at its La Negra polymetallic (zinc, lead, copper and silver) project in northern Chile.
Tobin Hill find
PERTH, Jan 24 – Gold Road Resources is reaffirming its faith in the Yamarna Belt in Western Australia following a new gold discovery at Tobin Hill, just 5.5km from its Central Bore deposit.
Picketed Finning
TORONTO, Jan 27 – Caterpillar customers across Canada have been confronted by picket lines at dealerships and service centres on Thursday as the Canadian Auto Workers Union campaigned for 500 locomotive workers in London, Ontario.
Ferrochrome hike
LONDON, Jan 24 – International Ferro Metals recorded a 71% leap in ferrochrome production of 54,142t for the December quarter from its integrated chromite mine and processing operations in South Africa.
More Coober Pedy magnetite
PERTH, Jan 25 – IMX Resources has announced the discovery of magnetite at its Tomahawk iron ore prospect, 25km south-east of the Cairn Hill magnetite-copper mine near Coober Pedy in South Australia.
More tests for Dutwa
JOHANNESBURG, Jan 26 – African Eagle Resources has ordered pilot-scale hydrometallurgical testing to finalise the atmospheric tank leach flowsheet for its flagship Dutwa nickel project in Tanzania.
Jiangsu expansion study
PERTH, Jan 25 – Galaxy Resources has launched a six-month feasibility study into the possible expansion of its Jiangsu lithium carbonate plant in China into the production of battery-grade lithium hydroxide.
Namibian eyes Hambok
PERTH, Jan 25 – Namibian Copper is set to acquire the Hambok copper-zinc project and a large exploration area in western Eritrea through the purchase of Canadian company Sanu Resources Inc.
Platinum output down
JOHANNESBURG, Jan 26 – Eastern Platinum is hopeful it has put the “negative events” of 2011 behind it after suffering a 26% plunge in December quarter platinum group metals production at its Crocodile River mine on the western limb of South Africa’s Bushveld Complex.
Bullabulling add-on
PERTH, Jan 25 – Auzex Resources and its Bullabulling Joint Venture partner GGG Resources are seeking to build their regional presence with a five-month option to buy the Geko gold project in the Eastern Goldfields of Western Australia.
Viper earns stake
TORONTO, Jan 24 – Viper Gold has earned its 50% interest in the Corongo property, 400km north of Lima in Peru, following the issue of 400,000 shares to Duran Ventures.
Rio in control
LONDON, Jan 24 – Rio Tinto has pushed its way to a majority stake in Ivanhoe Mines, its partner in the Oyu Tolgoi copper-gold project in the South Gobi Desert of Mongolia.
Tanoyan update for Reliance
VANCOUVER, Jan 24 – Reliance Resources has begun preparation of an updated NI 43-101 report on the Tanoyan gold project in North Sulawesi, Indonesia.
Yellowhead on track
VANCOUVER, Jan 26 – Yellowhead Mining is on target to complete the feasibility study for its proposed 70,000t per day copper mine at its Harper Creek project in British Columbia, Canada.
River attraction for Silver Lake
PERTH, Jan 25 – Silver Lake Resources will gain control of the Phillips River gold and copper project in the southeast of Western Australia via a $20M all-scrip takeover of Phillips River Mining announced today.
Strategic permit
PERTH, Jan 25 – Strategic Materials has been granted a permit for Gifford Creek rare earth exploration in the Gascoyne region of Western Australia.
Newcrest output up
MELBOURNE, Jan 24 – Newcrest Mining increased December quarter gold production despite losing more than 30,000 oz from an earth slip that has blocked mining at its Cadia Valley mine in New South Wales, Australia for two months.
West Rand mines to merge
JOHANNESBURG, Jan 24 – Gold One International and Gold Fields are looking at a combined operation to retreat the surface tailings from their mines in the West Rand region of South Africa’s Witwatersrand Basin to recover residual gold, uranium and sulphur.
Alara advances
PERTH, Jan 24 – Alara Resources received provisional environmental approval for the Khnaiguiyah zinc copper project in Saudi Arabia, seen as a precursor to formal ministerial approval.
Alcyone search boost
PERTH, Jan 24 – Alcyone Resources has received an exploration boost at its recently recommissioned Twin Hills mine at Texas in south-east Queensland, Australia, intersecting high grade silver mineralisation in RAB drilling just 2km away.
Ventnor copper hits
PERTH, Jan 24 – Ventnor Resources has received its best copper intersections at the Thaduna and Green Dragon copper project near Meekatharra, Western Australia.
Stonehenge sets sights high
SYDNEY, Jan 24 – Stonehenge Metals has set itself an exploration target of 385-695M pounds of V205 at its Daejon vanadium project in South Korea after reconnaissance surveying confirmed over 10km strike length of mineralisation.
Kingston shines
MELBOURNE, Jan 24 – Navarre Minerals has been encouraged by high grades including visible gold at the start of a diamond drilling program at its Kingston gold project in western Victoria, Australia.
WA uranium policy
PERTH, Jan 24 – Toro Energy is set to be one of the beneficiaries of the revised uranium policy by Western Australian Opposition Leader Mark McGowan.
Cockatoo extension
SYDNEY, Jan 24 – Cockatoo Coal has lifted JORC compliant resources at its Hume coking coal project in the Southern Coalfield of New South Wales, Australia by 288% to 331Mt – 204.9Mt indicated and 126Mt inferred.
Industrea win
BRISBANE, Jan 24 – Cockatoo Coal has extended Industrea Mining Services’ whole of mine contract at the Baralaba South coal mine in the Bowen Basin of Queensland, Australia by two years to the end of 2013. The contract offers expected revenue of $38M a year, with an option to continue into 2014 subject to mine production levels.
Pegasus finds copper
PERTH, Jan 24 – Pegasus Metals has uncovered a new copper province at McLarty Range in the West Kimberley region of Western Australia.
Aura on guidance
VANCOUVER, Jan 23 – Aura Minerals slipped in at the lower end of its revised market guidance with 2011 full year gold production of 160,159oz – 56,286 oz at Sao Francisco mine in Brazil, 43,002 oz at Sao Vicente mine in Brazil and 60,871 oz at San Andres mine in Honduras.
Windfall at lake
VANCOUVER, Jan 23 –Eagle Hill Exploration says positive new results from a 25,000m drill program at Windfall Lake in the Abitibi mineralised belt of northern Quebec, Canada continue to increase known gold zones in areas not previously drilled.
Impala sacks drillers
JOHNANNESBURG, Jan 26 – Impala Platinum Holdings has begun sacking rock drill operators who went on strike illegally over a salary grievance.
Maiden Rosie resource
PERTH, Jan 26 – Independence Group has completed an initial mineral resource estimate for the Rosie nickel-copper-platinum group elements sulphide deposit within its Duketon joint venture with South Boulder Mines near Laverton in Western Australia.
More Bass trouble
PERTH, Jan 26 – Bass Metals has disclosed its Hellyer lead-zinc operation in Tasmania is in danger of becoming “marginal” at current A$ metal price environment following what the company terms a potentially significant deterioration in its financial performance.
Redhill expands holding
VANCOUVER. Jan 26 – Redhill Resources has added 100ha to its Nyakagwe property in Tanzania with the acquisition of an adjoining prospecting licence from Thamani Mines.
Two Rivers death
JOHANNESBURG, Jan 23 – African Rainbow Minerals announced the death of an employee at the Two Rivers platinum mine at the Bushveld Complex, South Africa on Saturday, January 21. The mine is a joint venture with Impala Platinum Holdings.
VIEW FROM THE WEST END
Mixed signals
“IT IS not our abilities that make us what we are, it is our choices.” – Albus Dumbledore.
ASIA DESK
A fraudulent opening
THE latest corporate controversy out of Hong Kong’s resources sector has put a cloud over a $C1 billion dollar takeover of a Toronto-listed coal miner, and has highlighted a new risk for all miners looking to do deals with Chinese companies.
FROM THE CAPITAL
December quarter stars and dogs
USING the best performing stocks from the September quarter as an investment guide would have delivered a superior investment outcome in December. Score one for momentum investing. Meanwhile, despite a weak market, we had a new batch of top performing ‘stars’ as well as losers – the ‘dogs’ – in the December quarter.
RUSSO'S RULES
Beards, bellies and budgets
A NEW year is upon us and that means new year’s resolutions. I imagined mine would be the same as it has been for the last 10 years at least. I make it, I don’t achieve it, so it’s there to make all over again the next year – a very economical approach. Of course its real economy is that by being pre-set it removes any need for greater introspection or reflection that might occur without such a pre-set and well-worn resolution so close at hand.
MINING INTELLIGENCE
Rational planning rationale would be radical
IN PREVIOUS columns I stated that many mine developments are proceeding based on doubtful engineering and reform is needed. It is a macro issue but comprises a series of micro problems. The use of accurate equipment rates in mine plans is certainly one of these micro areas.
AFRICA
Africa rule change will backfire, says Turner
EXPERIENCED Africa operator and company builder Bill Turner is warning that a proposed legislation change by Australian authorities could have a very deleterious impact on the attractiveness and workability of the African continent for exploration and mining companies.
PEOPLE
South America catches the eye of art-loving geologist
WELL regarded resource sector analyst Paul Adams was on the ground in Burkina Faso back when most resource investors hadn’t even heard of the West African country. He and his technically orientated team at DJ Carmichel now have their eyes on another part of the world where they believe big opportunities exist.
COAL
Killara narrows search
LOW profile junior Killara Resources looked at about 200 possible projects in Indonesia over the past 12 months. Earlier this month it decided one of the possibilities merited a closer look, with an agreement in principle reached with the current owner for Killara to acquire a 65% interest. It may turn out to be the jackpot ... and it may not!
SOUTH AMERICA
Lost in translation
THE patience for the underperforming Mirabela Nickel is evaporating and unless this company receives succour from the nickel price, or makes an extraordinary discovery, or has extraordinary success cutting costs, it seems like it could be a struggler for some time. All of which, it’s got to be said, stands somewhat in contrast to the marketing of the company over the years, and the supportive assessments of many analysts over the journey.
ASIA DESK
Next up for Atlantic … bauxite in Vietnam
AS ATLANTIC’s newly commissioned Windimurra vanadium project increases towards its nameplate capacity, managing director Michael Minosora will gradually turn his focus towards the company’s promising but slow-burning Vietnam bauxite venture.
EXPLORATION
Rex looms as key local copper play
WITH Chile and the likes of Peru all the rage these days for many keen on copper-gold exposure, it would seem all too easy for investors to overlook the opportunity on their doorstep in the form of Rex Minerals and its Hillside project in South Australia.
FINANCE
Canada beckons for Crusader
A CANADIAN listing for the Brazil-focused Crusader Resources looks an obvious scenario in the not too distant future as the company closes in on development of the Borborema gold project. All things being equal, an uplift in market value might then be expected based on the performance of Crusader’s TSX peers active in Brazil.
GOLD
Good news and bad for Phillips River holders
NEW management, a new name, a share consolidation, a new development plan, and, after all that ... now a new owner in the form of Silver Lake Resources! The last of the changes could potentially represent the best hope for the shareholders of takeover target Phillips River Mining, though it’s unlikely to represent much of a windfall.
EXPLORATION
Year of the rig
IRRESPECTIVE of what happens on the corporate front, Terry Burgess and the broader market will be keeping a very close eye on what the OZ Minerals’ geology team in South Australia can come up with in 2012.
PEOPLE
Mining people on the move: IronClad, International Goldfields, Australasian, Scotgold, Lodestar, OGL Resources, VDM Group, Forge Group, Bass Metals, Exco Resources, Western Areas
IRONCLAD Mining has appointed Ian McRae operations manager, Chris Mroczek chief geologist, Denis O’Callaghan mine superintendent, and Daryl Gray logistics manager at the company’s Wilcherry Hill iron ore project on South Australia’s Eyre Peninsula.
CONTRACTING
Karara contract close
STAND by for an announcement by Gindalbie Metals on the $A600 million Karara mining contract in Western Australia – and don’t expect to see a Chinese name.
FORUM
Mine closure volume fills a void
MINE Pit Lakes: Closure and Management, recently compiled by Clint McCullough and published by the Australian Centre for Geomechanics, provides an excellent overview of an important topic.
TECHNOLOGY
Crocodiles speed drive to diverless
THE Pilbara has Rio Tinto’s driverless drills and mining trucks, and it now has WorleyParsons’ diverless marine environment monitoring fleet.
TECHNOLOGY
Australian mines embrace auto-guidance
AN AUSTRALIAN manufacturer has won strong endorsement of new underground machine guidance technology over the past 12 months and is now broadening its sales effort.
AUSTMINE
Supply sector consolidation continues
THE company whose name seems to be everywhere at the moment – at least where there is a materials-handling equipment order in mining bulk materials – has put a $A200 million offer on the table for Australia’s Ludowici that has seen the 159-year-old ASX-listed company’s share price double in a week.
AUSTMINE
MST on global recruitment drive
THE Australian mine communications technology company Mine Site Technologies has its sights on further international expansion after making a raft of recent senior personnel appointments.
CONSULTING
Snowden eyes new growth phase
PROUD parents Phil and Viv Snowden are watching the consulting business they started in Perth, Snowden Mining Industry Consultants – now owned by ASX-listed Downer – turn 25 this year.
HEAVY METAL
Heavy Metal briefs: ABB, Soil Machine Dynamics, FLSmidth, Keech, Caterpillar
SUB-SEA mining units employed at the world’s first large-scale submarine mine, off the coast of Papua New Guinea, will feature ABB transformers and switchgear after the engineering giant won a contract to supply the equipment to British manufacturer Soil Machine Dynamics (SMD).
MINING IT
IT notebook: Visualisation Sciences, Codan, CAE
VISUALISATION Sciences Group (VSG) has described the latest version of its 3D visualisation and analysis software for digital rock physics and core analysis as a “major step forward … in functionality and usability”.
HEAVY METAL
Cat plows into Chinese coal market
CATERPILLAR continues to see evidence of China’s domestic coal industry transformation, and of the long-term attractions of its acquisition of Bucyrus, with an order to supply a new automated longwall plow to Lvliang Dongyi Group member Gasification Co Ltd.
HEAVY METAL
Joy, Fletcher bolt together
JOY Global unit Joy Mining Machinery has struck a new distribution deal with JH Fletcher & Co, giving it the right to exclusively sell and service Fletcher equipment outside North America, Australia and Norway, and broadening its mine bolting-machine offering.
HEAVY METAL
Long haul to diamond mine
A LONG-range mine haul truck with purpose-built dump body are on their way from Australia to the Ekati diamond mine in northern Canada.
