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China-US deal boost for coal trade

China-US deal boost for coal trade

AUSTRALIAN coal producer Whitehaven Coal sees a silver lining for global coal markets from the signing of the first phase of a trade deal between China and the US on Wednesday. Whitehaven Coal said in a production update to the ASX that the easing of China-US trade tensions should improve market conditions for metallurgical coal, a key ingredient in steel production in China, and for thermal coal used in power stations to generate electricity. “The metallurgical coal market recovered in late 2019 from the lows experienced mid-2019,” the company stated. “The dynamics of the steel market are impacted by the trade tensions between China and the US, so the signing of the Phase 1 trade deal should have a welcome…

New drilling at Sandstone Gold

New drilling at Sandstone Gold

MIDDLE Island Resources starts 2020 with the announcement of a major drilling campaign at its Sandstone gold project in central WA. A wholly-owned subsidiary situated 400km NW of Kalgoorlie, Sandstone was acquired by Middle Island in 2016, which had a major interest in its 600ktpa gold processing plant. Originally opened in 1890, the site was acquired by Troy Resources in 1990, which worked the 4.4t open pit of ore grad 3.6g/t until 2010, producing 508,000oz of gold. With near record Australian gold prices, the company has made the decision to target 17 identified prospects and deposits, mainly located on existing permitted tenure and all within 5km of the processing plant. The campaign comprises a sequential series of aircore (AC), reverse…

Sprott invests in Victorian gold

Sprott invests in Victorian gold

KALAMAZOO Resources, an Australian gold explorer with projects in Victoria, has attracted investment from Canadian gold bull Eric Sprott and Canadian-listed company Novo Resources, which has several Pilbara gold projects. Sprott and Novo will each subscribe to 10m shares in Kalamazoo at a price of 40c/share to raise $8m for Kalamazoo’s drilling programs in the Castlemaine, South Muckleford and Tarnagulla Central gold projects in Victoria. Kalamazoo chairman and CEO Luke Reinehr said in a statement to the ASX that he was pleased to welcome Mr Sprott and Novo as investors. “The investment of $8m by Novo and Eric Sprott is a terrific endorsement of our Central Victorian Goldfield’s strategy to explore smarter, using new technologies and innovations in a low…

Lithium shares on the rise

Lithium shares on the rise

SHARES in lithium have soared, with Galaxy Resources up 24pc, Orocobre Ltd up 34pc and Pilbara Minerals posting a rise of 19pc. Mineral Resources also increased 2.4pc to $17.39. The boost for the lithium market comes as the Chinese government announced yesterday that it would hold back on reducing subsidies to the electric vehicle industry. Industry and Information technology Minister Miao Wei said that the subsidies, which have been cut steadily since 2018, will not be cut this July. This follows a marked drop in sales of electric vehicles since the subsidies, first introduced in 2009, began to be phased out. The surge is also hitched to Tesla’s delivery of its first Chinese made Model 3 cars. Tesla has revealed…

Resolute closes Ravenswood deal

Resolute closes Ravenswood deal

RESOLUTE resources (ASX: RSG) has inked definitive agreements for the $300m sale of its Ravenswood gold mine in Queensland to Golden Energy and Resources. The cash will be split up into a $100m upfront payment and up to $200m in potential payments contingent with gold prices, future gold production from the mine, and the investment outcomes for the mine for EMR Capital. This includes up to $50m linked to the average gold price over a four-year period, and up to $150m linked to the investment outcomes of Ravenswood for the EMR Fund through upside sharing payments. Since purchasing the mine in 2004, Resolute has processed more than 40mt ore, resulting in about 2moz gold. The company said that there would…

South Flank ore plant on track

South Flank ore plant on track

GLOBAL engineering firm Fluor has announced the erection of 1500 tons (US) of modules in the BHP South Flank ore handling plant in WA. This plant will be the world’s biggest iron ore processing plant once operational. BHP announced the project at 50pc completion in October 2019 with the first ore targeted for 2021. The operation has an expected life span of 25 years. Fluor Mining and Metals president Tony Morgan said he was proud of what had been accomplished by the BHP and Fluor integrated team approach. The project committed to employing indigenous and local workers which has had a positive effect on the completion. More than 9000 people are estimated to be engaged in the South Flank project…

Resolute in talks to sell Ravenswood

Resolute in talks to sell Ravenswood

AUSTRALIAN-LISTED gold company Resolute Mining has confirmed media reports that it is in exclusive talks with a potential buyer for its Ravenswood gold mine in Queensland. Responding to Australian media reports, Resolute Mining said in a statement to the ASX that it had entered into exclusive negotiations with private equity firm EMR Capital Management for the sale of the mine. Negotiations between Resolute and EMR Capital on the sale are ‘significantly advanced’ and could net the gold miner up to $300m, comprising $100m upfront and a deferred payment of $200m. The deferred payment of $200m could vary as it is subject to a number of factors, including future gold prices, production rates and investment outcomes for Ravenswood. The talks between…

Fatality at Curragh Coal mine

Fatality at Curragh Coal mine

A 33-YEAR old mine worker became trapped in machinery and suffered critical injuries at the Curragh Coal mine in Northern Queensland yesterday, putting mining safety back into the spotlight. This is the eighth death in two years in the Queensland mining sector. Emergency crew were called in but were unable to save the worker. Queensland Mines Inspectorate and the CFMEU were in attendance on site and operations will be suspended while the investigation takes place. Condolences were offered to the man’s family by all parties concerned, including acting Mines Minister Mark Ryan and industry lobby group Queensland Resources Council. It has been reported that the mineworker was employed by CIMIC Thiess, a contractor at Curragh for 16 years. The mine…

Hunter Valley: A red-hot go

Hunter Valley: A red-hot go

IT’S been a hive of activity in the Hunter Valley over the past few months. The region’s coalfields contain largely thermal and soft coking coal. Mines near the eastern edge of the basin are spread along the Hunter Valley from Newcastle in the south to Muswellbrook in the north, most of which are open-cut. Both soft coking and thermal coal products are produced from mines such as Hunter Valley Operations and Bulga. With the NSW Independent Planning Commission giving United Wambo the green light on August 29, the region will now be bolstered by another massive open-cut pit. Meanwhile, Mount Arthur has welcomed a new chief executive in Adam Lacey, and the Newcastle Coal Infrastructure Group (NCIG) is expecting a…

New chapter for Anglo Australian

New chapter for Anglo Australian

ANGLO Australian (ASX: AAR) has kicked off 2020 with a bang, finalising a capital raising of $550,000, resuming works at the Mandilla gold project and restructuring the management team in order to review and evaluate all its projects. The $550,000 capital raising was completed through the placement of about 5.3m shares at 10.5c per share. At 10.5c, the issue price represented a premium of 12.9pc to the last price the shares were traded at, prior to the company entering a trading halt on January 8. The company issued the maximum number of shares that it could within the existing placement capacity, and said that the proceeds of the share placement would be used to kickstart work programs at the Mandilla…

Boonanarring: A strong start

Boonanarring: A strong start

THE 100pc-owned, high-grade, zircon-rich Boonanarring mineral sands project, 80km north of Perth, exceeded nameplate capacity in the second month of operation in January 2019. The company achieved profitability in Q1 and was cashflow positive in Q2. At Q3, the company had produced 201.4kt heavy mineral concentrate (HMC) for the year, with full-year guidance lifted to 260-280kt HMC, which the company said reflected the “better than expected operation performance”. The company’s ore processing rates had benefited significantly from the installation of a larger trommel at the feed preparation plant in August, which allowed for an 11pc increase in Q3 to hit 874kt. Image Resources managing director, Patrick Mutz, said that the success of the project in its first year of production…