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Carrapateena: Countdown to Production

Carrapateena: Countdown to Production

All images: OZ Minerals. BY ELIZABETH FABRI THE final stage of construction has now kicked off at OZ Minerals Carrapateena copper mine, with just over a year left on the clock before commissioning begins. We chat with OZ Minerals managing director and chief executive Andrew Cole about Phase 2 of the construction campaign, power plans for the mine, and exploration potential further afield. Q. Can you describe the work undertaken at Carrapateena to date? Phase 1 construction at Carrapateena is on schedule and in early April, we received approval from the South Australian and Commonwealth Governments for the Carrapateena project, which cleared the way for mobilisation of Phase 2 of construction from mid-April as scheduled....

Independence Group: Discovery & Delivery

Independence Group: Discovery & Delivery

All images: Independence Group. BY REUBEN ADAMS THE March quarter was a mixed bag for Independence Group, but the miner’s medium to long term fundamentals are sound. The flagship Nova operation continues to ramp up and generate good cash flow, while a $50 million exploration program and downstream processing studies could deliver massive cash flow generation in the years to come. Independence Group (IGO) is transitioning into a cash-generative business, as growing free cash flow from its operations – especially Nova – results in an ever-shrinking debt pile. Building cash reserves is an important part of the IGO strategy. It gives the company flexibility for potential acquisitions, or development options should a $30m exploration program on its...

Bowen Basin Mining: In the Black

Bowen Basin Mining: In the Black

Vitrinite team members with a core sample taken from their Karin deposit. Image: Vitrinite. BY ELIZABETH FABRI BOWEN Basin locals may be quick to talk down another coal boom, but there is no question confidence is returning to the region. An upturn in coal prices is boosting new exploration and development, M&A activity, mine expansions, and prompting companies to reopen shuttered operations. But can recent momentum be sustained? Optimism has returned to the coal-rich Bowen Basin in central Queensland. In late 2016 recovering coal prices signalled hope – dampened only slightly when Cyclone Debbie rocked the region in 2017. And by early this year many Bowen Basin miners were wearing a smile again. Take Anglo American; the miner...

Heron Resources: Blue Sky

Heron Resources: Blue Sky

All images: Heron Resources. BY REUBEN ADAMS HERON Resources’ Woodlawn zinc-copper development is on track to begin commissioning in late 2018. Once in production, the high-grade, long-life Woodlawn will be well placed to participate in a zinc market facing a significant supply shortfall. Reuben Adams spoke with Heron Resources chief executive Wayne Taylor. It must be nice to see Woodlawn in development. It is – it has been a while coming. We got to a place where we had all the studies done and, as a lot of companies do, found the major hurdle was getting the money to make it happen on the ground. We got that done in September last year, so that was a significant...

Centennial Coal: Transition Mode

Centennial Coal: Transition Mode

Centennial fuels about 40 per cent of NSW’s coal-fired electricity. All Images: Centennial Coal. BY CAMERON DRUMMOND IF 2017 was a year of design for Centennial Coal, then 2018 is the year of implementation. The company is tracking well in enhancing its social licence to operate, integrating productivity improvements and new mining systems, operational excellence and production growth, and automation and digital transformation. Owned by Thai-based Banpu, Centennial Coal is one of the largest underground thermal coal producers in NSW, employing more than 1400 personnel across five operating coal mines producing more than 12 million tonnes per annum (mtpa). It fuels 40 per cent of the State’s coal-fired electricity and exports about 40 per cent of...

Newmont: Race to the Top

Newmont: Race to the Top

BY ELIZABETH FABRI ALL signs indicate Newmont Mining could dethrone Barrick Gold as the world’s largest gold producer this year. Newmont’s Australian division has been a key player in the race, kicking goals across its three operations – KCGM, Tanami, and Boddington. Back in 2007, Newmont’s vice-chairman at the time, Pierre Lassonde, told reporters at the Kalgoorlie Diggers and Dealers conference that he hoped Newmont would overtake Barrick Gold (its joint venture partner in KCGM) in the gold space. In 2016, Newmont president and chief executive Gary Goldberg told Bloomberg this wasn’t an area of focus; instead the value that is added to projects and growing margins. “We’re not about getting bigger, it’s about growing margins,” Mr Goldberg...

Doray Minerals: Turnaround Success

Doray Minerals: Turnaround Success

Doray managing director Leigh Junk. Images: Doray Minerals. BY CAMERON DRUMMOND A YEAR on from taking the reins at Doray Minerals, managing director Leigh Junk has overseen a well-executed turnaround strategy, with the company shifting its focus to the ramp up of its new Deflector operation and extending its resource base. Q: What changes have you made at Doray since taking over as managing director? When I started as managing director a little over a year ago, the company had almost $70 million in debt and two operations that were not performing to expectation. The growth and drive for the company in the short term had to come from its operations. For the company to be...

Evolution snaps up Connors Arc

Evolution snaps up Connors Arc

Quartz vein outcrop on Connors Arc’s Aurora Flats. Image: Orion Minerals. BY ELIZABETH FABRI EVOLUTION Mining has agreed to acquire Orion Minerals’ Connors Arc gold exploration project, which is strategically positioned near Evolution’s existing Mt Rawdon, Mt Carlton and Cracow operations in central QLD. The acquisition includes an upfront cash payment of $1.5 million, followed by two payments of $500,000, and a 2 per cent net smelter return royalty over gold produced from the project, with payments capped at $5 million. Evolution Mining vice president Discovery Glen Masterman said Connors Arc was a technically compelling project with multiple and extensive alteration zones, which could be indicative of multiple preserved epithermal gold systems. “The Connors Arc acquisition...

The Interview: MMG Dugald River’s Pierre Malan

The Interview: MMG Dugald River’s Pierre Malan

All images: MMG. BY ELIZABETH FABRI FIRST zinc concentrate production began in November last year at the $US570 million Dugald River mine. Since then, the MMG team and its contractors have been working at warp speed to reach the next milestone; commercial production. We spoke with Dugald River general manager Pierre Malan about how a “leap of faith” during the downturn enabled the project to be achieved ahead of schedule and under budget. Q. How is ramp up progressing and how close you are to reaching commercial production? The project has been going really well. With commissioning ahead of schedule last year, we are, overall, still tracking under budget and ahead of schedule. Late last year we started...

Cadia cuts Newcrest production guidance

Cadia cuts Newcrest production guidance

SAG and ball mills at Cadia. Image: Newcrest. BY CAMERON DRUMMOND NEWCREST has lowered its gold production forecast to reflect the temporary suspension of operations at its Cadia gold project in NSW. Cadia’s production guidance was downgraded to between 560,000oz and 600,000oz for FY18, down from between 680,000oz and 780,000oz. An embankment slump of Cadia’s Northern Tailings Facility had occurred in March, halting production at the mine. Mining was suspended, with processing recommencing at a restricted capacity from 29 March due to limitations of the capacity of the Southern Tailings Facility. In April, the gold miner announced it had received approval from the NSW Department of Planning and Environment to use the first 200m of the old Cadia...

Production payoff for big spender Yancoal

Production payoff for big spender Yancoal

A map of Yancoal’s Mount Thorley Warkworth operation. Image: Yancoal. BY REUBEN ADAMS YANCOAL’S Australian thermal coal sales surged 123 per cent year-on-year in the March quarter, as it enjoys its second quarter of full output from the newly purchased $US2.9 billion Coal and Allied assets. Yancoal, now Australia’s largest independent coal producer, saw equity share of thermal coal sales from its Australian mines jump to 6.97mt from 3.12mt in the year ago period, but still down by 14 per cent from the December quarter. Its equity share of metallurgical coal sales volumes of 2.25mt was a 19 per cent increase on the year prior. In NSW, Moolarben saleable coal production was up 53 per cent on...