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By Cameron Drummond COPPER miner Sandfire Resources has been busy in 2016, increasing production at its DeGrussa mine and upgrading exploration results inside its Greater Doolgunna project. Sandfire intends to build on strong cash flows developed from its high-grade DeGrussa copper-gold mine in a year where it has reduced its debt from $120 million down to $75 million. A high grade deposit find in the surrounding Doolgunna region is also being explored, with positive initial results for future mining capability.  DeGrussa The DeGrussa copper-gold mining venture near Wiluna – 900kmnorth of Perth in the state’s Mid West – has been a shining star for Sandfire in a depressed copper market. It is also the recipient of a government-funded solar array project…

By Samantha James WHILE the recent rise and fall of the Pilbara economy has been well documented since the iron ore price peaked in 2011 and dropped to record lows in 2015, green shoots are emerging. Covering 502,000 square kilometres in northern WA, the Pilbara is synonymous with prehistoric landscapes, red dirt and its vast mineral deposits – especially iron ore. Before the area became pivotal to the state and national economy, the export of iron ore was banned due to its apparent scarcity. It was not until 1960 that the embargo was lifted and mining began in earnest. Up until this point WA iron ore production was just 10mtpa – by 1970 this figure had reached 100mtpa, and continued to grow. Since the first…

By Cameron Drummond A recently granted environmental protection license at its rare earth project near Dubbo has given Alkane Resources 1 billion reasons to be excited for the  future. Alkane started 2016 with its head held high. The Perth-based company boosted profits for the half year to December 31 by 90 per cent – bolstered by high gold prices and lower production costs – and will use this cash flow to help fund its $1 billion Dubbo Zirconia project (DZP). The company has two major projects underway in rural NSW; the DZP rare metals and rare earths mine and the nearby Tomingley gold operation (TGO), as well as interests in the surrounding region. In February this year, Alkane managing director Ian…

Fortescue Metals Group has reduced debt by US$1.7 billion in the past 12 months. Images: Fortescue Metals Group. By Samantha James FORTESCUE Metals Group has been buoyed by iron ore price increases in recent months after a depressing fiscal 2015 that saw the company scramble to cut costs and service its huge debt pile. The iron ore miner surprised the market in 2016 with a slew of positive announcements, including a potential partnership with Vale SA, a reduction in debt by US$577 million and increased shipments for the March quarter of 42 million tonnes of iron ore. Fortescue is the world’s fourth largest iron ore producer, with mining hubs at Chichester and Solomon in WA combining to produce more than 160…

By Cameron Drummond THE allocation of government funding for mineral exploration and company tax cuts in this year’s Federal Budget has been welcomed by mining industry groups amidst tough economic conditions. The Minerals Council of Australia commended the budget’s strong growth policy and its move to lower company tax rate to 25 per cent for all businesses by 2026. “ balances a careful approach to spending, the maintenance of a strict approach to tax integrity and lays out a medium term plan to promote investment and growth,” Minerals Council chief executive Brendan Pearson said. “The move to a lower company tax cut will, over time, improve the competitiveness of our tax system and promote investment and well-paid jobs, including…

Low iron ore prices and insurmountable debt has forced Arrium into administration. Image: Whyalla News. By Samantha James IN early April, when Arrium asked its lenders – Australia’s four banks, several global banks and US bondholders – for a US$927 million life line to save it from going under, it hardly expected them to reject the package presented by alternative asset manager GSO Capital Partners. The lenders did, however, and pushed the struggling company into administration owing its creditors more than $2.8 billion. Arrium’s 1.2 million tonnes per annum steel plant at Whyalla on South Australia’s Eyre Peninsula is bleeding cash in the face of a collapse in steel prices and cheaper Chinese imports. The company also owns smaller plants…

MMG will begin construction at its Dugald River project in mid-2016. Image: MMG.  By Samantha JamesMMG’s $1.4 billion Dugald River zinc project has gained special status to help cut red tape and create hundreds of jobs in north Queensland.State Development Minister and Minister for Natural Resources and Mines Dr Anthony Lynham granted prescribed project status to Dugald River, 85km north east of Mt Isa.“Projects like Dugald River are critical to economic development and job creation in the north-west during these tough times caused by ongoing resource commodity price lows,” Dr Lynham said. “Granting it prescribed project status will allow the coordinator-general to assist MMG to navigate processes and timely approvals through government.”“This is tangible evidence of the Palaszczuk Government’s commitment to winning jobs and infrastructure in the north-west.”MMG expected to start construction mid-year, creating 600 jobs during construction and about 400 jobs once the zinc mine was operational. Dr Lynham said the company had advised it was still finalising its workforce makeup, but anticipated having a mixed workforce of north-west locals, who would be bussed into camp, and fly-in, fly-out workers.Dugald River is one of the world’s largest and highest grade undeveloped zinc-lead-silver deposits with a resource of 53 million tonnes.  At peak output of 160,000 tonnes per annum of zinc, Dugald River would be one of the world’s top 10 zinc mines. MMG anticipates starting production in the first half of 2018. 

A possible configuration for the combined system proposed by Massachusetts Institute of Technology researchers. By Samantha James RESEARCHERS at the Massachusetts Institute of Technology (MIT) have designed a hybrid system that could boost efficiency of coal-powered plants and simultaneously cut emissions in half. The proposed hybrid system – designed by MIT doctoral student Katherine Ong and Professor Ahmed Ghoniem – could generate as much as twice the fuel-to-electricity efficiency of conventional coal-fired plants.  This would mean a 50 per cent reduction in carbon dioxide emissions for a given amount of power produced. The concept, as described in a paper published in the Journal of Power Sources, combines coal gasification and fuel cells into a single system. The hybrid fuel cell…

Peabody Energy, the world largest private sector coal company, stated that its Australian business would remain unaffected by bankruptcy proceedings. By Reuben Adams PEABODY Energy maintains that its Australian coal business will not be affected by a decision to file for bankruptcy in the US and all operations will continue as normal. Peabody, in a major step to “strengthen liquidity and reduce debt,” voluntarily filed petitions under Chapter 11 for the majority of its US entities in the United States Bankruptcy Court for the Eastern District of Missouri. The company hoped this process would help reduce its overall debt level, lower fixed charges, improve operating cash flow and “position the company for long-term success, while continuing to operate under the protection of…

Tesla has 325,000 pre-orders for its new Model 3 electric car. Source: Tesla Motors. By Cameron Drummond THE use of lithium in industrial batteries has seen the popularity of the rock-bonded soft metal skyrocket. These batteries out-perform their predecessor, the traditional nickel-metal hydride unit, for use in clean energy technologies such as electric cars and home energy storage. Lithium as an industrial commodity has gone from strength to strength on the back of these exciting technological shifts, most notably through tech-entrepreneur Elon Musk’s Tesla electric-powered cars and home battery storage units. The Tesla Motors (NASDAQ:TSLA) share price enjoyed a steep ascent from a February 2016 low of $185 to $326 on 11 April, when it announced it had received US$1000…

Exploration at Tyranna Resources’ Jumbuck gold project in South Australia is supported by an oversubscribed share placement. By Reuben Adams TYRANNA Resources will raise $800,000 before costs through a massively oversubscribed share placement as exploration at its Jumbuck gold project in South Australia continues to build momentum. These funds will be used for advancing exploration at four prospects within Jumbuck in the northern Gawler Craton – Campfire Bore, Golf Bore, Golf Bore North, and Mainwood – which are the focus of Tyranna’s current 6200m reverse circulation drilling program. This program encompasses wholly owned Tyranna tenements and tenements which form part of a 59:41 joint venture with Challenger Gold Operations (an equal ownership JV between WPG Resources and Pybar Mining Group), operator…