Author: admin

Debt-free Millennium looks to grow coffers

Debt-free Millennium looks to grow coffers

Millennium Minerals produced 23,166oz of gold from Nullagine for the March quarter and paid down the last of its debt. By Reuben Adams MILLENIUM Minerals is now debt free and looking to build “strong” cash reserves on the back of its 80,000 ounces per annum Nullagine gold project in WA. Millennium produced 23,166oz of gold and recorded $7.1 million free cash flow in the March quarter, putting it on track to reach its production guidance of between 80,000oz and 85,000oz of gold for the year. All-in sustaining costs of $1195/oz were at the lower end of full-year guidance of between $1180/oz and $1220/oz of gold. Millennium chief executive Glenn Dovaston said the solid March results confirmed the company’s strong position.…

Diversifying in the WA goldfields

Diversifying in the WA goldfields

Independence Group (IGO) has operated in the goldfields region of WA since 2002, developing a multi-commodity focus on gold, nickel, copper, zinc and silver. The company expanded its reach in September last year with the acquisition of the world class Nova copper-nickel project. By Samantha James IGO’s takeover of junior developer Sirius Resources in a $1.8 billion deal saw the group acquire the world-class Nova-Bollinger nickel-copper development project. Nova was discovered by Sirius in 2012, labelled a tier 1 asset and immediately fast tracked to feasibility studies, which were completed in July 2014. Construction of a mine capable of producing 26,000 tonnes per annum of nickel and 11,500tpa of copper across an initial life of 10 years began in early…

World class results

World class results

OZ Minerals managed to get the ball well and truly rolling last year, with strong production numbers and a focus on cost efficiencies at Prominent Hill resulting in a 168 per cent profit jump and underlying EBITDA of $484.9 million. In 2016, OZ Minerals is using its sturdy financial position to accelerate development of the $770 million Carrapateena project, which it expects to fund from cash reserves and future profits. By Reuben Adams OZ Minerals managing director and chief executive Andrew Cole said that Prominent Hill, in South Australia, was proving itself to be “a strong foundation asset” which placed the company in the enviable position of being able to explore growth opportunities. “Production is at record levels and by maintaining…

Maximising value over volume

Maximising value over volume

In a weak commodity market, South32 has reduced its net debt by almost US$300 million and remains on track to meet production guidance for the majority of its upstream operations. By Rachel Seeley THE spinoff of South32 from BHP Billiton in May 2015 was touted as a major step in the evolution of BHP, designed to create long-term value for shareholders and create two successful companies. Since its listing on the ASX, the Johannesburg Stock Exchange and the London Stock Exchange, South32 has worked to reduce debt and operating costs, placing it in good stead to achieve sustained growth by taking advantage of the low market conditions. “The continuing optimisation of our high quality operations and balance sheet has enabled us…

Portia gold mine ahead of schedule

Portia gold mine ahead of schedule

Gold ore is being stockpiled at Havilah Resources’ Portia open pit gold mine in preparation for processing in April. By Samantha James HAVILAH Resources has started stockpiling gold ore at its Portia open pit in South Australia, three and a half months earlier than scheduled. The milestone was achieved in mid-March due to a mine plan redesign which now envisioned commissioning of the processing plant by the end of April.Mining operations began in late March 2015 and by mid-March 2016 Havilah’s contractor had mined to within 5m of the high grade ore horizon. Havilah managing director Dr Chris Giles said that mining the open pit had come with some challenges. “It is pleasing to note that in spite of the…

Another milestone for Citronen

Another milestone for Citronen

The Citronen project in northern Greenland represents one of the world’s largest undeveloped zinc-lead resources. By Reuben Adams PERTH-based developer Ironbark Zinc has received a draft Impact Benefit Agreement (IBA) from the Greenland Government for its globally significant Citronen zinc-lead project, the last document to be finalised before an exploitation licence can be awarded. The terms of the IBA typically focussed on formalising employment and training commitments as well as detailing how the Government, municipalities and Ironbark would work together to maximise the beneficial opportunities for all parties. “Ironbark is delighted to reach this next milestone in the licensing process,” the company said in a statement. “Ironbark has developed a solid relationship with relevant parties through the public consultation…

FMG axes Downer

FMG axes Downer

By Cameron Drummond FORTESCUE Metals Group has swung the axe at its last Christmas Creek contractor Downer EDI as it moves toward a cost-saving owner-operator business model. FMG consolidated its mine contractors from two to one in February 2015, dropping MacMahon Holdings to give Downer the remaining work at the time. Downer had serviced the Christmas Creek iron ore mine since 2010. Fortescue chief executive Nev Power said production from Christmas Creek was not expected to be affected during the transition as the company looked to further improve efficiency and productivity at its operations. “Adoption of an owner-operator model will further reduce Fortescue’s costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations,” Mr Power…

Protestors undeterred by harsher laws

Protestors undeterred by harsher laws

By Samantha James TWO anti-mining activists have chained themselves to a conveyor belt at Whitehaven Coal’s Narrabri mine in NSW, a week after a woman stopped the movement of coal trains from in and out of the company’s nearby Maules Creek mine by locking herself onto the tracks. On 1 April a Whitehaven spokesperson confirmed that protestors had attached themselves to gantry cranes near the coal preparation area at Narrabri, adding that police had dealt with the situation. “This event will have no effect on our operations,” the spokesperson said. The protests come just weeks after the NSW Government announced a bill which called for new search and seizure powers for police and increased fines of $5500 for aggravated unlawful…

Australia to supply uranium to Ukraine

Australia to supply uranium to Ukraine

By Samantha James THE Minerals Council of Australia (MCA) has welcomed Foreign Affairs minister Julie Bishop’s announcement that she will sign a cooperation agreement to supply uranium to Ukraine for use in power generation at the fourth global Nuclear Security Summit in Washington DC. In a statement Ms Bishop said the contract with the Ukraine would “complement similar agreements Australia has with countries including Canada, China, France, India, Japan, Republic of Korea, Russia, the UK and the US” and assist in maintaining strong international cooperation on nuclear security. MCA executive director of uranium Daniel Zavattiero said in a statement that the agreement would offer Ukraine additional diversity of uranium supply, and Australia access to an important and growing market. “This…

Rescue efforts cease in the Congo

Rescue efforts cease in the Congo

By Samantha James MORE than 10 days after an open pit wall collapsed at Glencore’s Katanga mine in the Democratic Republic of Congo the company has ceased efforts to rescue four workers still unaccounted for. Glencore’s 75 per cent owned subsidiary Katanga Mining mobilised a search and rescue team immediately following a geotechnical failure within the KOV open pit on 8 March. Seven workers had been performing maintenance work at the bottom of the 250m pit at the time of the incident. The company since reported three confirmed fatalities at the operation, saying it would keep looking for the remaining workers. However, after more than a week without success, Katanga Mining announced rescue efforts had officially ended. “Despite all available…

Maiden leucoxene shipment leaves Bunbury Port

Maiden leucoxene shipment leaves Bunbury Port

By Rachel Seeley THE first shipment of L70 leucoxene product from MZI Resources’ Keysbrook mineral sands project in South West WA has departed Bunbury Port enroute to the US. This shipment marked the start of cashflow from the project, with offtake customer Chemours using the L70 leucoxene to make pigments for paints, plastics and other applications. “This shipment represents Keysbrook’s arrival as the single biggest producer of high value leucoxene in the world, as we continue to ramp up cash flow generation and build value for shareholders through high margin product sales,” MZI managing director Trevor Matthews said. More than 3800t of zircon concentrate was also shipped to Tricoastal/Wensheng – China’s largest mineral sands processor – under a five-year offtake…