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A ‘large special’ diamond recovered from Lulo. By Samantha James AFRICAN-focused Lucapa Diamonds has successfully mined and sold several high value diamonds from its Lulo project since it began producing in 2015. In early 2016, trial mining at the E46 area led to the recovery of several ‘large special’ diamonds – diamonds weighing more than 10.8 carats (ct). Lucapa chief executive Stephen Wetherall spoke to Samantha James about the demand for special diamonds in the short term, the long-term market outlook and how expansion plans at Lulo fit into the global rare diamond industry. Q. There are several mining operations ongoing at Lucapa’s Lulo project in Angola. Could you explain how the different operations fit together in the project? How long will...

Hume Coal’s namesake project in the Southern Highlands of NSW was promoted by the company as “low impact”. By Samantha James UNDERGROUND coal developer Hume Coal said it would not appeal a May decision by the NSW Land and Environment Court blocking the company from drilling on farmland owned by five families from the NSW Southern Highlands. The landowners of five rural properties in Sutton Forrest appealed against a November 2015 decision by the court that allowed Hume prospecting rights on their properties. Chief judge Brian Preston ruled in favour of the landowners and ordered Hume to pay their legal costs. POSCO-owned Hume released a statement detailing its “disappointment” in the decision but said it would not appeal it, electing instead...

A legal dispute between ERO Georgetown Gold Operations and local landholders in northern Queensland saw the miner block the access road to a property near Georgetown in 2013. Image: Queensland Country Life. By Samantha James THE Queensland Government has passed legislation protecting existing farm infrastructure from proposed mining projects and restoring community objection rights to re-establish a “balance between the rights of farmers, miners and the community”. Queensland State Development and Natural Resources and Mines minister Dr Anthony Lynham said the Mineral and Other Legislation Amendment Bill fulfilled two Palaszczuk Government commitments. “The legislation passed today fulfils the government’s commitments to restore community objection rights to proposed mining projects, and to protect key agricultural infrastructure,” he said. “As per our commitments,...

Agricultural engineer and assistant professor at UWA’s School of Mechanical and Chemical Engineering Andrew Guzzomi. By Samantha James RESEARCHERS at the University of Western Australia (UWA) have invented a new rehabilitation technique for large tracts of land such as reclaimed mine sites. The ‘flash flaming’ technique aids in replanting wild seeds by carefully burning off the fluffy appendages that appear on many seeds, which make them difficult to handle and ‘coat’ for large-scale remote restoration. The scientists used Spinifex seeds, the dominant plants of desert grasslands that cover up to 70 per cent of inland Australia, to test the technique’s effectiveness. “Successful large-scale restoration of mine sites relies on the effective use of seeds from wild or native species,” UWA...

The WA 2016-2017 budget provided additional minerals exploration funding however hiked up tenement rental charges to combat a $2.77 million shortfall in budget revenue. By Samantha James THERE is “good and bad news” in the WA State Budget for hundreds of WA-based miners and explorers, according to the Association of Mining and Exploration Companies (AMEC).  AMEC called the $30 million investment across 2017-2018 to 2019-2020 in the Exploration Incentive Scheme (EIS) “sensible” but an increase in tenement rental charges and the expected increase in land property values for shire rating purposes a “most disappointing” approach. AMEC supported the budget’s $30 million investment in the EIS and co-funded drilling program as a “means to encourage mineral exploration in WA” and “provid significant...

By Cameron Drummond WA companies are prospering off a commodity rebound, with Fortescue Metals Group (FMG), Pilbara Minerals (PLS) and Resolute Mining among a group recording market cap increases. The Deloitte WA Index rose in April with the market capitalisation of WA-listed companies increasing by 9 per cent to $136.2 billion. Deloitte Clients & Markets Partner WA Tim Richards said the index’s performance was boosted by the month’s strong commodity prices. “April’s result, which follows a 5.9 per cent rise in March, was primarily driven by crude oil reaching its highest price in 2016 and iron ore climbing to US$64.50 per tonne at the end of the month,” Mr Richards said. “This spurred on investors, as demonstrated by the market...

By Samantha James RIO Tinto and its joint venture partners have approved the US$5.3 billion underground development at the Oyu Tolgoi copper and gold mine in Mongolia, which is expected to kick off in mid-2016. The expansion – which would add more than 300,000 tonnes per annum of copper to the producing 175,000tpa open pit mine in the Gobi Desert – was previously expected to cost US$4.9 billion and pay for itself within nine years under a reserve case outlined in 2014. In December 2015 the JV secured an initial US$4.4 billion financing agreement for proposed development however outstanding approvals delayed the final investment decision. Following the grant of all approvals, Rio and its joint venture partners are now aiming for first production...

Alcoa of Australia is owned 60 per cent by Alcoa Inc in the US and 40 per cent by ASX-listed Alumina Limited. The global company’s announced demerger slated for the second half of 2016 will see it become two publicly traded companies; Upstream and Value-Add. Alcoa of Australia’s 60 per cent shareholding would become part of a new global Upstream company to be created by Alcoa (which would retain the Alcoa name). Samantha James spoke to Alcoa of Australia’s subsidiary Alcoa Mining president Garrett Dixon about its Australian development plans. Q. How important are Alcoa’s Australian mines to Alcoa’s global operations? Alcoa of Australia has been an integral part of Alcoa’s global business for more than 50 years. Our WA...

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...