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FMG records 212pc profit jump

FMG records 212pc profit jump

FMG’s cost reduction measures have realised a turnaround in annual finance results. By Cameron Drummond IRON ore producer Fortescue Metals Group (Fortescue) announced a 12c per share dividend on the release of its full year financial results on 22 August. The company posted an after tax profit of $US985 million for FY16, a 212 per cent rise from $US316m in FY15. Fortescue’s underlying earnings before interest, tax depreciation and amortisation (EBITDA) increased 48 per cent from $US2 billion the year before to $US3.2bn. A 29 per cent year-on-year drop in revenue of $US7.1bn was countered by improved C1 operating costs averaging $US15.43 per wet metric tonne (wmt); a 43 per cent reduction from FY15. The company said the numbers reflected...

Ernest Henry: Community focus

Ernest Henry: Community focus

After completing a $589 million upgrade Glencore’s Ernest Henry Mining, has continued its support for local and regional projects near its operations. By Cameron Drummond ERNEST HENRY is a copper and gold mining and processing operation 38km north east of Cloncurry in north-west Queensland. The mine is a part of Glencore’s portfolio of Australian copper assets which includes the Mount Isa Mines copper operations, a copper refinery in Townsville and the CSA underground copper mine near Cobar, NSW. Mined copper and gold at Ernest Henry is processed at its on-site concentrator then transported to Glencore’s Mount Isa copper smelter and refined at the Townsville refinery, ready to be delivered to domestic and overseas customers. In its 2015 annual report, Glencore earnings before taxes, depreciation...

Miners innovate to drive productivity

Miners innovate to drive productivity

Rio Tinto's autonomous haulage trucks at its West Angelas minesite. Image Christian Sprogoe Photography. By Elizabeth Fabri JUNIOR minors are more willing to embrace a culture of open innovation than their major counterparts, according to a new study by Deloitte. The Innovation in mining Australia 2016 report, developed in association with Diggers and Dealers and the Association of Mining and Exploration Companies (AMEC), explored how innovation was being employed in Australian mining. Deloitte found that while junior minors lacked the resources readily available to majors, their ability to problem solve, take advantage of government incentives, and willingness to embrace a culture of open innovation led to confidence in the sector. The report also stated Australia ranked itself above Canada and Africa but...

Prevention and detection methods key

Prevention and detection methods key

For high risk and hard working industries such as mining, alcohol or drug use in the workplace puts businesses out of pocket and can seriously increase the threat of injury. By Cameron Drummond FOR high risk and hard working industries such as mining, alcohol or drug use in the workplace puts businesses out of pocket and can seriously increase the threat of injury. The Australian Institute of Health and Welfare (AIHW) claims that most alcohol or drug (AOD) users are employed; all the more reason to address illicit substance use in the work place. While the majority of Australians don’t use drugs or alcohol at work, nearly 20 per cent of lost productivity costs in Australia are directly related to AOD...

Telstra invests in mining

Telstra invests in mining

By Elizabeth Fabri TELECOMMUNICATIONS giant Telstra will dip its toes in the resources sector. Telstra Mining Services was created following acquisition of a mining communications technology service business from CBO Telecommunications and the appointment of global mining experts Jeannette McGill and Eric Nettleton. CBO Telecommunications expertise spanned Wi-Fi and Mesh technologies and mine site enterprise grade networks, with complementary capabilities to support the growth of Telstra’s mining focused private LTE and public LTE (LANES) businesses. Telstra Global Enterprise and Services group managing director Martijn Blanken said Telstra Mining Services would help the industry transition to a digital future. Head of Telstra Global Industries David Keenan said the decline in global commodity prices was a significant factor that sharpened the industry’s focus on...

Jundee exploration a resounding success

Jundee exploration a resounding success

Jundee gold mine operations. Image: Northern Star Resources. By Elizabeth Fabri AREAS of high-grade mineralisation have been discovered at Northern Star Resources’ Jundee gold mine, up to 800m from existing operations. The newly-identified resources were found in Northern Star’s first exploration campaign at the mine since it purchased the asset in 2014. While the company was only 15 per cent through its drilling campaign, the early results suggested Jundee would continue to operate at or around current production levels for many years. New discoveries included the Armada and Revelation trends, and the expansion of known parameters of seven mining areas. The Gateway-Gringotts trend produced positive drilling results including 2.8m at 598 grams per tonne, while Westside recorded 0.8m at 3933g/t. Northern Star...

New Rio head overhauls structure

New Rio head overhauls structure

Rio Tinto’s new chief executive and managing director Jean-Sébastien Jacques. By Elizabeth Fabri RIO TINTO’s newly appointed chief executive Jean-Sébastien Jacques has unveiled changes to the organisation’s structure and his executive team. On 2 July, Jean-Sébastien Jacques replaced former chief executive Sam Walsh, and reorganised the group to better align assets with the business strategy and optimise performance. “In the face of testing times for the industry, Rio Tinto is performing remarkably well,” Jean-Sébastien Jacques said. “Our strategy, commitment to balance sheet strength and focus on shareholder returns will not change; but we are strengthening our structure and delivery by placing our assets at the heart of the business to drive improved performance.” The new structure comprised four product groups -- Aluminium, Iron...

BHP boosts copper and oil exploration spend

BHP boosts copper and oil exploration spend

BHP Billiton's Shenzi operations in the Gulf of Mexico. By Elizabeth Fabri BHP Billiton’s will increase exploration expenditure to $US900 million in the next financial year, accounting for 18 per cent of its overall capital budget. A value-focused approach to exploration was announced on 27 June at Citigroup’s Mining Exploration Day in Sydney by BHP Billiton head of geoscience Laura Tyler, who outlined the company’s plan to enhance its tier 1 portfolio by focusing on copper and oil. “We are investing at a time when most in our sector continue to reduce discretionary spend,” Ms Tyler said. “We are also challenging existing paradigms with a scientific based and disciplined approach to exploration. “We have reduced exploration operating costs by 70 per cent since...

Deal puts Lithium Australia in the box seat

Deal puts Lithium Australia in the box seat

Image: Lithium Australia By Elizabeth Fabri LITHIUM Australia (LIT) and US Masters Holdings (USH) have joined forces in a strategic move to consolidate Lake Johnston lithium pegmatite field resources. LIT would obtain lithium rights to two additional licences at the field, giving company a distinct advantage in new pegmatite discoveries, and while USH remained the sole owner of granted exploration licenses E63/1722 and 1733, lithium rights would be ceded to LIT. In return, USH would acquire the gold and nickel rights to LIT’s existing uncontested application for E63/1777, subject to regulatory approvals. LIT managing director Adrian Griffith said the venture between both parties put the company in the box seat. “While previous exploration ignored the lithium potential of the pegmatites, recent exploration...

Red tape in way amidst signs of mining revival

Red tape in way amidst signs of mining revival

A survey of 50 mining executives has revealed more confidence in the sector. By Cameron Drummond THE mining industry is showing signs of confidence for the first time in three years, but recovery could be hampered by government red tape, according to a report. Newport Consulting’s latest Mining Business Outlook Report released 21 June stated that industry leaders were warning that red tape removal, particularly the project approval process, was crucial if the sector was to increase its international competitiveness. Report figures showed a bounce back toward a sector revival, with 43 per cent of mining leaders optimistic about their prospects for the year ahead; up significantly from 2014 when confidence hit an all-time low. The gap between leaders who were...

The right opportunity

The right opportunity

Newmarket Gold’s Fosterville mine produced more than 30,000oz of gold for the March 2016 quarter. By Samantha James CANADIAN-based Newmarket Gold is reaping the cash benefits of a 2015 merger with Australian miner Crocodile Gold. Until last year, Toronto-listed Newmarket had been focused on its Canadian base metal exploration assets. Its move into Australian gold was, according to the company, a long time coming – part of the search for “the right production opportunity”. A share structure consolidation and C$25 million capital raising, completed in July 2015, was the platform for Newmarket’s entry into the Australian market, which included the acquisition of three mines and several development and exploration projects. Since completion of the Crocodile transaction, Newmarket has invested more than...