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By Rachel Dally-Watkins September 1, 2015 FEDERAL MP and Mineralogy founder Clive Palmer is suing Chinese-owned CITIC Limited for $10 billion, in the latest of a slew of lawsuits related to the Sino Iron project. Mr Palmer is seeking damages for what he alleges is a breach of commercial arrangement between CITIC and Mineralogy, resulting in a lack of royalty payments on the $500 million of iron ore concentrate already shipped to China. Mr Palmer was also suing for royalties covering the life of the project. In 2006 the companies signed an agreement which relied on the annual benchmark iron ore...

By Emma Brown August 13, 2015 TWO vulnerable species have brought the development of the controversial Carmichael coal mine to a halt. The Federal Court set aside approval of Adani’s $16 billion Queensland mine after a legal loophole found Environment minister Greg Hunt had not fully considered the environment advice for the project. Environmental Defenders Office NSW principal solicitor and Mackay Conservation Group representative Sue Higginson said the court’s decision was based on the minister’s failing to consider conservation advice related to two Federally-listed vulnerable species – the yakka skink and ornamental snake. “This kind...

By Courtney Pearson August 13, 2015 DRY weather and poor copper prices have forced the Ok Tedi mine in Papua New Guinea to suspend production. Low water levels in the Fly River have hindered the transport of copper ore from the operation’s port in Kiunga to customers at the mouth of the river. The permanent workforce of expatriates and locals will also be reduced by 30 per cent and 15 per cent respectively to “better cope with a low commodity price environment”, Ok Tedi Mining Limited reported. A skeleton crew would remain at the site for maintenance and security. Operations at the...

By Jane Goldsmith August 13, 2015 ACROSS the first half of 2015, iron ore producers globally worked to increase production output and cost efficiency as prices for the steel-making commodity crashed to near-decade lows. In late July BHP Billiton Iron Ore, the second largest iron ore producer in the Pilbara, announced it had increased production by 13 per cent to a record 254 million tonnes of iron ore for the year ending 30 June 2015. Despite its massive output achievements, the company was forced to defend itself against critics, which included several junior and mid-tier iron ore miners as...

By Jane Goldsmith August 13, 2015 ANGLO American’s global portfolio, spanning iron ore, manganese, metallurgical and thermal coal, copper, nickel, platinum and diamonds, has undergone notable reductions since the start of 2015. In July, the company announced workforce cutbacks of up to 53,000 people globally, after flagging the sale of underperforming assets. In its financial report for the six months ended 30 June 2015, Anglo American reported group underlying earnings before interest and tax (EBIT) of US$1.9 billion; a 36 per cent decrease year-on-year. The company blamed acutely weaker commodity prices for the results, despite globally weaker producer-country currencies and cost reductions partially offsetting the...

By Courtney Pearson August 13, 2015 THE story has been all positive for Northern Star Resources which became one of Australia’s top three gold producers in 2014 and has enjoyed climbing production and sales results ever since. Northern Star Resources ended the 2015 financial year with $178 million in cash, bullion and investments; nearly double the previous year’s $96 million result. The company also retired the last of its bank debt. Record gold sales in the June quarter led to a final financial year result of 580,784oz, which was within its full year guidance of between 550,000oz and 600,000oz. “These results mark...

By Courtney Pearson August 13, 2015 HUNDREDS of people gathered in Newcastle in late July to show support for mining in the Hunter Valley. The rally coincided with a visit by NSW Planning minister Rob Stokes, who was there to discuss proposed changes to the planning system. The NSW Planning and Environment Department is undergoing a process to change mining regulation is NSW, which could put jobs at risk. Proposed amendments to the Mining State Environmental Planning Policy would require decision-makers to consider the likely environmental, social and economic impacts of a mining development, which could affect the future of a...

By Jane Goldsmith August 13, 2015 MINING bodies have blasted Labor’s “xenophobic” attitude, after it declared a $160 billion pending China-Australia free trade agreement (FTA) would threaten Australia’s “safeguards for jobs”. The implementation of the China-Australia Free Trade Agreement (ChAFTA), which would see tariffs removed on almost all Australian resources and energy products, is forecast to bring about $1.3 billion per annum into Australia’s exports industry. Within the coal sector, coking coal tariffs would be removed from day one, while thermal coal tariff would be phased out across two years. ChAFTA, which was signed in Canberra on 17 June 2015, is...

By Courtney Pearson August 13, 2015 IN a show of solidarity, Australian gold producers will launch a new Gold Industry Group (GIG) to represent the domestic industry. The group, introduced at the Diggers and Dealers Forum in Kalgoorlie, would champion gold issues, education and community initiatives and promote gold as an investment. The GIG was founded by companies including Gold Road Resources, Doray Minerals, Ramelius Resources and Norton Goldfields. Less than half of Australian mines are owned by overseas companies following a rise in mergers and acquisitions which saw the emergence of locally-based, mid-tier gold producers. Mining consultancy...