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By Jane Goldsmith April 15, 2015 KARARA Mining has made substantial workforce cuts less than a month after accepting WA’s first magnetite royalty rebate payment – a State Government initiative created to save jobs. “Due to current market conditions and the falling iron ore price, Karara Mining has undertaken a comprehensive business review,” the company stated. “Regrettably this has meant a reduction… of around 15 per cent across our total workforce. These reductions have affected a wide range of positions.” The changes, implemented in mid March, saw the loss of about 70 positions from the company’s Perth office, Karara site and Geraldton Port operations. “Our review process has examined every available option to reduce costs. These changes deliver cost reductions…

By Rachel Dally-Watkins 9 April, 2015 DESPITE ongoing cost reduction initiatives, BC Iron will receive assistance from the WA Government through the temporary iron ore royalty assistance program. BC Iron announced in early April that it would receive a deferral of 50 per cent of iron ore royalties paid for the December 2014 to September 2015 quarters, subject to its freight on board received price remaining below $90 per dry metric tonne during the period. The move would defer between $8 million and $12 million of royalties, which would be payable in seven equal quarterly installments between March 2016 and September 2017. “Smaller iron ore producers make up an important part of the industry that has, and will continue to,…

By: Jane Goldsmith April 8, 2015 WA mineral producers have applauded the State Government’s decision to leave mining royalties unchanged in this year’s budget, despite a deep state deficit. Mines and Petroleum minister Bill Marmion made the announcement after receiving a 155-page review of WA’s royalty system; the third since it was put in place in 1981. The Mineral Royalty Rate Analysis (MRRA) – jointly conducted by the State Development and Mines and Petroleum departments – made 18 recommendations, including an increased royalty rate for gold miners, from 2.5 per cent to 3.75 per cent. However, Mr Marmion rejected the recommendations, and confirmed the current rate would remain. “The State Government notes the review’s endorsement of the ad valorem system…

By Rachel Dally-Watkins 2 April, 2015 THE price of iron ore has fallen below US$50 per tonne for the first time in a decade, prompting fears that many juniors operating on thin margins will be forced out of the market. On 2 April, the price of iron ore for immediate delivery to the Chinese port of Tianjin dropped to $US49; a stark contrast to  record US$185/t asking price during 2011. The price plunge is taking its toll on junior and mid-tier iron ore miners, with economists forecasting prices will continue to fall before levelling out. ANZ predicted a low of US$47/t, while Deutsche Bank stated prices could get as low as US$40/t before improving. Commentators have attributed the falling price…

By Rachel Dally-Watkins 2 April, 2015 WHILE the gold mining industry experienced a tumultuous past year, Doray Minerals managing director Allan Kelly said that, for his company, not a lot had changed thanks to a three pronged approach to weathering the uncertain market. Speaking at a WA Mining Club lunch in late March, Mr Kelly said his company’s focus on sustainable gold production, company management and exploration success had secured a “solid financial performance” for the first half of financial year 2014-2015. Capital expenditure to set  the company up for the second half of 2015 and lower underground grades at Andy Well meant that the company “always knew the first half of this financial year was going to be a…

By Jane Goldsmith BARRICK Gold has been hit by allegations of “irreparable” social, economic and environmental change as it flags intentions to offload a majority stake in the iconic Porgera mine, north-western Papua New Guinea (PNG). Porgera landowners representative the Justice Foundation for Porgera (JFP) is seeking billions in compensation from Barrick Gold and its subsidiary Barrick Niugini, alleging that the venture breached agreements relating to environmental standards, the relocation of displaced landowners, and the number of fly in, fly out workers in the area. In late February, Barrick and Barrick Niugini released a statement of intention to sell its PNG interests, which could offload any pending legal claims from landowners to potential buyers. Mineral Resources Enga holds a 5…

By Jane Goldsmith SOUTH Australia has formally launched its Royal Commission into Australian nuclear energy, with energy production, uranium and enrichment and waste storage on the agenda. The Nuclear Fuel Cycle Royal Commission – the first of its kind in Australia – will review domestic nuclear mineral exploration and extraction, radioactive substance manufacturing, nuclear electricity generation, and radioactive and nuclear waste disposal, but has ruled out uranium mining and military purposes. South Australian Premier Jay Weatherill said the community would be kept up-to-date on the Royal Commissioner Kevin Scarce’s findings, to encourage public discussion. The Commission received more than 1000 submissions from the community and industry during the final four weeks of consultation. “Whilst many people have strong views at…