Author: admin

Mining licence for Zambian copper project

Mining licence for Zambian copper project

AFRICA-focused Blackthorn Resources has been granted a large-scale mining licence and environmental approval for the development and operation of its Kitumba copper project in Zambia. The Kitumba mining licence – covering 163 square kilometres within the existing Mumbwa prospecting licence, about 200km west of the capital, Lusaka – was a key condition to a merger arrangement between Blackthorn and precious metals developer Intrepid Mines. It was granted for an initial 25 years following approval by the Zambia Environmental Management Agency. “This is a significant milestone for Blackthorn Resources and confirms the support of the Zambian Government for the development of the project,” Blackthorn Resources managing director Mark Mitchell said. “We now look forward to advancing the project through the definitive…

Glencore shuts mines for Christmas

Glencore shuts mines for Christmas

GLENCORE will shut down its Australian coal operations for three weeks across Christmas in response to continued weak global demand. The move, which will cut the Swiss giant’s coal output by about 5 million tonnes, came as thermal coal prices hit the low US$60s last month, more than half the heights reached three years ago. In a statement, Glencore said the decision was made given the current oversupply situation and would reduce the need to push sales into an already weak pricing environment. However the company said it believed the market would strengthen in time. “We remain confident in demand growth for our products and believe that the supply and demand balance will be restored in the medium term,” it…

Major magnetite project progresses

Major magnetite project progresses

SOUTH Australia’s next major mining project moved closer to development in mid November after getting the go-ahead for a vital application. The South Australian Government advised Iron Road it could prepare an environmental impact statement (EIS) for its proposed US$4.5 billion Central Eyre iron project (CEIP) on the Eyre Peninsula, which would export 21.5 million tonnes per annum of high grade concentrate (magnetite). CEIP holds ‘major development’ status in South Australia as well as Commonwealth ‘major project facilitation’ (MPF) status – the only project in the state to do so. The EIS is expected to detail a 148km rail project, with the potential to be linked to the national rail network; a deep sea port and export facility at Cape…

Producer sends home Kimberley mine staff

Producer sends home Kimberley mine staff

WA-based producer Mount Gibson Iron has stood down more than 200 staff at its Koolan Island operations in the Kimberley after aseawall slumped and flooded the main pit. Mount Gibson announced it was suspending main pit operations at the 3 million tonne per annum mine in October after a portion of the pit’s southern seawall slumped. Employees were redeployed to other parts of the project. However a further slump occurred on 25 November, a month after the initial incident, flooding the pit. The company was forced to suspend all non-essential operations on the island, standing down the majority of its on-site workforce. “Mount Gibson is evaluating the situation, but it is not yet possible to determine the extent of the…

China FTA to remove coal tariffs

China FTA to remove coal tariffs

RECENTLY introduced tariffs on coal exports to China will be scrapped under a free trade agreement (FTA) to be signed this year. Under the long-awaited China-Australia FTA, announced by Prime Minister Tony Abbott and Chinese President Xi Jinping in November, the 3 per cent tariff on coking coal will be removed on signing the agreement, while the 6 per cent tariff on thermal coal will be gone within two years. The tariffs were introduced last year in a surprise blow to Australia’s beleaguered coal exporters, which send about $6 billion of product to China each year and were already feeling the strain of low coal prices. The FTA will remove tariffs on 99.9 per cent of Australia’s current resources exports…

Abbott defends coal at G20

Abbott defends coal at G20

PRIME Minister Tony Abbott defended coal to world leaders at the G20 summit in Brisbane last month despite increasing pressure for further action on climate change. The G20 Leaders’ Communiqué included a lengthy section on climate change, including a pledge to phase out fossil fuel subsidies. However, major media outlets reported Mr Abbott had argued against focusing on climate change in the communiqué in private leaders’ sessions. According to Fairfax Media, Mr Abbott launched an “impassioned defence” of coal to other G20 leaders, however was opposed by European leaders and US President Barack Obama. Mr Abbott, who earlier this year described coal as “good for humanity”, emphasised the role coal had to play in the developing world in remarks at…

Iron ore price hits Vale bottom line

Iron ore price hits Vale bottom line

THE world’s largest iron ore producer has blamed its Australian counterparts for the market’s oversupply issues after posting a surprise US$1.44 billion net loss in the last quarter. Despite producing a record 85.7 million tonnes Brazil-based Vale was slugged by a global drop in iron ore prices, which cost the company US$1.031 billion in the September quarter. An 11 per cent depreciation in the value of the Brazilian real also knocked almost US$3 billion from the company’s coffers. Despite its own production increases, Vale ferrous and strategy executive director José Carlos Martins said Australian producers were having the biggest impact on iron ore prices. “In the iron market we are experiencing a market of oversupply; demand did not increase as…

Argyle still shining bright

Argyle still shining bright

FOR almost 30 years Rio Tinto’s Argyle diamond mine has been the world’s only reliable source of pink diamonds, and a new expansion project will see it hold that title for years to come. Argyle, in WA’s remote East Kimberley, has produced more than 800 million carats of rough diamonds since it was commissioned in 1985. The mine is one of the largest suppliers of diamonds in the world; the majority of gems from Argyle are cheaper white or champagne diamonds that are sold rough to customers in India, the US and China. While pink and red diamonds only make up a tiny percentage of the mine’s production, Argyle has become synonymous with the rare and illustrious gems – producing…

Environmental approval fast-tracks Browns Range

Environmental approval fast-tracks Browns Range

THE WA Government has granted environmental approval for the proposed mine and ore processing facilities at Northern Minerals’ Browns Range project, facilitating the process of secondary approvals and completion of the project’s feasibility study. Browns Range, 160km southeast of Halls Creek, is one of the highest grade heavy rare earth (HRE) resources in the world. It has significant dysprosium resources (hosted in xenotime), which is used in nuclear reactors, data storage applications and the alloy formula Terfonel-D. “Receiving the primary environmental approval is a significant step forward in the project’s development and clears the path for Browns Range to become the first significant dysprosium producer outside of China,” Northern Minerals managing director George Bauk said. “The focus is now on…

BMA opens $3b coal mine

BMA opens $3b coal mine

THE BHP Billiton Mitsubishi Alliance (BMA) hopes to defy the coal market’s gloomy outlook after officially opening its US$3.4 billion project, Caval Ridge. BHP Billiton Coal president Dean Dalla Valle said the mine’s opening – attended by Prime Minister Tony Abbott – was an opportunity for BHP Billiton and Mitsubishi to “showcase a world class new mine in Queensland, which will contribute to Australia’s coal export industry”. “Today’s opening of the Caval Ridge Mine is a significant milestone for BHP Billiton,” he said at the October ceremony. “The operation will produce metallurgical coal for the steel industry and has been constructed with the latest technology to be one of the most productive, sustainable and highly performing metallurgical coal mines in…

Barnett disputes iron ore strategy

Barnett disputes iron ore strategy

WA Premier Colin Barnett has accused state’s major iron ore producers of flooding the market, forcing prices down and squeezing out higher-cost producers. In a focused attack on BHP Billiton and Rio Tinto, Mr Barnett warned he would “hate” to raise the state royalty rates, telling the companies to “remember who your landlord is”. WA’s financial stability, which is highly dependent on the iron ore industry, has become increasingly troubled across 2014 as the commodity’s price dropped nearly 40 per cent since January. “The iron ore industry and iron ore royalties have become critical to the state’s finances,” Mr Barnett said. “Normal business logic… would suggest that if we are selling a product into a market and the price is…