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SIRIUS Resources has signed a $440 million syndicated facility agreement with four top tier banks to fund the development of its 100 per cent owned Nova nickel mine in WA. Australia and New Zealand Banking Group, BNP Paribas, the Hong Kong and Shanghai Banking Corporation and Westpac Banking will participate equally in the facility, which combined “generationally low” interest rates, no hedging requirements, early repayment flexibility and an option for Sirius to retain free cash. Sirius said the pricing, terms and conditions reflected the project’s low technical and commercial risks, and the competitive banking environment for quality projects. Key points of the financing include no financial penalties should the facility not be fully drawn; a long tenor fixed schedule of...

THE beleaguered thermal coal price will begin to increase this year, however poor Chinese demand will continue to put pressure on the market, Whitehaven Coal has predicted. In its December quarterly report, the Australian miner revealed it had sold a record 6 million tonnes of coal in the second half of 2014, most of which was thermal. Whitehaven achieved an average sale price for its export thermal coal of US$66.07 per tonne in the quarter, down from US$82.28/t in the December 2013 quarter. The benchmark Newcastle thermal coal index dropped 6.7 per cent during the December quarter. However, Whitehaven predicted the thermal coal price would record a “stable to gradual” increase in 2015, despite leading forecasters tipping a further drop...

FORTESCUE Metals Group has increased its Pilbara iron ore mineral resource by more than 300 million tonnes and outlined at a new deposit within the Chichester hub. The Australian miner announced in January it had discovered new resources at its existing Cloudbreak and Christmas Creek operations during drilling in the middle of last year. Fortescue added 70mt of resources – with 37mt classified as indicated – to the 40 million tonne per annum Cloudbreak mine, and 46mt of resources – 19mt indicated – to the 50mtpa Christmas Creek operation. In a statement, the company said the new resources were at or very near the surface and were expected to be dry and have a low strip ratio. “They will now...

ARTIST Jamie North has given the by-product of iron ore smelting a new lease on life, recycling slag and using it in conjunction with concrete to create a set of sculptures on display at the National Gallery of Victoria. The six impressive rock columns are made from materials collected in collaboration with Australian Steel Mill Services from the stony waste matter that is separated from metals during the refinement process. Each piece is entwined with native vines that will bloom clusters of cream flowers with red or pink throats, showing how plant life can emerge from a state of erosion. The plants will eventually overrun the pillars, reflecting “nature’s awesome power to survive the most baron environments, even penetrating rock,...

NEW coal projects are edging closer to operation amid industry claims that the coal price has bottomed out. The $1.7 billion Eagle Downs coal project, an equal joint venture between Vale Australia Holdings and Aquila Resources, is a drivingforce behind the sector’s revived optimism; the 48-year project is expected to initially peak at a production rate of 5.9 million tonnes per annum and average at 4.5mtpa. The mine’s product has been assessed as “low volatile, standard-grade hard coking coal and the brand is expected to be well received in global metallurgical coal markets”, according to Aquila Resources. The joint venture, Bowen Central Coal (BCC), is constructing an underground longwall mine 25km southeast of Moranbah and 2km east of BHP Mitsubishi...

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...