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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...

SYDNEY-based Igloo Shelters has supplied complete container and shelter packages around Australia and overseas for more than 10 years. The Igloo shelter design not only allows for an efficient and inexpensive alternative to a standard fixed building but also enables easy set up, dismantle and relocation – ideal for anyone looking for portable shelters, roofing or temporary cover solutions. Igloo Shelters operations manager Joe Caruana said being a subdivision of Price and Speed Containers enabled the company to deliver modified shipping containers to act as workshops, site offices and lunch rooms, combined with a high quality, multi-purpose shelter structures. “The shelters are made from a curved structural steel framework covered by a unique PVC coated fabric, rather than the traditional...

EXPLORATION in WA has been hampered by access difficulties. In brownfields areas, issues often include the positioning of flooded open pits, waste dumps, tailings dams or even roads preventing access. In greenfields areas, awareness of environmental impacts in previously undisturbed or sensitive areas has seen a substantial reduction in the amount of clearing allowed for access. WA-based diamond drilling company West Core Drilling – the quality coring company, is assisting exploration and mining companies to overcome these obstacles by providing access solutions. Its modified LF90 core drilling rigs allow them to drill at much shallower angles than most conventional surface coring rigs (-30 degrees compared to the standard of -50 degrees).  This has allowed clients to test otherwise inaccessible areas,...

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...

A PROPOSED BHP Billiton spinoff could be listed on the London Stock Exchange in a surprise back flip from the mining giant aimed at placating shareholders. The planned demerger would create a new entity – referred to as NewCo – incorporating BHP’s aluminium, coal, manganese, nickel and silver assets. Under the initial proposal, NewCo was to have its primary listing on the ASX and a second inward listing in Johannesburg. But in a move to appease shareholders, BHP chairman Jacques Nasser last month announced the company was looking at an additional London listing. “Since the announcement we have been able to engage extensively with investors and other stakeholders...we have been pleased by the support for the demerger and the level...

THE WA Supreme Court has blocked an attempt by Clive Palmer’s Mineralogy to terminate an agreement giving CITIC Limited mining rights at the $10 billion Sino Iron project. Last month Mineralogy served Chinese-owned CITIC a 21-day termination notice on its right to mine iron ore at the Pilbara-based Sino Iron magnetite project, which began exporting late last year after lengthy delays and cost blowouts. The partners have been locked in a fierce battle in the WA Supreme Court regarding royalty payments, which Mineralogy alleged had not been paid. Mineralogy director Clive Mensink, Mr Palmer’s nephew, said CITIC had failed to address a default notice issued more than two years ago, relating to billions of dollars in losses. “Not only has...

FORTESCUE Metals Group has lost a bid to block an iron ore junior’s access to its Pilbara railway in a WA Supreme Court decision handed down last month. In 2013 Brockman Mining submitted a proposal for access to the rail, owned by Fortescue subsidiary The Pilbara Infrastructure (TPI), under the state’s third-party access laws. While the rail was built under a state agreement that required TPI to promote third party access, Fortescue called Brockman’s proposal invalid and began proceedings against Brockman’s application in October last year. The Supreme Court last month dismissed Fortescue’s claim, allowing Brockman to pursue its access ambitions with the WA Economic Regulatory Authority and TPI. In a statement, Brockman said it would take the next necessary...

QUEENSLAND’S coal miners look set to shed more than 1000 jobs as tough market conditions continue to take their toll on Australia’s second biggest export. Last month BHP Billiton Mitsubishi Alliance (BMA) announced it was cutting about 700 jobs from its Bowen Basin metallurgical coal mines, blaming challenging market conditions. The price of Queensland metallurgical coal dropped below US$115 per tonne in September, a long way short of the US$300/t records reached in 2011. BMA asset president Lucas Dow said the joint venture had to act to guarantee the long-term viability of the business. “BMA will continue to work with employees and contractors throughout the process and ensure everyone is treated fairly and with respect,” he said. “We will also...

WA’s mineral and petroleum industries set a new income record in financial year 2014 in the face of soft global demand for commodities. According to statistics released by the Department of Mines and Petroleum (DMP) in mid September, WA’s resources sector raked $121.6 billion into the state and national economies in FY2014; a near 20 per cent increase on the previous financial year. DMP pointed to Australia’s weakening dollar, which averaged US$0.92 for the period, as the primary ground for the results, with a 10.5 per cent drop against the greenback working to offset falling commodity prices. “Traditionally perceived as a commodity currency, the Australian dollar decreased inline with falling commodity prices and therefore shielded producers to some extent from...

A second acquisition deal with Norilsk Nickel will see Poseidon Nickel acquire the Lake Johnston nickel project, which has been on care and maintenance since April 2013. In July, Poseidon entered an agreement to acquire the Black Swan project, including an open cut mine and nickel sulphide plant. The latest deal, the cost of which has not been disclosed, is for the Lake Johnston tenements, resources and infrastructure, 440km east of Perth and 117km west of Norseman. Together with its existing Windarra project, Poseidon now has near term production potential at three mineral provinces in WA. The new project comprises 11 mining leases, 10 exploration licences and one prospecting licence hosting the Emily Ann and Maggie Hays deposits. Maggie Hays...

WITH a mineral inventory increase of more than 100 per cent and the identification of three new drilling targets, Rox Resources has demonstrated the continued prospectivity of the Fisher East nickel sulphide belt. The company announced a maiden resource estimate for the Musket deposit, within its Mt Fisher project in the North Eastern Goldfields, of 2.1 million tonnes grading 1.8 per cent nickel for 37,500t of contained nickel. Using a 1 per cent cut-off grade, about 64 per cent of this resource is within the higher confidence indicated category. Together with the existing resources from the Camelwood deposit, the project’s resources now stand at 3.6mt grading 2 per cent nickel for 72,100t of contained nickel. About 52 per cent of...