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BHP Billiton’s newest Pilbara mine and processing hub has officially opened, and will increase the company’s WA total annual iron ore supply chain output to more than 220 million tonnes per annum. The US$3.6 billion Jimblebar iron ore project, 40km east of Newman, was opened in late April by WA Premier Colin Barnett, BHP iron ore president Jimmy Wilson and representatives from Japanese joint venture partners ITOCHU Corporation and Mitsui and Co. The site is expected to deliver phase one capacity of 35mtpa of iron ore by the end of the 2015 financial year. Long term, Jimblebar may be ramped up to 55mtpa production capacity following a positive assessment of market demand and broader debottlenecking of the supply chain. This...

EMERGING copper producer Finders Resources has finalised a US$210 million funding package to expand production at its high grade Wetar copper project in Indonesia, from 3000 tonnes per annum to 28,000tpa. A syndicate of banks will provide US$165 million in senior loan facilities, with leading international trading house Daewoo International Corporation investing an additional US$45 million in project level equity. Finders managing director Barry Cahill said Daewoo and the syndicate of banks were sophisticated global resource project financiers that had conducted extensive project due diligence. “The support of these experienced project financiers is an extremely pleasing endorsement of the Wetar copper project,” he said. Finders, which only began production from Wetar on 31 March this year, reported that it expected...

BHP Billiton has placed its WA-based Nickel West assets on the market as it ramps up plans to simplify its commodity portfolio. The company recently named nickel as one of several non-core assets to be primed for divestment, with its refined commodities portfolio to only feature iron ore, copper, coal and petroleum, in a ‘four pillar’ plan. The divested assets, including aluminium, manganese and zinc, would be spun off into a new entity and handed back to shareholders. In mid May, Nickel West president Paul Harvey told the company’s 1800 workers that BHP’s nickel assets would likely be sold off, either in part or in full. “As part of this process, we will shortly be inviting third parties to visit...

INDIAN conglomerate Adani is a step closer to opening Australia’s biggest coal mine, after the Queensland Government granted approval for the $16.5 billion Carmichael mine. Federal approval is still required for the proposed 10 billion tonne project, 160km northwest of Clermont in Queensland’s northern Galilee Basin. The project includes the construction of six open cut and five underground mines; a 189km rail line; on and offsite processing facilities and water supply infrastructure; and a workers’ accommodation village and airport. The mine is expected to produce 60 million tonnes per annum of thermal coal during a 90-year operating life, with the first coal shipment forecast for 2016. The project has the potential to create up to 2500 construction and 3900 operational...

A potential strike by tugboat workers at Port Hedland port could cost Australia up to $100 million per day in iron ore exports, warned BHP Billiton. In a ballot conducted by the Maritime Workers Union (MWU), 100 per cent of workers voted in favour of work boycotts for 24 hours, and 98 per cent voted to strike across 48-hour and seven-day periods at the world’s largest bulk export port. The industrial action – reportedly stemming from unsatisfactory payment and annual leave entitlements – can be lawfully undertaken within 30 days of the ballot, according Fair Work Australia guidelines. The workers would also have to give their employer, tugboat operator Teekay Shipping, three days notice before any stop-work action. MWU said...

THE latest merger attempt between the world’s two largest gold producers has been terminated following ongoing asset disputes. Canada’s Barrick Gold confirmed it had been in talks with US rival Newmont Mining to become one global mining force, stating the companies had negotiated a term sheet for a proposed merger, which was agreed upon and signed by both parties on 8 April. However, talks were abandoned in late April following a deadlock on the companies’ Pacific-based assets. “Although Barrick believes the interests of shareholders are best served through the completion of this business combination, Newmont’s board has determined that the interests of Newmont’s shareholders are best served by remaining independent,” Barrick stated. “Since then, Newmont has sought to renege on...

AUSTRALIA’S sluggish resources sector is one of the rare winners from a largely austere 2014 to 2015 Federal Budget, as the Abbott Government maps a course toward achieving a budget surplus by the end of the decade. A reiterated pledge to remove the carbon and mineral resources rent taxes was accompanied by a 1.5 per cent company tax cut, generous exploration incentives, and cuts to existing red and green tape. The diesel fuel tax rebate scheme would also remain. Association of Mining and Exploration Companies chief executive Simon Bennison called the Budget “sensible”, and said restoring Australia’s reputation for investment in mining and exploration would be a crucial outcome. The Exploration Development Incentive (EDI) – introduced from 1 July –...

TWO local Alaskan charities will be gifted Rio Tinto’s 19.1 per cent shareholding in Northern Dynasty Minerals, owner of the ambitious Pebble mine project. Rio Tinto’s divestment followed a late 2013 strategic review that concluded the polarising Pebble Project did not fit with its strategy. The Northern Dynasty shares will be divided equally between the Alaska Community Foundation – to fund educational and vocational training – and the Bristol Bay Native Corporation Education Foundation, which supports educational and cultural programs in the region. Rio Tinto Copper chief executive Jean-Sebastien Jacques said Rio Tinto had long and historic ties to Alaska and would “continue to see Alaska as an attractive location for potential future investment”. “By giving our shares to two...

PERTH-based explorer Peak Resources has delivered encouraging pre-feasibility results for its Tanzanian flagship project, declaring it “one of the world’s highest grade and largest rare earth deposits”. Ngualla Carbonatite, in southwestern Tanzania, was found by Peak’s independently contracted mining consultancy Orelogy Group to contain a maiden mineral resource of 170 million tonnes grading 2.24 per cent rare earth oxide (REO), and a maiden ore reserve of 20.7mt grading 4.54 per cent REO (total REO plus yttrium). The study established an “economically robust project base case” at 10,000 tonnes per annum of high purity REO. The average operating cash flow was estimated at $116 million per annum post tax and royalties ($174 million pre-tax and royalties) across a 58-year mine life....