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Funding secured for African iron ore project

Funding secured for African iron ore project

PERTH-based miner Sundance Resources has raised $40 million from Noble Resources and an investor consortium to proceed with its Mbalam-Nabeba iron ore project in Cameroon and the Democratic Republic of the Congo. As part of the deal, Noble will invest $20 million though unsecured convertible notes, at a 10 per cent interest rate, which can be converted into a 30 per cent stake for a future marketing firm for the project. Noble will also receive 200 million options, excisable at 12 cents a share if the marketing firm does not proceed. The investor consortium – comprising Blackstone, the DE Shaw Group and Senrigan – would invest the other $20 million through a convertible note issue, which could later be used…

Rare niobium project closes in on production

Rare niobium project closes in on production

SIGNIFICANT progress is being made at Cradle Resources’ Panda Hill niobium project in Tanzania, with test work and preliminary economic assessment programs ahead of schedule. The company reported that metallurgical test work and environmental and social impact assessments were at an advanced stage. Cradle managing director Grant Davey said the company was on track to complete all preliminary work by early 2014. “The study is progressing well, on time and on budget, with excellent results to date,” he said. “It is worth noting that a lot of the work being done on this study is at a pre-feasibility study level and we are working with world-class consultants. “We will have a clear, credible picture of this exciting project when the…

Weak coal market prompts NSW job cuts

Weak coal market prompts NSW job cuts

ONE of NSW’s largest underground coal producers has announced it will cut up to 120 positions from its seven mine sites across the state, due to ongoing tough market conditions. In late October, Centennial Coal stated the decision was based on record-high production costs, a weak US dollar export thermal coal price and a “stubbornly high” Australian dollar. Centennial has placed two of its mines on care and maintenance in the past 12 months, in an attempt to stem its production costs and to raise productivity. While some improvements had been achieved, gloomy market conditions were proving too strong against business profitability, the company stated. “Unfortunately, as there are few signs of an immediate improvement, and following the conclusion of…

Iron ore keeps WA resources on track

Iron ore keeps WA resources on track

NEW statistics show WA’s resources sector improved last financial year on the back of iron ore and gold sales, despite widespread market volatility. The Mineral and Petroleum Industry 2012-13 Review by the WA Mines and Petroleum (DMP) department found iron ore and gold accounted for 84 per cent or $65.3 billion of all mineral sales in 2012-2013. Fuelled by a strong international demand, particularly from China, iron ore was the state’s strongest seller for the period, with 73 per cent of total sales at $56.4 billion. According to the report, the falling Australian dollar helped the sector cope with falling commodity prices, which resulted in 513 million tonnes of iron ore exports; a 13 per cent increase on the previous…

Mining giant fined for fatality

Mining giant fined for fatality

RESOURCES giant BHP Billiton and subcontractor HWE Newman Services have been fined more than $200,000 for a fatal incident in August 2008. Mobile maintenance supervisor Paul Sparkes, 29, was killed while working at BHP’s Yandi iron ore mine, (then operated by HWE) near Newman in the Pilbara. Mr Sparkes was hit in the arm by a tyre-handling device, which had broken off the machine body after the tyre of a heavy earth mover overinflated. Five years after the incident, the Perth Magistrates Court found BHP and HWE guilty of failing to provide sufficient training for Mr Sparkes’ position, and for failing to provide the necessary equipment for safe tyre assembly. BHP was fined $102,000 and HWE $136,000. Both companies will…

Veteran prospector condemns WA red tape

Veteran prospector condemns WA red tape

AUSTRALIAN prospector and mining entrepreneur Mark Creasy has spoken out about government regulations making it hard for explorers and prospectors to break new ground in WA. Speaking at the launch of The Miners — Stories from the Industry that Drives Modern Australia by veteran mining journalist Barry Avery, Mr Creasy expressed candid opinions on the future of mineral exploration and development in Australia, and the evolution of the resources sector in recent decades. “Exploration prospecting is, on the average, a losing business,” Mr Creasy said. “But if you’re going to encourage people to invest – whether it’s their labour or their capital – you need to try and keep the costs of entry as low as possible. “Our governments compete…

Gold leaf discovery in WA eucalypts

Gold leaf discovery in WA eucalypts

CSIRO geoscientists in Perth have discovered trace gold particles in eucalyptus trees in WA’s Yilgarn Craton, signalling major progress for environmentally friendly means of finding new gold. With gold discoveries decreasing by 45 per cent during the past decade, the finding could be a key factor to uncovering new, quality gold supplies. The researchers hypothesised that the trees absorbed gold through their root systems, while scouring for ground water in times of drought. After transversing the trunk, the gold particles are concentrated into the trees’ leaves, where their presence can be detected using the CSIRO’s patented Maia detector for x-ray elemental imaging. “Gold is probably toxic to plants and is moved to extremities, such as leaves, or to preferential zones…

QLD working with industry to boost explorer sentiment

QLD working with industry to boost explorer sentiment

THE Newman Government continues to introduce reforms and incentives designed to inject new life into Queensland’s struggling mineral exploration sector, which plummeted 31 per cent for the 2012-2013 financial year. The Queensland Exploration Council (QEC) scorecard, released late October, reported that about one third had been wiped off the market capitalisation of Queensland-based junior miners in the past 12 months, and 81 per cent across the past two years. The QEC’s explorer sentiment survey also indicated that Queensland had a negative rating compared with other states, on key factors such as government/departmental assistance, exploration permit processes, environmental regulations and policy uncertainty. “These findings are despite a raft of proposed, in-train and recently completed government initiatives to reduce red tape and…

Mining services specialist knows the key to ultimate productivity

Mining services specialist knows the key to ultimate productivity

INNOVATION and teamwork are key ingredients to achieving the lowest unit cost in underground diamond drilling; something that Swick Mining Services and Sandfire Resources have proven at the De Grussa copper mine project. As a recognised leader in mineral drilling, WA-based Swick provides underground diamond, reverse circulation and underground production drilling to leading mining companies. The company specialises in underground diamond drilling in hard-rock, brownfield operations in Australia, the Americas, Asia and Europe, producing high quality geological core samples for its clients, at the lowest unit cost, while maintaining high safety standards. Innovation is a key ingredient to Swick’s success. A fully mobile and integrated rig unit, the Swick Mobile Underground Diamond Rig is easy to pack and move. It…

Copper production fires up following official opening

Copper production fires up following official opening

WHILE not immune to the fluctuations of the market, Sandfire Resources seems assured of a bright future due in large part to its high-grade, high-margin DeGrussa copper-gold-zinc project. The world-class DeGrussa project, in the northeast part of Sandfire’s Doolgunna project tenements and about 900km east of Perth, began production from both open pit and underground mining in February 2012, less than three years after its first exploration holes were drilled. The DeGrussa copper-gold resource was one of Australia’s most exciting recent greenfield discoveries: initial drilling returned some of the best intersections seen in the WA mining industry’s recent history, with the discovery hole DGDD-001 intersecting a total of 78.3m of high-grade copper-gold mineralisation including 53.2m at 17.3 per cent copper…

Award-winning company positioned for future mineral sand benefits

Award-winning company positioned for future mineral sand benefits

WA’s annual Diggers and Dealers Conference is widely recognised as one of the most important gatherings on the mining industry’s calendar. A celebration of mining achievements, technology progress and new mineral discoveries, Diggers and Dealers attracts a delegation of hundreds of mining and exploration companies, brokers, bankers, investors, financiers and mining service industries from across the Southern Hemisphere. Beyond the traditional powerhouse companies and their acclaimed projects however, the forum gives the opportunity for junior explorers to display their own burgeoning projects, and to gain recognition within the wider Australian and international mining arenas. Having won the Diggers and Dealers Best Emerging Company award at the 2013 conference gala dinner in Kalgoorlie, Sheffield Resources is one such company that has…