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DIVERSIFIED energy company Linc Energy has announced its successful acquisition of Rio Tinto’s dormant Blair Athol coal mine in Queensland’s Bowen Basin, just days after the company declared it would quit the ASX in favour of Singapore’s oil and gas specialities on the SGX. The junior – with interests across oil, gas and coal – reportedly plans to resuscitate the formerly lucrative mine site, creating up to 100 new jobs for the central Queensland area in the process. Rio Tinto officially closed its Blair Athol operations in November 2012, after describing the 29 year old site as “largely mined out”. The site had since entered into care and maintenance rehabilitation. According to The Australian, Linc Energy – via its subsidiary...

IN a move to deliver significant benefits to both companies, MetroCoal and Cape Alumina have signed a Merger Implementation Agreement (MIA) to create a diversified bauxite and thermal coal business with a staged development pipeline. Under the agreement, MetroCoal would offer 1.12 shares for every Cape Alumina share, in addition to providing Cape Alumina with a $3 million convertible note to supplement Cape Alumina working capital to accelerate work on the Pisolite Hills project, 50km northeast of Weipa in Queensland. The first $1 million would be made available on execution of the MIA, while the further $2 million would be available subject to the approval of Cape Alumina shareholders. Pending all required approvals, the companies reportedly expects the merger to...

CANADIAN producer Barrick Gold has reached a settlement with Gold Fields Limited for the sale of three WA gold mines, just two months after announcing the assets would go to market. In a deal worth US$270 million, Barrick Gold signed across the three primary mine sites from its Yilgarn South project, 23km south of Laverton, to the major South African gold developer in early October. Inclusive of the prosperous Granny Smith, Lawlers and Darlot mines, the deal added about 400,000oz of gold output to Gold Field’s current Australian portfolio. According to reports, Australia would become Gold Fields’ largest production hub, holding 42 per cent of the company’s total gold output. Barrick chief executive Jamie Sokalsky stated that the assets were...

A scoping study has found Atrum Coal’s flagship Groundhog anthracite project in Canada to be a low capital expenditure opportunity for a 1.8 million tonnes per annum run-of-mine (ROM) operation. The study indicated a five year initial mining, processing and transport cost of about US$85 per tonne on a contract basis, with a target of less than US$70/t as an owner-operator. Based on a 1.57 billion tonne JORC-compliant resource, the study targeted first shipment in the fourth quarter of 2014. It indicated the project could have a before-tax free cashflow of US$107 million per year, increasing to US$293 million per year at an aspirational rate of 3mtpa of anthracite production. The study was modelled on extraction from coal seam #70,...

IN a year when many gold producers experienced the negative effects of an unstable gold price, West Africa-focussed Perseus Mining doubled its total revenue for the financial year. The company’s total revenue for the period ending 30 June was $293.7 million, up from $145.7 million for the previous year. “Our financial performance in financial year 2013 was very solid, especially taking into account the recent volatility in gold price and technical challenges that needed to be overcome during the year at our flagship operation, the Edikan gold mine in Ghana,” Perseus managing director Jeff Quartermaine said. Despite this, the company experienced a drop in net profit after tax, down from $52.5 million in 2012 to $41.4 million. Perseus stated that...

FOLLOWING the upgrade of its Swedish graphite reserves, Talga Resources is hoping to raise $1.47 million in capital to fund the projects. The money would be raised by a combination of a public and private share placement – both placed at $0.05 per share – and would go towards completing economic assessments to advance the Nunasvaara and Raitajärvi graphite projects. Any leftover funds would contribute to advancing Talga’s Swedish iron ore projects, and for general working capital. Talga managing director Mark Thompson said the company had already secured new shareholders. “We are pleased to secure funds and new shareholders using a robust capital raising structure in what is a particularly challenging equity market environment,” he said. “After intense efforts by...

THE Mongolian Government is set to repeal a controversial law restricting foreign ownership in ‘strategic sectors’, following a 43 per cent decline in foreign direct investment. The Strategic Entities Foreign Investment Law (SEFIL), established in May 2012, targeted ‘strategic’ industries including mining, finance, and media and telecommunications. The law required foreign investors to seek government approval for acquisitions of more than 33 per cent equity, while acquisitions of more than 49 per cent equity required parliamentary approval. State-owned firms also required approval to obtain interest in any ‘strategic’ assets. Director of the Foreign Investment Regulations and Registration Department of the Ministry of Economic Development Sereeter Javkhlanbaatar told media a new law would seek to quell concerns about investor limitations, particularly...