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THE world’s largest private sector coal company Peabody Energy has actioned a second round of Australian job cuts, dismissing 170 positions – or 5.7 per cent of its total workforce – due to challenging market conditions. The cuts began on 22 July, and will reportedly affect all of the company’s Australian operations, including a total of eight projects in Queensland and three more in NSW. The Missouri-based coal giant announced the news just one month after its first round of cuts – which saw 450 contractor positions removed from its Australian projects – citing a need to streamline operations though aggressive cost-cutting initiatives. The company has cut more than 20 per cent of its workforce since the start of the…

A new x-ray technique developed by the CSIRO could save the Australian gold mining industry hundreds of millions of dollars each year, by detecting gold that would otherwise go unseen. The technique uses powerful x-rays to rapidly and accurately detect small amounts of gold in ore samples and is much more effective than traditional chemical analysis methods. The CSIRO, together with Canadian electron accelerator and manufacturer Mevex, undertook a pilot study on the use of gamma-activation analysis (GAA). The technique involves scanning mineral samples – typically weighing about 500 grams – using high-energy x-rays similar to those used in medical imaging. The x-rays activate any gold in the sample, and the activation is then picked up using a sensitive detector.…

A former economic adviser to US President Barack Obama has given Australian miners a beacon of hope, expressing confidence in the market’s recovery during a presentation at the 2013 Diggers & Dealers conference in Kalgoorlie last month. Amid tales of redundancies, cost cutting and mothballed projects, economic commentator Austan Goolsbee remained optimistic that Australia would return to a positive economic outlook in the long term, despite current tough conditions. “Once you get past the bumps of the next six to twelve months, countries like the United States, Australia and China have a case for optimism,” keynote speaker Mr Goolsbee said. There was no denying that many miners were doing it tough – if the 13 per cent drop in attendance…

RUNNING close behind its big brother region, the Pilbara, WA’s Mid West is a significant minerals and energy province. While the closure of several Mid West mines and the mothballing of Oakajee dealt blows to local industry, other projects achieved major growth, and in 2011 to 2012 the region contributed $2.4 billion to the Australian economy. Iron ore sales totalled more than $577 million in the period, and the $2.5 billion Karara iron ore project is set to further bolster the region’s output. Karara began ramping up production in January and is expected to deliver 8 million tonnes of product by the end of the year. In July, Geraldton Port Authority reported that iron ore mines had caused a record…

WITH gold coming off its worst quarterly loss in decades, the sector is racing to implement a slew of cost-cutting and efficiency boosting initiatives to stem the bleeding. Northern Star Resources managing director Bill Beament said that while structural changes across the mining industry were progressively reining in costs, much more would be needed before global investors returned. This capital drain from Australian resource stocks was also affecting the ability of mining companies to explore and create new mines. ‘‘We’ve got to get our cost base back to where it was in 2010, because that’s what we are dealing with; a gold price from 2010,’’ he told The Age. Mr Beament also said the refusal by most Australian gold producers…

LOCAL Goodyear conveyor belt manufacturer, Veyance Technologies, has announced a $4.5 million investment in establishing a network of company-owned conveyor belt services, training and repair facilities. This investment has confirmed ongoing company commitment to deliver owners their “lowest cost per tonne conveyed” benefit. The service centres, based at major mining hubs around Australia, will assist with all types of conveyor belting, both surface and underground. Veyance Technologies reported that its new conveyor service centres would provide global cutting edge technology in vulcanising, condition monitoring, training and conveyor belting maintenance. These ‘greenfield’ service centres would be staffed by qualified Veyance staff and remove the company’s current reliance on local engineering firms, to optimise, maintain and service conveyor belts. The initial centre…

IT has been a rocky 12 months for the global mining industry. Natural disasters, a high Australian dollar and a falling iron ore price hit many companies hard. Several juniors fell by the wayside. Even BHP Billiton – the world’s largest mining company – took some heavy hits. In its December 2012 half year results, released in February, the company announced a 38 per cent fall in earnings before interest and tax, down to US$9.8 billion. The company cited “substantially lower commodity prices, a weak US dollar and inflation” for offsetting stronger volumes and cost savings. “Commodity prices were particularly volatile in the December 2012 half year, consistent with the prevailing level of uncertainty in the global economy, although a…