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Confidence in Australia stays strong for foreign players

Confidence in Australia stays strong for foreign players

AUSTRALIA has maintained its position as the world’s sixth most assured market for foreign investment, for the second consecutive year. According to AT Kearney’s 2013 Foreign Direct Investment (FDI) Confidence Index, the nation’s natural resources attracted hundreds of companies with combined annual revenue of more than US$2 trillion. In a statement, AT Kearney said the survey of 300 company executives in 28 countries showed an increase in global market optimism. “Australia remains in sixth place in the Index as continued resource development drives economic growth,” the statement said. “This year, 70 per cent of corporate investors surveyed expect near-term recovery of their companies FDI levels. “Half see their budgets as already returned to pre-crisis levels and 20 per cent expect…

‘Mining bust’ just a phase, experts claim

‘Mining bust’ just a phase, experts claim

RESOURCE industry professionals and economic analysts are speaking out against allegations of an Australian ‘mining bust’, stating the claims are based on rhetoric rather than fact. The resources sector was a central topic of media speculation in early 2013, with reports analysing the scaling back of exploration activity, rising employment cut-back figures, a reduction in investor capital and confidence, and the delay or suspension of a number of key mining projects. An alleged overreliance on mining, combined with the nervous volatility of the wider international economy, led to calls for Australia to diversify its income into new market sectors. However, many in the industry argue that Australia’s resources sector is simply transitioning through the stages of an otherwise healthy industry,…

Innovation and expansion breathe new life into Boddington gold

Innovation and expansion breathe new life into Boddington gold

Despite current investor uncertainty towards the gold industry, Newmont is a company name increasingly synonymous with confidence. Maintaining an impressive portfolio of assets globally, the company sustains its security as a primary gold producer across four continents, with operations across the US, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico. Founded in 1921 and publicly traded since 1925, Newmont is one of the world’s largest gold producers and is the only gold company included in the S&P 500 Index and Fortune 500. With headquarters near Denver, Colorado, the company has about 40,000 employees and contractors worldwide. The Australian division is controlled by subsidiary Newmont Mining Asia Pacific, and has become the company’s largest asset in the last decade. Its newest…

Rare diamond varieties keep mine on the world map

Rare diamond varieties keep mine on the world map

WHEN the Argyle Diamond Mine finally closes, it will be remembered as one of the world’s largest and most successful mines of its kind. Aside from the sheer scale of the project, which opened in 1985, the quantity and appearance of its diamonds – including elusive red diamonds – attracted unprecedented attention to the Kimberley. Thirty years on, the mine is still entrenched in the fabric of WA mining; its name remains synonymous with the region. Since coming into operation, the mine has produced more than 800 million carats of diamonds, peaking in 1994 when 42mct were produced. While leading the world in terms of quantity, the quality of diamonds is relatively low, with only 5 per cent being considered…

Cutting-edge unloaders boosting export capabilities

Cutting-edge unloaders boosting export capabilities

IN keeping with its growth strategy, Fortescue Metals Group has successfully completed an impressive upgrade to its bulk material handling facilities at Port Hedland that will pave the way for the company to reach its target export capacity of 155 million tonnes per annum. From humble beginnings in 2003 Fortescue has grown into the world’s fourth-largest iron ore producer. Its first mining operations began at its Cloudbreak mine in August 2007, with the constructionof all mine, rail and port infrastructure completed in 2008. A critical part of the company’s port infrastructure, a Metso TU601 twin cell tandem train unloader, was put into operation in April 2008 when Fortescue unloaded its first trainload of ore at its Herb Elliott Port, near…

Quest for minerals heads to the ocean floor

Quest for minerals heads to the ocean floor

IN one of the world’s first deep sea mining (DSM) projects, a British joint venture aims to begin mining for polymetallic mineral-rich nodules across a 58,000 square kilometre sea bed in the Pacific Ocean, 1500km southwest of Mexico. With the resources industry reporting falling supplies of easily accessible minerals within land-areas the of earth’s crust, companies are gradually turning their attention to the mineral supply potential in virgin territory beneath the ocean floor. UK Seabed Resources – a wholly owned subsidiary of global aerospace, defence, security and advanced technology company Lockheed Martin – and joint venture partner the Department for Business Innovation and Skills hope to capitalise on these concentrations of valuable minerals, which are layered around a central core.…

Successful capital raising pushes projects ahead

Successful capital raising pushes projects ahead

A successful Metallica Minerals rights issue has raised $2.125 million which will contribute to advancing the company’s Queensland projects towards production. Metallica received about $1.27 million from 220 shareholders, with the balance of the underwritten amount – $850,000 or 5.67 million shares – to be taken up by the underwriter, Patersons Securities. The company stated that net proceeds of about $1.9 million, in combination with existing cash reserves of about $1.5 million, would be used to advance its wholly owned Scandium-Cobalt-Nickel(SCONI) project, as well as its Weipa mineral sands project. “The company is pleased with the support it has received from shareholders, particularly in this very difficult market environment,” Metallica said in a statement. The company’s largest shareholder, Jien Mining,…

Promising results for South Korean acquisition

Promising results for South Korean acquisition

WA-based Desert Mines and Metals has wasted no time in progressing with its newest acquisition, the Daehwa Project in South Korea. Diamond drilling at the project – one of the largest of its kind in the country – has intersected high grade molybdenum and a small amount of other precious metals including tungsten. Desert Mines and Metals has worked alongside government corporation Korea Resources (Kores) to assist in exploration activities. Initial results and several test points include 7m of molybdenum at 0.26 per cent from 97.3m; 5m at 0.13 per cent from 87m and 0.9m at 1 per cent from 23.7m. Desert Mines and Metals managing director Chris Rashleigh said the initial results were promising. “We are pleased with the…

Gold price plunge prompts cost cuts

Gold price plunge prompts cost cuts

GOLD major Newcrest Mining plans to close its Brisbane office at the end of September and cut costs across its operations due to the deterioration of the gold price. Newcrest has reduced exploration activities and 20 per cent of corporate costs to deal with the price decline, in a move to focus on cash over growth. “Newcrest reconfirms its focus going forward will be on maximising free cash flow by reducing operating costs, corporate costs and capital expenditure,” a company statement said. Instead of spending a planned $1.5 billion during the 2014 financial year, Newcrest will spend about $1 billion and writedown assets to the value of between $5 billion and $6 billion. Spending would also be reduced in areas…

New iron ore project viable for development in South Australia

New iron ore project viable for development in South Australia

A preliminary economic assessment (PEA) of IMX Resources’ Mt Woods magnetite project in South Australia has delivered “highly favourable” results, demonstrating the potential for a viable near-term development at a cost of $295 million. In a statement, IMX Resources managing director Neil Meadows said the company believed Mt Woods was a unique opportunity in the Australian magnetite industry, as the infrastructure required to develop the project was already in place and being used by IMX’s existing Cairn Hill mine. “As a consequence, unlike most pre-development and current Australian magnetite projects, Mt Woods does not require large-scale capital investment and is not reliant on third parties for new infrastructure in order to develop a potentially economically viable project,” Mr Meadows said.…

Multimillion-dollar funding injection for WA rising star

Multimillion-dollar funding injection for WA rising star

EMERGING WA company FairStar Resources has secured US$260 million from a mystery backer for its Steeple Hill iron ore project in WA’s goldfields. The unknown investor will fund 80 per cent of the project through Alliance Super Holdings, and carry the project through to production with an equal 50 per cent joint venture. The money will allow FairStar to fund infrastructure, begin construction and commission a plant at the project. Additionally, the deal will allow a line of credit totalling $640 million above the funding as extra capital for the joint venture. FairStar managing director Kevin Robertson said the company has considered all options and decided the deal was the best choice. “The future prospects for FairStar have never looked…