Category: Features

  All images: Whitehaven Coal      BY: JESSICA CUMMINS   The largest high quality coal producer in the Gunnedah Basin, Whitehaven Coal, finds itself perfectly positioned to capitalise on rising demand from Asian markets. Against the backdrop of coal prices sitting at seven year highs, The Australian Mining Review speaks with chief executive Paul Flynn about Whitehaven’s outlook following its most important acquisition.   FY17 results for Australian coal producers placed Whitehaven as one of the industry’s leaders, with a significant jump in net profit from $20.5 million to $405.4m year on year. Now, with met coal prices at seven year highs, Whitehaven remains on track for a record financial result in FY18. June Quarter ROM production of 5.9...

  All images: City of Karratha       BY: JESSICA CUMMINS     The Pilbara support service hubs of Port Hedland and Karratha are preparing for a new wave of growth, as the region’s revitalised resources sector changes gear.     The mining centres of Port Hedland and Karratha will be the centre of a new wave of mining and resources activity. Last month, Fortescue Metals Group approved its new $US1.3 billion Eliwana project, which is set to create 1900 jobs during construction. BHP’s $4.7 billion South Flank will replace its Yandi mine, creating about 3000 construction and operational positions, while Rio Tinto expects to make a final investment decision on its massive Kooldaideri project by the end of...

BY: JESSICA CUMMINS   In the final stages of debt financing discussions over its 823,000oz Karlawinda Gold Project ahead of construction in the second half the year, Capricorn Metals is working in parallel to further enhance the value of this compelling project – and the results have been outstanding.   CAPRICORN has a very low profile for a company lining up to become one of Australia’s next significant gold producers. After acquiring its flagship Karlawinda Gold Project – 65km, southeast of Newman in WA – at the beginning of 2016, Capricorn has moved quickly towards development.   In June, an optimisation study increased the value of an already attractive project by $100m, with improved rates of return and a quicker...

  A diamond rig at Doolgunna. All images: Sandfire Resources     BY: JESSICA CUMMINS   A cashed up Sandfire Resources is pursuing a multi-pronged strategy to replace production from its depleting flagship DeGrussa operation, which is expected to reach the end of its life in 2022 on current reserves.   SANDFIRE’s replacement and growth strategy includes taking advantage of M&A opportunities in Australia and overseas,  an aggressive $30 million regional exploration campaign around DeGrussa, and the rapid development of its $US250m Black Butte project in Montana. The recent $72.3m purchase of Talismans’ 30 per cent interest in the Springfield Exploration and Mining Joint Venture gives Sandfire full ownership of the Monty copper-gold development, Springfield and Halloween West. Neighbouring Sandfire’s...

Kwinana Industries Council director Chris Oughton. Image: KIC.     BY REUBEN ADAMS   TIANQI'S decision to establish a lithium downstream processing facility at the Kwinana Industrial Area (KIA) was a watershed moment. It not only flagged a new wave of growth for the KIA, it was synonymous with a broader step change for WA’s resources sector – from ‘dig and deliver’ into value-added processing.   The Kwinana Industrial Area  is the heart of the Western Trade Coast (WTC), WA’s premier industrial area which pumps about $15 billion into the State economy each year.  The KIA could see its current $11 billion per annum contribution to the WA economy skyrocket as this push toward secondary processing and battery manufacturing gains...

Image: Chalice Gold.   BY ELIZABETH FABRI   RECENT success at Kirkland Lake’s Fosterville gold mine has sparked a new wave of activity in regional Victoria. But it’s not just gold; zinc-copper, battery metals, and mineral sands projects are also accelerating toward development.   Victoria's mining sector, which has flown under the radar for years, has been reinvigorated. News the Fosterville gold project will be ramping up production to 400,000 ounces per annum by 2020, after mine resources were upgraded from 1moz to 1.7moz earlier this year has caused a buzz. Just ask Melbourne Mining Club chairman Richard Morrow. The industry advocate told The Australian Mining Review the Fosterville update had opened up new opportunities for Victorian miners, and the...

QLD Resources Investment Commissioner Todd Harrington.    BY ELIZABETH FABRI   QLD Resources Investment Commissioner Todd Harrington will be part of a panel discussion on Transforming Regional QLD at the upcoming QME conference and exhibition in Mackay. We spoke with Mr Harrington ahead of the event about the biggest issues facing the industry, investment opportunities, and the global importance of QLD metallurgical and thermal coal.     Q. What topics will you cover as part of the QME panel discussion on Transforming Regional QLD?   QLD has got some of the best geology. We’ve got the best metallurgical coal, some very good thermal coal, we’ve got copper, lead, zinc, silver, and then oil and gas, both conventional and unconventional. The...

BY ELIZABETH FABRI   GOLD and nickel have been the lifeblood of WA’s Goldfields region for 125 years. But this is about to change – newcomer lithium is taking a seat at the table as demand for battery metals signals new opportunities in downstream processing.     Neometals' plan to build a 10,000 tonnes per annum lithium hydroxide production facility moved a step closer after it inked a deal to sub-lease a site in West Kalgoorlie for the refinery in early June. The proposed 40 hectare property is 5km from Kalgoorlie, and only 70km from its Mt Marion lithium operation, which is jointly owned with majority partner Mineral Resources. The site’s proximity is a huge shot in the arm for...

All images: Image Resources.   BY REUBEN ADAMS   THE mineral sands market continues to tighten in 2018 with prices increasing as a result – particularly in zircon. It’s in this positive pricing environment that Image Resources is fast-tracking development of its high-grade, zircon-rich flagship Boonanarring mineral sands project, 80km north of Perth, WA.   Boonanarring is considered one of the highest-grade mineral sands projects in Australia – and about 70 per cent of revenue will come from zircon. The low capital cost, short lead time to production and strong forecast cash flow, coupled with multiple growth options positions Image as an exciting new player in the mineral sands space. Reuben Adams spoke with Image managing director Patrick Mutz.  ...

All images: Havilah Resources.   BY ELIZABETH FABRI Diversified junior Havilah Resources has been busy. In June, the company announced high cobalt recoveries at Mutooroo, launched a due diligence agreement with SIMEC, and divested its North Portia mine. Elizabeth Fabri spoke with Havilah chief executive Walter Richards about the company’s timeline to production for its Kalkaroo and Mutooroo projects.    Q. You recently flagged the sale of Benagerie Mining Lease, comprising the Portia and North Portia mines, for $14.7 million and a 2 per cent royalty. Why did you sell?   Havilah has established a mutually beneficial relationship with Consolidated Mining and Civil (CMC) over the past three years and together we have made a success of the Portia gold mine....

FMG’s third chief executive Elizabeth Gaines. All images: FMG.   BY ELIZABETH FABRI   THE resignation of Fortescue Metals Group (FMG) long-term boss Nev Power in February marked the end of an era for the iron ore giant. But it hasn’t taken long for new chief Elizabeth Gaines to begin paving a legacy of her own, as FMG diversifies into new markets and commodities, and advances its $US1.275billion Eliwana project.   Less than six months since her promotion from chief financial officer to chief executive, Elizabeth Gaines has settled well into the FMG driver’s seat. When announced as Nev Power’s replacement back in November, it was clear Ms Gaines had some big shoes to fill – who can forget Mr Power’s...