Category: Features

All images: Roy Hill.   BY ELIZABETH FABRI   AT last – the $10 billion Roy Hill mine has hit its 55 million tonne per annum run rate. After overcoming significant orebody challenges during ramp up, the miner is now posting tidy profits as it nears the end of a 90 day lenders test to demonstrate sustainable levels of production. It has been a rocky road to full production for Roy Hill since sending off its first shipment in December 2015. Teething issues encountered with the orebody caused a series of delays, pushing what was originally scheduled to be complete by the end of 2016, back until late 2017. It was a tough time for the miner, but after much...

Yancoal’s recently acquired Hunter Valley Operations project.  Image: Yancoal.   BY CAMERON DRUMMOND   MANY Hunter Valley communities are intrinsically linked – historically and economically – to a mining industry which currently injects about $6bn in wages and payments to local businesses each year. Now, as coal prices receiver and stabilise, the Hunter’s economy is set for a welcome boost.   With a 2016 population of 732,000, the Hunter Valley accounts for 28 per cent of NSW’s inhabitants outside Sydney. Since the early 1800s, the Hunter’s mining operations have been a stalwart of economic activity in the region. The Hunter is no stranger to coal price cycles. Having just navigated the post-global financial crisis depression, it is looking toward a...

All images FMG.   BY ELIZABETH FABRI   NEV Power is preparing to step down after six and a half eventful years at the FMG helm – leaving some mighty boots to fill. The seasoned executive reflects on his time at FMG and the company’s next chapter, as it embarks on the $US1.5 billion Eliwana project and examines diversification beyond iron ore.   Rewind the clock four or five years and it’s hard to believe FMG is the same company that stands here today. In 2012/13, the iron ore miner was staring death in the face, drowning in a $US13 billion pool of debt just as the iron ore price was continuing its slow decline to late-2015 lows of $US38/t....

All images: Pacific National.   BY ELIZABETH FABRI   RECENT worker strikes over employment conditions have not hampered Pacific National’s next round of developments under the fresh leadership of former BHP chief operating officer Dean Dalla Valle.   It's been an eventful six months for interconnected rail freight operator Pacific National. In July, veteran mining executive Dean Dalla Valle was appointed chief executive of the company to replace David Irwin; a defining moment as Pacific National lays the groundwork for its next wave of growth options. Best known for his four decade run at BHP and recent work taking personal control of the global miner’s response to the tragic Samarco dam disaster in Brazil, Mr Dalla Valle left BHP in...

Image: GFG Alliance. Photography: Sean Kelly.   BY ELIZABETH FABRI   THE bad run has ended for the cities of the Upper Spencer Gulf, who can finally catch their collective breath as new regional investments signal hope.   Twelve months ago the Upper Spencer Gulf cities of Whyalla, Port Augusta, and Port Pirie in South Australia were existing in a state of uncertainty. In Whyalla, the sale of Arrium’s assets remained up in the air; dire times for a community which had been impacted by almost 1000 job losses leading up to Arrium entering administration. If Arrium failed to secure a new buyer, many believed Whyalla and – to a lesser extent – the State of South Australia would fall...

All images: Rio Tinto.   BY REUBEN ADAMS   SURGING demand from Chinese alumina refineries is helping push the price of the bauxite back up – for now, anyway – ahead of the country’s aggressive winter shutdown policy. Yet the long term fundamentals are very promising, and Rio Tinto’s Amrun development is poised to take advantage.   In August, Chinese bauxite and alumina imports increased 46 per cent and 123 per cent respectively. By late October the alumina price, based on Metal Bulletin’s FOB Australia index, had climbed 53 percent to $469.74 a tonne in two months; its highest level since the index was launched in 2010. In an October note, Wood Mackenzie senior analyst Ami Shivkar stated that there...

Exploration drilling at Greater Doolgunna. All images: Sandfire Resources.   BY CAMERON DRUMMOND   AS development of the Monty deposit continues to schedule, Sandfire Resources is making moves to unlock the full potential of the Greater Doolgunna orebody.   ‘Exploration and expansion’ has been Sandfire Resources’ mantra in 2017 against the backdrop of a very healthy copper market. As the Monty development (Springfield JV) progresses, a key focus for Sandfire has been intense, multi-pronged drilling programs around its Greater Doolgunna project and the Springfield JV which covers 5846 square km. A farm-in agreement between Sandfire and Enterprise Metals was also signed in October for Enterprise’s entire Doolgunna project area. After spending $1.5m drilling in the area, Sandfire can sole fund...

Rio Tinto’s Silvergrass iron ore operation. Image: Rio Tinto.   BY CAMERON DRUMMOND   IT'S been tough – but things are looking up for the Pilbara mining region, as iron ore continues to rip higher on steady Chinese demand and exciting opportunities in lithium and gold come into play. Known as the engine room of Australia, the WA Pilbara is the largest iron ore producing region in the world, accounting for almost 37 per cent of global production and 52 per cent of seaborne exports in 2015. Iron ore mining in the Pilbara commenced in the 1960s, after the Australian Government lifted an embargo on iron ore exports in 1938 in the lead up to World War II. By the...

All images IGO.   BY ELIZABETH FABRI   LESS than a month since the official opening of the Nova project, Independence Group  -- in the hunt for the next Nova-style deposit -- has again increased its footprint in the Fraser Range region through a new Joint Venture deal. Independence Group (IGO) is on the rise again in FY18. After bringing its $443 million Nova nickel-copper-cobalt mine into commercial production on 1 July, the mine’s balance sheet is set for a turnaround year as it adds an extra 26,000 tonnes of nickel, 10,000 tonnes of copper and 800t of cobalt to its annual production. Over the last two years, the company’s focus has been developing Nova. But now  the project is...

Grange Resources’ historic Savage River magnetite mine. Image: Tasmanian Minerals and Energy Council.   BY ELIZABETH FABRI   LEFT behind during the mining boom while other State’s prospered, Tasmania is on its way back with a string of mine reopenings signalling renewed confidence for the sector.   After battling tough, the Tasmanian mining sector is making a return. Unlike its mainland counterparts, Tasmania was hurt by a resources boom side-effect; the strong Australian dollar. With an economy heavily reliant on trade exposed industries, Tasmania felt the sting when the Australian dollar surpassed the US dollar in 2010/2011, and then when commodity prices tumbled. “The high Australian dollar (we all remember when it hit $1.10 U.S) was a drag on all...

  BY CAMERON DRUMMOND   AFTER consolidating its Australian processing operations, Iluka is looking to restart zircon production in Australia and progress a major development of its newly acquired Sierra Rutile operation.   Perth-based Iluka Resources is a major international mineral sands producer and marketer with a major production base in Australia, as well as mining and processing operations in Sierra Leone. It is the world’s largest producer of zircon sand and a major producer of high-grade titanium ores, natural and synthetic rutile. Iluka has recently gone through a transformational period, consolidating its Murray Basin plant to process all its Australian material at its Perth Basin operation. The miner is also ramping up development of its $393 million Sierra Rutile...