Category: Features

Alcoa of Australia is owned 60 per cent by Alcoa Inc in the US and 40 per cent by ASX-listed Alumina Limited. The global company’s announced demerger slated for the second half of 2016 will see it become two publicly traded companies; Upstream and Value-Add. Alcoa of Australia’s 60 per cent shareholding would become part of a new global Upstream company to be created by Alcoa (which would retain the Alcoa name). Samantha James spoke to Alcoa of Australia’s subsidiary Alcoa Mining president Garrett Dixon about its Australian development plans. Q. How important are Alcoa’s Australian mines to Alcoa’s global operations? Alcoa of Australia has been an integral part of Alcoa’s global business for more than 50 years. Our WA...

By Cameron Drummond COPPER miner Sandfire Resources has been busy in 2016, increasing production at its DeGrussa mine and upgrading exploration results inside its Greater Doolgunna project. Sandfire intends to build on strong cash flows developed from its high-grade DeGrussa copper-gold mine in a year where it has reduced its debt from $120 million down to $75 million. A high grade deposit find in the surrounding Doolgunna region is also being explored, with positive initial results for future mining capability.  DeGrussa The DeGrussa copper-gold mining venture near Wiluna – 900kmnorth of Perth in the state’s Mid West – has been a shining star for Sandfire in a depressed copper market. It is also the recipient of a government-funded solar array project...

By Samantha James WHILE the recent rise and fall of the Pilbara economy has been well documented since the iron ore price peaked in 2011 and dropped to record lows in 2015, green shoots are emerging. Covering 502,000 square kilometres in northern WA, the Pilbara is synonymous with prehistoric landscapes, red dirt and its vast mineral deposits – especially iron ore. Before the area became pivotal to the state and national economy, the export of iron ore was banned due to its apparent scarcity. It was not until 1960 that the embargo was lifted and mining began in earnest. Up until this point WA iron ore production was just 10mtpa – by 1970 this figure had reached 100mtpa, and continued to grow. Since the first...

By Cameron Drummond A recently granted environmental protection license at its rare earth project near Dubbo has given Alkane Resources 1 billion reasons to be excited for the  future. Alkane started 2016 with its head held high. The Perth-based company boosted profits for the half year to December 31 by 90 per cent – bolstered by high gold prices and lower production costs – and will use this cash flow to help fund its $1 billion Dubbo Zirconia project (DZP). The company has two major projects underway in rural NSW; the DZP rare metals and rare earths mine and the nearby Tomingley gold operation (TGO), as well as interests in the surrounding region. In February this year, Alkane managing director Ian...

Fortescue Metals Group has reduced debt by US$1.7 billion in the past 12 months. Images: Fortescue Metals Group. By Samantha James FORTESCUE Metals Group has been buoyed by iron ore price increases in recent months after a depressing fiscal 2015 that saw the company scramble to cut costs and service its huge debt pile. The iron ore miner surprised the market in 2016 with a slew of positive announcements, including a potential partnership with Vale SA, a reduction in debt by US$577 million and increased shipments for the March quarter of 42 million tonnes of iron ore. Fortescue is the world’s fourth largest iron ore producer, with mining hubs at Chichester and Solomon in WA combining to produce more than 160...

By Cameron Drummond THE allocation of government funding for mineral exploration and company tax cuts in this year’s Federal Budget has been welcomed by mining industry groups amidst tough economic conditions. The Minerals Council of Australia commended the budget’s strong growth policy and its move to lower company tax rate to 25 per cent for all businesses by 2026. “ balances a careful approach to spending, the maintenance of a strict approach to tax integrity and lays out a medium term plan to promote investment and growth,” Minerals Council chief executive Brendan Pearson said. “The move to a lower company tax cut will, over time, improve the competitiveness of our tax system and promote investment and well-paid jobs, including...

MMG’s $1.4 billion Dugald River zinc project has gained special status to help cut red tape and create hundreds of jobs in north Queensland.State Development Minister and Minister for Natural Resources and Mines Dr Anthony Lynham granted prescribed project status to Dugald River, 85km north east of Mt Isa.

Independence Group (IGO) has operated in the goldfields region of WA since 2002, developing a multi-commodity focus on gold, nickel, copper, zinc and silver. The company expanded its reach in September last year with the acquisition of the world class Nova copper-nickel project. By Samantha James IGO’s takeover of junior developer Sirius Resources in a $1.8 billion deal saw the group acquire the world-class Nova-Bollinger nickel-copper development project. Nova was discovered by Sirius in 2012, labelled a tier 1 asset and immediately fast tracked to feasibility studies, which were completed in July 2014. Construction of a mine capable of producing 26,000 tonnes per annum of nickel and 11,500tpa of copper across an initial life of 10 years began in early...

OZ Minerals managed to get the ball well and truly rolling last year, with strong production numbers and a focus on cost efficiencies at Prominent Hill resulting in a 168 per cent profit jump and underlying EBITDA of $484.9 million. In 2016, OZ Minerals is using its sturdy financial position to accelerate development of the $770 million Carrapateena project, which it expects to fund from cash reserves and future profits. By Reuben Adams OZ Minerals managing director and chief executive Andrew Cole said that Prominent Hill, in South Australia, was proving itself to be “a strong foundation asset” which placed the company in the enviable position of being able to explore growth opportunities. “Production is at record levels and by maintaining...

In a weak commodity market, South32 has reduced its net debt by almost US$300 million and remains on track to meet production guidance for the majority of its upstream operations. By Rachel Seeley THE spinoff of South32 from BHP Billiton in May 2015 was touted as a major step in the evolution of BHP, designed to create long-term value for shareholders and create two successful companies. Since its listing on the ASX, the Johannesburg Stock Exchange and the London Stock Exchange, South32 has worked to reduce debt and operating costs, placing it in good stead to achieve sustained growth by taking advantage of the low market conditions. “The continuing optimisation of our high quality operations and balance sheet has enabled us...

RESOURCE industry employer group Australian Mines and Metals Association (AMMA) has called the NSW Government’s approval of a new $1 billion rare earth and metals mine in Dubbo “fantastic news” for the regional, state and national economies.