Category: Features

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.

By Samantha James FIRST gold pour at the Thunderbox gold mine in WA was achieved ahead of schedule in mid-February 2016, with ramp up set to double Saracen Mineral Holdings’ annual gold production to more than 300,000 ounces. Saracen owns the producing Carosue Dam open pit and underground gold operations, the Thunderbox open pit mine and recently refurbished Thunderbox carbon in leach (CIL) plant, as well as gold and nickel exploration and development projects in WA. The company is completing several studies into the viability of developing underground projects to extend the life of mine at Carosue Dam. In early February 2016, Saracen announced that commissioning of the Thunderbox CIL plant and the first mining of the Thunderbox open pit...

By Samantha James THE inevitable mothballing of coal mines around the world will force the industry to question who is responsible for the rehabilitation of the abandoned sites, and what best practices can reduce the long term impact on native environments. When left untended, open pits below groundwater level fill with rain and groundwater to become pit lakes, and large regions with abandoned, un-reclaimed areas turn into lake districts. Above groundwater, pits are left as large holes in the landscape known as final voids; they prevent rehabilitation of native plants and animals or reuse as agricultural land. NSW is feeling the impact of final voids keenly, with more than 500 derelict mines across the state. Further issues are anticipated with the...

By Rachel Seeley AS the world’s second largest zinc resource, the McArthur River Mine (MRM) is a key operation in Glencore’s portfolio. Rachel Seeley spoke to MRM general manager Sam Strohmayr about the environmental challenges being met at the operation. Q. Please provide a brief overview of the McArthur River Mine. Glencore’s McArthur River Mine (MRM) is located in the remote Gulf of Carpentaria, 900km southeast of Darwin. MRM is a world-class zinc-lead mine with a long future ahead of it. It is an important part of the Territory’s resources history and continues to make a big contribution to the Territory and the nation. Originally discovered in 1955, the Here’s Your Chance zinc-lead deposit was not commercially mined for 40...

By Rachel Seeley 2015 was a year of change for North Queensland Bulk Ports Corporation, as it responded to tough trading conditions faced by customers by becoming more cost competitive. Ready access to transport corridors and shipping channels, as well as its close proximity to the state’s mining, industrial and agricultural sectors and Asia’s growing markets, means that North Queensland Bulk Ports Corporation’s (NQBP) is ideally positioned for sustainable growth. Already accounting for more than half of the state’s tonnage and with a total asset base of $626 million, NQBP’s seaport facilities handle a range of bulk cargoes including coal, bauxite, sugar, molasses, grain, petroleum, fertiliser and general cargo. NQBP is one of Australia’s largest port authorities, responsible for the...