Category: Features

By Jane Goldsmith August 13, 2015 ANGLO American’s global portfolio, spanning iron ore, manganese, metallurgical and thermal coal, copper, nickel, platinum and diamonds, has undergone notable reductions since the start of 2015. In July, the company announced workforce cutbacks of up to 53,000 people globally, after flagging the sale of underperforming assets. In its financial report for the six months ended 30 June 2015, Anglo American reported group underlying earnings before interest and tax (EBIT) of US$1.9 billion; a 36 per cent decrease year-on-year. The company blamed acutely weaker commodity prices for the results, despite globally weaker producer-country currencies and cost reductions partially offsetting the conditions. In response, Anglo American accelerated productivity improvements and indirect and capital cost reductions across…

By Courtney Pearson August 13, 2015 THE story has been all positive for Northern Star Resources which became one of Australia’s top three gold producers in 2014 and has enjoyed climbing production and sales results ever since. Northern Star Resources ended the 2015 financial year with $178 million in cash, bullion and investments; nearly double the previous year’s $96 million result. The company also retired the last of its bank debt. Record gold sales in the June quarter led to a final financial year result of 580,784oz, which was within its full year guidance of between 550,000oz and 600,000oz. “These results mark the end of our first chapter as a company and it’s certainly not the end of the story,”…

By Reuben Adams 16 July, 2015 LOCATED 560km north of Adelaide, Olympic Dam is Australia’s largest underground mine, and contains some of the world’s largest deposits of copper and uranium. In 2008, the company completed a prefeasibility study into expanding Olympic Dam into an open cut operation; a $30 billion proposed project, which would have created the world’s largest open cut mine. By 2011 the necessary State and Federal Government approvals were in place; however, BHP announced in August 2012 it would defer the expansion until it could find a less capital-intensive alternative to the open cut plan. In 2014, plans to expand the mine came back to the fore after BHP announced it was conducting a series of heap…

By Courtney Pearson 16 July, 2015 HELD in Australia’s unofficial gold capital and renowned mining hub Kalgoorlie, Diggers & Dealers has grown from a humble 70 delegates to more than 1800 every year. The well-known mining forum began 23 years ago with a focus on gold, but has since expanded to include all kinds of mining. “It started as a show where the dealers were meeting some of the operators and one-day presentations, and it’s escalated slowly and become bigger and bigger,” Diggers & Dealers event chairman Nick Giorgetta said. “It’s been a great success and it’s still regarded as one of the major forums in the world.” The long-running event attracts a diverse range of delegates, including…

By Jane Goldsmith 16 July, 2015 IN March 2014, Kalgoorlie Consolidated Gold Mines (KCGM) poured its 16 millionth ounce of gold from Fimiston open pit –widely known as the Super Pit. This milestone was achieved in time for the company’s anniversary celebrations to commemorate 25 years of activity at the historic site. Since incorporating, KCGM has produced about 800,000oz per annum of gold from an 8.8 million ounces gold reserve, yielding 2g of gold per tonne on average. The Newmont-Barrick joint venture produces about 8 per cent of Australia’s total gold output, and for much of Australia’s contemporary mining history, was the country’s biggest gold producer. KCGM relinquished its long-held title to Newmont’s Boddington mine in the final quarter of…

23 June, 2015 SINCE listing on the ASX three years ago, Cassini Resources has been on a mission to fast track its Nebo-Babel development in the relatively under-explored West Musgrave area of WA. Managing director Richard Bevan spoke to Rachel Dally-Watkins about the company’s flagship project and its success to date. Q. What is your educational background and how did you get started in the mining industry? A. My background is not that conventional. I actually started in the healthcare profession, so my original educational background is a Bachelor of Science in Physiotherapy. I was part of a healthcare business that was listed on the stock exchange, and since that time I’ve done some management studies and also a range…

By Rachel Dally-Watkins 22 June, 2015 WITH the commencement of mining operations in late 2014, Australian Bauxite has ushered in the first new Australian bauxite mine for more than 35 years. The Bald Hill mine is also Tasmania’s first ever bauxite mine, and the first in a pipeline of projects to ship gibbsite trihydrate bauxite with low silica contamination that can be processed into alumina at low temperature to customers in China and India. Australian Bauxite chose its projects based on three contributing factors, according to managing director Ian Levy. The result is tenements that all contain good quality bauxite, are in close proximity to infrastructure connected to export ports, and free from socio-environmental constraints. Australian Bauxite’s portfolio of tenements…

By Reuben Adams Friday, 19 June 2015 NINE WA resources industry workers took their own lives during a 12 month period between 2013 and 2014 – the catalyst for a parliamentary inquiry into fly in, fly out mental health launched by the state’s Education and Health Standing Committee in August last year. The Queensland government has also started a similar investigation. The WA inquiry, due to report on 18 June, will scrutinise the contributing factors that may lead to mental illness and suicide amongst FIFO workers. It covers the current legislation, regulations, policies and practices for workplace mental health in WA; current initiatives by government, industry and community; and recommended improvements. In Queensland, the parliamentary Infrastructure, Planning and Natural Resources Committee…

By Rachel Dally-Watkins Friday, June 19 2015 LAST year, Rio Tinto sold a rare 1.21 carat Fancy Red diamond from its Argyle mine in WA’s remote East Kimberley for a record price. Although the company wouldn’t disclose just how much the stone sold for, it did state that the collection of 54 pink and red diamonds achieved the highest price per carat since the yearly tender process began 30 years ago. In that time, Argyle Diamonds has earned a strong reputation as the world’s only reliable source of pink diamonds – and while the pink and even rarer red diamonds make up only a small percentage of the mine’s production, Argyle has become synonymous with rare and illustrious gems –…

Jane Goldsmith Friday, June 19 2015 THE final quarter of the 2015 financial year has been one of Evolution Mining’s biggest to date, with the mid-tier gold producer landing three significant deals – including a couple which earned it international prominence – in just 35 days. In late April, the company announced its first deal: a binding $400 million agreement with Egyptian billionaire Naguib Sawiris and his company La Mancha Group International to acquire La Mancha’s Australian-based Mungari operations. Ten days later, it confirmed a smaller but highly strategic exploration joint venture with Goldfields explorer Phoenix Gold to develop five Kalgoorlie-based tenements. On 25 May, the company then told shareholders it had consolidated a US$550 million agreement with Barrick Gold Australia Pacific…

By Rachel Dally-Watkins 21 May, 2015 THE resources industry is a mainstay of the Queensland economy, contributing $77.6 billion during 2013-2014 and accounting for one in five jobs in the state. The Queensland Resources Council (QRC), which represents explorers, miners, contractors, mineral processors, oil and gas producers and electricity generators with interests in the state, estimated that the resources industry supported 17,000 businesses during 2013-2014 with direct spending of $37.5 billion. It also contributed $2.5 billion in royalties, and employed 442,000 full time employees (directly and indirectly). “Queensland is the leading exporter of coking coal in the world; currently, both coking coal and thermal coal combined accounts for about 70 per cent of the value of resource production in Queensland,”…