Category: Headline

BHP Billiton has placed its WA-based Nickel West assets on the market as it ramps up plans to simplify its commodity portfolio. The company recently named nickel as one of several non-core assets to be primed for divestment, with its refined commodities portfolio to only feature iron ore, copper, coal and petroleum, in a ‘four pillar’ plan. The divested assets, including aluminium, manganese and zinc, would be spun off into a new entity and handed back to shareholders. In mid May, Nickel West president Paul Harvey told the company’s 1800 workers that BHP’s nickel assets would likely be sold off, either in part or in full. “As part of this process, we will shortly be inviting third parties to visit…

INDIAN conglomerate Adani is a step closer to opening Australia’s biggest coal mine, after the Queensland Government granted approval for the $16.5 billion Carmichael mine. Federal approval is still required for the proposed 10 billion tonne project, 160km northwest of Clermont in Queensland’s northern Galilee Basin. The project includes the construction of six open cut and five underground mines; a 189km rail line; on and offsite processing facilities and water supply infrastructure; and a workers’ accommodation village and airport. The mine is expected to produce 60 million tonnes per annum of thermal coal during a 90-year operating life, with the first coal shipment forecast for 2016. The project has the potential to create up to 2500 construction and 3900 operational…

A potential strike by tugboat workers at Port Hedland port could cost Australia up to $100 million per day in iron ore exports, warned BHP Billiton. In a ballot conducted by the Maritime Workers Union (MWU), 100 per cent of workers voted in favour of work boycotts for 24 hours, and 98 per cent voted to strike across 48-hour and seven-day periods at the world’s largest bulk export port. The industrial action – reportedly stemming from unsatisfactory payment and annual leave entitlements – can be lawfully undertaken within 30 days of the ballot, according Fair Work Australia guidelines. The workers would also have to give their employer, tugboat operator Teekay Shipping, three days notice before any stop-work action. MWU said…

THE latest merger attempt between the world’s two largest gold producers has been terminated following ongoing asset disputes. Canada’s Barrick Gold confirmed it had been in talks with US rival Newmont Mining to become one global mining force, stating the companies had negotiated a term sheet for a proposed merger, which was agreed upon and signed by both parties on 8 April. However, talks were abandoned in late April following a deadlock on the companies’ Pacific-based assets. “Although Barrick believes the interests of shareholders are best served through the completion of this business combination, Newmont’s board has determined that the interests of Newmont’s shareholders are best served by remaining independent,” Barrick stated. “Since then, Newmont has sought to renege on…

AUSTRALIA’S sluggish resources sector is one of the rare winners from a largely austere 2014 to 2015 Federal Budget, as the Abbott Government maps a course toward achieving a budget surplus by the end of the decade. A reiterated pledge to remove the carbon and mineral resources rent taxes was accompanied by a 1.5 per cent company tax cut, generous exploration incentives, and cuts to existing red and green tape. The diesel fuel tax rebate scheme would also remain. Association of Mining and Exploration Companies chief executive Simon Bennison called the Budget “sensible”, and said restoring Australia’s reputation for investment in mining and exploration would be a crucial outcome. The Exploration Development Incentive (EDI) – introduced from 1 July –…

TWO local Alaskan charities will be gifted Rio Tinto’s 19.1 per cent shareholding in Northern Dynasty Minerals, owner of the ambitious Pebble mine project. Rio Tinto’s divestment followed a late 2013 strategic review that concluded the polarising Pebble Project did not fit with its strategy. The Northern Dynasty shares will be divided equally between the Alaska Community Foundation – to fund educational and vocational training – and the Bristol Bay Native Corporation Education Foundation, which supports educational and cultural programs in the region. Rio Tinto Copper chief executive Jean-Sebastien Jacques said Rio Tinto had long and historic ties to Alaska and would “continue to see Alaska as an attractive location for potential future investment”. “By giving our shares to two…

PERTH-based explorer Peak Resources has delivered encouraging pre-feasibility results for its Tanzanian flagship project, declaring it “one of the world’s highest grade and largest rare earth deposits”. Ngualla Carbonatite, in southwestern Tanzania, was found by Peak’s independently contracted mining consultancy Orelogy Group to contain a maiden mineral resource of 170 million tonnes grading 2.24 per cent rare earth oxide (REO), and a maiden ore reserve of 20.7mt grading 4.54 per cent REO (total REO plus yttrium). The study established an “economically robust project base case” at 10,000 tonnes per annum of high purity REO. The average operating cash flow was estimated at $116 million per annum post tax and royalties ($174 million pre-tax and royalties) across a 58-year mine life.…

ONSHORE resources sector operators are lagging behind their offshore counterparts in establishing a minimum industry-wide safety standard for contractors, according to Yara Pilbara chief executive Mark Loquan. Addressing CMEWA Health and Safety conference delegates, Mr Loquan called for a united approach to improving onshore contractor safety in WA. “Currently it’s somewhat fragmented, with individual companies having their own systems and requirements but the industry has a highly mobile workforce,” he said. Mr Loquan said he supported the introduction of a co-ordinated contractor safety system, similar to that implemented offshore by the Australian Petroleum Production and Exploration Association (APPEA), or by Trinidad and Tobago’s petrochemical industry. A passport system was collaboratively developed in Trinidad and Tobago b several onshore processing companies,…

NEWLY listed explorer Kin Mining will acquire the 745,000oz Leonora gold project from failed gold miner Navigator Resources for $2.7 million. Kin managing director Trevor Dixon said the acquisition would complement the company’s six mineral exploration project areas in the Leonora district of WA, which are close to the gold project. “ potential for further discoveries in the region through current and future exploration activities could create a significant mining operation for the future,” he said. The Leonora gold project, which includes the Mertondale, Cardinia, Raeside and Gambier Lass project areas, is in the northeastern Goldfields, about 35km northeast of Leonora and 700km northeast of Perth. “Kin intends to immediately assess the project areas and proceed to improve the status…

PRIME Minister Tony Abbott has labelled the government’s North Asia trade mission a success after establishing lucrative free trade agreements with Korea and Japan, and making progress towards a deal with China. During his visit, Mr Abbott secured the historic and long-contested Japan-Australia Economic Partnership Agreement, which was first tabled in 2007 and will reportedly contribute billions to the Australian economy in the next 20 years. The Korea-Australia Free Trade Agreement (KAFTA) was formally signed in Seoul just days later. While various sectors have criticised specific details of the agreement, the government promised substantial economic benefits, including wider access to Japanese markets than any other country. “The government’s swift conclusion of these historic agreements sends a strong signal that Australia…

NICKEL junior Cassini Resources is undergoing a $10 million share placement in the wake of its acquisition of BHP Billiton’s West Musgrave nickel project. The acquisition deal – which included a $250,000 cash deposit, a 2 per cent smelter royalty, and a further $10 million to be paid within 12 months after production starts – was signed by Perth-based Cassini and the global giant in early April. The 1000 square kilometre West Musgrave project, on the border of WA, the Northern Territory and South Australia, contains the highly mineralised nickel-copper Nebo and Babel sister deposits (Nebo-Babel) and the Succoth copper exploration prospect, as well as several other highly prospective tenements. Nebo-Babel was discovered in 2000, when a Western Mining drill…