Category: Legacy

THE world’s largest iron ore producer has blamed its Australian counterparts for the market’s oversupply issues after posting a surprise US$1.44 billion net loss in the last quarter. Despite producing a record 85.7 million tonnes Brazil-based Vale was slugged by a global drop in iron ore prices, which cost the company US$1.031 billion in the September quarter. An 11 per cent depreciation in the value of the Brazilian real also knocked almost US$3 billion from the company’s coffers. Despite its own production increases, Vale ferrous and strategy executive director José Carlos Martins said Australian producers were having the biggest impact on iron ore prices. “In the iron market we are experiencing a market of oversupply; demand did not increase as…

A PROPOSED BHP Billiton spinoff could be listed on the London Stock Exchange in a surprise back flip from the mining giant aimed at placating shareholders. The planned demerger would create a new entity – referred to as NewCo – incorporating BHP’s aluminium, coal, manganese, nickel and silver assets. Under the initial proposal, NewCo was to have its primary listing on the ASX and a second inward listing in Johannesburg. But in a move to appease shareholders, BHP chairman Jacques Nasser last month announced the company was looking at an additional London listing. “Since the announcement we have been able to engage extensively with investors and other stakeholders…we have been pleased by the support for the demerger and the level…

THE WA Supreme Court has blocked an attempt by Clive Palmer’s Mineralogy to terminate an agreement giving CITIC Limited mining rights at the $10 billion Sino Iron project. Last month Mineralogy served Chinese-owned CITIC a 21-day termination notice on its right to mine iron ore at the Pilbara-based Sino Iron magnetite project, which began exporting late last year after lengthy delays and cost blowouts. The partners have been locked in a fierce battle in the WA Supreme Court regarding royalty payments, which Mineralogy alleged had not been paid. Mineralogy director Clive Mensink, Mr Palmer’s nephew, said CITIC had failed to address a default notice issued more than two years ago, relating to billions of dollars in losses. “Not only has…

FORTESCUE Metals Group has lost a bid to block an iron ore junior’s access to its Pilbara railway in a WA Supreme Court decision handed down last month. In 2013 Brockman Mining submitted a proposal for access to the rail, owned by Fortescue subsidiary The Pilbara Infrastructure (TPI), under the state’s third-party access laws. While the rail was built under a state agreement that required TPI to promote third party access, Fortescue called Brockman’s proposal invalid and began proceedings against Brockman’s application in October last year. The Supreme Court last month dismissed Fortescue’s claim, allowing Brockman to pursue its access ambitions with the WA Economic Regulatory Authority and TPI. In a statement, Brockman said it would take the next necessary…

QUEENSLAND’S coal miners look set to shed more than 1000 jobs as tough market conditions continue to take their toll on Australia’s second biggest export. Last month BHP Billiton Mitsubishi Alliance (BMA) announced it was cutting about 700 jobs from its Bowen Basin metallurgical coal mines, blaming challenging market conditions. The price of Queensland metallurgical coal dropped below US$115 per tonne in September, a long way short of the US$300/t records reached in 2011. BMA asset president Lucas Dow said the joint venture had to act to guarantee the long-term viability of the business. “BMA will continue to work with employees and contractors throughout the process and ensure everyone is treated fairly and with respect,” he said. “We will also…

WA’s mineral and petroleum industries set a new income record in financial year 2014 in the face of soft global demand for commodities. According to statistics released by the Department of Mines and Petroleum (DMP) in mid September, WA’s resources sector raked $121.6 billion into the state and national economies in FY2014; a near 20 per cent increase on the previous financial year. DMP pointed to Australia’s weakening dollar, which averaged US$0.92 for the period, as the primary ground for the results, with a 10.5 per cent drop against the greenback working to offset falling commodity prices. “Traditionally perceived as a commodity currency, the Australian dollar decreased inline with falling commodity prices and therefore shielded producers to some extent from…

A second acquisition deal with Norilsk Nickel will see Poseidon Nickel acquire the Lake Johnston nickel project, which has been on care and maintenance since April 2013. In July, Poseidon entered an agreement to acquire the Black Swan project, including an open cut mine and nickel sulphide plant. The latest deal, the cost of which has not been disclosed, is for the Lake Johnston tenements, resources and infrastructure, 440km east of Perth and 117km west of Norseman. Together with its existing Windarra project, Poseidon now has near term production potential at three mineral provinces in WA. The new project comprises 11 mining leases, 10 exploration licences and one prospecting licence hosting the Emily Ann and Maggie Hays deposits. Maggie Hays…

WITH a mineral inventory increase of more than 100 per cent and the identification of three new drilling targets, Rox Resources has demonstrated the continued prospectivity of the Fisher East nickel sulphide belt. The company announced a maiden resource estimate for the Musket deposit, within its Mt Fisher project in the North Eastern Goldfields, of 2.1 million tonnes grading 1.8 per cent nickel for 37,500t of contained nickel. Using a 1 per cent cut-off grade, about 64 per cent of this resource is within the higher confidence indicated category. Together with the existing resources from the Camelwood deposit, the project’s resources now stand at 3.6mt grading 2 per cent nickel for 72,100t of contained nickel. About 52 per cent of…

DREDGING material from the Abbot Point coal port expansion in Queensland will be dumped on land rather than in the Great Barrier Reef Marine Park under a state government plan designed to ease environmental concerns. North Queensland Bulk Ports (NQBP) already has Federal Government approval to dump 3 million cubic metres of spoil from the controversial expansion project at sea, however the Queensland Government will push the company towards taking the new land dumping option. The Adani Group and GVK Hancock-led port expansion is a vital stage in development of coal in Queensland’s Galilee Basin. Queensland Premier Campbell Newman said the onshore dumping strategy, approved by State Cabinet earlier this month, was a win-win situation. “It will protect the unique…

THE much-maligned mining tax has finally been axed after the Coalition Government cut a deal with Clive Palmer to fulfil its remaining major election promise. Repeal of Labor’s Mineral Resources Rent Tax (MRRT) passed the Senate this month after it was knocked down in July over Palmer United Party (PUP) amendments to save associated spending measures. Under the deal with the PUP, the Government agreed to delay the abolition date on key measures in the legislation until after the next election. The Low Income Superannuation Contribution will be abolished from 1 July 2017, while the Income Support Bonus and Schoolkids Bonus will be axed from the end of 2016. The Schoolkids Bonus will be means-tested until its abolition. To cover…

FOLLOWING decades of experience in the design and manufacture of electric drive haulage solutions, Liebherr introduced its T 282 Series haul truck to serial production in 2000. Fourteen years on and with more than 350 units globally, the Liebherr T 282 Series haul truck represents the accumulation of more than six million operational hours of knowledge and ultra-class haulage experience. Through strategic investment in product evolution, Liebherr ensures the T 282 Series haul truck continues to provide business partners with the latest in technology. The highly efficient IGBT drive system and its class leading payload-to-weight ratio ensure maximum productivity and performance. In the next exciting evolution for the T 282 Series haul truck, Liebherr proudly launched the T 282 C…