Category: Legacy

By Samantha James RESEARCHERS in the UK have discovered a new way to find large copper deposits by identifying chemical markers in porphyry rock. A study co-authored by University of Exeter geologist Dr Ben Williamson detailed a new chemical exploration tool that could be used to find porphyry-type copper deposits. These low quality but high quantity deposits are the most common copper deposits in the world, delivering about three quarters of global copper. Dr Williamson said the new technique would be the least expensive method of retesting core samples for copper and reassessing explored land. “We’ve compared the composition of that mineral between magmatic rocks that do form these deposits and those that don’t, and we’ve found there’s a chemical…

By Samantha James DUAL-listed Thor Mining has entered into an option agreement to sell the advanced Spring Hill gold project in the Northern Territory for $3.5 million, just two months after it acquired the remaining 49 per cent interest. In October 2015, Thor acquired Western Desert Resources’ interest in Spring Hill for $310,000, before agreeing to sell the asset to private company PC Gold for $3.5 million in December. As part of the agreement, PC Gold would pay Thor royalties on any gold produced from Spring Hill. Thor has struggled to finance development of its flagship Molyhil tungsten and molybdenum project in the Northern Territory since the January 2015 completion of an updated feasibility study that estimated a $64 million…

By Samantha James WA’s Pilbara region has long been a major resources hub for the state; a jump in fly in, fly out (FIFO) residents from 40,000 in 2006 to more than 73,000 in 2011 made it WA’s largest FIFO region. Despite the current mining downturn that number has remained steady, with the Pilbara still containing more than half of the energy and minerals workforce in WA. However, Pilbara MP and former WA National Party leader Brendon Grylls has called for a change to FIFO policies, saying it no longer made economic sense for companies faced with decade-low prices to foot the bill for large FIFO workforces. Mr Grylls said although FIFO remained the only option for some remote sites,…

By Samantha James A new report claims that a 5 per cent drop in Chinese coal consumption year on year, slow electricity demand growth of 0.5 per cent and an increase in non-thermal electricity generation has resulted in the ‘snuffing out’ of the seaborne thermal coal market. The Institute for Energy Economics and Financial Analysis (IEEFA) report stated  Chinese coal imports in calendar 2015 had dropped by 30 per cent and predicted another 30 per cent decline in global traded thermal coal demand by 2021. “With the collapse in both Indian (down 34 per cent year on year) and Chinese (down 35 per cent year on year) coal imports in December 2015, the seaborne thermal coal industry is entirely beleaguered,”…

By Samantha James RESEARCH by the Australian Bureau of Statistics (ABS) claims that almost 80 per cent of miners are overweight or obese. The statistics, commissioned by Jenny Craig, ranked mining as the most overweight industry in the country at 78.2 per cent, with transport, postal and warehousing (74.8 per cent) and wholesale trading (69.7 per cent) coming a close second and third. An obese employee was terminated by BHP Coal at a site in Queensland in 2014 on the basis that his weight was a safety risk. This decision was upheld by the Queensland Industrial Relations Commission, which ruled that employers’ rights and obligations to ensure the safety of employees extend to the impact of overweight workers. Commercial law…

By Samantha James A new binding heads of agreement will see Stone Resources Australia and MHM Metals jointly develop Stone Resources’ Brightstar gold project near Laverton, WA. The Brightstar projects covers about 300 square kilometres and includes the previously mined Alpha gold deposit, as well as the Beta, Gamma, Ben Hur, King of Creation and Cork Tree Well gold prospects and the 350,000 tonne per annum Brightstar gold treatment plant, which is currently on care and maintenance. Stone Resources released an updated resource estimate for the project in June 2015 totalling 13.36 million tonnes grading 1.7 grams per tonne of gold to contain 739,000oz of gold. Under the agreement, MHM could earn up to 80 per cent in the Brightstar project,…

By Courtney Pearson TASMANIAN miner Grange Resources has warned it may begin making redundancies due to low iron ore prices. Grange employs between 550 and 600 workers at its Savage River magnetite mine and concentration plant 100km south west of Burnie. Despite record production of magnetite pellets during 2015, Grange stated it was looking to cut costs. “An optimisation strategy, which is expected to be completed early in 2016, is part of Grange’s overarching strategy to continue reducing costs, maximising margins and retaining free cash flow,” the company stated. “Due to the continued weakness in the iron ore price and subdued pellet demand combined with the optimisation strategy, redundancies may be made.” In its June 2015 half-year report the company…

By Samantha James EVOLUTION Mining has completed its takeover of Phoenix Gold after months of negotiations. The company made an initial bid for Phoenix in mid-August 2015 as a counter-offer to an unsolicited, conditional off-market offer made by Zijin Mining Group in late June. By this time Evolution had purchased 19.8 per cent of Phoenix’s shares, making it the company’s largest shareholder. Both Zijin and Evolution’s offers were rejected as inadequate, despite Evolution’s 20 per cent premium on Zijin’s offer price of $0.10 per Phoenix share. Negotiations with Evolution continued and in November Phoenix announced a recommended transaction “acknowledging the likelihood that Evolution imminently gain control of Phoenix”. The revised offer comprised cash and shares, with total consideration increased…

By Samantha James JAPAN state-owned miner JOGMEC will forfeit its 30 per cent interest in Vital Metal’s development-ready tungsten Watershed project in Queensland. JOGMEC failed to complete a transfer to an incoming Japanese partner by the agreed deadline of 31 December 2015, gifting Vital 100 per cent ownership of the development-ready tungsten project for no consideration. Vital said it was looking to recommence discussions with potential new development partners who had expressed interest but “may have been deterred” by the previous joint venture arrangements. “Watershed ticks virtually every box from the perspective of potential development partners looking to invest in a high-quality, long-life tungsten deposit,” Vital managing director Mark Strizek said. “There is no better time to developing a resource…

By Samantha James ABOUT 85,000 Anglo American employees around the world will lose their jobs across the next three years as part of a planned “radical” company restructure. Anglo American chief executive Mark Cutifani told investors on 9 December 2015 that the company would reduce its 55 assets by about 60 per cent, cutting the work force from 135,000 employees to less than 50,000. By the end of 2015 Anglo expected to cut 11,500 direct employees and contractors from its workforce across operations in Australia, Africa, Canada, South America and the UK. A further 8500 employees would be let go in 2016 and 7000 in 2017. The company’s negative cash flow assets would either be closed, placed on care and…

By Courtney Pearson AUSTRALIAN mining companies should focus on the ongoing productivity challenge; innovation, mergers and acquisitions; and safety issues in a commodity price downturn that has no clear cycle, according to Deloitte. The Tracking the trends 2016 report stated that miners would need to ask the tough questions, show initiative in innovation and take a new approach to traditional operating assumptions, in order to pioneer the future of mining. Furthermore, the report showed China’s influence on the global economy was likely to spur miners to form a greater understanding of the country’s market trends and develop plans relative to its offshore investment initiatives. “The operating environment remains volatile and complex and the imperative remains to innovate, adapt, manage costs…