Category: Legacy

By Courtney Pearson August 13, 2015 DRY weather and poor copper prices have forced the Ok Tedi mine in Papua New Guinea to suspend production. Low water levels in the Fly River have hindered the transport of copper ore from the operation’s port in Kiunga to customers at the mouth of the river. The permanent workforce of expatriates and locals will also be reduced by 30 per cent and 15 per cent respectively to “better cope with a low commodity price environment”, Ok Tedi Mining Limited reported. A skeleton crew would remain at the site for maintenance and security. Operations at the mine will continue as long as critical supplies allow. “River traffic on the Fly River into and out…

By Courtney Pearson August 13, 2015 HUNDREDS of people gathered in Newcastle in late July to show support for mining in the Hunter Valley. The rally coincided with a visit by NSW Planning minister Rob Stokes, who was there to discuss proposed changes to the planning system. The NSW Planning and Environment Department is undergoing a process to change mining regulation is NSW, which could put jobs at risk. Proposed amendments to the Mining State Environmental Planning Policy would require decision-makers to consider the likely environmental, social and economic impacts of a mining development, which could affect the future of a number of developments. The new guidelines would include independent audit guidelines; web-based reporting guidelines; annual review guidelines; water regulation…

By Jane Goldsmith August 13, 2015 MINING bodies have blasted Labor’s “xenophobic” attitude, after it declared a $160 billion pending China-Australia free trade agreement (FTA) would threaten Australia’s “safeguards for jobs”. The implementation of the China-Australia Free Trade Agreement (ChAFTA), which would see tariffs removed on almost all Australian resources and energy products, is forecast to bring about $1.3 billion per annum into Australia’s exports industry. Within the coal sector, coking coal tariffs would be removed from day one, while thermal coal tariff would be phased out across two years. ChAFTA, which was signed in Canberra on 17 June 2015, is due to come into effect in 2016 after segregated domestic legal and parliamentary processes in both countries have been…

By Courtney Pearson August 13, 2015 IN a show of solidarity, Australian gold producers will launch a new Gold Industry Group (GIG) to represent the domestic industry. The group, introduced at the Diggers and Dealers Forum in Kalgoorlie, would champion gold issues, education and community initiatives and promote gold as an investment. The GIG was founded by companies including Gold Road Resources, Doray Minerals, Ramelius Resources and Norton Goldfields. Less than half of Australian mines are owned by overseas companies following a rise in mergers and acquisitions which saw the emergence of locally-based, mid-tier gold producers. Mining consultancy Surbiton Associates told the Diggers and Dealers forum that, while Australian gold output is still controlled by major international companies, the economic…

Thursday, July 16 2015 By Jane Goldsmith IRON ore analysts are forecasting at least another year of hardship and ‘bottoming’ prices for Australia’s iron ore miners, as finance, mines and petroleum minister Bill Marmion moves to reassure the industry of the government’s ongoing support. Speaking at the opening of the collaborative CSIRO-AusIMM conference Iron Ore 2015, Mr Marmion called for a calm, co-operative approach to price volatility, after a torrid week on international commodity markets. “We are behind you 110 per cent,” he said. “In the face of international volatility, now more than ever is the time for a calm and measured approach and working side-by-side for the long-term benefit of all.” The global iron ore market has suffered across…

By Jane Goldsmith Friday, 19 June 2015 THERE is a light at the end of the tunnel for Australia’s mining industry, with several major mining divisions expected to bounce back in the 2016 financial year, an IBISWorld report has revealed. Iron ore and oil and gas were expected to lead the industry turn-around following last years’ dramatic commodity price drops, with sector-wide revenue forecast to grow 8.6 per cent from $211.8 billion in FY2015 to $230.1 billion in FY2016. “IBISWorld expects world iron ore prices to strengthen in Australian dollar terms following consecutive years of large price drops,” the report stated. “This is expected to assist Australian iron ore miners as production volumes continue to rise.” Within the oil and…

By Rachel Dally-Watkins 15 May, 2015 PLANS to build a fourth coal terminal at the Port of Newcastle have progressed with the Department of Planning and Environment (DPE) recommending the project for approval and referring the application to the Planning Assessment Commission for a final decision. Port Waratah Coal Services, which owns and operates the port’s Kooragang and Carrington terminals, has been working with government, rail providers and coal producers to increase capacity at the port through the Terminal 4 project. The original master plan allowed for a capability of 120 million tonnes per annum throughput; however since the plan was lodged with the DPE decreases in coal demand saw the project revised down to 70mtpa throughput. “We have been…

By Rachel Dally-Watkins 14 May, 2015 A new 150 megawatt combined cycle gas power station in South Hedland, WA, will supply long-term electricity to meet local demand through the state-owned Horizon Power network, including Fortescue Metals Group’s operations within Port Hedland. Station owner, operator and builder TransAlta began construction on the project in March and expected the station to be completed by mid-2016. Power and automation technology group ABB was awarded a multimillion-dollar contract to provide a substation upgrade solution for connecting the transmission grid to the new South Hedland Power Station. According to ABB Australia substation business unit manager Markus John, the company’s engineered solution for the substation will provide reliable bulk power capacity and facilitate access to electricity for…

By Rachel Dally-Watkins 12 May, 2015 AS the WA and Queensland governments prepare the findings of two separate reviews on fly in, fly out workers amid a resources downturn, support network FIFO Families has warned the industry not to be distracted from the key issues. In June, the WA Government will outline the findings of its inquiry into the link between FIFO work arrangements and suicide; while the Queensland Government is reviewing two 100 per cent FIFO operations to determine the allowable percentage of FIFO workers on mining sites in the state. The use of 100 per cent FIFO workforces in Queensland has been a controversial issue for some time, with many arguing the practice takes opportunities away from locals.…

By Rachel Dally-Watkins 30 April, 2015 IN its latest cost-saving move, Fortescue Metals Group has sacked around 200 people from its Pilbara mine sites. According to reports, about 100 workers were flown home from Christmas Creek on Tuesday and on Wednesday, 100 workers at Cloudbreak – including truck drivers who had just flown to site – were told to return home immediately. Workers told media they were not given any warning before flying to site, claiming the order to return home came as a surprise. Reports stated workers on site were given plastic bags to pack their belongings into, while others were called on their way to the Perth airport and told not to come to site, leaving them without…

By Rachel Dally-Watkins 21 April, 2015 EVOLUTION Mining is set to become Australia’s third biggest gold producer with the $300 million acquisition of La Mancha Group International’s Australian assets. On 20 April Evolution announced it had entered a binding agreement to acquire the high-grade Frog’s Leg underground gold mine, the adjacent White Foil open-pit gold mine and the 1.5 million tonne per annum carbon in leach processing plant, all close to Kalgoorlie in WA. The acquisitions boast combined production of between 130,000oz and 160,000oz of gold per annum, at an all-in sustaining cost of between $950 and $1000 per ounce. This would take Evolution’s total annual production to between 530,000oz and 600,000oz of gold at an all-in sustaining cost of…