Category: Developments

MINERAL sands exploration company Sheffield Resources has restructured the cost of its flagship Thunderbird project in WA following a review of company strategy. Sheffield Resources said the scaled-back project would generate annual cost savings of $7.5m, representing 60pc of the project’s current cost base, for the tier-one zircon-rich mineral sands deposit. Company managing director Bruce McFadzean said the company had achieved important milestones in recent years to make Thunderbird construction ready. “The Thunderbird mineral sands project is a world-class asset that is fully permitted, construction ready and perfectly positioned to meet the market need,” Mr McFadzean said. The company said that by changing the scale and product mix of its Thunderbird project, it can significantly reduce its capital cost and…

CLEAN-UP operations are underway in the Pilbara after the category 4 Cyclone Damien made its presence felt across the region on February 7. Ports servicing Roy Hill, Rio Tinto, and FMG Iron Ore operations at Dampier and Ashburton went into cyclone preparation mode and shut as the cyclone passed, with the port at Port Hedland remaining closed for 25 hours. Roy Hill and FMG mines received the least of the storm, with Rio Tinto’s port, rail and mine network situated in the direct path of the storm. A report from the company said that it is supporting recovery efforts alongside DFES. Further disruptions were hoped to be avoided as heavy rain continued to fall. The towns of Karratha and Dampier…

US coal company Peabody Energy is considering selling all or part of its interest in the North Goonyella coking coal mine in Queensland, Australia, after receiving substantial expressions of interest from potential buyers for the asset. Peabody Energy said that it had started a commercial process for North Goonyella mine, which shipped 1.8mt of coking coal through Dalrymple Bay coal terminal in 2018. “The process comes in response to substantial expressions of interest in this valuable asset from potential strategic partners and other producers,” the company stated. Commercial outcomes could include a strategic financial partner, joint venture structure, or complete sale of North Goonyella. The mine was temporarily closed after an underground fire in September 2018, and Peabody said it…

AUSTRALIAN rare earths company Lynas Corporation’s (ASX: LYC) new processing plant in Kalgoorlie, WA, has been granted Major Project Status by the Australian government. Major Project Status streamlines government approvals processes for mining projects, providing a single-entry point for their assessment by the Australian government, and formally recognises a project’s significance to the Australian economy. The company’s Kalgoorlie processing plant will carry out cracking and leaching of rare earth concentrate from Lynas’s Mt Weld mine in WA’s Goldfield’s region and will support the development of new infrastructure including chemicals production for the rare earths industry. At its peak construction phase the plant is expected to create 500 jobs, and increase Lynas’s Goldfields workforce to more than 200 people. Lynas CEO…

RESOLUTION Minerals has called a trading halt, pending the release of an announcement. The trading halt will remain in place until normal trading commences on Tuesday, February 20, or otherwise announced. The company is reportedly in a bid to raise $4.55m through a placement of 91m shares priced at 5¢ a share, representing a 23pc discount to Resolution’s 6.5¢ last close. The fundraising will go toward progressing the drilling program at Resolutions 64 North Project located in Alaska’s Tintina gold province. In December last year, Millrock Resources executed a definitive Option to Joint Venture agreement with Resolution concerning the 64North gold project, previously named the Goodpaster project. The legal due diligence period was successfully completed with Resolution providing a $744,500…

CONTINUED weak lithium prices have forced Wesfarmers (ASX: WES) and its Chilean partner SQM to delay the construction of the Mt Holland lithium project in the WA goldfields. The partners announced their decision to mothball the project in an ASX release after trading had closed on January 23, saying that the final investment decision was deferred to “enhance the long-term value of the project”. The project included the construction of the mine and co-located concentrator at Mt Holland, and a lithium hydroxide refinery in Kwinana. Wesfarmers said that while it would wait till 2021 to pull the trigger on a final investment decision, in the meantime it would conduct further work to cut capital and operating costs and explore opportunities…

IN a significant improvement to the intercept grades, Westgold (ASX:WGX) has received screen fire assays for its Great Fingall mine near Cue in WA, with exceptional figures returned. Westgold sees this drilling as proof that the stratigraphic controls to mineralisation remain in place. It believes that the significant high grades that were produced historically at this site have been returned at greater than twice the former depth and plunge continuity is established at the high-grade Great Fingall Reef. The results have Great Fingall Reef upgraded to 1.57m at 10.10g/t up from 7.95g/t from 1642.18m, 3.1m at 34.05g/t up from 20.17g/t from 1439.7m and 4.35m at 3.27g/t from 1,493.22m at Great Fingall Hangingwall Lodes. Abundant specks of visible gold have been…

FYI Resources’ kaolin project in WA has received formal approval for its Mining Proposal (MP) and Mine Closure Plan (MCP) from the WA Department of Mines. This represents a significant step toward the development of the FYI 100pc-owned ML70/1388 high purity alumina (HPA) project. FYI managing director Roland Hill said that now that this milestone has been reached, the company was waiting on only minor regulatory approvals. “FYI will continue progressing its HPA strategy in anticipation of arranging full project funding and a formal decision to mine from the FYI Board,” he said. The approval covers the planned mining, processing, site infrastructure, waste facilities, haul roads and other construction required. The granting of the MP and MCP follows approvals in…

THE opening of The Critical Minerals Facilitation Office, announced by Resources and Northern Australia Minister Matt Canavan last week, aims to untap Australia’s rich resource of critical mineral deposits. The new facility will be led by Jessica Robinson, a former senior official in Treasury and Prime Minister and Cabinet. The Office bases its strategy targets actions in three areas: to promote investment in Australia’s critical minerals sector and downstream processing; provide incentives for innovation to lower costs and increase competitiveness; and connect critical minerals projects with infrastructure development. This will be achieved by coordinating and connecting government, industry and the research sector. Ms Robinson said her mission is to work with the sector to develop a clear, shared vision for…

LYNAS Corporation (ASX: LYC) is facing a new wave of judicial proceedings in Malaysia over its subsidiary, Lynas Malaysia’s rare earths processing facility. In a statement released to the ASX after the market had closed on Friday, the company said that three long-term opponents of the plant launched the judicial review proceedings in the Malaysian High Court, and would contest the August 2019 decision to renew Lynas’ full operating licence at the processing plant near Kuantan, Pahang, on the country’s east coast. The company said that the grounds set out in the documents “relate to the processes followed by the Government of Malaysia”. The respondents included the Prime Minister of Malaysia, 27 ministers and cabinet members, the Government of Malaysia,…

POSITIVE steps towards progressing Kogi Iron’s Agbaja steel project in Nigeria have been announced, including a recent $3.2m fundraising toward the financial completion of the feasibility study. The Project, located at Agbaja in Central Nigeria, will potentially produce 1mt of cast steel feedstock annually. A fourth lease has been granted by the Mining Cadastre Office, FRN which will deliver a contiguous tenement package on the Agbaja Plateau of around 145sqkm. Kogi Iron Limited managing director David Turvey said the company had achieved another milestone as it moved forward to becoming an integrated steel producer in Nigeria. The new funding commitments include $860,000 in new equity from current shareholders, endorsing the project’s strong potential. Board members have continued to meet with…