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The Hengjaya nickel laterite mine in Indonesia, which is in close proximity to the Indonesia Morowali Industrial Park operations and refining centre. BY REUBEN ADAMS INDONESIA-focussed Nickel Mines is officially the second biggest metals and mining initial public offering of 2018 after making its ASX debut on 20 August. The Australian company, which holds an 80 per cent interest in the Hengjaya nickel laterite mine in Indonesia, raised $200 million selling shares at 35 cents each. Nickel Mines will use the cash to diversify into downstream nickel pig iron (NPI) processing and production, acquiring a further 35 per cent interest in the Rotary Kiln Electric Furnace (RKEF) project to increase its interest to 60 per cent. In September last year,…

BY REUBEN ADAMS CORE Exploration believes fresh high-grade drill results have demonstrated “significant potential” to grow resources at the near-term Finniss lithium project in the Northern Territory. The emerging lithium developer has embarked on aggressive drilling this year to grow the Finniss resource base ahead of a late-2018 Definitive Feasibility Study (DFS) and early 2019 Final Investment Decision. The Pre-Feasibility Study (PFS) confirmed Stage 1 of the Finniss Project, mining the high grade Grants deposit, would generate strong free cash flow; but with a mine life of just 26 months further resources were required to underpin a potential long-life operation. Latest results from the Carlton Prospect, 1km from Grants, included 16 metres at 1.79 per cent lithium oxide (Li2O) from…

BY ELIZABETH FABRI GLOBAL lithium supply is set to triple over the next four years with the lions share mined in Australia, according to GlobalData research. The data and analytics firm said 86,000 tonnes of new lithium capacity will come online until 2022, with Australia accounting for 37 per cent of supply followed by Argentina (29 per cent), Canada (16 per cent), Chile (9 per cent), the US (6 per cent), and Mexico (4 per cent). “After moderate growth in lithium supply between 2010 and 2017 of 6.4 per cent per annum, global output is expected to triple between 2018 and 2022 to reach 154,000t (metal content), as 86,000t of new metal capacity comes on stream to meet the increasing…

BY ELIZABETH FABRI MOMENTUM is building in Australia’s metallurgical coal sector. Prices are up and producers are taking note, with plans to fast-track a number of new projects – particularly in QLD. But will supply disruptions in the State hurt long-term exports? After a turbulent couple of years, metallurgical (coking) coal is back in the black. This year prices floated around the $US200 per tonne mark; positive times when compared to 2015 lows of $US90/t. The rally is largely attributed to strong demand in China, India and Japan for steel, of which coking coal is a key, non-substitutable ingredient. India alone, relies on about 50 million tonnes of coking coal imports per annum, predominately from Australia, and analysts predict this…

BY REUBEN ADAMS Koppar Resources (KRX) NORWAY-focussed junior explorer Koppar Resources (KRX) has performed strongly since its IPO in late May, when it raised $4.5 million at $0.20 per share. KRX has a conditional right to acquire a number of high value copper-zinc projects in the Trøndelag region of Norway – Løkken, Tverrfjellet, Grimsdal, Illingdal, and Storwartz – through the acquisition of company Koppar Resources Europe. The KRX ground includes a number of historical mines, some going back to the 1600s, with a combined recorded historical production of 85 million tonnes grading between 1 per cent and 2 per cent copper. The company is compiling historical data to generate targets for a drilling campaign in Q3 2018.   Bounty Mining…

MORE than 2000 geoscientists will meet this October for the inaugural Australian Geoscience Council Convention in Adelaide. Elizabeth Fabri spoke with Australian Geoscience Council (AGC) president Dr Bill Shaw about the upcoming event, and how the industry can work together to “smooth out” the booms and busts in Australian mining. Q. AGC will soon launch its first Australian Geoscience Council Convention. What prompted you to start the event?   The Australian Geoscience Council organised the very successful 34th International Geological Congress which was held in Brisbane in 2012. This event heralded the value and importance of getting as many geoscientists together as possible, to share our technical knowledge and work experiences. By having a large critical mass all engaging at…

Lithium mica concentrates will be tested in a SiLeach pilot plant. Image: Lithium Australia. BY ELIZABETH FABRI LITHIUM Australia will commence testing lithium mica to determine if the material has potential to become base feedstock for its proposed large-scale pilot plant (LSPP) in WA. Lithium mica, long considered a waste material by the mining industry, will be sourced from one of two sites in the Eastern Goldfields, and tested at ANSTO Minerals’ (a division of the Australian Nuclear Science and Technology Organisation) Lucas Heights laboratories in Sydney. Lithium Australia managing director Adrian Griffin said WA’s lithium fields hosted abundant pegmatites, many of which contained lithium micas. He said the company had already undertaken substantial bench-scale test work on lithium micas…

BY ELIZABETH FABRI DUNDAS Mining will reopen its mothballed Avebury nickel mine with production to resume in January 2019. The mine, purchased last year from MMG for $25 million, has been on care and maintenance since 2009 amid a downturn in the nickel market. Resurgent prices over the last 12 months encouraged Dundas to bring the mine back to life. “When we signed up to buy this place it (the nickel price) was $US7000 a tonne. It’s now $US15,000 a tonne,” Dundas Mining chief executive Geoff Summers told The Advocate. Tasmanian Premier Will Hodgman said a recruitment process had begun, with more than 200 jobs to be made available across mining, processing, and administration. He said the State Government was also…

BY ELIZABETH FABRI ASK any analyst for their best performing commodities of the year, and nickel will be on the list. The base metal is enjoying a stellar year – its price has increased 75 per cent in the last 12 months – as it reinvents itself as a commodity of the future. A new cohort of nickel juniors are advancing exploration in Australia to capitalise on rising prices. At the end of June, nickel was hovering around the $US15,000 per tonne mark; a sizable increase from the $US8931 it was fetching a year prior. And if forecasts are anything to go by, demand for the metal is expected to increase by a further 50 per cent to 3 million…