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Arrium pushed into administration

Arrium pushed into administration

Low iron ore prices and insurmountable debt has forced Arrium into administration. Image: Whyalla News. By Samantha James IN early April, when Arrium asked its lenders – Australia’s four banks, several global banks and US bondholders – for a US$927 million life line to save it from going under, it hardly expected them to reject the package presented by alternative asset manager GSO Capital Partners. The lenders did, however, and pushed the struggling company into administration owing its creditors more than $2.8 billion. Arrium’s 1.2 million tonnes per annum steel plant at Whyalla on South Australia’s Eyre Peninsula is bleeding cash in the face of a collapse in steel prices and cheaper Chinese imports. The company also owns smaller plants...

$1.4 billion QLD project fast-tracked

$1.4 billion QLD project fast-tracked

MMG’s $1.4 billion Dugald River zinc project has gained special status to help cut red tape and create hundreds of jobs in north Queensland.State Development Minister and Minister for Natural Resources and Mines Dr Anthony Lynham granted prescribed project status to Dugald River, 85km north east of Mt Isa.

Hybrid coal plant could halve emissions

Hybrid coal plant could halve emissions

A possible configuration for the combined system proposed by Massachusetts Institute of Technology researchers. By Samantha James RESEARCHERS at the Massachusetts Institute of Technology (MIT) have designed a hybrid system that could boost efficiency of coal-powered plants and simultaneously cut emissions in half. The proposed hybrid system – designed by MIT doctoral student Katherine Ong and Professor Ahmed Ghoniem – could generate as much as twice the fuel-to-electricity efficiency of conventional coal-fired plants. This would mean a 50 per cent reduction in carbon dioxide emissions for a given amount of power produced. The concept, as described in a paper published in the Journal of Power Sources, combines coal gasification and fuel cells into a single system. The hybrid fuel cell...

Peabody files for bankruptcy

Peabody files for bankruptcy

Peabody Energy, the world largest private sector coal company, stated that its Australian business would remain unaffected by bankruptcy proceedings. By Reuben Adams PEABODY Energy maintains that its Australian coal business will not be affected by a decision to file for bankruptcy in the US and all operations will continue as normal. Peabody, in a major step to “strengthen liquidity and reduce debt,” voluntarily filed petitions under Chapter 11 for the majority of its US entities in the United States Bankruptcy Court for the Eastern District of Missouri. The company hoped this process would help reduce its overall debt level, lower fixed charges, improve operating cash flow and “position the company for long-term success, while continuing to operate under the protection of...

Lithium speculation plays out in WA

Lithium speculation plays out in WA

Tesla has 325,000 pre-orders for its new Model 3 electric car. Source: Tesla Motors. By Cameron Drummond THE use of lithium in industrial batteries has seen the popularity of the rock-bonded soft metal skyrocket. These batteries out-perform their predecessor, the traditional nickel-metal hydride unit, for use in clean energy technologies such as electric cars and home energy storage. Lithium as an industrial commodity has gone from strength to strength on the back of these exciting technological shifts, most notably through tech-entrepreneur Elon Musk’s Tesla electric-powered cars and home battery storage units. The Tesla Motors (NASDAQ:TSLA) share price enjoyed a steep ascent from a February 2016 low of $185 to $326 on 11 April, when it announced it had received US$1000...

Oversubscribed placement signals “slight” easing of capital markets

Oversubscribed placement signals “slight” easing of capital markets

Exploration at Tyranna Resources’ Jumbuck gold project in South Australia is supported by an oversubscribed share placement. By Reuben Adams TYRANNA Resources will raise $800,000 before costs through a massively oversubscribed share placement as exploration at its Jumbuck gold project in South Australia continues to build momentum. These funds will be used for advancing exploration at four prospects within Jumbuck in the northern Gawler Craton – Campfire Bore, Golf Bore, Golf Bore North, and Mainwood – which are the focus of Tyranna’s current 6200m reverse circulation drilling program. This program encompasses wholly owned Tyranna tenements and tenements which form part of a 59:41 joint venture with Challenger Gold Operations (an equal ownership JV between WPG Resources and Pybar Mining Group), operator...

Debt-free Millennium looks to grow coffers

Debt-free Millennium looks to grow coffers

Millennium Minerals produced 23,166oz of gold from Nullagine for the March quarter and paid down the last of its debt. By Reuben Adams MILLENIUM Minerals is now debt free and looking to build “strong” cash reserves on the back of its 80,000 ounces per annum Nullagine gold project in WA. Millennium produced 23,166oz of gold and recorded $7.1 million free cash flow in the March quarter, putting it on track to reach its production guidance of between 80,000oz and 85,000oz of gold for the year. All-in sustaining costs of $1195/oz were at the lower end of full-year guidance of between $1180/oz and $1220/oz of gold. Millennium chief executive Glenn Dovaston said the solid March results confirmed the company’s strong...

Portia gold mine ahead of schedule

Portia gold mine ahead of schedule

Gold ore is being stockpiled at Havilah Resources’ Portia open pit gold mine in preparation for processing in April. By Samantha James HAVILAH Resources has started stockpiling gold ore at its Portia open pit in South Australia, three and a half months earlier than scheduled. The milestone was achieved in mid-March due to a mine plan redesign which now envisioned commissioning of the processing plant by the end of April.Mining operations began in late March 2015 and by mid-March 2016 Havilah’s contractor had mined to within 5m of the high grade ore horizon. Havilah managing director Dr Chris Giles said that mining the open pit had come with some challenges. “It is pleasing to note that in spite of the...

Another milestone for Citronen

Another milestone for Citronen

The Citronen project in northern Greenland represents one of the world’s largest undeveloped zinc-lead resources. By Reuben Adams PERTH-based developer Ironbark Zinc has received a draft Impact Benefit Agreement (IBA) from the Greenland Government for its globally significant Citronen zinc-lead project, the last document to be finalised before an exploitation licence can be awarded. The terms of the IBA typically focussed on formalising employment and training commitments as well as detailing how the Government, municipalities and Ironbark would work together to maximise the beneficial opportunities for all parties. “Ironbark is delighted to reach this next milestone in the licensing process,” the company said in a statement. “Ironbark has developed a solid relationship with relevant parties through the public...

FMG axes Downer

FMG axes Downer

By Cameron Drummond FORTESCUE Metals Group has swung the axe at its last Christmas Creek contractor Downer EDI as it moves toward a cost-saving owner-operator business model. FMG consolidated its mine contractors from two to one in February 2015, dropping MacMahon Holdings to give Downer the remaining work at the time. Downer had serviced the Christmas Creek iron ore mine since 2010. Fortescue chief executive Nev Power said production from Christmas Creek was not expected to be affected during the transition as the company looked to further improve efficiency and productivity at its operations. "Adoption of an owner-operator model will further reduce Fortescue's costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations," Mr Power...

Protestors undeterred by harsher laws

Protestors undeterred by harsher laws

By Samantha James TWO anti-mining activists have chained themselves to a conveyor belt at Whitehaven Coal’s Narrabri mine in NSW, a week after a woman stopped the movement of coal trains from in and out of the company’s nearby Maules Creek mine by locking herself onto the tracks. On 1 April a Whitehaven spokesperson confirmed that protestors had attached themselves to gantry cranes near the coal preparation area at Narrabri, adding that police had dealt with the situation. “This event will have no effect on our operations,” the spokesperson said. The protests come just weeks after the NSW Government announced a bill which called for new search and seizure powers for police and increased fines of $5500 for aggravated unlawful...