Latest News

By Rachel Dally-Watkins 29 April, 2015 ASX-listed Perseus Mining has decided to proceed with development of the Sissingué gold mine (SGM) in Ivory Coast, following a positive revised feasibility study. The study showed the project was technically feasible and economically robust, with measured and indicated resources of 880,000oz of gold and proved and probable reserves of 429,000oz of gold. The mine would produce about 385,000oz of gold across a 5.25 year life, at an average of 75,000oz of gold per year, at an all-in sustaining cost of US$632 per ounce. Perseus’ study showed start up capital costs would total US$106 million (including contingency), with funding to be sourced from existing cash and a “modest” amount of third party debt. “Our…

By Rachel Dally-Watkins 28 April, 2015 IN response to the significant fall in iron ore prices, Centaurus Metals has announced it is unable to pursue standalone development of its Candonga project in southeast Brazil, and would instead pursue opportunities to sell or seek a joint venture partner. Centaurus reviewed the results of its 2014 feasibility study for the direct shipping ore project, confirming the technical and financial viability of the 300,000 tonne per annum project even with the significantly lower current iron ore prices. The review resulted in a 47 per cent reduction in direct pre-capital cost to $1.9 million and a reduction of total CAPEX to $2.7 million, and Centaurus stated it was confident the project was capable of…

By Jane Goldsmith April 22, 2015 WEAK commodity prices and the shift to production will spell pain for WA’s resources sector this year, a new report has found. Deloitte Access Economics’ WA Business Outlook report, released in March, said that despite encouraging current growth figures, the state would struggle as the minerals sector transitioned from the construction phase to production. Medium term economic growth would slow 2.6 per cent in 2014-2015, and private construction would decline 18.1 per cent to $39.2 billion. Construction would drop further to $31.7 billion (19.2 per cent) the following year. ”WA’s great resources-fuelled story is well documented,” Deloitte practice leader Matt Judkins said. “But the transition from resources investment and construction to exports is going…

By Jane Goldsmith April 21, 2015 ASX-listed PanAust has shunned a $1.1 billion takeover bid from China’s Guangdong Rising Assets Management (GRAM), dubbing the price “inadequate”. The Laos-based copper and gold producer advised shareholders to “take no action” in response GRAM’s unsolicited $1.71 per share offer, proposed on 30 March. The price was a premium to the $1.22 figure PanAust shares traded at before the bid, but well below a previous $2.30 proposal from GRAM, made in 2014. In mid April, PanAust managing director Fred Hess formally advised against shareholder acceptance, stating the company’s share price averaged above the GRAM offer price, indicating the company had been undervalued. “Whilst investor sentiment towards the resources sector remains variable and driven by…

By Rachel Dally-Watkins 20 April, 2015 DESPITE an almost double year-on-year increase from 2013, gold and base metal asset acquisitions in 2014 were the third lowest in a decade. According to the SNL Metals & Mining report Base Metals and Gold Acquisitions Activity, 2005-2014 there was a “welcome improvement” in mining asset transactions, but noted that the caution shown by mining companies in 2014 was surpassed only by results from 2013 and 2009. “Since 2012 have bought fewer assets that require large capital investment,” SNL stated. “Instead, companies have opted to maximise the value of assets they already own, and to enter joint ventures that reduce costs while at least maintaining production.” According to the report, there were…

By Reuben Adams 20 April A partnership between Komatsu and General Electric will use Internet of Things (IoT) technology to provide crucial big-data analysis services to mining customers – potentially saving each mine millions of dollars a year. The IoT refers to a growing global network of physical objects, including machines, embedded with electronics, software, sensors and connectivity which enable the exchange of data between manufacturers, operators, other machines and connected devices. Under the partnership, Komatsu would send operational data – collected from sensors attached to its mining dump trucks – to a GE data centre in the US, where it would be processed using GE’s big-data analysis capabilities. The resulting information could be used to recommend optimal truck routes…

By Jane Goldsmith April 15, 2015 KARARA Mining has made substantial workforce cuts less than a month after accepting WA’s first magnetite royalty rebate payment – a State Government initiative created to save jobs. “Due to current market conditions and the falling iron ore price, Karara Mining has undertaken a comprehensive business review,” the company stated. “Regrettably this has meant a reduction… of around 15 per cent across our total workforce. These reductions have affected a wide range of positions.” The changes, implemented in mid March, saw the loss of about 70 positions from the company’s Perth office, Karara site and Geraldton Port operations. “Our review process has examined every available option to reduce costs. These changes deliver cost reductions…

By Rachel Dally-Watkins 9 April, 2015 DESPITE ongoing cost reduction initiatives, BC Iron will receive assistance from the WA Government through the temporary iron ore royalty assistance program. BC Iron announced in early April that it would receive a deferral of 50 per cent of iron ore royalties paid for the December 2014 to September 2015 quarters, subject to its freight on board received price remaining below $90 per dry metric tonne during the period. The move would defer between $8 million and $12 million of royalties, which would be payable in seven equal quarterly installments between March 2016 and September 2017. “Smaller iron ore producers make up an important part of the industry that has, and will continue to,…