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Atlas suspends shares to assess future

Atlas suspends shares to assess future

By Courtney Pearson 7 April, 2015 THE iron ore price crash may take a high profile victim, with Atlas Iron suspending its shares from the ASX to review its future. The price fell to US$47.50 during the Easter weekend - well below the company’s all-in cash cost guidance of between $60 and $63/WMT predicted for the second half of FY15 - prompting a “comprehensive review”, the company announced. “The voluntary suspension is requested pending the outcome of an extensive review of the company’s operations, financial outlook, asset sale opportunities and capital structure in the...

Everyone loses in race to the bottom: Forrest

Everyone loses in race to the bottom: Forrest

By Rachel Dally-Watkins 2 April, 2015 THE price of iron ore has fallen below US$50 per tonne for the first time in a decade, prompting fears that many juniors operating on thin margins will be forced out of the market. On 2 April, the price of iron ore for immediate delivery to the Chinese port of Tianjin dropped to $US49; a stark contrast to record US$185/t asking price during 2011. The price plunge is taking its toll on junior and mid-tier iron ore miners, with economists forecasting prices will continue to fall before levelling out. ANZ predicted a low of US$47/t, while Deutsche Bank stated prices could get as low as US$40/t before improving. Commentators have attributed the falling price...

The good, bad and ugly of Australian gold

The good, bad and ugly of Australian gold

By Rachel Dally-Watkins 2 April, 2015 WHILE the gold mining industry experienced a tumultuous past year, Doray Minerals managing director Allan Kelly said that, for his company, not a lot had changed thanks to a three pronged approach to weathering the uncertain market. Speaking at a WA Mining Club lunch in late March, Mr Kelly said his company’s focus on sustainable gold production, company management and exploration success had secured a “solid financial performance” for the first half of financial year 2014-2015. Capital expenditure to set the company up for the second half of 2015 and lower underground grades at Andy Well meant that the company...

‘Catastrophic’ impact as Barrick sells assets

‘Catastrophic’ impact as Barrick sells assets

By Jane Goldsmith BARRICK Gold has been hit by allegations of “irreparable” social, economic and environmental change as it flags intentions to offload a majority stake in the iconic Porgera mine, north-western Papua New Guinea (PNG). Porgera landowners representative the Justice Foundation for Porgera (JFP) is seeking billions in compensation from Barrick Gold and its subsidiary Barrick Niugini, alleging that the venture breached agreements relating to environmental standards, the relocation of displaced landowners, and the number of fly in, fly out workers in the area. In late February, Barrick and Barrick Niugini released a statement of intention to sell its PNG interests, which could offload any pending legal claims from landowners to potential buyers. Mineral Resources Enga holds a 5...

Nuclear Royal Commission officially starts

Nuclear Royal Commission officially starts

By Jane Goldsmith SOUTH Australia has formally launched its Royal Commission into Australian nuclear energy, with energy production, uranium and enrichment and waste storage on the agenda. The Nuclear Fuel Cycle Royal Commission – the first of its kind in Australia – will review domestic nuclear mineral exploration and extraction, radioactive substance manufacturing, nuclear electricity generation, and radioactive and nuclear waste disposal, but has ruled out uranium mining and military purposes. South Australian Premier Jay Weatherill said the community would be kept up-to-date on the Royal Commissioner Kevin Scarce’s findings, to encourage public discussion. The Commission received more than 1000 submissions from the community and industry during the final four weeks of consultation. “Whilst many people have strong views at...

Expansion back on track

Expansion back on track

By Mark Scott THE controversial expansion of the Abbot Point coal terminal will go ahead under a new agreement between the recently elected Queensland Government and major proponents Adani and GVK. Under previous state government plans, dredge spoil from the expansion project was to be dumped either at sea, near the Great Barrier Reef World Heritage Area, or in the environmentally sensitive Caley Valley wetlands. A third option, announced last month by newly elected Premier Annastacia Palaszczuk, would see spoil dumped on unallocated industrial land adjacent to the existing coal terminal, at a site...

WA loses mining investment crown

WA loses mining investment crown

By Mark Scott WA has lost its title as the world’s most attractive place for mining companies to invest, with the mining sector under pressure from slow bureaucracy, government policies and a drop in commodity prices. Canada-based The Fraser Institute’s annual Survey of Mining Companies, released in February, named Finland as the world’s most attractive investment destination in 2014, with WA slipping to fifth place after claiming the top spot in 2013. The report’s investment attractiveness index combines a mineral potential index, which rates regions based on their geological attractiveness, and a policy perception index, which measures the impact of government policy on attitudes to exploration investment. On policy perception, WA dropped from sixth to 10th place, while on mineral...

Royalty rates stable under new reign

Royalty rates stable under new reign

By Mark Scott & Jane Goldsmith March 2015 AN “iron clad” guarantee from Queensland’s newly elected government not to touch mining royalty rates has prompted calls in WA for Premier Colin Barnett to follow suit. The Annastacia Palaszczuk-led Labor Party picked up 33 seats in the January election to form minority government after pledging to leave royalties on coal, minerals, petroleum and gas unchanged. The Chamber of Minerals and Energy of WA (CME) applauded a commitment by the two major Queensland parties to not increase royalties and has pushed for similar action in WA, where the...

Solar future for copper mine

Solar future for copper mine

By Mark Scott March 2015 WA’S biggest copper mine will soon be powered by the country’s largest integrated off-grid solar array under an agreement signed by Sandfire Resources and juwi Renewable Energy last month. Sandfire’s DeGrussa copper mine, near Wiluna in the northern Goldfields, will become home to a 10.6 megawatt solar power station that will be fully integrated with its existing 20MW diesel-fired power station. The $40 million project will involve 34,080 solar photovoltaic panels that track the sun and a 6MW battery, constructed on 20 hectares of land near the DeGrussa underground mine. Funding will be coordinated by juwi, which...

Sirius breaks ground at Nova

Sirius breaks ground at Nova

By Jane Goldsmith March 2015 ACTIVITY at Sirius Resources’ world-class Nova nickel project has begun, with formal mining operations ramping up alongside major construction works. Sirius managing director Mark Bennett said it was “very satisfying” to break ground at the Nova project, just two-and-a-half years after the deposit’s discovery. “We have started the project on time, on plan and significantly within original CAPEX budget estimates,” he said. According to the conditions of a $129 million, three-year contract, Barminconder will complete initial surface mining in three months, and then segue immediately into underground operations. Nova’s existing exploration camp is...

Re-strategising integral to WA economy

Re-strategising integral to WA economy

By Jane Goldsmith March 2015 WA resources companies need to reassess their business strategies and operations in the wake of China’s slowdown, according to an international advisory and procurement firm. The Beijing Axis founder and managing director Kobus van der Wath said WA industry had already felt the impact of China’s slowdown with plunging commodity prices and mass layoffs, but new opportunities could be leveraged in a post-mining boom era. “The beginning of 2015 has already seen significant bilateral developments in the agriculture, air services and property sectors,” Mr van der Wath said. “With the milestone achievement of the Australia-China free trade agreement last year,...