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UP to $3.8 million has been secured by Fox Resources for exploration and development at its Queensland coal prospects. The money – raised through a share purchase arrangement with the Australian Special Opportunity Fund, LP and The Lind Partners – would also be used for additional working capital and corporate purposes. As part of the agreement, Fox would receive $350,000 upon execution in the form of a $300,000 convertible security, and $50,000 as repayment for fully paid ordinary shares. Lind would also invest up to $150,000 in monthly share subscriptions during the next two years. “The agreement with Lind will allow Fox to advance its exploration program with the hopes of unlocking significant value at its Bundaberg coking coal project,”…

THE Federal Court has dismissed a legal challenge by the Northern Inland Council for the Environment (NICE) to stop construction work at the Maules Creek coal project. Despite Whitehaven Coal having the necessary approvals to proceed with the project, NICE challenged the validity of the approval process led by former Environment minister Tony Burke. Whitehaven managing director and chief executive Paul Flynn said he was pleased to successfully defend the injunction. “This is obviously a positive result for the company,” he said. “The Maules Creek project has been through one of the most rigorous planning approval processes, at both state and federal levels, ever undertaken by a mine in NSW. “Coal production remains on target for the first quarter of…

FORMER Xstrata boss Mick Davis has raised an initial US$1 billion to kick-start an ambitious private mining venture, X2 Resources. X2 is the brainchild of Mr Davis and a team of ex-Xstrata executives looking to create a new mid-tier diversified mining and metals group by “identifying and acquiring assets and businesses at an opportune time in the cycle.” The venture’s strategic partners, commodities trading house Noble Group and private equity firm TPG, have agreed to invest US$500 million each. X2 announced Noble as the company’s preferred marketer and provider of supply chain management and logistics services, a partnership that would bring “significant advantages” including market intelligence, proprietary deal flow, acquisition support and post-acquisition services such as supply chain and risk…

A Memorandum of Understanding (MoU) initiated between the NSW and South Australian Governments aims to increase investment and economic development in mineral resources near the shared border. NSW Resources and Energy minister Chris Hartcher and SA Mineral Resources and Energy minister Tom Koutsantonis formally agreed to guide areas of responsibility for joint cooperation between the NSW Trade and Investment department and the SA Manufacturing, Innovation, Trade, Resources and Energy department in Broken Hill. The scope of the MoU focussed on creating joint programs to promote exploration and investment, by positioning the governments as proactive jurisdictions that would welcome overseas investment; developing alignment between the geological and regulatory system in both states; and generating a renewed commitment tocollaborative exploration initiatives for…

IRON ore giant Fortescue Metals Group is heading to the WA Supreme Court to contest shared access of its railway infrastructure with Pilbara junior Brockman Mining. Fortescue lodged legal action in October, through its subsidiary The Pilbara Infrastructure (TPI), for a review of the Economic Regulation Authority’s (ERA) previous determination of TPI’s floor and ceiling costs, as well as its decision to approve negotiations with Brockman for rail access. The ERA rejected TPI’s original cost claims of $575.6 million and set a minimum annual price of $84.7 million and a maximum of $316.9 million from all line users, including Fortescue, The West Australian reported. “We believe the ERA has made errors in its determination of the floor and ceiling costs,”…

WA Premier and state development minister Colin Barnett has officially opened Rio Tinto’s US$11.6 billion Cape Lambert Wharf B facility off the Pilbara coast, marking the end of the first phase of its expansion. The Cape Lambert port, near Karratha, was initially built to manage 55 million tonnes per annum of iron ore; however the upgrade would push export capacity up to 140mtpa. In conjunction with its Dampier ports, Rio’s iron ore export capacity is now in excess of 290mtpa. According to the ABC the development made Rio’s export system one of the largest in the world – second only to Brazilian giant Vale’s export chain from South America. Mr Barnett congratulated Rio and its ongoing commitment to the WA…

TWO workers at Rio Tinto’s Yarwun alumina processing plant, near Gladstone in Queensland, were rescued after being stranded in the toxic alumina tailings dam for several hours. Rio had to employ RACQ Capricorn Helicopter Rescue Service and firefighter emergency services to rescue one male Rio employee and one female contractor, when the machine they were operating overturned into the dam of toxic red sludge. At the time of the incident, the workers were on board the machine, known as an amphibious amphirol, attempting to flatten and condense the red mud processing by-product. However, when the machine rolled both workers were drenched in sludge. A helicopter was deployed to lower fresh clothes and equipment to the workers, who had managed to…

DIVERSIFIED energy company Linc Energy has announced its successful acquisition of Rio Tinto’s dormant Blair Athol coal mine in Queensland’s Bowen Basin, just days after the company declared it would quit the ASX in favour of Singapore’s oil and gas specialities on the SGX. The junior – with interests across oil, gas and coal – reportedly plans to resuscitate the formerly lucrative mine site, creating up to 100 new jobs for the central Queensland area in the process. Rio Tinto officially closed its Blair Athol operations in November 2012, after describing the 29 year old site as “largely mined out”. The site had since entered into care and maintenance rehabilitation. According to The Australian, Linc Energy – via its subsidiary…

IN a move to deliver significant benefits to both companies, MetroCoal and Cape Alumina have signed a Merger Implementation Agreement (MIA) to create a diversified bauxite and thermal coal business with a staged development pipeline. Under the agreement, MetroCoal would offer 1.12 shares for every Cape Alumina share, in addition to providing Cape Alumina with a $3 million convertible note to supplement Cape Alumina working capital to accelerate work on the Pisolite Hills project, 50km northeast of Weipa in Queensland. The first $1 million would be made available on execution of the MIA, while the further $2 million would be available subject to the approval of Cape Alumina shareholders. Pending all required approvals, the companies reportedly expects the merger to…

CANADIAN producer Barrick Gold has reached a settlement with Gold Fields Limited for the sale of three WA gold mines, just two months after announcing the assets would go to market. In a deal worth US$270 million, Barrick Gold signed across the three primary mine sites from its Yilgarn South project, 23km south of Laverton, to the major South African gold developer in early October. Inclusive of the prosperous Granny Smith, Lawlers and Darlot mines, the deal added about 400,000oz of gold output to Gold Field’s current Australian portfolio. According to reports, Australia would become Gold Fields’ largest production hub, holding 42 per cent of the company’s total gold output. Barrick chief executive Jamie Sokalsky stated that the assets were…

A scoping study has found Atrum Coal’s flagship Groundhog anthracite project in Canada to be a low capital expenditure opportunity for a 1.8 million tonnes per annum run-of-mine (ROM) operation. The study indicated a five year initial mining, processing and transport cost of about US$85 per tonne on a contract basis, with a target of less than US$70/t as an owner-operator. Based on a 1.57 billion tonne JORC-compliant resource, the study targeted first shipment in the fourth quarter of 2014. It indicated the project could have a before-tax free cashflow of US$107 million per year, increasing to US$293 million per year at an aspirational rate of 3mtpa of anthracite production. The study was modelled on extraction from coal seam #70,…