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Pajingo gold mine in North Queensland. By Elizabeth Fabri EVOLUTION Mining has signed an agreement to sell Pajingo gold mine and surrounding exploration tenements to Minjar Gold for $52 million. The deal involved a $42m upfront cash payment, and royalty payment of up to $10m for gold production above 130,000 ounces, which would result in a loss of $77.3m for Evolution based on the carrying value of the asset. “Pajingo has made a very important contribution to our business over the last six years,” Evolution executive chairman Jake Klein said. “Evolution has grown significantly in the past 18 months and it now makes strategic sense for the asset to be operated by an emerging gold producer that can provide the...

Rio Tinto's autonomous haulage trucks at its West Angelas minesite. Image Christian Sprogoe Photography. By Elizabeth Fabri JUNIOR minors are more willing to embrace a culture of open innovation than their major counterparts, according to a new study by Deloitte. The Innovation in mining Australia 2016 report, developed in association with Diggers and Dealers and the Association of Mining and Exploration Companies (AMEC), explored how innovation was being employed in Australian mining. Deloitte found that while junior minors lacked the resources readily available to majors, their ability to problem solve, take advantage of government incentives, and willingness to embrace a culture of open innovation led to confidence in the sector. The report also stated Australia ranked itself above Canada and Africa but...

By Elizabeth Fabri TELECOMMUNICATIONS giant Telstra will dip its toes in the resources sector. Telstra Mining Services was created following acquisition of a mining communications technology service business from CBO Telecommunications and the appointment of global mining experts Jeannette McGill and Eric Nettleton.  CBO Telecommunications expertise spanned Wi-Fi and Mesh technologies and mine site enterprise grade networks, with complementary capabilities to support the growth of Telstra’s mining focused private LTE and public LTE (LANES) businesses. Telstra Global Enterprise and Services group managing director Martijn Blanken said Telstra Mining Services would help the industry transition to a digital future. Head of Telstra Global Industries David Keenan said the decline in global commodity prices was a significant factor that sharpened the industry’s focus on...

Jundee gold mine operations. Image: Northern Star Resources. By Elizabeth Fabri AREAS of high-grade mineralisation have been discovered at Northern Star Resources’ Jundee gold mine, up to 800m from existing operations. The newly-identified resources were found in Northern Star’s first exploration campaign at the mine since it purchased the asset in 2014. While the company was only 15 per cent through its drilling campaign, the early results suggested Jundee would continue to operate at or around current production levels for many years. New discoveries included the Armada and Revelation trends, and the expansion of known parameters of seven mining areas. The Gateway-Gringotts trend produced positive drilling results including 2.8m at 598 grams per tonne, while Westside recorded 0.8m at 3933g/t. Northern Star...

Rio Tinto’s new chief executive and managing director Jean-Sébastien Jacques. By Elizabeth Fabri RIO TINTO’s newly appointed chief executive Jean-Sébastien Jacques has unveiled changes to the organisation’s structure and his executive team. On 2 July, Jean-Sébastien Jacques replaced former chief executive Sam Walsh, and reorganised the group to better align assets with the business strategy and optimise performance. “In the face of testing times for the industry, Rio Tinto is performing remarkably well,” Jean-Sébastien Jacques said. “Our strategy, commitment to balance sheet strength and focus on shareholder returns will not change; but we are strengthening our structure and delivery by placing our assets at the heart of the business to drive improved performance.” The new structure comprised four product groups -- Aluminium, Iron...

BHP Billiton's Shenzi operations in the Gulf of Mexico. By Elizabeth Fabri BHP Billiton’s will increase exploration expenditure to $US900 million in the next financial year, accounting for 18 per cent of its overall capital budget. A value-focused approach to exploration was announced on 27 June at Citigroup’s Mining Exploration Day in Sydney by BHP Billiton head of geoscience Laura Tyler, who outlined the company’s plan to enhance its tier 1 portfolio by focusing on copper and oil. “We are investing at a time when most in our sector continue to reduce discretionary spend,” Ms Tyler said. “We are also challenging existing paradigms with a scientific based and disciplined approach to exploration.  “We have reduced exploration operating costs by 70 per cent since...