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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,...

IN a year when many gold producers experienced the negative effects of an unstable gold price, West Africa-focussed Perseus Mining doubled its total revenue for the financial year. The company’s total revenue for the period ending 30 June was $293.7 million, up from $145.7 million for the previous year. “Our financial performance in financial year 2013 was very solid, especially taking into account the recent volatility in gold price and technical challenges that needed to be overcome during the year at our flagship operation, the Edikan gold mine in Ghana,” Perseus managing director Jeff Quartermaine said. Despite this, the company experienced a drop in net profit after tax, down from $52.5 million in 2012 to $41.4 million. Perseus stated that...

FOLLOWING the upgrade of its Swedish graphite reserves, Talga Resources is hoping to raise $1.47 million in capital to fund the projects. The money would be raised by a combination of a public and private share placement – both placed at $0.05 per share – and would go towards completing economic assessments to advance the Nunasvaara and Raitajärvi graphite projects. Any leftover funds would contribute to advancing Talga’s Swedish iron ore projects, and for general working capital. Talga managing director Mark Thompson said the company had already secured new shareholders. “We are pleased to secure funds and new shareholders using a robust capital raising structure in what is a particularly challenging equity market environment,” he said. “After intense efforts by...