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Peabody files for bankruptcy

Peabody files for bankruptcy

Peabody Energy, the world largest private sector coal company, stated that its Australian business would remain unaffected by bankruptcy proceedings. By Reuben Adams PEABODY Energy maintains that its Australian coal business will not be affected by a decision to file for bankruptcy in the US and all operations will continue as normal. Peabody, in a major step to “strengthen liquidity and reduce debt,” voluntarily filed petitions under Chapter 11 for the majority of its US entities in the United States Bankruptcy Court for the Eastern District of Missouri. The company hoped this process would help reduce its overall debt level, lower fixed charges, improve operating cash flow and “position the company for long-term success, while continuing to operate under the protection of...

Lithium speculation plays out in WA

Lithium speculation plays out in WA

Tesla has 325,000 pre-orders for its new Model 3 electric car. Source: Tesla Motors. By Cameron Drummond THE use of lithium in industrial batteries has seen the popularity of the rock-bonded soft metal skyrocket. These batteries out-perform their predecessor, the traditional nickel-metal hydride unit, for use in clean energy technologies such as electric cars and home energy storage. Lithium as an industrial commodity has gone from strength to strength on the back of these exciting technological shifts, most notably through tech-entrepreneur Elon Musk’s Tesla electric-powered cars and home battery storage units. The Tesla Motors (NASDAQ:TSLA) share price enjoyed a steep ascent from a February 2016 low of $185 to $326 on 11 April, when it announced it had received US$1000...

Oversubscribed placement signals “slight” easing of capital markets

Oversubscribed placement signals “slight” easing of capital markets

Exploration at Tyranna Resources’ Jumbuck gold project in South Australia is supported by an oversubscribed share placement. By Reuben Adams TYRANNA Resources will raise $800,000 before costs through a massively oversubscribed share placement as exploration at its Jumbuck gold project in South Australia continues to build momentum. These funds will be used for advancing exploration at four prospects within Jumbuck in the northern Gawler Craton – Campfire Bore, Golf Bore, Golf Bore North, and Mainwood – which are the focus of Tyranna’s current 6200m reverse circulation drilling program. This program encompasses wholly owned Tyranna tenements and tenements which form part of a 59:41 joint venture with Challenger Gold Operations (an equal ownership JV between WPG Resources and Pybar Mining Group), operator...

Debt-free Millennium looks to grow coffers

Debt-free Millennium looks to grow coffers

Millennium Minerals produced 23,166oz of gold from Nullagine for the March quarter and paid down the last of its debt. By Reuben Adams MILLENIUM Minerals is now debt free and looking to build “strong” cash reserves on the back of its 80,000 ounces per annum Nullagine gold project in WA. Millennium produced 23,166oz of gold and recorded $7.1 million free cash flow in the March quarter, putting it on track to reach its production guidance of between 80,000oz and 85,000oz of gold for the year. All-in sustaining costs of $1195/oz were at the lower end of full-year guidance of between $1180/oz and $1220/oz of gold. Millennium chief executive Glenn Dovaston said the solid March results confirmed the company’s strong...

Portia gold mine ahead of schedule

Portia gold mine ahead of schedule

Gold ore is being stockpiled at Havilah Resources’ Portia open pit gold mine in preparation for processing in April. By Samantha James HAVILAH Resources has started stockpiling gold ore at its Portia open pit in South Australia, three and a half months earlier than scheduled. The milestone was achieved in mid-March due to a mine plan redesign which now envisioned commissioning of the processing plant by the end of April.Mining operations began in late March 2015 and by mid-March 2016 Havilah’s contractor had mined to within 5m of the high grade ore horizon. Havilah managing director Dr Chris Giles said that mining the open pit had come with some challenges. “It is pleasing to note that in spite of the...

Another milestone for Citronen

Another milestone for Citronen

The Citronen project in northern Greenland represents one of the world’s largest undeveloped zinc-lead resources. By Reuben Adams PERTH-based developer Ironbark Zinc has received a draft Impact Benefit Agreement (IBA) from the Greenland Government for its globally significant Citronen zinc-lead project, the last document to be finalised before an exploitation licence can be awarded. The terms of the IBA typically focussed on formalising employment and training commitments as well as detailing how the Government, municipalities and Ironbark would work together to maximise the beneficial opportunities for all parties. “Ironbark is delighted to reach this next milestone in the licensing process,” the company said in a statement. “Ironbark has developed a solid relationship with relevant parties through the public...

FMG axes Downer

FMG axes Downer

By Cameron Drummond FORTESCUE Metals Group has swung the axe at its last Christmas Creek contractor Downer EDI as it moves toward a cost-saving owner-operator business model. FMG consolidated its mine contractors from two to one in February 2015, dropping MacMahon Holdings to give Downer the remaining work at the time. Downer had serviced the Christmas Creek iron ore mine since 2010. Fortescue chief executive Nev Power said production from Christmas Creek was not expected to be affected during the transition as the company looked to further improve efficiency and productivity at its operations. "Adoption of an owner-operator model will further reduce Fortescue's costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations," Mr Power...

Protestors undeterred by harsher laws

Protestors undeterred by harsher laws

By Samantha James TWO anti-mining activists have chained themselves to a conveyor belt at Whitehaven Coal’s Narrabri mine in NSW, a week after a woman stopped the movement of coal trains from in and out of the company’s nearby Maules Creek mine by locking herself onto the tracks. On 1 April a Whitehaven spokesperson confirmed that protestors had attached themselves to gantry cranes near the coal preparation area at Narrabri, adding that police had dealt with the situation. “This event will have no effect on our operations,” the spokesperson said. The protests come just weeks after the NSW Government announced a bill which called for new search and seizure powers for police and increased fines of $5500 for aggravated unlawful...

Australia to supply uranium to Ukraine

Australia to supply uranium to Ukraine

By Samantha James THE Minerals Council of Australia (MCA) has welcomed Foreign Affairs minister Julie Bishop’s announcement that she will sign a cooperation agreement to supply uranium to Ukraine for use in power generation at the fourth global Nuclear Security Summit in Washington DC. In a statement Ms Bishop said the contract with the Ukraine would “complement similar agreements Australia has with countries including Canada, China, France, India, Japan, Republic of Korea, Russia, the UK and the US” and assist in maintaining strong international cooperation on nuclear security. MCA executive director of uranium Daniel Zavattiero said in a statement that the agreement would offer Ukraine additional diversity of uranium supply, and Australia access to an important and growing market. “This...

Maiden leucoxene shipment leaves Bunbury Port

Maiden leucoxene shipment leaves Bunbury Port

By Rachel Seeley THE first shipment of L70 leucoxene product from MZI Resources’ Keysbrook mineral sands project in South West WA has departed Bunbury Port enroute to the US. This shipment marked the start of cashflow from the project, with offtake customer Chemours using the L70 leucoxene to make pigments for paints, plastics and other applications. “This shipment represents Keysbrook’s arrival as the single biggest producer of high value leucoxene in the world, as we continue to ramp up cash flow generation and build value for shareholders through high margin product sales,” MZI managing director Trevor Matthews said. More than 3800t of zircon concentrate was also shipped to Tricoastal/Wensheng – China’s largest mineral sands processor – under a five-year offtake...

Seafloor production tools arrive in Oman

Seafloor production tools arrive in Oman

By Reuben Adams THE arrival of three seafloor production tools (SPTs) at Duqm Port in Oman for extensive wet testing represents a major milestone for Nautilus Minerals’ Solwara 1 project. The SPTs will cut and extract high grade copper and gold from the seafloor at the Solwara 1 project site in the Bismarck Sea off the coast of Papua New Guinea, with production to start in the first quarter of 2018. The SPTs were designed and assembled in Newcastle upon Tyne by UK company Soil Machine Dynamics, which was awarded the contract for the world-first deep sea mining vehicles in 2007. The SPTs and associated equipment weigh more than 1000t. The wet testing would examine control systems operations and feedback;...