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HEAVY rare earth element (HREE) explorer and developer Northern Minerals has announced a completed share placement that raised $10 million to fund exploration and the further development of its projects in northern Australia. The placement incorporated 22.727 million fully-paid shares at an issue price of $0.44 each, which ranks equally with existing Northern Minerals ordinary shares quoted on the ASX. Northern Minerals managing director George Bauk said the funds raised would be used to continue work at the Browns Range and John Galt HREE projects, as well as for working capital. “A priority will be the diamond drilling for targets at the Wolverine and Gambit prospects , which we expect to commence in May, as well as the…

WA resource companies have lifted Deloitte’s WA Index, with the total market capitalisation (cap) of all stocks growing by 2 per cent to $128 billion despite a short-term downward slide. Deloitte’s latest report on WA stocks revealed coal-focussed Aquila Resource was the biggest mover of all the miners, with its market cap up 30 per cent to $177 million for the month of February. Mining service companies such as Imdex and Tutt Bryant also posted gains to their market caps, with Imdex up 33 per cent to $42.4 million and Tutt Bryant up 30.2 per cent to $43 million. “In February, commodity market prices rose across the board, with uranium prices leading the way with an 18 per cent rise,”…

DIVERSE metals explorer Phosphate Australia has reported strong results from the second phase of drilling at its Tuckanarra gold project. The Tuckanarra mine lies within WA’s Murchison goldfield, and has historic production of about 125,000 ounces. The Phase 2 aircore (AC) drilling program at Tuckanarra comprised 215 holes for a total of 5070m of drilling, primarily targeting shallow laterite mineralisation at the project’s Cable East, Cable West, Drogue, Bollard and Anchor deposits. Drilling was completed in February, and identified mineralisation in all of the targeted deposit areas. Drilling at Cable East upgraded the strike length of the deposit to about500m, open at depth, with drilling returning results including 12m at 3.28 grams per tonne gold from 16m to end-of-hole. The…

PERTH-based gold exploration and development company Manas Resources has received wide, high-grade results at its 100 per cent-owned Shambesai gold project in the Kyrgyz Republic – formerly Kyrgyzstan – in Central Asia. Drilling highlights at the project, which is being fast-tracked toward production in 2013, included a number of continuous wide, high-grade intersections along the main Shambesai shear zone. Manas reported that it expected the results would have a positive effect on the project’s overall mineral resource. A number of drilling hits occurred outside the established Shambesai mineral resource and scoping study pit boundary, including 22m at 3.16 grams per tonne of gold from 97m and 8m at 8.45g/t of gold from 103m. Manas reported that all drilling and exploration…

THE proposed $8 billion merger between Gloucester Coal and Chinese-owned Yancoal Australia has reached another milestone after receiving approval from the Australian Federal Government. Deputy Prime Minister Wayne Swan issued a statement in early March stating that the merger had been given the go-ahead subject to certain conditions. Firstly, the merged entity, Yancoal, must remain headquartered in Australia, and continue production and supply arrangements on a commercial basis. Secondly, Yancoal is required to list on the ASX by the end of this year. In late December 2011, Gloucester announced the proposal to the ASX. Both parties carried out due diligence regarding the merger and it was completed by early March, with some amendments. The primary modification was that Yancoal must…

MINERAL development company ERO Mining plans to raise $1.8 million through a rights issue to fund exploration and development at its Peeweena Dam prospect in South Australia’s Billa Kalina area. The pro rata one-for-one non-renounceable rights issue will attempt to raise the funds through the issue of about 360 million new fully paid ordinary shares in ERO, issued at a cost of $0.05 per share. Acting ERO chief executive officer Kevin Lines said the initial market reaction to the rights issue had been positive. Exploration will include geophysical surveys and subsequent drilling programs at Peeweena Dam – a joint venture between ERO and Maximus Resources 70km north-north-west of the Olympic Dam copper-gold-uranium mine and 45km east of the Prominent Hill…

IRON ore demand will double to about 3.5 billion tonnes per annum by 2030, with ongoing Chinese demand driving the ore’s production growth, according to resource intelligence agency Intierra. The agency’s report centred around a presentation by Raw Materials Group chairman Professor Magnus Ericsson, which he made at the 15th annual Global Iron Ore & Steel Conference held in Perth in late March. The paper, Chinese and Indian Iron Ore Production – Determining the World Market Balance, was presented to iron ore and steel executives from Australia, India and China. Aiming to give key stakeholders further insight into the iron ore sector and its future, analysts from Raw Materials Group conducted key research into supply and demand issues regarding the…

AUSTRALIAN uranium developer Toro Energy believes the planned re-start of Japan’s nuclear reactors, expected this month, will boost global uranium prices. Following last year’s Fukushima nuclear disaster, caused by the devastating Tohoku earthquake and tsunami, Japan closed 53 of its 55 reactors indefinitely. The Japanese Government is now expected to reopen the plants due to ongoing energy supply problems. Speaking at the Paydirt 2012 Uranium Conference held in Adelaide last month, Toro managing director Greg Hall said the short-term uranium spot price had been impacted by a temporary uranium inventory overhang resulting from Japan’s ‘plant shutdown and safety stress checks’ approach in the wake of the tsunami incident. The closure of the nuclear reactors caused major economic frustration in Japan,…

A Chinese steel maker and an Australian iron ore explorer have signed a joint venture agreement to develop a new deep water port in South Australia that will be the fi rst in thestate capable of handling Cape-size ships. Centrex Metals announced in mid-March that it had entered into a partnership with Wugang Australian Resources Investment (WARI), a subsidiary of major steel maker Wuhan Iron and Steel Company (WISCO), to design, build and operate the proposed Port Spencer. The port, which was assigned major development status by the South Australia Government in 2010, will be used to export iron ore and grain from the Eyre Peninsula. It will be capable of loading vessels of up to 200,000t and will have…

WA’s Mid West is poised to become a thriving iron ore region: potentially one of the biggest in Australia and second only to the Pilbara. With more than 100 mineral, infrastructure and tourism projects driving this growth, the region is gradually becoming a major economic hub, as local employment figures rise and communities develop. Mining in the Mid West has already boosted the region’s economy by delivering major employment and business opportunities, yet the area is still undergoing significant development, confirming its undeniable value. Due to the Mid West’s ample mineral resources, mining will continue to play an important role in its economy. The Mid West’s estimated Gross Regional Product was about $6.1 billion for the 2010-2011 financial year, representing…

DESPITE record rainfall at two of its three mine sites last year, Rio Tinto subsidiary Dampier Salt has beaten the odds, reporting record rates of production, sales and exports for 2011. Dampier Salt managing director Denise Goldsworthy said the company exported more than 10 million tonnes of solar salt in 2011, just a year after it was honoured as one of the state’s most successful exporters at the WA Industry and Export Awards. Meanwhile, the company has moved forward with its plan to refurbish its long-standing Dampier Ship Loading Jetty. Savcor Group, through its subsidiary Savcor Finn, was awarded the $12.8 million project, which involves the removal of an existing timber decking system, refurbishment and painting of a steel superstructure,…