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IRON ore company Gindalbie Metals has announced a $62 million equity raising to strengthen its balance sheet so it can contribute to the commissioning of its flagship Karara project in WA if necessary. The equity raising comprises a $40 million fully underwritten placement to institutional and sophisticated investors, and a proposed additional conditional placement of $22 million to major shareholder Ansteel that would allow Ansteel to maintain its 36 per cent interest in Gindalbie. The offer price for the institutional placement, which was successfully completed in early December, was 25.5 cents per share – a 13.6 per cent discount to the last closing price of Gindalbie’s shares before the placement. First magnetite concentrate has been produced at Karara and the...

DIVERSIFIED multi-commodity explorer Tasman Resources has announced the drilling of a third hole at its Vulcan project, 30km north of Olympic Dam, about 550km north-northwest of Adelaide in South Australia. Drilling resumed at the iron oxide-coppergold- uranium (IOCGU) project, which is operated as a joint venture with Rio Tinto Exploration, in September 2012. The hole, VUD 11, intersected more than 620m of IOCGU-style highly altered and brecciated rocks – which included a 12m intersection of massive hematite – and was the third to be completed as part of the JV’s exploration program. As the rocks contain only minor amounts of copper sulfides, Tasman reported that it expected assays, when received, would be relatively low. VUD 11 is inclined at -70...

OBTAINING insurance for a mine site can be a complex process, but Affinity Insurance makes it easy for contractors to understand what types of cover they may need, how to get it, and how much it will cost – giving them options to make the right decision on how to best insure their business. According to the family-owned firm, owners of mobile plant and equipment were often unaware that they could insure the resultant loss of profits, or extra costs incurred, when hiring temporary equipment if their own was damaged. “Companies that contract to mine sites can protect their assets and the income linked to their machines if they use the right insurer,” a company spokesperson said. Affinity Insurance can...

THE past year has been one of significant change for Wesfarmers Resources’ Curragh mine. The company saw production soar nearly 18 per cent in three months at its primary after completing a $286 million plant expansion — part of its strategy to respond to volatility in the world coal market. Wesfarmers hoped to increase production at Curragh, which covers about 12,600 hectares in the coal-rich Bowen Basin in Central Queensland. The company predicted the improvements would increase its export capacity to between 8 million tonnes per 8.5mtpa from the previous 6.5mtpa. During the June quarte   new facilities online, Curragh set a company record, producing metallurgical coal at a rate of 780,000t per month. The mine’s output for the period totalled...

FOR emerging gold producer Millennium Minerals, 2012 has been a momentous year: the company completed construction and commissioning of its flagship Nullagine gold project, and officially transition to the status of producer when it poured first gold from the project on September 30. The Nullagine project centres on a 1.33 million ounce gold resource contained within a series of deposits — Golden Eagle, Bartons, Shearers, Otways, All Nations, Little Wonder, Golden Gate, Falcon, Condor, Harrier, Crow and G-Reef —that are subject to granted mining leases. Golden Eagle is the largest deposit: about 10km south of the township of Nullagine, it contains 62 per cent of the Nullagine project’s total mineral resource inventory. A bright future Millennium acquired a significant package...

DESPITE the tough economic conditions of the past year, Independence Group has ended 2012 on a high, and will continue to transform itself from a junior explorer to a successful multi-commodity producer in the coming year. Company highlights during 2012 have included the announcement of record production levels at the flagship Long Nickel mine; significant construction headway at the Tropicana gold project; and completion of a $115.5 million equity raising. Furthermore, the company expects to more than double its revenue – which was $216.6 million for the 2011 to 2012 financial year – once production begins at Tropicana, 330km northeast of Kalgoorlie, towards the end of next year. In the company’s 2012 annual report, Independence Group chairman Peter Bilbe said...

BERMUDA-based resources company OM Holdings (OMH) has had its fair share of ups and downs in recent years. The integrated minerals group has three key business elements: the mining of manganese at its flagship Bootu Creek operation; the production of ferro alloys at its Qinzhou smelter in China; and the marketing of products through its trading division in Singapore. OM (Manganese) Limited (OMM), the Australian subsidiary of OMH, is operator of the Bootu Creek manganese project, about 170km from Tennant Creek in the Northern Territory. Bootu Creek has been producing manganese since 2006. It has an annual export capacity of one million tonnes per annum and an expected mine life of 13 years. The project was initially designed to produce...

GOLD production fell by at least 40,000oz during the third quarter, largely as a result of strike action at AngloGold Ashanti’s operations in South Africa, where the miner began laying off workers at one of its holdings. AngloGold’s output for the quarter ended September 30 was 1.03 million ounces of gold, well below its guidance of between 1.07moz and 1.10moz. Unit total cash costs were previously forecast at between US$835 and US$865 per ounce, but the company said lower production would impact these figures. Meanwhile, AngloGold began letting go of workers at its West Wits operations at the same time as employees at three other mines at Vaal River ended their industrial actions. About 12,000 workers at the Mponeng, TauTona...

THE Federal Government’s projected $1.1 billion surplus has taken a ‘double hit’ after it was revealed that the Minerals Resource Rent Tax (MRRT) had collected no revenue in its first three months of operation. With the tax funding billions of dollars’ worth of programs, a shortfall could force the Federal Government to draw money from other areas or abandon its long-held plans for a surplus. Even as the Government scaled back estimated receipts from the MRRT for the 2012 to 2013 financial year from $3.1 billion to $2 billion, Treasurer Wayne Swan defended the levy, claiming the real reason for the slow start was the well-known cooling of the Chinese economy. Plummeting coal and iron ore prices have forced the...

THE Sulphur Springs copper-zinc project in WA’s Pilbara region has encountered positive drilling results, WA-based explorer Venturex has announced. According to a company statement, a “highly successful” 1710m, six-hole drilling program completed at the main Sulphur Springs deposit discovered high-grade copper and zinc at the Western Lens mineralisation. The Sulphur Springs project, 160km southeast of Port Hedland and about 50km west of Marble Bar, was found to have significant widths of massive and stringer sulphide mineralisation in all six drill holes. The intersections recorded by Venturex were thicker and more extensive than expected, and the proposed mine design is inclusive of the extension. Venturex managing director Michael Mulroney said the Sulphur Springs project had great potential. “These new intersections at...

WHEN VDM Group was called upon to design and construct two sets of steel structures for the lifting and precision positioning of 12 of the biggest iron ore grinding mills in the world at CITIC Pacific Mining’s Sino Iron project, the company handled the task with ease. The purpose-designed and fabricated structures incorporated the latest computer-controlled, synchronised hydraulic lifting technology. The technology is capable of lifting, transporting and positioning pre-assembled 800t ball mills and 1200t autogenous mills onto their bearings 20m above the ground, to tolerance within half a millimetre. According to VDM, lifting and positioning the world’s biggest mills to within half a millimetre tolerance was the most technically challenging part of the project. The company achieved the task...