Tag: WA

Red 5 On Target With KOTH Mining Kick Off

Red 5 On Target With KOTH Mining Kick Off

Red 5 Limited’s (ASX: RED) mining contractor, Macmahon Contractors Pty Ltd has commenced open pit mining at the 100%-owned 2.4Moz, 16-year life-of-mine King of the Hills (KOTH) Gold Project in Western Australia. With the KOTH Project now well past 83% completion (at the end of December 2021), Red 5 is firmly on track to deliver first gold production through the new state-of-the-art KOTH processing plant in the June Quarter. The commencement of open pit mining is in-line with the project execution schedule, with underground mining expected to commence on schedule in early April 2022. Macmahon is progressively mobilising to KOTH, establishing infrastructure, and ramping up its site workforce according to plan. The initial open pit mining fleet consists of one...

More Money for WA Exploration

More Money for WA Exploration

The WA Government will increase the Exploration Incentive Scheme from $10m to $12.5m. Starting in 2021-22, the increase in EIS funding is aimed at further incentivising investment in WA's mining industry. As part of the WA Recovery Plan, the EIS received a one-off funding of $5m in 2020-21, which temporarily increased the EIS budget from $10m to $15m. For the past two EIS rounds, the Department of Mines, Industry Regulation and Safety has received a significantly higher number of applications. Previous EIS success stories include the discovery of the Nova nickel mine, the Tropicana gold mine, Gruyere gold mine and most recently the Bellevue Gold project. A recent independent study, covering the first 10 years of the EIS, reiterated the...

WA resource sector worth $67.1 billion

WA resource sector worth $67.1 billion

A SURVEY of 53 WA resources sector companies found that the State’s mining, oil and gas, energy and contractor industries contributed more than $67.1b to Australia’s economy in 2018-19 and directly created more than 71,000 fulltime jobs. The Chamber of Minerals and Energy of Western Australia (CME) Chief Executive Paul Everingham said the organisation asked its members, ‘How much does industry spend and where?’ “The data provided by 53 member companies for the financial year 2018-19, shows how industry’s spending flows through to every part of WA, by means of wages and salaries, business purchases, government payments and community contributions,” Mr Everingham said. “Considering this survey is just a snapshot of the sector’s direct contribution to the broader economy,...

WA: Powerhouse Of The Nation

WA: Powerhouse Of The Nation

A RESEARCH project by Painted Dog has revealed that contributions from mining in WA are much more significant than eastern states residents realise, with many attributing NSW and Victoria with a far higher percentage of the national export figures than they actually are. The West Australian reported that WA contributes 36.5% or $171.4b of the $470b worth of exports, compare to NSW and Queensland in second place with a much smaller 20% contribution while Victoria lagged behind with 12%. This contrasted with the perception by 75% of those surveyed who lived in NSW and half of those who live in Vic, who wrongly assumed that their own state was the top contributor. Premier Mark McGowan oft cited phrase that WA...

WA leads in resource profits

WA leads in resource profits

WA has led the nation in resource sales, netting $167.3b for the 2019 calendar year. The state's Department of Mines, Industry, Regulation and Safety (DMIRS) said sales rose by 28pc from 2018 ($130.3b), mainly from iron and gold production. The DMIRS said high iron ore prices in the first half of 2019, following global supply shortages, were the main contributor, with $97.7b of the product sold last year, accounting for 76pc of overall mineral sales in WA. Not far behind were gold sales, with the volume being the highest the state has shipped in more than two decades, with $13.8b worth of the metal sold last year, also thanks to record gold prices of more than $2000/oz average. Industry confidence...

European funds for aluminium plant

European funds for aluminium plant

European funds for aluminium plant A $189M new high purity alumina (HPA) plant will be established in Kwinana, WA, by FYI Resources, with about 30pc of the financing secured from a European private fund. Luxembourg’s GEM Global Yield, a US$3.4b alternative investment group, will be financing $80m or about 30pc of the cost to build the proposed Kwinana plant. First production of HPA is targeted in the second quarter of 2022, with the company aiming to produce up to 8000tpa. FYI Resources managing director Roland Hill says the company is pleased to secure significant equity funding, which will de-risk the project by providing funding access at critical development stages. “Our definitive feasibility study outcome was outstanding, with results within five...

Westgold restarts Big Bell operations

Westgold restarts Big Bell operations

ONE of Australia’s previous largest single mine gold producers has restarted operations in the Murchison, WA, with plans to bring it back to its former glory. Westgold Resources (ASX: WGX) yesterday announced underground sub-level mining has recommenced at its Big Bell mine, located within the company’s Cue Gold operations. Westgold executive chairman Peter Cook said this was a major milestone for the company and paves the way for planned ramp-up in mine output, targeting steady-state production rates by the end of 2020. “Big Bell will become our largest single mine in the Murchison region and restarts with a 10-year mine life with excellent resource extension potential,” he said. The first mass cave blast broke about 103,000t at 3g/t of gold...

Boonanarring: A strong start

Boonanarring: A strong start

IMAGE Resources' 100pc-owned, high-grade, zircon-rich Boonanarring mineral sands project, 80km north of Perth, exceeded nameplate capacity in the second month of operation in January 2019. The company achieved profitability in Q1 and was cashflow positive in Q2. At Q3, the company had produced 201.4kt heavy mineral concentrate (HMC) for the year, with full-year guidance lifted to 260-280kt HMC, which the company said reflected the “better than expected operation performance”. The company’s ore processing rates had benefited significantly from the installation of a larger trommel at the feed preparation plant in August, which allowed for an 11pc increase in Q3 to hit 874kt. Image Resources managing director, Patrick Mutz, said that the success of the project in its first year of...

Gruyere Gold: the home stretch

Gruyere Gold: the home stretch

THE Gruyere joint venture between Gold Road and Gold Fields is aiming to pour first gold during the June quarter, and anticipated full production by the end of 2019. After a re-evaluation in 2018, the final forecast capital cost for construction was estimated at $621 million, up from the initial capex of $507 million. The project was expected to produce an annual average of 300,000 ounces over its 12-year mine life; about 30,000oz more than the original 270,000ozpa originally flagged, making the project an emerging tier 1 gold producer. In a statement, the company said that the increase was driven by the “opportunistic purchase of larger SAG and Ball mills to lift throughput to 8.2million tonnes per annum (mtpa) in...

Mt Morgans: growth potential

Mt Morgans: growth potential

WITH production well and truly underway at Dacian Gold’s Mt Morgans project in WA, the company was now turning its attention to exploration to grow mine life. After an “excellent” December quarter, Dacian Gold declared commercial production at its flagship Mt Morgans project in January. The mine, 37km south of Laverton, presented Dacian with 200,000 ounces of gold over an estimated 10-year mine life, and a clear path to mid-tier status through its organic growth options; the Westralia underground operation, open cut Jupiter mine, and new discovery Cameron Well. Dacian Gold executive chairman and chief executive Rohan Williams said the company achieved its commercial production milestone in January exactly when it said it would. “We have now been producing for almost a...

Rail in Mining: Golden Age

Rail in Mining: Golden Age

Image: Australasian Railway Association. BY AMY BLOM RAIL is set to boom in mining, with several rail-reliant iron ore and coal mines schedules for development in WA and QLD, and a renewed focus on innovation. However, the industry continues to be challenged by a skills shortage. Rail has entered a golden age, particularly within the mining industry, but it is still struggling to attract young talent, according to Australasian Railway Association (ARA) chief executive Danny Broad. Mr Broad, who has previously warned of a skills shortage, said there had been a huge increase in rail investment, which was good for the country, but presented challenges if the industry was not prepared. “It’s the golden era of rail at...