Mining Journal: 02 Feb 2007
Headlines
Russian oligarch takes control at Norilsk Nickel
RUSSIA’S government has moved closer to buying a majority stake in Norilsk Nickel after powerful billionaire and oligarch Vladimir Potanin unexpectedly bought out his business partner and company chief executive to take control of the world’s largest nickel producer Full story...Zimbabwe seizes diamond deposit
ZIMBABWE’S government has seized the disputed Marange diamond deposit in an unprecedented mining takeover, forcing the UK-based licence holder African Consolidated Resources plc to negotiate a minority government shareholding in an attempt to regain control Full story...Landmark Sons of Gwalia ruling
A LANDMARK court judgement in Australia upheld shareholder rights in the A$900 million shock collapse of gold producer Sons of Gwalia in 2004 Full story...Production and Markets
Zinifex’s output falls
Total metals production from Melbourne-based Zinifex Ltd, the world’s second-largest zinc producer, fell almost 10% in the six months to December 31, 2006 after operational shutdowns cut output at key operations Full story...Settlement between Freeport, Sumitomo
US-based Freeport-McMoRan Copper and Gold Inc and Sumitomo Metal Mining Co Ltd of Japan have settled treatment and refi ning charges (TC/RC) for processing copper concentrate in 2007 Full story...IMF sales advised
The International Monetary Fund (IMF) has been advised to sell some of its gold to cover losses Full story...Kazakhmys copper climbs
London-listed Kazakhmys plc’s copper-cathode output increased to 111,800 t in the December quarter of 2006, up by over 4% on the September quarter Full story...Modikwa strike halts output
A strike has stopped operations at the Modikwa platinum joint venture in South Africa in a dispute over benefits, working hours and alleged racial discrimination Full story...Ma`aden IPO
State-owned Saudi Arabian Mining Co (Ma’aden) has moved closer to launching an initial public offering to fund projects including a new aluminium smelter, alumina refinery and rail infrastructure Full story...Newcastle Queue Moves
Hunter Valley Coal producers in Australia are considering measures to cut ship queues at the port of Newcastle in New South Wales Full story...Aluminio start-up
Brazilian conglomerate Grupo Votorantim, through its subsidiary Companhia Brasileira de Aluminio (CBA), began production from its expanded Aluminio aluminium smelter in Sao Paulo state Full story...Chalco ups price
Aluminum Corp of China Ltd (Chalco) raised its domestic alumina spot price by 50% to US$464/t Full story...Las Camariocas change
The Cuban Government has ditched China Minmetals Corp – its joint venture partner for the mothballed Las Camariocas nickel project – for Venezuela Full story...CVRD invests in non-ferrous metals
Brazil mining giant Cia Vale do Rio Doce (CVRD) has allocated almost 36% of its US$6.3 billion capital expenditure budget to its non-ferrous minerals businesses, up from just 10% last year Full story...Slow restart for minor metals
The minor metals markets, particularly those influenced by China, were slow to restart after the Christmas and New Year holidays Full story...More from Rusal
OAO Rusal’s production of aluminium reached 2.77 Mt last year, a 2.2% increase on 2005 Full story...Rapu Rapu Date
Lafayette Mining Ltd may gain approval to reopen its 74%-owned Rapu Rapu polymetallic mine in the Philippines for commercial production early this month Full story...Anglogold Extension
AngloGold Ashanti Ltd will extend the life of the Yatela and Sadiola gold mines in Mali by four and ten years, respectively Full story...Rosebel strike
Production from Iamgold Corp’s Rosebel open-pit gold mine in Suriname has been suspended after workers went on strike on January 25 Full story...Norilsk Nickel expects PGM output to slip
Diversified Russian mining giant MMC Norilsk Nickel, the world’s largest palladium producer, expects production to fall by around 6%, to 3.00-3.05 Moz of palladium and 700,000- 710,000 oz of platinum this year, owing to a planned largescale restructuring of its operations Full story...Suncor begins growth
Canada’s second largest oil-sands producer, Suncor Energy Inc, will begin construction at its Voyageur project this month, aiming to double the company’s output to 550,000 bbl/d by 2012 Full story...Exploration & Development
CGA Mining set to buy Masbate
CGA Mining Ltd (previously Central Asia Gold Ltd) has agreed to buy the Masbate gold project in the Philippines from Thistle Mining Inc for US$51 million.Masbate is designed as a large-scale open-pit operation to exploit probable reserves estimated to contain 1.98 Moz of gold, using a cut-off grade of 0.7 g/t Au and assuming a gold price of US$450/oz Full story...Gahcho Kué cost-cut potential
De Beers expects to reduce the estimated cost to develop the joint-venture Gahcho Kué diamond project in Canada’s Northwest Territories by C$105 million.Jim Gowans, chief executive of the company’s Canadian unit, said preliminary indications from a review of a 2005 prefeasibility were that initial cost estimates of C$825 million could be reduced to C$720 million Full story...Lanfranchi extension initiated to reach Winner orebody
Brilliant Mining Corp, 25%-owner of the Lanfranchi mining joint venture in the Kambalda district of Western Australia, said Sally Malay Mining Ltd, 75%-owner and operator of Lanfranchi, has begun development to gain access to the Winner high-grade orebody.The Winner orebody is estimated to contain probable reserves of 132,369 t at an average grade of 4.10% Ni Full story...Burnstone receives estimate boost
Great Basin Gold Ltd has outlined additional resources at its Burnstone gold project in South Africa Full story...Tiomin intends partial sale of costlier Kwale project
Tiomin Resources Inc has signed a letter of intent with ATW Venture Corp to sell a 50% interest in its Kenyan minerals sands assets, including the much-delayed Kwale project, for US$35 million.Tiomin also said that the Kwale project would now cost a total of US$229 million, US$28 million more than the original estimate Full story...Irish gold update
Galantas Gold Corp, which is developing the Omagh gold mine in Co Tyrone, Ireland (MJ, August 25, 2006, p6), has announced additional drill results from the Elkin and Kearney veins.A 422 m, six-hole, programme on the former has been completed, and drilling is continuing on the Kearney vein Full story...Bonaparte`s offshore benefits
Diamond Fields International Ltd (DFI) has commenced production from the Diaz Prospect 1 (DP1) area on its ML111 diamond-mining licence off shore Luderitz, Namibia (MJ, June 9, 2006, p8).DFI recently moved its mining vessel ‘DF Discoverer’ into the area to take advantage of high diamond grades identified by Perth-based Bonaparte Diamond Mines NL.In an agreement with DFI, Bonaparte can earn a net-revenue interest of 30-86% in mining of any areas of the licence classified as having indicated resources on the basis of Bonaparte’s sampling.The work on DP1 is being undertaking on the basis of a short-term contract, which gives Bonaparte the right to 30% of the proceeds, while contributing 30% of DFI’s mining operating costs, up to a maximum of A$350,000.A full agreement is expected to be signed within a few weeks Full story...Namibian activity
Sydney-based Takoradi Ltd has reported on its 5,000 m drilling programme on the Kuiseb deposit in Namibia.The project is at the southwest end of the Matchless amphibolite belt that hosts the Otjihase and Matchless copper-gold mines near Windhoek.The company completed 24 diamond drill holes (4,000 m) to-date, and reported that “significant new high-grade copper-gold intersections have been located” Full story...FDN bonanza
Toronto-based Aurelian Resources Inc has announced results from seven additional drill holes on the epithermal Fruta Del Norte (FDN) gold-silver deposit on its Condor project in southeastern Ecuador (MJ, October 20, 2006, p8).The results include a 102.5 m intersection (at a depth of 316 m) grading 4.98 g/t Au and 9.9 g/t Ag in hole CP-06-92, and 171.9 m (at 342 m) grading 3.40 g/t Au and 6.2 g/t Ag in CP-06-89.In addition, a “bonanza-grade” banded epithermal vein was intersected in hold CP-06-87, which assayed 75.84 g/t Au over 5.70 m at a depth of 419 m Full story...Moto “strongly disputes” Kasongo claims
Moto Goldmines Ltd (MGL) has rejected claims made by Victor Kasongo, the chief executive of L’Office des Mines d’Or de Kilo-Moto (Okimo), that the company has failed to satisfy criteria set out in joint-venture agreements.The claims were made in letters sent to the company by Mr Kasongo Full story...Uran Czech Plan
Perth-based Uran Ltd proposed a joint venture to expand the state-controlled Rozna underground uranium mine in the Czech Republic this week Full story...Guinea Strike Ends
An 18-day general strike in Guinea ended on January 27, after President Lansana Conte agreed to cede powers to a yet-to-be-named prime minister Full story...EC clears Supplier of Choice
The European Commission has rejected all outstanding complaints brought against the Supplier of Choice (SoC) distribution mechanism used by De Beers’ Diamond Trading Co Full story...Nickel slips on Sudbury wage settlement
Three-months nickel slipped 3% on Thursday to a low of US$35,900/t, as Xstrata plc and unionised workers at the Sudbury nickel operations in Canada reached a last-minute, threeyear labour agreement Full story...Zinifex’s output falls
Total metals production from Melbourne-based Zinifex Ltd, the world’s second-largest zinc producer, fell almost 10% in the six months to December 31, 2006 after operational shutdowns cut output at key operations Full story...China mine deaths
Fifteen miners were killed by an explosion at the Yile coal mine in China’s Guizhou Province on January 28, according to the Xinhua news agency Full story...Rio increases Pebble interest
Rio Tinto is increasing its shareholding in Northern Dynasty Minerals Ltd (NDM) to 19.79% to gain greater exposure to the massive Pebble copper-gold-molybdenum porphyry project in Alaska.The Pebble project hosts the nearsurface Pebble West deposit and the deeper-underground Pebble East deposit Full story...Mirador plan extended
As foreshadowed at the end of last year, Corriente Resources Inc has extended the timetable for development of its Mirador copper project in Ecuador.The Government of Ecuador requested a temporary suspension at Mirador while it negotiated with protestors opposing the development (MJ, December 15, 2006, p10).The company now estimates initial production could begin in mid-2009, compared with the original target of late 2008 Full story...Winter road opens
The winter road that services the Diavik (Rio Tinto 60%, Aber Diamond Corp 40%), Ekati (BHP Billiton) and Jericho (Tahera Diamond Corp) diamond mines and De Beers’ Snap Lake diamond project (as well as other exploration and tourist camps), in Canada’s Northwest Territories and Nunavut Territory opened this week.Initial light loads will be replaced with heavier and more frequent loads as the ice thickens Full story...CBH Resources goes ahead at Panorama
CBH Resources Ltd’s board of directors has approved development of the Panorama zinc-copper project in the Pilbara region of Western Australia.The project is based on the Sulphur Springs deposit, estimated to contain proven and probable reserves totalling 10 Mt at an average grade of 3.7% Zn and 1.5% Cu (MJ, July 21, 2006, p12).The study outlined an open-pit operation producing 1.5 Mt/y of ore over a life of 7.5 years.The ore would be treated using conventional crushing, grinding and differential flotation to produce separate zinc and copper concentrates Full story...Celtic agrees joint venture for Miheevskoye
Celtic Resources Holdings plc has agreed a joint venture with Anime Global Ltd (AGL), a Russian partner, to develop its Miheevskoye copper-gold project in Russia.Celtic regained control of Miheevskoye by re-acquiring Eureka Mining plc, previously spun off from Celtic three years ago (MJ, January 26, p4).Eureka completed a prefeasibility study for the project in the middle of last year (MJ, July 28, 2006, p10), outlining a US$450 million open-pit operation mining 24 Mt/y over a 12- year mine life.Celtic’s plans for the project now include an early start to copper production, exploiting oxide copper mineralisation.Under the terms of the joint-venture agreement, AGL can earn a 50% interest in Miheevskoye by paying Celtic US$10 million in cash and solefunding various stages of the project, for a total contribution of US$16 million.The partners plan to complete a ‘bankable’ feasibility study, including securing all local permits, approvals and licences, by the end of this year Full story...Twangiza boost
Banro Corp has completed a new resource estimate for its Twangiza gold deposit in the Democratic Republic of Congo Full story...Major Chinese coal find
China’s Xinhua news agency said coal deposits containing 319,000 Mt of resources have been outlined in Inner Mongolia.The newly-defined deposits are in addition to previously-known resources of 220,000 Mt, and were found through an exploration programme costing US$357 million, covering a 170,000 km2 area.The programme found five 10,000 Mt deposits in the Xilin Gol area alone Full story...Kalkaroo study begins
Havilah Resources NL has begun a feasibility study to develop its Kalkaroo copper-gold deposit in South Australia, having completed a new resource estimate.Havilah said the new estimate increased resources by 28% from 85 Mt (measured) to 108 Mt (measured and indicated) Full story...Tulsequah Chief feasibility outlines barge transport
Redcorp Ventures Ltd has received a feasibility study to develop its Tulsequah Chief polymetallic project in northwestern British Columbia (BC) Full story...Finance
Oxiana poised to double gold resource with Agincourt buy
Oxiana Ltd’s gold resources are set to double following an agreement to buy fellow ASX-listed Agincourt Resources Ltd in an all-share deal worth A$415 million, which also increased its exposure to uranium exploration Full story...Etruscan Spin-off
Etruscan Resources Inc and Mountain Lake Resources Inc, both listed in Toronto, are pooling their South African diamond assets into a new company, with a separate listing Full story...Lonmin gets Afriore
Lonmin plc, the world’s third-biggest platinum producer, has secured AfriOre Ltd, owner of the Akanani platinum-group metals (PGM) project in South Africa, after AfriOre shareholders approved the US$441 million deal (MJ, November 17, 2006, p19) Full story...Tata bags corus
India’s Tata Steel Ltd has won Corus Group plc for £6.2 billion, by outbidding rival Cia Siderurgica Nacional SA (CSN) of Brazil by £50 million Full story...Phelps continues to break records
The world’s third-largest copper producer, Phelps Dodge Corp, being sold to Freeport McMoRan Copper & Gold Inc, reported record earnings in the December quarter of 2006, thanks to higher metal prices and a final US$353 million breakfee from the company’s failed bid for Inco Full story...Polymetal sets IPO range
Russian silver and gold producer OAO Polymetal wants to raise up to US$836 million when it sells 30% of its issued share capital in its longanti cipated initial public off ering in Moscow and London Full story...Assets go spinning
Three mining companies this week announced various stages of asset spin off s Full story...CIC invests in Teck
China Investment Corp has purchased a 17.2% equity interest in Teck Resources Full story...Armenian investigation
The Armenian Government is investigating Ararat Gold Recovery Co (AGR), now owned by Vedanta Resources plc through the recently acquired Sterlite Gold Ltd (MJ, October 6, 2006, p13) Full story...Impala doubles interim
Impala Platinum Holdings Ltd has more than doubled its profit for the six months to end-December 2006, with full results to be announced on February 15 Full story...Mexican jump
Copper producer Grupo México SA de CV has reported a 50% jump has reported a 50% jump in December quarter net profi t to US$447 million as higher prices compensated for production cutbacks after strikes at two of its mines in Mexico (MJ, August 18, 2006, p3) Full story...bcMETALS UPDATE
Now in its fourth month, the takeover tango for TSX Venture-listed bcMetals Corp continues, with both Imperial Metals Corp and Taseko Mines Corp lodging progressively higher counter bids this week Full story...Goa disposal planned
Japan`s Mitsui & Co is planning to sell its 51% stake in Sesa Goa Ltd, which is India’s largest privately-owned iron-ore exporter Full story...Alcan Boost
Vertically-integrated aluminium giant Alcan Inc has reported a 23% increase in sales to US$6.22 billion for the three months to December 31, 2006 Full story...Gold Fields placing
Gold Fields Ltd has placed 79 million new shares at R113.50 each to raise US$1.2 billion Full story...DRC funding
Vancouver-based Africo Resources Ltd is to raise US$180 million to develop its Kalukundi copper-cobalt project in the Democratic Republic of Congo Full story...BMA Gold calls in the administrators
Infant gold producer BMA Gold Ltd called in the administrators on closing its Twin Hills gold mine in Queensland after it cut resources there by more than half Full story...Rio rides iron ore and uranium on back of record 2006 sales
Rio Tinto is set to expand its iron-ore and uranium portfolios where commodity prices are booming, after posting record profi ts and sales in 2006 Full story...Fifth Column
Bailing out
Peter Flack, one of the group of people credited with revitalising the South African gold-mining industry in the mid-1990s, has left the business, probably forever Full story...Site Search
Log inIssue: Mining Journal: 02 Feb 2007
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