24 Oct 2008
Headlines
BHPB to face EU objections for Rio Tinto bid
BHP Billiton has been told by European Union regulators that its US$69 billion hostile bid for rival Rio Tinto could break antitrust rules dampening widespread speculation that the mega-merger would receive approval. Full story...Cape Lambert wonders at Evraz silence
EVRAZ Group SA’s 19.9% holding in iron-ore explorer Cape Lambert Iron Ore Ltd has been put in doubt by market turmoil according to Cape Lambert which is waiting to hear from the Russian steelmaker. Full story...Asarco calls off sale to Vedanta
COPPER producer Asarco LLC has terminated a US$2.6 billion asset sale to India’s Vedanta Resources plc. Asarco president and chief executive Joseph Lapinsky said Vedanta subsidiary Sterlite Industries had repudiated the contract giving Asarco the right to terminate the sale. Full story...Cafod report slams BHPB Philippines project
BHP Billiton the world’s biggest mining company has come under fresh scrutiny in a new report by the Catholic agency for overseas development (Cafod). Full story...group tipped as Forsys bidder
CANADA’S Namibia-focused uranium junior Forsys Metals Corp is discussing a takeover with private Belgian-owned DRC-based George Forrest International (GFI) industrial and mining conglomerate say informed Namibian sources. Full story...Bargains still to be picked up
LONDON-based copper and gold explorer African Eagle Resources plc will be exhibiting at this year’s Mines and Money investment forum on December 1-3. Full story...Education key to addressing human resources challenge
THE human resources challenge is crucial to the industry today according to Mats Pettersson vice-president of human resources at LKAB Group who chaired a series of presentations on how the industry can work to address the challenge at this year’s Euro Minexpo in Skellefteå Sweden. Full story...Anglo to review project pipeline
ANGLO American plc which this week posted a mixed set of quarterly production results flagged concerns about the impact of “volatility and uncertainty” in global markets on commodity prices. Full story...Production and Markets
Nickel price plunge threatens WA mines
ANALYSTS are divided on their expectations for the price of nickel which has slumped from an average of US$38 023/t in 2007 to a current price of about US$10 155/t. Full story...MPONENG DELAYED
AngloGold Ashanti Ltd has postponed a board decision to deepen its Mponeng mine in South Africa until April owing to technical delays. Full story...DAFENG EXPLOSION
An explosion at the Dafeng coal mine in northwest China has killed 16 people and injured 46 according to state-run Xinhua News Agency. Full story...TIMAH CUTS FORECAST
Indonesia’s PT Timah said it may reduce its annual production by 6.3% from an August forecast as prices for the metal continue to drop. Full story...NORSEMAN GOLD TARGET
Norseman Gold plc has reduced its gold production target to 6 500oz/ mth from 8 000oz/mth after the company failed to secure sufficient ore supplies. Full story...MIBA GEM OUTPUT SLOWS
The Democratic Republic of the Congo’s state-owned diamond mining company La Société Minière de Bakwanga (Miba) has warned that output may drop more than 50% this month partly because of a strike by workers over unpaid wages. Full story...OZ Minerals to scale back Century on zinc price slump
OZ MINERALS Ltd which last month warned it would reduce output at its Golden Grove zinc mine in Western Australia by as much as 40% next year owing to weaker prices has this week revealed it may also suspend production at its Century zinc mine in Queensland after a 25% slump in prices for the metal this month further diminished the company’s profit margins. Full story...Xstrata copper output falls on Chile disruptions
XSTRATA plc said copper production in the three months to September 30 fell 8% to 234 615t from 255 806t a year earlier largely owing to interruptions at the Collahuasi mine in Chile. Production disruptions included maintenance issues at the filter plant an unplanned 14-day shutdown at the semi-autogenous grinding mill and metallurgical difficulties in the concentrator as well as the recovery of lower grades at the Minera Alumbrera mine in Argentina. Full story...JINFENG GOLD DOUBLES
Sino Gold Mining Ltd said output from the Jinfeng gold mine in China more than doubled to a record of 38 250oz in the three months to September 30 from 14 118oz in the same period a year earlier when the mine started commercial production. Full story...DOMINION CLOSES
Uranium One Inc will shut its Dominion mine in South Africa owing to a “continuing” drop in the price of the metal over the past year. Full story...Canadian mines fold as prices fall
A NUMBER of mines in Canada succumbed to the prevailing drop in metals prices this week suspending operations in the hope of a rebound in prices and better economic outlook. Full story...MACARTHUR LIFTS SALES
Macarthur Coal Ltd said sales rose by 39% to 1.09Mt in the three months to September 30 from 777 200t a year earlier as port constraints in Australia eased. Full story...Fresnillo plc is the largest primary silver producer
DE BEERS this week announced that the recent rise in diamond prices “was bound to moderate” amid waning global demand. De Beers in which Anglo American plc holds a 45% interest warned it would reassess output levels in 2009 if the global economy falls into recession. While average prices increased by 16% on growing demand in emerging markets in the year to August they have not increased since De Beers said. Full story...China to shut 2,500 coal mines
CHINA plans to close about 2 500 of its smaller coal mines over the next two years with 1 600 mines to be restructured as part of a campaign to improve safety and clamp down on illegal mines. Full story...Rio Tinto boosts Kitimat smelter capacity with US$300m investment
RIO Tinto has revealed plans to invest an additional US$300 million in the modernisation of the Kitimat aluminium smelter in British Columbia Canada bringing the current project funding total to more than US$500 million. Full story...Exploration & Development
TANZANIAN U ASSAYS
Western Metals Ltd has completed its reverse-circulation drilling programme in Tanzania and reports that it is encouraged by the results. The holes tested targets in the Mtonya corridor in the southwest of the country including the recentlydiscovered Grandfather prospect. The better results are shown in the following table: Full story...ROVINA ASSAYS
Recent diamond-drilling at Carpathian Gold Inc’s Rovina porphyry gold-copper property in central Romania has targeted the Ciresata porphyry one of three on the property. Ciresata was discovered this year and lies about 4 km south of the other Colnic and Rovina porphyries. The better of the latest results are as follows: Full story...BHPB SPEND BHP
Billiton spent US$166 million on minerals exploration during the September quarter this year searching for copper in Australia Argentina Chile and the Democratic Republic of the Congo (DRC) nickel in Australia Russia Colombia and Africa and diamonds in the DRC and Canada. The group also explored for iron ore coal bauxite and manganese in Australia South America Russia and West Africa. In the comparable period of 2007 the group spent US$143 million on exploration. Full story...NACHINGWEA RESULTS
Continental Nickel Ltd has intersected high-grade nickel mineralisation at the joint-venture Nachingwea nickel sulphide property in Tanzania. The property 70%-owned by Continental and 30% by IMX Resources NL is about 400 km south of Dar es Salaam in southwest Tanzania. The better results included: Full story...INAUGURAL RESULTS
Queensland Mining Corp has released its first drill results since listing on the Australian Securities Exchange. Preliminary drilling from its Young Australian copper mine in the Cloncurry district has outlined mineralisation over a strike length of 700m. Infill drilling to build a JORC-compliant resource has been planned. Results include: Full story...DEEPER DRILLING
Adamus Resources Ltd has announced results from recent exploration at the Salman Central/South area part of its Southern Ashanti gold project in Ghana. A significant result of 20m at 4.8g/t Au from 64m at the southern end of the target area suggests mineralisation is open at depth. Results include: Full story...HILLSIDE INTERCEPTS
Rex Minerals Ltd has received results from the first holes completed in a follow-up programme after copper mineralisation was intersected at its Hillside copper project in South Australia. The better of the latest results are shown in the table. Full story...MOOLART WELL RESERVES
Regis Resources Ltd has received a reserve estimate for lateritic gold at its Moolart Well gold project in Western Australia. The estimate by consultant Logikal Projects was commissioned after Regis elected to adopt scraper mining of the softer ore at Moolart Well including both laterite and oxide material. Proven lateritic ore was estimated at 9.4 Mt at 1.41g/t Au and probable lateritic ore was estimated at 600 000t at 0.97g/t Au to a depth of about 20m. Regis planned to start trial mining of laterite Full story...NEW SNOWFIELD ZONE
Silver Standard Resources Inc has discovered a new zone of gold-copper mineralisation at its Snowfield deposit in northern British Columbia. The new zone named Snowfield North is about 700x800m in area and was intersected by several holes the better results from which are shown below: Full story...Asian backing for uranium projects
SCIMITAR Resources Ltd Uranium One Inc and Aura Energy Ltd have secured Asian backing for their uranium projects in Australia Australia and Sweden respectively. Full story...Linear confirms Cobre Grande potential
LINEAR Metals Corp has confirmed the presence of “significant” copper skarn mineralisation on the west flank of the porphyry at its Cobre Grande deposit in Oaxaca Mexico. Full story...JABAL HITS CONTINUE
Citadel Resource Group Ltd has received further results from exploration drilling at the 50%-owned Jabal Sayid polymetallic deposit in Saudi Arabia. The holes intersected the Lode 1 zone the resources at which (11.2Mt at 0.93% Cu and 1.7% Zn indicated and inferred) have not been included in the current feasibility study. The better of the latest results are: Full story...JOSEFINA ASSAYS
Huntmountain Resources Ltd’s drilling programme at La Josefina gold-silver property in Santa Cruz Argentina has intersected further polymetallic mineralisation at the Veta Sur target. The company has an option to earn a 91% interest by completing a positive feasibility study. The better of the recent results are: Full story...DUTWA GROWS
African Eagle Resources plc recentlydiscovered Dutwa lateritic nickel property in Tanzania has “superb” thickness and grade according to the company’s managing director Mark Parker. He said the majority of the holes completed so far are in the eastern half of the 2.5 km-long strike length. The better of the latest results (representing 3m composite samples) are as follows: Full story...Barrick signs up properties in Nevada
BARRICK Gold Corp has signed two joint-venture agreements in Nevada with junior mining companies. Barrick can spend US$30 million on exploration over five years to earn a 60% interest in Midway Gold Corp’s Spring Valley gold project on the Humboldt Trend in Pershing County. In addition it can earn a further 10% interest by spending US$8 million more during the year after it gains its 60% interest. Full story...More projects hit the buffers
THE global finance crisis claimed more projects this week after financings fell victim to the tumult. Full story...Gwalia back in operation
ST BARBARA Ltd poured the first gold at its Leonora operations this week representing the revitalisation of the historic Gwalia gold mine. Full story...China to back Buffalo’s Mt Kare, Australian assets
CHINA Railway Group Ltd (CRG) has signed a memorandum of understanding with Buffalo Gold Ltd to earn an interest in the junior’s Mt Kare gold joint venture in Papua New Guinea its Australian exploration projects and for a direct investment in Buffalo. Full story...Glencar doubles Komana estimate
GLENCAR Mining plc’s Komana gold project in southern Mali is estimated to contain 1.25Moz of gold after an initial resource was defined at the Komana East deposit. Full story...Adanac reviews Ruby Creek
ADANAC Molybdenum Corp has raised operating and capital costs for its planned Ruby Creek molybdenum mine in northern British Columbia. Full story...Ivanhoe, Rio Tinto still waiting
IVANHOE Mines Ltd and Rio Tinto declared themselves ready to “engage in investment agreement negotiations” for the development of the US$3 billion Oyu Tolgoi copper-gold project with the Mongolian government. Ivanhoe said the government has formed a new all-party working group to report on proposed changes to the country’s minerals law by November 15. The company noted the government has said it wanted a new law in place before negotiations on the investment agreement for Oyu Tolgoi could resume. Full story...Conditional approval for Grib deal
DE BEERS’ 64%-owned subsidiary Archangel Diamond Corp has gained conditional approval from Russia’s Federal Anti-Monopoly Service for its agreement to buy a 49.99% interest in Russian company OAO Arkhangelskoe Geologodobychnoe Predpriyatie (AGD 100%-owned by LukOil) holder of the licence for the Grib diamond pipe. Full story...Finance
No merger plans for Kazakhmys
KAZAKHSTAN copper producer Kazakhmys plc has scrapped plans for a potential merger but did not indicate which company was involved in discussions. When a possible business combination was announced in July it was suggested Russia’s Metalloinvest Holding Co was the interested third party however Kazakhmys never confirmed this. Full story...Monarch fallout is widespread
AUSTRALIAN mineral sands miner Matilda Minerals Ltd has called in voluntary administrators after struggling to make a profit from its flagship project. Full story...Coal and power companies to merge
NEMI Northern Energy & Mining Inc and Aviva Corp have entered into a merger implementation agreement to create an international coal and energy company. The combined organisation will hold operating and development stage metallurgical and thermal coal projects in three continents. Full story...Unsolicited offer for Anglogold
SOUTH African-based gold producer AngloGold Ashanti Ltd has cautioned shareholders not to accept a “minitender offer” from Canadian group TRC Capital Corp warning the bid is undervalued and flaunts regulatory requirements. Full story...Waratah hints at other offers besides Palmer
TSX-listed Waratah Coal Inc has rebuffed an approach from Australian mining billionaire Clive Palmer and suggested a superior offer may be forthcoming. Mr Palmer through his private vehicle Mineralogy Pty Ltd holds 14% of Queensland developer Waratah. Mineralogy made an offer of C$1.41 (US$1.13) for each Waratah share to increase its stake to 50.1%. Full story...Broken Hill mergertakes a nasty turn
THE hostile takeover bid for Perilya Ltd by fellow Broken Hill zinc producer CBH Resources Ltd is heating up with the chairmen of both companies engaged in a public slinging match regarding the merits of a merger. Full story...DIAMOND SALE
Botswana diamond producer DiamonEx Ltd is planning to raise A$2 million via a placement of 20 million shares. Full story...COEUR CASH
Silver producer Coeur d’Alene Mines Corp has sold US$50 million in senior secured floating-rate convertible notes to fund continued development of its Palmarejo silver-gold project in Mexico and for general corporate purposes. Full story...POLYUS CONSOLIDATES
OJSC Polyus Gold had consolidated 100% of OJSC Matrosov Mine following a squeeze-out (compulsory acquisition). Full story...Currency hedges batter CITIC Pacific
CITIC Pacific Ltd is estimating losses of HK$15.5 billion (US$2 billion) through its currency hedging contracts as a result of the sliding Australian dollar. The Hong Konglisted shares in the unit of China’s state-owned investment company plummeted by more than 50% after the announcement. Full story...‘Diamond Joe’ back in the fray
JOSEPH Gutnick the high-profile 1980s and 1990s diamond seeker is a principal behind a company that has secured a 10.69% stake in struggling Northern Territory diamond project North Australian Diamonds Ltd (NADL) and is expected to increase its equity and involvement in the company. Full story...DEMERGER DROPPED
The planned spin-off of Aquila Resources Ltd’s exploration assets in southern Africa and Australia has been scrapped due to poor market conditions. Full story...JUPITER TARGETED
Former BHP Billiton executive Brian Gilbertson has launched a reverse takeover for Western Australian iron-ore explorer Jupiter Mines Ltd. Full story...KITSAULT DEBT
Vancouver-based Avanti Mining Inc said it has obtained a US$20 million secured bridge loan for the acquisition of an undivided 100% direct interest in the mineral tenures comprising the former Kitsault molybdenum mine and surrounding mineral tenures located in northern British Columbia from Aluminerie Lauralco Inc to complete a feasibility study and for general corporate purposes. Full story...LAS LAGUNAS FUNDS
EnviroGold Ltd has secured a $US35 million loan from Macquarie Bank for its 70%-owned Las Lagunas gold tailings project in the Dominican Republic. Full story...GEMFIELDS ALTERS OFFER
AIM-listed Gemfields Resources plc another Brian Gilbertson vehicle has made another hostile offer to control TanzaniteOne Ltd (T1). Full story...Fifth Column
A glittering career in diamonds
“He never tried to make himself popular – he just got the job done and history will recognise him as one of the industry’s giants” Full story...Reports
Fund fundamentals: Between rock and a hard place
Mining Journal presents the first in a fortnightly series of interviews with professional investors in resource stocks Full story...Focus
Republic of Guinea
Although Guinea is richly endowed with mineral resources it remains one of the poorest countries in the world Full story...Ghana
The Ghanaian economy demonstrated resilience recording strong growth in the face of energy supply disruptions and rising international crude oil prices in 2007 Full story...Sizing up the industry
This is the first of a series of articles drawn from an important new book on the industry by Phillip Crowson the former chief economist of Rio Tinto Full story...Fund fundamentals: Between Rock and a hard place
Mining Journal presents the first in a fortnightly series of interviews with professional investors in resource stocks Full story...People and Appointments
NAUTILUS RESIGNATION
David Heydon (pictured) has resigned as a non-executive director of oceanfloor explorer Nautilus Minerals Inc. Full story...ACCOUNTANT AT ROCKWELL
Rockwell Diamonds Inc has appointed Desmond Morgan as its new chief financial officer. Mr Morgan a chartered accountant replaces Dominique de la Roche who has resigned to pursue other opportunities. Full story...FORTESCUE BEEFS UP BOARD
Australia’s third-ranked iron-ore producer Fortescue Metals Group Ltd has recruited two highprofile mining executives to its board with Owen Hegarty (pictured top right) and Ian Burston (pictured bottom right) joining as non-executive directors. Full story...URANIUM EXPLORATION CONSIDERATION
The board of Uranium Exploration Australia Ltd has selected a “highly experienced candidate” as its new managing director to replace the outgoing Patrick Mutz. Full story...Look after the pennies…
Phil Halliday talks to Jaime Lomelín chief executive of Fresnillo and Octavio Alvidrez head of the company’s UK office and investor relations Full story...IAMGOLD EXPERTISE
Iamgold Corp has named Elaine Ellingham as the senior vice-president of investor relations and communications. Full story...CONSOLIDATED THOMPSON COO
Consolidated Thompson Iron Mines Ltd will be joined by Howard Bernier as chief operating officer. Metallurgist Mr Bernier has worked in senior management positions at major mining refining and consulting companies during his 37-year career. Full story...BOARD REPRESENTATION
As a result of its purchase of the Rio Tinto mine and arrangements with the MRI Group EMED Mining Public Ltd has appointed MRI chief executive Ashwath Mehra to its board as a non-executive director. Full story...LONRHO APPOINTMENT
Africa-focused Lonrho Mining Ltd held 24.16% by Lonrho plc has appointed Matthew Fitzgerald as a director. Full story...LITHIC RESIGNATION
Geoffrey Johnson has resigned from his post as non-executive director at Lithic Metals and Energy Ltd. Full story...ATHABASCA CHANGES
Kenneth MacNeill has stepped down as chairman and director of Athabasca Potash Inc. Full story...Journal Team Diary
Small world
Sometimes the world is smaller than you think. Sitting in Arlanda airport on the way to Euro MINExpo a Mining Journal reporter got talking to a fellow Brit. Full story...Where is Cynthia?
It’s not often that you get to see all the mining bigwigs in one room particularly when the room only contains around 150 people. Full story...‘Ugly girls’ answer the call
Recall the mayor of Australian outback mining town Mt Isa who called for less-attractive women to move to town and take advantage of the surfeit of eligible blokes? Full story...Site Search
Log inIssue: 24 Oct 2008
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