31 Oct 2008
Headlines
Tougher times forecast for mining industry in 2009
Even tougher conditions for mining companies in 2009 were forecast in reports by Ernst & Young and Credit Suisse this week. The analyses predict companies will struggle to fund development and expansion plans and many juniors won’t survive the credit crisis. Full story...Gécamines negotiations unresolved with Freeport and First Quantum
Gécamines the Democratic Republic of the Congo’s (DRC) state copper company said it has yet to resolve contract negotiations with Freeport- McMoRan Copper & Gold Inc and First Quantum Minerals Ltd despite finalising agreements on 28 other contracts in the copper- and cobalt-rich country. Full story...Treasurer declares BHPB and Rio Tinto railways open
FOLLOWING a lengthy legal battle over the exclusive rights to hundreds of kilometres of railway across the west Australian desert Australian Treasurer Wayne Swan this week declared that BHP Billiton and Rio Tinto must share their prized iron-ore haulage lines in the Pilbara region with third parties. Full story...Ferrexpo departures
THE chief executive and business development director of Ukraine iron-ore producer Ferrexpo plc have resigned unhappy with the new strategy of the former FTSE 100 company. The company has suffered from reduced demand for its iron-ore pellets and in recent weeks some customers have reduced their deliveries for the December quarter. Full story...Behre Dolbear confidence
MINERALS industry consultant Behre Dolbear is an exhibitor at this year’s Mines and Money and its chief executive Rob Hansen is confident the growth of the BRIC nations will “pull the mining industry back up onto its feet” despite the current negative sentiment towards investment in the mining sector. He said the attitude was a result of turmoil across the whole economy. “ Full story...Bolivia offers US$5m to zinc miners
BOLIVIAN President Evo Morales has declared a state of emergency in the country’s small-scale zinc mining industry and has pledged an emergency fund of US$5 million to support the industry in the wake of the falling global zinc price. Full story...Chinese mine disasters
Two people were killed and 55 others remain trapped following three separate accidents at Chinese coal mines this week. One person was killed and 29 others are believed to be trapped after a gas explosion at the Yaotou mine in northwest China’s Shaanxi Province on Wednesday according to China Daily. Seven miners escaped but officials said they expect the death toll to rise as the mine shaft caved in the mine flooded and its ventilation system is not working China Daily reported. Full story...Production and Markets
JUNIORS DIG IN
Australia’s junior producers prepared to ride out the volatile market this week, amid slowing global growth and rising inventories Full story...Newcrest to axe jobs at Telfer
NEWCREST Mining Ltd Australia’s largest gold producer intends to eliminate 400 jobs from its Telfer gold mine in Western Australia by the end of the year to reduce costs. Full story...First Quantum suspends Bwana Mkubwa
FIRST Quantum Minerals Ltd has suspended copper production at its Bwana Mkubwa copper-processing plant in Zambia owing to a shortage of copper ore at the facility. “Bwana Mkubwa has exhausted all known sources of suitable (and) economically viable ore within Zambia ” First Quantum said. Full story...KAZAKHMYS OUTPUT
Kazakhmys plc warned it may reduce copper output next year owing to “a challenging and volatile environment” Full story...CENTENNIAL COAL DROP
Centennial Coal Co, Australia’s fourth-largest coal producer, said sales in the three months to September 30 fell 27% owing to asset sales and a changeover to longwall mining operations from different coal seams Full story...DOE RUN FURNACE
Doe Run Resources Corp plans to reduce output after prices for the metal dropped more than 30% since July Full story...MARIKANA SHELVED
Aquarius Platinum Ltd has suspended production at its number 2 shaft of its Marikana platinum mine in South Africa, after platinum prices fell 20% to an average US$1,549/ oz in the three months ended September 30 from a year earlier Full story...CERRO VERDE STRIKE
Workers at Freeport-McMoRan Copper & Gold Inc’s Cerro Verde copper mine in southern Peru are preparing to strike from November 3 to pressure the company for an 11% wage increase, having rejected an earlier offer for a 3% rise Full story...ERAMET SALES
French nickel producer Eramet SA has reduced its 2008 nickel production forecast on weakening demand, with output and deliveries to drop around 13% on year to 52,000t Full story...LONMIN SLOWS
Lonmin plc said full-year platinum output fell 16% after safety stoppages curbed production and forecast that output levels would be similar this financial year Full story...Metals price slump pressures mines
IN WHAT is emerging as a common theme in the industry the impact of plunging metals prices was this week reflected by a string of mining companies that revealed plans to scale back production delay project development and halt spending until more favourable economic conditions prevail. Full story...Chinese copper imports slide on fading demand
China the world’s largest copper consumer may reduce imports of the metal for a second year in 2009 as supply outpaces demand according to China Minmetals Nonferrous Metals Co the country’s biggest metals trader. Full story...Rusal boosts Sayanogorsk smelter with US$25m refurbishment
UC RUSAL has launched a new anode-baking furnace at the Sayanogorsk aluminium smelter in the Republic of Khakasia following a US$25 million plant modernisation project. Full story...Antofagasta settles on Mauro tussle
ANTOFAGASTA plc has reached a resolution to the legal issues surrounding the US$600 million Mauro tailings dam at its Los Pelambres copper mine in Chile that will allow its operation to start in November this year. Full story...Minor metals fare relatively well
CONSIDERING the world financial crisis has badly affected many commodities, including oil, base metals and particularly ferro-alloys, minor metals held up pretty well during October Full story...Red Dog shipping season cut short
TECK Cominco Ltd has declared force majeure on sales from its Red Dog zinc-lead mine in Alaska after severe Arctic weather conditions forced a reduction in sales. Full story...LGL advances on record gold output
LIHIR Gold Ltd (LGL) achieved record production levels in the three months to September 30 following expansions at its Papua New Guinea mine and the acquisition of new mines that provided additional output in Australia and Ivory Coast. Full story...Exploration & Development
AURIZON DISCOVERY
Aurizon Mines Ltd has announced the discovery of a new zone of mineralisation at its Casa Berardi gold property in northwestern Quebec Full story...FRONTEER INTERCEPTS
Fronteer Development Group Inc has announced drilling results from the recent drilling programme at its Long Canyon gold project in Nevada Full story...ANACONDA RESULTS
Anaconda Mining Inc has reported drilling results from its Inca de Oro Sur joint venture gold project in northern Chile Full story...‘Breakthrough’ deal
A ‘BREAKTHROUGH’ agreement on alignment of Russian and international resources reporting standards has been signed by Russia’s State Commission on Mineral Reserves (GKZ) and the Committee for Mineral Reserves and International Reporting Standards (CRIRSCO). Full story...Xstrata begins scoping at Bracemac-Mcleod
DONNER Metals Ltd reported that Xstrata plc has started a scoping study for development of the Bracemac- Mcleod polymetallic property part of an alliance between the companies in Matagami Quebec as further drilling results expanded the known mineralisation. Full story...Renard scoping positive for Stornoway
STORNOWAY Diamond Corp has announced that it could develop the Renard diamond project at its Foxtrot property in north-central Quebec at a capital cost of C$308 million (US$253.6 million) after it received a positive scoping study of the project from consultant AMEC and Agnico-Eagle Mines Ltd. Full story...SHERWOOD DRILLING
Sherwood Copper Corp has announced drilling results from recent drilling at its Kutcho copper project in northwest British Columbia Full story...STRATEX DRILLING
Turkey-focused Stratex International plc has reported the initial drilling results from its Öksüt gold project in Central Anatolia Full story...Uranium studies boost projects
SCOPING studies released for uranium projects in Western Australia and Botswana have indicated that the projects can proceed to the feasibility stage. Full story...KANYIKA RESULTS
Globe Metals & Mining Ltd has released drilling results from the infill drilling programme at its Kanyika niobium, tantalum and uranium project in central Malawi Full story...WOLF INTERCEPTS
Wolf Minerals Ltd has announced drilling results from its Hemerdon Ball tungsten and tin project in Devon, United Kingdom Full story...Cerro Negro go-ahead for full feasibility
ANDEAN Resources Ltd will move its Cerro Negro gold-silver project in Santa Cruz province Argentina to a ‘bankable’ feasibility study with work starting immediately after receiving a positive prefeasibility study for the project. Full story...MAGMA DRILLING
Magma Metals Ltd has announced drilling results from the drilling programme at the Current Lake intrusive complex deposit at its Thunder Bay North project in Ontario, Canada Full story...SPRINGER TUNGSTEN
Golden Predator Mines Inc has reported that it has intersected further tungsten mineralisation at its Springer tungsten project in Nevada Full story...CITADEL DRILLING
Citadel Resources Group Ltd has released drilling results from its 100%- owned Shayban gold project in Saudi Arabia Full story...Costs drop at Çöpler
ANATOLIA Minerals Development Ltd has announced that estimated capital and operating costs at its wholly-owned Çöpler gold project in east-central Turkey are anticipated to fall by 10-15% on previous estimates Full story...DIAMOND RECOVERY
Shore Gold Inc has reported the recovery of the largest diamond to date from the Orion South kimberlite at its Fort à La Corne joint venture in Saskatchewan, Canada Full story...Allied increases Sorowar resources
ALLIED Gold Ltd has increased the resource estimate at the Sorowar deposit part of its wholly-owned Simberi gold project on the New Ireland province island chain in Papua New Guinea. Full story...Sino Gold gets second mine into production
SINO Gold Mining Ltd has declared that it will enter 2009 with “two long-life low-cost operations” after announcing it had achieved the first gold pour at its White Mountain gold project in Jilin Province China. Full story...Chinese buy Cardero’s Pampa de Pongo
CARDERO Resources Corp has agreed a US$200 million deal to sell its Pampa de Pongo magnetite iron-ore deposit in Peru to Chinese company Nanjinzhao Group Co. Full story...Finance
BEE INVESTMENT
Aquarius Platinum Ltd has completed the final phase of its South African Black Economic Empowerment (BEE) transaction with the Savannah Consortium (SavCon) Full story...HEDGES DROPPED
Crowflight Minerals Inc has restructured its C$55 million (US$44 million) debt and will close out most of its nickel hedging arrangements to raise C$63 million Full story...Norilsk buy back in doubt
AN OVERSUBSCRIBED share buy-back by OAO Norilsk Nickel has been suspended by a Siberian arbitration court. Full story...MECHEL/MINMETALS JV
Russian coal and steel company OAO Mechel has signed an agreement with China Minmetals Corp to cooperate on infrastructure, steel and mining projects Full story...FUNDING DELAYED
Mirabela Nickel Ltd will have a two-month delay in completing the syndication of the reduced US$240 million debt facility underwritten by Credit Suisse and Barclays for the Santa Rita nickel project in Brazil Full story...Chalco has tough quarter, Vale wary of economic gloom
ALUMINUM Corp of China Ltd (Chalco) suffered a 92% drop in earnings for the September quarter. Full story...Cape Lambert to use sale proceeds to invest in emerging iron-ore plays
EXPLORATION company Cape Lambert Iron Ore Ltd cashed-up from the sale of its flagship project plans to invest up to US$10 million in junior iron-ore explorers. Full story...TanzaniteOne share issue angers Gemfields
GEMFIELDS Resources plc has attacked its takeover target TanzaniteOne Ltd for issuing shares claiming it is an underhanded way to fend off the unwanted bid. Full story...Midwest, Fortescue’s phenomenal rise
THE market capitalisation of iron-ore developer Midwest Corp Ltd rose a staggering 1 192 669% in the five years to June 30 2008 making it the biggest increase of any Western Australia-domiciled stock on the Australian Securities Exchange. Full story...Troubling times won’t deter Minara fundraising
WESTERN Australian nickel producer Minara Resources Ltd has launched an ambitious A$210 million (US$136 million) capital-raising programme. Full story...Battle for Noront over
NORONT Resources Ltd has resolved a proxy battle with key shareholder Rosseau Asset Management Ltd with chief executive Richard Nemis standing down and the nomination of a new board. Full story...BUY BACK INCREASED
The largest coal producer in the US, Peabody Energy Corp, has doubled its share buy-back programme to about US$1 billion after an 11-fold increase in earnings for the September quarter Full story...PRICE REDUCED
OAO Severstal will pay a reduced price for remaining shares in its acquisition of US coal producer PBS Coals Ltd Full story...Rising costs for world’s big gold companies
SOME of the largest gold producers had tough September quarters with rising costs a common concern. Full story...EXTENDED OFFER
Private firm Mineralogy Pty Ltd has amended its offer for Queensland coal developer Waratah Coal Inc Full story...TAKEOVER CLOSING
Cliffs Natural Resources Inc will purchase the remaining stock in Portman Ltd via on-market purchases at prices below its A$21.50/share (US$13.50/share) takeover offer Full story...Fifth Column
Battening down the hatches
BOB YOUNG with nearly 40 years’ experience in exploration behind him – half of it spent managing junior companies – has of course experienced sudden and severe downturns in the mining industry’s fortunes before. Full story...Focus
Problems for Argentine mining
The global stock market and metal-price in September and October having a rapid effect on the country’s sector Full story...Drivers of demand
This is the second of a series of articles drawn from an important new book on the industry Phillip Crowson the former chief economist of Rio Tinto Full story...As low as it goes
Confidence grows that the nickel market has bottomed Full story...Problems for Argentine mining
The global stock market and metal-price meltdown in September and October is having a rapid effect on the country’s exploration sector Full story...People and Appointments
MANAGING DIRECTOR NAMED
Uranium Exploration Australia Ltd has named Russell Penney as managing director Full story...BIG DEPARTURE
Rio Tinto chairman Paul Skinner will not stand for another term when his current tenure expires in December 2009 Full story...TANZANITEONE CHANGES
TanzaniteOne Ltd has appointed Ami Mpungwe as chairman of the board, following the resignation of Michael Adams Full story...DIRECTOR APPOINTED
Rambler Metals and Mining plc has appointed John Thomson to its board Full story...CHAIRMAN ANNOUNCEMENT
The board or directors of WGI Heavy Minerals Inc has elected Gordon Fear as chairman Full story...NORILSK MANAGEMENT
The management board of OAO Norilsk Nickel has been joined by Oleg Pivovarchuk as first deputy general director Full story...EXPLORATION EXPERTISE
Alaska and Arizona explorer Millrock Resources Inc has appointed Charles Hawley as a director Full story...CONSULTANCY RECRUITMENT
Wardell Armstrong International Ltd, the Truro-based independent engineering consultancy that specialises in minerals, energy and environmental development and management, has recruited Martin Ackerley as associate director to head up its seven-person environmental team Full story...DIAMOND RECRUITS
Kopane Diamond Developments plc (formerly European Diamonds plc) has made two recruitments to its senior management team, to oversee operations at its Liqhobong mine in Lesotho and to manage a ‘definitive’ feasibility study at the Main Pipe project Full story...Journal Team Diary
A piece of cake
Mining is never far from a Mining Journal reporter’s reporter’s heart, so when reporter Katherine Dixon married Bloomsbury Minerals Economics Ltd’s Christopher Welch last month, the day wouldn’t have been complete without some reference to the industry Full story...Female affair
A hot topic of conversation over lunch at this year’s Euro Minexpo was the battle of the sexes, following a presentation at the conference by Lena Abrahamsson, professor at the department of human sciences at Luleå University Full story...Honour and recognition
Tom Cushman has been presented with a Knight of the National Order honour from the Madagascar Minister of Energy and Mines (pictured below) Full story...Issue: 31 Oct 2008
PROFESSIONAL PLACEMENTS
General Manager Processing - OK Tedi Mining
Ok Tedi Mining Limited operates a world class open pit mine and copper concentrator located in the Western Province of PNG.
Chief Operating Officer - TiZir Limited
Key Leadership Role with a $600M Joint Venture Project in West Africa, competitive salary package on offer with Residential and FIFO options.
Chief Executive Officer - Tin International Ltd
Tin International Ltd. (“TIN”) is in the process of becoming an ASX listed tin development company with assets located in Germany.
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