Australia/New Caledonia/Papua New Guinea Mining – Page 122

Rio Tinto unveils its Processing Centre of Excellence – by Cole Latimer (Mining Australia – March 13, 2014)

March 14, 2014

http://www.miningaustralia.com.au/home

Rio Tinto has unveiled the latest component of its Mine of the Future program – the Processing Centre of Excellence.

Based in Brisbane, Rio says this “is a world first, state-of-the-art facility that ehances monitoring and operational performance by examining in real time processing data from several Rio Tinto operations spread across the globe”.

Known by some colloquially as ‘the excellent centre for excellent excellence’, it will be operated by a team in Brisbane, that will provide processing solutions and initiatives to mine sites in Mongolia (at Oyu Tolgoi), the US (at Kennecott), and across Australia (at five different sites).

A massive interactive screen while show, and analyse, technical data in real time, “allowing processing improvements ot be immediately introduced and operational performance to be optimised,” the miner said in a statement.

Early trials have already led to improvements such as adjusting the flotation process for gold and copper recovery at Oyu Tolgoi in Mongolia.

BHP upbeat on iron ore growth – by Mitchell Neems (Business Spectator – March 11, 2014)

March 12, 2014

http://www.businessspectator.com.au/

As the fall in the iron ore price continues to send shockwaves through global markets, mining giant BHP Billiton says its focus on productivity is starting to deliver value to its iron ore business and it expects demand for steel to grow over the next decade.

Speaking at the AJM Global Iron Ore and Steel Forecast conference in Perth, BHP’s iron ore president Jimmy Wilson said the group remains confident global demand for iron ore will continue to grow, though likely at a more moderate rate, driven by urbanisation and industrialisation.

“Our market outlook is for continued strong steel demand growth over the next 10 years,” he said. “Our view that Chinese crude steel production is expected to peak at 1.1 billion tonnes, around 2025, is unchanged.” Recent world iron ore growth had been driven by Australian production, he said.

Mr Wilson added that demand over the next 10 years would be maintained as 1.2 billion people globally moved to urban areas, including 240 million people in China.

Andrew ‘Twiggy’ Forrest takes billion-dollar hit as iron ore tumbles – by James Thomson (Sydney Morning Herald – March 10, 2014)

March 10, 2014

http://www.smh.com.au/

Andrew ‘Twiggy’ Forrest knows better than most how movements in commodity prices can cause havoc with your bank balance. With iron ore prices falling to its lowest in close to a year, shares in Fortescue Metals Group tumbled 8.38 per cent to $4.98 in initial trade on Monday morning, wiping around $500 million off the value of Forrest’s stake.

Since February 21, when FMG’s shares broke through $6 for the first time since early 2012, the stock has dropped by almost 15 per cent, broadly in line with the fall in the iron ore price. That drop has wiped around $1.3 billion off the value of Forrest’s stake in a matter of 11 trading days. His stake is now worth $5.1 billion.

Calculating the impact of the iron ore price movement on other iron ore moguls such as Gina Rinehart and Angela Bennett isn’t as transparent, although given they both rely on royalties paid by Rio Tinto – which mines tenements owned by their fathers, Lang Hancock and Peter Wright – the share price of that company can be seen as a very rough proxy.

In morning trade, Rio shares dipped 4.23 per cent to $62.19. Since February 21, Rio’s stock is down 11.4 per cent. BHP Billiton shares lost 3.15 per cent this morning, to $36.53. The stock is down 6.7 per cent since February 21.

BHP workers brace for uncertainty – by Neale Prior (The West Australian – March 10, 2014)

March 10, 2014

http://au.news.yahoo.com/thewest/

Nickel West workers are bracing for a year of uncertainty as mining giant BHP Billiton embarks on a formal campaign to sell the underperforming mining and processing wing.

After slashing the book value of the operation by $US1.6 billion, BHP is believed to have appointed international investment bank Goldman Sachs to find a buyer.

The Goldman Sachs appointment leaked over the weekend via The Australian Financial Review after speculation building out of London last week that BHP was offloading its WA poor relation.

The nickel arm has been starved of capital and sits outside BHP’s favoured areas of iron ore, coal, petroleum and copper.

The sale push puts the jobs of up to 2000 employees and contractors in play and fans fears that BHP could close all or part of the division if it cannot reach acceptable sales terms.

UPDATE 1-Australia’s Rinehart nears $7.8 bln mine finance deal – sources – by Sharon Klyne, Joyce Lee and Prakash Chakravarti (Reuters India – February 26, 2014)

February 26, 2014

http://in.reuters.com/

Feb 26 (Reuters) – Australian billionaire Gina Rinehart’s Roy Hill iron ore project is close to finalising a $7.8 billion financing deal, sources said, a vital step towards an end-2015 start for the giant mine in Western Australia’s iron-rich Pilbara district.

The 55-million tonnes-a-year project, which would make Roy Hill Australia’s fourth-largest iron ore producer, will add to hefty new supplies coming on line from Rio Tinto, BHP Billiton and Fortescue Metals Group.

It could also add to the wealth of mining magnate Rinehart, already Australia’s richest person with a $17.7 billion fortune, according to Forbes. Roy Hill is likely, however, to be the last new project of this scale to get off the ground, given worries over shaky underlying demand for iron ore in China, the world’s biggest consumer of the steel-making raw material.

Other miners are rethinking expansion and cutting costs as iron ore prices drop. At just below $120 a tonne .IO62-CNI=SI on Wednesday, prices have fallen more than 11 percent so far this year and are down almost 40 percent from a record high of $200 reached in February 2011.

BHP Billiton CEO Andrew Mackenzie: Economy is sound – by Peter Ker (The Age – February 24, 2014)

February 24, 2014

http://www.theage.com.au/

BHP Billiton boss Andrew Mackenzie says he is optimistic about Australia’s economic prospects, despite the departure of the car makers and last week’s closure of the Alcoa smelter at Point Henry.

But Mr Mackenzie told Channel Nine’s Financial Review Sunday program the swath of job losses in manufacturing highlighted the importance of the nation uniting behind a single productivity agenda.

Mr Mackenzie has been particularly upbeat about the future of the Australian economy since taking over as chief executive in May, and his mantra that Australia still has ”everything to play for” has often been at odds with the gloomy prognoses of federal governments.

Mr Mackenzie has regularly urged Australia to help itself by reforming industrial relations, taxes and its productivity performance, and said the high-profile corporate closures were a reminder of that.

”To be pro-Australia for a moment I wish they hadn’t happened … but I have a global perspective, I see what happens elsewhere in the world and I still think Australia has an awful lot going for it,” he said.

Australians to dig Gold Fields out of trouble at mechanised mine – by Ed Stoddard (Reuters India – February 19, 2014)

February 19, 2014

http://in.reuters.com/

WESTONARIA, South Africa, Feb 19 (Reuters) – Down under the South African earth, Australian accents are leading a drive to unlock the wealth one of the world’s largest gold reserves.

Gold Fields has brought in a crack Australian engineering team to help overcome one of its most daunting challenges: ramping up production on its mechanised South Deep mine, its last and troublesome South African asset.

“With the improved operating skills that we’ll get, particularly with the Australian team, we think we can make it,” chief executive Nick Holland told journalists and analysts on Tuesday during a visit to the mine just west of Johannesburg.

He was referring to the South Deep target of full production of 700,000 ounces a year, which has been a moving one to the annoyance of investors, shifting from 2014 under previous owners to 2016 and now the end of 2017.

South Deep descends to three kms (almost two miles) and South Africa, with the world’s deepest mines, has over a century of experience when it comes to extracting ore far below the surface with a large, unskilled workforce.

BHP mulled leaving London and dropping dual listing – by James Chessell (Sydney Morning Herald – February 17, 2014)

February 18, 2014

http://www.smh.com.au/

Has BHP Billiton been reconsidering its dual listing on the Australian and London stock exchanges?

The official line from the world’s largest diversified resources is that no serious work has been done on collapsing the dual-listed company structure. A BHP spokewoman said: “We think this structure has worked and continues to serve shareholders well”.

Yet there are those who remain convinced that in the second half of 2013 a team was assembled to look simplifying parts of the vast $121 billion business, including the dual listings.

The project was known as “unification”, according to multiple sources, and later focused on simplifying internal processes, financial management and legal entity structures. It had the blessing of chief executive Andrew Mackenzie, who assumed the top job in May and will hand down what is expected to be a $US6.9 billion interim profit on Tuesday.

Everyone agrees that it was eventually decided that it would be too difficult to collapse the dual-listed structure.

Bickering hides our resource failure – by Ian Verrender (Australian Broadcasting Corporation – February 17, 2014)

February 18, 2014

http://www.abc.net.au/news/thedrum/

Both sides of politics have played a direct role in the demise of Australian industry and have wasted the proceeds of the resources boom, writes Ian Verrender.

What a spectacle: The self-righteous fury and finger pointing on both sides of the political spectrum that has greeted the long, slow and ultimately unavoidable death of the domestic auto industry.

Who is to blame? Who cares? The simple fact is that the hollowing out of the Australian economy is gathering pace while our bickering leaders thrash about with no plan on how to arrest the decline of manufacturing and precious little understanding of why it has occurred.

Of even more concern, neither side will acknowledge the direct role they have played in the demise of Australian industry. Nor will they admit to squandering the proceeds of the resources boom, cynically opting to enhance their electoral prospects by delivering instant gratification to taxpayers rather than formulate any long-term plan to enrich the nation.

COLUMN-Australia going back to coal has lesson on U.S. LNG exports – by Clyde Russell (Reuters India – February 10, 2014)

February 10, 2014

http://in.reuters.com/

Clyde Russell is a Reuters market analyst. The views expressed are his own.

LAUNCESTON, Australia, Feb 10 (Reuters) – The decision by an Australian power company to mothball a natural-gas plant and restart two coal-fired units seems wrong on many levels, but strangely, it has implications for U.S. liquefied gas exports.

Stanwell Power Corp, an electricity producer owned by Queensland state, said last week it would shut for three years its 385-megawatt (MW) Swanbank E power station, west of the state capital Brisbane, while restarting two coal units with a combined 350-MW capacity at its Tarong plant.

The decision was framed in terms of economics, with the company saying it made more sense to sell the gas to other users than to use it to generate power, and that returning to coal would improve its competitiveness.

This switch back to coal power in Queensland brings together several issues that show the difficulty of implementing policies designed to combat climate change, while keeping industry competitive and encouraging lucrative energy exports in the form of liquefied natural gas (LNG).

Australia’s Super Pit gold mine gets 8-year lifeline (Reuters U.S. – February 5, 2014)

February 5, 2014

http://www.reuters.com/

SYDNEY – Feb 5 (Reuters) – Australia’s giant Super Pit gold mine was given an eight-year extension by its operator on Wednesday, delaying its closure until 2029 and allaying concerns weakening bullion prices would lead to an early shutdown.

Actual mining of gold-bearing ore will cease in around five years at what was until recently Australia’s biggest gold mine, though processing of ores already dug up and stockpiled has been extended from 2021 to 2029, according to the operator.

Kalgoorlie Consolidated Gold Mines (KCGM), which operates the Super Pit for 50-50 partners Barrick Gold and Newmont Mining, last year laid off staff as it ran cost reviews in response to falling gold prices.

Australia’s gold mining industry – the world’s second-biggest behind China – has borne the brunt of widespread job losses in mining across the nation as companies attempt to rein in costs.

By moving to process ores containing lower grades of gold, deemed mine reserves, the Super Pit will be able to keep up production for a longer period, according to KCGM.

Low-cost production key for gold – by Barry Fitzgerald (The Australian – February 4, 2014)

February 4, 2014

http://www.theaustralian.com.au/business

IT stands to reason that in the mining world, the best defence against commodity price weakness is to be the lowest-cost producer. That goes doubly for the gold sector after last year’s price collapse.All that has panned out for those investors who responded to the massive shakedown in the gold price and equity values last year for gold producers not by fleeing altogether, but by seeking safe harbour in the lowest-cost producers.

They have been doing very nicely, thank you very much. Australia’s lowest-cost (listed) gold producer, Doray Minerals (DRM), is a case in point. Its cash costs are the lowest in the local industry if Newcrest’s Cadia operation, which gets the benefit of a copper credit, is ignored.

It’s hard to believe now but Doray got as low as 35c a share last July when the shakedown for gold stocks was in full swing. Realistically, some of that weakness was due to the fact that the group’s new Andy Well operation, north of Meekatharra in Western Australia, had yet to pour its first gold, meaning it had yet to prove itself.

Andrew Forrest takes fight to Nintendo – by John Daffe (Herald Sun – February 4, 2014)

February 4, 2014

http://www.heraldsun.com.au/

IT’S the battle that pits one of Australia’s richest men against one of the world’s biggest video game makers. And it’s game on.

Mining billionaire and philanthropist Andrew Forrest has set his sights on Nintendo, hoping to force the Japanese giant to beef up measures ensuring its products contain no “conflict minerals”.

The name refers to minerals – commonly tin, tantalum, tungsten, and gold – that are heavily mined in and around the Democratic Republic of Congo using forced labour, debt bondage and child slavery.

Walk Free, the anti-slavery group founded by Mr Forrest, is stepping up its campaign against Nintendo, which it says is yet to take concrete steps to guarantee that the microprocessors powering its consoles are free from the minerals.

The group started an email campaign encouraging people to quiz Nintendo chiefs about their conflict minerals policy last year. It has launched a new push after last month’s decision by Intel, the world’s largest semiconductor chip maker, to guarantee its microprocessors are conflict mineral free.

Great Barrier Reef Sediment Dump Approved For One Of World’s Most Fragile Ecosystems – by Kristen Gelineau (Huffington Post/Associated Press – January 31, 2014)

February 3, 2014

http://www.huffingtonpost.ca/

SYDNEY (AP) — The government agency that oversees Australia’s Great Barrier Reef on Friday approved a plan to dump vast swathes of sediment on the reef as part of a major coal port expansion — a decision that environmentalists say will endanger one of the world’s most fragile ecosystems.

The federal government in December approved the expansion of the Abbot Point coal port in northern Queensland, which requires a massive dredging operation to make way for ships entering and exiting the port. About 3 million cubic meters (106 million cubic feet) of dredged mud will be dumped within the marine park under the plan.

Environment Minister Greg Hunt has vowed that “some of the strictest conditions in Australian history” will be in place to protect the reef from harm, including water quality measures and safeguards for the reef’s plants and animals.

But outraged conservationists say the already fragile reef will be gravely threatened by the dredging, which will occur over a 184-hectare (455-acre) area. Apart from the risk that the sediment will smother coral and seagrass, the increased shipping traffic will boost the risk of accidents, such as oil spills and collisions with delicate coral beds, environment groups argue.