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Australia/New Caledonia/Papua New Guinea Mining

The Business Case For [Aboriginal]Respect: [Australia’s] Pluton Resources – by David Hicks (The Global Commodities Report – October, 2011)

Published by New Vanguard Media, The Global Commodities Report is a digital magazine about the benefits of resource business.

With an innovative zero-impact exploration program and a partnership with the indigenous Mayala People, Australia’s Pluton Resources landed both a prestigious Golden Gecko environmental award and an iron ore mining agreement where others had failed: on an uninhabited, culturally significant, island off the northwest Australian coast.

Picture a miner out in a boat fishing off the northwest coast of Australia in the Kimberley region, scanning the iron-red shoreline of uninhabited Irvine Island, knowing that historic mistrust of the mining industry keeps its resources out of reach, and wondering to himself, “How can we make this work?”

Pluton Resources Limited Managing Director, Tony Schoer, had already worked on two nearby mining projects. “I knew this area well because I had worked on Koolan Island in the 1980’s and I was the joint venture representative for Cockatoo Island, so I knew of Irvine Island. We used to go fishing close by and you can see iron concentrations in the cliffs.”

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Africa provides a rich seam for resources sector – by Kevin Rudd ( The Australian – October 24, 2011)

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

Kevin Rudd is Australian Minister for Foreign Affairs

AFRICA is starting to surprise us. We have known for some time that the continent is changing. After the “lost decade” of the 1980s, many African governments have been democratising and liberalising their economies.

But when we find that, today, six of the 10 fastest growing economies in the world are from Africa, it’s worth taking a much closer look.

When we do, we see not only Africa’s growth, but the remarkable transformation of Australian business in Africa, particularly in the mining sector. Rewind 20 years, and the involvement of Australian resource companies in Africa was almost non-existent.

Now, about 40 per cent of all Australian overseas mining projects are in Africa. At least 230 Australian companies are active in the resource sector on the African continent. Between them, they are pursuing 650 individual projects in 42 countries. Their total investment is estimated at a whopping $24 billion.

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Iron ore the latest commodity to slide – by Brenda Bouw (Globe and Mail – October 21, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Iron ore was the one commodity left largely unscathed in the recent market rout, until now. The price of the key industrial commodity, which is used to make steel, has slumped in recent weeks and is expected to keep dropping as demand falls on a weakening Chinese economy and fallout from the European debt crisis.

Steel mills have been cutting iron ore purchases as they curb production, while major iron ore producers such as BHP Billiton Ltd. and Rio Tinto PLC move forward with plans to ramp up output of the mineral.

The combination of lower demand and increased supply is putting pressure on iron ore prices, which had held steady even as other key industrial metals such as copper and aluminum were in freefall.

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NEWS RELEASE: Australian-based Mining IQ puts RepublicOfMining.com on Top 10 Mining Blog list

News Release

October 13, 2011

www.republicofmining.com

Toronto – Australian-based Mining IQ, a mining guide and international learning and communications portal, has put RepublicOfMining.com on its list of Top 10 Mining Blogs, one of only two Canadian sites to be included.

Mining IQ says, “This blog [RepublicOfMining.com] aims to build awareness among the media, the general public and political decision makers about the economic and social benefits of sustainable mining practices in the 21st Century. It has a really admirable mission statement and it rings true with the content on the site.”

RepublicOfMining owner/blogger Stan Sudol says, “My Blog has been on the Web for almost four years and I am incredibly honoured to be recognized half-way around the world by Australian-based Mining IQ, located in one of the great mining nations on the planet. It shows the enormous global impact that Blogs have in their ability to communicate important and balanced information about a much maligned industry.”

Mining IQ continues, “We especially like the variety of categories available on the site with commentary from aboriginal mining to mining education and from women in mining through to green mining. Stan Sudol has hit the nail on the head with his enlightened approach.”

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Rich in Land, [Australian] Aborigines Split on How to Use It – by Norimitsu Onishi (New York Times – February 12, 2011)

The New York Times has the third highest weekday circulation in the United States (after USA Today and the Wall Street Journal) and is one of the country’s most influential newspapers.

BROOME, Australia — Australia is experiencing a natural resources boom, driven by China’s headlong modernization, that is often described as a once-in-a-century phenomenon. It has minted billionaires out of businessmen who deal in iron ore and coal, and it has enriched many Australians by increasing the value of their homes and creating well-paying jobs.

But it has conspicuously left out Aboriginal Australians, whose home ownership and education levels fall below the national averages. High unemployment and widespread alcoholism have continued to debilitate isolated Aboriginal communities here in northwestern Australia, on the other side of the continent from the major cities along the eastern coast.

As resource companies push ever deeper into Australia’s remotest areas, however, Aboriginal leaders are leveraging their rights as traditional landowners to negotiate deals with companies and governments that are seeking to develop their holdings. They say the potential windfall — hundreds of millions of dollars — will rescue their communities from their long dependence on welfare and state subsidies.

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Gold Fever Gripping the Australian Outback – by Matt Siegel (New York Times – August 15, 2011)

The New York Times has the third highest weekday circulation in the United States (after USA Today and the Wall Street Journal) and is one of the country’s most influential newspapers.

SYDNEY, Australia — Four years ago, Marco Nero was on top of the world. He was earning more than $1 million working as a film effects designer for some of the world’s most prestigious digital animation houses. His mind, however, was elsewhere.

Mr. Nero, 40, was increasingly spending his office hours poring over Web sites for anything he could find about an unlikely subject: gold. Like Humphrey Bogart’s character in the classic 1948 film “The Treasure of the Sierra Madre,” he realizes now, he was developing a full-blown case of gold fever, a condition whose genesis he traces to a trip to a prospecting supply shop in the Sydney area.

“I happened to talk to the gentleman that was behind the counter, and he showed me a 2-ounce gold nugget he had and it was a beautiful piece. I held that in my hand,” he said. “I was probably hooked at that point.”

Shortly thereafter, despite protests from friends and family, he quit his job to hunt for gold.

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Mine workers dig in on wages, pensions, benefits – by Brenda Bouw (Globe and Mail – July 6, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media. Brenda Bouw is the Globe’s mining reporter.

Mine workers are flexing their muscles amid surging commodity prices and increased labour shortages, setting the stage for more union unrest.

Workers at some of the world’s largest copper, gold and coal mines have either walked off the job or are threatening to strike, pushing demands for higher wages, and better job security and benefits.

The labour activism is playing out worldwide, from rolling strikes at Australian coal mines jointly owned by BHP Billiton Ltd. and Mitsubishi Corp., to walkouts at Freeport-McMoRan Copper & Gold’s giant Grasberg mine in Indonesia. African gold producers AngloGold Ashanti Ltd. and Gold Fields Ltd. are also facing labour action, as is Chile’s state-owned copper giant Codelco.

Mining companies are trying to hold their ground to prevent a further spike in costs, at the same time maintaining output levels to capitalize on near-record prices for gold, copper, silver and coal. Prolonged strike action could lead to production shortages that would in turn drive up prices for resources as it did with nickel last year following lengthy strikes by workers at Brazilian mining giant Vale SA’s Canadian operations.

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Constraints shackle [Australian mining] boom – by Wayne Cole (National Post – June 23, 2011)

The National Post is Canada’s second largest national paper.

Australia’s road to resource riches is proving bumpier than first thought as miners struggle to meet ambitious investment plans, another reason for the country’s central bank to go slow on further interest rate rises.

The Reserve Bank of Australia (RBA) has long assumed it would have to tighten policy to temper inflationary pressures from a mining boom. But the sector’s race to meet red-hot demand in China and India is running into other constraints, from dire weather to a dearth of skilled labour.

“The mad rush to spend is already dissolving into delays and cost overruns, so there’s no way the mining industry is going to meet its investment targets,” said Brian Redican, a senior economist at Macquarie.

A record A$430-billion ($442billion) in resources investment is either underway or on the drawing board in Australia, a real stretch for an economy with an annual output of A$1.3-trillion.

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Is a Profitable Nickel Laterite (HPAL) Mine a ‘Black Swan’? – by Patrick Whiteway (Canadian Mining Review Blog – January 31, 2011)

Canadian Mining Review: Discussing ideas and issues related to mining in Canada 

Thoughts on mining nickel laterites inspired by two recent books: ‘Linkages of Sustainability’ and ‘The Black Swan.’  

It’s October 2008 and I’m relaxing in a second-row seat of an air conditioned tour bus. It’s crossing the Swan River in beautiful downtown Perth, Australia, when the driver suggests to passangers that the river should be called the Black Swan River. That’s because 300 years ago, he explains, European explorers first visited this part of Western Australia and saw black swans for the very first time. Up until then, the only swans they had seen were white ones. Seeing black swans on this wide, lazy river revolutionized their thinking.

Reading Nassim Nicholas Taleb’s best-selling book “The Black Swan,” could revolutionize your thinking. This book is all about highly improbable events. Taleb skillfully questions how we think about these events that turn out to have serious consequences. He calls them ‘black swans’ and as I’ll show here, they have a significant role to play in the mining industry.

As a Canadian mine engineer who has visited and written reports on many mines in Canada, I can tell you that improbable events, sometimes called simply luck, surprises, randomness or human error, have enormous consequences for the success or failure of many mines. The only successful, high pressure acid leach (or HPAL) nickel laterite operation in Australia is one of my favorite examples.

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Honourable Norman Moore MLC, Western Australia Minister for Mines and Petroleum, Vancouver Speech (March 3, 2011)

This speech was given at the Canada-Australia-New Zealand Business Association Luncheon, Sutton Place Hotel, Vancouver, Canada on March 3, 2011.

“Despite the global financial crisis, Western Australia has enjoyed
a decade of average annual economic growth of about 14 per cent,
which is an outstanding result by any measure.”
(Western Australia Minister Mines and
Petroleum, Norman Moore, Mar/3/2011)

Good afternoon ladies and gentlemen.

I would like to thank Nerella Campigotto, President of the Canada-Australia-New Zealand Business Association, for inviting me here today. I always enjoy the opportunity to talk about Western Australia’s resources industry.

I have been a member of the Western Australian Parliament since 1977 am currently the longest serving sitting member. I serve the state government proudly and have seen many changes to the economy over the past thirty-four years. Nonetheless, I remain focused on the future.

Both the Australian and Western Australian governments place great importance on ensuring their economies reach their full potential. Far from simply enjoying the short-term material benefits of increased employment and wealth, we aim to build a sustainable long-term industry, with all the benefits this brings.

Western Australia is blessed with geology that makes it highly prospective for most mineral commodities and we have a highly skilled exploration sector seeking to exploit that prospectivity.

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The Thunder From Down Under – A History of Nickel Laterites – by Stan Sudol

The Canadian Mining Journal is Canada’s first mining publication.

This article was originally published – August/2005

Everything you wanted to know about laterites but were afraid to ask

The last few years of the 20th Century were not very kind to the nickel industry. In October and December of 1998 the LME price for nickel dipped to US$1.76 a pound, the lowest level ever, if you factor in inflation. The imploding Russian economy was dumping nickel on western markets, the Asian currency crisis was annihilating economic growth and metal demand, and new lower-cost mine production was threatening to come on stream.

Of great concern to Canadian nickel giants Inco Ltd. and Falconbridge Ltd., the second and third largest producers after Russian MMC Norilsk, was an upstart Australian company called Anaconda Nickel Ltd.

Andrew “Twiggy” Forrest, Anaconda’s chairman, was well known in Australian mining circles for his legendary salesmanship and determination. One could almost imagine him pounding the table like Nikita Khrushchev and boasting that “he would bury the West with low-cost laterite nickel.”

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Australia Prepares to Overtake Canadian Uranium Production – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Australia will quadruple uranium production pushing itself ahead of Canada as the world’s largest producer. Australian state premier Mike Rann made this boast to a group of Indian journalists at the Citi Australia and new Zealand Investment conference earlier this month, according to a report in The Hindu of March 8, 2009.

The single project that would rocket Australian uranium production ahead of Canadian is the expansion of BHP Billiton’s Olympic Dam mine. The company is looking at the feasibility of expanding output from 4,300 t/y to 19,000 t/y. That would create a single mine that could produce 35% of the world’s current uranium needs.

The newspaper account did not specify whether all those tonnes per year were elemental uranium or uranium oxide. A quick peek at the BHP Billiton website confirmed that the annual output is tonnes of U3O8.

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Western Australia Lifts Uranium Ban – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

The six-year ban on uranium mining in Western Australia has been lifted, newly elected Premier Colin Barnett announced on Nov. 17, 2008. New mining leases will no longer exclude the hunt for uranium.

Australia is the world’s second largest producer of uranium (19.7 million lb U3O8 in 2006), behind Canada (26.7 million lb). Between them they account for half the world’s production. With the hunt on again for new uranium producers in Western Australia, that country may give Canada a run for the its top-ranked status.

The change in policy will benefit companies with advanced projects in Western Australia.

Canada’s Cameco Corp. looks like it was ahead of the curve when it partnered with Mitsubishi Development (30%) to pay US$346.5 million to buy the promising Kintyre deposit earlier this year. The project, located 1,250 km northeast of Perth, is in the advanced exploration stage. The original uranium discovery was made in 1985, and former owner Rio Tinto eventually outlined eight separate deposits. Cameco estimates that the Kintyre project may host between 62 million and 80 million lb of U3O8 with grades averaging 0.3% to 0.4% U3O8. These numbers do not comply with 43-101 definitions.

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Australian Prospectors and Miners Hall of Fame Historical Profile – James “Philosopher” Smith (1827-1897)

The legendary Tasmanian prospector and discoverer of tin at Mt Bischoff in 1871

James Smith was born in 1827, the second of three children to John Smith and Ann Grant, who married after coming to Tasmania as convicts. James had an unsettled family life and in 1836, at the age of 9, he became the ward of John Guillan, a Launceston miller and merchant.
Smith wrote little about his early life, though it appears he had a rudimentary education in Launceston. At an early age he started working at Guillan’s flourmill at the Supply River, where he also began to take an interest in exploration and minerals. Smith’s fellow apprentice Charles Monds probably introduced him to Congregationalism (also known as Independent), which would provide much of his moral framework.

Smith’s zest for self-education was already evident in his adolescence. He bought books on many topics, possibly doing so as a result of the influence of the popular Scottish geologist Hugh Miller, who encouraged ‘self-culture’ – the idea that workingmen could improve themselves by achievement and study, particularly of the Bible. Smith and the journeymen he lived with attended the Independent Church where, according to Monds, Smith’s developing faith set him on his successful life’s course. It is also likely that membership of the church community shaped Smith’s lifelong friendships and business associations, perhaps even where he subsequently lived, for James Fenton, the pioneer Forth settler and Smith’s neighbour, was a Congregationalist and Charles Monds’s brother-in-law.

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Australian Prospectors and Miners Hall of Fame Historical Profile – Jupiter Mosman (1861-1945)

The Aboriginal horseboy who discovered the Charters Towers goldfield in Queensland

Jupiter Mosman, whose tribal name is unknown, was born in north-western Queensland and, as a small boy, ‘came in’ to Kynuna Station. There he was ‘acquired’ as George Clarke later wrote, by Hugh Mosman who gave him his non-indigenous name. Soon afterwards the Mosman brothers and John Frazer sold Tarbrax to the McIntyres of Dalgonally and set off for the Cape River diggings. They visited Ravenswood where they became friendly with the prospector George Clarke and decided to look for gold around the Seventy Mile Pinnacle (Mount Leyshon).

Clarke described Jupiter riding behind Mosman, strapped to him and never allowed out of his sight. The party rode through the gap on the western side of what is now called Towers Hill and camped on a creek where, in December 1871, Jupiter discovered the gold-bearing quartz of the North Australian reef: the first mine of the Charters Towers goldfield, the field that ensured the survival of north Queensland as a European settlement.

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