Australia’s only industrial minerals newsletter
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Number 4/2010, second half of February 2010 (prepared twice a month)
Abbreviations used: ABARE = Australian Bureau of Agricultural & Resource Economics;
ABS = Australian Bureau of Statistics; ACCC = Australian Competition & Consumers
Commission; AGM = annual general meeting; ASIC = Australian Securities & Investments
Commission; ASX = Australian Stock Exchange; BFS = Bankable Feasibility Study; CRC =
Cooperative Research Centre; DSO = Direct Shipping Ore; EPA = Environmental Protection
Authority; FS = Feasibility study; FIRB = Foreign Investment Review Board ; HM = Heavy
Minerals; HoA = Heads of Agreement; IPO = Initial Public Offering; JORC = Joint Ore
Reserve Committee; JV = joint venture; km = kilometre; kt = kilo (‘000) tonnes; m = metre;
MoU = Memorandum of Understanding; Bt = billion tonnes; Mt = million tonnes; pcp =
previous corresponding period; PER = Public Environmental Review; PFS = Pre-Feasibility
Study; Q = quarter (of a year); sq = square; t=tonne.
Source abbreviations: MN = MiningNews
ANTIMONY
Anchor Resources has commenced a drilling program at its Wild Cattle Creek antimony deposit,
located 12 km north of Dorrigo and close to Straits Resources’ Hillgrove antimony-gold mine,
NSW. The deposit has an inferred resource of 880,000 t grading 2% antimony for 17,500 t of
contained metal.
18/02/2010, MN
DIAMOND
North Australian Diamonds has increased the total Merlin JORC-compliant indicated and inferred
resource by 2 million carats to 6.2 million carats (mc) coming mainly from the PalSac pipe, where
resources increased by 56% to 8 Mt. At the surface, PalSac pipe is expressed as two discrete pipes,
Palomides and Sacramore, which coalesce at about 110m below surface to form a larger, single
body. The company has processed a total of 24,537t of material during the prefeasibility production
trials in 2009 coming from the Gawain, Ywain, Kaye, PalSac and Launfal pipes, as well as from
stockpiles. It plans to continue production trials in 2010 with an initial focus on the Kaye pipe.
22/02/2010, MN
IRON ORE
Peak Hill Iron Joint Venture owned 70% by Padbury Mining and 30% by Aurium Resources is to
drill its haematite exploration at Telecom Hill Project, WA. The JV is targeting 80-110 Mt of
haematite mineralisation over 13 kms of prospective BIF along Robinson Range at Telecom. The
project is situated only 60 kms from the proposed Oakajee Port and Rail.
16/02/2020, MN
Industrial Minerals Down Under, 4/2010
Page 1 of 6
Enterprise Metals is in talks with a potential partner for its Cunderdin prospect which is located
about 135 km east of Perth, straddling the Great Eastern Highway and the standard gauge railway
line that runs from Kalgoorlie-Boulder to the port of Kwinana. The company also owns the
Sylvania project, 70 km east-southeast of Newman in the Pilbara, where rock-chip sampling in 2009
located haematite mineralisation (up to 66.3% iron),and the Burgess property, 70 km west of
Southern Cross.
16/02/2010, MN
Southern Uranium is investigating the resource potential and metallurgical characteristics of its
Jungle Dam iron deposit on the Eyre Peninsula, SA. Initial drilling by the company and, earlier lead
and zinc explorers intersected intervals grading more than 30% iron compatible with nearby iron
ore resources. The intersections comprised magnetite, haematite-altered magnetite and goethite.
17/02/2010, MN
An option agreement between China’s Global Minmetal Corporation and Ferrowest has lapsed after
GMC failed to meet the conditions within 90 days. Under the agreement signed in November, GMC
could earn a 50% stake in Ferrowest’s Western Haematite project, WA, by investing $15 million.
The arrangement allowed for GMC to invest $1 million in Ferrowest for a 6.3% stake in the
company.
18/02/2010, MN
Accent Resources has reported an indicated and inferred resource of 391.1 Mt grading 29.9% iron,
0.39% sulphur, 46.75% silica and 2.65% alumina for its Magnetite Range project, WA. Over 70%
of the resource is in the indicated category. Davis Tube Recovery tests indicate that a concentrate
grading up to 67% iron could be produced.
22/02/2010, MN
Rio Tinto has produced its first ore from its $A999 million Mesa A/Warramboo open pit mine, WA.
The mine, 50 kms west of Pannawonica, will initially produce 20 Mt/year, rising to 25 Mt/year by
2011. It will replace production from the depleting Mesa J mine. Total high-grade reserves across
the Mesa A/Warramboo deposits are estimated at 249 Mt, with a total mine life of 11 years.
23/02/2010, Australian Financial Review, p 17; 22/02/2010, MN ; Mining News Weekly
Karara JV partners, Gindalbie Metals and Ansteel, have signed up mining contractor NRW
Holdings for $120 million worth of earthworks including pouring more than 40,000 cubic metres of
concrete. Boral has installed a special-purpose batching plant onsite to ensure a steady source of
concrete during construction. The contract includes the construction of site drains, site roads, a
retention pond and the all-weather airstrip. Karara project will initially produce around 8 Mt/year of
magnetite concentrate and around 2 Mt/year of DSO, starting in 2011.
22/02/2010, MN
The World Steel Association which represents 66 countries reported that world steel output
increased by 25.5% year-on-year in January to 109 Mt. In the Asian region, Japan’s output rose by
36.8% year-on-year to 8.7 Mt, China’s steel production by 18.2% year-on-year to 48.7 Mt and
South Korea’s output by 32.4% year-on-year to 4.5 Mt while Australia boosted its output by 38.6%
to 600 kt. The world crude steel capacity utilisation rates had improved to 72.9%, up from 71,9% in
December.
22/02/2010, Mining News Weekly
Karara JV partners, Gindalbie Metals and Ansteel, have signed a non-binding MoU that will see
them work together to target assets mainly in the carbon steel materials sector, including
Industrial Minerals Down Under, 4/2010
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metallurgical coal, manganese, chromite and nickel as well as downstream processing opportunities
such as pellet plants and steel mills.
25/02/2010, Australian Financial Review, p 19; Australian, p 24; 23/02/2010, MN; 24/02/2010, Mining News
Weekly
FerrAus’ scoping study which assumed a production rate of 15 Mt/year with a single process plant
in the Davidson Creek area reported a potential net present value ranging from $880 million to $1.1
billion. Capital costs were estimated to be in the range of $600 million to $1 billion, including
capital for train rolling stock and railroad construction to existing infrastructure, as well as
allowances for engineering, procurement and construction management and contingency. The
company used an iron ore price of $US81.20 per dry metric tonne fob for Hamersley Fines, based
on long-term forecasts, and an exchange rate of 75c. The company will commence a PFS
combining its Robertson Range and nearby Davidson Creek and Murramunda projects, which will
now be referred to as the FerrAus Pilbara.
24/02/2010, MN
Brockman Resources has reported that metallurgical testwork on the detrital haematite ore at its
Marillana project could be cost-effectively upgraded to a DSO grading 60.4-63.5% iron. The
detrital haematite ore makes up 94% of Marillana’s 1.63 Bt resource. The testwork forms part of
the Marillana’s DFS due for completion in the third quarter.
24/02/2010, MN
Magnetite producer Grange Resources sold 1.2 Mt of ore from its Savage River mine, Tas for total
revenue of $A111.1 million, compared with $181.2 million revenue in the December 2008 half-year
period.
26/02/2010, MN
MANGANESE
Zinc Co Australia’s has reported the discovery of high-grade stratabound manganese oxide in the
Earaheedy Basin, WA. The discovery, named the Lockeridge prospect, outcrops as four northwest
trending low ridges over 4 km of strike. The low hills are capped by massive manganese which
have assayed of up to 45% manganese.
17/02/2010, MN
OM Holdings has reported a full-year consolidated net profit after tax and minority interests of
$A27 million, a 77% drop from 2008’s $115.6 million profit. Sales revenue fell 51% to $280.3
million. Manganese and chrome sales increased 45% to 961 830 t, while alloys sales fell 50% to
39365 t. Benchmark prices ranged from $US3.50 per dry metric unit to $6.50/dmtu in 2009, down
from record prices of around $16/dmtu in 2008. The company reported that resources have
increased by 2.4 Mt to 32.9 Mt at 23.1% manganese, and reserves by 1.9 Mt to 20.5 Mt at 21.4%
manganese.
25/02/2010, MN
PHOSPHATES
Minemakers has been granted a mineral lease for its Wonarah rock phosphate development, NT.
The lease covering some 108 sq kms for a 25-year period, covers the main areas of mineralisation
south of the Barkly Highway. Wonarah has an inferred resource in excess of 1.1 Bt.
22/02/2010, MN
RARE EARTHS
Arafura Resources has announced a $17.5 million placement and associated rights issue.
Industrial Minerals Down Under, 4/2010
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The funds are to used for ongoing drilling program at Nolan, the BFS and environmental studies at
the project.
18/02/2010, Australian Financial Review, p 17; 17/02/2010, MN
Lynas Corporation has awarded UGL $A30 million contract to provide engineering, procurement
and construction management for its advanced materials plant in Malaysia which will process
concentrate from Lynas’ Mount Weld rare earths project, WA.
22/02/2010, MN
TITANIUM
The Japan Titanium Dioxide Industry Association has reported a 28% decline in TiO2 pigment
production, to slightly more than 162,000 tonnes. This is the second year of production decline in a
row, as growth in the four major demand markets was unable to offset large decreases in demand
from other markets.
8/02/2010, TZ Minerals Newsletter
Bemax Resources reported in its December 2009 quarterly report that total zircon production for
2009 was 66,252 tonnes, approximately 6% lower than in 2008, while rutile production fell 25% to
57,056 tonnes.
19/02/2010, www.sgx.com
Exxaro Resources Limited reported that improvement initiatives at Tiwest Kwinana Pigment plant
led to pigment production returning to 2007 levels with 2009 production a 23% improvement on the
2008 year. Zircon and rutile production at Cooljarloo operations, north of Perth increased as a result
of higher grades and various improvement projects. SR production was slightly lower as a result of
maintenance-related problems predominantly experienced in the second quarter of 2009.
25/02/2010, www.exxaro.com
Iluka Resources Limited reported a loss after tax and minority interests of US$108.6 million for
calendar 2009 compared to a profit of US$77.5 million in 2008. The company’s total production in
2009 fell by 26% year-on-year with product sales down 36% compared to 2008. Zircon sales in
2009 fell by 54% with sales of rutile and SR declining by approximately 15% and 22%
respectively, as a result of weak demand which led the company to idle assets and curtail
production. Total mineral sands production for 2009 reached 1.64 Mt, compared to 2.23 Mt in 2008
with product sales reaching 1.15 Mt, compared to 1.80 Mt in 2008. The company expects demand
to grow in 2010, on the back of increasing consumerism and a massive urbanisation trend in China,
one of the world’s largest consumers of mineral sands products. Zircon output is expected to
increase to 400 000 t in 2010, up from 263 000 t in 2009. The upgrade of the Narngulu mineral
separation plant, WA, was commissioned in January.
26/02/2010; Australian Financial Review, p 44; Australian, p 24; Adelaide Advertiser, p 61; Herald Sun, p 71;
Canberra Times, p 17; 25/02/2010, www.iluka.com ; MN ; Mining News Weekly
ODDS & SODS:
Country (Kenya-mineral sands): Tiomin Resources has signed a binding HoA for the sale of its
Kwale mineral-sands project to Australia's Base Iron Limited. BIL will buy the Kwale project, all
the intellectual property associated with Tiomin's mineral-sands projects in Africa and an option to
acquire 100% of Tiomin Kenya Limited. The agreement requires the approval of the Kenyan
government, as well as the BIL shareholders. Kwale has resources of 138.8 Mt at 4.65% total HM.
The other three exploration projects have reported resources of 1.4 Bt at 3.8% HM.
26/02/2010, MN; Mining News Weekly
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Country (China – fluorspar):
Of the estimated 5.5 Mt of global fluorspar produced in 2009,
China accounted for more than 50% and was also the largest single consumer. In order to preserve
its own production, Chinese authorities have put in place production restrictions, a “scarcity” tax
where the resource tax for fluorspar has been increased to 15%, and looked to close down small and
inefficient producers. The price of spot acidspar (China free on board) rose from $US130-140/t in
January 2003 to $US530-550/t in December 2008, and is currently at $US250-270/t.
22/02/2010, MN; Mining News Weekly
FROM THE DESK
-----------------------------------------------------------------------------------------------------------------------Process, CSIRO research in Minerals processing and metal production, February 2010
-----------------------------------------------------------------------------------------------------------------------Up and coming conferences / workshops in 2010 (if you know of others, please let me)
Lithium Supply & Markets 2010, 27-28th January 2010, Caesars Palace, Las Vegas, USA . Further
details: Victoria Cooper Smith: vcooper-smith@indmin.com
Processing of Industrial Minerals ’10-Instanbul, Turkey. 4-5th February, 2010. Further details:
Contact: Barry Wills ; email : bwills@min-eng.com; Web: www.min-eng.com/pim10
PDAC 2010, Toronto, Canada. 7-10th March 2010. Contact: Prospectors & Developers Association
Canada: Ph. 416-362-1969. Email: convention@pdac.ca; Web: www.pdac.ca
20th Industrial Minerals International Congress & Exhibition (IM20). 21-24th March, 2010. The
Fairmont Turnberry Isle Resort & Club, Adventura, Maimi, USA
13th Annual Global Iron Ore & Steel Forecast Conference 2010. Sheraton Hotel, Perth23-25th
March 2010.
Rare Earths & Future Metals Forum, Duxton Hotel Perth, 29-30th March 2010. Further details:
Web: www.informa.com.au/rare-earths Email: registration@informa.com.au ; Ph : 02 9080 4307
16th International Bauxite and Alumina Seminar, 29-31st March 2010. Ritz Carlton Coconut Grove,
Miami, USA.
Mining the Pilbara 2010. Walkabout Motel Hotel, Port Hedland, WA. 10-11th June 2010.
AusIMM International Uranium Conference, 23-24 June, 2010. Adelaide , South Australia.
Further details: The AusIMM Events Department; email: conference@ausimm.com.au ; Web:
www.ausimm.com.au/Events/Default.aspx
XXV International Mineral Processing Congress 2010, 6-10 September, 2010, Brisbane, Qld.
Further details: Contact: Alison McKenzie; ph. 61-3-9658 6123; email:
impc2010@ausimm.com.au; Web: www.ausimm.com.au/Events/Default.aspx
Industrial Minerals Down Under, 4/2010
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TZMI’s Congress 2010 - Hong Kong, 3rd – 5th November 2010, the InterContinental Hong Kong
in Kowloon. Further details: Contact:
www.tzmi.com
-----------------------------------------------------------------------------------------------------------------------MEETINGS:
THE BRISBANE MINING CLUB:
Speaker: Mr Owen Hegarty, Vice-Chairman G-Resources Group Ltd
Time: 12:00 pm for 12.30 pm
Date: Thursday 25th February, 2010
Where: Hilton Brisbane
Cost: $/person including GST
More information : www.brisbaneminingclub.com Email: robin@brisbaneminingclub.com.au
Phone: 07 3831 6218, Fax: 07 3831 7598
THE 142nd SYDNEY MINING CLUB Luncheon:
Speaker: Mr John McGuigan, Chairman, White Energy
Mr Glen Lewis, Managing Director, Nucoal Resources
Topic: Market Embraces two New Era Sydney-based Coal Plays
Time: 12:00 for 12.30 pm (finish 2 pm sharp)
Date: Thursday 4th March , 2010
Where: Tattersalls Club, 181 Elizabeth St, Sydney
Cost:
$60 per person
More information :
www.sydneyminingclub.org Email info@sydneyminingclub.org
Phone: 02 9416 0633, Fax 02 9416 0617
THE 143st SYDNEY MINING CLUB Luncheon:
Speaker: Mr Owen Hegarty, Vice Chairman
Company: G-Resources Group
Time: 12:00 for 12.30 pm (finish 2 pm sharp)
Date: Thursday 1st April , 2010
Where: Tattersalls Club, 181 Elizabeth St, Sydney
Cost:
$60 per person
More information :
www.sydneyminingclub.org Email info@sydneyminingclub.org
Phone: 02 9416 0633, Fax 02 9416 0617
THE MELBOURNE MINING CLUB: Cutting Edge Series
Speakers & Companies:
Dr Andrew Tunks; Managing Director, A-Cap Resources Limited
Mr Doug Grewar, Managing Director, Drummond Gold Limited
Dr Susan Vearncombe, Managing Director, Silver Swan Group
Time: 5:00 for 5:30 pm
Date: Tuesday 16th March, 2010
Where: The Swanston Room, Ground Floor, The Melbourne Town Hall, Melbourne
Cost:
Attendance is free
Registration: Compulsory
More information :
www.melbourneminingclub.com Email mmc@minerals.org.au
Phone: 03 8614 1802, Fax 03 9629 8603
Industrial Minerals Down Under, 4/2010
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