pd240 July16 mag-web

AUSTRALIA’S PAYDIRT JULY 2016 PAGE 101

REGIONAL ROUNDUP

Government boost for Tulu Kapi

The Government of Ethiopia has upped The Ethiopian Government will invest $US20 million in the Tulu Kapi gold project
its stake in Tulu Kapi to 25% by in-
vesting $US20 million in the gold project. that Tulu Kapi is a key plank in its five- ground indicated and inferred resources
year growth and transformational strat- of 1.65mt @ 6.26 g/t gold for 330,000oz
AIM-listed Kefi Minerals plc is develop- egy has reinforced the project’s momen- (in-situ cut-off of 3.5 g/t). Life-of-mine
ing the project in Ethiopia’s west which tum, Anagnostaras-Adams said. open pit resources currently stand at
is expected to come on-stream late next 980,000oz gold.
year at an estimated cost of $US130 mil- While the Government is committed to
lion. Tulu Kapi, Anagnostaras-Adams said he It is estimated that the increased out-
understood it would be selective with its put would boost generating operating net
The Government, which already en- investment in mining projects and its par- cash flow of $US100 million a year.
joyed a 5% free-carried interest in Tulu ticipation with Kefi was not indicative of
Kapi before its major equity commitment, wider government policy. Anagnostaras-Adams said the eco-
has been a strong supporter of the pro- nomics were compelling enough to seri-
ject and its contribution will see roads, “This [Tulu Kapi] is the first cab off ously consider the underground option,
power and other associated infrastruc- the rank and the Government wants it however, Kefi would not be distracted by
ture built to complement the mine. to get going and is wholly committed to such options until the open pit was up
do whatever is reasonable to get going. and running.
Kefi executive chairman Harry Anag- But, it shouldn’t be taken for granted that
nostaras-Adams said the Government’s they will be involved in other projects,” he “It’s a mine in the sense that it stacks
firm backing was an important step to- said. up,” he said.
wards locking in further debt and equity
project financing from a syndicate of fi- Once Kefi is able to confirm its financ- “We’d like the underground reserves to
nanciers. ing arrangements, it can pull the trigger be accessed around year four, so we can
on compensating and resettling a nearby sequence in the blending of the under-
Perth-based Lycopodium Ltd has been community of about 1,500 people and ground with open pit ore; operationally
appointed as preferred EPC contractor 260 households. that will fit much better.
and African Mining Services (AMS), the
African arm of Ausdrill Ltd, as the miner “We didn’t want to jump the gun on the “Likewise, the satellite deposits that
at Tulu Kapi where initial open pit pro- community resettlement ahead of sched- need to be worked up, we want them to
duction is forecast to deliver at a rate of ule on the financing, but that is now align- come on-stream around the same time
1.5 mtpa for 115,000 ozpa gold @ 2.1 g/t ing the way it should and there seems to so that we have multiple source of blend-
at all-in costs (including initial capex) of be momentum now in the formalisation of ing for the operation to maintain average
$US842/oz. project financing,” Anagnostaras-Adams grades and maybe even swing up the
said. grades because of the higher grades
Kefi hopes to have all funding in place underground. It’s definitely some years
soon so construction work can start be- As project financing takes centre away if we were to get this show on the
fore the end of 2016. stage, in the background Kefi is mulling road. We will need to do a DFS on the
over the potential of turning Tulu Kapi underground and bring it on after a cou-
“From the point of view of implement- into a 150,000 ozpa gold project with the ple of years of operation of the open pit.”
ing the project, we set up a syndicate of integration of an underground mine sce-
contractors, financiers, our main share- nario. – Mark Andrews
holders and the Government last year,
but now it is time for the formalisation A PEA assessing the combination of
[of the financing mandate] and the most open pit and underground production
important first step in the formalisation is was released in March based on under-
the Government,” Anagnostaras-Adams
said. “Obviously, they are the Govern-
ment’s minerals and the Government
gives us the licence to operate and it’s
their project, their country, so they are
the appropriate first cab off the rank in
the formalisation process. With that now
in place we can formalise the formal lead
bank mandates which will be done short-
ly. The contractors are now formalising
their detailed plans so it is now down
to the nitty gritty of syndicated arrange-
ments and sign offs and it is happening
more or less on schedule.”

Financiers can feel more comfortable
investing in gold projects in the current
climate with the precious metal enjoying
a consistent run at around the $US1,250/
oz mark.

Improving gold prices and a clear in-
dication from the Ethiopian Government

PAGE 102 JULY 2016 AUSTRALIA’S PAYDIRT

AFRICA

Royal honour for Turner

Founding chair of the Australia-Africa Bill Turner AAMEG, which Turner helped set up
Minerals and Energy Group (AAMEG), in 2011, is one of the peak bodies sup-
Bill Turner, was recognised for his service into opportunities for significant social porting Australian resource companies
to the mining sector and international re- and economic development. operating in Africa, with the group gain-
lations on the Queen’s Birthday Honours ing national and international recognition
list for 2016. In an African context, it is hoped these under his stewardship.
opportunities can assist with the allevia-
Turner, former chief executive of DRC tion of poverty across the continent. “Australia is an important neighbour to
copper miner Anvil Mining, was recog- Africa and has a key role to play in help-
nised as an Officer of the Order of Aus- Poverty is a global issue, however, one ing African countries realise their mineral
tralia in the General Division last month, in which Turner personally, along with the potential, while maintaining the reputa-
alongside the likes of Warren Mundine Australian extractive industry, plays a key tion of Australian operators for providing
and Ric Charlesworth. role in helping alleviate. positive socio-economic improvements
to their host communities,” O’Reilly said.
Officers in the Order of Australia in the
General Division are recognised for their “AAMEG supports member companies
“distinguished service of a high degree operating in Africa and facilitates collab-
to Australia or to humanity at large”, with oration between industry, governments
Turner’s leadership in business and ex- and key stakeholders, contributing to
ploration collaboration between Australia the sustainable development of African
and Africa making him a standout recipi- economies to mutual benefit, while con-
ent. tinuing to build positive and productive
relationships with African governments.”
AAMEG chief executive Trish O’Reilly
paid tribute to Turner’s strong commit- For a feature length story on Bill Turn-
ment to building positive and productive er, see Paydirt’s August edition
relationships between business and the
local community, with an emphasis on
ensuring business success translates

AUSTRALIA’S PAYDIRT JULY 2016 PAGE 103

7 - 9 September 2016

Perth,Western Australia

For all enquiries please contact Tammy Caldwell on (+61) 8 9321 0355
or email [email protected]

People of ADU 2015:

2016 sponsors to date:

www.africadownunderconference.com

REGIONAL ROUNDUP

Black Ridge takes tech
to Myanmar

West Australian gold explorer and seismic response cre- as well. It is a very diffi-
technology company Black Ridge ates an effect in the cult basin to understand
Mining NL will roll out its seismo-electric ground, the piezoelectric with traditional meth-
resource imaging technology in Myan- effect, from which we ods, so we are hoping
mar. measure the resulting to reduce a lot of risk for
current. In oil and gas, it those guys and guide
Black Ridge holds an exclusive licence is called a seismoelectric them better.”
for the resource imaging technology effect. It should work well
which can image resources in the sub- and we have had a few Spry said the tech-
surface, effectively providing virtual drill- other discussions with nology was incredibly
ing results. other groups on that.” efficient time-wise and
cost-wise, which was
The company is trialling the technolo- Pacific Hunt entered a major differentiator
gy at its Unaly Hill project, 500km north- Myanmar on the back of between the seismo-
east of Perth, which is prospective for two PSC’s in 2014 total- electric technology and
gold and vanadium. Black Ridge plans to ling 10.38 million acres seismic surveying tech-
also test for lithium potential in the near comprised of the PSC nique.
future. C-1 Indaw-Yenan block in
the Chindwinn Basin and Black Ridge aims to
Black Ridge chief executive Trent Spry PSC H Taungoo-Pyin- test about 20 sites per
told Paydirt that as well as minerals ex- mana in the Pegu Yoma day, with each image
ploration, the technology was also ap- and Sittoung basin. being repeated three to
plicable to the oil and gas sector, fresh four times for data qual-
ground water detection and environmen- The immediate focus ity.
tal concerns such as shallow aquifers will be PSC C-1, which is
and fracture stimulation monitoring. a proven petroleum sys- “It is incredibly effi-
tem, where Black Ridge cient,” Spry said.
The technology was rolled out last year will send a crew to ac-
in Australia and South East Asia, with quire and process data “Once we have fin-
Pacific Hunt Energy Pty Ltd being the using its technology. ished the survey there is
first overseas company to commission literally no sign that we
Black Ridge to undertake a pilot survey Successful outcomes from this venture have been on the land
within its Production Sharing Contract may well encourage other companies in as well. There is no clearing, no environ-
(PSC) C-1 onshore block in Myanmar. South East Asia and Australia to consid- mental impact and there is no rework af-
er utilising Black Ridge’s technology. ter the survey and really in the field it can
Myanmar’s oil and gas regulatory au- be done by one really good operator and
thority – Myanmar Oil and Gas Enterprise “If we group Myanmar in that South some field hands. In a tough area like
(MOGE) – has approved an initial survey East Asia group, Pacific Hunt is the first Myanmar we can probably do 20 sites
which is aimed at better defining the hy- per day.”
drocarbon distribution one to move, but there Despite some challenging terrain to
of the Indaw structure. are three groups in In- deal with in Myanmar, the country has
Pacific Hunt hopes to donesia keen to use emerged as an appealing destination for
follow-up with a full- the technology as well. resources companies to investigate with
scale study across the We are talking to one political reforms under way in country.
greater Indaw structure group about the logis- Woodside Petroleum Ltd, headquar-
and other prospects in tics of getting some tered in Perth, has been one Australian
the block. of the equipment in company showing a willingness to invest
country at the moment. in the oil and gas sector.
“The minerals side of They have the perfect In May, Woodside reported an increase
it has been done else- geology for it, just like in its best estimate contingent resource
where in the globe be- Myanmar, they have a (2C) by 83 MMboe to 4,481 MMboe.
fore with a much more portfolio of structures The announcement comes after two
rudimentary technol- with an element of risk gas discoveries offshore Myanmar in Q1
ogy, but our technology that can’t really be re- 2016, with 32m net gas pay in the Block
should be able to do duced with traditional A-6 Shwe Yee Htun exploration well and
a lot better than in the methods and hopefully 62m net gas pay in the Block AD-7 Tha-
past,” Spry said. we can go in there and lin-1A exploration well.
do that,” Spry said.
“We are lucky at – Mark Andrews
Black Ridge that we “Myanmar is such
have Unaly Hill, which a prolific area and the
is an ideal testing area Pacific Hunt has
ground for it. In the is such a prolific area
case of minerals, a

PAGE 106 JULY 2016 AUSTRALIA’S PAYDIRT

ASIA

China’s nickel imports surge

China is importing more nickel to price. The country’s ore pro-
than ever before.
Headline imports of refined ducers warned in March of their
metal hit a new all-time record
high of 49,012t in April. intention to reduce both produc-

The cumulative tally of 157,600t tion and exports this year.
over the first four months of the
year represents an 115,000t in- Either way, it will put further
crease over the same period of
last year. pressure on China’s NPI sector,

Imports of ferronickel have also particularly since stockpiles of
surged to 294,700t so far this
year, which is already more than Indonesian ore are thought to be
any previous calendar year with
the exception of 2015. running very low.

Somewhere in this flow of mate- The latest assessment by ana-
rial lies an unfolding bull narrative,
one of falling Chinese production and re- lysts at Macquarie Bank is that
surgent demand.
the Philippines can probably sup-
The problem is that there is too much
else going on in the import data to get a ply enough ore to support Chi-
good view of the shifting Chinese nickel
landscape. nese NPI production at a rate of

When it comes to refined nickel, the Is there a bull story in nickel rising on the back 350,000-400,000 tpa.
core driver of rising imports is the flow of of all-time high imports from China? That is, by their own admission,
Russian metal into China. above the consensus view but it

Russia’s Norilsk Nickel is one of the terms of inflating the headline figure for still marks a contraction for a sector that
world’s largest producers of the metal so
has always accounted for some of Chi- ferronickel imports. used to generate over 500,000 tpa.
na’s imports needs in the past.
The single largest source of imports Indeed, the latest assessment from the
But the amount of Russian metal enter-
ing the country has grown from around this year has been Indonesia, which has International Nickel Study Group (INSG)
45% of total imports in 2012 and 2013 to
72% so far this year. In April alone, Rus- accounted for 196,400t, or 67%, of the is that Chinese nickel production slid by
sian metal accounted for 80% of all im-
ports. total import picture. almost 18% in the first quarter of this

The game changer was last year’s But this material from Indonesia isn’t year.
decision by the Shanghai Futures Ex-
change (ShFE) to allow Norilsk brands ferronickel at all but rather nickel pig iron Demand for nickel units from China’s
to be delivered against its new, booming
nickel contract. from a new plant operated by China’s stainless steel sector is, meanwhile,

What has ensued amounts to a whole- Tsingshan. proving much stronger than expected.
sale relocation of Russian nickel from the
London Metal Exchange (LME) ware- The price of imported material from In- That’s a reflection of the broader return
house system to China.
donesia has averaged $US1,041/t so far to growth of China’s steel production sec-
Russian full-plate cathode used to ac-
count for just about all of LME stocks but this year, compared with over $US2,000 tor but also of a shift towards production
it now represents only 40% of the total.
for ferronickel from established produc- of the nickel-rich 300-series of stainless
ShFE stocks, meanwhile, have mush-
roomed to 91,715t from just 3,100t this ers such as New Caledonia, Brazil and steel products.
time last year, when the Shanghai con-
tract had only just started trading. The Colombia. Macquarie has just upgraded its global
ShFE doesn’t provide a breakdown of
its stocks by origin but it’s a fair bet that The Tsingshan plant, currently ramp- nickel demand growth forecast for this
most of what it holds is in the form of
Russian metal. ing up to 90,000 tpa Phase II capacity, is year from 1.3% to 4.4%, largely on the

If Russian imports were running at the poster child for Indonesia’s build-out back of expected 4% growth in Chinese
historical levels of around 120,000 tpa,
imports of refined metal would still be up of its own processing capacity after the 300-series stainless production.
but by a significantly reduced degree.
imposition of a ban on raw materials. The more bullish picture starting to
Something very similar is happening in
However, the inclusion of this lower emerge in China is all part and parcel of

grade material in the ferronickel category the broader global shift from a state of

of China’s imports is serving to distort chronic supply surplus to one of growing

the data. If it weren’t there, ferronickel shortfall.

imports would have totalled just 98,000t, The last year that the nickel market

well within historical norms. was in deficit was in 2011, according to

The only category of nickel import that the INSG.

is in decline is that for nickel ore, the life- But the Group estimates a small 600t

blood of China’s own massive nickel pig deficit in the first quarter of this year,

iron (NPI) production sector. largely thanks to an 8,200t shortfall in

Indonesian imports have been non-ex- March itself.

istent ever since the country imposed its These are still highly marginal num-

ban on exports of unprocessed minerals bers relative to the size of stocks in the

at the start of 2014. nickel market, which is why nickel’s is a

The supply gap has been filled in large slow-burn bull story.

part by ore from the Philippines, although But the market is showing every sign of

imports have fallen quite sharply so far shifting to supply-demand deficit, even if

this year to 4.16mt from 6.65mt in the first it’s difficult to discern right now because

four months of 2015. of the mass movement of inventory from

This may in part be seasonal; a con- west to east.

sequence of the rainy season in the Phil- – Andy Home, Reuters
ippines which inhibits both mining and

shipping, but it may also be partly down

AUSTRALIA’S PAYDIRT JULY 2016 PAGE 107

REGIONAL ROUNDUP

Greenlight for uranium exports

Greenland Minerals and as a vote of confidence
Energy Ltd (GMEL) in the Kvanefjeld project,

has been plugging away particularly now that there

at the Kvanefjeld rare is some certainty around

earth-uranium-zinc project production and export of

for almost a decade and in uranium from Greenland.

that time it has managed Of the 1bt resource at

to achieve numerous mile- Kvanefjeld, 593 mlb is

stones. the uranium component

Advancing a rare earth while there is 11.13mt of

and uranium project has rare earth oxides which

not been easy, however, can potentially hold up for

GMEL has produced 37 years of operation.

a feasibility study and An update to the 2015

an updated version on feasibility completed in

Kvanefjeld, but with ura- April this year, following

nium and rare earths out pilot plant operations, re-

of favour with investors, vealed improved project

there has been little love As of July 1, uranium from Greenland can be sold to international customers economics and potential

for the company. for higher recoveries and

This situation could be about to change for Greenland and Denmark to create production rates.

as the recent passing of legislation in a legal framework which adheres to in- Cumulative free cash flow is estimated

Greenland and Denmark parliaments ternational treaties and conventions for at $US8.88 billion and annual average

has legalised the exportation of uranium uranium exports from Greenland and es- cash flow of $US376 million, while the

from Greenland. sentially gives projects like Kvanefjeld an capital cost estimate was reduced to

“I think it is difficult for people to fathom even chance of being developed. $US832 million.

the significance of what it represents,” Despite the intricacies associated with In the current environment GMEL will

GMEL managing director John Mair told formalising such legislation, Mair said he do well to court partners to help build the
Paydirt.
was impressed by the conscientiousness project, however, with the events of the

“It has been a long road to see a sig- of both governments to pass uranium ex- last 6-8 months, Mair said the company’s

nificant project like Kvanefjeld progress port legislation, which sets a solid foun- value proposition was much more entic-

through many of the technical steps, but dation for the 1bt Kvanefjeld project. ing now.

this has come in parallel to an evolving “Ultimately it is all for one project, to “We are in a much stronger position,”

political situation in Greenland and Den- see one project move forward,” he said. he said. “This has been a project that

mark. In order for the project to proceed “I think if you consider that the whole has garnered some significant interest,

there has been a lot of work at regulatory process of uranium in Australia has but there was always a question mark of

level that has been required to make sure been painstakingly slow, that Greenland how and when would the politics of it fall

Greenland primarily has a framework [in and Denmark can start from far further into place.

place] to effectively manage the produc- behind and ultimately put in place a full “It is clearly demonstrated that there

tion and export of uranium.” framework to manage the production is fundamental political intent to see the

As of July 1, internation- and export is really quite project progress into development and

al sales of uranium from extraordinary.” that does a huge amount to your ability

Greenland will be permitted No doubt it is a major de- to move into your next steps with groups

upon conditions set out in velopment, particularly for which want to participate in the project’s

the two pieces of legislation GMEL which is in the pro- development.

enacted in the Greenland cess of taking Kvanefjeld, “The backdrop in Greenland is one

and Danish parliaments. in the Ilimaussaq complex, which is very supportive and there is a

Regulatory and legisla- south Greenland, through huge amount of political capital that has

tive framework is in place in the permitting stages. been invested to get the foundations in

Greenland for the export of After completing a feasi- place for the project to move to the next

uranium, while Denmark is bility study in mid-2015, the phase. As we continue to work on the

responsible for ensuring the company followed up with permitting side of things, we’re fairly pro-

peaceful use of Greenland’s a mining licence applica- active with continuing the dialogue with a

uranium in accordance with John Mair tion late last year. assess- number of groups to really structure how
international safeguards. As technical the project will be effectively brought into

Being part of the Kingdom ments of the application development and that deals with addi-

of Denmark, Greenland’s foreign policy are carried out by regulatory authorities, tional technical horsepower, financial ca-

is managed by its Scandinavian neigh- GMEL is progressing with further per- pacity and off-take agreements.”

bour, however, it retains full control over mitting requirements and in June locked – Mark Andrews
its mineral and hydro carbon resources. away $2 million to do so.

Therefore, it has taken some time While only a modest raising, it serves

PAGE 108 JULY 2016 AUSTRALIA’S PAYDIRT

EUROPE

Talga courts Smedvig

Talga Resources Ltd has landed commitment to long-term financial
the long-term investment partners support as we grow and allows Tal-
it has been looking for. ga to accelerate its business plans.
Importantly, the investment comes
A placement of securities to Euro- after a lengthy and detailed due
pean investment groups, including the diligence exercise. Talga looks for-
Scandinavian-based Smedvig Family ward to leveraging from the new Eu-
Office, means Talga is well positioned ropean connections that will come
to accelerate its business plans this from this transaction, particularly in
year, including trial mining, German Scandinavia.”
pilot processing facility scale-up and
commercial development. With a high-grade graphite de-
posit in Sweden to source ore from,
In late June, Talga announced a Talga is developing processing
funding initiative to be taken up by a technology that requires no crush-
small group of Scandinavian inves- ing or grinding to make graphene
tors led by Smedvig to raise about and micrographite products related
$10 million. to coatings, energy storage, con-
struction products and composites.
Talga managing director Mark
Thompson said Smedvig was a wel- The end game for Talga is to
come addition to the register at a time construct commercial scale mining
when the company was making sig- operations and a processing plant
nificant operational progress. on site in Sweden upon completing
mine permitting and supply agree-
“The predominantly Scandinavian- ments.
based investment group shares our
vision to make Talga a world-class Mark Thompson
graphene technology and production
house, and brings new strength to our
investor base,” Thompson said.

“In addition, these investors provide

From Pilbara to Portugal

Dakota Minerals Ltd has started to David Frances primed as the company’s launching pad
execute its European strategy, ac- into the lithium sector.
quiring the rights to a large spodumene
and petalite bearing tenement package in However, Dakota managing director
Portugal. David Frances told Paydirt last month
his company was targeting jurisdictions
The company’s lithium interests in in Europe to expand its portfolio.
Portugal are spread over three districts
– Serra de Arga, Barroso-Alvão and Frances said it made sense to estab-
Almendra-Barca de Alva – where multi- lish a footprint somewhere in Europe on
ple values over 1% lithium from surface the back of the growing number of coun-
and drilling results have been reported at tries on the continent leading the global
Serra de Arga and Barroso-Alvão. uptake of electric vehicles.

At the time of print, Dakota was con- It has been reported that almost a
ducting mapping, surface sampling and quarter of new vehicle sales in Norway
auger drilling within the highest priority are EVs, while Daimler and Volkswagen
areas of its three claims, each of which have proposed new battery factories to
is comparable in size or larger than the accommodate for future EV demand.
company’s flagship Lynas Find project in
the Pilbara, Western Australia. Dakota has therefore taken the po-
sition that it wants to source lithium in
Results from phase one drilling at Ly- close proximity to European markets and
nas Find included the likes of 20m @ what better place to be than Portugal,
2.61% lithium, with the company on track which according to USGS, is Europe’s
to complete follow-up phase two drilling No.1 lithium producer.
totalling 4,000m soon.
Furthermore, Portugal is highly touted
Lynas Find is near Pilbara Minerals as a mining jurisdiction, with the country
Ltd’s Pilgangoora project, which hosts ranking in the top 10 of all countries in
80mt @ 1.26% lithium, and is being the policy perception index in the Fraser
Institute 2015 Survey.

AUSTRALIA’S PAYDIRT JULY 2016 PAGE 109

SIGNED, SEALED AND DELIVERED

DRA Pacific is set to design the processing facilities for Intertek follows pipe
Altura Mining’s Pilgangoora lithium project dream in Northern
Australia
DRA to design another side facilities for the development of a
lithium plant in WA tug haven behind Anderson Point berths Intertek has been selected to provide
1 to 3 and provide towage services for third party inspection services to support
DRA Pacific has been awarded the an initial term of 15 years, set to begin the procurement of Jemena’s Northern
preliminary engineering and design from 2019. Gas Pipeline (NGP) project in the North-
contract for the proposed processing fa- ern Territory.
cilities at Altura Mining Ltd’s Pilgangoora The licence and tug facilities will pro-
lithium project in the Pilbara. vide additional capacity and an alterna- The 623km planned pipeline connect-
tive supplier of tug services for all users ing Northern Australia’s vast gas fields to
Altura is looking to build a processing of Port Hedland port. the east coast gas market will run from
facility with feed capacity of 1.4 mtpa for Tennant Creek to Mount Isa in Queens-
the production of spodumene concen- “The introduction of choice and com- land and cost about $800 million to de-
trate grading about 6% lithium oxide. petition through the award of a second velop.
licence will benefit all users of the port
First concentrate production is slated and will ensure Fortescue can provide First gas is expected to flow in 2018.
for Q3, 2017. long-term, sustainable towage services Intertek will provide critical expertise at
crucial to meeting the demands of our the point of fabrication, deploying a team
DRA will be responsible for all engi- customers,” Fortescue chief executive of inspectors to oversee the manufacture
neering disciplines to a 30% level of de- Nev Power said. of the pipework, including quality of weld-
tail, together with capital and operating ing, steel composition, compliance with
cost estimates to a 10% level of preci- Less than $US200 million will be re- Australian standards and adherence to
sion. quired to develop the infrastructure and engineering specifications.
operating vessels and will be incurred Jemena, jointly owned by the State
“This assignment adds to DRA’s con- during FY2017 and FY2018. Grid Corporation of China and Singapore
siderable track record in the design and Power, was chosen by the Northern Ter-
delivery of hard rock lithium projects, es- Iron ore exports from Port Hedland ritory Government in November 2015 to
pecially in the application of heavy medi- topped 435mt in FY2015, during which build and operate the North East Gas In-
um separation systems and other gravity there were almost 6,000 vessel move- terconnector (NEGI), now known as the
techniques,” DRA Pacific director Chad ments through the port. NGP.
Botha said.
Royal appointment for
DRA previously delivered the benefi- FinnAust at Pituffik
ciation plant for Galaxy Resources Ltd at
the Mt Cattlin lithium project near Raven- FinnAust Mining plc has appointed
sthorpe. Royal IHC to provide primary support
services at the Pituffik titanium project in
Greenland.

Royal IHC and FinnAust have started
working on an optimised development
solution that includes the former’s in-
house wet mining equipment, as well as
a high-level cost estimation for Pituffik.

Fortescue licenced to Royal IHC will provide primary support services to the Pituffik
tug more boats titanium project in Greenland

Fortescue Metals Group Ltd subsidiary
Pilbara Marine Pty Ltd has won the ten-
der for a second towage licence at Port
Hedland port.

The licence was awarded by the Pil-
bara Ports Authority and West Austral-
ian Transport Minister Dean Nalder last
month.

Under the terms of the licence, Pilbara
Marine will construct marine and land-

PAGE 110 JULY 2016 AUSTRALIA’S PAYDIRT

This work will include the appropri- RCR Tomlinson will deliver a $35 million power station for Rio Tinto at Cape Lambert
ate mechanisms for the delivery of a
“proof-of-concept” bulk sample, which
is planned for 2017, as well as expand-
ing the operation into a potential multi-
decade operation supplying low impurity
ilmenite.

Royal IHC is a globally recognised
player with a long history of in-house ex-
pertise operating in locations throughout
the world in both deep and shallow ma-
rine environments.

“Their [Royal IHC] level of proven un-
derstanding and global experience op-
erating efficient and advanced dredging
equipment in all types of environments
complement the team we have built as
we continue to work through the permit-
ting of this project,” FinnAust chief execu-
tive Roderick McIllree said.

Centrex cuts Swiss missioning support for a zinc and lead pany Ltd, a subsidiary of Gold Fields Ltd.

some cheese concentrator and associated plant. The extension will see Macmahon con-
MMG will be responsible for the plant tinue to provide a fleet of open-cut min-

Centrex Metals Ltd has appointed design and the supply of key processing ing equipment and associated services

Swiss licensor and engineering firm Ca- equipment. to the St Ives gold mine near Kambalda

sale to complete a feasibility study for RCR will use its in-house engineering Revenue from the contract extension

the ammonia and nitric acid plants at its team to deliver a $35 million power sta- is expected to be about $2.5 million a

Oxley potassium project in Western Aus- tion for Rio Tinto Ltd at Cape Lambert month.

tralia. iron ore operation in Western Australia. Meanwhile, industrial action by Mac-

A scoping study for an integrated po- The scope of work includes overall mahon workers at the Ewekoro project

tassium mine and fertiliser facility is be- project management, construction and in Nigeria has been resolved following a

ing completed by Centrex, with Casale’s commissioning of an 80MW open-cycle dispute over end-of-project redundancy

contract of work to be included in a PFS. power plant. Work on this contract has payments.

Having designed over 150 ammonia also started and is due for completion in Macmahon was demobilising from site

synthesis reactors using its own tech- October 2017. at the time of print. The company’s work

nology and with vast experience in Aus- Design and procurement of major at the Calabar project in Nigeria was un-

tralia, Casale was a standout choice for equipment items for the power station affected by the industrial action at Ewe-

Centrex. will be supplied by Rio Tinto. koro.

It is expected that Casale will finish the

ammonia and nitric acid plant facility in Macmahon staying put Decmil and QGC go
the second half of the year. at St Ives longer in the Surat Basin

RCR Tomlinson powers Macmahon Holdings Ltd has been Decmil Group Ltd subsidiary – Decmil

up after contract wins awarded a 24-month extension of its Australia Pty Ltd (DA) – has secured a
contract with St Ives Gold Mining Com- new two-year framework agreement with

Diversified engineering and in- QGC Pty Ltd for brownfields

frastructure group RCR Tomlinson projects in the Surat Basin,

Ltd has won two new construction Queensland.

contracts valued at a combined DA has been working with

$108 million. QGC in the Surat Basin for the

A $73 million contract for the past five years, with the latest

construction of a processing plant agreement spanning the rest of

at Dugald River project, near 2016 to April 2018.

Cloncurry in Queensland, remains The scope of work under the

subject to MMG Ltd finalising fi- framework agreement will in-

nancing arrangements. However, clude construction activities,

work has begun and is scheduled structural, mechanical and pip-

for completion in October 2017. ing services across a number

RCR’s scope of work includes of QGC’s projects in the Surat

project management, fabrication Basin.

and supply of various structural

steel, mechanical and E&I com- Gold Fields has extended Macmahon’s stay at St Ives for a

ponents, construction and com- further two years

AUSTRALIA’S PAYDIRT JULY 2016 PAGE 111

COMINGS AND GOINGS

IMX Resources Ltd has ap- 13 years with the company Sarah Smith is the new acting group executive, tech-
pointed former Focus Miner- to pursue other business in- company secretary at nology and innovation to suc-
als Ltd chief executive Camp- terests. Latin Resources Ltd. Smith ceed Greg Lilleyman. After 25
bell Baird as its managing replaces Anthony Begovich, years of service, Lilleyman
director following the spin out Atlas Iron Ltd has ap- who has resigned as com- will leave Rio Tinto where he
of the Chilalo graphite project pointed Eugene Davis as pany secretary and chief fi- has been a significant contrib-
into Graphex Mining Ltd. Nick chairman, replacing Cheryl nancial officer for personal utor in developing the compa-
Corlis has stepped down as Edwardes. Davis joined the reasons. ny’s world class operations in
an executive director, but will board in May as part of the the Pilbara.
stay on as technical manager. company’s financial restruc- Anthony Begovich
turing agreement. Edwardes Graham Duncan has re-
Gold Fields Ltd has ap- will continue as a non-execu- Barry Bolitho has replaced signed as a director of
pointed Terence Good- tive director. Michael Ruane as non- Waratah Resources Ltd.
lace as an independent non- executive chairman at Echo
executive director. Goodlace Kevin Wilson has resigned Resources Ltd. Ruane has Donald de Boer has re-
is the current chief executive as managing director of stepped down to focus on placed Francesco Gi-
of Impala Platinum Holdings Rey Resources Ltd. other business interests. rotto as company secretary
Ltd. of Broken Hill Prospecting
Gascoyne Resources Ltd Magnis Resources Ltd has Ltd. As a chartered account-
Mark Bennett has resigned has appointed David appointed Cobb John- ant for over 35 years, de Boer
from the board of Inde- Lim as joint company secre- stone as a non-executive di- has extensive experience as
pendence Group NL due to tary. Lim is a member of the rector. Johnstone, a mining company secretary for listed
increased work commitments Governance Institute of Aus- engineer, has had extensive and unlisted companies. De
in his role as managing di- tralia and has over 16 years mining experience in Africa, Boer’s appointment followed
rector of S2 Resources Ltd. of finance and company ad- Asia, Australia and South the announcement of Antho-
Bennett was appointed to the ministration experience in the America. Magnis has also ny Johnston as the new chief
board following Independ- resources sector. added mining finance special- executive of the company.
ence’s completed takeover of ist Len Eldridge as an execu- Johnston replaces Ian Pring-
Sirius Resources in October Moly Mines Ltd has an- tive director, commercial. le, who has retired.
2015. nounced Cathie Wu has
resigned as a non-executive Piers Reynolds has joined Anthony Johnston
Mark Bennett director and Kang Huan Jun Sri Lankan graphite hope-
has retired from the board. ful Bora Bora Resources Ltd Cohiba Minerals Ltd has
Ze Huang (Martin) Cai has Huan Jun was a nominee of as a non-executive director. appointed Mordechai
been appointed company major shareholder Hanlong Benedikt as executive chair-
secretary of Consolidated Tin Mining Investment Pty Ltd. Global Gold Holdings Ltd man.
Mines Ltd, in addition to his has appointed Michael
current role as chief financial Damian Spring is the new Soucik and Leonard Math as Glen Jardine will join To-
officer, replacing Kevin Hart. chief operating officer non-executive directors, while rian Resources Ltd as an
at KBL Mining Ltd. Spring is Andrew Kwa, Krishnan Ra- independent non-executive
Gary Johnson has been a mining engineer with over masamy and Dato David Tan director. Jardine has previ-
appointed chairman of 20 years’ experience operat- have retired from the board. ously managed various min-
Platypus Minerals Ltd follow- ing underground and open pit ing companies, including Li-
ing the company’s acquisition mines in New Zealand, Aus- Syrah Resources Ltd has onOre Australia Pty Ltd.
of Lepidico Ltd. Johnson is tralia, Mexico and Argentina. appointed Dr Christina
the former managing director Lampe-Onnerud as a non- Co-founder of Brierty Ltd,
of Norilsk Nickel Australia and There has been a change executive director. Dr Lampe- Alan Brierty, has retired
serves on the board of Pot- of leadership at De Beers Onnerud, founder of Boston- as a non-executive director of
ash West NL and Hard Creek Group with Anglo American Power Inc, is a US-based the civil construction and min-
Nickel Corp. plc naming Bruce Cleaver authority in battery system ing services provider. Brierty
as chief executive. Cleaver innovation and design. and his wife Kylie founded the
Ian Burston has resigned as will replace Philippe Mellier business in 1981.
a non-executive director of who has stood down after five Rio Tinto Ltd has appointed
Mincor Resources NL after years in the position. Mean- Stephen McIntosh as the
while, the company has add-
ed Duncan Wanbald as chief
executive of the base metals
business to boost the strategy
and business development
portfolio.

Chris Jewell will fill the
position of interim chief
financial officer of Genesis
Energy Ltd.

PAGE 112 JULY 2016 AUSTRALIA’S PAYDIRT

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LEFTFIELD

Wheels in motion for le Grand
défi Pierre Lavoie

Rio Tinto Ltd has been at orphan disease research and Lavoie has partnered with Quebec
the heart of le Grand défi projects promoting healthy life schools to help kids make healthier life
Pierre Lavoie mission as the habits. choices and make good habits a normal
lead sponsor this year. daily occurrence through physical activ-
The 60-hour, 1,000km jour- ity, healthy eating and perseverance at
In 2008, le Grand défi Pierre ney was being completed at school.
Lavoie became the largest the time of print, with organis-
health-related event ever or- ers hoping to eclipse the $1.9 The mission was launched by Pierre
ganised in Quebec, Canada, million raised from the cycling Lavoie, who sadly has lost a son and
encouraging young people to event in 2015. daughter to lactic acidosis, a rare heredi-
adopt healthy life habits. tary illness especially present in the Sa-
In total, le Grand défi Pierre guenay–Lac-Saint-Jean region.
Last month, as part of le Lavoie raised $3 million last
Grand défi, cyclists took to the year. For more information visit: www.legd-
road for a marathon ride stretching from To achieve its goals of promoting pl.com/en/
Saguenay-Lac-Saint-Jean to Montréal healthy life habits among young peo-
to raise money for the Grand défi Pierre ple and supporting hereditary orphan
Lavoie Foundation to support hereditary disease research, le Grand défi Pierre

INDEX

African Energy 5 Echo 112 Magnis 5, 112 Saracen 7, 38-40, 66
Alloy 34 Sheffield 46-47
Alto 61 European Metals 94 Metalicity 16 Sherritt 98
Altura 25, 110 Silver City 7
Anglo American 91, 112 Everlight 12, 19 Metals X 12, 55 Sipa 68
AngloGold 40, 57, 91 SolGold 77, 83
Antipa 54-55 Evolution 4, 28, 40, 50, 67 MMG 16, 77, 80, 88, 111 Soon Mining 5
Arafura 72 South32 11, 16
Ascot 91 Excelsior 28 Middle Island 28-29, 60-62 St Barbara
Atlas Iron 24-25, 112 St George 12, 39, 50-51
AusQuest 97 Mincor 29, 44, 112 Straits 42-43
Azumah Sumitomo 70
Azure 5 FinnAust 110-111 Mineral Resources 19, 26-27 SurMinera 53
89 First Quantum 79, 82, 94 Syrah 12
Focus Minmetals 92 5, 112
Fortescue 112
78, 110 Mirabela 29

Mod 5

Moly Mines 112

Galaxy 6, 19, 20, 22-23, 110

Ganfeng 19, 26-27 Neometals 19, 20, 26-27

Gascoyne 112 Newcrest 40, 54-55

Barrick 40, 64, 87 General Mining 22-23 Newmont 92

Base 5 Genesis 112 Norilsk 107, 112 Talga 109
Talisman 68, 69
BC Iron 58 Global Gold 112 Northern Star 4 , 7, 28, 40, 50, 69 Talison 19, 26
Teck
Beadell 6 Glencore 91 Norton 64 Teranga 16
Tintinia 5
BHP Billiton 42-43, 56, 80, 90, 91 Gold Fields 40, 111, 112 Torian
Toro Energy 70
Black Oak 60 Gold Road 6, 28, 52-53, 57 OreCorp 5, 28 Trafford 112
Orinoco 95 Troy 30
Black Ridge 106 Gran Colombia 91 Orocobre 19 91
60, 62, 86
Blackham 28 Graphex 5, 11-12, 112

Bora Bora 112 Greenland Minerals 108

Boss 36-37 Gryphon 5 Pacific Hunt 106

Broken Hill Prospecting 112 Pacifico 91

Burey 5 Hanking Gold 12 Paladin 55
Hard Creek 112
Hot Chili 85 Panoramic 12, 29 Uranium One 36

Canadian Lithium 20 Perseus 5

Centaurus 55 Pilbara Minerals 6, 20, 24-25, 109 Vale 76, 78, 80
Ventnor 68
Centrex 111 Iluka 4, 14-15, 46 Pioneer 6-7 Vimy
58-59
Chinalco 92 Impala Platinum 112 Platypus 94, 112

CITIC Pacific 64 Imperial 83 Potash West 112

CMP 85 IMX 5, 11, 112 Waratah 112

Cohiba 112 Independence 49, 56-57, 112 QGC 111 Wattle 37
Queensland Nickel 29
Condoto 90, 91 Intrepid 83 West African 5

Consolidated Tin 112 Western Areas 4, 5, 29, 42, 56,

Continental Gold 91 Kalahari 37 Regis 40 69
Kefi 102 Reservoir 83
Cradle 36-37 Kibaran Resolute Woodside 106
5 Rey 5
Crusader 80, 94, 95 Rio Tinto 112
Rox 54-55, 64, 111, 112
CuDeco 64 16, 34 Zahena 97
Zijin 64
Lago Dourado 95
Dacian 40, 53, 66 Latin Resources 19, 94, 112 S2 Resources 11, 48-49, 112
Dakota 20, 25, 109 LionOne
Dark Horse Lithium Power 112
Doray 86, 96 7, 12
32-34
Sandfire 4, 7, 68-70

PAGE 114 JULY 2016 AUSTRALIA’S PAYDIRT



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