#Official Mining Thread

[UrbanSG]

Iron Road triples resource at Central Eyre project
Meredith Booth
From: The Advertiser June 30, 2010 2:37PM

Iron Road has tripled its reported ore resources at its Central Eyre project in South Australia.
Resources at the project now stand at 328 million tonnes (Mt), triple its previous estimate, after recent drilling.

"Test work results continue to return a high quality concentrate averaging 70 per cent iron with low levels of impurities,'' the company said in its statement to the Australian Securities Exchange.

Investors failed to react positively on a negative trading day with shares down 5 per cent to 57c at 3 pm AEST.

Iron Road's pre-feasibility study is investigating a 10Mt a year concentrate export operation scheduled for completion early next year.

[crawf]

I read somewhere that Burra used to be the "newcastle" of Australia in terms of population, in the 1800's

indeed! and SA was near bankruptcy (circa 1840) when copper was discovered at Burra (and Kapunda slightly beforehand). It's population at the time grew to be greater than Brisbane & Perth combined!

Read more here ==> http://www.visitburra.com/History_of_Burra/

I've got a soft spot for Burra, it's a pretty little town filled with many beautiful stone buildings and nice looking village centre. While there isn't much scenery and feels like your in the middle of nowhere, it is still a place worth visiting.

This mining project sounds very promising, not only would it bring extra dollars to the state economy; it would also bring much needed investment and residents back to the region. The downside is much of the historic Monster Mine site could be at the risk of being destroyed.

So I'm 50/50.

Need more information on the proposal

[Wayno]

Appears the RSPT is taking shape

Extract from AdelaideNow:

Details of new resources taxation arrangements:
* Iron ore and coal will be subject to a new profits-based minerals resource rent tax at a rate of 30 per cent. Other commodities will not be included.
* The cut-in rate for the tax will be the long-term bond rate, plus seven per cent - making it about 12 per cent.
* Small miners with resource profits below $50 million per annum will not be subject to the tax.
* The petroleum resource rent tax regime, which currently only applies to offshore petroleum projects, will be extended to cover all oil, gas and coal seam methane projects, in onshore and offshore Australia. The tax will apply at a rate of 40 per cent.
* The new arrangements will apply to only 320 companies, down from the 2500 the resource super-profits tax would have affected.
* The new arrangements reduce planned revenue from the resource super-profits tax by $1.5 billion.
* To offset that loss of revenue, company tax rate will be reduced only to 29 per cent, not the 28 per cent planned.
* The resource exploration rebate has been dropped.

If i'm reading this correctly, it means that the likes of ODX (gold, copper, uranium) will not be subject to the RSPT.

[skyliner]

Wayno, that's how I read it when the 'big Julie' spoke about it this morning in 'breaking news'. So hopefully ODX will get done.

SA - STATE ON THE MOVE

[Wayno]

Sitting in front of the TV a few nights ago (in a semi-conscious slumber - thank you oh blessed alcohol), i watched a TV program (Stateline?) which discussed BHP & ODX and how they have been purchasing large farming properties around the mine, but i can't find any online reference

I'm keen to find out which properties they purchased, and whether this gives ODX vastly increased artesian water rights. I'm fairly sure it's a 'future proofing' play to avoid farmers complaining about tainted water supplies once ODX gets underway with its open cut expansion.

Can anyone point me in the right direction?

[Aidan]

Sitting in front of the TV a few nights ago (in a semi-conscious slumber - thank you oh blessed alcohol), i watched a TV program (Stateline?) which discussed BHP & ODX and how they have been purchasing large farming properties around the mine, but i can't find any online reference

I'm keen to find out which properties they purchased, and whether this gives ODX vastly increased artesian water rights. I'm fairly sure it's a 'future proofing' play to avoid farmers complaining about tainted water supplies once ODX gets underway with its open cut expansion.

Can anyone point me in the right direction?

I don't think it would've been Stateline. Have you tried Lateline Business?

[Wayno]

I don't think it would've been Stateline. Have you tried Lateline Business?

Thanks Aiden, i searched lateline but could not find any recent stories on ODX

[monotonehell]

I don't think it would've been Stateline. Have you tried Lateline Business?

Thanks Aiden, i searched lateline but could not find any recent stories on ODX

Landline?

[Wayno]

Landline?

nope maybe i was dreaming?!?

[Aidan]

Landline?

nope maybe i was dreaming?!?

It would help if you could give us a better idea of when it was shown.

[Wayno]

yes - sorry about that Aiden. It was some time between last thursday (july 1) and sunday (july 4). I've been searching and searching but can find no references

[Wayno]

This is China working to lock down reliable iron ore supplies, and it's significant news for the SA mining industry!

From AdelaideNow:

THE largest ever Chinese investment in the South Australian resources sector was locked in yesterday, with a $101.5 million payment to Adelaide company Centrex Metals.

Wuhan Iron and Steel Corporation paid Centrex the money as the first tranche of up to $261 million to be spent developing five tenements on the Eyre Peninsula.

The companies aim to develop two, five million tonne a year iron ore mines on the peninsula over the next four to five years.

WISCO will earn a 60 per cent stake in the joint venture covering the projects through the payments.

It will have to then contribute a further $51 million in one year's time to maintain its stake, and another four, $27 million payments once the exploration targets are met.

The deal was originally expected to be locked down by December last year, however it was delayed by a need to clarify arrangements about Lincoln Minerals' non-ferrous metal rights over the tenements, Centrex chairman David Klingberg said.

Dr Klingberg said the deal was a "company maker" for Centrex. "This deal is pretty significant news for South Australia," Dr Klingberg said. "We think it's certainly significant news for the Eyre Peninsula."

"There is some $75 million going into exploration and feasibility studies to develop projects."

The joint venture is also developing a proposal to build a bulk commodities port at Sheep Hill near Tumby Bay and expects to submit a development application for the project in the next few weeks. That port could be used to export iron ore from another of Centrex's projects - the Bungalow deposit which it is developing in a deal with Baotou Iron & Steel Group worth up to $40 million.

Centrex is also developing its wholly-owned Wilgerup project on the peninsula, near Lock, which will export modest tonnages through Port Lincoln.

Centrex will be running up to six diamond exploration rigs at the $261 million project, as well as a number of less-powerful rigs, making it probably the largest current exploration program in the state.

Centrex managing director Gerard Anderson was on leave and not present at the signing ceremony.

WISCO is an integrated mining and steel-making company with a capacity of 30 million tonnes per year.

Centrex shares were in a trading halt at 39.5c yesterday.

[skyliner]

Anyone picked up outflows for ODX after J Gill changed the ming tax? I have read in AFR about scaling down the size from $20b opencut to underground mining as well. (Possible proposition only through one Marius Kloppers). Affected by WA opening up uranium mining as well. Hope none of this occurs but goes ahead as originally put.

SA - STATE ON THE MOVE

[Wayno]

Anyone picked up outflows for ODX after J Gill changed the ming tax? I have read in AFR about scaling down the size from $20b opencut to underground mining as well. (Possible proposition only through one Marius Kloppers). Affected by WA opening up uranium mining as well. Hope none of this occurs but goes ahead as originally put.

BHP has been adamantly denying any change of plans (away from open cut) in several recent media reports. The revised tax regime does not impact ODX at all.

Rough timeline remains as follows:
* Late-2010: BHP responds to public EIS concerns
* Later-2010: BHP provides open cut plans to Govt for review
* Early/Mid-2011: Govt & BHP agree way forward
* Late-2011 (or later): BHP gets going on open cut expansion (all being well)

[Will]

Great news!

From the Advertiser:

OZ Minerals approves mine expansion

Christopher Russell, Business Editor From: The Advertiser July 15, 2010 2:14PM


THE Prominent Hill copper-gold mine in South Australia's Far North will be extended underground.
Mine owner OZ Minerals announced today its board had decided to proceed with the expansion from the current open pit operation.

The OZ board committed $135 million in pre-production expenditure to develop the underground operation.

"The decision to proceed has been able to be made in light of the decision to retain the existing taxation and royalty arrangements for copper producers," managing director Terry Burgess said, in reference to the Federal Government's changed mining tax plans which will target only iron, coal and oil and gas producers.

"We are very pleased to be commencing the Western Copper project which is a new phase of the Prominent Hill project.

"In developing this underground mine we are continuing to maximise the value we extract from Prominent Hill.

"The Western Copper project is a high grade Resource which will increase production from Prominent Hill.

"It also gives us a better platform from which to test the prospective near mine environment with underground drilling in order to further increase the known resources."

Work on the underground project will begin immediately with a contract to be awarded for the building of ventilation shafts.

Mine development is targeted to begin in October with first ore scheduled to be produced in the last quarter of next year.

Production would reach full capacity by the second half of 2012.

The underground reserve is estimated to contain 189,000 tonnes of copper and 114,000 ounces of gold.

Of high-grade, it is expected to be add 25,000 tonnes of copper and 12,000 ounces a year of gold a year to Prominent Hill's production.

It will be processed through the existing concentrator plant.