RESOURCE Volume 5, Issue 5
GLOBAL NETWORK
Mining, renewable energy and oil & gas worldwide
125
YEARS OF GOLD
IN KALGOORLIE
Commemorating the original discoveries WWW.RESOURCEGLOBALNETWORK.COM
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In June 1893, three hopeful Irish gentlemen by the names of Patrick ‘Paddy’ Hannan, Thomas Flanagan and Daniel Shea were prospecting for gold around 24 miles Northeast of Coolgardie – the hub of Western Australia’s nascent gold mining industry at the time. They soon found out that they were standing above one of the richest gold deposits in the world, and one that is still producing gold to this day – 125 years after the trio’s groundbreaking discovery. After the three men had recovered an astonishing 100 ounces of alluvial gold, Hannan was sent back to Coolgardie to stake a mining claim for the area that was quickly christened Hannan’s Find, before the State Government renamed the subsequent town Kalgoorlie. Today, the city of Kalgoorlie-Boulder owes its existence to the gold discoveries of 1893, which sparked a major gold rush and the development of a mining industry that still serves as the economic base of the region today.
Executive Team Editor Jacob Ambrose Willson Content Manager Michelle Madureira Content Director (APAC and Americas) David Hunter Creative Director Hugo Currie ICT Director Stuart Clark Managing Director Simon Curran
In this issue, RGN joins Kalgoorlie-Boulder in celebrating its 125th anniversary, as city Mayor John Bowler takes us through the commemorative events that have taken place over the year and Scott Wilson, president of Eastern Goldfields Historical Society, spins the yarns of those heady 1893 days. Continuing with the Australian mining theme, we feature no less than seven ASX-listed companies, including Queensland-based New Hope Group and WA gold explorer Explaurum, as well as two thriving Australian mining services firms: Cougar Mining and Kerman Contracting. We hope you enjoy this issue and encourage you to connect with us on email, Facebook and Twitter. Thanks for reading! Jacob Ambrose Willson, Editor
Jacob Ambrose Willson
RGN is published by Anderson Murray Media: a diverse media and information services company focused on creating and distributing engaging content to business leaders across the globe. Anderson Murray Media Fulham Green, 69-79 Fulham High Street, Main Reception, Bedford House, London SW6 3JW Tel. +44 (0)207 148 5630
VISIT US ONLINE AT WWW.RESOURCEGLOBALNETWORK.COM
CO
125 YEARS OF GOLD MINING IN KALGOORLIE
NEWS 10 Global resources news Our selection of mining, oil & gas and renewable energy stories from the last month
COVER STORY 18 125 years of gold mining in Kalgoorlie Treasuring Kalgoorlie’s core spirit
ASSOCIATIONS 28 Clontarf Foundation Striving to improve the life chances of young Aboriginal and Torres Strait Islander men
MINING 42 New Hope Group A diversified majority Australian owned energy company 54 Infinity Lithium Developing lithium-tin production in Europe to power a renewable future
ONTENTS
NEW HOPE GROUP
INFINITY LITHIUM
CONTENTS
TIETTO MINERALS 64 Tietto Minerals Fast tracking the development of gold assets in West Africa 76 Adriatic Metals Taking on two advanced stage base metals projects in Bosnia and Herzegovina 88 Explaurum Turning the Tampia Gold Project into a new gold district in Western Australia 100 Six Sigma Metals A new name and a new age commodity focus in Zimbabwe 112 Barra Resources Targeting two high demand commodities in Western Australia
MINING SERVICES 128 Cougar Mining Group A one-stop shop for Australia’s underground coal mining sector 140 Kerman Contracting One of Western Australia’s most experienced industrial construction contractors
CLASSIFIED ADVERTISING 150 Classifieds
APPOINTMENTS & EVENTS 152 Appointments Notable appointments in the resources industry from the past month 153 Events Our pick of the top mining, oil & gas and renewable energy events happening around the world in the months to come
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NEWS | Brookfield Multiplex MINING
GLOBAL RESO
Our selection of mi renewable energy news
Resource Global Network 11
OURCES NEWS
ining, oil & gas and s from around the world
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NEWS
BHP INCREASING FOCUS ON BATTERY METALS: DIGGERS AND DEALERS 2018 BHP has revealed that it is ploughing more investment into the development of nickel and cobalt mine development and production, as the miner looks to capitalise on the looming electric vehicle (EV) boom. The world’s largest mining company is building what is expected to be the world’s largest battery-grade nickel sulphate plant in Western Australia, which will enter production in April 2019. With a capacity of 100,000 tonnes of nickel sulphate, the facility will account for the production of around 22,000 tonnes of nickel – which is in increasingly in hot demand in new battery technologies, as the metal allows EVs to travel further on a single charge.
“I believe that we have timed our entry to the battery and nickel sulphate markets well – interest by customers and potential customers is significantly exceeding expectations,” said BHP asset president Eduard Haegel at the annual Diggers and Dealers conference in Kalgoorlie, WA. BHP is also accelerating plans to boost its cobalt output and is going ahead with a cobalt sulphate production pilot plant, which could eventually produce a battery-grade nickel sulphate product with low cobalt sulphate content.
Resource Global Network 13
MINERS IN WESTERN AUSTRALIA STUMBLE ON GOLD-ENCRUSTED ROCKS WORTH $5 MILLION Canadian mining firm RNC Minerals has revealed the discovery of gold bearing rocks in Western Australia that are believed to be some of the biggest in mining history. Two huge quartz rocks encrusted with gold were found in RNC’s Beta Hunt mine in the town of Kambalda, an area of Western Australia’s famous Goldfields region, 60 km South of Kalgoorlie. The largest rock weighs 95 kg with an estimated gold content of 2,440 ounces and worth almost $US3 million while a second rock, valued at $1.9 million, weighs 63 kg with
an estimated gold content of 1,620 ounces. As a result of the discoveries, RNC was able to produce 9,250 ounces of high grade gold from a single blast, which equates to roughly $10 million worth of gold. Miners in Australia often extract as little as 2 g/t of gold from rock, but RNC said it had extracted 2,200 g/t. “These discoveries highlight the high grade gold potential of Beta Hunt,” said Mark Selby, president and CEO of RNC. The Beta Hunt mine has previously operated as a nickel mine. RNC’s share price was up 94% on the TSX in the wake of the news.
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NEWS
CWP JOINS WITH PARTNERS GROUP TO DELIVER 1.3GW AUSTRALIAN RENEWABLES PLATFORM Australian clean energy developer CWP Renewables has joined with Swiss investment manager Partners Group to deliver over 1.3GW of solar, wind and battery projects across New South Wales. Partners Group has pledged to invest AUS$700 million in the development of the large-scale renewable energy platform. The group’s partnership with CWP goes back to 2016, when it announced a $250 million investment into the 270MW Sapphire Wind Farm in NSW, which is set to be completed in October 2018. “When we invested in Sapphire Wind Farm, one of the key attractions was the project’s potential to anchor an Australian renewable
energy platform,” said Benjamin Haan of Partners Group. Work on the next NSW-based project under the platform – the 135MW Crudine Ridge Wind Farm – is set to be completed by September 2019 and has a long-term PPA for 50% of its output signed with Powershop. Other pipeline projects combine wind, solar and battery storage assets, with annual generation from the portfolio set to be equivalent to around 50% of the coal-fired Liddell Power Station, according to CWP. “These projects will help with the transition from fossil-fuelled electricity in the state,“ said CWP Renewables CEO Alex Hewitt.
Resource Global Network 15
WOOD MACKENZIE BRINGS PEAK OIL FORECAST FORWARD TO 2036 Peak oil demand will arrive in 2036 according to energy consultant Wood Mackenzie, with electric vehicles and autonomous vehicles set to rapidly alter the world’s transportation sector. Speaking to the Financial Times, Wood Mackenzie’s head of crude oil research Ed Rawle said: “Autonomous electric vehicles or robo-taxis will really change the face of transport in the coming decades.” The UK-based energy advisory believes that autonomous EVs and robo-taxis will become commercial by 2030 before gaining marketwide acceptance by 2035. Each autonomous EV is forecasted to displace more oil demand than a conventional EV, according to Wood Mackenzie.
“They will be on the road far more as they are autonomous, displacing a disproportionate amount of oil-based transport,” said Rawle. The biggest curb on oil demand over the next ten years will be fuel efficiency, and Wood Mackenzie sees gasoline demand as the first oil-based fuel to reach its peak in around 2030. Several organisations have predicted different dates for this milestne, with BP anticipating peak oil at some point in the 2030s, while research from the Boston Consulting Group (BCG) has even suggested it could arrive within eight years.
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COVER STORY | 125 years of gold mining in Kalgoorlie
Resource Global Network
125 YEARS OF GOLD IN KALGOORLIE
Commemorating the original discoveries by Jacob Ambrose Willson
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COVER STORY | 125 years of gold mining in Kalgoorlie
The first Australian gold rush is widely considered to have begun in 1851 after a number of payable gold discoveries were made in New South Wales and Victoria. Stories of instant riches and unimaginable wealth spread across the world and soon boat loads of hopeful prospectors from Europe began to rock up on the East coast and search for that elusive pot of gold. By the late 1880s the gold rush had turned into a cavalcade, with prospectors’ spilling into Queensland and eventually over into the vast Northern expanses of Western Australia before coming down into what is now known as the Eastern Goldfields. By 1892 the first rich gold specimens from the Eastern Goldfields were uncovered in Coolgardie, which quickly became the centre of mining activity in WA. One year later, three Irish prospectors by the names of Patrick ‘Paddy’ Hannan, Thomas Flanagan and Daniel Shea arrived in the region. At the time, little did they know that they
Prior to 1983 Hannan and Flanagan had been
were about to discover one of the world’s
partners in Coolgardie, which was already a
richest gold deposits, in doing so etching
prolific gold district at this stage. But along
their names into the history of Kalgoorlie-
with Shea, they soon got wind of rumours
Boulder, which continues to bear the legacy
of another gold rush in the region and went
of these small-time prospectors. This year
about prospecting near the present site of Mt
the city is celebrating the 125th anniversary
Charlotte.
of the trio’s famous discovery.
Resource Global Network
“Hannan, Flanagan and Shea were on the way
“They decided to give the area a good
to a rush,” explains Scott Wilson, president
prospect and didn’t let on to the other chaps
of the Eastern Goldfields Historical Society.
in the party, making an excuse to hang back.
“While they were trying to find where this
They prospected the region and kept finding
rush was, Flanagan stumbled onto a few
more gold until they had uncovered over 100
specks of gold and induced the others to stay
ounces of alluvial gold, at which point they
behind.
went to register a claim.”
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COVER STORY | 125 years of gold mining in Kalgoorlie
At the time, mining laws demanded that
Flanagan and Shea are less evident across
prospectors stake a claim otherwise the area
Kalgoorlie, which reveals how history has
would remain fair game for exploration,
been kind to the man who staked the claim
so they sent Hannan back to Coolgardie to
and less so to the other individuals in the
register the claim. This simple decision was
party. This is something that Bowler has
to create an enduring legacy for Hannan that
sought to address during the 125th year
remains evident across the city to this day.
celebrations across the city.
Hannan’s legacy
“The first gold was actually found by Tom
The main street in Kalgoorlie is called Hannan
Flanagan, but Paddy got all the recognition
Street, a statue of Hannan stands outside
because he was the most literate of the three
the town hall and the local beer is even
and was sent back 24 miles to Coolgardie to
named after the Irishman - a very fine beer
peg the reward claim,” reveals Bowler.
according to John Bowler, the current Mayor of Kalgoorlie-Boulder.
“Without denigrating or diminishing any of the achievements of Paddy Hannan, we’ve
While Hannan’s name maintains a strong
tried to give his two partners a bit more
presence in the city, traces of his friends
credit as they each have an equal claim to fame.”
Resource Global Network
Celebrations that have taken place so far this
After the plaque unveiling, the city council
year in the city include a plaque unveiling in
hosted a big evening ball that celebrated the
the apparent location where the trio pegged
occasion in true ‘gold rush’ fashion – Bowler
their first reward, which took place on Friday
recalls how more beer was consumed than
15th June - 125 years to the day of that
needed over the night, which was likely the
illustrious moment.
case for Hannan and co on the evening of their discovery.
Like most historical yarns, the exact location of the gold discovery has been
“Throughout the year there has been a lot of
hotly contested with plenty of conjecture
events that we have tagged with the 125th
attributed to the story. However, Bowler
anniversary, so there is a really good feeling
holds third hand evidence as to the location
in the town at the moment,” says the mayor.
of that first pegging of gold. Returning to those heady days of 1893, the “Paddy Hannan told a local editor and labour
Irish trio’s discovery sparked an avalanche
member of parliament where the discovery
of prospecting activity in the area, which
was down a laneway. That editor told Henry
was quickly christened Hannan’s Find before
Mills, a local historian, who told me as an old
the name Kalgoorlie was adopted from
man.”
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COVER STORY | 125 years of gold mining in Kalgoorlie
ResourceGlobal GlobalNetwork Network 25 Resource the Wangai word Karlkurla or Kulgooluh,
“Pearce and Brookman weren’t your average
meaning ‘place of the silky pears’.
Hannan, Shea and Flanagan figures, who wanted to stumble on a big nugget and go
“After the initial discovery, prospectors were
home, kiss the wife and live happily ever
raking over the surface and finding gold
after,” Wilson quips. “These guys had a clear
everywhere in Kalgoorlie,” says Wilson. “Some mission to secure ground for the syndicate.” of the prospectors worked out that the gold was in the roots and the coarse veins of
According to the legend, Pearce liked the look
the rock, so there were several gold mining
of the iron stone hills, some four to five miles
leases pegged in the area around Hannan’s
Southeast of Hannan’s Find. After receiving
Find.”
a heads up from fellow prospectors in the
Discovering the Golden Mile
region, he went down to a spot and using his geological knowledge and rudimentary equipment was able to identify gold-bearing
Into this bustling hive of activity arrived two
rocks. Within a few days they had pegged out
more important figures only a few weeks
a lease called the Ivanhoe.
after Hannan, Flanagan and Shea’s discovery. Sam Pearce and William Brookman had
“Pearce understood that the iron stone hills
heard about the gold rush in Coolgardie while had gold in them and he was able to find they were prospecting in South Australia,
the veins. He worked out that the gold was
but by the time they had arrived in WA they
scattered around that area, not just on that
were too late to be at the vanguard of the
lease but throughout the lease.”
prospecting in Kalgoorlie. By the time Brookman came back from However, this wasn’t to stop the duo from
pegging the initial claim, Pearce had found
making an enormous discovery that was
the fabulously rich Great Boulder Mine, which
to shape the development of the town and
resembled a major bingo moment for the
the gold industry in a much bigger way than
pair, who quickly pegged the Great Boulder
Hannan’s initial find ever did.
lease.
At the time, Pearce was known as a talented
“They knew the claim was valuable but
prospector who could allegedly ‘smell gold’,
what was to come in the next few years
while Brookman was an entrepreneur and
was beyond their wildest dreams. The
financier type-figure. Together they formed
gold deposit they discovered promised
a formidable duo, acting on behalf of a
phenomenal growth in wealth, not just to
syndicate comprised of 15 members who
their syndicate but for WA and Australia as a
each paid 10-15 pounds to fund Pearce’s
whole.”
exploration.
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COVER STORY | 125 years of gold mining in Kalgoorlie
By the end of 1893, Brookman and Pearce
prospector myself I think about how amazing
had pegged a total of 19 leases in the area
it would be been to be around in those days
which soon became known as the Golden
with all the tools we have today.”
Mile, which is still producing today through the Super Pit – a 3.5 x 1.5 km open pit mine
A glance at Wilson’s recent ancestry reveals
which extends more than 600 metres deep.
that gold is in his blood. His father was a
The Super Pit
prospector before him and this familial passion can be traced back to Wilson’s great
The area has produced over 60 million
great grandfather, who came to Australia
ounces of gold to date and is the 5th
from Scotland to be a prospector during the
biggest gold resource in the world, but most
Victorian gold rushes.
significantly it is widely accepted as the richest square mile in the world with the gold
“I am still out there doing exploration and
mineralisation condensed into a tight area.
small-scale drilling as well as the metal detector. I’ve had a few deals go well so I can
“The phenomenal thing is that Pearce and
put back into the industry and hopefully have
Brookman pegged some of the best ground
my own little discovery.”
that was to make up the bulk of the Golden Mile and the Super Pit,” Wilson remarks. “As a
To this day, Kalgoorlie’s mining industry
Resource Global Network remains synonymous with gold exploration
“But the exploration industry is going very
and extraction, however it is not the only
well, and the public has a great appetite
commodity that has been identified amongst
for risk investment and putting capital
the region’s ancient rock formations. Nickel
into junior miners and larger companies,
was discovered in the 1960s just South of
particularly into those who want to come up
Kalgoorlie, which led to a massive boom that
with new mines. Overall, it’s a pretty healthy
is still going strong today.
environment and the towns folk always maintain an optimistic view.”
Nonetheless, gold mining is still the bread and butter of the region with the Super
The new white gold
Pit producing close to 800,000 ounces per
Today, Kalgoorlie stands on the brink of a
annum, although this year’s production will
new commodity boom after the discovery
be set back after a recent pit will collapse.
of several high grade lithium deposits in the region, and with the battery metal taking on
However, it is hoped that this split will
increasing importance in the electrified world
accelerate plans to establish an underground
of today, Kalgoorlie’s future as a key mining
mining facility, which would resemble a major
hub of WA looks secure.
economic boost for the city. However, to this day - 125 years after the first The creation of the Super Pit by Kalgoorlie
discovery of gold in the region - Kalgoorlie is
Consolidates Gold Mines (KGCM), along with
predominantly a gold mining town that has
the improving price of gold on international
been built on the finds of Hannan, Flanagan
markets in the late 1980s, made a significant
and Shea along with Pearce and Brookman.
difference to the fortunes of the town, instigating vital economic growth across the
“Whether you are a local or visitor, I
region.
encourage you all to take advantage of the wonderful events, hosted by the city
“We still tend to feel the ups and downs of
and other local organisations, and join in
the gold price – sometimes it has an effect on
to commemorate the 125th year since the
retail as shops will close only to reopen once
discovery of gold in Kalgoorlie-Boulder,”
again after not long,” explains Wilson.
concludes Bowler.
With thanks to the Eastern Goldfields Historical Society and the city of Kalgoorlie-Boulder council.
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EDUCATION | Clontarf Foundation
Clontarf Foundation
Striving to improve the life chances of young Aboriginal and Torres Strait Islander men
Resource Global Network
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EDUCATION | Clontarf Foundation
The Clontarf Foundation is a nationwide non-for-profit Australian organisation that exists to improve the education, discipline, life skills, self-esteem and employment prospects of young Aboriginal and Torres Strait Islander men. The foundation aims to prevent the build-up of negative feelings such as alienation and anger among vulnerable men through igniting their existing passion for sport and combining this with education. A large network of football academies exist across five states/territories and work in partnership with local schools to deliver several types of engaging Australian Rules and/or Rugby League programmes. But for the boys, the Clontarf journey doesn’t stop at the end of their education, as the foundation offers support all the way through to employment. RGN’s editor catches up with Clontarf’s CEO Gerard Neesham. Jacob Ambrose Willson: Gerard you are the CEO and founder of the Clontarf Foundation. What has it been like to watch it grow from one academy to a nationwide force of positive change for young vulnerable males?
Resource Global Network
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EDUCATION | Clontarf Foundation Gerard Neesham: It has been an incredible
tirelessly in the field each and every day to
and humbling experience to see a relatively
make the programme such a success.
simple concept back in 2000 continually grow and become more sophisticated and
I feel so lucky to work with and amongst so
professional over time and most importantly,
many committed people, not only our staff
reach more Aboriginal and Torres Strait
but also the teachers, Aboriginal and Torres
Islander boys and communities in need.
Strait Islander families, community workers and our many government and private sector
We started in Western Australia with 25 boys, two staff members and one school almost 19 years ago and today we support 6,600 boys in 97 schools across Western Australia, the Northern Territory, Victoria, New South Wales and Queensland. We also now have 350 full-time, dedicated and passionate staff members who work
partners.
Resource Global Network JAW: How does the organisation
is the one we have with schools. We have
collaborate with local schools to ensure
fantastic, working relationships with 97
academy participants are provided a
schools across five states/territories and to
healthy balance of education and sport
have the support of each individual school
and why is this school engagement
principal and teaching staff is paramount to
mechanism so important for many at-risk
achieving the outcomes we are striving for.
students? We develop an understanding of why we GN: Our most critical partnership in addition to the one we have with the boys and their families,
exist with the schools and then fit in around their education delivery, allowing the many fantastic teachers in our country to do what they do best without having to worry about poor attendance or behaviour. There is a good level of give and take and we both share the great success stories and enjoy the journey together.
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EDUCATION | Clontarf Foundation
Australian Resource Business Global Network We believe education is the key factor for any at-risk child to have an opportunity to succeed in life. First and foremost, they need to attend school on a regular basis and complete Year 12 which will positively impact the other ‘Closing the Gap’ indicators of employment, health and reduction in criminal activity. It is also our belief that this is a generational problem and will take a generation or two to fix. We are regularly witnessing this in many communities where we have been operating for 10 years or more. It has now become normal for the Aboriginal and Torres Strait Islander children in those communities to go to school as that’s all they see and know. JAW: What lasting impact do the programmes tend to have on students themselves and on the communities in which they live in? GN: Our goal is to make stronger, more sustainable and cohesive communities. Our boys become confident men, great workmates, good fathers, husbands or partners and like any community, the more people who positively contribute, the better the community will be. JAW: How does the foundation prepare young men for the world of work and how does it support them all the way through to employment? GN: One of our key areas is obviously employment and we have a separate
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EDUCATION | Clontarf Foundation employment team around the country whose
based traineeships, driver’s licenses, job
job is to prepare the boys for post-school
applications – the list is endless. Everything
life and transitioning into the workplace or
that my wife and I did for our four children
further study.
so they each had the best opportunity to succeed in life, is exactly what our staff do for
We place an expectation on the boys as soon
the Clontarf boys.
as they walk through the door that they will be getting a job once they finish school and
We have had almost 3,000 of our boys
we support them along the way.
complete Year 12 since inception and so there are many, many success stories. Year
We take them on worksite visits to our
on year, more than 80% of these boys remain
partnering organisations, assist with CV’s,
engaged in employment or further study 12
interview skills, work experience, school-
months after completing school.
Resource Global Network As an example of a successful partnership
Today we have several alumni linked to Rio
within the resource sector, over 100 of our
including two second year lawyers, a second
boys have gone on to work for Rio Tinto who
year civil engineer and an OHS graduate
are our most significant corporate partner.
working full-time within the business. This was unheard of five or six years ago, so these
What is most pleasing is that in addition
boys are continually breaking new ground.
to the many boys who have gone on to be apprentices, trainees, T/A’s or truck drivers
JAW: Finally, how proud are you to
with Rio, we are now seeing our boys go on
have provided this platform for many
to tertiary studies and completing cadetships
generations of young Aboriginal and
with Rio Tinto.
Torres Strait Islander men to escape from dangerous paths and excel themselves, and what does the future hold for the foundation?
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EDUCATION | Clontarf Foundation
Resource Global Network GN: I feel extremely privileged to have worked with so many of the boys, their families and the great people in our foundation. I feel even prouder when I’m constantly reminded how far we’ve come, when I hear the great accomplishments our enormous group of alumni are consistently achieving. Our ‘old boys’ are forging successful careers, buying houses, driving nice cars, getting married, travelling the world and most importantly - placing such a high emphasis on education and employment for their own children. We know there are approximately 16,000 Aboriginal and Torres Strait islander boys across the country who would benefit from a Clontarf programme so we still have a long way to go. The stark reality is that for every year we don’t reach a community, many of these boys’ life outcomes will unfortunately head in a negative direction. As an organisation, we remain extremely focused on our core business of keeping these boys in school and placing them into employment and we remain equally as focused on expanding as quickly as we can to hopefully change the lives of many for the better. There is certainly no slowing down!
Phone: +61 (08) 9356 2500 Email: contact@clontarffoundation.com.au
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Building a Multi-Asset Mid-Tier West African Gold Producer
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MINING |New Hope Group
NEW HOP A diversified majority Australian owned energy company
Resource Global Network
PE GROUP
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MINING |New Hope Group
New Hope Group began in A diversified energy Queensland, Australia in 1952, when the company was formed company Having started as an underground coal to undertake underground miner, it wasn’t until the 1980s that New coal mining in the bustling Hope shifted into open cut coal mining and industrial centre of the state, moved to totally vertically integrate the Ipswich. Today, New Hope is business through an investment in the a diversified energy company coal terminal at the Port of Brisbane. listed on the ASX and one of Since then, the company has Queensland’s largest regionally- continued to focus on open cut based employers, with a direct coal mining. workforce of more than 600 people along with a wider reach “We are very vertically integrated for a coal of 3,000 jobs through suppliers mining company. We own and contractors. Connecting our drill rigs, we have our New Hope’s longstanding past geologists and engineers, with its present position in we get our own Queensland is a set of lasting approvals, do our own values that have permeated mining, coal processing, through the company since marketing and we own inception. New Hope’s managing the coal shipping terminal director Shane Stephan lists the at the Port of Brisbane.” four most enduring company values as: Safety, accountability, The investment in the coal shipping terminal at the Port integrity and resilience. of Brisbane back in the 1980s was the first step in New Hope’s “Resilience is one of the most important
vertical integration strategy, which
values for any resources company because
has proven to be highly successful
commodity prices go up and down, so
as today the only part of the coal
you need to maintain resilience within the
production chain that New Hope doesn’t
organisation,” explains Stephan. “This means
own is the rail.
resilience in a financial sense, within human resources and also in the mineral resource
While becoming self-reliant in the coal
itself.”
market, New Hope also followed a strategy of sector diversification under the premise that
Resource Global Network
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MINING |New Hope Group
New Hope Group is an Australian controlled and operated diversified energy company, proudly based in South East Queensland for more than 60 years. With business interests and operations spanning mining, exploration, port operation, oil, agriculture, innovative technologies and investment, New Hope has grown to be one of Queensland’s top ASX listed companies.
www.newhopegroup.com.au
Resource Global Network
over-exposure to a single market, particularly “We invested in that operation to learn that one as volatile as the coal market, could
industry, but also because it provides a
be damaging to the company’s long-term
natural hedge, particularly as we use a lot
prospects.
of diesel for our truck fleet across our coal mines.
For example, in 2012 New Hope invested in a conventional oil company called Bridgeport
“Therefore having an investment in a
Energy, which proved to be a shrewd move
conventional oil company provides a natural
as the coal price downturn of the time was
financial hedge on oil price which is one of
to further deepen, reaching a new nadir in
our major cost drivers,” Stephan reasons.
2016.
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MINING |New Hope Group Along the way, New Hope has also developed its own agricultural business called the Acland Pastoral Company (APC), which operates approximately 10,000 hectares of land around the company’s largest operation New Acland on Queensland’s Darling Downs. The pastoral operation is also highly integrated running a herd of around 5,000 cattle and roughly 2,400 hectares of crops that are used for the company’s own stock feed requirements with excess sold locally. Approximately 500 hectares of this operation is rehabilitated mined land. The company is a world leader in its progressive rehabilitation techniques which returns mined land to useable cattle grazing pastures immediately behind mining operations. “Through APC, we see ourselves as a custodian of that land and we are proud to say we put the land we own to good use before during and after mining – apart from being the right thing to do it also makes good business sense.”
Thermal coal operations Despite following a clear diversification strategy in recent years, Stephan underlines thermal coal mining as New Hope’s predominant line of business. The thermal coal business has three key operations, with the bulk of production exported to Asian markets, along with a smaller domestic market.
ResourceGlobal GlobalNetwork Network 49 Resource New Hope’s priority Queensland operation is New Acland, which has been producing thermal coal since 2002 and currently runs at a rate of approximately 5 million tonnes per annum. However, New Acland is currently nearing the end of Stage 2 of its mine life and the company is working on gaining approval for Stage 3 of the operation. The mine lease application for Stage 3 was initially rejected by the Land Court, but after seeking judicial review of the ruling in the Supreme Court, the extension plans for New Acland were given a lifeline by the Supreme Court overturning the Land Court’s decision. “For New Acland stage 3, we remain very confident of obtaining those approvals. The key concern for us is that we need to progress in a smooth manner from Stage 2 into Stage 3, maintaining production at a steady rate so we can maintain employment at the site and of course maintain supply to our customers.” New Hope employs around 300 people directly through the operation, and a further 700 people rely on New Acland for employment. Furthermore, the operation injects more than AUS$110 million into the Darling Downs economy each year and over $300 million into the broader Southeast Queensland economy each year, underlining its importance in the region. In August 2018, New Hope opted to increase its stake in the Bengalla mine in New South Wales through the purchase of Wesfarmers’
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MINING |New Hope Group
“We always try to employ people locally. That’s been a major competitive advantage for us in the recruitment of high level, talented people. Most mines in Queensland are fly-in fly-out whereas our employees live locally, and they are able to go home to their families at night” Shane Stephan, managing director 40% stake in the joint venture operation. The
its operations once they reach maturity.
$860 million acquisition will take New Hope’s
“Ensuring that the land post-mining has a
ownership of Bengalla to 80%, and starts a
viable and sustainable use post-mining is
pre-emptive process where the remaining
critical,” Stephan stresses.
co-venturers Mitsui and Taipower are able to enter in at that same price.
“We’ve done a lot of work in progressive rehabilitation and having that rehabilitation
Bengalla is an important and growing part
monitored and evaluated by third parties,
of New Hope’s coal portfolio according to
such as the University of New England and
Stephan, as the operation produces roughly
the University of Southern Queensland, has
9 million tonnes per annum of thermal coal
assisted us in improving our rehabilitation
which is sold into export markets in Japan,
practises and ensuring sustainable land use
Korea, Taiwan and other Asian markets.
post-mining.
“We also own a smaller operation called
“Also, from a social point of view we always
Jeebropilly which produces around 600,000
try to employ people locally. That’s actually
tonnes of coal per annum and is the last
been a major competitive advantage for us in
coal mining operation in the West Moreton
the recruitment of high level, talented people,
district.” New Hope has been mining in
because a lot of mines in Queensland are fly-
the district for a long time but will cease to
in fly-out.
operate there in mid-2019 when Jeebropilly completes its mine life.
A custodian of the land
“Whereas, our employees live locally and they are able to go home to their families at night. These are some of the characteristics that
The upcoming mine closure at Jeebropilly
make us a touch different from most of our
brings into focus New Hope’s commitment
peers.”
to rehabilitation of the land surrounding
Resource Global Network already established infrastructure, which
Exploration and development
includes a railway, a coal operation plant, accommodation village along with electrical
The mid-term future of New Hope’s coal
and water infrastructure.
business looks to be assured judging by its packed exploration portfolio, which is headed
The company also has four projects in the
by two prospective projects at Colton and
North Surat region of Queensland and is
Lenton.
looking at development options for these potentially large open cut coal resources,
Colton is a small coking coal project near
although they are dependent on the
Maryborough which has had its mining lease
development of the ‘Southern Missing Link’, a
and mining approval granted and is now
214 km length of rail connecting the Western
awaiting the results of a re-financing process
Railway system near Wandoan to the Moura
that is taking place for Wiggins Island Coal
Railway system near Banana.
Export Terminal (WICET), the coal port which it would use for exports out of the city of
With a history in Queensland stretching back
Gladstone.
over 70 years, and in its ongoing role as a responsible steward of the environment it
“Lenton is a project of about 1.5-2 million
operates in, New Hope has proven to be
tonnes per annum of both metallurgical and
a vital social and economic stakeholder in
thermal coal, approximately split 50:50.
the state, and with a detailed exploration portfolio in the region this is set to continue
“If we do get the approvals to progress, we
into the foreseeable future.
should be able to get that operation up and running quite quickly, because approvals are in place already at the adjoining Burton mine and most of the approvals are in train to progress with Lenton.” New Hope acquired the nearby Burton mine from Peabody Energy, primarily to gain access to its
ASX:NHC
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54
MINING | Infinity Lithium Corporation
INFINITY Developing lithium-tin production in Europe to power a renewable future
Resource Global Network
LITHIUM
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MINING | Infinity Lithium Corporation
Plymouth Minerals began the year by changing its name to Infinity Lithium Corporation to reflect its focus on the San Jose Lithium Project in Spain. The ASX-listed firm’s involvement in the project actually pre-dates the current boom in the lithium market, as the opportunity presented itself to Infinity’s management in late 2015, before a JV partnership was agreed with Valoriza Mineria to advance the brownfields project in 2016. “Back then lithium was of interest to people, but it wasn’t red hot,” recalls Infinity’s managing director Adrian Byass.
the region’s mineral endowment, having been initially mined for tin before being later explored for lithium, with a previous developer even going as far as completing a feasibility study for a lithium carbonate site between 1987 and 1991. When Byass came across San Jose he concluded that all the fundamentals were already there; a project with detailed historical work already completed, in a region with deep mining history and supported by a proactive government that was keen to award the tender to groups who could fast track the project into production. In addition, the project is just two and a half hours West of capital city Madrid by car and easily reached by a high quality multi-lane sealed highway, with power and gas pipeline
Byass joined Infinity in 2013, boasting a
infrastructure also in close proximity.
CV which included experience as founding director of Wolf Mining, the ASX and AIM-
On top of this, Byass proposes a number of
listed tungsten and tin producer, and
reasons why the project itself stands out in
immediately set out on a two-year search to
a sea of development stage lithium projects
find a plausible mining project in Spain.
today: “The first is its size. San Jose is the second or third largest lithium project in
The search eventually took Byass to the
Europe. Secondly, it is very advanced and
mining friendly region of Extremadura in
that is one thing a lot of the other projects
Western Spain, a rural area with a strong
are not.”
history and understanding of mining, originally mined there throughout the
Confirming a large-scale lithium resource
early 20th century, as well as lithium more
Building on the historic feasibility study,
recently.
Infinity published a JORC 2012 resource
particularly extraction of tin which was
report and scoping study for the project in The San Jose project, located close to the
November 2017. Further drilling has resulted
town of Caceres, is a perfect example of
in a revised JORC resource (Q1 2018) with 59
Resource Global Network
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MINING | Infinity Lithium Corporation
million tonnes (Mt) of indicated resources
the 1980s and it stood out even before the
(within a total of 111Mt) grading 0.6% lithium
lithium world got excited. That says a lot, I
oxide.
think it’s a really high quality project.”
Overall, the resource contains in excess
So, why was San Jose not taken through to
of 1.6Mt of lithium carbonate equivalent –
production back in the 1980s if the potential
strong numbers by any current estimations in of the project was known to developers from the growing lithium chemicals market.
the start? The answer lies in the fact that 20 to 30 years ago, the lithium carbonate market
“People knew about this deposit back in
was a fraction of the size it is today.
Resource Global Network
“This project was so big that the original
bad recession had hit global markets by
feasibility study concluded it would produce
1991.”
12% of the world’s market and it would be producing for nearly 70 years, that’s how big
In addition, at the time hard rock lithium
it was compared to supplies at the time.
projects were competing against the very low cost lithium brine facilities of South America,
“Therefore, bringing a project of this scale to
and so there was less confidence amongst
production would’ve swamped the market
hard rock developers that projects could be
and severely disrupted spot prices and
advanced cost-effectively.
nobody wanted to do this, given that a very
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MINING | Infinity Lithium Corporation
Hard rock is well suited to making higher quality (battery grade) lithium products
A perfectly timed arrival
and is advantageous when considering the
As the old saying goes one man’s loss is
evolution in battery technologies towards a
another man’s gain, and fortunately Infinity
lithium hydroxide-based product. However,
arrived on the scene at San Jose at the
this market did not exist in the early 1990s.
perfect time when the commodity was at the beginning of a steep upward price curve.
“That’s why it didn’t go ahead and got swallowed up into the distance. But then
The converging of Infinity and Valoriza
it popped back out after 30 years when
Mineria (a wholly owned subsidiary of
the exploration license expired, and the
Sacyr) as JV partners for the project was also
government put out new tenders.
down to impeccable timing. Sacyr, a multibillion dollar market capitalised Spanish
“Ultimately, if that company had done their
construction and engineering giant, was
work 20 years later, it would’ve gone into
looking for foreign mining expertise while
production, so it really is all about timing.
Infinity was searching for a company with a
They did 9,000 metres of drilling, big studies
robust understanding of Spain’s permitting
and most of the work was done, so really for
process.
them they were just on the wrong end of the world commodity cycle.”
Once both parties realised that a partnership would be mutually advantageous, things
ResourceGlobal GlobalNetwork Network 61 Resource
began to fall in place. “We were a perfect
Therefore, the open pit mining method and
match in heaven,” claims Byass. “We
low strip ratio of <2:1 combine to provide a
contacted them in early 2015 and while
low cost project with reduced geological risk
it takes a while to build relations, we
and reduced environmental impact, and the
have certainly built a very strong mutual
company is not reinventing the wheel with
relationship now.”
regards to extraction and processing of the lithium ore.
The partnership is currently structured as a 50:50 JV, although Infinity will earn a
“The mica is a mineral which has been used
75% stake in San Jose when it completes a
for decades to produce lithium carbonate.
feasibility study, which should be published
There are several operations in China which
by the end of the calendar year.
use the exact same method we will use so we are not inventing new technologies and
Infinity’s 2017 scoping study proposes an
that’s one of the benefits. Operating plants
open pit mining method for the extraction of
are using the methods we are proposing right
lithium mica minerals over an initial mine life
now and we have the benefit of no novel
of 16 years, with the ore treated and refined
technology requirements as a result. If we
onsite to produce battery grade lithium
can use mining methods that have been used
carbonate over a 24 years production life.
elsewhere we lower our risk.”
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MINING | Infinity Lithium Corporation
Fully integrated lithium carbonate or hydroxide production
for its lithium chemicals, and for Byass these arrangements simply boil down to corporate strategy.
Furthermore, with plans for a lithium carbonate production facility at San Jose,
“We can sell products every day of the week,
Infinity is aiming to become the sole
especially lithium carbonate. People will even
European mine-to-end-product lithium
buy off-spec lithium carbonate if there is a
carbonate operation and has successfully
shortage and take on the burden to upgrade
demonstrated its ability to deliver battery
it, so selling it is not the issue.
grade, +99.9% lithium carbonate, via independent testing.
“Transferring your low sovereign risk, long-life product stream into some form of integrated
Not only that, the company is also exploring
financing, that’s the one that takes a bit more
the potential to produce lithium hydroxide
time and effort.”
as well as lithium carbonate, which would give Infinity even greater flexibility when it
As such, Infinity is taking time to find the
comes to the end user market and potential
perfect partner, but hopes to finalise its
strategic partners.
product offtake and strategic partner search by the end of the year.
Infinity is currently looking for an appropriate partner to form an offtake agreement with
Resource Global Network
“The mica is a mineral which has been used for decades and decades to produce lithium carbonate. There are several operations in China which use the exact same method we will use so we are not inventing new technologies and that’s one of the benefits” Adrian Byass, managing director
With the feasibility study for San Jose due to
As recently as July, Chinese giant
land in the final quarter of this year and the
Contemporary Amperex Technology Limited
permitting process to be completed at some
(CATL) announced a €4 billion deal to supply
stage next year, Infinity is well on its way to
battery cells to BMW, including a €240 million
commencing the construction of the mine
investment in a German based factory as a
and plant in 2020, ahead of potential first
first phase step into Europe.
production in 2021. “Being close to the market is important in Based on widely-believed demand increase
terms of security of supply and for us there is
indicators for lithium chemicals, Infinity is
nothing better than being in the same trading
coming into the market at the perfect time
bloc as there are no foreign exchange issues,
and has the added boon of being already
no tax issues and foreign tariffs. I would say
located in a major market for lithium, with
economically it makes a significant difference
Europe currently accounting for 30% of
to our project.”
demand and growing.
ASX:INF
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MINING |Tietto Minerals
TIETTO M Fast tracking the development of gold assets in West Africa
Resource Global Network
65
MINERALS
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MINING |Tietto Minerals
Tietto Minerals successfully floated on the ASX in January 2018, raising $6 million through the issue of 30 million shares in its IPO. After seven years under private operation the decision to go public was made in September 2017 by the board of directors – whom collectively boast over a century of experience in mineral exploration. Tietto’s story began in 2010 with two projects in Liberia before expanding into Côte d’Ivoire two years later, following the conclusion of the Ivorian crisis. Since then, progress in Côte d’Ivoire has taken place at a fast pace, spearheaded by the rapid development of Tietto’s flagship Abujar gold project, where the company’s current JORC resource originates from. The first exploration licence of the Abujar project was applied for by Tietto with its
was very clear to us where the mineralisation
joint venture partner in March 2014, and by
was taking place at Abujar,” says Tietto’s
September of the same year the company
managing director Caigen Wang. “At least a
received a license for the middle tenement
portion of the mineralisation is shown at the
- which hosts the JORC Resource and
surface by previous artisanal workings.”
numerous drilling targets. Therefore, it has been somewhat fortuitous “Due to previous large-scale artisanal
for Tietto that the prior work of small-
workings around a few kilometres strike, it
scale artisanal miners across the tenement
Resource Global Network
has exposed mineralisation at surface,
artisanal workings clearly show part of the
particularly as Wang proposes that the
mineralisation from surface and heading
average time taken to identify mineralisation
downwards. That’s one of the main reasons
at a grassroots exploration project is usually
why we are progressing the Abujar project so
around two years.
rapidly.”
“In the case of Abujar, we save at least two
JORC Inferred Resource
years in identifying mineralisation before
The maiden JORC Inferred Resource
starting resource definition drilling, as the
estimation of 10.4 Mt @ 2.1 g/t Au for
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MINING |Tietto Minerals
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BRINGING MORE TO MINING 703,600 oz was delivered in December 2016
a strike length of 1,000 metres – an exciting
from 13,000 metres of drilling within a small
result indeed.
portion of known artisanal working areas in the middle tenement.
The next step for Tietto is to target a new resource area to the South of the main
Since this announcement, the company has
resource: “Our recent drilling beyond the
continued drilling several new targets within
strike of the existing JORC resource towards
the tenement with the aim of further building
the South gave us very good intersections
the resource. Over the last four years, all
and multiple drilling targets for further
drilling activity has been conducted by major
resource definition.
West African contractor Geodrill, with the most recent campaign completed in Q1 2018.
“But the few holes we drilled at a shallow depth of 50 metres gave us very good
The Q1 campaign focused on digging
intersections. The areas named Pischon
deeper holes in the current JORC Resource
South and Golikro will form our next major
area and delivered some very positive and
increase in resources.”
encouraging results according to Wang. Tietto managed to hit high grade gold intercepts at
For these upcoming drill programmes, Tietto
an extended depth of 200-250 metres over
has elected Ausdrill as its drilling partner of
Resource Global Network
choice. Ausdrill has been operating in West
provide a high grade gold mine is there for
Africa for many years, but only recently
all to see, but how viable is Côte d’Ivoire as a
expanded their business into Côte d’Ivoire.
mining jurisdiction?
Tietto will become their first drilling service client in the nation, when they undertake the
The mining industry was only meaningfully
next round of drilling for over 50,000 metres.
opened up to foreign investors in 2014, when a new mining code was introduced. The
Overall, the short-term target for Tietto at
new code stipulated a range of legislative
Abujar hinges on further expanding the
measures including an attractive five-year
resource, which could potentially be doubled
corporate tax free exemption for mining
or even tripled up to around two million
companies, followed by a 25% corporate tax
oz before the company commences a pre-
rate and a 3% government royalty rate.
feasibility study.
Operating in Côte d’Ivoire
“Cote d’Ivoire was already a relatively developed country in Africa, [before the new mining code] particularly in West Africa. The
With high grade mineralisation being
country has very good infrastructure thanks
identified with every additional drill
to its very developed agricultural industry.”
programme, the potential for Abujar to
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MINING |Tietto Minerals
The gold mining sector is also well
the fact the artisanal mining provides the
established, with five mines currently
only means of income for many vulnerable
producing and operated by a number of
citizens.
international companies including Endeavour Mining and Randgold Resources. These
Supporting local people
mines produced approximately 800,000 oz
“In order to provide support to local people
of gold last year. “So, we do have numerous
who operate in small-scale artisanal mining,
good examples of modern mining operations
the government has set up special zones
producing gold in Cote d’Ivoire,” Wang adds.
which are only for small-scale mining licenses. So, for the major licence areas, no
Furthermore, the Ivorian Government,
small-scale mining activity should take place.
particularly the Ministry of Mines, has been working hard to manage the sensitive issue
“Likewise, within the designated areas for
of small-scale and illegal mining within the
small-scale mining activities, no company
country’s mineral belts.
is allowed to apply for major exploration licenses,” explains Tietto’s managing director.
In response to conflict-driven mining practises, the government has not been
Tietto itself is also supporting local people
afraid to use military force in order to dispel
through its company employment policy.
and close down illegal operations, however
“The first thing we did was try to maximise
the government is also acutely aware of
the local employment of our geologists and
ResourceGlobal GlobalNetwork Network 71 Resource
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MINING |Tietto Minerals
technicians working on the ground. Whether
Cestos projects were resumed in March 2018
they are full time or casual, they are all
after an extended hiatus.
Ivorian. The geological foundations of the projects are “Ivorian geologists have good expertise due
sound, with significant gold mineralisation
to their training and work experience with
identified over a long distance of strike from
a number of major international mining
the company’s preliminary work at both
companies that operate in Cote d’Ivoire,
projects. However, Tietto has its work set
Burkina Faso and Mali,” he continues.
out in Liberia, with both projects located in a remote part of the country.
“We have a local specialised technical team of personnel available in the country which is
Wang admits that infrastructural
our first choice for our employment.”
development in the region is minimal,
The Liberian projects With the rapid pace of development taking
therefore significant improvements will need to be made to support the potential gold mining operations.
place in Cote d’Ivoire, it is easy to forget that Tietto’s original projects are in neighbouring
“Nonetheless, the progress has been quite
Liberia. Field activities at the Dube South and
significant this year and we are going to
Resource Global Network
announce our results in September/October.
into other parts of the region, but for now the
Our aim for the Liberian projects is to define
MD is keeping his feet firmly on the ground.
a minimum of three drilling targets for each project before the next dry season which is
“As a mining engineer myself, I believe that
November this year.
the company’s primary purpose is to build a producing mine. That’s our current aim
“At that time, we will arrange a test drill
and we are quite confident that with the
campaign for both Liberian projects with
advanced status of our Abujar project and
multiple drilling targets on each project.
the related upside there, as well as the two
Overall, we are confident that we should have
Liberian projects, we will be able to build a
good success on each of the two projects.”
mine or mines in West Africa in a few years’ time.”
As a West Africa-focused junior explorer, Wang reveals that Tietto does harbour motives to expand its mineral exploration
ASX:TIE
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76
MINING |Adriatic Metals
Resource Global Network
ADRIATIC METALS
Taking on two advanced stage base metals projects in Bosnia and Herzegovina
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MINING |Adriatic Metals
Adriatic Metals is focused on polymetallic exploration in the highly prospective Tethyan mineral belt located in Bosnia and Herzegovina and was established through the acquisition of a company called Eastern Mining last year. Once the acquisition was completed, Adriatic went about conducting confirmation drilling at two projects – Veovaca and Rupice. These advanced stage exploration deposits form the company’s Vareš project in Bosnia and offer promising exposure to a range of base metals including zinc, lead and copper, as well as silver, gold and barite, plus significant further exploration upside. In April this year, the firm debuted on the ASX in an oversubscribed IPO, which provides Adriatic with a solid financial base from which to launch its two-pronged development strategy in Bosnia. As of today, Adriatic is the best performing metals and mining IPO on the ASX.
operations in highly mineralised zones of Kosovo, Macedonia and Serbia to name a few. However, establishing a foothold in Bosnia’s mineral exploration industry has proved difficult for foreign investors, even though a pro-mining attitude exists alongside a stable democracy which has prevailed since the end of the Bosnian War in 1995. Paul Cronin, non-executive director at Adriatic, explains how Bosnia’s unusual mining code, which provides easy access to an exploration license but no real path for converting the license into a mining concession, has prohibited exploration firms from breaking into the industry - until Adriatic’s arrival. “We did it the other way around and acquired the concession first through a tender and then we set about putting the exploration licenses over the top. Thanks to this strategy we now have a path through to production.”
First mover advantage Adriatic is one of a very few publicly listed companies that holds a mining concession in Bosnia and this first mover advantage gives the company a great opportunity to establish itself in an auspicious mining jurisdiction that has effectively been in pause mode since the conflict of the 90s.
The Balkans region of Eastern Europe is one of the world’s premier emerging
This hiatus in the development of mining
mining jurisdictions, and in recent years a
projects as a result of the Bosnian war
number of major mining firms have set up
is evident in both of Adriatic’s projects, which are located near the town of Vareš,
Resource Global Network
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MINING |Adriatic Metals
Resource Global Network approximately 50 km North of the capital Sarajevo. “Veovaca is a previously operating open pit that was run by the Yugoslav government back in the 1980s and has been left untouched since the Bosnian war, while Rupice is a reasonably advanced stage exploration project where we set up gathering as much historical information as we could. “Our confirmation drilling was very successful as we were able to confirm pretty much all of the information we had,” reveals Cronin. In a quirk of luck, Adriatic stumbled across thousands of written reports while renovating an old building on one of the sites. The reports detailed around two decades of work that had been carried out in the region between the early 1970s and the early 1990s, handing the company a significant early boost. “We set about digitising that information, and coupled with the confirmation drilling, delivered a JORC resource for Veovaca and a series of very interesting drill hole logs at Rupice, which we then drilled out last year. From this we were able to confirm that the region is very heavily mineralised.” Adriatic completed a 16-hole, 1,381 metres diamond drilling programme at Veovaca in 2017, which confirmed historical results and
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MINING |Adriatic Metals
Peter Bilbe
Geraint Harris
Paul Cronin
Non-executive chairman
CEO
Non-executive director
supported a JORC compliant resource of 4.4
During the winter months Adriatic took the
million tonnes (Mt) with 80% classified in the
opportunity of poor drilling conditions to
indicated category.
conduct geophysics and geochemical studies,
A geologist’s dream Meanwhile at Rupice, 17 km Northwest
which identified some fantastic anomalies over the entire concession, according to Cronin.
of Veovaca, the company completed an 8-hole, 1,458 metres diamond drilling
After a winter of geotechnical surveys,
programme, the results of which were
Adriatic moved into the summer months
deemed extraordinary by Adriatic’s board
armed with a high degree of geophysical
and management team.
anomalies to support the historical information at Rupice. Consequently, the
“Every geologist dreams of drilling through
company was able to commence a 15,000
$1,000 per tonne rock and we just drilled
metres drill campaign.
through $3,000 per tonne rock everywhere, it was quite extraordinary,” exclaims Cronin.
The campaign was divided into three phases, with the first a continuation of the
“Our first hole was 64 metres at 29% zinc
2017 programme that was centred on the
equivalent. That was great and then we
Northern end of the license. The second rig
drilled another hole that was equally as
will move to the South of the license while
mineralised. It was just a fantastic campaign
the third phase will focus on a geophysical
for us. However, the geology at Rupice is
anomaly in a ‘connector zone’ between the
complex so we needed to complete some
North and South of the license.
geophysics and geochemical work before starting a new drill campaign.”
ResourceGlobal GlobalNetwork Network 83 Resource
Julian Barnes
Eric de Mori
Non-executive director
Non-executive director
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MINING |Adriatic Metals
“Every geologist dreams of drilling through $1,000 per tonne rock and we just drilled through $3,000 per tonne rock everywhere at Rupice, it was quite extraordinary” Paul Cronin, non-executive director
“We have a very high grade but small
zone at Rupice and have been replicated in
resource at the North of Rupice and we
several ensuing drill holes including the fifth
believe that this continues to the North as
hole, which further extends the high grade
well as to the South and connects up with
mineralisation approximately 110 metres
those adits at the South of the license.
down-dip from historical hole BR-79-8.
Therefore, we think that the strike area could be over 1 km long.”
Encouraging drill results
With the Rupice project continuing to return impressive drill results this year, Adriatic has had to reconsider its pathway to production
In June, the company reported assay results
within the Vareš project. Having previously
from the first hole of the 15,000 metres
operated between 1983 and 1987, and with
programme, which included intercepts from
visual mineralisation at surface, Veovaca is
64 metres at 4.6 g/t gold, 537 g/t silver, 0.9%
ready to be mined straight away.
copper, 7.7% lead, 10.8% zinc and 46% barite. However, the plant at Veovaca needs These encouraging results confirm the
to be rebuilt and with Rupice looking so
consistency of the previously drilled Northern
prospective, Adriatic will continue to work on
Resource Global Network
the latter over the next six months, instead
“At corporate level, we will be looking at
focusing on long-lead time work at the
other similar types of acquisitions, whether
former, ahead of a scoping study later this
they are in Serbia, Montenegro, Bosnia or
year.
anywhere in the Adriatic or Balkans region that we think is prospective. We will try and
“Over the next 12 months, we are really
get our hands on this type of project using
focusing on Rupice. That’s where we see the
the knowledge and the team we’ve got to try
key value being unlocked. We will also extend
and add value from those.”
our land holding in the Vareš district and try and tie up as much of the mineral belt as we can in very targeted areas that extend our licenses.
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AFRICA. IN THE PALM OF YOUR HAND.
ONLINE NOW WWW.AFRICANBUSINESSNETWORK.CO.ZA
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MINING |Explaurum
Turning the Tampia Gold Project into a new gold district in Western Australia
Resource Global Network
EXPLAURUM
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MINING |Explaurum
ASX-listed Explaurum is a gold mining company focused on the development of the Tampia Gold Project and exploration of the surrounding region. Tampia is located approximately 240 km East of Perth in the wheat belt of Western Australia, near the township of Narembeen. It was discovered in 1987 by BHPâ&#x20AC;&#x2122;s now-defunct gold exploration branch, who established high grade gold mineralisation near surface. Explaurum took an 80% interest in the project back in 2012, which has since increased to 90% while the company has worked on updating the mineral resource. After revealing a host of positive project metrics in a November 2017 scoping study, Explaurum has further improved the mineral resource at Tampia in a long-awaited feasibility study, published in May.
produce around 490,000 oz of gold over a 5.3 years initial mine life.
Robust results
This impressive production figure is
The feasibility study for the Tampia project
supported by a low initial capital cost (CAPEX)
revealed an updated mineral resource of
estimate of AUS$119 million, along with an
675,000 oz of gold from 11.7 Mt at a grading
all-in sustaining cost (AISC) of $896 per oz for
of 1.79 g/t Au, with an initial mine plan of
the first two years and $998 per oz for the life
534,000 oz Au from 8.0 Mt at a grading of
of mine.
2.07 g/t Au. From this, Explaurum expects to
Resource Global Network
“It’s a very robust project,” says Explaurum’s
was undertaken by consultancy groups that
managing director and chief executive officer
assisted in the production of the feasibility.
John Lawton “With a payback period of 1.5
The company is currently reviewing this and
years and lowest quartile cash and AISC.”
hopes to post an update in due course.
However, the net present value (NPV)
Nonetheless, when looking at the profitability
decreased from AUS$181 million to
margins outlined in the study, it becomes
AUS$125 million which Lawton believes is
clear that the open pit mine qualifies as a low
a result of the modelling process for the
cost, high margin, high return project that
resource estimate and ore reserve, which
would also be resilient to any downwards
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MINING |Explaurum
movement in the gold price.
fundamental building blocks for a mining project were missing, with previous
â&#x20AC;&#x153;The cash operating costs are in the lowest
development progression handicapped by
quartile for gold production, so I think itâ&#x20AC;&#x2122;s fair
limited understanding of the underlying
to call Tampia a low-cost operation. The gold
geology.
price is currently about AUS$1,650 per ounce and we are looking at a production AISC of
But, over the last six years Explaurum
just under AUS$1,000 which provides an
has negotiated a land access agreement
attractive margin,â&#x20AC;? Lawton posits.
where before there was none and strongly
Unlocking the Tampia resource When Explaurum acquired the Tampia project back in 2012, a number of
enhanced understanding of the geology at Tampia through detailed gravity survey work, along with advancing the project to feasibility and optimising the mineral resource.
Resource Global Network
In fact, the company’s increased
“The main reason for this was a lack of
understanding of the regional geology has
understanding on the geology of the deposit,
led to a significant focus on near-mine
which is located within an area of cultivation
exploration in recent years with promising
and therefore has poor exposure. We’ve
initial results from ground and airborne
come to grips with understanding the
surveys contributing to a growing optimism
geology and since applied that to the region
that the company could be sitting on a new
and found more greenstone belts and other
goldfield.
gold targets.”
“There has been very little exploration
A new gold province?
around Tampia since BHP made the original
The discoveries began in April 2016, when
discovery after following up of a regional
one of Explaurum’s ground gravity surveys
stream geochemical anomaly located gold
identified a bullseye anomaly coincident with
mineralisation at surface.
the known Tampia deposit. This was followed
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MINING |Explaurum
one year later by a 400 km2 airborne gravity and magnetic survey of the district, which identified three major new targets and 21 secondary targets. In a mid-2018 update to the ASX, Explaurum confirmed some exciting results from an RC drilling campaign which tested soil gold and gravity targets in an area to the North of the Tampia deposit. The drills intersected four anomalous zones of gold over an area of 3.5
“It’s a gravity target that has a similar
km x 1.5 km.
geophysical signature to the Tampia deposit. Follow up auger soil sampling indicates
“It’s a very exciting area that is more than
the target is highly anomalous in gold with
four times larger than the area of the known
soil values up to 0.8 g/t Au, which is a very
Tampia deposit,” reveals Lawton.
exciting exploration target.”
ResourceGlobal GlobalNetwork Network 95 Resource
area, which would effectively add mine life to the Tampia project. More recently, Explaurum announced the discovery of supergene gold mineralisation (Mace prospect) immediately West of the Explaurum has completed soil sampling in
known Tampia resource which extends
the area for the immediate period and will
over a length of 550 metres and a width of
continue drill testing a target that has been
50 metres, having an average thickness of
christened Anomaly 8 over the next quarter.
approximately 5 metres and uncut average
The intention is to identify a resource in this
grade of 5 g/t Au.
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MINING |Explaurum
The mineralisation, which is continuous and
“We have the exploration tools that can track
occurs at a consistent depth of 8 metres
these things down quickly and cheaply. From
below surface, is open to the West and
an exploration point of view, we are in a very
associated with a gold soil anomaly that
good place and hope to add resources to the
extends for some 13 km. Assessment of
project.”
Mace has been given priority so it can be incorporated in the bankable feasibility study.
Timeline to production Now that the feasibility has been ticked off,
When factoring in these potential regional
Explaurum is marching towards a bankable
growth opportunities, Explaurum has an
feasibility study which should be delivered
excellent chance to significantly build the
in October. Lawton confirms that the project
Tampia resource while opening up a newly
has already generated attention from banks
emerging gold province in Western Australia
and potential financiers and the company has
with outstanding repeat potential.
begun talks with these interested parties.
“We can only report the results as we get
In the lead up to the bankable feasibility,
them, but the exploration results to date
Explaurum will complete an infill drilling
are very exciting. We certainly think there is
programme at Tampia. Up until now all
significant potential, even though it’s an area
drilling at the resource has been done on
that’s never been explored before.
a 40 metres by 40 metres grid, but the company is currently infill drilling part of the
Resource Global Network
resource area on a grade control basis at a
Tampia will be commissioned and in
spacing of 10 metres by 10 metres.
operation by early 2020.
“This campaign will de-risk the project for
To conclude, Explaurum’s near-term focus
the financiers. It’s only for a portion of the
is twofold: “One is getting into production
resource area but it’s within the pit designs
quickly. The Tampia resource is where gold
and will be effectively grade control drilling
was discovered in the region, but it’s a small
of that area. I expect that infill drilling will
area. We are talking about a single pit that is
provide a confirmation of the resource, if not
roughly 1,000 metres long and 400 metres
an upgrade,” says a confident Lawton.
wide.
Explaurum is also talking to engineering
“That’s been the basis of the feasibility study,
companies with regards to the construction
but at the same time we don’t intend to lose
of the facility, which all things considered,
momentum on the exploration front in the
should by tied up by the end of the year.
region and we will be developing additional
Although the firm cannot give a detailed
resources as feed into the operation.”
timeline at this stage, Lawton hopes that
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MINING |Six Sigma Metals
Turning the Tampia Gold Project into a new gold district in Western Australia
Resource Global Network
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EXPLAURUM
A new name and a new age commodity focus in Zimbabwe
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MINING |Six Sigma Metals
The management team at Botswana Metals was aware of increasing market interest in ‘new age’ commodities long before the decision was made to shift its focus from base metals to battery metals late last year. The wheels of change began to turn when the ASX-listed company began to investigate its Botswana licenses for lithium and tantalum potential and culminated in the adoption of a new name – Six Sigma Metals. This renaming signifies a shift in focus towards battery metals as well as the company’s entry into a new market beyond the confines of Botswana after picking up two new age metals projects in Zimbabwe – the Shamva Lithium Project and the Chuatsa Vanadium Project. Steve Groves, a non-executive director at Six Sigma, explains how the opportunity to have first mover advantage in neighbouring
gold, coal, iron ore, chromium ore, vanadium,
Zimbabwe was too good to turn down,
nickel, copper, lithium and tin.
based on the company’s expertise in Southern Africa and the sweeping changes
However, under former Prime Minister
that have recently commenced in Zimbabwe.
Robert Mugabe’s rule, which lasted from 1980 to last year, Zimbabwe’s economy
The landlocked nation is one of the most
drastically declined and the growth of the
resource-rich regions in the world, hosting
mineral resources sector was severely
the second biggest platinum reserves on
stunted. Now under new leader Emmerson
the planet, along with abundant reserves of
Mnangagwa, the country aims to be ‘open for
Resource Global Network
business’ which has paved the way for fresh
“There are still a lot of things to be clarified
investment in the mining industry.
politically and within the investment climate,
The dawn of a new era in Zimbabwe
but we felt if we didn’t do it now we would miss the boat. All things considered it’s an excellent opportunity in a wonderful country
“It is no secret that there is resource potential
and we think it will be a great place to
in Zimbabwe, its just about when the time is
operate.”
right to dip your toe into that market – if you are too slow you’ll miss out and we think now
Although Zimbabwe is still only at the dawn
is the time,” says Groves.
of a new era, all the early signs have been
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MINING |Six Sigma Metals
positive for Six Sigma as it looks to establish
Six Sigma has also keenly observed the
mining operations in the country.
smooth progress made by fellow ASX-listed miner Prospect Resources in advancing its
The company’s directors were recently in-
Arcadia Lithium project, which neighbours
country undertaking a site visit and were
the company’s Shamva project.
highly pleased with the level of interaction with the government.
The government’s eagerness to expedite the Arcadia project was particularly pleasing for
“Everyone was very positive about our
Six Sigma.
presence there and welcoming of foreign investment. They now recognise that foreign
In addition, Groves believes that fiscal
investment is required to reinvigorate the
regimes are slowly evolving to benefit foreign
mining industry.”
investors in Zimbabwe, typified by the recent reform to the mining legislation, whereby
Resource Global Network
limited to diamond and platinum mines only
The Shamva Lithium Project
and not the entire mining sector.
Located around 65 km Northeast of capital
majority ownership by state entities is
city Harare is Six Sigma’s flagship Shamva “Overall, as a mining and exploration
Lithium Project. The pegmatite dyke hosting
jurisdiction Zimbabwe is fantastic,” says
project was brought to Six Sigma’s attention
Groves. “There is a highly skilled, well-
by non-executive director Joshua Alan
educated workforce and a lot of mining
Letcher, who came on board around the time
experience in-country.
of the company’s switch in focus to battery metals.
“The infrastructure is still good by African standards even though some maintenance
After reviewing several assets in various
is required. Power networks are in place, the
countries, Six Sigma decided to follow
roads are good, bar a few potholes, but it
Letcher’s recommendation, inking a three-
wouldn’t take much to repair them.”
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MINING |Six Sigma Metals phase option agreement for the project to
Six Sigma has enacted this three-phased
be executed following an initial due diligence
agreement, along with an extended due
exercise. Due diligence has involved a site
diligence period, to mitigate against risk
visit by company management and a short
in-country so that in the unexpected
drilling programme to test the thickness of
event of things not going well politically
lithium mineralisation and see whether it
or geologically, the company hasn’t over
continues at depth.
committed early on.
all five holes intersected pegmatite dykes,
The Chuatsa Vanadium Project
confirming that lithium mineralisation
The company also recently secured the
continues at depth below surface outcrops
Chuatsa project, located around 140 km
and old workings. In addition, lithium
Northeast of Harare, a vanadium asset which
minerals identified in the drill intersections
was subject to historic exploration by Anglo
included spodumene and lepidolite. Samples
America Prospecting in the early 1960s,
from the pegmatite intersections have been
although all activity at the site ceased in 1964
submitted to an independent laboratory in
when the owners concluded that recovery of
South Africa for analysis.
the resources would be uneconomical at the
Results from this campaign revealed that
time. If the results come back as expected, Six Sigma will execute phase one of the deal
However, the same cannot be said today with
which will see the company take an initial
the vanadium market currently experiencing
30% tranche in the project. The company will
a price boom, thanks to the advent of
then look to advance phase two and a more
vanadium flow redox batteries, which are
dedicated drill programme aimed at defining
used in energy storage and other sustainable
resources in the project.
energy applications.
“We have a minimum target size of 10 million
While there are obvious challenges posed
tonnes (Mt) at an economic lithium grade of
by a project that has been untouched for
pegmatite from the project,” reveals Groves.
over 50 years, Six Sigma has commenced
“Phase two is essentially fleshing out what
reconnaissance work at Chuatsa and is
the scope of the resources are and once
confident in the asset’s long-term potential as
we’ve reached a key decision there we will
a significant vanadium resource.
acquire another 30%. “Despite the historical exploration that has “Once we have established a 10 Mt JORC
taken place there, I consider Chuatsa a virgin
resource we will execute the final part of the
greenfields project,” declares Groves. “We will
deal for the 20% and by then we will be into
use the historical work as a helpful guide of
some sort of feasibility study.”
where we are meant to be looking.
ResourceGlobal GlobalNetwork Network 107 Resource
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MINING |Six Sigma Metals
“Our team on the ground is trying to
cobalt or a number of other metals too.
relocate any workings, trenches and drill
When we do our initial testing, we will look
hole locations, then we would go back in
for a full suite of metals.”
and do soil and rock sampling and establish the extent and nature of mineralisation
Looking towards a pathway to production
at surface, before going into trenching or
at the Shamva project, Six Sigma aims to
drilling programmes to try and establish the
model its own timeline on that of Prospect
potential of the vanadium resource.”
Resources, who have managed to break ground at its Arcadia project less than two
In addition, some of the historical workings
years after acquiring it.
on the project have also shown significant copper content existing within the deposit,
Having a neighbouring company that has
which makes for intriguing reading amongst
completed all the hard work with a similar
the management team at Six Sigma.
project is certainly reassuring for the management at Six Sigma. “We will aim to
“There is an interesting suite of metals that
fast track the development as much as we
have already been identified at the site and
can,” reveals Groves.
it’s not unknown for these things to have
Resource Global Network
â&#x20AC;&#x153;Within 18 months I expect us to have
With a new name and a new commodity
significant resources with a high level of
focus, Six Sigma means business in the new
confidence in them, and at least commenced
age metals industry, likewise does Zimbabwe
if not completed a feasibility study looking at
as it looks to usher in a new era of prosperity,
a mining operation.â&#x20AC;?
with a mineral resources sector boosted by foreign investment at the heart of the
The Chuatsa project is more of a long-
nationâ&#x20AC;&#x2122;s economic revival.
term option given the early nature of the development and the fact that it is likely to be quite a large undertaking, although the company is happy with the initial progress made at the project thus far.
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MINING | Barra Resources
BARRA RESOURCES
Targeting two high demand commodities in Western Australia
Resource Global Network
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MINING | Barra Resources
Barra Resources listed on the ASX in 2000 on the back of some gold assets owned by Australia’s largest underground mining contractor Barminco. The company’s initial focus remained on gold exploration and production in Western Australia, although its motivation to stimulate shareholder growth led to Barra taking an interest in the Mt Thirsty Cobalt-Nickel project back in 2006. At Mt Thirsty, Barra established a 32 million tonnes (Mt) resource at 0.13% cobalt and 0.55% nickel, however managing director and CEO Sean Gregory recalls how the project then sat on the firm’s balance sheet as a ‘sleeper’ for around 10 years, until recent movement in the cobalt price brought the project sharply back into focus. While rapidly accelerating cobalt prices in the last year has naturally dictated a flurry of activity on the Mt Thirsty project, Barra recognises the tremendous exploration upside around historical gold mines in WA. Thus, the company adheres to a dual commodity focus in this long-established and stable mining jurisdiction. “If you were to pick two commodities that people would like to invest in, certainly gold and cobalt would be close to the top of most
Resource Global Network
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MINING | Barra Resources
investor’s lists. That’s why we are progressing
“The weathering at Mt Thirsty is deeper
both,” says Gregory.
and more pervasive such that the cobalt has broken away from the silicates and the
“This also provides a natural hedge in our
iron oxide, and the cobalt is now with the
balance sheet and for our investors and
manganese in a mineral called asbolane.
enables us to fill up the year with news flow from both assets.”
Mt Thirsty Western Australia has an incredibly diverse
“It is this mineral which is amenable to agitated atmospheric leaching, which allows us to recover that cobalt at relatively low capital costs.”
range of ancient geological structures and hosts several very large laterite nickel-
Barra delivered a scoping study for the Mt
cobalt deposits, many of which have been
Thirsty project in October last year which
discovered and taken into production.
outlined a host of attractive project metrics including a low capital cost of AUS$212
Yet Mt Thirsty goes against the grain in this
million, largely due to the aforementioned
respect, being a pure cobalt project with
geological idiosyncrasies within the deposit.
some nickel credits. The reason for this is the underlying geology, explains Gregory.
Based on conservative assumptions, which
Resource Global Network
Wood has the capability to extract cobalt and nickel for purification and recovery using methods such as high pressure acid leaching (HPAL) or pressure oxidation (POX). The extracted solution can be used for final products such as LME grade A cathode or intermediates such as mixed hydroxide (MHP), mixed sulphide (MSP), or cobalt and nickel sulphate crystal products. www.woodplc.com
allow for just 73% of the cobalt metal and
“For example, the scoping study was done
21.5% of nickel metal to be recovered
on a long-term cobalt price of US$72,000 per
through Barra’s process, the study concluded
tonne. Recently it has risen to about $90,000
that Mt Thirsty can deliver a healthy net
per tonne and if projected forward the NPV
present value (NPV) of $290 million.
increases to around $500 million.
“We think we can significantly optimise those
“As the cobalt price rises further still, the
recoveries in the upcoming pre-feasibility
economics of the project are just going to get
study and indeed all variables in the PFS
better and better. Critically, this surge in NPV
will be optimised to improve the already
is achieved without adjusting any other key
attractive economics,” claims Gregory.
variables such as recoveries and nickel price,” he adds.
Separating Barra’s future revenue streams off all profits will come from cobalt, with the
A charged-up cobalt market
balance of 16% from nickel. Therefore, a key
Nowadays it is common knowledge that
aspect to consider is the extent to which the
cobalt is one of the key components in
from the Mt Thirsty project reveals that 84%
project is heavily geared towards leveraging a rechargeable batteries in a multitude of cobalt price hike.
modern consumer products, from laptops to smartphones and electric vehicles (EVs).
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MINING | Barra Resources As such, around half of the world’s cobalt production supplies the battery market. However, while the burgeoning battery market is certainly sweetening the deal for cobalt producers there remains 34 other industrial uses for cobalt, including in jet engines, hard alloys and ceramics. All things considered cobalt is already one of the most in-demand commodities in the world, and now the EV story is upon us. “Every major commentator is forecasting a rapid uptake in EVs as we reach price parity for ownership of an EV versus a petrol vehicle.” Gregory refers to a recent study in the Journal of Applied Energy which identified that price parity between EVs and petrol vehicles on a total cost of ownership basis has already been reached in the US, UK and Japan. “We see a major structural shift in front of us and that is manifesting itself in higher prices for cobalt,” he deduces. “On the supply side, 97% of all cobalt is a by-product of nickel and copper mines. Now as cobalt prices go up, the nickel and copper mines aren’t necessarily incentivised to start new mines.”
ResourceGlobal GlobalNetwork Network 119 Resource But, being a true cobalt project with nickel
Along with its 50:50 joint venture partner,
credits, Mt Thirsty is one of a limited number
fellow WA-based mining outfit Conico,
of projects being mobilised that can respond
Barra is charging into work on the PFS and
to this demand increase. “We see that those
expects to publish the study by the end of
simple supply-demand dynamics are going
the year, although Gregory stresses that the
to push the cobalt price higher going into the
company is taking a meticulous approach
future.”
to ensure maximum value is extracted for shareholders.
Another potential value-adding element down the line for Barra stems from the fact
The JV has been on foot for many years
that Mt Thirsty is located in the safe and
now and operates very effectively, he adds.
ethical mining jurisdiction of WA. The same
However, it’s also worth noting that while the
statement cannot be routinely applied to the
project already has a long 21-year mine life,
DRC’s industry, which supplies roughly 56% of additional tonnages from the deposit exist the world’s cobalt.
outside of Barra and Conico’s acreage and are owned by Galileo Mining, who recently
Of that percentage, around 20% comes from
floated on the ASX at a significant premium.
artisanal mines, where serious concerns have been raised regarding human rights abuses,
“The present ownership structure really puts
child labour and low industrial standards.
the opportunity in front of us for a regional development story and for some cooperation
“The intelligence that we are getting is that battery manufacturers are prepared to pay a premium for material that is sustainably sourced. We can certainly guarantee that from WA, we’ve got a well-established mining jurisdiction and very high environmental standards.”
in the region.
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MINING | Barra Resources
“If you were to pick two commodities that people would like to invest in, certainly gold and cobalt would be close to the top of most investor’s lists” Sean Gregory, managing director and CEO
Resource Global Network “I’m now calling the region ‘cobalt valley’, based on the number of high quality players involved there and the opportunities available to develop a significant industrial centre for cobalt production.”
Old but gold Gold has been a staple of WA’s mining industry since the very beginnings of the trade at the end of 19th century. Barra’s current gold portfolio is comprised of a brownfields asset in the shape of the Burbanks project and a greenfields deposit named Phillips Find, both of which are located around Coolgardie. The Burbanks mining centre was first mined in 1885 and over 420,000 ounces of gold have been produced from the centre ever since. “We have a resource in the ground of 95,000 ounces and our geologists have identified an exploration target of 223,000-564,000 ounces. “Based on that tremendous potential, we really think it is a fantastic investment for a relatively low cost to continue to explore that project and build on those ounces to add value.” While the company has decided to limit its near-term activity across the gold portfolio so as not to distract from the cobalt project, it does hope to grow its existing gold resources and add value via some modest exploration expenditure.
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MINING | Barra Resources
“We have just announced the very positive
Barra will now move on to test other
results of a drill programme at Main Lode
targets at Burbank including Kangaroo Hills
within the Burbanks project, which has
along with targets at Phillips Find. “We are
significantly expanded the strike length of the
confident that by backing our geologists with
mineralisation out to 650 metres and is the
modest investment in gold exploration they
first step towards realising our exploration
will do their work and steadily build that
target.”
resource base.”
Resource Global Network which will be delivered by safety-focused contractor Egan Drilling. Meanwhile, on the cobalt front investors can expect swift progression through the studies, with the PFS next off the list. After an extensive tendering process Barra selected Amec Foster Wheeler, a subsidiary of global engineering house the Wood group, to undertake the main body of the PFS along with engineering and metallurgical testwork. They will be supported by Snowden Mining Consultants in mine planning, Golder Associates in many technical areas and Talis Environmental Consultants. In the medium term, Barra is beginning to assess downstream partnership opportunities for its cobalt product, particularly with companies in the battery manufacturing market. “We really see that the PFS should give the market a good baseline of the value of this project and we think it would be an appropriate time to bring in strategic partners to maximise value for our shareholders, who have been supporting us in moving the project through the development milestones.” Over the coming months, investors can expect a steady stream of news flow from the gold side of the business as the company invests in small-scale drilling programmes
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MINING SERVICES | Cougar Mining Group
COUGAR MINING GROUP
Resource Global Network
A one-stop shop for Australiaâ&#x20AC;&#x2122;s underground coal mining sector
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MINING SERVICES | Cougar Mining Group
Cougar Mineworks was founded in 1999 by Craig Barnett, who initially worked as a fitter across Queensland’s Bowen Basin region and also in Papua New Guinea. The business grew steadily over the next decade, taking off after 2009 when Barnett and Chad Dillinger established Cougar Minehire. At this stage, the company morphed into a contracting and hire company for the underground coal mining industry. This growth was consolidated in 2012 when the pair formed Cougar Mining Group through the amalgamation of several mining services entities. Dillinger explains that Cougar’s growth over the last 20 years is a testament to his business partner’s ability to spot opportunities as they arise and capitalise on them. In fact, Cougar has not just built on its services over the last two decades, it has also diversified into new areas and today Cougar provides a full range of services to the underground mining space across the East Coast of Australia. One would expect that the fortunes of a company like Cougar would have been hampered by the recent downturn in the
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MINING SERVICES | Cougar Mining Group
global commodities industry, which impacted
equipment from auctions whilst repairing our
hundreds of Australian mining services firms
own fleet in preparation for when the market
from 2013 to 2015.
turned around.
However, during this testing period for the
“We also changed the dynamic of the
resources industry, Cougar was able to
business from a direct run of mine hire
maintain growth while hiring staff and buying
company to a service, repair, overhaul and
equipment at every opportunity.
support business. We basically added a number of offerings to the business which
“It was a very difficult time for the industry,
gave us crucial stability.”
including Cougar,” admits Dillinger. “During this time, we took the opportunity to
Cougar’s underground hire fleet is the second
consolidate our workforce, retaining our core
largest in Australia and offers run of mine
people to build our business as others were
and longwall relocations equipment, while its
retracting.
field services include repair and overhaul and spare parts support.
“We took the risk, borrowed funds, invested in new equipment, bought second hand
Echoing Dillinger’s earlier sentiments on
equipment at a discounted rate, and acquired
Cougar’s activity during the downturn,
Resource Global Network
Barnett reveals that the company bought
the major resources hubs of the East coast,
second hand gear from all over the world at
with employees based around workshops in
opportunistic prices. “We just had to back
Mackay, Emerald, Newcastle and Wollongong.
ourselves, plus we overhauled and repaired all of our equipment ourselves in-house,
In fact, wherever coal is produced across the
without relying on third parties and we did
region, Cougar employs people there. The
that very efficiently.”
company also tries to support local people
An empowered workforce However, the most important consideration
and businesses as much as possible through its work in the regions. “I am local to Newcastle and that is where
for Cougar during the slump was maintaining we are based, so we are still very much a stable workforce. While there were some
a local business, and Craig is local to the
small-scale changes to the workforce, the
Bowen Basin coal mining area. We do try and
company was able to preserve and build
support local business as much as we can, for
on its core staff complement and has been
instance we have seven apprentices that we
reaping the benefits ever since.
employ from local areas.”
Cougar employs more than 150 staff across
Barnett believes that this apprenticeship
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scheme is important not only for Cougar
With a reliable staff base, Cougar has been
and the individuals, but also for the wider
able to expand its service offering during the
industry, which has suffered a significant
last few years to the point where today there
shortage of tradesman for decades now.
are four business divisions under the Cougar umbrella: Cougar Mining Group, Cougar
“There was even a shortage of tradesman
Drilling, Cougar Stratajacks and Cougar IME
when I did my training 35 years ago. We
(Industrea Mining Equipment).
have identified that and tried to put back in what we have got out of the industry, so
Adding Industrea
we try to employ far and wide in the local
The last subsidiary on the list, Cougar IME,
communities.”
was established after the company’s recent
ResourceGlobal GlobalNetwork Network 135 Resource
acquisition of Industrea Mining Equipment
offering that Cougar can give to the market,”
from General Electric in January 2018.
says Dillinger.
Going forward, the Cougar IME brand will focus on the production of mechanical and
“We saw a lot of the OEMs and major
electrical equipment, essentially providing
manufacturers backing out of the market and
Cougar with the capacity to manufacture
somebody needed to support the Australian
a full range of underground equipment as
underground coal mines for the equipment
well as the Original Equipment Manufacturer
that was being sold and operated in Australia.
(OEM) rights and responsibilities for 800 machines across the world.
“Someone needed to step forward and support the equipment that was in use. We
“The main thing it has done is add another
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MINING SERVICES | Cougar Mining Group
Resource Global Network
saw the acquisition as an opportunity for
Along with Barnett and Dillinger there are
Cougar to increase the size and scale of our
two other specialist drilling managers who
business and to support the equipment we
are shareholders working in the business,
already own, but also to support the industry
transitioning the partnership into a new form
with an install base of around 800 machines
of involved ownership.
worldwide.” Cougar Drilling is the company’s dedicated After the IME purchase, Dillinger and
underground in-seam directional drilling
Barnett agree that the company’s array of
entity, which competes with three major
equipment covers most requirements of
drilling services companies in the region.
an underground mine in the coal industry, placing Cougar in a strong strategic position
The majority of Cougar Drilling’s work is
as it looks to further build the business.
centred on methane gas draining and water
Cougar Drilling
drainage, which are essential processes in the safe cutting and production of coal.
The Cougar Drilling business was established
Further to this, Cougar Drilling designs and
in 2016 with Barnett and Dillinger appointing
manufactures innovative directional drilling
Justin Tredinnick as the managing director.
systems for the open market.
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MINING SERVICES | Cougar Mining Group
Cougar Stratajacks
in the market due to the fact that it allows
The Cougar Stratajacks division offers the
the mine site to complete high volume
latest development in secondary roof support installations in a safe environment from systems for the mining industry.
ground level.
The worldwide patented Stratajack is an
â&#x20AC;&#x153;We have taken a lot of the interaction from
active standing roof support.
hostile work environments away with this product,â&#x20AC;? he says.
Barnett believes this product is superior to competing secondary roof support systems
Cougar Stratajacks has been an eight-year
Resource Global Network installed to date with 4,000 of those being installed in the last 12 months. “The key points for the Stratajack are: It’s safer, it’s faster to install, it’s more economical to the end user and you actually get a better result to control the roof and the floor,” Barnett summarises.
Cougar’s 20th anniversary As Cougar approaches its 20th birthday, Barnett and Dillinger state with confidence that the company is a vertically integrated OEM offering the full suite of services to the underground coal mining space. “We have built our offerings strategically as we have seen opportunities arise. During the mining downturn, we realised there were things that a mine just could not turn off, so we focused on those. “Cougar continues to develop a strong order book into the future as the coal mining industry enters a solid period of sustainable growth.” venture that has matured greatly over the last year moving from research and development phase to commercialisation. “It’s still in its infancy in terms of penetrating major market volume. We have about 6,000
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MINING SERVICES | Kerman Contracting
KERMAN CONTRACTING One of Western Australiaâ&#x20AC;&#x2122;s most experienced industrial construction contractors
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MINING SERVICES | Kerman Contracting
Brian Kerman established Kerman Contracting in 1981 at the sprightly age of 52 having worked across Western Australia’s construction sector for a number of years. The company initially picked up work from Brian’s traditional base around structural mechanical piping, where he undertook minor maintenance and repair work. The business then grew progressively based on strong support from a couple of key customers, notably Wesfarmers. By the early 2000s, Kerman was under the leadership of Brian’s son Chris and had moved into the resources sector after sensing opportunities around non-process infrastructure, following a successful job with mining giant Rio Tinto. Over the ensuing decade, Kerman consolidated its reputation in WA’s resources sector before re-strategising the business around three years ago in a quest to diversify.
“Over the years we have been able to build strong relationships with our clients. We always try to communicate with them and
With such a long history working in WA’s
articulate what our value proposition is, so
industrial services sector, Kerman has a
then they understand what we can offer,”
strong claim to be one of the state’s most
says James Rowdon, business development
experienced design and construction
director at Kerman.
contractors, and what sets Kerman aside from competitors is its commitment to
“Management has always stuck by what it’s
fostering relationships with clients.
said it would do. Everybody is very much
Resource Global Network
involved, all the directors are hands-on and
These values are wholly embodied by the
contactable by the clients, so if there are any
people who make up the company, from the
issues they can deal with them directly and
top down to the bottom, and Rowdon is quick
resolve them.
to emphasise that Kerman’s people are its most important asset.
“Kerman has never walked away from a job. We make sure that every job is delivered to
“Our staff feel like part of the family and rest
the quality of the client’s expectations. In
easy knowing that they can be part of the
fact, probably 60-70% of our work is repeat
decision making and part of a team. It’s a very
business,” he reveals.
open place to work and everyone enjoys the
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MINING SERVICES | Kerman Contracting
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spoils of success together, along with the
“Then we moved into the iron ore sector
lessons learnt from challenging situations.”
and now we are doing a lot with the new
Mining expertise
commodities such as lithium, graphite, nickel and cobalt which are all centred
Kerman provides fully integrated design
around battery storage and construction.
and construction expertise to a wide array
We have been fortunate to play in multiple
of industrial facilities including non-process
commodities down the years, from gold,
infrastructure, processing plants, bulk
uranium, vanadium and more.”
storage facilities and even accommodation villages. Often this kind of work is conducted
However, mining is not the only sector that
in remote locations, such as mine sites.
Kerman is highly proficient in, following the company’s decision to diversify out of
Therefore, mining is an industry that Kerman
resources in order to reduce exposure to
is very closely aligned with, in terms of its
a single market. For instance, Kerman has
experience and current capabilities. “We
been involved in the agricultural sector from
entered the industry very early on and were
the 1990s and has been able to successfully
doing mineral sands from almost since day
apply its wide-ranging skillset to a number of
one,” says Rowdon.
industrial facilities at agricultural sites.
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MINING SERVICES | Kerman Contracting
OUR INDUSTRIAL KNOW-HOW
CASE STUDY: LITHIUM PROCESSING PLANT, KWINANA
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Kerman Contracting recognised the unique ability of Peritas Group to provide competitive design solutions for the non-process infrastructure at the Tianqi Lithium processing plant. Peritas worked with Kerman to develop a competitive design for tender purposes and worked closely with the construction team to deliver the buildings seamlessly. Peritas looks forward to an ongoing association.
www.peritasgroup.com.au
The company is currently working with CBH
But because we had that transferable skillset
Group - Australia’s largest exporter of grain
and identified the need to branch out early
– and was recently handed a significant
enough, we were able to move into other
contract for the design and construction
sectors smoothly,” he says.
of four circular grain storage cells at CBH’s existing Chadwick receival site in Esperance,
Nonetheless, the resources sector remains
WA.
a key area of business for Kerman and with WA’s mining industry beginning to pick
Kerman’s agriculture workbook is currently
up once again, driven by large-scale iron
stacked to the brim with similar jobs and
ore replenishment projects and greater
it has been this diversification that has
investment in ‘new commodity’ projects like
been the company’s saviour in recent years
lithium, Kerman has significantly benefitted
according to Rowdon, particularly as WA’s
from the sector’s resurgence.
mining industry is only just recovering from the downturn which peaked in 2016.
“Because we are quite well known in the resource sector, as soon as those
“If we hadn’t diversified we would have died a
opportunities started popping up again, we
slow death, which would have been a crying
were often contacted early which allowed
shame after over 30 years in the business.
us to secure the work. We’ve definitely
ResourceGlobal GlobalNetwork Network 147 Resource
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MINING SERVICES | Kerman Contracting
“Kerman has never walke sure that every job is client’s expectations. In fact
James Rowdon, bu
benefitted from an improved market but the
Furthermore, as part of its diversification
big positive for us is that we weren’t wholly
process Kerman has been able to bring
reliant on the resource sector anyway.”
these health and safety ethos into other
Health and safety Contracting within the resources industry
sectors which are not as robust from a safety perspective as the mining sector, for instance the agricultural sector.
demands an all-encompassing commitment to upholding the highest health and safety
“Our safety processes have been through
standards, and Kerman’s impeccable safety
the rigours of independent audits, we have
record is a testament to its culture of
achieved federal safety accreditation which
looking out for one another. This company
represents our ability to service any job
culture has been fostered through a safety
around the country in a safe manner, being
programme called Save 4 Life.
recognised by the Federal Government. That is a feather in our cap.”
“Save 4 Life is a behaviour-based programme that expects everyone to look after
Kerman also places a lot of emphasis on
themselves but also their mates and all
corporate social responsibility across a
the people around them. This could mean
number of areas, and this permeates down
alerting someone to a potential hazard and
from the company founder and chairman
then explaining the controls in place to stop
Brian Kerman, who is a keen philanthropist
that. We try and instil these safety and design
and has set up a trust which donates
solutions in our staff very early on.”
considerable sums to worthy causes across WA.
Resource Global Network
ed away from a job. We make delivered to the quality of the t, probably 60-70% of our work is repeat business” usiness development director
programmes for locals to engage with the local community. We have had projects where we are very close to residential areas and so we have had to have stakeholder engagement to minimise dust and things like that. Its always about keeping the community informed.” The near-term prospects of Kerman Contracting look secure when you take a glance at the firm’s current order books, which includes the design and construct of a ship unloader at the Port of Newcastle. Kerman is also providing structural mechanical piping services to Talison
In terms of employment, local and indigenous Lithium’s crushing circuit down in participation has been a key driver for
Greenbushes, WA and is close to completing
Kerman down the years and continues to do
some non-process infrastructure work for
so even in the company’s business outside
Chinese mining firm Tianqi Lithium at its
of WA. “[Local and indigenous employment]
lithium hydroxide facility in Kwinana, WA.
is part of our license to operate, part of the reason we are in business and why
“In the second half of the financial year we
people want to work for us as well,” explains
will be looking to finish some of this work
Rowdon.
while looking for other jobs and there is quite a pipeline of opportunities showing up as the
“We are currently doing a job in Newcastle
market keeps improving.”
over in New South Wales and there we are sourcing at least 40% of the workforce from the local industry. This is local contractors who are supporting their local communities. “In the past we have donated to sporting organisations and introduced training
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APPOINTMENTS & EVENTS
APPOINTMENTS Marie Inkster to become CEO of Lundin Mining following Paul Conibear’s retirement Lundin Mining has commenced a transitionary period which will see Marie Inkster succeed the retiring Paul Conibear in the role of chief executive officer.
Conibear brings his seven-year tenure at Lundin to a close after leading the company through a sustained period of growth and sound operational discipline. He will work closely with Inkster – Lundin’s current senior vice president and chief financial officer – to ensure an orderly transition.
Mojo Power co-founder lands top job at ARENA Darren Miller, the co-founder of Australian electricity retailer Mojo Power has been named as the new chief executive of the Australian Renewable Energy Agency (ARENA). Energy minister Josh Frydenberg announced that Miller would be taking over the role vacated by founding CEO Ivor Frischknecht from August 27. “Mr Miller has 25 years of professional experience across a range of sectors including in chief executive positions and investment advisory roles,” said Frydenberg.
Martin Kobiela steps into president role at InterMoor Subsea services provider InterMoor has appointed Martin Kobiela as its new president, replacing Tom Fulton, who will become global chief technology officer. During the last six years Kobiela has been responsible for developing and managing the company’s business in Asia, as regional president for InterMoor APAC. He is a chartered engineer with over twenty years of experience in the marine and oil and gas industries.
Acacia Mining loses chairman to AngloGold Ashanti Embattled Tanzania-based gold producer Acacia Mining has announced that its chairman Kelvin Dushnisky will leave the post to become fellow African miner AngloGold Ashanti’s new boss. Dushnisky leaves Acacia with the company still in the midst of a bitter dispute with the Tanzanian government over alleged under-reporting of gold export revenues dating back 17 years. Departing on August 31, Dushnisky will be replaced by one of the firm’s non-executive directors, Rachel English, on an interim basis.
Resource Global Network 153
EVENTS Our pick of the top mining, oil & gas and renewable energy events happening around the world in the months to come
Global Wind Summit September 25-28 Hamburg Germany Glasstec October 23-26 Dusseldorf Germany International Mining & Resources Conference (IMARC) October 29-01 November Melbourne Australia Mines and Money November 26-29 London UK Investing in African Mining Indaba February 4-7 2019 Cape Town South Africa
Want to promote your resources event? Email the editor at editorial@resourceglobalnetwork.com
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