Latest issue of International Mining Project News available (January 2): How will 2009 treat projects? This is the question on every company’s lips, but what answers can project news give us? Covering the closing weeks of 2008, and very early news of January, it shows that projects are still operating in uncertain times. On the one hand there is progression and a cause to be optimistic – Bonaparte Diamond Mines has a maiden mineral resource estimate – yet there are other signs that all is not well – Australian mid-tier miner, Oz Minerals, putting its Avebury nickel mine on care and maintenance. This could become the standard project pattern in the next few months.
There is news of Sundance Resources’ ‘principle’ agreement with the Cameroon government, which details several planned developments for its Mbalam iron ore project. The terms, set out in a framework agreement dated 18 December 2008, form the basis for the Mbalam Convention which is expected to be ratified by the Parliament of Cameroon following completion of the feasibility study. The Chairman of Sundance, George Jones, said “we are currently targeting staged production of up to 50 Mt/y”, with production estimated to commence in 2012.
Sundance’s Cameroonian subsidiary, Cam Iron, recently announced completion of the first stage of drilling at Mbalam and, following the execution of the agreement, will focus its attention on securing strategic offtake and financing partners for the project. This will help facilitate completion of necessary development studies, government approvals and commercial arrangements required for project financing this year.
Returning to Bonaparte Diamonds’ news, the company details a 196.1 Mt Inferred resource ranging from 13.4% to 18.1% phosphate for its Meob project off the coast of Namibia. The estimate is based on a total of 115.3 million m3 at a 10% P2O5 lower cutoff grade and an estimated in-situ wet bulk density of 1.7 t/m3. The Meob project forms part of the joint venture between Bonaparte (42.5%), Namibian partners, Tungeni Investments (15%) and Union Resources (42.5%). Preliminary results are based on sampling programs completed in November 2008 and are expected to be followed, early this year, by a further resource update after additional and deeper core sampling.
This upbeat news meets contrastingly with Oz Minerals’ decline at Avebury on the west coast of Tasmania. CEO, Andrew Michelmore said, “in nine months we’ve seen the nickel price drop by 68% – an unprecedented fall in such a valuable commodity. At these prices, it is simply more economical to keep this metal in the ground and resume production when prices improve.” The company is currently discussing impacts with its contracted buyer, the Jinchuan Group, expecting the life of mine supply agreements to continue when production resumes. Commissioned in August, Avebury has produced 10,381 t of nickel concentrates up until 19 December. News from over 35 other projects is also included, as well as five project people appointments.
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