Latest issue of International Mining Project News available (January 29): There has been lots of movement in the mining industry in the last two weeks, hence a 50+ page issue of Project News. News includes a joint venture between Orcobre and Toyota on a lithium/potash project in Argentina, an update on restarting production at Genco Resources’ La Guitarra silver/gold mine in Mexico and a memorandum of understanding (MoU), leading to a joint venture, between Khan Resources and MonAtom, Mongolia’s State-owned uranium development company, to develop the Dornod uranium project in Mongolia. There is also news on BHP Billiton’s development of its Jansen potash project in Saskatchewan, Canada.
The Orcobre deal with Toyota, signals Japan’s intent on getting a slice of the lithium pie. The agreement on the Salar de Olaroz project in Argentina will see Toyota Tshusho providing $4.5 million to fund the completion of the definitive feasibility study and other associated pre-development activities, expected to be completed in the third quarter of 2010. Subject to the finalisation of the terms of a joint venture operating agreement on completion of the study, Toyota Tsusho will acquire a 25% equity interest in the joint venture at a cost based on the NPV estimated from the definitive feasibility study. The project is located in the Jujuy Province. Geos Mining of Sydney estimated (April 2009) an Inferred resource of 350 million kL of brine at 800 g/kL lithium and 6,600 g/kL potassium to a depth of 55 m depth over the properties then held, equivalent to 1.5 Mt of lithium carbonate and 4.4 Mt of potash.
Genco Resources has an update on ongoing activities to restart production at La Guitarra mine in Mexico. Mine staff has reported, with the exception of some flooding in the San Rafael mine which is now being addressed, that the infrastructure is in good condition. The company is currently evaluating several options for restarting mining operations at La Guitarra and expects this process to take six to eight weeks. La Guitarra mine presently consists of two underground operation centres and a flotation mill with a proven capacity of 320 t/d. Genco aims to increase silver production and reserve/resource growth at the project.
The news on Khan Resources’ Dornod project shows it is not just Rio Tinto and Ivanhoe Mines making progress in Mongolia. The company’s MoU with MonAtom, according to Khan, enables it to fulfil the requirements of the new law in Mongolia and provide certainty for the project. The new nuclear energy legislation gives the government the right to take ownership without payment of at least 51% of a project if uranium resources were determined through exploration with State funding. Khan plans on developing a producing uranium mine at Dornod that will include a modern state-of-the-art milling and processing facility. Production will average around 3.5 MIb/y of U3O8 over a mine life of 15+ years.
Since the news on BHP’s Jansen potash project, the company has agreed to pay C$341-million in cash for Athabasca Potash, showing its interest in developing potash resources. The new mine at the project is expected to produce around 8 Mt/y of agricultural-grade potash. The $240 million BHP has approved on early-stage project development will be spent on preparation work for production and service shafts, including the required ground freezing ahead of shaft sinking, and completing detailed engineering and equipment and materials commitments. Shaft sinking will begin once full environmental permits are in place, which is targeted for mid-2011. The project is in the final stages of a prefeasibility study and is expected to move to feasibility phase in mid-2010, with a full investment decision expected in late 2011.
There is also news of Peabody Energy’s approval of the upgrade and expansion of the Metropolitan mine in New South Wales, Australia. This expansion is expected to increase capacity by 1 Mt within several years, with capital investments expected to total $70 million, of which approximately $15 million is targeted for 2010. Metropolitan received final permits to proceed with the expansion in the second half of 2009. In 2009, Metropolitan shipped 1.5 Mt of mostly hard coking coal for export to Asian steel producers. It is an underground mine using the longwall method, which ships coal through Port Kembla, south of Sydney.
There is also news of Kinross Gold’s completed prefeasibility study at the Lobo-Marte gold project in Chile which confirms the viability of heap leach processing, and Kopane Diamond Developments’ MoU with an established mining company to co-develop the Lighobong kimberlite project in Lesotho, as well as many more. To receive the full 50+ page report, subscriptions to this service can be registered and paid for on-line (SUBSCRIBE TO IM PROJECT NEWS BUTTON), or contact [email protected] for a free trial copy.