Latest issue of International Mining Project News available (February 26): Rio Tinto has started producing iron ore from the $901 million Mesa A/Warramboo mine in the Pilbara of Western Australia. The open-pit mine will have an initial production of 20 Mt/y, increasing to 25 Mt by 2011. The company is also progressing with construction of its Kestrel coal mine extension in Queensland – due for completion in 2012. News from Newmont includes an increased exploration and advanced project development budget for projects in USA, Ghana, Australia, New Zealand and Peru. Also, Sherritt says it is on course for mechanical completion of the Ambatovy nickel and cobalt project in Madagascar at the end of 2010/early 2011.

At Rio’s Mesa A/Warramboo mine, the first full-length train has left, following the 49 km rail extension to connect to the Deepdale railway running from Pannawonica to the Cape Lambert port. Total high-grade reserves across the Mesa A/Warramboo deposits are estimated at 249 Mt, with a total mine life of 11 years. It will sustain production of the sought-after Robe Valley pisolite ore at 32 Mt/y as production from the Mesa J deposit decreases. Construction of the Robe River joint venture (Rio Tinto share 53%, Mitsui 33%, Nippon Steel 10.5% and Sumitomo Metal Industries 3.5%) mine and rail extension started in November 2007. The mine will employ about 220 people, drawn progressively from the existing workforce at Mesa J and new employees.

The company’s Kestrel mine, located 40 km northeast of Emerald in central Queensland, is an underground operation supplying world markets with up to 4.2 Mt/y of coking and thermal coal. Rio is currently constructing the $1.1 billion Kestrel mine extension (KME), a project to access the mine’s existing resources more efficiently. The extension, due for completion in 2012, will extend the life of the mine by 20 years, and increase capacity to up to 5.7 Mt/y. Over the past 12 months the KME project site has undergone a dramatic transformation. A current focus is the establishment of a water system, which involves the construction of three water management dams, which will have a combined total capacity of 575 megalitres of water.

Newmont says the recent success of its exploration programs, “combined with a demonstrated ability to advance exploration programs through development and into production, has established a platform for future growth. Newmont plans to continue aggressively advancing its most prospective near mine and generative exploration development opportunities into production.” The 2010 exploration budget is between $190 and $220 million, an increase of around 10% from 2009. In addition, funding for advanced project development has increased to between $185 and $210 million, a 40% increase from 2009. Projects that the company is looking to invest in include: the Greater Leeville-Turf project in Nevada, the Subika underground project in Ghana, Boddington in Australia, and multiple programs across Australia, New Zealand and Peru.

Sherritt says that during the fourth quarter of 2009, all major earth-work at the plant and mine sites, the tailings management facility and the offshore oil jetty were completed at its Ambatovy project in Madagascar. In addition, some systems were turned over to pre-commissioning teams during the quarter – a process that will continue throughout 2010 as construction is completed. The project is designed to produce 60,000 t of nickel and 5,600 t of cobalt at capacity and will consist of an open-pit mining operation and an ore preparation plant at the mine site.

There is also news on the first gold pour from A1 Minerals’ BrightStar gold project in the Laverton region of Western Australia and Fluor’s joint venture with Sinclair Knight Merz being awarded a contract by BHP Billiton to execute the next phase of its Rapid Growth Program in the Pilbara; as well as many others. To receive the full 40+ 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.