INTERNATIONAL MINING PROJECT NEWS issue 129 is the usual important and comprehensive fortnightly report on global projects, with about 80 pages of updates. It has new information on two tin projects, four rare earths, six each in lithium, zinc and minerals sands, seven in uranium, seven in molybdenum, 12 iron ore projects, 12 in silver, 14 coal, 25 in copper, 48 in gold and also reflects the ongoing interest in developing other high value niche commodity projects.There is big news from two copper projects. Inmet Mining has approved the development of the Cobre Panama copper-gold-molybdenum project in Panama. Annual copper production is expected to average 255,000 t and gold to average 90,000 oz/y. Total capital cost for Cobre Panama is estimated to be $4.3 billion, not including escalation, interest and working capital.

Marengo Mining provided an update on project development and feasibility activities at its 100%-owned Yandera copper-molybdenum-gold project in Papua New Guinea. Yandera is one of the Asia Pacific’s largest undeveloped copper resources. Marengo is currently completing a Definitive Feasibility Study, providing the foundation for financing the development of a large scale, long life mining and processing operation. Ore production is anticipated to commence at 25 Mt/y, with an initial mine life of at least 20 years, entering world markets in 2015.

Cockatoo Coal has entered into a A$65.0 million loan agreement with KEB Australia to support the ongoing development of the company’s coal assets, infrastructure requirements and for working capital purposes. Among Cockatoo’s key assets as at 31 March, 2011, were:

• Baralaba PCI open-pit coal mine in the worldclass Bowen Basin metallurgical coal region, now being expanded to produce ~750,000 t/y in the next 12 – 15 months
• 1,129.7 Mt thermal coal resources across the Surat Basin and Kingaroy projects in Queensland
• 1,278.8Mt JORC global equity resource portfolio
• Several significant metallurgical and thermal coal buying concerns as strategic investors.

Shore Gold announced the positive results of the combined feasibility study on the Star-Orion South kimberlites, which include the 100% Shore owned Star diamond project, as well as Star West and the Orion South Kimberlite, which fall within the adjacent Fort à la Corne Joint Venture (FALC-JV: 66% Shore and 34% Newmont Mining.

BHP Billiton has received notice from the Saskatchewan Ministry of Environment that ministerial approval has been granted for the development of the Jansen potash project in Saskatchewan. The project is designed to ultimately produce some 8 Mt/y of agricultural grade potash from its 3,370 Mt in-situ mineral resource with an estimated 70 year mine life.

Avalon Rare Metals has priced an underwritten public offering and expects that the offering will yield gross proceeds, before expenses, of $43,665,000 million and intends to use the net proceeds of the offering for the completion of the BFS on the Thor Lake Rare Metals Project.

Australian rare earths company Arafura Resources confirmed the presence of substantial newly discovered shallow rare earths mineralisation at its 100% owned Nolans Bore deposit in the Northern Territory, within an area that had not been extensively tested in past drilling programs.

Gabriel Resources has been granted an archaeological discharge certificate for the Carnic open pit at the company’s Rosia Montana gold and silver project. Gabriel continues to work with the Romanian Government to ensure the project is fully permitted within the laws of Romania and the European Union.

A key stage in the development of the Randgold Resources/AngloGold Ashanti big Kibali gold mining project in the DRC is now under way. Annual gold output in the early years of operation is put at around 400,000 oz.

Albazino-Amursk is Polymetal’s largest and most prospective project. The project involves processing the Albazino deposit’s ore on site into a flotation concentrate which will then be filtered, dried and delivered by truck and barge to the Amursk POX Plant. Start of commissioning is planned for Q4 2011.

Great Western Minerals Group (GWMG) has negotiated a Heads of Terms with Ganzhou Qiandong Rare Earth Group (GQD) of China to build a rare earth separation plant in South Africa, located in proximity to GWMG’s Steenkampskraal operation.

Alliance Resource Partners has approved development of the Gibson South mine. ARLP’s independent operating subsidiary Gibson County Coal (South), LLC will develop the Gibson South mine as an underground mining complex using four continuous mining units employing room-and-pillar mining techniques to access approximately 48.4 Mt of medium-sulphur coal from the Indiana No. 5 coal seam.

Newmont Mining’s Board of Directors approved full funding for the Conga project in Peru and the Tanami Shaft project in Australia. Combined, the two projects are expected to add approximately 400,000 oz (attributable) of gold and up to 100 Mlb of copper production per year once commercial operations commence in late 2014 to early 2015.

Gloucester Coal has completed the acquisition of Donaldson Coal Holdings from Noble Group and the acquisition of Ellemby Holdings and its controlled entities (Monash Group) from Ellemby’s shareholders. Completing the acquisition of Donaldson and Monash was a significant step in Gloucester’s strategy to transform the company into a leading Australian coal producer. The acquisitions increase the company’s resource base from 340 Mt to 1,512 Mt.

At Freeport McMoRan’s Cerro Verde mine, the feasibility study for a large-scale concentrator expansion was completed in second quarter 2011. The $3.5 billion project would expand the concentrator facilities from 120,000 t of ore to 360,000 t/d of ore and provide incremental annual production of approximately 600 Mlb of copper beginning in 2016. FCX expects to file an environmental impact assessment in the second half of 2011.

Lundin Mining’s Neves Corvo Zinc Expansion Project was completed on schedule and on budget at €44 million. First ore was milled in early July and a saleable zinc concentrate has been produced. The circuit is designed for 1Mt/y ore throughput enabling 50,000 t/y zinc metal production in concentrate.

All this and much, much more in the July 15 issue of International Mining Project News….

To receive the full report, subscriptions to this service can be registered and paid for on-line (SUBSCRIBE TO IM PROJECT NEWS BUTTTON), or contact [email protected] for a free trial copy.