Latest issue of International Mining Project News available (June 4): Xstrata’s announcement that it is looking to suspend development of two projects in Australia worth around A$586 million is yet more evidence of the Resources Super Profits Tax’s potential crippling effect on the country. The company’s Wandoan thermal coal project and the plan to extend the life of the Ernest Henry mine are under threat. The press has been circulating rumours of a ‘watering down’ of the tax, however Rudd and his government are yet to back down. This aside, there is still good news on the project front. Bellzone Mining has signed an MoU with China International Fund for the financing of its Kalia iron ore project in Guinea, BHP Billiton has formed a joint venture for its Indonesian thermal/metallurgical coal project, Greystar Resources has received a positive decision from the Colombian Government on its Angostura gold/silver project and Equinox Minerals has unveiled its expansion plans for the Lumwana copper mine in Zambia.

Bellzone’s agreement with the China International Fund (CIF) will cover the entire infrastructure required for the Kalia project. This includes the rail system (including rolling stock), bulk storage facilities, port, port loading facilities, port services and power development required to produce and transport a minimum of 50 Mt/y of iron ore from the project. Bellzone and CIF have agreed to create a 50:50 joint venture to finance, develop, produce, transport, export and sell iron ore from the Forecariah permits held by a subsidiary of CIF in southwest Guinea and CIF will have the rights to purchase 100% of the offtake from the Kalia prospect at market price. Nik Zuks, Managing Director of Bellzone said “This infrastructure project, estimated at $2.7 billion, is intended to form the first leg of developing a multi-user railway and port that is expected to open a number of opportunities for Guinea’s mineral deposits”.

BHP’s joint venture with a subsidiary of PT Adaro Energy follows the completion of government approvals. Adaro has acquired a 25% interest in the Indonesian coal project joint venture, with BHP holding the remaining 75%. BHP Billiton President Metallurgical Coal, Hubie van Dalsen: “”We are progressing study work to identify development options across the seven coal contracts of work. In future, the project will be known as the IndoMet coal project.” Undeveloped metallurgical and thermal coal resources at the project are estimated at 774 Mt. This includes Measured resources of 83 Mt, Indicated resources of 33 Mt and Inferred resources of 658 Mt.

We reported a few weeks back that Greystar Resources was having problems regarding its environmental impact assessment for its Angostura project, however on May 31, it received a positive decision in regard to the company’s appeal with the Ministry of the Environment, Housing and Territorial Development (MAVDT) to reinstate the assessment. Steve Kesler, President and CEO: “We are very pleased with the ministry’s decision to reinstate our EIA as filed. We are committed to the highest standards of environmental stewardship in the development of the Angostura project.” Greystar is in the midst of completing a definitive feasibility study (DFS) on the project that is expected to be published in the second half of 2010. A positive prefeasibility study announced on March 25, 2009 envisions average annual production at Angostura of 511,000 oz of gold and 2.3 Moz of silver over a 15 year mine life.

At Equinox Minerals’ Lumwana copper mine in Zambia, the company has awarded the contract to undertake a feasibility study into a 35 Mt/y expansion, and has approved an additional $10 million to accelerate drilling at the Lumwana Chimiwungo deposit. Equinox has commenced feasibility studies to investigate the expansion opportunities of the Lumwana copper project with the award to Ausenco of a two staged expansion plan for Lumwana. The Phase 1 expansion to 24 Mt/y throughput rate at Lumwana is a continuation of mine ramp up. Phase two will investigate the further expansion of the operation to 35 Mt/y. A scoping study aimed at identifying the appropriate mining and processing scale has indicated that the Chimiwungo orebody would be capable of sustaining a mining rate of 35 Mt/y of ore feed to an expanded Lumwana plant. Further scoping work has indicated that the plant expansion could be implemented by incorporating an additional SAG mill to support a milling rate of similar scale. Preliminary estimates indicate that an expansion to 35 Mt/y would take around three to four years to complete and cost in the order of $300-400 million. The Ausenco work is expected to take about 12 months to complete with results expected by the end of the first quarter 2011.

There is also news of Semafo’s Phase II expansion at its Mana gold mine in Burkina Faso, Continental Coal commencing coal production at its Vlakvarkfontein mine in South Africa, European Goldfields achieving the next milestone in permitting for its Certej gold project in Romania, a host of iron ore projects, as well as many more. 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.