In the latest issue of International Mining Project News AMEC has been chosen to undertake a caving feasibility study on Oyu Tolgoi, forecast to be one of the largest copper-gold mines in the world. The 25 month contract will see AMEC working with the mining complex’s engineering team to develop an 85,000 t/d block cave operation. Detailed news on this project can be anticipated soon as International Mining Publisher John Chadwick travels to Mongolia to investigate the massive project (to read more on Chadwick’s imminent adventure click here).
In Australia Fortescue Metals Group (FMG) has approved plans to expand its production from 55 Mt/y to 155 Mt/y. The approval sets the platform for a major $8.4 billion works and procurement expansion program to commence at Fortescue’s Chichester and Solomon Hubs. Atlas Iron is also planning an independent feasibility study, as part of good faith discussions with BHP Billiton Iron Ore, in an attempt to find an integrated transport solution involving Port Hedland. The study will run alongside Atlas’ current DFS on its Turner River Hub project which, the company hopes, will be able to produce 12 Mt/y by 2012.
After securing funds Avalon Minerals is launching a major drilling program at its Viscaria project in northern Sweden. The company has already enjoyed significant resource expansions at its wholly owned copper-iron project, which currently has 66.2 Mt of both VMS and skarn type mineralisation, and will expect to convert the majority of its exploration targets into JORC resources. Range River Gold is also looking forward to a productive future as it begins open-pit mining at the Ramornie North and Sarah gold mines at Mt Morgan’s, Western Australia. Alongside the reopened Transvaal underground mine, which will be Mt Morgan’s major producing mine, the mines are the first step towards Range River’s five year 100,000 oz/y production target. In the meantime, PMI Gold is aiming to take advantage of growing Australasian investor interest in West Africa as it launches a $27.5 million IPO to help drive the company’s gold projects in southern Ghana. Both of the near production projects, Obotan and Kubi, are located within the centre of a historically gold rich area and look set to fulfil PMI’s ambitions to become an international gold mining house with an initial 2013 production rate of 100,000 – 150,000 oz/y Au.
In South Australia Centrex Metals has made a drastic change to its mining strategy, announcing a rolling multi-mine production plan instead of the original, single site, start up. This new plan will see the original 13.3 Mt Wilgerup resource quickly followed by higher magnetite volumes from JV projects, and see the JV partners targeting an Inferred resource of more than 500 Mt Fe within two years.
Prophecy Resource has been given the go ahead on its Mongolian projects, with approval secured for a 600 MW coal fired plant by the company’s 1,200 Mt Chandgana project and a final permit for its Ulan Ovoo operations received. The mine is production ready with the official opening ceremony scheduled for November 20, allowing Prophecy to live up to its name as it is perfectly poised to take advantage of thermal coal prices – currently at two- year highs thanks to strong Asian demand. Also in Mongolia, Southgobi Resources has provided an update of its Mongolian operations and released the results of an internal review, caused by unexpectedly high sulphur levels, of the Ovoot Tolgoi coal mine.
In the Ivory Coast Randgold Resources has poured its first official gold bar, overcoming the remote Tongon mine’s location and political distractions to keep to its five year production cycle, with Morila commissioned in 2000 and Loulo in 2005. The company hopes to smash that routine by bringing its Gounkoto project, in Mali, and the Kibali project, in the Democratic Republic of Congo, into production before 2015. Within the last two weeks Silvermex and Genco Resources have proposed and closed a business combination that will see the company’s sharing Mexican assets, while in the USA Energy Fuels is working towards opening the first new uranium mill in the country for 30 years.
Keaton Energy has announced a significant increase in its Vanggatfontein project coal reserve to bring the South African resource to over 30 Mt, while Potash One’s Legacy project is ready to become Saskatchewan’s first greenfield potash production facility in almost 40 years. In Mozambique Beacon Hill Resources’ exploration program indicates that the company may soon be able to announce another resource increase at its Minas Moatize coal mine, as well as a higher yield, while production at the mine has already increased to 8,000 t/month.
FerrAus has released its PFS results to reveal a profitable project, with a resource over 120 Mt, which could be shipping ore by 2014. Cape Lambert Resources has been especially busy as the announcement of Davis Tube results, from its Mayoko project in the Republic of Congo, coincides with a Heads of Agreement with Stirling Metals to sell 100% of the iron ore project. The deal may possibly be used to continue the company’s work at its Marampa iron ore project in Sierra Leone after a maiden JORC Inferred resource has reported nearly 200 Mt at 28.5% Fe.
All this and much, much more in International Mining’s Project News….
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