The latest issue of International Mining Project News (almost 60 pages) has reports on 31 Prefeasibility Studies, 21 Feasibility studies, 36 projects in development, eight new mines that have gone into production, 15 existing mines that are expanding, four merger and acquisition announcements and many new appointments to new positions. The reports cover 37 gold projects, 22 copper, 15 iron ore, eight coal and silver projects, seven potash and uranium, five nickel, four rare earths and zinc projects, three each of vanadium, phosphate, lead, tungsten and molybdenum, two each of mineral sands, aluminium and diamonds one of each of precious metals, niobium, manganese, rutile, lithium and platinum. This fortnightly project watch is a great way of keeping up to date with your peers – other mining companies, other consultants or other engineering companies. These issues build into a global mine project overview. If you are a supplier – it is full of potential sales leads.

This week BHP Billiton welcomed the passage of the Roxby Downs Amendment Bill through the South Australian Parliament. BHP Billiton Uranium President, Dean Dalla Valle, said: “This is a major milestone in the progression of our Olympic Dam Project. If approved the project will create one of the world’s largest open-pit mines with the potential to increase copper production from around 180,000 t/y to 750,000 t/y and beyond.

Blackthorn Resources Managing Director Scott Lowe says: “The decision to enhance the Perkoa project represents a very important and positive milestone for the project. The addition of silver and lead credits plus the lower operating costs made possible through open-cut mining and increased throughput will make the project more robust and capable of withstanding zinc market volatility.” Perkoa is a zinc mine that is currently under construction in Burkina Faso and is being operated as a joint venture between Blackthorn Resources (39.9%) and Glencore International (50.1%), with the remainder (10%) being held by the government.

The Gravenhage manganese project DFS has confirmed the technical and economic viability of a 1.5 Mt/y ROM manganese development in the Kalahari region of South Africa. Initial capital expenditure is estimated at $180 million including EPCM, contingency, Owners’ costs and pre-production costs, with life of mine average operating cost of approximately $2.90/t (dry). The resource (JORC) has been updated to 117.9 Mt at 38.3% Mn.

Noble Mineral Resources has started mining at its Bibiani gold project, in Ghana. Production at Bibiani is expected to ramp up to rate of around 150 000 oz/y in 2012.

Aspire Mining has entered into an Alliance Agreement with Noble Group to assist with the development of the Ovoot Coking Coal Project in Mongolia. The Agreement covers supply chain logistics to deliver Ovoot coking coal to Chinese, north Asian, and seaborne coal markets. Noble Group has been granted marketing rights to at least 50% of the first 5 Mt of coking coal produced at Ovoot, subject to the establishment of suitable road, rail and port logistic paths to customers.

Petropavlovsk has commissioned its fourth hard-rock gold mine, Albyn.  The mine, located in the northeast of Russia’s Amur region, is relatively close to its other gold assets and was commissioned ahead of schedule.

Anglo American has delivered first copper production on schedule from its Los Bronces expansion project in central Chile. The expansion of Los Bronces is expected to more than double (on average over the first three years of full production) the mine’s existing production of 221,000 t/y and is the second of Anglo American’s four major strategic growth projects to begin production during 2011.

Construction at Canada Lithium’s Quebec Lithium Project has advanced to the point that the structural steel of the process plant is now being erected. The company has also appointed a senior marketing professional whose role is to market its primary product, battery-grade lithium carbonate, the first production of which is planned to occur in 2013. A key aspect of marketing will focus on off-take agreements.

Virginia Energy Resources reports a new state-sponsored economic study by Chmura Economics & Analytics indicates that the Coles Hill uranium project would bring much needed jobs, tax revenue and investment to an area of Virginia (USA) that remains economically depressed.  The study says that the mining operation Virginia Uranium has proposed for Coles Hill would support a total of more than 1,000 direct and indirect jobs and have an annual net positive economic impact of approximately $135 million. The study predicts that over the 35-year life of the operation, the mine could generate almost $5 billion in net accumulated economic revenue for Virginia firms.

Vale has approved the investment budget for 2012, involving capital expenditures of $12.9 billion for project execution, $2.4 billion for research and development (R&D) and $6.1 billion to sustain existing operations. Vale has currently 20 main projects approved by the Board and under construction to implement organic growth. The main projects are detailed in this report and comprise 75% of the $12.949 billion budgeted for project development in 2012.

Rio Tinto’s full year capital expenditure in 2011 is expected to be around $12 billion, in line with previous guidance. Capital expenditure is set to trend upwards in 2012, with around $14 billion of investment in sustaining capital and approved growth projects already planned as Rio Tinto’s growth program gathers pace. Further project approvals may add to this level of investment.

Aecon Group’s Lockerbie and Hole Eastern Division has signed a letter of intent with the Potash Corp of Saskatchewan for a project valued at over C$250 million to install the interior of a new process mill at the mine site near Rocanville. PotashCorp believes new potash supply will be required in coming years to keep pace with rising demand. In 2003, it began a C$7.5 billion expansion program designed to raise annual operational capability at existing mines to 17.1 Mt by 2015 – approximately double the 2005 level.

Karnalyte Resources has secured funds for the construction of the initial phase of its Wynyard Carnallite project, which is expected to produce 625,000 t/y of potash. Construction of the first phase is to begin in early 2012, and based on the most recent technical report, has an expected development capital expenditure of $593 million.

The Ministry of Mines and Energy of the Republic of Namibia has provided to Swakop Uranium, a wholly owned subsidiary of Extract Resources, a notice of preparedness to grant a Mining Licence for the Husab Uranium Project.

Base Resources has secured funds and is proceeding with development of the Kwale Mineral Sands Project in Kenya. A realistic development time line should see the Kwale in production in 2013.

London Mining’s Saudi partner, National Mining Co has signed an engineering contract and an in principle agreement, subject to certain conditions, of an EPC contract, with Korean engineering consultancy STX Heavy Industries regarding the Wadi Sawawin project. Also an MoU for offtake agreement signed with SABIC for 5 Mt/y of direct reduction pellets. Pre-construction design and procurement expected to be completed in Q2 2012, with full financing by end 2012, construction expected to commence in 2013 and first production in Q4 2015

Full details on all these projects and information on and contacts for many, many more are to be found in the December 2 issue of International Mining Project News….

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