Mining Weekly
Premier has a plan to tackle Mercedes problems
Fri, 24 Jan 2020 09:09:00 +0200
TSX-listed miner Premier Gold Mines has had a “trying” year at its Mercedes mine, in Sonora, Mexico, which fell short of its guided production last year, producing 59 901 oz of gold and 191 306 oz o silver. Excessive grade dilution led to lower-than-planned production, the mining company said on Thursday."2019 was a trying year for our Mercedes mine," stated president and CEO Ewan Downie. "However, we believe that we understand the challenges faced by the mine this past year and have a plan in place to address them.”
ERG suspends Zambia refinery on shortage of cobalt, copper concentrates
Fri, 24 Jan 2020 08:55:00 +0200
Eurasia Resources Group's (ERG) Africa unit said on Thursday it will suspend operations at Chambishi Metals in Zambia due to a shortage of copper and cobalt concentrates required to produce cathode. Zambia, Africa's second-largest copper producer, has introduced a 5% import tax on raw materials which has hobbled the flow of concentrates from mines in neighbouring Democratic Republic of Congo.
Sustainability, investment and digitalisation top agenda at 2020 Indaba
Fri, 24 Jan 2020 08:00:00 +0200
The organising team of the 2020 iteration of the Investing in Africa Mining Indaba notes an increased appetite for engagement within the African mining sector, particularly for discussions around sustainability. Media company Hyve Group content head Tom Quinn says this is evidenced by the “tangible change” in the way that extractive industries are now doing business, with expectations around the manner in which business is carried out key to ongoing capital investment – the phenomenon dubbed environmental, social and governance (ESG) investing.
Lundin Gold CEO looking for acquisitions, open to a takeover
Fri, 24 Jan 2020 07:52:00 +0200
With its first commercial production around the corner, Lundin Gold is looking at options to grow – including acquisitions. The company’s only asset, Fruta del Norte in Ecuador, will reach commercial production in the second quarter, CEO Ron Hochstein said Thursday in an interview at Bloomberg’s Toronto office. The low-cost mine is expected to produce more than 300 000 oz of gold this year, and average 325 000 oz over its expected 14-year mine life. The company’s largest shareholder, Melbourne-based Newcrest Mining, is supportive of a potential acquisition, as is the Lundin family, also a major owner, Hochstein said. “The challenge for us is going to be finding something that’s accretive for our shareholders.”
Freeport shares dented by output drop, higher 2020 spending
Fri, 24 Jan 2020 07:47:00 +0200
Freeport-McMoRan reported a fall in fourth-quarter copper output and said it expected higher spending in 2020 as it transitions its giant Grasberg copper mine in Indonesia to underground mining, sending its shares down 9%. The US miner has spent billions of dollars in the switch from a depleting open pit mine and to develop a coexisting underground mine that would help achieve low cost, long life production and generate significant future cash flows.
Shareholders approve internal restructuring of Sibanye Gold
Thu, 23 Jan 2020 16:45:00 +0200
Sibanye Gold Limited (SGL) and dual-listed miner Sibanye-Stillwater on Thursday announced that all resolutions for the approval of an internal restructuring process to create a new holding company and listings for the group to be effected by way of a scheme of arrangement, had been passed by the requisite majority of votes at a scheme meeting. Completion of the scheme remains subject to the satisfaction or waiver of the outstanding scheme conditions precedent.
Edenville raises £700 000
Thu, 23 Jan 2020 16:30:00 +0200
Aim-listed Edenville Energy has completed its fundraising, securing the necessary working capital to meet the current contracted production demands of up to 12 000 t of washed coal a month from its flagship Rukwa coal project, in Tanzania. Edenville has raised £700 000, before expenses, by way of the placing of 1.7-billion new ordinary shares valued at 0.02p each in the company at a placing price of 0.04p a share with existing stakeholders through Brandon Hill Capital.
Kagem signs wage agreement with unions
Thu, 23 Jan 2020 16:30:00 +0200
Zambian miner Kagem Mining has signed a collective agreement with unions that will result in unionised employees receiving a 10% increase in basic salary for 2020 and a further 10% increase for 2021. The collective agreement followed successful negotiations between Kagem management and representatives of the National Union of Miners and Allied Workers (NUMAW) and the Mine Workers Union of Zambia (MUZ), during which it was also agreed to enhance the company pension contribution from 15% to 20% of basic pay, bringing the effective salary increase to 15% for 2020 and 2021, and the overall increase to 22.5% over the next two years.
Softer demand impacts on De Beers’ fourth-quarter output
Thu, 23 Jan 2020 16:28:00 +0200
De Beers’ rough diamond production for the fourth quarter of 2019 decreased by 15% to 7.8-million carats, driven by lower production in South Africa and Botswana. While trading conditions had improved compared with the previous quarter, production was reduced in response to softer rough diamond demand conditions experienced throughout the year.
RBCT coal exports decline again
Thu, 23 Jan 2020 16:20:00 +0200
South Africa’s Richards Bay Coal Terminal on Wednesday reported a decline in coal exports for the second consecutive year. The private-sector-owned terminal, which works hand in glove with the State-owned Transnet Freight Rail and Transnet National Ports Authority, exported 72.5-million tonnes (Mt) of coal in 2019, 1.32 Mt short of 2018’s 73.47 Mt, which was itself 4.1% less than 2017’s coal exportation.
Power cuts take their toll on Amplats’ output
Thu, 23 Jan 2020 16:15:00 +0200
Power outages implemented by State-owned power utility Eskom continued to negatively impact on precious metals miner Anglo American Platinum’s (Amplats’) platinum-group metals (PGMs) production for 2019, resulting in an overall unrecoverable loss of 38 000 oz of PGMs for the year. In the first half of the year, Amplats’ own-managed mines lost 18 000 oz  of PGMs production owing to power outages that required the mines to shut down,.
Contango raises £1.4m for Zim coal project
Thu, 23 Jan 2020 15:46:00 +0200
Investment holding company Contango Holdings has raised £1.4-million, before expenses, through a conditional placing of 28-million new ordinary shares at £0.01 each to new and existing investors at 5p a share.   Following the completion of the conditional placing, the company anticipates being in a position to shortly issue a final prospectus setting out details of its purchase of the Lubu coal project, in Zimbabwe, from Consolidated Growth Holdings (CGH). The Lubu project is expected to be a near-term metallurgical coal producer.
Endeavour Mining forecasting higher production for 2020
Thu, 23 Jan 2020 15:36:00 +0200
Canada-based Endeavour Mining boosted its production by 6% to 651 000 oz last year and although the company met its guidance, it was at the bottom-end of the 650 000 oz to 695 000 oz range. The Africa-focused mining company explained that it experienced a slower-than-planned ramp-up at the newly commissioned Bouéré higher grade deposit at Houndé, in Burkina Faso, owing to a severe rainy season in third quarter.
Polymetal beats guidance again
Thu, 23 Jan 2020 12:49:00 +0200
Polymetal, one of Russia’s largest gold and silver producers, has exceeded its guidance for the eight year in a row. The LSE-listed miner’s 2019 gold-equivalent production amounted to 1.61-million ounces. This is an increase of 3% on 2018 and is 4% above the original production guidance of 1.55-million ounces.
Kumba records solid operational performance
Thu, 23 Jan 2020 12:39:00 +0200
Iron-ore miner Kumba Iron Ore delivered a solid operational performance in the fourth quarter and the full-year ended December 31, CEO Themba Mkhwanazi said on Thursday. The Anglo American subsidiary produced 42.4-million tonnes of iron-ore and sold 42.2-million tonnes of iron-ore for the full-year, in line with its guidance of producing 42-million to 43-million tonnes and selling 41.5-million to 42.5-million tonnes respectively.
Anglo American delivers on 2019 production targets
Thu, 23 Jan 2020 12:33:00 +0200
Diversified miner Anglo American delivered on its production targets across the business for the year ended December 31, CE Mark Cutifani said on Thursday with the release of the group’s unaudited production results for the fourth quarter and the full-year. Production was up 4% for the fourth quarter, led by the continued successful ramp-up at the Minas-Rio iron-ore mine, in Brazil.
Wesfarmers defers lithium project investment decision
Thu, 23 Jan 2020 12:13:00 +0200
Australia's Wesfarmers has delayed its final investment decision on the Mt Holland lithium project by a year to the first quarter of 2021, it said on Thursday, as it focuses on cost-cutting amid weakening prices of the metal. The decision follows a review in November of a feasibility study run by Covalent Lithium, a joint venture between Wesfarmers and Sociedad Quimica y Minera de Chile, one of the world's largest producers of lithium products.
Lundin Mining meets guidance at all operations
Thu, 23 Jan 2020 10:08:00 +0200
Canada-headquartered Lundin Mining has achieved its production guidance for all the metals it produces, at all its operations, as the miner prepares for a big jump in production this year. The miner produced 67 131 t of copper in the fourth quarter, taking total production for the year to 235 498 t, which is in its guidance of 227 000 t to 245 000 t. The Candelaria mine, in Chile, produced 39 221 t in the final quarter, which president and CEO Marie Inkster said on Wednesday was achieved during a time of considerable unrest in the country.
Downer wins Meandu mining contract
Thu, 23 Jan 2020 09:36:00 +0200
Mining services provider Downer EDI has been awarded a A$600-million mining and related services contract from Stanwell Corporation at the Meandu coal mine, in Queensland. The contract will run for a period of five years and will extend Downer’s current operations at the mine, which started in 2013 and expires at the end of June this year.
Galaxy's push-back plans take effect
Thu, 23 Jan 2020 09:33:00 +0200
Lithium miner Galaxy Resources has reported a drop in production during the December quarter, as the miner reduced mining rates at its Mt Cattlin operation, in Western Australia, in an effort to conserve mineral resource until market conditions improved. The company will scale back operations by about 60% this year.