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The chief executive of AA, Julian Ogilvie Thompson, said this week that acquisition of Reunion is part of the Anglo snaps up strategy of building AA’s base metals business. Skorpion will form part of a substantial zinc portfolio including Anglo American Corp.’s 200,000 t/y Reunion Gamsberg project Continued on p.290 The future of London-listed Reunion 10.1% Zn, and the study envisages out- Mining plc, a mineral developer spe- put of 150,000 t/y of zinc metal for a Billiton cialising in Africa, has been all but capital cost of US$279 million. decided by a friendly takeover offer Reunion also holds Sanyati, a minor refocus from the Anglo American group. The copper operation in Zimbabwe, and cash offer of £0.88/share, valuing Dunrobin, a small gold producer in Billiton plc seems set to bow out of Reunion at a total of £37.2 million, will Zambia, plus exploration interests in grass-roots exploration, announcing be made through a UK-registered sub- Botswana, Namibia, Gabon, Ghana, this week that it is to close a number of sidiary of Luxembourg-based Minorco Zambia and Zimbabwe. its exploration centres and will dispose SA, the Anglo American group’s off- Reunion intends, specifically as a of properties “which do not meet crite- shore associate. Minorco is scheduled consequence of the Minorco offer, to ria set out by (its) commodity business- to be merged with Anglo American relinquish its participation in the con- es”. As a consequence, it is envisaged Corp. of South Africa at the end of next sortium that is considering taking a that the staff complement involved in month, with the combined Anglo controlling interest in the Mufulira exploration and development will be American plc (AA) moving its domicile copper mine and refinery (MJ reduced from 250 to around 50. to London (MJ, April 2, p.250). February 12, p.95). Mufulira is part of Steve Kesler, Billiton’s executive The objective of the takeover is to the remaining assets of state-owned director responsible for new business consolidate AA’s ownership of the Zambia Consolidated Copper Mines and technology, says that following a Skorpion zinc project in Namibia. Ltd. The Anglo American group comprehensive review of business strat- Reunion earned a 60% interest in already has a major involvement in the egy, it has been concluded that greater Skorpion towards the end of last year privatisation process, through its earli- value return for shareholders can be by completing a feasibility study of the er acquisition of the rights to the achieved and new business developed project (MJ, November 27, 1998, Konkola Deep project and its recent more effectively by focusing on consoli- p.421). Anglo American Corp. retains a memorandum of understanding dation transactions, efficient project 40% interest in the project. Skorpion regarding the Nchanga and Nkana management, application of propri- has proven and probable reserves operations. Progress on the latter is suf- etary technology (such as copper and amounting to 19.5 Mt at a grade of fering delays (MJ, April 9, p.253). nickel bio-leaching) and entry into advanced-stage exploration. This, he says, will ultimately reduce annual pre- tax spending by some US$20 million. The company’s individual commod- ity businesses will continue to take responsibility for resource replacement where this is required, and a small cen- tral team is being retained, which will work closely with independent explo- JOURNAL ration companies, to identify and assess opportunities. As part of this process, London, Billiton has established an exploration April 23, 1999 office in Vancouver, and has in place a Volume 332 number of jv agreements with junior No. 8528 explorers (MJ, March 5, p.165). ■

Exploration drilling at Skorpion. (Photograph courtesy of Reunion Mining plc.)

Mining Week Industry in Action Technology Today Focus and Mining Finance p.289 Reunion agrees p.292 Cracow continuity; p.296 Large order for P&H- Comment p.301 Results from Reynolds, friendly takeover; Billiton to Orezone options BF property; Terex from Cleveland Cliffs; Big p.298 A long haul for base Alcan and Freeport-McRan retrench E&D staff; WWF Intrepid intersects wide underground truck option from metals; Indecent haste. Copper & Gold do not reflect targets European tailings mineralisation; Brancote focuses Sandvik Tamrock; Grindex market optimism; Steady disposal . . . KP chief demands on Galadriel; Diavik feasibility Magnum pump launched; Atlas Mineral Markets performance from Harmony; mindset change; De Beers’ awaits green decision; Sleeper Copco’s drilling innovation; p.300 Base metals rally on PGM move from SouthernEra; market ‘insurance’; American resource; Iran’s mining boost; Crawler trucks from Alltrack; positive sentiment; Gold prices Euro-Nevada drops Golden Cycle Indian tribe awaits court Delta achieves output record; Spectra launches precision unmoved by Swiss decision; deal; Alta files for protection; methane ruling; Brazil’s South African wage bid; Chinese grader system. Russian PGM shipments delayed Silver & Baryte rights issue; Teck bargain mineral properties. coal-energy project on track; once more. debentures deal; Golden Knight Asarco pays for ‘green’ shareholders approve merger transgressions; Pasminco smelter with Repadre; Hargraves’ bid for suspension; Con workers return; DMR now unconditional. Navachab suspended; Meetings. Established 1835 ISSN 0026-5225 MINING WEEK

zinc mine. The failure, a 60 m lateral move- tives to tailings lagoons “but they’re not Anglo American snaps ment of the embankment above a low-shear easy and cost more”. Accidents such as that strength bedding plane 14 m below the sur- at Los Frailes are both predictable and pre- up Reunion Mining face, released more than four million m3 of ventable, she said. Continued from p. 289 tailings-laden water, including heavy met- Responding on behalf of the European in South Africa, the subject of a feasibility als, into the local river system, and threat- Association of Mining Industries study (MJ, March 5, p.158), Minorco’s ened the Doñana national park, one of (Euromines), Corina Hebestreit said it was 50% interest in the 132,000 t/y Lisheen pro- Europe’s most important wild-life havens. untrue to say that “mines are operating in ject in Ireland, currently under construc- The coverage of the event in the interna- an unregulated way”. She also criticised the tion (MJ, February 20, 1998, p.145), along tional media proved to be a major public WWF for oversimplifying the problem, and with Minorco’s 100% interest in the exist- relations disaster for the mining industry said that every country in the EU has ing polymetallic producer Hudson Bay and one from which, in Europe at least, it is detailed information about toxic lagoons Mining & Smelting in Canada. This will still recovering. The mine, operated by the which is readily available. However, a report give AA a potential zinc output of more Swedish-Canadian company Boliden, prepared two years ago by Mining Journal than 500,000 t/y (equivalent to around 7% reopened earlier this month but the clean- Research Services on behalf of the United of current world mine output) when all up, which has already cost US$100 million, Nations, found that few countries possessed these projects are in production, provided is still not complete. a single authority responsible for maintain- the life of the Hudson Bay operations (some The WWF has set out a five-point plan ing records of tailing dams, that data were 90,000 t/y Zn) is extended beyond 2004. which it urges the European Commission to often lacking and that there was a wide Minorco had already acquired control of follow. After drawing up an inventory of variation in the amount and quality of a 50.4% interest in Reunion prior to tailings sites, it says, the EC should develop information held (MJ, May 1, 1998, announcing the offer, through the purchase safer ways of disposing of toxic waste, p.342). of the shares held by Reunion’s directors strengthen legislation on pollution spills (11.7%) and shares held by certain institu- and ensure that existing rules are being tional investors (37.5%), which were added properly put into practice. It is understood . . . underestimating to a 1.2% interest already held. Once these that the EC has already made money avail- the risk transactions have been settled, giving able for a study and is considering updating Minorco a majority interest in Reunion, the its hazardous waste and chemicals legisla- The WWF may have oversimplified the offer will become unconditional. The total tion to include the mining industry problems of mining waste storage to some cost of the acquisition, including offering to The WWF reports that its research has extent, but Ms Madgwick’s contention that cancel Reunion options and warrants, will shown up “significant pollution problems tailings accidents are predictable and pre- be £38.1 million. caused by spillages from toxic waste lagoons ventable is endorsed by many within the The directors of Reunion have received an in Sweden, Spain, Italy and Portugal, and mining industry. Donald East, the chief assessment from their financial advisers, SG from abandoned mines in Britain”, and says executive of Knight Piésold, one of the min- Securities, that the offer is “fair and reason- that there have been at least five “major ing industry’s leading geotechnical consul- able” and have advised shareholders to pollution events”in the past five years. It tancies, had some strong words to say on the accept. The chairman of Reunion, Andrew calculates that in Spain alone, there are subject in a paper entitled ‘Tailing dam fail- Woollett, described the offer as representing more than 650 storage lagoons, and around ures – why do they continue to occur?’ deliv- for shareholders “the best assured value” 160 recorded cases of water pollution. ered at the SME annual meeting in Denver, and is one “which the board is able unani- Speaking at a news conference this week, Colorado, last month. mously to recommend”. The offer repre- Jane Madgwick, the WWF’s expert on The number of tailing dam failures are sents a 5% premium over the closing price freshwater pollution, said that heavy met- relatively few but they have a dispropor- of Reunion’s shares this Monday, the day als such as arsenic pose a serious hazard to tionately negative impact on the industry’s before the offer was announced, and is 68% people, wildlife and the environment, and image and Mr East argues that the fact that higher than the price immediately prior to are “lethal even at low doses”. Ms failures continue to this day, in both devel- the announcement made by Reunion on Madgwick claims that there are alterna- oped and developing countries, indicates a February 9 that it was in discussions degree of risk-taking approaching unac- regarding the financing of Skorpion that LEADING INDICATORS ceptable levels. Experience has shown, he might lead to an offer for the whole compa- says, that the technical and managerial ny (MJ February 12, p.95). ■ Change High- Year’s challenge of responsible mine waste man- on week Low Max/Min Share Indices Apr 21 (%) (%) agement is not always fully appreciated, FT Ordinary 3,873 –3.4 88 4,008-2,913 US Dow Jones 10,581 1.6 100 10,581-7,742 pointing out that the design requirements Mine waste warning . . . FT Gold Mines 939 7.5 37 1,352-702 for tailings facilities are, in many cases, Australian All Mining 602 7.7 48 692-520 South African Gold n/a n/a n/a 2,874-780 more demanding than those of conventional Toronto Met/Min 3,515 4.6 52 4,356-2,596 The World Wildlife Fund (WWF) set its Nikkei Dow 16,495 –1.6 93 16,765-13,071 water dams – the seepage of fluids which sights on the European mining industry this Hang Seng 12,544 6.0 100 12,544-6,859 contain dissolved metals may pose a greater James Capel Indices Apr 21 week, warning that toxic waste from metal (100 on 1/1/89 except*) threat than the mere loss of water. mining poses a major threat to the environ- Global Base Metal 135 4.4 86 141-93 Management complacency has been Global Diversified Mining 141 6.8 94 144-94 ment and human health across Europe. Global Gold Ex S Africa 72 8.7 35 102-56 found to be a key contributory factor to Global Gold 64 7.9 35 89-51 Speaking in Brussels this Monday, the envi- Global Mining 111 6.5 78 121-78 some recent failures. Mr East contends that ronmental group said that existing laws can Smaller Mining Companies 48 8.6 38 61-40 in his experience it is not common for opera- †North American Base Metal 178 1.9 100 178-122 do little to solve the problem and it is calling North American Gold 81 10.5 31 118-64 tors to invest in a ‘tailings operations manu- Latin American Mining* 179 8.7 53 233-120 on the European Commission to take Latin American (Ex CVRD)* 137 12.5 58 170-90 al’ which clearly defines operational proce- action, initially by drawing up an inventory †Other Metals/Minerals 126 8.1 84 133-91 dures, operating limits, and the action to be †Global Coal Mining 174 9.8 100 174-116 of European tailings ponds. *100 on 1.1.90 taken in the event of upset conditions occur- The WWF, and the community at large, †Rebased by Mining Journal ring. Training (in waste management) must Commodity Prices Apr 21 were alerted to the threat that mine waste Gold (London) $283.95 0.3 12 $315-279.65 be taken as seriously and regularly as the Copper (LME) $1,493.50 5.0 26 $1,878.50-1,361.00 can pose almost exactly one year ago when a Aluminium (U.S. prod.) 61.50c 0.0 43 70-55 safety training now mandatory at most tailings dam burst at Los Frailes, a Spanish Brent Blend (dated) $16.06 9.1 99 $16.10-9.44 mines, he argues.

290 Mining Journal, London, April 23, 1999 MINING WEEK

The art and science of geotechnical engi- Nevertheless, Mr Oppenheimer believes in order to mine the coal”. The NMA goes neering is well capable of designing struc- that the events of the past year have shown on: “It is unreasonable to suppose that tures that minimise the risk of failure and again the importance of single-channel mar- Congress intended to convey an interest in a Mr East advocates the introduction of a for- keting of diamonds. However, he does warn substance that went unnamed in the grant, mal system of design reviews prior to con- those producers outside the CSO that, if the but nonetheless (it) knew existed in the coal struction. Once in use, inspection of tailing system is to work well, it has to be kept in and would be destroyed in the exploitation facilities should be part of the daily routine constant repair – in good times and bad. Mr of the coal reservation”. of operational staff, and there should be reg- Oppenheimer says that “insurance cannot Amoco, however, in its suit with the Utes, ular internal audits, at least on an annual work if premiums are paid only when danger contends that the tribe owns the coal but basis, and even quarterly if necessary. threatens, or if the burden of protecting the not the gas, since coalbed methane is “a These, says Mr East, should be conducted many is carried only by the few”. ■ physically separate item that just happens by management and a competent geotech- to reside with the coal bed”. The NMA nical engineer. In some countries, statutory believes that this interpretation “is so enor- requirements are now being implemented Coal conundrum mously impractical that it would frustrate for tailings facilities to be inspected annual- Congress’ purpose in reserving the coal for ly and signed off by a competent engineer. The Coal Lands Acts passed by the US future development”. The postponement of Mr East says that this obliges operators to Congress in 1909 and 1910 opened federal mining until surface patentees or their suc- go some way to ensuring that their tailings lands to agricultural settlement and gave cessors drain the coal estate of its methane facilities meet good design practices. the right to exploit most minerals but constituents frustrates the original purpose He concludes that tailing dam failures reserved all coal for future development, as of the coal reservation, the NMA argues, probably can be prevented but only if there coal was in short supply at the time. and “jeopardises the federal coal lessee’s is a change in the mindset of mining profes- Subsequently, in 1938, the federal govern- adherence to conditions imposed under the sionals - at all levels in an organisation. It is ment conveyed 80,000 ha of land along Mineral Leasing Act”. The Supreme Court ultimately about management philosophy Colorado’s La Plata River to the Ute Indian is expected to reach a decision by the end of and the management of risk. Executives tribe, including the coal beneath the sur- June. ■ must demand, rather than just assume, face. A problem has now arisen concerning sound risk-management strategies from all what precisely was defined as coal in the levels of their organisations. ■ Coal Lands Acts – the solid substance alone, Brazilian bargains or also the methane contained within the coal seams. Although last year’s devaluation may have De Beers insurance The oil company Amoco (now part of BP caused havoc for the Brazilian economy, Mr Amoco plc) began purchasing the rights to Miguel Navarrete Fernandez Jr, the direc- Last year was a difficult one for the dia- drill for gas on the Ute lands in the 1970s tor general of the National Department for mond industry, with De Beers’ Central but in 1991 the Utes sued the company, Mineral Production (DNPM), part of Selling Organisation (CSO) reducing its claiming that the tribe’s ownership of the Brazil’s Ministry of Mines and Energy, sales by 28% to an 11-year low of US$3.35 coal deposits included the gas contained believes that it has created opportunities for billion. This shortfall was reflected by a therein. In 1992, a district court ruled foreign investors. Speaking recently, in 40% reduction in De Beers own earnings. against the Utes, finding that “common Toronto, Mr Navarrete said that while the At the same time, the company’s diamond sense dictates that in 1909 and 1910 real has devalued by over 70%, the weak- stocks increased by US$377 million to Congress intended ‘coal’ to mean the solid ness of the currency has made Brazil’s min- US$4.82 billion. For one of the few times in rock substance”. The appeals court in erals sector much more competitive in terms its history, De Beers was forced to cut its Denver reversed this ruling, hence Amoco of local costs. dividend, by 22% in terms of the US dollar turned to the Supreme Court. The outcome This improved competitiveness applies to (MJ, March 12, p.183). of Amoco Production Co. v. Southern Ute mineral exploration as well as investments However, the diamond market appears to Indian Tribe is keenly awaited by numerous in more advanced projects, he said. In addi- have bottomed. Following the CSO’s third energy companies and thousands of US tion, Mr Navarrete said that the devalua- diamond sale of the year (the March sight), landowners, as it could determine who owns tion has made existing Brazilian producers demand for uncut stones is reported to be rights to minerals worth billions of dollars particularly attractive for takeover by for- running ahead of the year-ago levels, with beneath an estimated 16 Mha of land in the eign companies. strong US and European demand offsetting western US. The DNPM is meeting a number of chal- a fragile Asian market. Meanwhile, the pri- Meanwhile, the US hard-rock mining lenges posed by the country’s new mineral mary supply of diamonds has been restrict- industry has rallied to the support of the policy and its economic problems. The main ed by the ongoing political violence in Indians. In a brief filed recently to the one that the agency is facing is the massive Angola and the Democratic Republic of Supreme Court by the National Mining backlog of exploration permits, which the Congo. But while industry sentiment is Industry (NMA), the principal mouthpiece DNPM is now addressing. Last year alone improving, the CSO is to maintain a tight of the US mining sector, the NMA the agency issued some 12,000 exploration rein on the supplies that it releases. At a contends that when Congress passed the permits covering 13.3 Mha, a 200% increase meeting in London this week, De Beers’ acts reserving coal it did not intend to part over those issued in 1997 and 300% higher chairman Nicky Oppenheimer confirmed with the coalbed methane and other gases than the annual average achieved between that the company remains cautious, and trapped in the coal. In its brief, the NMA 1986 and 1995. would examine each of this year’s ten sights spells out the biochemical and geochemical The DNPM is also seeking to ensure that on its merits. coalification process that forms coal, includ- those holders of permits that have already In De Beers’ recently released annual ing the gases that are molecularly bound in been issued explore their holdings or give up report for the year to end-December, Mr the coal. their rights. As a result of new legislation Oppenheimer notes that De Beers’ policy of It has also provided an historical back- the DNPM has been able to force the relin- market stabilisation carries a short-term ground of mine safety which it says demon- quishment of some 52.8 Mha and to make cost to the company – and to those core pro- strates that Congress was fully aware at the them available to companies that do have ducers which share the burden of securing turn of the century that coal “is comprised the financial means and will to conduct the diamond market’s long-term future. of dangerous gases that require ventilation exploration. ■

Mining Journal, London, April 23, 1999 291 INDUSTRY IN ACTION

Ron Little, says that the company company intends to continue with the shares in Mogul. Augusta may earn a intends to undertake drilling exploration programme at Zapote in 50% interest in Ocampo by a Exploration activities immediately. A rotary air the near future. combination of exploration blast programme at Bouboulou will expenditure and completing a be followed by reverse circulation Mt Kakoulima bankable feasibility study by July 31, Cracow results definition driling. Similar 2000. Augusta is the operator of the programmes will be undertaken at agreement Ocampo exploration programme. continue to impress Orezone’s other Burkina Faso Semafo, and partner Afcan Mining Impressive results from Sedimentary properties, at Kerboulé and Corp., have agreed to form a joint- Galadriel shines Holdings NL’s Cracow gold property Intiédougou. venture with Rio Tinto Mining and in southern Queensland (MJ, March Exploration Ltd to explore and through for Brancote 26, p.211) continue to be received by Tan Range’s Itetemia develop the Mt Kakoulima Brancote Holdings plc has received the company. The core-drilling polymetallic property in Guinea. The encouraging assay results from programme is continuing, and assays RAB results concession is located over a sub- drilling being conducted at the from a further three drill-holes have A rotary air blast (RAB) drilling horizontal layered mafic-ultramafic Galadriel gold property in the Esquel been received, with the following programme at Tan Range intrusive body, including dunites and district of Argentina’s Chubut results: Exploration Corp.’s Itetemia gold gabbbros. Mineralisation is Province. The company had intended property in Tanzania has confirmed characterised by a mixture of to concentrate its efforts on the Hole Interval Au gold mineralisation coincident with a pyrrhotite, chalcopyrite, pentlandite recently-acquired La Joya del Sol (m) (g/t) geophysical anomaly. The anomaly is and pyrite, with accessory bornite property (MJ January 29, p.58), but KDD-22 209-215 4.2 interpreted by the company’s and magnetite. Semafo reports that results from Galadriel have convinced KDD-23 273-281 16.1 geologists as representing the its exploration programme to date the company to put it at the top of the KDD-24 415-421 169.3 continuation of the previously- indicates the presence of a thin, priority list. Galadriel has a 450 m- identified Golden Horseshoe Reef on spatially-limited slab of massive long visible strike-length, and to date The results are from drilling the property, across a fault. The RAB sulphides at a relatively high level in drilling has covered 150 m. Brancote completed on the Klondyke low- results indicate gold mineralisation of the complex. reports that all but two of the 11 sulphidation epithermal vein system, up to 2 g/t Au, in a quartz-sulphide The property is held by the Semafo diamond drill-holes, and one reverse- which comprises a gold-mineralised mineralised vein with a true thickness subsidiary, Les Mineraux SGV SA, circulation drill-hole have intersected quartz breccia and associated of between 6 m and 18 m. The vein and Afcan holds a 50% interest. Rio the Galadriel quartz-vein structure, stockwork zone. The company reports lies along a geological contact Tinto will conduct an exploration at varying depths, between 15 m and that several samples contain visible between intermediate and felsic programme over the next six months, 65 m. Better results are as follows: gold mineralisation. volcanic rocks, and is similar to the and following a successful conclusion, stratigraphy of the Golden Horseshoe will be granted the option to acquire a Hole Interval Au RC depth record Reef. 70% interest in the property by (m) (g/t) Tan Range estimates the strike- bringing it to a point that allows the GD1 11.4-22 2.51 claimed length of the Golden Horseshoe Reef, start of a a full feasibility study. If GD2 6.0-20.7 13.5 The Australian record for the deepest together with the extension, at Mineraux does not participate in the GD3 11.8-30 9.88 reverse-circulation (RC) drill-hole is around 1,500 m, and intends to use feasibility study, Rio Tinto may GR8 17-25 28.9 being claimed by a team from diamond core-drilling to investigate conduct the study at its own expense, DrillCorp Western Deephole, from the extension further. Gold values in thereby earning a further 10% Average width of intersection of Perth, Western Australia (WA). The soil occur only directly above the interest. It may then acquire the the mineralised structure is around exploration drill-hole was completed gold-mineralised vein, and the balance of Mineraux’s interest if 10 m, and drilling is presently to 704 m depth at Homestake company reports that further along Mineraux does not participate in the continuing, with completion due by Australia’s Plutonic gold mine in the strike, silicic alteration and gold development and production the end of August. Surface mapping northern goldfields of WA. The values increase. programmes, in which case Mineraux and sample collection programmes vertical hole was collared at 87o, and will take a 3% net smelter return are also continuing. ended at 86.1o, after passing through Wide mineralisation royalty. alternating mafic and ultramafic at Zapote rocks throughout its length. Augusta’s Ocampo The samples recovered at the end Alberta-listed Intrepid Minerals Development of the hole were dry, and the operation Corp. reports that its drilling drill results required two bit changes, whilst programme at the Zapote silver Vancouver-based Augusta Resources maintaining a drilling rate of more property in El Salvador has returned Corp. has received assay results from Diavik awaits than 11 m/hr. The team used a evidence of wide zones of silver drilling in progress at its 50%- Schramm T5E rig, a LeRoi TS24 1050 mineralisation. The programme, optioned Ocampo gold-silver environmental x 500 compressor and a LeRoi 1200 x designed to test a wide stockwork property in Chihuahua, Mexico. The decision 500 auxiliary compressor, combined structure at the Cerro Colorado III programme is designed to test the with a Hurricane D82-1200 Booster prospect, has thus far yielded the continuity of two of the four gold- Aber Resources Ltd, manager of the Compressor. following better results: silver mineralised zones previously Diavik diamond joint-venture in identified at Ocampo. The zones, Canada, expects to be able to Boliden farms out Hole Angle Interval Ag named Plaza de Gallos and Picacho, complete its feasibility study once the (¥) (m) (g/t) were intersected by a number of drill- Canadian Minister of Environment Bouboulou RC-CC3-1 -60 0-55 305 holes, with the following better makes his decision on the Montreal-listed Orezone Resources incl. 39-50 498 results: development. The decision is Inc., currently exploring for gold in RC-CC3-2 90 0-31.5 268 expected around the middle of the Burkina Faso, has optioned Boliden RC-CC3-3 -60 0-45.5 449 Hole Interval Au Ag year, and the company foresees Ltd’s Bouboulou gold property in the (m) (g/t) (g/t) greater clarity regarding the West African country. Orezone The structure was tested over a OC-60 42.67-54.86 1.73 104 permitting, regulatory and fiscal reports that Boliden has identified a 250 m strike-length, and Intrepid’s OC-64 83.21-107.59 1.41 35 regimes for the project after it has number of drill-targets on the geologists interpret the results as OC-66 15.20-39.62 1.04 126 been taken. The completion date for property, which is located near Yako, indicating that the main stockwork OC-68 96.01-112.78 1.41 124 the feasibility study was originally about 100 km northwest of zone is a breccia pipe, the apex of late last year, but a combination of Ouagadougou. which is exposed at Cerro Colorado A total of 70 reverse-circulation new information and cost revision was Orezone may earn a 60% interest III. The mineralised breccia is drill-holes have been completed at given as the reason for postponing the in the property by spending C$2.1 enclosed by volcanic and sedimentary Ocampo so far, and Augusta has completion until the middle of this million on the property over the next rocks, intruded by a granodiorite and designed a further phase of drilling, year (MJ, November 27, 1998, three years. Once Orezone has earned dacite porphyry. Mineralisation intended to extend and confirm p.428). The Diavik environmental its 60%, Boliden may buy back a within the breccia consists of pyrite, mineralisation at the property. assessment submission was presented 20% interest for C$2.2 million. The acanthite, galena and sphalerite, with Augusta acquired its 50% option to the Canadian Government last majority owner would be the operator minor chalcopyrite and chalcocite, from Mogul Mining NL late last year, October (MJ, October 2, 1998, of the project. Orezone’s president, containing silver-lead-zinc-gold. The in return for buying 10.7 million p.249).

292 Mining Journal, London, April 23, 1999 INDUSTRY IN ACTION

The Diavik property is now include the review of two separate if upheld, would effectively annul the The remainder is in the inferred estimated to contain a resource of mine scenarios, one producing only sale of a stake in Sayansk to the category. 37.4 Mt at a grade of 3.6 ct/t, for a concentrates, and the other utilising a aluminium producer Siberian IAMGOLD reports that the total of around 133 Mct of diamonds. smelter on site, producing matte. Aluminium last year. Before the sale, AngloGold evaluation team has The resource contains an estimated Platexco anticipates the completion TWG held a 38% interest in Sayansk, revised its resource estimate for the mineable reserve of 26 Mt at a grade of the expanded prefeasibility study but the share deal cut TWG’s holding Yatela deposit, calculating that the of 3.9 ct/t, containing 102 Mct. The within the next two months. to 15% of the 330,000 t/y plant. After zone contains 19.7 Mt averaging 3 g/t production target is currently set for the deal, Siberian Aluminium gained Au, at a 1g/t Au cut-off. the June quarter of 2000. The Diavik Billiton talks to effective control of Sayansk. joint venture is held 60% by Rio The Moscow court ruled that the Sleeper resource Tinto plc, and 40% by Aber. Venezuelan share issue and sale was illegal, says estimate Government Alexander Merten, TWG’s lawyer, Winnaarshoek although a spokesman for Siberian X-Cal Resources Ltd, currently Representatives of Billiton plc have Aluminium says that the ruling is at carrying out a feasibility study on the project tops 11 Moz met with the Venezuelan Government odds with a number of rulings already Sleeper gold-silver mine in Nevada, Platexco Inc.’s Winnaarshoek over the privatisation of the South passed down by other arbitration has received an inferred resource platinum group metals (PGM) American country’s aluminium courts in Russia. estimate for the property from Sierra project in South Africa contains over assets. The state-run mining Mining and Engineering. The deposit 11 Moz of PGM, according to Micon company, CVG, is once more trying to Sadiola reserve is estimated to contain around 418 International, its independent sell off the aluminium smelters and Mt at a grade of 0.41 g/t Au and 1.78 consultant. Micon is directing a pre- bauxite mines, after failing three update g/t Ag, using a 0 g/t Au cut-off. feasibility study of the project, which times last year (MJ, April 2, p.238). IAMGOLD Corp. reports that the Further resources exist in heap- leach also contains an additional 4.1 Moz A Billiton spokesman was quoted by reserves and resources at the Sadiola and tailings material. X-Cal reports PGM plus gold in inferred resources. Reuters as saying that the meeting gold mine in Mali have been updated that structural analysis of the geology The proven and probable reserves at was held in order “to understand by the mineral resource evaluation of the mine has indicated that a shear Winnaarshoek total 62.5 Mt at a better (the government’s) position department of AngloGold, zone in the northeast area of the site is grade of 5.54 gt PGM plus gold. The and intention towards CVG”. IAMGOLD’s partner at Sadiola. a strong drilling target. PGM are platinum, palladium and Both companies hold a 38% interest. rhodium. Inferred resources contain TWG wins court Proven and probable reserves at SASE No.1 for 18.9 Mt at a grade of 6.83 g/t PGM Sadiola total 32.6 Mt averaging 3.4 plus gold. The mineralisation is ruling g/t Au, at a cut-off grade of 1.1 g/t Meekatharra contained within the Merensky and Trans-World Group, currently in Au, assuming a gold price of The incorporation of the South UG-2 reefs, and Platexco notes that dispute with the Government of US$300/oz. The reserves comprise Australian Steel and Energy project the in situ grade of the Merensky reef Kazakhstan over ferro alloy exports oxide and sulphidic saprolitic ore. The (SASE) has meant that Meekatharra is comparable to operating mines in (MJ, April 9, p.259), has won a ruling resource base at Sadiola, as at the end Minerals Ltd, a 47.5% partner, is South Africa, whilst that of the UG-2 in a separate court case involving the of 1998, totalled 106.4 Mt at a grade making the initiative its first priority. reef is higher than average. Sayansk aluminium plant, Russia’s of 2.4 g/t Au, of which 44.6 Mt is The other partners in SASE are The company has decided to third largest aluminium smelter. The within the measured and indicated Ausmelt, with 47.5%, and Krakatau expand the prefeasibility study to ruling by a Moscow arbitration court, categories, or is in surface stockpiles. Steel of Indonesia, with 5%.As a

Mining Journal, London, April 23, 1999 293 INDUSTRY IN ACTION result of the incorporation of SASE, diamonds was valued at US$85/ct in the only primary vanadium producer company’s mines produced 110,806 oz the South Australian Government has 1997. in Australia. of gold in the March 1999 quarter, an given SASE iron ore exploration VA is owned by Precious Metals increase of 14% compared with the licences, which Meekatharra reports Australia Ltd (49%), and Xstrata AG previous record. The rise was were explored by government Iranian development (51%), formerly Südelektra Holding attributed by Terry Burgess, Delta’s geologists to the tune of over A$2 Ehya Sanaye Khorasan Co. (ESK) of AG, part of the Swiss-based Glencore managing director and chief million. Mashad has retained IMC Mackay International group. executive, to a number of factors, A demonstration plant, to be built and Schnellman to supply engineering including the first production from at Whyalla, will be run for around six consultancy services to the Iranian Elkem to upgrade the Golden Feather mine(MJ, months as part of the project’s final company for the development of the December 25, 1998, p.507), and feasibility study. Taknar copper project in Iran. ESK plant strong output from Delta’s partly- holds the rights to land in the Taknar The Norwegian metals producer owned mines at Granny Smith (40%) SouthernEra to region of Khorasan, which has a Elkem ASA intends to install new and Kanowna Bell (50%). Mr history of mining copper and other technology at its Lista aluminium Burgess particularly congratulated complete Camafuca metals dating back to ancient times. plant in order to increase efficiency Delta operations for overcoming the purchase A copper mine at Taknar ceased and reduce pollution. The conversions effects of Cyclone Vance, which operation in 1979, but IMC reports to existing Soderberg equipment will recently affected a number of gold Toronto-listed diamond producer that the area is undergoing an be fitted in two potrooms, and should operations in Western Australia. SouthernEra Resources Ltd reports exploration revival. be completed by 2003, at a cost of that its board of directors has According to IMC, modifications SK260 million (US$31.3 million). approved the final payment to to the existing mining legislation are Elkem’s chief executive, Ole Enger, DRC peace accord complete the acquisition of a 51% being considered, which would make says that the company will diversify The Presidents of Uganda and the interest in the Camafuca kimberlite foreign mining investment more its business in order to offset the effect Democratic Republic of the Congo property in Angola. The payment of attractive, leading to an upsurge in of low prices for its products, signed a peace agreement in Libya on US$6.5 million will be made to the development by Iranian companies. manganese, chrome and ferrosilicon. April 18. Laurent Kabila and Yoweri Sphere Trading Group, a group of The company expects prices to Museveni established the accord, South African investors, and will be Windimurra set for remain low for some time. which also creates a ceasefire, in order made 50% in cash and 50% in shares to encourage the government of the in SouthernEra. October output DRC to take part in a national SouthernEra expects to complete a The operator of the Windimurra dialogue with all parties to bring prefeasibility study on the property vanadium project in Western Production about a lasting peace in the war-torn by the end of the year, and reports Australia, Vanadium Australia Pty country. In addition, the agreement that the processing of a 15,000 t bulk- Ltd (VA), expects the development of provides for the withdrawal of sample will begin soon. The property the property to be completed, and Delta’s new output “foreign troops”, and the deployment has been modelled and reviewed by production to commence, by October of peace-keeping forces. MRDI, and a resource estimate of 8.9 28 this year. Roderick Smith, VA’s record Rebel forces within the DRC claim Mct to a depth of 80 m has been chairman, says that the 16 Mlb/y Delta Gold NL has set another to have made major advances in their calculated. A parcel of 1,400 ct of vanadium pentoxide facility will be quarterly production record, as the attempts to gain control of the

294 Mining Journal, London, April 23, 1999 INDUSTRY IN ACTION diamond fields around Mbuji Mayi. and Shemu- Shuozhou railways have p.398), and its cessation is seen by ■ 30 June-1 July, 1st Australium The towns of Lubefu and Kakuyu are been completed, and the next phase is Miramar management as being in its Magnesium Conference, Sydney, reported to have been captured by the Shuozhou-Huanghua railway. interest, as the care and maintenance Australia. AJM Conferences, GPO rebels. programme was costing it around Box2728, Sydney NSW 2001, Separately, Mitsubishi Corp. Asarco counts C$600,000/month, and closure would Australia. Tel: (+61 2) 9290 1133. reports that it may start legal cost C$15-20 million. Fax: 9290 3844. E-mail proceedings against the DRC’s environmental cost The mine will restart operations [email protected] Website: mining house Gécamines, if the US metals producer Asarco Inc. has using free-milling ore, at a rate of 600 www.ibcoz.com.au African company does not rescind its agreed to pay US$5.5 million in t/d, and a roasting operation to ■ 3-5 August, Ground Control in decision to cancel the cobalt contract penalties to the US Environmental process refractory ore is scheduled to Mining, Morgantown, US. Dr. S.S. with Mitsubishi. Gécamines Protection Agency, as settlement of begin towards the end of the year. The Peng, Dept. of Mining Engineering, chairman Billy Rautenbach earlier most of the company’s outstanding use of an autoclave for this purpose College of Engineering and Mineral this month said that all previously- environmental issues relating to its will also allow the company to Resources, West Virginia University, agreed cobalt and copper contracts operations. The company also agreed reprocess arsenic calcines and sludges PO Box 6070, Morgantown, WV were cancelled, and that London- to spend US$2.2 million on left over from previous roaster 26506-6070, US. Tel: (+1 304) 293 based metals trader Metals Resources supplemental environmental projects operations. 7680. Fax: 293 5708. E-mail: Group is now the sole agent (MJ, at its Corpus Christi Encycle/Texas [email protected] April 9, p.266). operation, its El Paso copper smelter ■ 17-20 August, 8th Brazilian Mining and the company’s Tennessee zinc Navachab strike Congress and Exhibition, Exposibram NUM sets out wage mining operations. The agreement Representatives of the Mineworkers 99, Belo Horizonte, Brazil. Instituto attributed no accusation of Union of Namibia and management Brasileiro de Mineração, SCS, Quadra stall wrongdoing, according to the at AngloGold’s 70%-owned o1, Bloco 1, Ed. Central, Salas South Africa’s National Union of company, and in that respect is Navachab gold mine are in 1202/1207, 12o andar, CEP 70304-900 Mineworkers (NUM) has tabled a reminiscent of Asarco’s agreement to negotiations to resolve a strike at the Brasilia, DF, Brazil. Tel: (+55 61) 226 25% increase in wages as its opening pay US$6.4 million early last year for open-pit mine, which started this 9367. Fax: 226 9580. Email: gambit in the upcoming labour similar reasons, and its commitment week. The workers are protesting at [email protected] contract negotiations. A two-year at that time to US$61.5 million in what they perceive to be unhealthy ■ 22-26 August, 38th Annual agreement, settled in July 1997, capital projects, principally to resolve working conditions, encountered Conference of Metallurgists – Gateway expires on July 1 this year, and the disputed environmental compliance during relining of the mill. Mine to the 21st Century. Quebec, Canada. union, in addition to the wage issues at its Ray copper mine near management says that the conditions Inquiries to: Mining & Metallurgy demand, is also looking for Kearney, Arizona (MJ, January 30, are within acceptable limits, and the Dept. Laval University, Sainte-Foy, improvements in job security and 1998, p.35). work has been routinely done since Canada G1K 7P4. Fax: +1 418 656 housing. NUM general secretary The company is able to pay the the mine opened, nine years ago. The 5343 (att. Daniel Hodouin). Email: Gwede Mantashe says that the charge and the cost of the mine, which produced 74,000 oz of [email protected] demands are “quite reasonable”, but improvements out of its existing gold in 1997, is currently at a ■ 24-27 August, Minecon’99, 2nd warns that the union will not sign environmental cash reserves. standstill. International Exhibition for the another productivity-linked pay deal. Construction & Surface mining The two-year deal was a departure Peak gold mine Industries, Alpha Olifantsfontein from the one-year agreements which Quarry, Midrand, South Africa. were the norm until 1997, and was for sale Meetings Exhibition Management Services, PO seen as giving more job security, and Rio Tinto has decided to sell its Peak Box 650302, Benmore 2010, South long-term stability. However, the gold mine, in New South Wales. The Africa. Tel: (+27 11) 783 7250. Fax: falling gold price in the interim has company has invited expressions of The following is a selection of recently 783 7269. led to wide-ranging job losses interest in the mine from the industry, announced meetings and conferences ■ 29-31 August, ’99 International throughout the gold industry. and stockbroker Hartley Poynton has that may be of interest to Mining Symposium on Mining Science & Harmony Gold Co.’s chief executive, been appointed to advise Rio Tinto Journal readers. A fuller listing may Technology (ISMST), Beijing, China. Bernard Swanepoel, says that the on the sale. The mine produced be obtained by visiting the Mining Prof. Peng Suping, China University NUM has adopted “a fairly 111,700 oz of gold last year. Journal website at www.mining- of Mining & Technology, D11 reasonable stance”, since the union journal.com Xueyuan Road, Haidian District, usually started with 40% increase ■ 10-12 May, Health and Safety Expo Beijing 100083, China. Tel (+86 10) demand. Mr Swanepoel does not Cockle Creek leak ’99, Birmingham, UK. Data House, 6233 1288. Fax: 6231 8122 think that the negotiations will be too A leakage of zinc from a refinery Curriers Close, Tile Hill, Coventry, ■ 6-8 September, CEM ’99, tough, in the light of recent job losses. column at Pasminco’s Cockle Creek UK. International Conference on Emissions zinc smelter in Tasmania has caused ■ 11-14 May, ’99 Randol Gold and Monitoring, Warwick, UK. CEM ‘99 Shenhua project the column to be temporarily closed, Silver Forum, Denver, US. Randol Conference Office, Source Testing according to the company. Pasminco International, 21578 Mountsfield Association, 101 Bancroft, Hitchin, progresses expects that the refined metal output Drive, Golden, CO 80401, US. Tel: Hertfordshire SG5 1NB. Tel: (+44 According to China’s Xinhua news from the facility will be reduced to (+1 303) 526 1626. Fax: (+1 303) 526 1462) 457 535 Fax: 457 157. Email: agency, the Shenhua project, China’s about 60% of normal, and repairs to 1650. E-mail: [email protected] first major energy project to bring the column are expected to take in the [email protected] together coal mines, railways, a power order of six weeks to complete. ■ 20-21 May, China and Asia station and a port, is two-thirds The company estimates that lost Aluminium Markets ’99, Beijing, complete. The completion of Shenhua production will total around 5,000- China. Ms Jolene, Event Co- Correction is expected by 2005. The Shenfu 6,000 t, which it forecasts will be ordinator, 80 Marine Parade Rd, 13- coalfield is acting as the source for the recovered in the months after the 02 Parkway Parade, Singapore project, and it now has a production column is recommissioned. 449269. Tel: (+ 65 345) 7322 Fax: In an article published in the March capacity of 16.8 Mt, and confirmed 5928. E-mail: [email protected] 12 issue of Mining Journal (p.170) reserves of around 223,600 Mt of low- ■ 24-25 May, Safety in Mining concerning the Gandhamardan ash, low-sulphur, low-phosphorus, Con strike over ’99,Townsville, Queensland, bauxite project in India and the joint- medium-high energy-value coal. The The ten-month strike at Miramar Australia. AJM Conferences, GPO venture agreement between field is located in the northern part of mining Corp.’s Con gold mine in Box 2728, Sydney, Australia. Tel: Continental Resources Ltd of Shanxi Province, and the southern Yellowknife is over. The local branch (+61 2) 9290 1133 Fax: 9290 3844. E- Montreal and Orissa Mining Corp., it part of the Inner Mongolia of the United Steelworkers of America mail: [email protected] was stated that Continental had a Autonomous Region. union, representing the employees, ■ 20-23 June, 23rd International 51% interest in the jv and OMC The Shenhua Project will utilise a has accepted a collective agreement, Precious Metals Conference, 49%. This is incorrect. Mr Prasanta 3,841 km2 area, with confirmed which, the company reports, Acapulco, Mexico. International Sarkar, a director of both companies, reserves of 35,400 Mt. Annual effectively continues the terms of the Precious Metals Institute, 4400 is anxious to point out that production capacity of 60 Mt/y is to contract that expired in April last Bayou Boulevard – Suite 18, Continental and OMC each have a be built, with related power year. The action was taken after talks Pensacola, Florida 32503-1908, US. 50% interest. We apologise for the generation and transport facilities to to increase productivity and cut costs Tel: (+1 850) 476 1156. Fax: (+1 850) error and for any embarrassment be constructed. The Baotou-Shemu broke down (MJ, May 22, 1998, 476 1548. E-mail [email protected] which may have been caused.

Mining Journal, London, April 23, 1999 295 TECHNOLOGY TODAY

The rig’s main application is Alltrack Industries, PO Box 65507, drilling holes in the 105-165 mm Portland, OR 97266, US. Tel: (+1 diameter range. It can be equipped 503) 656 6777. Fax: 656 2244. E-mail: Iron ore truck with Atlas Copco’s COP 44, COP 54 [email protected] or COP 64 hammers, while an on- board XRV9 screw compressor provides 405 l/sec at a working GPS control contract pressure of 25 bar for hammer operation and hole flushing. Power is systems from provided by a 317 kW Caterpillar P&H MinePro Services, in truck. Supra features suspension on 3196 ATAAC diesel engine. Spectra conjunction with Terex Mining/Unit all wheels and automatic Atlas Copco notes that the rig’s Rig, have been awarded a contract to transmission, and offers a quantum track oscillation and low centre of Precision deliver a fleet of 64 Unit Rig 220 t leap in driving comfort for gravity make for rapid travel and fast capacity MT- 4400 haul trucks over a underground hauling.” set-up. Maximum tramming speed is Spectra Precision’s new BladePro 3D five-year period. The trucks will be Sandvik Tamrock’s figures for the 3.4 km/h. Drilling flexibility (+/-30o is an advanced grader control system. supplied to six iron ore mines Supra 0012H show a haulage sideways and +30o forwards), Its 3-D capability allows motor operated by US producer, Cleveland productivity of 600 t/h over a haulage together with the ability to swing the grader operators to grade complex Cliffs: North Shore Mining Co., LTV distance of 1,500 m, about 800 t/h boom between 20o left and 25o right of designs such as vertical curves, Steel Mining Co. and Hibbing over 1,000 m and just over 1,000 t/h centre, allow the rig to handle transitions, super-elevated curves and Taconite Co. (all located in over 500 m demanding set-up conditions. The complex site designs without stakes, Minnesota); the Empire Iron Mining Sandvik Tamrock, PO Box 100, ROC L8 uses 6 m-long rods, and is stringlines or layout. BladePro 3D partnership and Tilden Mining Co. FIN 33311 Tampere, Finland. Tel: equipped with an eight-rod magazine; provides the operator with a complete (both located on Michigan’s upper (+358 205) 44 121. Fax: 44 4596 the rods can be selected randomly in system with onboard design for full peninsula); and the Wabush mine (in order to even out wear. automatic control of slope and Newfoundland). The operator’s cab is constructed elevation. P&H MinePro is the distributor for Major new to ROPS/FOPS standard, and is Also new is Spectra Precision’s Terex/Unit Rig trucks in the US iron fitted with a six-way adjustable seat. GPS 3D machine control system. range, and has provided product pumps from In-cab noise levels are low, according This grade-positioning system uses a support for several 220 t Unit Rig to Atlas Copco, and the operator has real-time kinematic GPS, Terramodel trucks at the LTV Steel Mining Grindex a good view during both collaring and digital terrain model, graphic operation, where it says they have drilling. Easily accessible controls are operator interface and a simple three- achieved the highest availability and The Magnum is the newest and mounted in the seat armrests, and the light display to guide the operator to performance rating of any truck in largest pump in the Grindex range of cab is both heated and air- within 25 mm of the desired grade their size class on the US iron range. heavy-duty submersible pumps. It is conditioned. anywhere, making any rough grading According to P&H, the MT- 4400s are also the most powerful, specifically Atlas Copco Rock Drills AB, S-701 project a simple, seamless manoeuvre. well matched to four-pass loading by developed for demanding 91 Örebro, Sweden. Tel: (+46 19) 670 It uses actual plans to make an P&H’s 2800XPB shovels. These have applications. Three versions are 7000. Fax: 670 7070. `electronic’ design a reality. With real- up to a 55 t dipper load capacity and offered: N regular flow, H high head time X, Y and Z axis positioning of several are already in use at Cleveland and L large flow. It is convertible the machine’s cutting edges, an Cliffs’ operations. between models N and L without Crawler trucks operator can achieve accuracy equal Louise Hermsen, P&H Mining changing the motor. to, or better than traditional grading Equipment. Tel: (+1 414) 671 7731. The maximum flow is 15,000 l/min from Alltrack methods, with greatly reduced E-mail: [email protected] and the maximum head is 110 m. engineering and labour costs, and at Weighing 550 kg, the rated output of the Alltrack offers a line of six off- higher speeds. Magnum is 60 kW. It operates with 152, highway, crawler-tracked dump Spectra Precision, 5475 Sandvik 203 and 254 mm discharge connections. trucks ranging from a 1.5 m3 capacity, Kellenburger Rd, Dayton, OH 45424- Grindex is also introducing the 34 kW machine to an 11.5 m3, 298 kW 1099, US. Tel: (+1 937) 233 8921. Tamrock’s large Tuff-One, the first submersible hauler. Their capabilities in rough Fax: 233 9441. drainage pump in a completely new terrain and poor weather conditions www.spectraprecision.com underground product range, the Tuff-Line. This are, claims to be, far superior to will be a line of small, highly efficient, rubber-tyred vehicles. Their trucks durable and wear-resistant pumps. powertrains include low-emission The maximum flow of the Tuff-One is engines and hydrostatic transmissions The 220 t Unit Rig trucks are well After taking on the Sisu technology 360 l/min at a maximum head of 16 m. that employ single-lever drive/control matched for loading by P&H 2800XPB for large underground trucks, and its Its rated output is 0.8 kW. It features systems. and 4100A electric mining shovels. unique multi-axle bogie, Sandvik both inbuilt start and run capacitors Tamrock now offers large-capacity to ensure the correct starting torque units that can operate in the confines and efficient running. of an underground mine. The Supra Grindex, PO Box 538, SE-136 25 truck challenges conventional rail and Haninge, Sweden. Tel: (+46 8) 606 conveyor systems for main haulage 6600. Fax: 745 5328. E-mail: levels. It is cost effective for long-term [email protected] haulage needs when high capacity is required, and offers the advantage of flexibility and ease of installation Atlas Copco over rail and conveyor systems. The multi-axle design makes the challenges unit compact, but offers high payload capacity. At the same time, this convention reduces tyre loading and allows high tramming speeds. The Supra 0012H, Atlas Copco unveiled what it for example, is a ten-wheel machine describes as “a new challenger to with a nominal 80 t payload able to conventional rotary drill rigs” at the travel at speeds up to 30 km/h. Conexpo show, held recently in Las According to Esa Östring, who has Vegas. The ROC L8 down-the-hole been involved with these units since surface crawler, the largest in the Sisu first began designing company’s drill rig range, is designed underground trucks, “driving the for large-scale operations such as Supra is comparable to driving a high-capacity cement and limestone family car or a modern highway quarries and large open-pit mines.

296 Mining Journal, London, April 23, 1999 FOCUS AND COMMENT

otwithstanding the signs of price further reduction of 130,000 to 10.84 Mt improvement for some base metals forecast for 2000. Taking into account net Nthis month, the Economist imports from non-Western countries, the Intelligence Unit (EIU) in its most recent A long haul EIU is forecasting a copper surplus this forecast on world commodities* is now more year of 335,000 t. bearish about the prospects for industrial There should be a marked improvement raw materials than it was three months ago. for base in the supply/demand balance next year The EIU reports that in the first quarter of and prices could start to recover. By the sec- 1999, industrial raw materials prices fell by ond quarter of 2001, the price could average 15%, with a 16% fall posted by base met- metals US$0.75/lb, but, as the EIU points out, this als. would only be 25% higher than the low For the balance of 1999, the EIU is fore- to existing capacity, plus new capacity point of US$0.60/lb forecast for the second casting that its price index (based on 24 start-ups in Argentina, Dubai, Iran, and quarter of 1999. hard and soft commodities ) will fall by 9%, Nigeria. Altogether, these increases will with base metals leading the slump. Next raise total production by almost 800,000 t. year, however, it is forecasting a 12% Current low prices could see some cuts in Nickel output to jump improvement in the index, with the perfor- Western production by the end of the year mance of all four component groups – base and are also likely to delay some new For nickel, the EIU’s prognosis is some- metals, fibres, rubber and crude oil – smelter projects. As a consequence, output what better. The performance of the stain- expected to strengthen. growth in 2000 could slow to 2.2% from an less steel sectors in Asia and Europe will be Nevertheless, the EIU tempers this posi- anticipated 4.8% for 1999. key in terms of demand and after the limit- tive forecast by pointing out that the The EIU notes that LME stocks of alu- ed growth forecast for 1999, a respectable improvement will only bring base metals minium and producer stocks, as reported by recovery is forecast in 2000. Western nickel prices back to their 1998 levels. The low the International Primary Aluminium consumption fell by 1.5% last year but is point for commodity prices is expected to be Institute, are at reasonable levels and that forecast to rise by 1.4% to 930,000 t this reached in the third quarter of 1999. the stocks-to- consumption ratio is normal. year and by 4.4% to 971,000 t in 2000. In its forecasts, the EIU makes a number It suspects, therefore, that the current price Supply was marginally lower in 1998 than of key assumptions: world economic growth weakness indicates that there is a substan- in 1997 but Western production seems set to of 1.6% in 1999 compared with 2% in 1998; tial volume of unreported stocks, perhaps rise this year by a hefty 7.3% to reach slower than average growth in OECD coun- as much as 2 Mt above normal, being held 753,000 t. tries with the exception of North America, by traders, financial institutions and con- Taking into account net imports of for which 3% is assumed; a further contrac- sumers. 204,000 t from Eastern countries, total tion of the Japanese economy but a halt to Given the continuing high net flow of alu- Western nickel supply in 1999 could be of the contraction in the crisis-ridden develop- minium from Russia, the EIU expects that the order of 957,000 t, implying a surplus of ing economies of east Asia; declining busi- the market oversupply will worsen. about 27,000 t. This would raise total ness confidence and poorer export prospects Aluminium prices are thus forecast to reported market stocks to 277,000 t, equiv- to slow European growth to 1.6%; a reces- remain close to US$1,200/t until production alent to 15.5 weeks of consumption. Stocks sion in South America brought about by the cuts are made. These are deemed likely are expected to remain at a similarly high currency devaluation in Brazil, where the either later this year or early in 2000. level next year. economy is expected to contract by 5%; the Nickel production is likely to have continuing strength of the US economy, rel- reduced significantly by 2000 because of the ative to the EU and Japan, with a conse- Copper producers wait impact of the low nickel price, and the EIU quent further softening of the euro and the says that low prices could also lead to some yen against the dollar. Western copper demand is forecast to revisions to planned new production. It decrease by 1% this year, with the sharpest points out that a number of so-called low- regional fall likely to be in Western Europe cost solvent-extraction projects depend on Aluminium glut? where a 2.3% drop in consumption is antici- a sustained nickel price of US$3.00/lb pated There could be a 4% rebound in the (US$6,613/t) and doubts that such a price For aluminium, the EIU sees potential region next year, however. In Asia, falling level will be realised within the next two for a serious physical oversupply developing consumption in Japan is almost offset by years. in the second half of 1999 which could wors- the effects of economic recovery elsewhere During 2001, the effect of forced closures en in 2000 and 2001, despite some recovery in the region. Total Western consumption is and delayed start-ups could tighten the in consumption. The economic problems in forecast at 11.23 Mt in 1999 and 11.53 Mt market to the point where prices will be sus- Asia, Russia and Latin America are impact- in 2000. tained just short of US$3.00/lb – enough to ing on demand, and after a 5% increase in The dominant factor on the supply side, keep low-cost producers in business but too 1997, primary aluminium demand last year according to the EIU, is that at a price of low to stimulate new capacity. grew by only 0.3%. A similar level is expect- around US$0.62/lb, some two-thirds of ed for 1999. world production capacity is operating at a Western consumption is forecast at 18.65 loss. Nevertheless, there is a reluctance Tin optimism Mt in 1999 and 19 Mt in 2000. By compari- amongst producers to cut output. The EIU son, Western output, which reached 16.63 suspects though, that if low copper prices in The EIU says that global tin consump- Mt last year, is forecast to reach 17.42 Mt in the US$0.60-65/lb range persist through tion was flat last year, and it foresees only 1999 and 17.8 Mt in 2000. A net annual flow 1999, some 0.5 Mt/y of current working minimal growth for 1999. A number of new to the Western market of about 2.6 Mt, capacity will be closed in 2000, mostly in applications for tin are under study (MJ, principally from Russia, is expected, imply- North America. April 16, p.283) but the EIU believes that ing a supply surplus of around 1.4 Mt in However, with the new low-cost capacity the International Tin Research Institute’s both years. coming on stream, total Western refined forecast of a 23,000 t increase in global con- Western primary aluminium production copper production is forecast to reduce by sumption by 2000 from the 1997 level of this year will include 380,000 t in additions only 110,000 t this year, to 10.97 Mt, with a 230,000 t is optimistic, favouring an

298 Mining Journal, London, April 23, 1999 FOCUS AND COMMENT increase of no more than 6,000 t. Global output in 2000 is forecast at 237,000 t, with Western production contributing 153,000 t. Indecent haste Dependence on China to bridge the supply he first signs were evident last week of investors are now starting to come back. For gap will increase. Tin prices are expected to a significant thaw in the long winter suf- example, according to the US investment fall back towards US$2.30/lb through the Tfered by mining equities. Major mining bank J. P. Morgan, the average spread of the balance of 1999 and to average US$2.40/lb companies around the world typically record- yields on bonds issued by the governments of next year. Thereafter, a supply deficit could ed gains of 10-30% for the week. Many emerging economies over US Treasury emerge and push prices significantly higher. were building on earlier gains: Rio Tinto fin- bonds (which indicates the premium that ished the week 43% higher than at the start investors demand for holding them instead of of the year; its neighbour in the London mar- their safer US counterparts) had fallen to less Zinc improving ket, Billiton, rose by more than 60% and, at than 9% last week, compared with around just over £2/share, came within sniffing dis- 15% at the start of the year. An extremely small supply surplus is tance of the £2.20/share at which it was The prospect of economic recovery in forecast for zinc this year, with the market launched in London in mid-1997, just before developing markets, and the potential this moving into deficit in 2000 when prices are the Asian crisis began. Across the Atlantic, offers for the consumption of raw materials forecast to rise to more than US$0.50/lb. Alcoa gained 45% since the start of the year, (developing economies have disproportion- This compares with US$0.41/lb at the start and in Australia, even troubled BHP was ately high levels of manufacturing and other of 1999. The EIU says that the metal’s around 30% higher. The pattern continued non-service industries), has driven base met- prospects have undoubtedly improved in into this week but was then eroded by some al prices higher in recent weeks. By the end recent months, with reported industry profit taking. The gains appear strongest of last week, copper was 13% above its low stocks now at their lowest since mid-1992, among the major companies, and the relative for 1999, aluminium was 15% off the bot- and equivalent to less than 6.5 weeks’ con- gain in the values of their shares over the tom, and the smaller markets of nickel and sumption. smaller companies may encourage further zinc were respectively 35% and 28% above This year, Western refined consumption consolidation. their low points. However, amidst the reports of zinc is forecast at 6.53 Mt versus total These gains are not merely part of the of investment funds moving from short to supply of 6.54 Mt, implying a surplus of much-publicised upward march in equities in long positions in base metals, physical stocks just 10,000 t. A 25,000 t deficit is forecast general. Industrial shares, such as the equip- of most metals remain persistently high. for 2000. The major concern is the level of ment manufacturer Caterpillar, have also Metal market analysts predict surpluses this Chinese exports to the West. These fell made impressive gains, whereas the recent- year without further significant production from 527,000 t in 1997 to 354,000 t in 1998. ly-fashionable growth stocks, in high-technol- cuts, and most do not foresee a recovery Any major increase in Chinese exports ogy and pharmaceuticals, have fallen back. based on fundamentals until next year at the would depress prices. Just a few months ago, a recovery among earliest (see opposite page). The EIU sees no prospect of lead recover- mining shares, to anywhere close to the lev- Shares in mining companies traditionally ing this year, with rising stocks, bearish els mining enjoyed before the Asian econom- run ahead of the prices of the metals they LME sentiment and poor demand all serv- ic crisis drove down industrial demand and produce, by anything up to six months, but ing to depress prices. Although Western commodity prices, seemed a very long way the current rally appears remarkably early if it consumption will comfortably exceed pro- off. By the start of this year, although the situ- is based on expectations of economic recov- duction in 1999, imports will remain high to ation in Asia was stabilising, the economic ery in 2000. Some commentators are now give an overall surplus of some 85,000 t. problems had spread to Russia and Latin stretching the ‘normal’ lead time to up to 12 The market is not expected to tighten until America, and only the increasingly precarious months, which conveniently fits the current the second half of 2000, although this will balancing act between inflation and sustain- rally to the fundamental analysis. Admittedly, depend, crucially, on a decline in metal able growth in the US economy was seen as the sheer quantity of information and analysis shipments from Eastern countries. Net preventing a further collapse in metals available to today’s investor, and the speed at Western imports are forecast at 230,000 t prices. Now, pundits are talking confidently of which it is delivered, mean that markets react this year and 190,000 t in 2000. The EIU the cycle turning, the end of the bear market, ever earlier to developments, partly through notes that last year, for the first time, recy- and of mining shares coming back into fash- fear of missing an opportunity. There is cled metal accounted for over 60% of ion. The recovery has even reached the con- increasingly truth in the old cliché that ‘its all Western refined lead production. sumer finance pages of the mainstream in the price’. Nevertheless, the recent gains *World commodity forecasts: industrial raw materials – 2nd press. made by mining shares must remain quarter 1998. Available as an annual subscription (five There are certainly signs that the vulnerable to any bad news regarding funda- issues), price £425 (US$795), or as a single issue, price £210 (US$395), from Economist Intelligence Unit. Tel:(+44) 171 economies of the emerging markets that had mentals while the underlying recovery is 830 1007. E-mail: [email protected] fallen so badly out of favour with Western awaited. THE MINING JOURNAL LTD Mining Journal THE MINING JOURNAL LTD, Mining Magazine World Gold 60 Worship Street, Paul Burton ACSM, M.Sc., MBA Editor John Chadwick B.Sc. London EC2A 2HD. Des Clifford B.Sc. Helen Payne M.Sc., DIC Roger Ellis B.Sc., C.Eng. Tel: (+44 171) 216 6060. Mining Environmental Management Advertising Deputy Editor Fax: (+44 171) 216 6050. Meredith Sassoon M.Sc. Michael Bellenger E-Mail: [email protected] Richard Morgan M.Sc., DIC, C.Eng. Tracey Khanna M.Sc., MCSM Shelley Hannan Assistant Editors Civil Engineering Publications Marketing Andrew Thomas M.Sc., DIC Web Home Page: Ian Clarke B.Sc. Gareth Bowers Dominic Mercer M.Sc., DIC, FGS http://www.mining-journal.com Alan Kennedy B.Sc. Carole Hoy Production Geoff Pearse B.Sc., C.Eng. Editorial Consultant & Chairman Susan Roberts Mike Smith HND (Min.) Subscription Dept: PO Box 10, Michael West B.Sc., F.Eng. Editorial Director Edenbridge, Kent TN8 5NE, UK Research Services Chris Hinde Ph.D., C.Eng. Tel: (+44 1732) 864333. Eileen Smith Managing Director & Publisher Fax: (+44 1732) 865747. Austin Wheeler B.Eng. Lawrence Williams B.Sc., C.Eng. Mining Journal, published weekly, is available only as Christopher Hall M.Sc, C.Eng. (Consultant) © Mining Journal Ltd 1999 part of a subscription with Mining Magazine and Mining Annual Subscription: Richard Thompson ACSM (Consultant) Annual Review. U.K. £230; Overseas £238 (US$428, ᇾ345) Simon Walker MCSM, C.Eng. (Consultant) Member of the Audit Bureau of Circulations

Mining Journal, London, April 23, 1999 299 MINERAL MARKETS

mances. Aluminium’s rise was less spectacu- currency movements, were able to enjoy lar, but nevertheless the three-month price realised prices as high as US$412/oz by Metals reached US$1,334/t at one point before cashing in hedge books established earlier. falling back in the face of producer forward On the demand side, GFMS says that the selling. Analysts suspect that aluminium is collapse of jewellery demand from east Asia rounding less likely to experience a severe technical and elsewhere forced a 5% cut in fabrication correction than copper as its recent strength demand. European and North American has been built more slowly. investment demand also returned to the the bend? Nickel rallied with the three-month price market in 1998 but GFMS says that this rising to touch US$5,355/t last Friday, its was largely the result of short covering in highest level for 11 months. The price has the wake of the collapse of LTCM in Over the past few weeks there has been a subsequently weakened but analysts note September. marked change in sentiment in base metal that its performance has been technically A more detailed summary of Gold 1999, markets with many participants feeling strong and that the potential for further will be published in the Mining Journal that prices are starting to come out of the upside moves remains. Zinc also did well Precious Metals Supplement on May 28. doldrums that they have been in for the past reaching US$1,070/t, whilst lead touched 18-24 months. This week, the improved sen- US$542/t. timent was demonstrated on the London PGM Déjà vu Metal Exchange where prices for all metals rallied strongly and built on the advances No surprises In what is increasingly becoming an annual they have made since the end of March. event, Russian shipments of platinum According to dealers, much of the impe- On Sunday, the Swiss decided to break the group metals (PGM) are being delayed and, tus for the rallies comes from major traditional link between the Swiss franc and amongst Japanese traders, there are now investors who have decided that the global gold, however, the gold market failed to expectations that Russia will maintain its economy is improving and who have respond to the news one way or another on freeze on shipments directly to consumers renewed their interest in resource company Monday and meandered around until the second half of the year. Traders shares (this issue p.299). US$284/oz. Kelvin Williams, an executive have said that they have made inquiries to This has given confidence to the metals director of AngloGold, said that he was not Almaz (the Russian body responsible for markets and encouraged the belief that surprised by the market’s failure to respond, PGM exports) but have yet to receive any prices have turned and will improve in the saying that the decision had been expected. firm answer. Last year, late shipments were coming six to nine months. This is not a He took heart from the fact that the Swiss attributed to bureaucratic delays. This unanimous view, however. The Economist National Bank will retain half of its could be the reason for the current delay, Intelligence Unit in its latest report (this reserves, and believed that the bank’s sur- although another more likely reason, issue p.298) believes recovery is still some plus gold will be sold in an orderly manner according to one trader, is that Russia is way off, and Philip Crowson, the former that will not affect the market. Likewise, he becoming increasingly reluctant to sell its chief economist of Rio Tinto and currently felt that the gold likely be sold by the IMF PGMs at times when market prices are low. a director of the LME, warned in Helsinki is not important, providing that it is sold in He believes that this year it may not sign this week that prices would remain “weak- the same way. any supply contracts, preferring to dispose ish for about the next year, bumping around Meanwhile, in its latest annual report, of its PGM on the spot market when prices with some speculative peaks”. Gold Survey 1999, Goldfields Mineral are strong. This preference for spot market This week’s rally on the LME was con- Services (GFMS) notes that 1998 was a dis- sales has been cited as a the reason behind vincingly led by copper, the market taking appointing year for the metal. Its price palladium’s recent price stability. Traders heart from rumours that Mitsubishi dropped to its lowest level since 1978 and in believe that the Russians, in order to limit Materials Corp.’s 75%-owned Gresik real terms fell back to levels last seen in the negative impact on prices, are selling a smelter and refinery in Indonesia is experi- 1972. In addition, the problems experienced portion of their palladium in the spot mar- encing quality problems with its cathode by the world’s financial markets did not ket, as this can be more easily disguised and will have to delay shipment. The mar- trigger a ‘flight to quality’; in fact GFMS, than commencing large deliveries of the ket chose to ignore the news that LME cop- says that in Europe and North America, metal to Japan under supply contracts. per stocks have risen to fresh all-time highs, gold has largely lost its role as a financial A sign of this price stability is given by and three-month copper sped to hedge and is increasingly being viewed as a palladium lease rates which are steady at US$1,530/t, its highest close for four and a just another commodity subject to the same around 6% for one month and around 8% half months. After its initial burst, copper deflationary forces that have driven down for three-month metal. Tokyo premiums for consolidated its position and attempts to prices of other commodities. palladium over the Zurich market are also breach the US$1,550/t level were thwarted On the supply side, mine production con- steady at around US$4-5/oz for ingot and by long liquidation and producer selling. tinues to grow, it rose by 3% to 2,555 t. US$5-7/oz for sponge. This situation con- Traders say that the metal now appears to According to GFMS, only 2% of gold mines trasts strongly with this time last year when have overextended itself and they are pre- operated on a cash negative basis (ie had one-month palladium lease rates increased dicting a retreat to support levels around cash costs above the US$294/oz average to over 100% in April. US$1,500/t before a further upward move is price in 1998). This reflects the success pro- Meanwhile, in a separate development in attempted. ducers have had in cutting production costs. the PGM markets, the US Defense One such trigger for a renewed upward GFMS estimates that Western producers Logistics Agency has said that it will sell move would be the rationalisation of copper were able to cut their cash cost by 18% to its quota of PGM in 1999 over the internet, production in the southwestern states of the average US$206/oz in 1998. effectively setting up an on-line exchange US – rumours persist that BHP has been in GFMS says that the net impact of pro- for companies that have already submitted contact with other copper producers in the ducer hedging was unusually low last year a basic ordering agreement. The 100,000 oz area with a view to selling part or all of its with the net gold supply from this source of platinum, 150,000 oz of palladium copper operations. falling to 60 t, compared with over 470 t in and 4,450 oz of platinum-iridium are the Copper’s exuberance was reflected by the 1997. It notes that some producers were first PGM to be sold by the agency since other metals which all gave strong perfor- very active in this arena and some, due to 1997.

300 Mining Journal, London, April 23, 1999 LME PRICES & STOCKS MINING FINANCE

Prices (a.m.) Apr 22 Apr 15 Tonne basis Buyers Sellers Buyers Sellers COPPER Grade A Cash...... $1,519 $1,520 $1,440 $1,442 Three months ...... $1,549 $1,549.5 $1,468 $1,469 TIN Results fail to Cash...... $5,410 $5,415 $5,330 $5,340 Three months ...... $5,435 $5,440 $5,315 $5,320 LEAD Cash...... $528 $528.5 $526 $527 Three months ...... $532 $533 $528 $528.5 match mood ZINC Special high grade Cash...... $1,029 $1,029.5 $1,007 $1,008 Three months ...... $1,049 $1,049.5 $1,026.5 $1,027 Amidst the spectacular gains made by Alcan’s Canadian operations, which ALUMINIUM Higher grade shares in base metal mining companies include most of the company’s primary alu- Cash...... $1,301 $1,301.5 $1,294.5 $1,295 Three months ...... $1,324.5 $1,325 $1,312 $1,313 recently, which appear to be based on the minium production capacity, contributed a Alloy Cash...... $1,177 $1,180 $1,180 $1,182 expectation of economic recovery in impor- net loss of US$27 million in the March Three months ...... $1,194 $1,196 $1,199 $1,200 tant markets some time next year (this quarter, compared with a profit of US$47 NICKEL Cash...... $5,070 $5,075 $5,085 $5,090 issue, p.219), actual results remain million in the first quarter of 1998. The con- Three months ...... $5,155 $5,160 $5,165 $5,170 depressed. Reynolds Metals Co. of the US tribution from its European operations was this Tuesday reported a net loss of US$10 a much reduced profit, of US$8 million, a LME warehouse stocks on April 21 million for the quarter to March 31, 1999, fall of 67%. However, Alcan’s US operations Stocks Stocks compared with a profit of US$35 million for continued to perform strongly, making a net (t) (Apr 14) the corresponding quarter of last year. profit of US$34 million, a rise of 10% from COPPER Despite higher tonnages shipped in all the first quarter of last year, and its Asia Grade A cathodes 741,150 738,625 product sectors, total revenue fell by 30%, and Pacific division staged a major recov- TIN 9,970 9,420 to US$1.1 billion. ery, returning a profit of US$16 million LEAD 104,850 103,275 Reynolds cited “extremely low” alumini- compared with a loss of US$6 million in the ZINC SHG 320,100 318,625 um prices as the key adverse factor. The first three months of last year. ALUMINIUM HG 789,400 803,350 company’s average realised primary alu- A similar continued deterioration has been Alloy 64,000 66,460 minium price was US$0.64/lb, 17% lower reported by some copper producers. NICKEL 61,188 61,308 than in the first quarter of 1998, and its Following last week’s essentially break- average realisation on fabricated products even performance from Phelps Dodge was down 1.5%, at US$1.92/lb. Reynolds Corp., down from a US$163.7 million net also suffered a US$12 million loss related to profit in the first quarter of 1998 (MJ, April foreign currencies, principally in Brazil. 16, p.285), US-based Freeport-McMoRan The chief executive of Reynolds, Jeremiah Copper & Gold Inc. this week posted attrib- LONDON PRICES Sheehan, said that the company expects to utable income of US$17.7 million for the benefit in the coming quarters from recent March quarter of 1999. This is 33% lower Metals Apr 22 strengthening in the aluminium market. than the result for the first quarter of 1998, Aluminium (US producer) 61.00-62.00 c/lb d/d Mr Sheehan predicts the December quarter despite a 23% increase in copper produc- Antimony $1,230-$1,280/t cif Arsenic (Rotterdam 99%) $0.40-$0.55/lb of 1999 to be the year’s strongest, as the hol- tion attributable to Freeport’s 85.9%- Bismuth Bismuth $3.40-$3.60/lb cif Cadmium (99.99%) $0.18-$0.23/lb cif iday season usually boosts demand for alu- owned subsidiary PT Freeport Indonesia .. (99.95%) $0.16-$0.20/lb cif minium used in consumer products. (PT-FI), to 354.3 Mlb (160,700 t) and a Chrome (UK 99%) $9.00-$10.00/lb Cobalt (99.8%) $16.00-$17.00/lb net Last week, Alcan Aluminium Ltd of 41% in attributable gold output, to 609,800 .. (99.3%) $14.50-$15.00/lb net Germanium $790-$820/kg Canada posted attributable income of oz. Total production from PT-FI’s Gold £176.45 ($283.35)/oz US$35 million for the March quarter, a fall Grasberg mine in Irian Jaya during the Indium $175-$195/kg Iridium (J Matthey price) $415/oz of 69% compared with the first quarter of March quarter was 396.7 Mlb of copper, Magnesium (Norsk Hydro Euro. prod.) ᇾ2.94/kg* .. (US Free mkt, 99.8%) $2,100-$2,700/t* 1998. Sales revenue was down 7%, to 731,400 oz of gold and 781,100 oz of silver; Manganese US$1.8 billion. The company blamed an the balance being attributable to Rio Tinto metal (99.7%) $1,080-$1,140/t Mercury (99.99%) $130-$140/flask 18% fall in the average market price of pri- plc, which has helped to finance the expan- Nickel $2.30-$2.31/lb Osmium $400-$450/oz mary aluminium as the main reason, which sion of the operation. Palladium (J Matthey price) $380.00/oz largely offset its efforts to increase prof- The chief culprit was a 19% fall in .. (Free market) $359.00-$361.00/oz Platinum (J Matthey price) $360.00/oz itability. The chief executive, Jacques Freeport’s realised copper price, to .. (Free market) $362.00-$367.00/oz Rhodium (J Matthey price) $860/oz Bougie, described the quarter as “difficult”, US$0.64/lb. However, lower gold and silver Ruthenium (J Matthey price) $40/oz but noted that the company “continues to prices also contributed. The company Selenium $1.60-$2.00/lb cif Silver $5.17/oz improve the underlying profitability of its realised US$285/oz on its gold and Tellurium (UK lump & powder 99.95%) $5.00-$7.00/lb net business” towards its new target of improv- US$5.06/oz on its silver, respectively 1.8% Tin (Kuala Lumpur) RM20.14/kg ing earnings by US$700 million (pre-tax) and 15% less than in the first quarter of Ore & Oxides Apr 22 over the next three years (MJ, April 9, 1998. This meant that despite the increase Antimony (60%) $8.50-$9.00/t unit, cif nom* p.269). in gold output, and stable silver production Beryl (10% BeO) $75-$80/s ton unit BeO cif* Additional adverse factors during the at 693,800 oz, the increase in the credit from Chrome (Transvaal, Friable 40%) $63-$68/t, fob* .. (Turkish, concs 48%) $75-$85/t fob* most recent quarter included the economic the by-products was restricted to 14%, at Columbite (min. 65% comb. oxides) $2.80-$3.20/lb cif* problems and currency devaluation in US$0.48/lb. Nonetheless, this credit gave Ilmenite (54% TiO2) A$95-A$110/t fob Lithium ores (Petalite 4.2% Li2O) $250/t fob* Brazil, which resulted in Alcan’s South Freeport an effective copper price for the (Spodumene>7.25% Li2O) $385-$395/t fob* Manganese ore (48-50% Mn, American operations returning a US$9 mil- quarter of US$1.12/lb, one which would max. 0.1% P) $1.81-$1.90/t unit fob* Molybdenum lion loss for the quarter compared with a delight any pure copper producer and which oxide (conc 55-57%) $2.50-$2.80/lb profit of US$5 million in the first three explains Freeport’s continued ability to Rutile (Aust. 95-97% TiO2) A$700-A$775/t fob (bulk) months of last year, and a strengthening in stay out of loss in the current market. Tantalum oxide (60% cif N. Euro port) $26-$32/lb Uranium (Nuexco unrestricted/restricted the Canadian dollar. This last factor, a Freeport notes that Grasberg treated an U3O8) $8.50/$10.85/lb reversal of the weakening that has provided average of 222,000 t/d during the quarter, Vanadium (98% V2O5) $1.90-$2.20/lb cif Wolframite (65%) $40-$45/t unit some respite in the past, resulted in a non- and approximately 230,000 t/d during the Zircon sand (std 66-67% ZrO2) A$500-A$600/t fob (bulk) cash charge of US$9 million from the reval- month of March. This compares with a * Source: Metal Bulletin uation of deferred tax liabilities. nominal expanded capacity of 200,000 t/d.

Mining Journal, London, April 23, 1999 301 MINING FINANCE

Future throughput rates will vary accord- production growth through the acquisition ing to the type of ore treated. Freeport Harmony posts of mines regarded as surplus by larger pro- expects PT-FI’s share of production for the steady quarter ducers. These include the Evander opera- whole of 1999 to total about 1,400 Mlb of tions, bought from Gold Fields Ltd, and copper and 2.1 Moz of gold. The first of the South African gold produc- part of Harmony’s Free State operations, Freeport’s March quarter results includ- ers of significant size to report its March acquired from AngloGold Ltd, which have ed a loss of US$7.5 million from its 25% quarter results, Harmony Gold Mining Co. carried Harmony comfortably past the 1 equity share in PT Smelting Co., which Ltd, this week announced net earnings of Moz/y mark. This focus on profit is illus- made the first sales from its Gresik copper R86.6 million for the three-month period. trated by the fact that Harmony, in turn, smelter in Indonesia during the period (MJ, This compares with net earnings of R38.8 disposed of its own small, high-cost opera- October 16, 1998, p.295). Gresik receives all million for the preceding three months, to tion on the East Rand, close to of its concentrate feed from PT-FI. The December 31, 1998. The main reason for the Johannesburg, at the start of the most smelter is expected to build to its full capac- increase was the R30.2 million charge for recent quarter (MJ, December 11, 1998, ity of 200,000 t/y over a two-year period. redundancies incurred in the prior period. p.482). ■ During the March quarter, PT-FI Harmony’s operating profit based on cash reached agreement with the Indonesian operating costs only (essentially its cash Government to voluntary additional royal- flow from operations) rose by 4%, to R104.3 SouthernEra moves ties as part of the negotiations for a possible million, as the gold price received increased into platinum to future expansion to 300,000 t/d (MJ, by 3% to R56,917/kg. This was entirely the February 5, p.88). Freeport has given result of a further weakening in the value of resurrect Messina details of the increases (MJ, February 19, the South African rand against the US dol- p.116), which it points out are only on metal lar, as Harmony’s received gold price in the The Toronto-based diamond producer and produced from ore treatment in excess of latter currency fell by US$7/oz compared exploration company SouthernEra 200,000 t/d. Including the existing Contract with the December quarter, to US$290/oz. Resources Ltd has agreed to acquire a of Work royalties, these increases will basi- Profitability was helped by cost control 54.2% interest in Johannesburg-listed cally triple the royalties on gold and silver as, despite the weakening of the rand, oper- Messina Ltd from Impala Platinum sales above 200,000 t/d and double those on ating costs in local terms rose by only 0.3%, Holdings Ltd for US$10.5 million. Once the copper (which are on a sliding scale), effec- to R46,432/kg. This was a particularly good purchase has been completed, SouthernEra tive from the start of this year. performance in terms of unit costs as pro- intends to make an offer to the minority Freeport notes that royalties are largely duction fell by 9%, to 9,943 kg for the quar- shareholders in Messina Ltd on the same distributed by the government to local ter, although the cost stability was due at terms. Messina holds 5,439 ha near authorities, and therefore the decision to least in part to a 4% increase in the average Potgietersrus in South Africa’s Northern offer the voluntary additions was influenced grade recovered, to 5.31 g/t, across Province, with a 16 km strike length on both by the prospect of providing extra financial Harmony’s Free State operations and at the UG2 and Merensky platinum-bearing support to the people of Irian Jaya. The Evander, east of Johannesburg. reefs, plus R58 million in cash. local people have expressed their dissatisfac- The decrease in overall output indicates The terms of the agreement require that tion over the disbursement of funds in the that Harmony is concentrating on prof- SouthernEra completes a bankable feasibil- past (MJ, August 29, 1997, p.173). ■ itability, following a period of substantial ity of the Messina project within four months. A prefeasibility study has been SHARE PRICES AND EXCHANGE RATES completed, independently reviewed by con- sulting engineers Steffen, Robertson and Kirsten, at a cost of more than C$1 million Apr 20 Change on $ Apr 20 Change on $ Company Local week % Dollar hi-lo Company Local week % Dollar hi-lo which, according to SouthernEra, would require little further work to upgrade to full Alcan Aluminium (C$) .....42.55 00.00 0.06.4 00.0028.75 0067 Pasminco (A$) ...... 00.001.59 22.3 0.0 00.001.04 0092 Alcoa ($) ...... 52.75 00.0013.0 0.0 00.0052.75 100 00 Phelps Dodge ($)...... 00.0059.94 18.8 0.059.94 00.00 0064 feasibility. The project lies just 16 km Alusuisse (SF)...... 1740.00 00.00 0.04.2 1163.88 00.00 0051 Placer Dome (C$) ...... 00.0019.05 15.5 0.012.87 00.00 0058 Anglo Amer. Corp. (R)...... 302.00 00.0018.3 0.0 00.0049.92 0080 Reynolds Metals ($)...... 00.0056.69 9.5 0.056.69 00.00 0060 southeast of SouthernEra’s Klipspringer Anglo Amer. Gold (R)...... 414.00 00.0015.0 0.0 00.0068.43 100 00 Rio Algom (C$)...... 00.0018.05 15.7 0.012.20 00.00 0023 diamond mine, offering the opportunity to Anglo Amer. Plat (R)...... 126.00 00.0018.4 0.0 00.0020.83 100 00 Rio Tinto Ltd (A$)...... 00.0025.98 10.6 0.016.93 00.00100 00 Anglovaal Mining (R) ...... 36.00 00.0024.1 0.0 00.005.95 0032 Rio Tinto plc (£) ...... 00.0010.11 12.3 0.016.28 00.00100 00 reduce costs through the sharing of infra- Asarco ($) ...... 16.50 00.0018.4 0.0 00.0016.50 0024 Royal Oak Mines (C$)...... 00.000.07 –36.4 0.0 00.000.05 000 ASA ($) ...... 17.88 00.00 0.09.2 00.0017.88 0026 Teck (C$)...... 00.0012.25 15.6 0.0 00.008.28 0026 structure. Ashanti Goldfields (£)...... 5.26 0.8 8.47 54 Trelleborg (SK)...... 00.0086.50 4.8 0.010.37 00.00 0037 Total resources for the Voorspoed and Ashton (A$) ...... 00.000.58 0.05.5 00.000.38 005 WMC (A$) ...... 00.006.33 28.7 0.0 00.004.12 100 00 Barrick Gold (C$) ...... 28.20 00.00 0.09.1 00.0019.05 0060 Doornvlei sections (to a depth of 1,000 m) Battle Mt Gold ($) ...... 00.002.56 –2.3 0.0 00.002.56 000 Broken Hill Pty (A$)...... 16.40 00.0015.3 0.0 00.0010.68 100 00 are 51 Mt, at a grade of 6.4 g/t combined Cleveland-Cliffs ($)...... 39.75 00.0016.5 0.0 00.0039.75 0028 PGM and Au. The prefeasibility study Comalco (A$)...... 00.006.30 0.09.6 00.004.10 0073 Cominco (C$) ...... 22.50 00.00 0.09.0 00.0015.20 0071 envisages mining 60,000 t/month of ore, Cyprus-Amax ($) ...... 13.69 00.0014.1 0.0 00.0013.69 0050 Share prices and exchange rates, as at close of business on De Beers Centenary (R) ...140.40 00.00 0.09.0 00.0023.21 0081 Tuesday. 100 in the high/low column indicates that the share exploiting both reefs initially on just the Delta Gold (A$) ...... 2.20 1.5 1.43 43 is trading at a high in US$ terms, 0 that it is at a low. Figures Voorspoed section of the property. This Echo Bay Mines (C$) ...... 00.002.43 –1.2 0.0 00.001.64 001 are based on dollar prices over the past 52 weeks. English China Clays (£) ... 00.002.38 0.00.8 00.003.83 0079 would yield some 120,000 oz/y of combined Falconbridge (C$) ...... 17.85 00.00 0.06.6 00.0012.06 0058 Freeport Mc C&G ($)...... 13.56 00.0019.9 0.0 00.0013.56 0040 platinum group metals (PGM) and gold, Gencor (R)...... 16.70 00.0013.2 0.0 00.002.76 100 00 plus 1,406 t/y of nickel, 848 t/y of copper 10.80 9.1 1.79 n/m GFSA (R) ...... 00.00 0.0 00.00 00 Currencies April 20 Homestake ($) ...... 00.009.25 0.04.2 00.009.25 0018 and 27 t/y of cobalt. Voorspoed is expected Value of £ $(US) Impala (R)...... 142.76 00.0022.5 0.0 00.0023.60 100 00 to be able to sustain this rate of production Inco (C$) ...... 24.30 00.0017.1 0.0 00.0016.42 0077 $ (US) ...... 0.001.61 —– JCI Gold (R)...... 00.005.65 20.2 0.0 00.000.93 006 $ (Australian)...... 0.002.47 0.001.54 for at least 33 years. The two, parallel reefs Kerr McGee ($)...... 39.50 00.0013.9 0.0 00.0039.50 0026 $ (Canadian)...... 0.002.38 0.001.48 Kidston Gold Mines (A$) . 00.000.40 0.02.6 00.000.26 004 Ringgit (Malaysian) Fixed official rate .. 6.12 3.80 are 120 m apart, requiring separate mining, Lonmin plc (£)...... 00.000.52 0.08.3 00.000.84 100 00 Franc (Swiss) ...... 0.002.41 0.001.50 and dip at an average of 58o. This is steeper Metallgesellschaft (ᇾ)...... 19.02 00.00 0.06.0 00.0020.16 0064 Krona (Swedish) ...... 0.0013.43 0.008.34 MIM Holdings (A$)...... 00.000.82 20.6 0.0 00.000.53 0053 Yen ...... 189.88 0.00117.94 0.00 than is commonly the case in existing South Minorco (£) ...... 15.19 00.0018.3 0.0 00.0024.45 100 00 Rand (SA) ...... 0.009.74 0.006.05 Newmont Mining ($)...... 21.56 00.0015.4 0.0 00.0021.56 0038 ᇾ (Euro) ...... 0.001.52 0.000.94 African platinum mines, offering potential- Noranda (C$)...... 17.90 00.0012.9 0.0 00.0012.09 n/m 00 Markka (Finnish) ...... ᇾ1=Mk5.94573 0.00 0.00 Nord Resources ($)...... 00.000.56 0.00.0 00.000.56 000 ly higher productivity through easier clean- 2.94 15.7 1.92 32 Franc (French)...... ᇾ1=FF6.55957 0.00 0.00 North (A$)...... 00.00 0.0 00.00 00 Deutschmark ...... ᇾ1=DM1.95583 0.00 0.00 ing of ore from the stopes. Work by Impala Outokumpu (ᇾ) ...... 10.70 00.00 0.07.0 00.0011.34 0048 Platinum, which was suspended seven years

302 Mining Journal, London, April 23, 1999 MINING FINANCE

ago (MJ, February 14, 1992, p.125), Teck’s substantial shareholding in that includes a 325 m vertical shaft. company. At the same time as the place- SouthernEra has no plans to build a ment is closed, scheduled for April 28, Teck smelter and refinery, but will pursue the will purchase at least 1 million additional pattern adopted by other recent entrants shares in Cominco, plus up to a further into the South African industry, by benefici- 500,000 shares if available, through private ating its ore only to the concentrate stage transactions, boosting its total interest in for onward sale or toll treatment. The presi- Cominco to up to 34.5 million shares, equiv- dent of SouthernEra, Christopher Jennings, alent to 40.4% of the total. Should Teck said last week that the company “looks for- succeed in purchasing more than 1 million ward to working closely with, and benefit- Cominco shares, the underwriters to the ing from, the experience of Impala debenture placement will have the option to Platinum”. buy up to C$25 million of additional deben- The latter company is an obvious candi- tures on a pro rata basis. The net proceeds date for taking the concentrates from to Teck of these deals, allowing for the pur- Messina, as it has spare smelting capacity chase of just 1 million additional shares in and has made deals with other small pro- Cominco, will be C$99 million. The deben- ducers and potential producers (MJ, March tures will be issued in C$1,000 denomina- 5, p.166). This week, SouthernEra tions, and each will be exchangeable at any announced a deal to consolidate its interest time into 42.55 shares in Cominco. Teck in the Camafuca kimberlite pipe in Angola may at any time redeem the debentures by (this issue, p.294). ■ delivering 42.55 Cominco shares, the cash equivalent, or the equivalent value in Teck class ‘B’ shares (but using only 95% of the Market news market price of the Teck shares to deter- mine the number). Teck will additionally The Canadian mining company Teck Corp. pay an early redemption premium for the has signed an underwriting agreement with first seven years, comprising C$112 decreas- TD Securities and Griffiths McBurney & ing to C$19 in year seven on each debenture. Partners for the private placement of C$125 The debentures will bear interest at a rate million in adjustable rate, 25-year deben- equivalent to Cominco’s dividend yield rate tures. The debentures are exchangeable into plus 2%, and the rate indicated by current common shares in Cominco Ltd, backed by circumstances is 3.28%.

304 Mining Journal, London, April 23, 1999 MINING FINANCE

■ The Toronto-based gold producer and liquidation of the assets, as requested by Inco Ltd of Canada. Inco indicated last royalty holder Euro-Nevada Mining Corp. Trilon Financial Corp., Royal Oak’s main month that it would make the funds avail- Ltd has announced that, following comple- creditor (MJ, February 19, p.126), thus able to its 58.7%-owned subsidiary, at an tion of its due diligence, it has elected to ter- leaving open the possibility of a restructur- interest rate not more than 150 basis points minate the agreement to acquire a 54% ing of the company’s debts. (100 bp = 1%) over the London Inter-Bank shareholding in Golden Cycle Gold Corp. ■ Meanwhile, Nevada-based Alta Gold Co. Offered Rate (MJ, March 26, p.229). PT (MJ, March 19, p.203). Golden Cycle has a has filed for protection in Reno under Inco plans to use the bulk of the funds to 33% interest in the Cripple Creek & Victor Chapter 11 of the Bankruptcy Code to help pay for its plant expansion, from 100 Gold Co., owner of the Cresson gold mine in allow the company to reorganise its busi- Mlb/y of nickel in matte to 150 Mlb/y, Colorado, the balance of which is held by ness and to restructure its US$29 million in scheduled for completion in the second half AngloGold Ltd. debt plus US$4 million in trade accounts of this year. ■ The Australian mining contractor Henry owed. Alta is also threatened with delisting ■ Denver-based Apex Silver Mines Ltd has Walker Group Ltd has achieved acceptances from its stock exchange, the US NASDAQ filed a shelf registration with the US representing 93.3% of the shares in its system. The chief executive of Alta, Robert Securities and Exchange Commission to takeover of another contractor, Eltin Ltd Pratt, said last week that the company has allow for the future offering of up to US$200 (MJ, April 16, p.286), and intends to pro- “insufficient cash flow to service its debt million in securities. The registration covers ceed to compulsory acquisition of the bal- and meet its other obligations”. Mr Pratt a two-year period. The proceeds from any ance once the offer closes on April 23. said that Alta is working to increase produc- such offerings would be used primarily in ■ The gold producer Cambior Inc. has con- tion and reduce costs, but it needs time for the development of the San Cristobal silver firmed market rumours that it has been dis- the fruits of these efforts to be realised. project in Bolivia, in conjunction with pro- cussing a possible merger with fellow- Day-to-day operations are to continue. Alta ject financing arrangements led by Barclays Canadian TVX Gold Inc. However, the TVX produced 14,725 oz of gold in the three Capital and Deutsche Bank Securities board has “declined Cambior’s proposal” months to December 31, 1998, at an average (MJ, January 29, p.71), but also for explo- and the negotiations have thus been termi- cash operating cost of US$248/oz. Its ration of the company’s other properties, nated. Griffon mine generated a positive cash flow, the acquisition of additional mining assets ■ The long struggle of Royal Oak Mines Inc. producing 10,340 oz at a cash cost of and general corporate purposes. against financial collapse moved a step clos- US$175/oz. The company reported a loss of ■ Shareholders in the Greek mining compa- er to failure at the end of last week, with the US$8.4 million for the whole of 1998, follow- ny Silver & Baryte have approved a two-for- appointment of an interim receiver by the ing a write down of US$9.3 million. ten rights issue at Dr5,000/share (US$1 = Ontario Court. The interim receiver will ■ The Indonesian nickel producer PT Dr303.17) to raise Dr11.2 billion (US$37 examine the possible sale of the company’s International Nickel Indonesia has received million). Silver & Baryte is the largest assets, but sale is not a foregone conclusion. approval from its minority shareholders to European producer of the industrial miner- The court refused to order an immediate borrow US$200 million from its parent, als bentonite and perlite. The company

Mining Journal, London, April 23, 1999 305 MINING FINANCE acquired Mykobar Mining Co. late last ing received acceptances representing 56% month, for an undisclosed price (reported of the total number of shares. The offer, People by the Financial Times to have been US$30 comprising A$0.10 in cash plus one share in million), with a view to combining Hargraves for every four in DMR, has been Mykobar’s bentonite mines on Milos, in the rejected by DMR’s directors (MJ, March 5, The World Bank has appointed Meg Taylor Aegean, with its own operations on the p.167). Hargraves reiterates that it will not as the first compliance adviser/ombudsman island. increase its offer, which closes next Friday for its International Finance Corp. (IFC) ■ Shareholders in Golden Knight Resources (April 30). and Multilateral Investment Guarantee Inc. have approved plans to merge the com- ■ One of the mining industry’s more colour- Agency (MIGA) divisions. Ms Taylor’s role pany with Repadre Capital Corp. Repadre ful characters, Jean-Raymond Boulle has will include helping to address the concerns will acquire all of the common shares in increased his interest in Diamond Fields of local communities that may be affected Golden Knight on the basis of 0.125 com- International Ltd (DFI) from 9.3% to 27% by IFC or MIGA sponsored projects. She mon shares in Repadre plus C$0.33 in cash through the purchase of nearly 10 million will advise the senior management of com- for every Golden Knight share held (MJ, share warrants from three institutional panies concerned on issues arising from January 15, p.30). The merger was expected investors at C$0.15/warrant. The warrants their social and environmental disclosures. to be completed by this Thursday, at which were immediately exercised for an equal Ms Taylor, a Papua New Guinean national, time shares in Golden Knight would be number of shares at US$0.40/share. Mr will report directly to James Wolfensohn, delisted from the Toronto Stock Exchange Boulle acquired the warrants through MIL the president of the World Bank. and the OTC Bulletin Board in the US. (Investments) SARL, a private company ■ Peter Vanderspuy is to relinquish the role ■ The independent directors of CIM which he owns, in three tranches. One of chairman of the Delta Gold NL, the com- Resources Ltd, a small Australian coal pro- tranche of 2.8 million came from Elliot pany he founded almost 20 years ago. Mr ducer, have recommended that shareholders Associates LP, another, of 4.3 million, was Vanderspuy will be replaced, as an indepen- accept the A$0.07/share takeover offer bought from Snyder Capital Management dent non-executive chairman, by Bernard made recently by RJB Mining plc of the UK LP and the third, of 2.8 million, came from Fisk. The change is a continuation of the (MJ, April 2, p.252). The decision follows Westgate International LP. DFI was formed separation of Delta Gold, now predomi- the receipt of a report from their indepen- in 1996 with the diamond assets of Diamond nantly an Australian gold producer and dent financial advisers, Grant Thornton, Fields Resources Inc., when the latter was explorer, from its Zimbawean platinum which found the offer to be “fair and reason- bought by Inco Ltd for its Voisey’s Bay nick- assets. These were floated last year in a new able”. el project. DFI’s main project is its marine company, Zimbabwe Platinum Mines Ltd ■ Hargraves Resources NL has declared its diamond concessions off the coast of (MJ, September 4, 1998, p.189), of which takeover offer for fellow-Australian junior Namibia, near Luderitz (MJ, March 5, Mr Vanderspuy is chairman and chief exec- mining company Diversified Mineral p.157), which Mr Boulle originally acquired utive. He will also remain on the board of Resources NL (DMR) unconditional, hav- for DFR when he was chief executive. ■ Delta Gold.

306 Mining Journal, London, April 23, 1999 MINING FINANCE

■ The chief executive of Vancouver-based chairman of the House of Commons geologist, to expand its metalliferous min- Gabriel Resources Ltd, Peter Guest, has left Standing Committee for Energy, Mines and ing and exploration capabilities. Dr Reed the company. Gabriel is exploring a number Resources. has 15 years’ experience in the exploration of mainly gold properties in Romania (MJ, ■ Warren Myers, a mining analyst with sector, most recently with the Rio Tinto March 26, p.205). The chairman of Gabriel, more than 25 years’ experience, has joined group. Frank Timis, will take on the additional Oak Hill Marketing Inc., a marketing and ■ Dimitris Constantinides and Elias role of chief executive, and Frank Wheatley corporate communications company, to Kedikoglou have joined the board of Thrace will become chief operating officer. help expand its range of services to include Minerals SA, the operator of the Sappes According to Mr Timis, Dr Guest “did not investment banking functions. Oak Hill gold exploration project in northern Greece. agree with the rest of the board that Gabriel offers assistance to mining companies seek- A bankable feasibility study of the project is should be domiciled and listed in Europe”. ing finance, and plans to expand into merg- due to be completed this June. ■ ■ Homestake Mining Co. of San Francisco er and acquisition advice, investor relations has appointed David Pleat to the position and associated areas. of chief financial officer. Mr Pleat is pro- ■ Dublin-based Glencar Mining plc has moted from the post of controller. appointed Philip O’Quigley as finance ■ The industrial equipment manufacturer director. Mr O’Quigley has been the compa- Ingersoll-Rand Co., which supplies a large ny’s senior financial officer for the past two number of mining companies, has made years. Glencar has also appointed Robert Herbert Henkel president and chief operat- Weinberg, a mining analyst and investment ing officer. banker, most recently with Deutsche Bank, ■ Eldorado Gold Corp. of Vancouver has as a non-executive director. promoted Paul Wright to the posts of presi- ■ Stephen Reed has joined the Oxford- dent and chief operating officer. Mr Wright based consultants Geoffery Walton as senior has been with Eldorado for three years, lat- terly as senior vice president operations. ■ Alan Johnson has been appointed presi- dent of The Coal Association of Canada, an industry body representing coal producers, users and transporters. Mr Johnson, a geol- ogist by profession, has 30 years of experi- ence in the Canadian mining industry. He also served as Member of Parliament for Calgary North from 1988 to 1993, and was

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