Personal copy; not for onward transmission

last year, amidst other write-downs and disposals made as its top management was replaced (MJ, July 3, 1998, p.15). BHP exits Hartley has a remaining book value of A$310 million, which now must be written off. Discussions are under way regarding Hartley the future of the Hartley project between the Government of Zimbabwe, Broken Hill Proprietary Co. Ltd unacceptable ore dilution. These BHP and Zimplats. The last-named (BHP) of Australia has reached agree- resulted in what BHP describes rather notes that it is now also free to pursue ment to sell its 67% interest in the loss- euphemistically as “financial under- Continued on p.414 making Hartley platinum project in performance”. Zimbabwe to its partner in the venture, Under the terms of the Hartley joint Zimbabwe Platinum Mines Ltd venture, BHP acted as operator and (Zimplats). BHP describes the pur- funded the US$290 million initial capi- Murrin Murrin chase price, which includes its 61.3% tal cost of the project, along with the interest in the Mhondoro platinum pro- working capital requirement. The con- gets approval ject, as “nominal”, and Zimplats puts centrator was commissioned in October the sum at “up to US$3 million”. 1996, followed by the base metals refin- The Murrin Murrin nickel-cobalt pro- Closing of the sale requires the agree- ery in June 1997. The first platinum ject in Western Australia has received ment of the Zimbabwean Government group metal concentrate was shipped the environmental go-ahead for its “on various matters”, but the govern- for toll refining in the UK in October Stage II expansion. The operation, ment has agreed to the basic deal. 1997. However, mine output reached owned 60% by Anaconda Nickel and Mining operations at Hartley are to only about one third of the planned 40% by Glencore International, is be suspended, but BHP will continue to 180,000 t/month of ore, and the work- expected to receive its Environmental provide management and funding to ing capital requirement had risen to Construction and Works Approval by place the mine and other assets on care US$143 million by this time last year the end of this month. and maintenance for a period of up to (MJ, May 29, 1998, p.423). Zimplats Stage I of the project enabled 20 months. BHP expects this to cost no elected not to pay for its share of devel- Murrin Murrin to process up to 4 Mt/y more than A$20 million. BHP’s opment costs (and would thus have of lateritic ore, producing 45,000 t/y announcement regarding its departure been entitled to receive only 9.9% of nickel and 3,000 t/y cobalt. Production from the project specifically cites any positive cash flow). commenced one month ago (MJ, May unstable ground conditions, causing BHP wrote down the value of its 14, p.356), five months behind schedule safety problems; loss of reserves; and Hartley investment by A$357 million after commissioning problems with its new pressure acid-leach (PAL) process- ing technology (MJ, March 19, p.190). The second stage will raise this capaci- ty to over 10 Mt/y of ore, yielding 115,000 t/y nickel and 9,000 t/y cobalt (MJ, August 7, 1998, p.105). Murrin Murrin has a resource of 211 Mt averaging 1.04% Ni and 0.08% Co, with a further 68 Mt of ore following the takeover of Abednego Nickel earlier JOURNAL this year (MJ, February 12, p.109). The project is one of three new nickel London, mines being developed in Western June 4, 1999 Australia which make use of the new Volume 332 PAL technology to exploit lateritic ore No. 8534 (this issue, p.423). ■

Underground stoping at the Hartley platinum mine in Zimbabwe. (Photograph courtesy of Zimplats Ltd.)

Mining Week Industry in Action Technology Today Focus and Mining Finance p.413 BHP walks away from p.419 Billiton takes out base p.422 New mill drive from Comment p.427 Antamina partners Hartley; Environmental plan for metals option; Bonanza grades at ANI; Novel slag treatment p.423 Western Australia: gather cash; Novel approach for Murrin Murrin expansion Martinetas; Karelia offers PGM process; New lift for shaft nickel in a nutshell; A different Kwale funding from Tiomin; approved; Kumtor supports project; Peru to dispose of sinking; Yuasa moves into job. Codelco profit collapses, Duiker Kyrgyzstan; Spanish coal ‘aid’ Iscaycruz holding; Israel Europe; Fog cuts down dust; posts profit, Marsfontein boosts approved; EPA issues methane magnesium restructuring; Transmission system boosts Mineral markets SouthernEra; Real del Monte collection guide; Mining M&A Moroccan base metal productivity; Fuel-control system p.426 Base metals retreat faces insolvency; Reynolds starts round up. development; Akrokeri expansion; for Century. levels out; Gold slips lower; Asian on acquisition trail; Placer Rio boosts holding in coal crisis cuts into iron ore; Producer completes takeover; Orogen prospect; Unofficial action delays price proposal for cobalt. increases Porgera interest; Tin Alma; Candelaria faces removal producer realises profit from cost; Samancor to rebuild option closure. furnaces. Established 1835 ISSN 0026-5225 MINING WEEK

er, and several established platinum produc- recently, the changeover is unlikely to have a BHP exits Hartley ers are known to have evaluated the project significant impact on day-to-day operations. and rejected it. Problems at Hartley have “No changes have actually taken place yet”, Continued from p. 413 been many and varied, and although some he said, “and Cameco’s master agreement is have been resolved, others remain outstand- with the Kyrgyz Government, with discussions with “third parties . . . to ing. One key issue is understood to be the KyrgyzAltyn holding the country’s stake in maximise the value of platinum develop- difficulty in following the payable portion of Kumtor on behalf of the government”. ment in Zimbabwe for all affected parties”. the orebody, with a consequent problem in Despite its remote location, Kumtor’s Zimplats was spun off last year by its par- maintaining the head grade. The future of production last year was achieved at a cash ent Delta Gold NL, via the distribution of the Hartley mine itself thus looks bleak. cost of US$179/oz. The open-pit operation 49% of the shares in Zimplats to sharehold- However, Zimplats appears keen to devel- is currently handling around 15,000 t/d of ers in Delta, to separate the latter’s platinum op the promising Ngezi project, and one ore, with reserves restated by Cameco at the interests in Zimbabwe from its gold assets, obvious option would be to incorporate the end of 1998 at 28.3 Mt at a grade of 4.88 g/t which are located mainly in Australia. The surface infrastructure at Hartley, in partic- gold, equivalent to 4.45 Moz. Gold recovery platinum assets include the 33% interest in ular the expensive smelting and base metal involves flotation to obtain a pyrite concen- Hartley; the Ngezi project; a 38.7% interest refining facilities. Equity investors are trate, with both the concentrate and the in the Mhondoro project; and the Selous pro- unlikely to be interested in such a high pro- flotation tailings being leached in separate ject. All of these properties lie along a rough- file loss-maker as the Hartley mine, but circuits. Bullion is smelted on-site, before ly 100 km stretch of the essentially north- they may be interested in a simpler mine, being refined at the national refinery at south running Great Dyke, just west of the such as Ngezi, if it can be demonstrated to Kara Balta, near Bishkek. capital Harare. Apart from Hartley, Ngezi is be technically sound. “Third parties”, pre- KOC is just in the process of commission- the most advanced of the projects. A feasibil- sumed to be other mining companies, may ing a US$4.5 million waste-water cyanide ity study, envisaging a surface mining opera- be similarly interested in participating in destruction plant, designed to remove any tion, is scheduled to be completed by the end Ngezi, or they may even consider using the traces of residual cyanide from tailings pond of this month (MJ, April 30, p.313). smelting facilities at Hartley to treat con- water before discharge into the Kumtor This week, Delta reiterated its intention centrates from elsewhere in the region. ■ River. It is also carrying out a major in-pit not to provide any guarantees or other forms diamond drilling programme aimed at bet- of financial support to Zimplats, consistent ter definition of ore blocks within the exist- with its strategy that the latter must oper- Kumtor: underpinning ing pit outline, and is planning further ate as an independent company. However, the Kyrgyz economy drilling outside the current pit area for later the chief operating officer of Delta, Terry this year. As Mr Homeniuk noted, “given Burgess, said at the time of the Zimplats One of the smaller of the nation states to the current gold price, reserves remain an flotation last year that a public offering emerge from the collapse of the former issue at Kumtor. However, considering the would be made some 12-18 months after- Soviet Union, mountainous Kyrgyzstan circumstances, we are in pretty good shape. wards to raise funds for projects such as achieved its independence with little in the The real challenges are the gold price and Ngezi, targeting investors in Europe and way of an economic endowment. It was a our ability to control costs”, he added. ■ South Africa. Mr Burgess said that Delta vital supplier of both antimony and mer- would not participate and would thus be cury during Soviet times, but neither com- diluted. Delta retained a 51% interest when modity is in particular demand today. EC approves State aid it floated Zimplats to prevent the triggering Similarly, its position as a major uranium for Spanish coal of pre-emptive rights, but now that Zimplats supplier, albeit using ores and ISP concen- has acquired BHP’s interests in Hartley and trates from Kazakhstan, is less certain now. Spain has been given the go-ahead by the Mhondoro, this obstacle has been removed. Nonetheless, mineral production remains European Commission to pay Pta178.3 bil- Comment: BHP has made no secret of its a major component in the Kyrgyz economy, lion in State aid this year to modernise and desire to sell its interest in Hartley, commis- although the emphasis has changed. Today rationalise its ailing coal industry. The EC sioning a leading investment bank as advis- one operation – the Kumtor gold mine, has a watching brief on large payments of located at an elevation of around 4,000 m in State aid in Europe and has the authority to LEADING INDICATORS the southeast of the country – is largely demand that they are halted, should it con- underpinning national economic growth. sider the payouts to be subsidies, pure and Change High- Year’s Its effect on the Kyrgyz economy is clear to simple. However, where aid can be shown to on week Low Max/Min Share Indices June 2 (%) (%) see from recent GDP trends. In 1995, be assisting in the restructuring of an indus- FT Ordinary 3,979 2.7 88 4,123-2,913 US Dow Jones 10,578 –1.2 87 11,000-7,742 Kyrgyzstan’s GDP shrank by 5.4%. In try that might falter without injections of FT Gold Mines 824 –0.5 21 1,278-702 1996, the year Kumtor opened, it grew by public money, then the EC can authorise it. Australian All Mining 596 0.0 52 666-520 South African Gold n/a n/a n/a 1,311-780 7.1%, followed by a further rise of 9.9% in In this case, the EC ruled that Spain’s Toronto Met/Min 3,479 –0.7 73 3,811-2,596 Nikkei Dow 16,418 1.2 86 16,947-13,071 1997. Economic slowdown last year would coal aid package was “in conformity with its Hang Seng 12,459 0.4 83 13,586-6,859 have resulted in negative GDP growth once opinion on the (European Union) plan to James Capel Indices June 2 (100 on 1/1/89 except*) again, but for Kumtor’s contribution of modernise, rationalise, restructure and Global Base Metal 140 –0.4 79 153-93 645,161 oz of gold. reduce the activity of the coal industry con- Global Diversified Mining 139 –0.7 77 152-94 Global Gold Ex S Africa 64 –1.5 21 93-56 Kumtor is owned by a joint venture cerning the period 1998-2002”. It added Global Gold 57 –1.0 18 83-51 Global Mining 109 –0.8 72 121-78 between the Kyrgyz Government (66.7%) that the Spanish plan also matched Smaller Mining Companies 45 –2.6 37 53-40 and Canada’s Cameco Corp. (33.3%), and is “the general and specific objectives of †North American Base Metal 188 0.9 82 202-122 North American Gold 72 –0.9 19 108-64 run by Cameco’s subsidiary, Kumtor Decision 3632/93/European Coal & Steel Latin American Mining* 172 –3.6 58 209-120 Latin American (Ex CVRD)* 122 –5.1 47 158-90 Operating Co. (KOC), under a ten-year con- Community, establishing EC rules for State †Other Metals/Minerals 125 –1.4 87 130-91 tract. Earlier this year, the Kyrgyz aid to the coal industry”. The reason for this †Global Coal Mining 183 –0.5 93 188-116 *100 on 1.1.90 Government announced its intention to is that the package actually represents a †Rebased by Mining Journal replace Cameco’s partner in the joint ven- reduction in aid to the Spanish industry, Commodity Prices June 2 Gold (London) $266.50 –1.1 0 $297-266.50 ture, KyrgyzAltyn, with the State Property which Spain’s conservative government Copper (LME) $1,383 –5.0 7 $1,696-1,361 Aluminium (U.S. prod.) 61.50c 0.0 50 68-55 Fund although, as KOC’s president, Len would like to see exposed to market forces. Brent Blend (dated) $14.51 –3.5 71 $16.55-9.44 Homeniuk, told Mining Journal in Bishkek The government currently plans to slice 4%

414 Mining Journal, London, June 4, 1999 MINING WEEK off the coal-mining subsidies budget every accrue. Taking modern longwalls as an year, and a spokeswoman has said that if the More uses for coalbed example, a minute of downtime can cost mines cannot survive without this help from between US$200 and US$400, so produc- government, “they will have to close methane tion time lost as faces are shut down because because they are not competitive”. of high methane levels can prove expensive. Spain’s coal mining industry is concentrat- Following the publication of its report on The report takes ventilation, develop- ed in the north, in Asturias and Castille coalbed methane (CBM) storage in aban- ment, reserve, safety and dust issues into Leon. Madrid’s aid package breaks down as doned mine workings (MJ, February 12, consideration, together with “worker com- follows: Pta54.5 billion (ᇾ328 million) to p.95), the US Environmental Protection fort” – an increasingly important aspect of assist operations; Pta66.5 billion (ᇾ399 mil- Agency (EPA) has now produced a guide- mine design. lion) for the reduction of activity; Pta44.1 book* on methane drainage for under- Mathematical modelling in the report billion (ᇾ265 million) to cover exceptional ground coal mines. Prepared by Prof. Jan shows that companies can theoretically costs, including additional social expenditure Mutmansky of Pennsylvania State achieve substantial improvements in the to assist workers who lose their jobs “as a University, the handbook is designed to net present value of their operations result of the measures to restructure, ratio- assist coal mine operators in assessing CBM through reduced ventilation and other costs nalise, modernise and reduce the activity of resources as a by-product of mining, rather by planning to drain and capture CBM. the Spanish coal industry”; plus an extra than just as a liability. These models do not include, however, the Pta13.1 billion (ᇾ78 million) towards closure According to the EPA, mining companies ability to use or sell the methane produced costs. A report from Brussels says that in can benefit from harnessing the methane as a by-product, an asset that the report taking its decision the EC “took particular potential of their operations in several describes as having very high potential eco- account of the social and regional conditions ways. Methane can be collected to reduce nomic returns if ideal conditions are avail- under which the process of restructuring the the costs of ventilation, downtime and over- able. High-Btu gas, with a methane content Spanish coal industry is taking place”. all production, it can be used as a local ener- of over 97%, can be sold to pipeline net- Last year, Spain produced 5.86 Mt of gy source to provide heating for buildings works, used as feedstock for chemicals pro- anthracite, 6.13 Mt of bituminous coal, 3.92 and coal drying and, if the gas is sufficiently duction or liquefied for use as automotive Mt of sub-bituminous coal and 9.75 Mt of pure, it can be compressed and marketed fuel. Lower-quality gas can be used as fuel lignite. Hard coal output was down by through existing natural gas pipelines, so for power generation. ■ almost 11% and the workforce reduced by making a direct contribution to company *‘Guidebook on coalbed methane drainage for underground about 4,800, or some 21%. Government profits. coal mines’. Contact Roger Fernandez at the Environ- payments to companies to compensate As well as addressing the mechanics of mental Protection Agency’s Coalbed Methane Outreach Program. Tel: (+1 202) 564 9481. Fax: 565 2077. them for reducing their output amounted to extracting and capturing CBM, the report E-mail: [email protected] World Wide Web: Pta85.5 billion. ■ looks at the economic benefits that can http://www.epa.gov/coalbed

416 Mining Journal, London, June 4, 1999 MINING WEEK

valued at US$643 million, plus major reor- 1990-98 totalled US$1.8 billion, and includ- Movers and shakers in ganisations of its assets, including the merg- ed the purchase, for US$330 million, of a er with Minorco to bring its total invest- 51% stake in El Abra in Chile. the 1990s ments since 1990 to US$2.6 billion. Two other US companies, Battle Barrick Gold made three large invest- Mountain and Homestake, naturally con- The Nova Scotia-based Metals Economics ments over the 1990-98 period worth a total fined their investments to their own sector, Group (MEG) calculates that, since 1990, of US$2.5 billion, the largest being the gold, the former spending a total of about 124 base metals companies and projects, US$1.6 billion acquisition of Lac Minerals US$1.6 billion, of which some US$1.5 mil- and 129 gold companies and projects, each in 1994, and the second largest being the lion was in shares issued to acquire Hemlo valued at US$25 million or more, changed US$800 million purchase of the Pierina gold Gold in 1996. Homestake was involved in hands for a total worth US$48.2 billion. The project in Peru. BHP’s total investment for five major acquisitions, for a total invest- most active year was 1996 when total trans- the period was also around US$2.5 billion, ment of about US$1.5 billion. The largest actions worth more than US$12 billion were the major transaction being the purchase in transaction was the US$640 million paid in completed. The quietest year for acquisi- 1995 of Magma Copper for some US$2.4 bil- shares to acquire Plutonic Resources in tions activity was 1991 when total transac- lion (including debt assumption of US$600 Australia in 1997. tions amounted to US$1 billion. million). MEG notes that acquisition and dollar Detailing the findings in the most recent Newmont Mining’s acquisition total was volume fell substantially during 1998, with edition of its bi-monthly publication around US$2.2 billion, and largely reflects uncertainty about the long-term direction Strategic Report*, MEG identifies the nine the US$2.1 billion purchase of Santa Fe gold of commodity prices appearing to have kept largest investors as Inco, Anglo American, in 1997. Placer Dome’s total investments of most potential investors in check. Only 14 Barrick Gold, BHP Minerals, Newmont around US$2.1 billion comprise nine sepa- base metals and 14 gold investments are Mining, Placer Dome, Cyprus Minerals, rate investments exceeding US$25 million, reported for 1998 (with individual market Battle Mountain and Homestake. Between by far the largest being its purchase of values exceeding US$25 million) for a total them, these companies completed 40 sepa- Getchell Gold in Nevada late last year for value of US$4.6 billion. The largest gold rate gold and base metals acquisitions with US$1.1 billion. deal was Placer Dome’s acquisition of a total value of more than US$20.7 billion in The largest investment by Cyprus Getchell, and the largest base metals trans- cash and shares. Minerals was its US$1.2 billion merger with action was in the zinc sector, being the Inco was the largest investor through Amax in 1993. In addition to acquiring cop- US$228 million cash purchase of Savage its acquisition of the Voisey’s Bay nickel per, molybdenum and gold, this deal Resources by Pasminco. ■ deposit in Canada, completed in 1996 for a involved the acquisition of significant coal total consideration of US$3.4 billion. Anglo assets, the majority of which are in the *Further information from: Metals Economics Group, PO Box 2206, Halifax, Nova Scotia B3J 3C4, Canada. American was consistently active through process of being sold (MJ, May 21, p.373). Tel: (+1 902) 429 2880. Fax: 429 6593. E-mail: the survey period, with five acquisitions The company’s total investments through [email protected]

Mining Journal, London, June 4, 1999 417 INDUSTRY IN ACTION

The balance of the holes were from the company’s Vueltas del Rio of mineralisation at several prospects drilled at the West Zone, where lower- gold deposit, which it is presently on the property: Exploration grade gold mineralisation was developing (MJ, December 4, 1998, intersected. Pangea considers these p.451). The 13-hole programme Prospect Interval Au results to be sufficiently encouraging (average depth 40 m) was designed to (m) (g/t) Billiton continues to justify its ongoing exploration investigate the down-dip extension of Finch 93-98 2.25 programme, which will include mineralisation found by surface Osprey 40-52 1.80 exploration by proxy diamond drilling and metallurgical trenching, with the following better and 54-70 1.47 London-based Billiton plc has struck testing. The company confirmed gold results: Albatross 67-72 1.34 another deal with an exploration mineralisation at Tulawaka late last Cuckoo North 10-19 2.77 junior, funding its exploration by a year (MJ, November 27, 1998, Hole Interval Au Ag Zn share placement, in return for the p.427). The balance of ownership of (m) (g/t) (g/t) (%) Glengarry geologists have now option to earn into any deposits found Tulawaka is held by Minières du Z-RC-08 13.5-28.5 1.08 12.10 7.23 extended the known areas of oxide as a result of the work. Billiton will Nord Ltée, with Pangea as operator. incl. 13.5-19.5 2.48 26.25 14.09 mineralisation over a semi-continuous take a C$400,000 position in Rubicon Z-RC-09 22.5-31.5 4.27 10.66 4.14 strike-length of 10 km within the Minerals Corp. by purchasing shares South African incl. 27.0-30.0 11.32 19.00 2.24 property. The Larranganni property and warrants in the Vancouver-based is a joint venture between Glengarry junior. A separate option agreement exploration The mineralised area at El Zapotal (52% and manager) and Tanami allows Billiton to select one of arrangement has a strike-length of about 2 km, Gold NL (48%). Rubicon’s base metals properties in of which the recent drilling Separately, Glengarry reports that Newfoundland, in which it has the Gold Fields Ltd and Kalahari programme tested 600 m x 120 m. the Queensland Department of Mines option to earn 70% interest by Goldridge (Kalgold) have agreed to Mineralisation occurs within silicified and Energy has approved 16 funding the property to commercial an exploration joint venture to sedimentary and intrusive rocks, in exploration permits covering a production. explore for gold mineralisation in the sheeted veins and breccia/stockwork continuous area of about 25,000 km2. The properties in question are Kraaipan Schist belt in South Africa. zones. The area is located about 350 km Rubicon’s Point Leamington and Under the terms of the agreement, south of Mt Isa, and is interpreted to Lewis Lake base metals holdings. The Gold Fields would earn up to a 51% High-grade gold at be prospective for base metal company acquired the Point interest in the Khunwana property by mineralisation. Leamington property from Noranda funding US$645,000 of the Martinetas late last year (MJ, April 30, p.312). exploration programme. The Yamana Resources Inc., fresh from Karelia tenders Once Billiton has bought the Rubicon Khunwana property covers 550 km2, reporting “bonanza” silver grades at shares, it will sign the option situated south of Kalgold’s existing its Bacon property last week (MJ, PGM property . . . agreement to acquire a 50% interest mining lease at Kraaipan. May 28, p.396), has intersected very Russia’s Interfax news agency reports in either of the two properties, in high-grade gold mineralisation at its that the Russian republic of Karelia return for paying Rubicon Enigma variations Martinetas gold-silver property in has tendered the right to investigate C$800,000, in two tranches of Argentina. The company has the Lukkulaisvaara platinum group C$400,000 each, to use in exploration Australia’s New Hampton Goldfields completed a 40-hole reverse- metals (PGM) mineral occurrence, in of the properties. Once the 50% (NHG) has completed a “major circulation (RC) and diamond (D) the Loukhi district in the far interest has been earned, Billiton can drilling effort” at its Enigma gold drilling programme at Martinetas, northwest of Russia. The licence to earn a further 10% by funding a property in Western Australia in the concentrating on testing high-grade explore the PGM mineralisation feasibility study, and 10% more by March quarter of this year. The vein-swarm targets, with the would carry the expectation of funding the property to commercial company completed 14 reverse- following better results: development of a mine. The area, production. circulation drill-holes and 82 air-core located about 240 km from holes, intersecting results such as: 32 Hole Interval Au Ag Kandalaksha, has known mineral MMAJ in Mongolia m at 23.1 g/t Au from 175 m, 26 m at (m) (g/t) (g/t) occurrences with average PGM 10.33 g/t from 154 m, 18 m at 5.91 g/t RC 39 3.5-4.0 23.66 0.6 grades of 1.54 g/t Pt and from 0.03 g/t survey Au from 188 m and 17 m at 9.97 g/t RC 45 0.0-30.0 1.27 1.1 Pd to 5.6 g/t Pd. The Metal Mining Agency of Japan Au from 64 m. The property contains incl. 1.5-2.5 11.46 0.9 (MMAJ), is to commence a geological the Enigma and Phobos mineral D 73 28.0-33.0 731.62 464 . . . Kazakh survey of selected areas of Mongolia, occurrences, and NHG geologists incl. 30.2-31.0 1,594.55 1,780 targeting copper and gold mineral interpret that a supergene gold D 58 1.5-48.5 6.68 9.5 exploration licences deposits. The two-year survey, anomaly has been found over 600 m Interfax also reports that scheduled to begin this month, will long and 150 m wide, the supergene Yamana controls a total of 202 km2 Kazakhstan has approved additions cover the northern regions of ‘blanket’ is about 10 m thick, and it in three properties in the area, one of to a list of exploration licences to be Khuvsul, Zavkhan, Arkhangay and lies almost horizontal at about 55 m which is Martinetas. The area is tendered this year. The Kazakhstan Bulgan. Satellite imaging and below surface, remaining open in one underlain by a circular volcanic Investment Agency is preparing to geochemical surveys will be used to direction. complex of 12 km in diameter, which offer the Sholkyzyl gold property in identify potential targets, with A higher-grade gold anomaly exists Yamana geologists interpret as being the Almaty region, the Kokpety, relevant skills taught to the at the Enigma prospect, over an area a caldera. Epithermal mineralisation Karakungei, Karyerny and Mongolian Mineral Resources of 150 m x 50 m. This anomaly is is concentrated around volcanic Kendyrlyk coal properties in east Agency. interpreted to have been caused by domes breccias and vein systems. The Kazakhstan, and the Sayrtum several steeply-dipping bedrock gold mineralisation intersected by the manganese occurrence in Karaganda. mineralisation zones, one of which recent drilling is open in all Exploration and development Tulawaka assays (the Main Lode), varies from 8 m to directions. licences are to be offered for the Canadian junior Pangea Goldfields 20 m in width, with a minimum strike The company intends to bring the Zhaksi group of manganese properties Inc. has completed a 4,800 m length of 85 m. Drilling to date has Martinetas property to prefeasibility in Akmola region and the Zhaisan reverse-circulation drilling concentrated on the Main Lode. as soon as possible. copper property in Zhambyl, and a programme at its 70%-owned Enigma and Phobos are located at the development licence for the Tulawaka gold property in Tanzania. north end of a 4 km-long belt of felsic Lengerskoye coal property in south Pangea concentrated the bulk of the and sedimentary rocks. A detailed Larranganni results Kazakhstan. Applications will be drilling in the East Zone of the aeromagnetic survey has recently Perth-based Glengarry Resources NL accepted until June 20. prospect, with the following better been completed, and the drilling has received initial results from the results: programme is continuing. 1999 drilling programme at its Larranganni gold property on the Blackhawk results Hole Interval Au Honduran discovery border between Western Australia California-based Intergold Corp. has (m) (g/t) and the Northern Territory. The received a remarkable set of assay TRC-91 53-63 16.40 Toronto-based Geomaque reverse-circulation and rotary air results from drilling completed at its and 67-87 16.25 Explorations Ltd has completed a blast holes completed to date Blackhawk gold-silver property in TRC-100 27-49 14.59 preliminary shallow drilling represent about 20% of the total Idaho. The company has sampled TRC-103 14-24 18.72 programme at its El Zapotal gold planned, and Glengarry reports that each of the eight 152.5 m holes drilled TRC-104 42-52 12.23 prospect in Honduras, situated 2 km the results confirm significant zones to date, in about 1.5 m sections, and

Mining Journal, London, June 4, 1999 419 INDUSTRY IN ACTION has published the following better magnesium salt deposits, and the of Australia’s identified vanadium Hammerdown gold project in results: subsequent extraction of magnesium resources. The company has been Canada. The two companies signed a metal, using proven technology and evaluating oxidised material letter of intent in the middle of last Hole Interval Au Ag the energy resources within the area. overlying the shales, with one block year agreeing to develop the property, (m) (g/t) (g/t) The project would need 120 MW of containing an inferred and indicated located in the Springdale-King’s 98C-25 0-152.5 6.68 3.05 power, for which a hydroelectric resource of 80 Mt of mixed limestones Point mining district of 98C-14 0-152.5 1.88 8.81 facility would be required. A pre- and vanadium-rich clays to a depth of Newfoundland (MJ, July 31, 1998, 98C-16 0-152.5 2.60 4.83 feasibility study of the energy project 20 m. p.77). According to MGR, 98C-22 0-152.5 2.06 7.10 has been prepared by SNC-Lavalin According to Fimiston, this McWatters based its decision solely 98C-8 0-152.5 1.95 6.31 Inc. represents a resource of 200,000 t of upon the fact that it is currently 98C-19 0-152.5 2.30 6.96 The main project’s economics are contained vanadium pentoxide, expanding two of its existing modelled on a 60,000 t/y magnesium sufficient for 20 years’ production operations, and therefore cannot The company reports that the alloy production rate, and the plant is starting at a rate of 5,000 t/y, or 8% of commit to the development of a new drill-holes contain sections with expected to cost US$514 million. The current world production. Initial project until sometime in 2000. higher-grade mineralisation than the location of the facility is proposed as estimates suggest a capital cost of McWatters has spent about average for the complete core. the port of Pointe Noire. A$50 million to install a shallow open- C$100,000 on the project, including Intergold geologists believe that the pit operation, with the recovery of due diligence, which resulted in an mineralisation is syngenetic, hosted Profits from the Dead vanadium-bearing clays providing increase of the gold resource estimate by a sequence of rhyolite lavas, with feed for leaching. Testwork has by 2% to 458,000 t at 17.32 g/t Au. gold homogeneously disseminated Sea? indicated that alkaline pressure- throughout the sequence in very fine Israel Chemicals Ltd (ICL) has leaching can give recoveries of 85- Akrokeri-Ashanti particles (generally 1 micron). The bought the 65% of Dead Sea 90%, using feed material grading company has delineated gold Magnesium (DSM) previously held around 2% V2O5. shifts plant and mineralisation over a 1.8 km x 600 m by its subsidiary, Dead Sea Works A scoping study on the project is expands area. and, according to ICL’s chairman, scheduled for completion by the end The company stresses that the Yoseph Rosen, DSM could become of this month, Fimiston reports. Toronto-based Akrokeri-Ashanti procedure used to assay samples from profitable as early as next year. The Gold Mines Inc. has completed the the cores, developed specifically for car-maker, Volkswagen, holds the Boumadine transfer of the processing plant at its the Blackhawk samples, has been other 35% of DSM, and has approved gold mine in Ghana, at the same time independently evaluated by Denver- the transaction, which will probably development as increasing capacity. The plant was based Dames & Moore, which take until the end of the year to The Boumadine polymetallic deposit shut down on May 9 and moved from concluded that results are repeatable, complete. in Morocco, located in Errachidia, the Easaase property to the Jeni and measurements by the assayer are, Operating losses at Dead Sea 365 km southeast of Rabat, is to be property. The facility was then on average, accurate. Works reached US$21.6 million in developed by a unit of the ONA reassembled over a period of 12 1998, and the transfer of DSM to ICL Group. Compagnie Minière de days, with an expansion to raise will allow the company to concentrate Guemassa has signed an agreement capacity to 48,000 oz/y of gold. The on its potash operations. It lost with the state Bureau de Recherches plant produced 38,122 oz of gold in Development control of another operating et Participations Minières (BRPM) 1998. subsidiary, Dead Sea Bromine, several to take the deposit to production by years ago. Meanwhile, DSM is 2002. The feasibility study of the Rio Tinto increases Peru plans Iscaycruz expected to produce between 25,000 t project is expected to take about 30 and 27,000 t of magnesium this year, a months to complete, and the capital Clermont stake sale substantial increase from 1998’s cost is US$3.2 million. Rio Tinto plc has paid Arco Resources The Peruvian Government has output of 15,100 t. Exploration work at Boumadine Ltd US$14 million for the latter’s decided to sell its remaining 25% has been going on for many years 19.5% stake in the Clermont thermal holding in the country’s largest (MJ, November 30, 1990, p.407), and coal prospect in Queensland. The private zinc producer, Iscaycruz. North restructures the deposit is estimated to contain move brings Rio Tinto’s holding in Majority-owned by Glencore, Australia’s North Ltd has announced reserves of 1.9 Mt at a grade of 2.67 the property to 55%, with Iscaycruz produced 97,900 t of zinc a restructuring programme that will g/t Au, 189 g/t Ag and 0.035% Zn and Mitsubishi holding the other 45%. last year, markedly higher than the lead to the loss of 120 management 0.007% Pb. Clermont has an estimated resource 86,000 t achieved in 1997. Output in positions at its corporate of 192 Mt of coal, and is expected to the first four months of 1999 headquarters and in its Australian Alga china clay be developed when the nearby Blair continued the upward trend, reaching operations. The company announced Athol coal mine, operated by Rio 34,580 t (1998: 27,850 t). March-quarter net profits down from development Tinto unit Pacific Coal, is depleted. According to a spokesman for the A$37.9 million to A$9.8 million on a Interfax reports that Iran Industrial Rio holds a 71.5% stake in Blair state mining company, Centromin, year-on-year basis, with its Canadian Design Co. intends to invest about Athol, after purchasing Arco’s stake the decision to sell the government’s iron ore operations a major US$13.5 million in a china clay in the mine late last year (MJ, holding has already been made contributor to the slide (MJ, May 14, enrichment plant project in western December 25, 1998, p.502). although no date has been fixed. Mid- p.367). Kazakhstan. The facility is planned 1999 is one possibility. However, given A four-month cost review carried to be built at the Alga Chemicals Electric power for that only one bid was received for the out earlier this year identified annual Plant, near Alga, which is operated by Cerro de Pasco mine when it was pre-tax savings of A$130 million, Zemlyane, a Kazakh company. Antamina auctioned last week, from local the company reported, at the same Abai Botanov, a Zemlyane The leading private Peruvian power company Volcan (MJ, May 28, time predicting better sales volumes manager, is quoted by Interfax as generator, Edegel, has signed a p.398), the timetable for Iscaycruz for its iron ore operations and its saying that the total cost of the contract, estimated to be worth some remains uncertain. 68%-held uranium producer, project is estimated to be US$16 US$400 million, to supply 120 MW of Energy Resources of Australia in million, and construction is scheduled energy to the Antamina copper-zinc Kouilou feasibility the coming quarter. The restructuring to be completed about 36 months mine over a 15-year period. Antamina includes the formation of a 12-strong after financing is arranged. The raw is currently being developed by a study positive North Group executive committee kaolin feedstock for the plant would consortium consisting of Rio Algom, Toronto-based Magnesium Alloy as the senior decision-making come from the Yarovslavskoye Teck Corp., Noranda and Mitsubishi Corp. (MAC) reports that the body. deposit in Aktyubinsk. Corp. (MJ, April 2, p.237). feasibility study of the Kouilou The Antamina project is regarded magnesium project in the Republic of Fimiston outlines McWatters drops in Peru as being a key to stimulating Congo has been completed by economic growth in the country, with Salzgitter Anlagenbau GmbH, with vanadium resource Hammerdown annual output of 600 Mlb of copper positive results. The study had A Perth-based junior, Fimiston Vancouver-based Major General and 360 Mlb of zinc commencing in originally been intended as a pre- Mining NL, has released details of its Resources Ltd (MGR) reports that 2002. feasibility, but had recently been current work on the Julia Creek oil- McWatters Mining Inc. has notified Overall investment costs in the upgraded (MJ, May 21, p.381). It shale deposit in central Queensland, it that McWatters will not be mine and its infrastructure are proposes the solution-mining of which also contains an estimated 85% proceeding with the acquisition of the reported to be around US$2.3 billion.

420 Mining Journal, London, June 4, 1999 INDUSTRY IN ACTION

Karpa Springs appeal producer, with the Jajarm refinery produced 92,614 t of alumina, 25,771 Mining Development, Dundee. Mrs scheduled for completion this year t of aluminum and 189,000 t of Moira McKinlay, New evidence has convinced Western (MJ, May 21, p.382). bauxite, according to China Metal CEPMLP/University of Dundee, Australia’s Attorney General to allow Market. Dundee, DD1 4HN, Scotland, UK. an appeal on behalf of the three Record Iranian Tel: (+44 1382) 344303. Fax: 345854. prospectors convicted of salting Japan to continue E-mail: [email protected] charges in the Karpa Springs gold copper output Website: www.dundee.ac.uk/cepmlp scandal in 1993. Peter Foss approved Iran produced a record 130,000 t of metal exports ■ July 27-28, Mining Sector Policy the submission by the lawyer for copper in the year to March, nearly Japan’s largest zinc producer, Mitsui Seminar, Mireme/World Bank, Clark Easterday, Len Ireland and 24% higher than in the comparable Mining & Smelting, is to continue Mozambique. Tomás Rafael Estêvao, Dean Ireland, and the appeal is likely period in 1997/98. The National supplying copper and zinc to export National Director, National to be heard before the end of the year. Iranian Copper Industries Co. markets as domestic demand Directorate of Mines, Ministry of The three men were sentenced to (NICICO) smelted 450,000 t of continues to be weak. The company Mineral Resources and Energy, three and a half years in jail in 1993 concentrates during the year, 70,000 t exported around 20,000 t of zinc and Maputo, Mozambique. Tel: (+258 1) after being found guilty of conspiracy of which were imported from Chile 34,000 t of copper in the year to the 42 00 24. Fax: 42 71 21. E-mail: to defraud and of ten counts of false and Armenia. end of March, and expects similar [email protected] practice (MJ, August 20, 1993, Copper exports earned Iran US$96 volumes for the current year. ■ August 20-22 , III International p.121). They served 13 months of the million in foreign exchange, according Meanwhile, Nippon Mining is Conference on Precious Metals sentence. to NICICO, with Saudi Arabia, anticipating sales of around 30% of Metallurgy and IV National Conference Turkey, India and China its principal its copper production in export on Gold and Silver Metallurgy, Oruro, customers. The country plans to markets this year, having exported Bolivia. Sociedad de Ingenieros de Production double its copper production within 34% of its output in the year to Bolivia, Casilla 572, Oruro, Bolivia. three years, with the Australian March. The company sold 129,300 t Tel: (+591) 52 56310. Fax: 52 60008. Government having provided a of copper during the year, mainly to E-mail: [email protected] US$47 million credit to enable it to customers in East Asia, markedly ■ August 29-31, Fertiliser AsiaPacific Strike delays expand capacity at a smelter in higher than the 80,000 t it exported in Conference and Exhibition, aluminium southern Iran. Copper output has 1997/98. Melbourne, Australia. John French, continued to rise since the year end, Total Japanese exports for 1998/99 Conference Director, British Sulphur smelter . . . with the production of 21,000 t over reached a record 290,000 t, with zinc Publishing, 31 Mt Pleasant Rd, Alcan Aluminium’s US$1.6 billion the last two months representing a exports of 46,700 t. Domestic zinc London WC1X 0AD, UK. Tel: (+44 Alma smelter should come on stream further 5% increase over the same demand is predicted at 620,000- 171) 903 2435. in late 2000 (MJ, March 26, p.214). period last year. 630,000 t for this financial year, little E-mail: [email protected] However, construction work on the changed from last year but ■ September 6-8 , CEM ’99, project, which will add 375,000 t/y of Cost threat to significantly lower than the 730,000 t International Conference on capacity and will replace the consumed two years ago. Mitsui and Emissions Monitoring, Warwick, company’s existing 75,000 t/y Isle- Candelaria Nippon Mining are currently UK. CEM ’99 Conference Office, Maligne smelter, has been slowed Phelps Dodge is facing the possibility carrying out a due diligence study on Source Testing Association, 101 following a demarcation dispute of a very large cost liability at its the South Korean company, LG Bancroft, Hitchin, Hertfordshire SG5 between steelworkers and mechanics 80%-owned Candelaria copper mine Industrial Systems’ copper smelting 1NB, UK. Tel: (+44 1462) 457 535. at the site. Alcan has confirmed that in Chile. Minera Candelaria bought and refining unit, the subject of a Fax: 457 157. E-mail: CEM99@s-t- the dispute is having “a major some land near to the mine from a recently announced joint-venture a.org impact” on the timetable for the Chilean vendor, paying US$150,000 agreement (MJ, March 5, p.149). ■ September 6-10, Katowice ’99, work, although it is too early to say if plus a US$3 royalty on every tonne of International Exhibition for Mining, it will affect the scheduled start-up ore extracted. The land has not been Samancor cuts Power Industry, Metallurgy and date for the new plant. worked to date, and instead has been Chemical Industry, Katowice, Poland. Located about 250 km north of used as a dumping ground for waste ferrochrome output International Katowice Fair, ul. Quebec City, Alma will use state-of- products. The vendor claims that the The South African ferrochrome Bytkowska 1b, 40-955 Katowice, the-art technology and will have company has violated the contract of producer, Samancor, 60% owned by Poland. Tel: (+48 32) 204 2462. Fax: among the lowest operating costs of sale by not paying the royalty. Billiton and 40% by Anglo American, 254 0227. any new smelter project worldwide, Candelaria’s spokesman says that is to take two of its furnaces off-line ■ September 6-10, EXTEMIN ’99 – according to Alcan. Meanwhile, the the company intends to mine the for rebuilding. The company notes XXIV Peruvian Mining Engineers company has tried unsuccessfully to area, but does not have a definite date that the two units, which have a Convention and Exhibition, Arequipa, obtain a court injunction to force the in mind, and the contract does not combined output of 150,000 t/y of Peru. Instituto de Ingenieros de striking steelworkers to return, define a date by which operations ferrochrome, will be returned to Minas del Perú, Los Canarios 154156, although their action has been ruled must begin. The vendor’s lawyer says service “when market conditions Urb. San Cesar - 2 Etapa, Lima 12, as being in contempt of court. A that Chilean law states that if a date dictate”. Perú. Tel: (+51 1) 349 4262. Fax: 349 further hearing is scheduled for June is not specified in a contract, then the Having reached a peak of 3721. E-mail: 7, and the provincial construction contract must be carried out US$7,000/t in 1998, chrome prices fell [email protected] industry commission has been asked immediately. A Copiapó court ruled to a low of US$3,400 in February, http://www.conv-min.com to mediate in the demarcation in favour of the vendor, and before beginning to recover. In its ■ September 7-10, China Coal & dispute. Candelaria has appealed. In addition interim report for the six months to Mining ’99, Beijing. Together Expo, to ruling against the company, the the end of December 1998, Billiton Units A & B, 14/F, Guangdong Tours . . . while world judge ordered it to remove the waste reported chrome ore production of 1.9 Centre, 18 Pennington St, Causeway material, totalling 120 Mt, which Mt for Samancor, but also announced Bay, Hong Kong. Tel: (+852) 2881 alumina output stalls would cost over US$600 million, a 12-month delay on deciding whether 5889. Fax: 2890 2657. E-mail: Data from the International Primary according to the vendor’s lawyer. The to proceed with a greenfield [email protected] Aluminium Institute (IPAI) show balance of Candelaria is held by ferrochrome plant. ■ September 7-10, Kazmin ’99 – 5th that world alumina production Sumitomo of Japan. Kazakhstan International Mining totalled 11.25 Mt during the first and Metallurgy Exhibition, Almaty, three months of 1999. This represents Pingguo to increase Kazakhstan. ITE Exhibitions Group, a small increase on a year-on-year Meetings Byron House, 112a Shirland Road, basis, but a slight fall from the output London W9 2EQ, UK. Tel: (+44 171) December 1998 quarter’s 11.53 Mt. The Chinese producer Pingguo 286 9720. Fax: 286 0177. E-mail: Western world alumina refinery Aluminium Co. has plans to increase The following is a selection of [email protected] capacity is currently around 43 Mt/y, its output over the next two or three recently-announced meetings and ■ September 8-10, 24th Annual although there are some capacity years. The company has targets of conferences that may be of interest to Uranium Institute Symposium, expansions that have 600,000 t/y of alumina, compared Mining Journal readers. A fuller London, UK. Concorde Services Ltd, been announced or are under with a current 370,000 t/y; and listing may be obtained by visiting 10 Wedell Rd, London W12 9RT, UK. construction in countries such as 130,000 t/y of aluminium, up from the the Mining Journal website at Tel: (+44 181) 743 3106. Fax: 743 Australia, Suriname and India. Iran 103,000 t expected this year. In the www.mining-journal.com 1010. E-mail: [email protected] is also set to become an alumina March quarter of this year, Pingguo ■ June 21-25, Global Issues for Website: www.concorde-uk.com

Mining Journal, London, June 4, 1999 421 TECHNOLOGY TODAY

droplets (typically 1-100 microns in is around one year. The TTT system diameter) that readily agglomerate is available for 450-750 kW and with dust particles. The agglomerated speeds of up to 1,800 rev/min. It New drive for particles then fall to the ground. The features a compact water-flow company says that the system controlled Voith Turbo coupling effectively cuts process dust emissions integrated into the transmission and thereby reducing clean-up expenses, supported by the motor and gearbox grinding mills equipment damage, regulatory bearings. concerns and health hazards. Voith Turbo GmbH & Co., PO Box According to Martin, unlike other 1555, 74555 Crailsheim, Germany. Australia’s ANI Mineral Processing Faurelift 1260 features a rotating dust suppression systems that add Tel: (+49) 7531 320. Fax: 7951 32500. in conjunction with Hofmann turret and mainframe that acts as the 1-10% of water to the product, its Engineering has developed a new mill working platform mounted on a dual- system adds only 0.05% by weight to drive that offers advantages in capital axle trailer, which is fitted with a the product (approximately 1 litre/t Fuel accounting cost and greatly simplifies plant safety brake and lighting. The of material). The MARTIN™ FOG layouts. According to ANI, power- personnel winch has a dual-reverse Dust Suppression System is easy to from Contrec transmission limits on single pinion 125 mm diameter cable and is fitted install and operate, without the costs drives stand at around 7,000 kW; with safety and emergency brakes, an associated with consumable Pasminco has selected a Contrec Fuel applications requiring more power end-of-travel device, a speed limiter chemicals or excessive power required Automation System for use by its than this require twin-pinion and positioning controls. The control to operate fans or generate contractor Roche-Eltin at the arrangements or gearless drives. The box features a manual control switch compressed air. The system’s only Century zinc-lead project in company’s new SMTP drive (braking action on neutral point and requirement is a high-pressure pump Queensland. According to Contrec, overcomes such requirements through dead-man security setting) and to force a fine stream of water through with over 70 Mt of pre-stripping the use of two pinions with a single equipment rotation controls. microscopic nozzles to create a fine alone, the haul trucks at Century will large motor. The drive achieves load- Intermediary or external stops can be mist. consume huge amounts of fuel and sharing through the use of two programmed as can various displays. Martin Engineering, One Martin lubricants, and as such orderly usage opposing helixes on the main input The 15 kW lift can hoist 1,200 kg at Place, Neponset, IL 61345, US. Tel: and accounting is essential. shaft. The shaft is free to float axially 60 m/min (at 100 m depth). (+1 309) 594 2384. Fax: 594 2432. As trucks refill at a central depot, which ensures that the torque is split According to the company, the E-mail: [email protected] four Contrec flow computers regulate equally between the output gears. Faurelift 1260 complies with the Web: www.martin-eng.com high-speed fuelling and record the The drive does not require an external latest regulations governing hoisting data needed to bill each operator mechanical or electrical load sharing and personnel transport in shafts. correctly. Another Contrec computer system. Jean-Michel Castillo, Faure TTT aids record also logs and controls fuel transfer ANI says that the use of one large Equipements. Tel: (+33 555) 301 260. from the isolated main storage tank. motor greatly simplifies the provision Fax: 061 603. production The flow computers exchange of a variable speed drive option and information with a PC running eliminates load-sharing and According to Voith Turbo, its Contrec’s Meterwin software which synchronisation issues. Yuasa moves transmission system has aided RJB’s monitors all fuel movements, prints ANI Mineral Processing Ltd. Tel: Selby coal mine in the UK to achieve bills of lading, controls load (+61 3) 9562 2088. Fax: 9562 0640. into new record production figures last year. scheduling, prints transactional E-mail: [email protected] Three coal faces with a total length of reports and maintains operational markets 712 m contributed to produce 1 Mt of databases. A graphical user interface coal in 50 days. The largest allows operators to be trained easily. Heavy metal Yuasa Warwick Machinery, a contribution came from the 858 face A personal identification number subsidiary of Japanese trading house which cut 670,000 t of coal. The identifies each contractor and recovery from Yuasa, is providing a springboard to armoured face conveyor at face 858 is allocates the correct combination of European markets for a range of fitted with Voith’s TTT transmission diesel fuel and lubricant for a slag Japanese construction equipment. system which was developed in particular vehicle. The system also The range includes tracked conjunction with US-based Joy assists in the scheduling of A process to recover heavy metals equipment carriers and dumpers, Mining. maintenance by logging engine hours. from slag dumps has been developed excavators and wheel loaders. According to Voith, the TTT Contrec Systems Pty Ltd, 22 Hall by a team of Australian and Canadian The Morooka MST 1500VD system provides the conveyor with a Street, Hawthorn East, Melbourne metallurgists. According to a carrier is designed for off-road use in considerably softer start which 3123, Australia. Tel: (+61 3) 9822 spokesman for La Trobe University in marshland or hilly areas. The carrier protects the conveyor chain and flight 8966. Fax: 9822 8329. Australia, the plasma-enhanced weighs 14.9 t when fully laden and bar assembly by subjecting it to lower E-mail: [email protected] aluminothermic reduction process can features a two-speed HST levels of shock. As a result of using the Web: www.contrec.com.au extract metals such as manganese, transmission with dual-lever system, Voith estimates that the face titanium, chromium and vanadium operation. According to Yuasa, this chain will last for around two years, Yuasa’s new Morooka MST 1500 from slag using aluminium and a combines high torque and speed with whereas life expectancy without TTT carrier. plasma heat source. They can then be fingertip control. Floating track reduced in a bath of iron and the rollers coupled with durable rubber resulting alloy used in steel making. crawlers absorb shock and ensure The clean slag that remains, a smooth and stable travel over rough calcium aluminate product, can be and uneven ground. used as a partial substitute for cement Iain Randall, Yuasa Warwick in concrete. Machinery Ltd, Construction In addition to La Trobe, the Equipment Division, Rothwell Road, process has been successfully tested Wedgnock Industrial Estate, by the University of Toronto. The Warwick, CV34 5PY. UK. Tel: (+44 next stage in the process’s 1926) 497 806. Fax: 401 039. development will be the construction of a pilot plant in the US. Fog clears dust New lift for Martin Engineering has introduced a shaft sinking low-moisture, additive-free system to suppress airborne dust generated at France’s Faure Equipements has belt-conveyor loading zones. The launched a new lift designed for use in MARTIN™ FOG Dust Suppression shaft sinking operations. The System produces microscopic water

422 Mining Journal, London, June 4, 1999 FOCUS AND COMMENT

rom a comparatively modest phuric acid. The dissolved nickel and cobalt 50,000 t in 1991, Western Australia’s can then be refined via a number of differ- Fnickel output has risen sharply. In ent options. 1998, it reached 143,000 t, and the industry Western PAL was pioneered in Cuba in the late generated revenues of A$1 billion and 1950s, and continues to be used there by provided direct employment for more Sherritt International Corp. It is less capi- than 5,000 people. WA now supplies Australia: tal- and energy-intensive than other lat- about 13% of global mine output of erite processes and can achieve higher metal nickel, ranking it the third largest recoveries, but there can be risks concerning producer behind Russia and Canada. its sensitivity to different ore types and the Production this year will rise significantly nickel in potential for contaminant metals to pollute as a result of three new projects coming into the final product. production which are exploiting lateritic nickel. a nutshell Further ahead, a number of additional Laterite testing projects in the pipeline should ensure that the state will continue to grow in impor- orebody is being evaluated (1.09 Mt at Resolute Ltd was first to conduct tance as a nickel producer. With many eyes 2.1% Ni). detailed test work on WA laterites, at its now on the progress of the new generation The newest nickel producer, Titan Bulong deposit, where there is a total of nickel projects, the WA Government, Resources’ Radio Hill mine in the Pilbara resource of 140 Mt averaging 1% Ni and through its Department of Resource region, expects to produce up to 5,000 t/y of 0.1% Co. It found that the process could be Development (DRD), has produced a time- nickel in concentrate and has agreed a long- adapted to low grade ores (MJ, January 12, ly review of the WA nickel industry*. term contract to truck its output to the 1996, p.29), and that highly saline water Kalgoorlie smelter. could be used in the process whilst still Production by the established producers achieving acceptable rates of acid consump- Nickel pioneer is confined to the exploitation of sulphide tion (a major cost item). A decision to pro- ores which require smelting and refining. ceed with Bulong was made in November Although there is especial interest in the The three new nickel mines coming into 1996 and construction started in 1997. In success, or otherwise, of the nickel laterite production are based on open-pit mining of July 1998, Resolute sold the project to projects, it is important to remember that lateritic nickel, and the key to their success Preston Resources for A$319 million, and Western Mining Corp. (now WMC Ltd) is the application of pressure acid-leach the first metal was produced in March this pioneered the state’s nickel industry (PAL) processing. The technology involves year. Production from Bulong is forecast at through the establishment of its Kambalda slurried ore being injected into high- 9,000 t of nickel and 700 t of 99.8% cobalt operation in 1966 and continues to domi- pressure autoclaves containing hot sul- metal. nate. Its mines include underground opera- tions at Kambalda and Leinster, and the low-grade, large-tonnage open pit at Mt KARRATHA Sulphide Mine Keith. It also operates the 600,000 t/y Radio Hill capacity smelter at Kalgoorlie, which yields Sulphide Refinery about 100,000 t/y of nickel in matte, and Sulphide Smelter the 50,000 t/y refinery at Kwinana fed by matte from Kalgoorlie. PILBARA Laterite mine/refinery Last year, WMC’s nickel production Projects for Development reached a record 120,000 t. At Kambalda, REGION nickel-in-concentrate production reached 34,000 t but is expected to decrease this year to 16,000 t as mining is being suspend- CARNARVON ed at some operations. Eventually, output will be replaced by the new Miitel mine. MEEKATHARRA WILUNA Meanwhile, at Leinster, output was at a Honeymoon Well Mt Keith record 44,000 t last year, and at the current Yakabindie GOLDFIELDS ore treatment rate of 2.4 Mt/y reserves are Cosmos sufficient for at least 15 years. Mt Keith Leinster REGION produced 42,000 t of nickel in concentrate MT MAGNET Mt Margaret in 1998, and reserves stand at 262 Mt aver- GERALDTON LEONORA Murrin Murrin aging 0.58% Ni. The concentrator treats Silver Swan 11.5 Mt/y of ore. N Cawse Kalpini Pinnacles The other major nickel producer in WA is KALGOORLIE INDIAN Bulong the Finnish company, Outokumpu, with WMC SMELTER two operations, Forrestania and Black OCEAN Kambalda Maggie Hays/ Swan. Between them, they produce about Emily Ann NORSEMAN 20,000 t/y of nickel in concentrates which PERTH are shipped to the company’s Harjavalta WMC REFINERY KWINANA Forrestania smelter in Finland. The Black Swan under- ground mine exploits the small, high-grade BUNBURY Rav 8 ESPERANCE Silver Swan orebody, and the White Swan Ravensthorpe orebody beneath will be mined next. They 200 km ALBANY possess reserves of 429,000 t averaging 9.4% Ni. The nearby Cygnet disseminated

Mining Journal, London, June 4, 1999 423 FOCUS AND COMMENT

The most ambitious laterite project is to examine the possibility of building a and 0.045% Co, including 56 Mt averaging Murrin Murrin, owned by Anaconda A$35 million cobalt refinery at Cawse. 0.96% Ni and some 0.06% Co. The ore is Nickel (60%) and Glencore International Between them, Bulong, Murrin Murrin limonitic, with a very low magnesium con- (40%). There is a resource of 211 Mt aver- Stage 1 and Cawse involve total capital tent. The site is close to the Goldfields Gas aging 1.04% Ni and 0.08% Co, and the suc- expenditure in excess of A$1.5 billion and Transmission pipeline and also has access cessful takeover of Abednego Nickel Ltd will add some 63,000 t/y of nickel produc- to nearby rail services. Its proximity to early this year has added a further 68 Mt tion to WA’s total output. Murrin Murrin gives it further infrastruc- including 22 Mt of high-grade resources. tural advantages. Initial production has begun, and at full In the Central Goldfields region, east of capacity the A$1 billion project will pro- Other projects Kalgoorlie, two lateritic nickel projects are duce 45,000 t/y of nickel plus 3,000 t/y of under consideration: Heron Resources’ cobalt. Plans are well advanced for an Other WA nickel projects where develop- Kalpini deposit (54.6 Mt at 1.09% Ni and expansion to 115,000 t/y of nickel and 9,000 ment is being considered include North’s 0.08% Co) and Kanowna Lights’ Pinnacles t/y of cobalt. Anaconda has adopted the low-grade Yakabindie sulphide resource deposit (50 Mt at 0.7% Ni, including 11 Mt pressure leaching process used in Cuba by (127 Mt at 0.52% Ni and 0.01% Co) and at 1.35% nickel equivalent). PAL process- Sherritt, and the Canadian company has Outokumpu’s Honeymoon Well deposit ing is being considered for both projects. A recently purchased a 9% equity interest in (118 Mt at 0.8% Ni), both in the Northern draft prefeasibility study for Kalpini pre- Anaconda. Goldfields region. At Yakabindie, where pared by Bateman Kinhill contemplates a The third WA nickel laterite project is there are a number of small, discrete 2.1 Mt/y operation over twenty years pro- Centaur Mining and Exploration’s Cawse deposits, further exploration is under way ducing 24,000 t/y of nickel and 1,600 t/y of project. There is a resource of 213 Mt at to identify some higher-grade zones and cobalt. The possibility of a 4.2 Mt/y opera- 0.7% Ni and 0.04% Co but there are high- processing options are still being considered tion is being considered prior to moving to a grade zones of cobalt, and the aim is to (including the Activox process developed by full feasibility study. For the Pinnacles pro- upgrade the ore to around 2% Ni and 0.5% the previous owner, Dominion Mining). At ject, further drilling is under way to extend Co prior to PAL treatment. Cawse was the Honeymoon Well, a A$400 million open-pit the deposit, with a target of 100 Mt at 1% first of the new laterite producers into pro- operation is being considered. In the same nickel equivalent. duction, in January this year, and the first region, Jubilee Gold Mines hopes to have its Further south, in the Lake Johnston company in Australia to produce metal on small, high-grade Cosmos sulphide deposit greenstone belt near Norseman, two sul- site from the treatment of lateritic ore. in production by 2000. Mineable reserves phide projects are under consideration - Annual production is expected to be 9,000 t are estimated at 420,000 t at 7.5% Ni, and a Emily Ann (2.2 Mt at 3.7% Ni) and of nickel and 2,000 t of cobalt. For the feasibility study envisages production of Maggie Hays (9.5 Mt at 1.6% Ni). The for- future, a fourfold expansion is contemplat- around 10,000 t/y of nickel over three years, mer is wholly-owned by LionOre Australia ed, to a 2 Mt/y operation producing 35,000 with capital costs of some A$52 million. (Nickel) Ltd, and the latter 31% by t/y of nickel and 2,500 t/y of cobalt. Further south, at Mount Margaret near LionOre and 69% by QNI Ltd. Meanwhile, Centaur has entered into a Leonora, Anaconda has outlined an inferred In the far south, Tectonic Resources’ partnership with Union Minière of Belgium resource of 176 Mt averaging 0.78% Ni RAV8 deposit, on the eastern flank of the Ravensthorpe greenstone belt, is a small high-grade resource comprising some Australian Nickel Mines/Projects 187,000 t averaging 5.92% Ni. The DRD 1. Mines Owner 1998 production report says that negotiations are being con- Mt Keith WMC 42,000 t (in conc.) ducted for an off-take agreement, either for Leinster WMC 44,000 t (in conc.) ore, or for concentrate. Kambalda WMC 34,000 t (in conc.) Last but not least, the much larger, lat- Forrestania Outokumpu 8,000 t (in conc.) Black Swan Outokumpu 12,000 t (in conc.) eritic nickel resource at Ravensthorpe (152 Mt at 0.9% Ni and 0.04% Co, including 52 Mt in the reserve category) is being devel- 2. New producers Owner Projected annual output oped by Comet Resources NL (80% inter- Radio Hill (sulphide) Titan Resources up to 5,000 t (in conc.) Cawse (laterite) Centaur Mining 9,000 t + 2,000 t Co est). It is located 150 km from the port of Bulong (laterite) Resolute 9,000 t + 700 t Co Esperance, and a bankable feasibility study Murrin Murrin (laterite) Anaconda/Glencore 45,000 t + 3,000 t Co successfully completed last November envisages PAL processing to produce 25,000 3. Projects pending Owner Resource Status t/y of nickel, plus cobalt precipitated as Ravensthorpe Comet Resources 152 Mt (0.9% Ni, 0.04% Co) Bankable feasibility study 1,900 t/y of saleable sulphide product. complete for 25,000 t/y of Comet has an engineering, procurement nickel cathode. and construction contract with Multiplex Financing sought Constructions Pty Ltd, and the two parties Kalpini Heron Resources 54.6 Mt (1.09% Ni, 0.08% Co) Prefeasibility complete have also agreed on a financing mandate for Pinnacles Kanowna Lights 50 Mt (0.7% Ni) Drilling to extend deposit securing project funding. Comet hopes to Mt Margaret Anaconda 56 Mt (0.9% Ni, 0.06% Co) Scoping study begin production early in 2001. Cosmos Jubilee Gold Mines 420,000 t mineable (7.5% Ni) Construction pending Honeymoon Well Outokumpu 118 Mt (0.8% Ni) Mining and metallurgical studies Important components Yakabindie North Ltd 127 Mt (0.52% Ni, 0.01% Co) Considering processing options, exploration Although processing technology and continuing to extend resource exploration success have been vital ingredi- Emily Anne LionOre 2.2 Mt (3.7% Ni) Exploration continuing ents in the expansion of the WA nickel Maggie Hays QNL/LionOre 9.5 Mt (1.6% Ni) Prefeasibility complete industry, DRD, in its report, emphasises RAV8 Tectonic Resources 187,000 t (5.92% Ni) Offtake agreement sought two other increasingly important compo- nents of mineral development in WA: water

424 Mining Journal, London, June 4, 1999 FOCUS AND COMMENT supply and infrastructure. The ground water in WA can be highly saline and although high salinity can be tolerated in A different job gold processing, it was not believed to be he key issue arising from this foreign affairs. These are both key areas for suitable for the PAL process. At Murrin Wednesday’s general election in South the whole sub-continent: AIDS threatens to Murrin, Anaconda, using the Sherritt TAfrica is not which party will win, but reverse a century of progress in raising life process, pipes water of appropriate quality rather how that party’s new leader will deal expectancy, and the end of the Cold War era from boreholes located 50 km away from with the challenges that the country now has allowed long-suppressed ethnic rivalries the mine site. At Bulong, however, the faces. Victory by the governing African to boil over into regional conflict. The ANC’s process flowsheet was modified so that National Congress (ANC) by anything less overwhelming majority, and the lack of an saline water from nearby palaeochannels than an overwhelming majority is almost effective opposition, cause its second prob- could be used. This followed research by unthinkable, and this was confirmed by early lem, complacency, removing the impetus Resolute metallurgist Tom Salinovich, who results as Mining Journal closed for press. that would otherwise force the government demonstrated that the plant could operate The strength of support for the ANC is to root out incompetence and corruption. using hypersaline water provided that cor- both symptomatic of one of its fundamental The 1994 election in South Africa was rosion-resistant materials are used and the problems and the cause of another. The par- also characterised by relief: that of the control of reaction conditions is carefully ty swept to power five years ago, as the vast black majority that its goal had finally been monitored. majority of black South Africans, voting for achieved; that of the white and other ethnic However, palaeochannels in the the first time in the country’s history, natu- minorities at the avoidance of a bloodbath. Goldfields region have an average 20-year rally aligned themselves with the leader in That the current election issues are more mine life. The mining industry accounts for the struggle against the system that had mundane is itself an achievement. White about 86% of total water consumption in hitherto denied them. The ANC’s first term fears about crime, and unemployment the region and, with total water demand was principally concerned with removing the among black people are less immediate, but forecast to increase by 50% over the next remnants of the old system and, critically, they are nonetheless important, threatening ten years, alternative water supplies are promoting reconciliation between ethnic the stability of the country over the longer having to be considered. The proposal groups. The latter was a task for which its term. attracting most interest is Goldfields leader, Nelson Mandela, had no equal. The underlying cure for unemployment Utilities’ plan to desalinate 110 Ml/d of the Many liberation movements that have and crime must be economic growth, but Great Southern Ocean and pump it north. achieved power have found the realities of the wave of foreign investment predicted The project could cost in the order of A$750 government difficult, and discovered that amidst the relief of 1994 failed to materi- million. those individuals suited to battling injustice alise. The reputation of developing markets are not necessarily the ideal people to gov- in general has been severely tarnished in the ern. South Africans need look no further interim which, although no fault of South Source of energy than their northern neighbour, Zimbabwe, to Africa, has hampered the removal of the see the consequences of a successful fight country’s exchange controls. Western Probably the most significant develop- for democracy turned sour, and where the investment has meanwhile turned inwards ment in the Goldfields region, however, has problems are compounded by an ageing into already bloated domestic stock mar- been the successful installation of the President Mugabe clinging to power with no kets. This has caused leading South African Goldfields Gas Transmission (GGT) provision for a successor. companies to move abroad to seek funds, pipeline in 1996, which brings natural gas Mr Mandela’s last crucial service to his and the government, no doubt led principally from the North West Shelf. It is WA’s country has been publicly to pass the leader- by Mr Mbeki, has sensibly endorsed this first private-sector investment in multi- ship of the ANC to Thabo Mbeki. Mr Mbeki strategy in the expectation that some of user energy infrastructure. More and has inspired much confidence in the busi- this money will be invested back home. more existing mines are coming to depend ness community, and is renowned as an Mr Mbeki knows that the government on this new, lower-cost source of energy, astute politician and an organiser, but lacks must deliver progress to its voters in this sec- and its availability provides a substantial Mr Mandela’s popularity among the masses. ond term. The worry must be that if economic incentive for new mining projects: both This transition in personal qualities seems progress is too little or too slow, he will feel Murrin Murrin and Cawse are utilising the appropriate, as the challenge moves from forced to pursue short-term remedies that are GGT. one of reconciliation to straightforward gov- damaging in the long term, to address the ernment. impatience of black people for the economic *‘Western Australian Nickel Industry Review’ is available However, there are senior figures in the progress they were promised. It remains to from Department of Resources Development, 168-170 St Georges Terrace, Perth, Western Australia. Tel: (+61 8) 9327 government whose ability has been serious- be seen how much time Mr Mandela’s bless- 5555. Fax: 9327 5500. ly questioned, such as those in health and ing will buy for his successor. 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, June 4, 1999 425 MINERAL MARKETS

world’s iron ore industry, Shakeout, cutting programmes are yielding results Sydney-based AME Mineral Economics and will enable them to weather the lower says that a forecast 3% fall in global raw prices set after the last set of negotiations. LME metals steel production in 1999 will result in iron AME believes that, in nominal terms, iron ore consumption falling by around 4% to ore prices will remain steady in 1999, with 1,007 Mt. The situation is then expected to the prospect for a slight recovery of up to retreat . . . improve slowly with consumption rising to 2% in 2000. However, in the longer term, it 1,132 Mt in 2004. expects real prices to decrease. After being battered by fund selling last According to AME the decline in steel week, most base metals have retreated to production initially affected iron ore the levels seen prior to their burst of spring demand more in terms of product mix than Cobalt producer price exuberance. Traders note not only that the of total tonnage. Electric-arc furnace mills announced sell-off included funds involved in short- rather than integrated steel mills were the term trading, but also that some macro first to cut production. Consequently, says In a rare example of concern for consumers, funds had started to pull out of metals. AME, demand for iron ore stood up rather UK-based trader Metal Resource Group However, after its fall to a fresh twelve- well in 1998 at 1,048 Mt. As a result (MRG) has supported plans by Gécamines year low of US$1,365/t last Friday, the of integrated steel mills no longer having to and ZCCM to re-establish an African cobalt three-month copper price managed a hesi- operate at maximum capacity, it became producer price. Speaking at last week’s tant recovery on Tuesday after the long hol- economic for them to increase the Cobalt Development Institute conference iday weekend in the US and UK. In the proportions of fines they used and to reduce in London, Rami Weissfisch, head of MRG, absence of fresh fund selling, the price their use of expensive pellets. Demand for said that Gécamines and ZCCM have taken recovered, to rise above the US$1,400/t products such as BHP’s Yandi fines the decision to reintroduce the pricing mark. The worst may not be over, as traders therefore remained fairly strong in 1998 mechanism in order to stabilise the cobalt warn that economic data released this week and is expected to continue to remain market, to ensure price stability and pre- in the US and news that management and strong in 1999. Demand for pellets, howev- dictability for producers, and to guarantee unions at Highland Valley Copper had er, fell. the availability of African cobalt to con- resumed talks on reopening the operation In terms of supply, AME say that the fall sumers and counter volatility. No level or have added to the negative sentiment this in overall demand is likely to force a number date for the new pricing structure has been week. of Australian producers to delay several set. ZCCM’s chairman, Edward Shamutete, The other base metals on the LME fol- greenfield projects and to cut global iron ore said that “the details have yet to be worked lowed copper’s lead, and gently ticked production in 1999 to 1,007 Mt, from 1,048 out, we don’t want a price that is unrealistic upwards. The exception was nickel, which Mt in 1998 (AME equates production and to producers and consumers”. recovered sharply, but traders said that this demand exactly). Production is expected to MRG secured the exclusive marketing was hardly surprising as it had been most begin recovering in 2000; however, not all of rights for cobalt produced by Gécamines heavily hit by the sell-off at the end of last the world’s iron ore producing regions will and ZCCM earlier in the year which, week. Nickel’s rally was attributed to tech- grow. together with successful bids for material nically-driven buying in thin markets. AME says that mining and environmen- from the US Defense Logistic Agency, has tal problems in India will curtail Indian given it control over about one third of production, which will fall by 7% in 1999. world supply (MJ, February 19, p.123). . . . gold erosion In the former Soviet Union, a collapse in Under the proposed producer price, MRG domestic steel production will make itself will act as principal and use its stockpiles of After last week’s collapse in base metal felt: AME expects raw steel production to cobalt to guarantee availability and offer prices, producers found no solace in gold fall by some 15% to 60 Mt in 2000, and iron consumers three-year supply agreements. and silver prices, with both metals falling ore consumption will follow a similar pat- An African producer price was first estab- through psychologically important levels. tern and drop from 104 Mt in 1997 to 79 Mt lished in the late 1980s, but the price gradu- After breaching US$270/oz last week, the in 2001. ally fell into disuse and it was last set at gold price managed to hold around that lev- The fallout from the Asian crisis has US$27.50/lb in February 1995. Analysts el amid short-covering ahead of the long forced the world’s iron ore producers to cut and consumers have expressed scepticism weekend. However, when traders returned costs. According to AME, the large reserves regarding MRG’s plans to re-establish the to their desks on Tuesday, the gradual slide and well-established and efficient infra- pricing mechanism, noting that when an resumed as news of forward sales by structure of Australian and Brazilian pro- African producer price was first established Australian and South African producers ducers mean that they are the best placed to ZCCM and Gécamines accounted for undermined confidence. As Mining Journal face these challenges. In addition, in around 70% of the world’s supply of cobalt. went to press, the price was fixed in London Brazil’s case, the devaluation of the real last This figure has since fallen to around 30% at US$263.85/oz. year has improved competitiveness com- and is set to fall further as output from Silver also fared badly this week and fell pared with that of Australian producers. Australian producers rises. Some consumers below US$5.00/oz. The price was hit by a AME notes that the iron ore producers’ cost feel that the move is an attempt by MRG to combination of the dramatic collapse of push prices to levels unjustified by funda- base metal prices last week and gold’s slide. London Metal Exchange official averages mentals, and analysts note that even if the for May were: move is successful, in the longer term it may Cash Three months Settlement hurt cobalt producers as it could encourage Asian setback for COPPER Grade A $1,510.79 $1,542.16 $1,511.16 extra low-cost production. iron ore TIN $5,646.18 $5,643.42 $5,649.21 In his presentation, Mr Weissfisch also LEAD $541.12 $543.13 $541.53 forecast that cobalt production from After enjoying record consumption in 1997, ZINC ZCCM and Gécamines will fall further this the Asian crisis brought disappointment to Special high grade $1,040.33 $1,060.53 $1,040.74 year which, together with low global stocks ALUMINIUM HG $1,323.46 $1,349.79 $1,323.79 the world’s iron ore producers in 1998, and Alloy $1,232.26 $1,248.87 $1,233.32 of the metal, implies that the cobalt market they are unlikely to see an improvement this NICKEL $5,399.34 $5,473.03 $5,402.89 could be in deficit this year and that prices year. In its latest strategic report on the SILVER n/a 529.10c n/a could move dramatically higher.

426 Mining Journal, London, June 4, 1999 LME PRICES & STOCKS MINING FINANCE

Prices (a.m.) June 3 May 27 Tonne basis Buyers Sellers Buyers Sellers COPPER Grade A Cash...... $1,698.5 $1,699 $1,431 $1,432 Three months ...... $1,728 $1,731 $1,463 $1,464 TIN Antamina partners Cash...... $5,160 $5,165 $5,590 $5,600 Three months ...... $5,215 $5,220 $5,595 $5,600 LEAD Cash...... $491 $492 $539.5 $540 Three months ...... $494.5 $495 $533.5 $534 muster cash ZINC Special high grade Cash...... $948.5 $949 $992 $992.5 Three months ...... $971 $972 $1,011 $1,012 The Canadian diversified mining group The remaining balance of the company’s ALUMINIUM Higher grade Noranda Inc. just about broke even in the roughly C$500 million total share of the Cash...... $1,264 $1,265 $1,283 $1,283.5 Three months ...... $1,293 $1,293.5 $1,308 $1,308.5 March quarter of this year, recording net equity finance for Antamina will require Alloy Cash...... $1,170 $1,175 $1,195 $1,196 earnings of C$4 million from sales revenue rather more than this figure. The chief exec- Three months ...... $1,185 $1,190 $1,213 $1,215 of C$1.44 billion. Earnings were sharply utive of Rio Algom, Patrick James, expects NICKEL Cash...... $4,835 $4,845 $5,130 $5,135 down from the C$610 million posted for the the company to generate about C$600 mil- Three months ...... $4,915 $4,920 $5,205 $5,210 corresponding quarter of 1998, but this fig- lion in after-tax cash flow over the next five SILVER Cash...... N/A N/A N/A N/A ure includes Noranda’s forestry, and oil and years, based on a copper price of US$0.70/lb Three months ...... $502 $503 $498 $499 gas business, variously sold or distributed over the next three years rising to to shareholders at the end of last year (MJ, US$0.95/lb in the longer term. However, LME warehouse stocks on June 2 and turnovers for the month of May December 11, 1998, p.481). The C$4 million should “weak metal prices persist”, Rio Stocks Stocks Turnovers net profit can be more usefully compared Algom has access to a five-year US$500 mil- (t) (May 26) (t) with the C$9 million made by the same core lion revolving credit facility. The company’s COPPER 775,050 776,100 31,724,800 mining and metal assets in the March quar- long-term debt stood at C$238 million at TIN 10,885 10,310 930,865 ter of last year. the end of March, leaving considerable LEAD 122,650 115,225 7,376,725 The income statement for the March scope for increase. ZINC SHG 314,975 310,450 13,996,450 quarter of this year includes a C$128 mil- Rio Algom is also developing the Spence ALUMINIUM HG 767,000 767,800 36,700,100 lion charge for depreciation and amortisa- copper project, in Chile (MJ, April 4, 1997, Alloy 60,740 60,860 899,140 tion, and thus cash from operations (includ- p.267), and plans to finance its efforts with NICKEL 56,952 57,462 2,314,458 ing changes in working capital) was more project debt, “bundling” the project with substantial than the break-even position its existing wholly-owned Cerro Colorado implies. Noranda generated C$341 million copper operation, which is currently debt- from operations, plus C$128 million from free, to create an “attractive financing the sale of some of the non-core assets, package”. LONDON PRICES which more than covered capital expendi- At the end of last month, the third mining ture of C$249 million. After allowing for partner in Antamina, Teck Corp. of Metals June 3 dividends totalling C$65 million, essential- Canada, with 22.5%, reported a marginal Aluminium (US producer) 61.00-62.00 c/lb d/d ly covered by a C$61 million increase in net profit of C$1.8 million for the March Antimony $1,200-$1,250/t cif Arsenic (Rotterdam 99%) $0.40-$0.60/lb long-term debt, Noranda’s cash position quarter (MJ, April 30, p.321). The fourth Bismuth Bismuth $3.20-$3.40/lb cif increased by C$223 million to C$1.44 bil- partner, Mitsubishi Corp. of Japan, has a Cadmium (99.99%) $0.18-$0.23/lb cif .. (99.95%) $0.16-$0.20/lb cif lion. Spending commitments include the 10% interest tied to a concentrate off-take Chrome (UK 99%) $9.00-$10.00/lb ■ Cobalt (99.8%) $16.50-$17.50/lb net company’s share (33.75% interest) of the deal (MJ, April 2, p.237). .. (99.3%) $16.00-$17.20/lb net US$1 billion equity funding portion of the Germanium $790-$820/kg Gold £164.29 ($263.85)/oz US$2.26 billion Antamina copper-zinc pro- Indium $180-$200/kg Iridium (J Matthey price) $415/oz ject in Peru. Tiomin uses copper Magnesium (Norsk Hydro Euro. prod.) ᇾ2.86/kg* Another 33.75% partner in Antamina, .. (US Free mkt, 99.8%) $2,250-$2,700/t* project to fund Manganese Toronto-based Rio Algom Ltd, also did just metal (99.7%) $1,080-$1,140/t Mercury (99.99%) $130-$140/flask better than break-even in the March quar- titanium study Nickel $2.19-$2.21/lb ter of this year. The company made a net Osmium $400-$450/oz Palladium (J Matthey price) $348.00/oz profit of C$1 million in the three months to Toronto-based Tiomin Resources Inc. has .. (Free market) $340.00-$345.00/oz Platinum (J Matthey price) $363.00/oz March 31, compared with C$9 million in the secured funding for the feasibility study of .. (Free market) $362.00-$364.00/oz March quarter of last year. Rio Algom’s rev- its Kwale mineral sands project, in Kenya, Rhodium (J Matthey price) $930/oz Ruthenium (J Matthey price) $39/oz enue for the quarter rose by 14% to C$511 by granting Aur Resources Inc., also of Selenium $1.75-$2.25/lb cif Silver $5.01/oz million, of which C$100 million was attrib- Toronto, a 26-month option to purchase its Tellurium (UK lump & powder uted to its mining operations and the bal- Cerro Colorado copper porphyry project in 99.95%) $4.00-$6.00/lb net Tin (Kuala Lumpur) RM20.00/kg ance to its metals distribution business. Panama. Aur Resources will provide a US$2 Ore & Oxides June 3 Mining revenue was 20% higher than in the million loan to Tiomin, to be repaid in two March quarter of last year, as a 15% fall in years, in exchange for the option to buy all Antimony (60%) $8.50-$9.00/t unit, cif nom* Beryl (10% BeO) $75-$80/s ton unit BeO cif* the average copper price received, to of the shares in PanaCobre SA, the project Chrome (Transvaal, Friable 40%) $63-$68/t, fob* .. (Turkish, concs 48%) $75-$85/t fob* US$0.66/lb, was more than offset by a 34% operating company. Columbite (min. 65% comb. oxides) $2.80-$3.20/lb cif* increase in attributable production, to 106 Exercise of the option would cost Aur Ilmenite (54% TiO2) A$95-A$110/t fob Lithium ores (Petalite 4.2% Li2O) $250/t fob* Mlb (48,100 t). Resources US$4 million initially, plus (Spodumene>7.25% Li2O) $385-$395/t fob* Manganese ore (48-50% Mn, Cash flow from operations totalled C$34 US$10 million within 90 days of the project max. 0.1% P) $1.81-$1.90/t unit fob* million in the March quarter, and net capi- achieving commercial production if it goes Molybdenum oxide (conc 55-57%) $2.75-$2.90/lb tal expenditure of C$89 million (C$60 mil- ahead. Should Tiomin repay the loan before Rutile (Aust. 95-97% TiO2) A$675-A$750/t fob (bulk) lion on Antamina) was covered by C$90 the maturity date, Aur Resources would Tantalum oxide (60% cif N. Euro port) $26-$32/lb million in cash received from the disposal of have 60 days to exercise the option (for the Uranium (Nuexco unrestricted/restricted U3O8) $8.50/$10.60/lb short-term investments. Rio Algom’s cash reduced charge of US$3 million) before it Vanadium (98% V2O5) $1.85-$2.05/lb cif Wolframite (65%) $40-$45/t unit position was thus increased over the three- expires. Aur may repay the loan by transfer- Zircon sand (std 66-67% ZrO2) A$500-A$600/t fob (bulk) month period, by C$27 million to C$112 ring the project to Aur if it so chooses, forgo- * Source: Metal Bulletin million. ing all of the option payments.

Mining Journal, London, June 4, 1999 427 MINING FINANCE

A prefeasibility study of Kwale complet- ■ India’s largest private-sector aluminium continued operations. SouthernEra with- ed early last year, based on a resource of 200 producer, Hindalco Industries Ltd, returned drew from its operations at Luo, on the Mt of mineral sands, determined that the a 14% increase in net profit in the year to Chicapa River, as diamond yields fell and project is capable of producing 331,000 t/y March 31, 1999, to Rs5.7 billion (US$1 = security costs rose (MJ, January 15, p.22), of ilmenite, 71,000 t/y of rutile and 33,000 Rs42.92). The improvement was driven by a but the company continues to explore the t/y of zircon over a 15-year life. LTA 20% increase in sales, to Rs17.7 billion, the 51%-owned Camafuca kimberlite pipe in Engineering of South Africa has been result of increases in the volumes of the the same area. The Marsfontein joint ven- appointed by Tiomin to conduct the full company’s aluminium products (rods, ture produced 200,132 ct (100% basis) dur- feasibility study, which is scheduled to be extrusions, foil and rolled). Hindalco pro- ing the March quarter, from the processing completed by the end of this year. ■ duced 240,926 t of aluminium from its pri- of 82,800 t of ore. An increase in the mary smelter to feed these product-lines throughput rate to 1,200 t/d, from 1,100 t/d during the financial year, a 20% increase in the December quarter of 1998, was offset Results from the preceding year and close to the by a reduction in the average grade, to 2.42 unit’s 242,000 t/y capacity. The president of ct/t from 4.15 ct/t, as mining moved down The state-owned Chilean copper producer Hindalco, Mr A. K. Agarwala, said in an from the “very rich” overburden exploited Corporación Nacional del Cobre de Chile interview with Reuters that the company in the preceding period. A reduction in the (Codelco) made a pre-tax profit of US$24 will seek to increase the proportion of value- De Beers price list, with effect from January million in the three months to March 31, added products in its sales, and to reduce 1, contributed to a fall in the average price 1999, 80% less than in the corresponding costs. This confirmed the views of local ana- of Marsfontein’s output to US$121/ct in the quarter of last year. Sales revenue totalled lysts, who argue that Hindalco is unable to latest period, from US$147/ct in the US$639 million (including sales of copper increase its volumes further because of December quarter. ■ mined by third parties), US$6 million more capacity constraints, and must therefore than in the March quarter of last year, as find other ways of increasing its profits. higher production offset lower prices. ■ Production from its 40%-owned Market news Codelco is required by law to pay a royalty Marsfontein project, in South Africa’s equivalent to 10% of its metals exports, the Northern Province, has firmly entrenched Texas-based Real del Monte Mining Corp. proceeds going directly to the Chilean Toronto-based SouthernEra Resources Ltd reports that it has “exhausted its existing armed forces. This royalty amounted to as a diamond producer. Diamond revenues financial resources”. The assessment US$47 million in the March quarter of this (net of marketing costs and royalties) accompanies an announcement to the effect year, and Codelco paid a further US$5 mil- totalled C$11.8 million in the three months that Real del Monte’s principal shareholder, lion in other taxes. Codelco’s long-term debt to March 31, 1999, yielding a net profit of Grupo Acerero del Norte SA de CV of declined by 8% during the three-month C$4.9 million. This compares with a net loss Mexico, has obtained a court judgment to period, to US$1.9 billion at the end of of C$2.0 million for the corresponding allow it to suspend supporting payments, March. The company announced a US$300 March quarter in 1998. Revenue for that and follows an earlier notice describing Real million bond issue to refinance a portion of quarter has been restated to nil, as the del Monte’s financial position as “precari- this debt last month (MJ, May 7, p.348), C$1.2 million received from diamond min- ous” (MJ, May 14, p.369). Real del Monte subsequent to the end of the quarterly peri- ing on the Luo alluvial concession has been has started discussions with its creditors to od under review. restated in the form of a net loss from dis- try to restructure its commitments, “failing ■ One of the few remaining coal mining companies with its own stock-market list- SHARE PRICES AND EXCHANGE RATES ing, Duiker Mining Ltd of South Africa, made a net profit of R101.3 million in the June 1 Change on $ June 1 Change on $ six months to March 31, 1999, from total Company Local week % Dollar hi-lo Company Local week % Dollar hi-lo turnover of R1.02 billion. Duiker is 68%- Alcan Aluminium (C$) .....44.55 00.00–0.8 0.0 00.0030.20 0083 Placer Dome (C$) ...... 00.0016.10 –0.6 0.010.92 00.00 0032 owned by London-listed Lonmin plc. Alcoa ($) ...... 60.62 00.00 0.06.7 00.0060.62 0087 Reynolds Metals ($)...... 00.0056.31 0.8 0.056.31 00.00 0066 Alusuisse (SF)...... 1782.00 00.00–2.1 0.01176.24 00.00 0055 Rio Algom (C$)...... 00.0018.50 –1.1 0.012.54 00.00 0052 Earnings before exceptional items, and Anglo Amer. Corp. (R)...... 290.00 00.00–4.3 0.0 00.0046.70 0084 Rio Tinto Ltd (A$)...... 00.0021.85 –5.0 0.014.14 00.00 0060 adjusted to remove the effect of a deferred- Anglo Amer. Plat (R)...... 120.00 00.00–2.4 0.0 00.0019.32 0085 Rio Tinto plc (£) ...... 00.008.98 –6.8 0.014.32 00.00n/a 00 Anglovaal Mining (R) ...... 31.00 00.00 0.00.0 00.004.99 0033 Teck (C$)...... 00.0010.60 0.5 0.0 00.007.19 0019 tax credit, amounted to R25.1 million. Asarco ($) ...... 17.44 00.00 0.04.1 00.0017.44 0040 Trelleborg (SK)...... 00.0077.00 1.3 0.0 00.008.96 0024 ASA ($) ...... 16.63 00.00–1.8 0.0 00.0016.63 0019 WMC (A$) ...... 00.005.65 –6.5 0.0 00.003.66 0052 These figures were significantly higher than Ashanti Goldfields (£)...... 4.66 1.3 7.43 29 the corresponding results for the six months Ashton (A$) ...... 00.000.69 –8.0 0.0 00.000.45 0029 Barrick Gold (C$) ...... 25.05 00.00 0.01.6 00.0016.98 0045 to March 31, 1998, but the two first-half Battle Mt Gold ($) ...... 00.002.44 0.00.0 00.002.44 000 Broken Hill Pty (A$)...... 15.90 00.00–2.1 0.0 00.0010.29 0072 periods are not directly comparable as the Cleveland-Cliffs ($)...... 38.69 00.00 0.06.4 00.0038.69 0024 most recent period was boosted by Duiker’s Comalco (A$)...... 00.005.90 –2.3 0.0 00.003.82 0052 Cominco (C$) ...... 20.50 00.00 0.03.0 00.0013.90 0065 Share prices and exchange rates, as at close of business on acquisition of Tavistock Collieries, the coal Cyprus-Amax ($) ...... 13.38 00.00 0.04.9 00.0013.38 0059 Tuesday. 100 in the high/low column indicates that the share De Beers Centenary (R) ...137.00 00.00–5.6 0.0 00.0022.06 0079 is trading at a high in US$ terms, 0 that it is at a low. Figures business of the old JCI group (MJ, April 17, Delta Gold (A$) ...... 2.17 3.2 1.40 41 are based on dollar prices over the past 52 weeks. 1998, p.310). They are, however, indicative Echo Bay Mines (C$) ...... 00.002.43 0.02.5 00.001.65 003 English China Clays (£) ... 00.002.48 0.00.0 00.003.96 0097 of the current composition of the company, Falconbridge (C$) ...... 17.05 00.00–13.0 0.0 00.0011.56 0058 Freeport Mc C&G ($)...... 14.44 00.00–3.3 0.0 00.0014.44 0066 and Duiker notes that its earnings in the Gencor (R)...... 16.30 00.00–4.1 0.0 00.002.62 0090 second half of the current financial year (to GFSA (R) ...... 10.75 00.00–1.4 0.0 00.001.73 n/m 00 7.56 –4.0 7.56 0 Homestake ($) ...... 00.00 0.0 00.00 00 Currencies June 1 September 30) “should be in line” with Impala (R)...... 148.26 00.00–4.5 0.0 00.0023.87 0094 Inco (C$) ...... 22.65 00.00–4.2 0.0 00.0015.36 0066 Value of £ $(US) those of the first half. Further changes are JCI Gold (R)...... 00.005.00 0.06.4 00.000.81 004 $ (US) ...... 0.001.60 —– possible, as Duiker reports that it is willing Kerr McGee ($)...... 46.44 00.00–2.1 0.0 00.0046.44 0053 $ (Australian)...... 0.002.46 0.001.55 Kidston Gold Mines (A$) . 00.000.42 0.00.0 00.000.27 0033 $ (Canadian)...... 0.002.35 0.001.48 to dispose of its anthracite business (5% by Lonmin plc (£)...... 00.000.49 0.02.1 00.000.78 0088 Ringgit (Malaysian) Fixed official rate .. 6.06 3.80 Metallgesellschaft (ᇾ)...... 17.45 00.00–0.3 0.0 00.0018.15 0043 Franc (Swiss) ...... 0.002.42 0.001.52 weight of its total 13.5 Mt of coal sales in MIM Holdings (A$)...... 00.000.82 –4.7 0.0 00.000.53 0057 Krona (Swedish) ...... 0.0013.70 0.008.59 1997/98) and its small Klipwal gold mine if Newmont Mining ($)...... 17.50 00.00–3.1 0.0 00.0017.50 0023 Yen ...... 193.33 0.00121.21 0.00 Noranda (C$)...... 17.70 00.00–1.9 0.0 00.0012.00 n/m 00 Rand (SA) ...... 0.009.90 0.006.21 “acceptable” offers are forthcoming. The Nord Resources ($)...... 00.000.38 0.00.0 00.000.38 000 ᇾ (Euro) ...... 0.001.53 0.000.96 North (A$)...... 00.002.80 –5.7 0.0 00.001.81 0033 Markka (Finnish) ...... ᇾ1=Mk5.94573 0.00 0.00 combined carrying value of assets was writ- 9.90 –4.8 10.30 41 Outokumpu (ᇾ) ...... 00.00 0.0 00.00 00 Franc (French)...... ᇾ1=FF6.55957 0.00 0.00 ten down by a total of R30 million during Pasminco (A$) ...... 00.001.55 –5.5 0.0 00.001.00 0056 56.13 0.2 56.13 59 Deutschmark ...... ᇾ1=DM1.95583 0.00 0.00 the period under review. Phelps Dodge ($)...... 00.00 0.0 00.00 00

428 Mining Journal, London, June 4, 1999 MINING FINANCE which an insolvent liquidation of the corpo- ■ Vancouver-listed Foran Mining Corp. has dent and chief operating officer. He joined ration will ensue”. The company has three completed a private placement of 2.2 mil- Alcoa’s Brazilian affiliate in 1969, moving mining operations in the US and Mexico, lion units at C$0.75/unit. The gross pro- to the US in 1994 following promotion. Mr producing gold, silver and copper, and ceeds of C$1.67 million are designed to fund Belda is scheduled also to replace Mr defines its principal asset as the Pachuca sil- exploration drilling on the company’s O’Neill as chairman, when the latter retires ver mine in central Mexico. Real del Monte McIlvenna polymetallic property in from the Alcoa board in December of next was formerly known as Consolidated Saskatchewan (MJ, April 30, p.312). year. Nevada Goldfields Corp., and has stock list- ■ The emerging Australian base metals ■ The Thai zinc producer Padaeng Industry ings in Toronto and Germany. producer Murchison United NL has realised plc has appointed Pinit Vongmasa president ■ The US aluminium producer Reynolds approximately A$800,000 by relinquishing and chief executive, replacing Brett Metals Co. has filed a registration with the put options, covering 6,000 t of tin over 15 Lambert. Mr Lambert was seconded to the US Securities and Exchange Commission to months with a strike price of US$5,100/t. role last year from Western Metals Ltd as issue up to US$150 million in debt securi- The action was prompted by the fall in the part of a plan whereby the latter company ties. The funds raised would be used to pur- market price for tin, which made the was to invest in a large shareholding in sue acquisitions in Reynolds’ core alumini- options more valuable. Closure was based Padaeng, becoming its strategic partner in um and packaging businesses. Meanwhile, on a tin market price of US$5,380/t. the zinc business. However, Western Metals the company has assigned US$100 million Murchison owns the Renison Bell mine in announced earlier this year that it would raised from the sale of an alloys business to Tasmania, acquired last year, which pro- not complete the investment, leaving its repurchase common shares, following a pat- duced 2,296 t of tin in the three months to interest in Padaeng at just 13% (MJ, tern set last year (MJ, September 25, 1998, March 31, 1999, at an operating cost of February 26, p.144). Mr Pinit has experi- p.243). Raising new funds through debt A$7,759/t. Last month, Murchison closed ence with several large Thai companies, whilst using existing cash to buy back out its currency hedging positions to repay including Siam Cement. shares has not been uncommon among large a loan facility (MJ, May 28, p.408). ■ ■ William Doyle is to become chief execu- US companies in recent months, as low tive of Potash Corp. of Saskatchewan Inc. interest rates mean that successful applica- from the start of next month, replacing tion of this strategy increases earnings on a People Charles Childers. Mr Childers will remain per-share basis. chairman. Mr Doyle is currently president ■ Two European steel producers, British The Australian natural resources group and chief operating officer of the company. Steel plc and Dutch-based Hoogovens NV, Broken Hill Proprietary Co. Ltd (BHP) has ■ The Canadian diversified mining group have confirmed that they are in merger dis- appointed Marcus Randolph as president of Teck Corp. has appointed Steven Dean as cussions. Details were due to be released in minerals development, with effect from the president and chief executive of its new gold the next few days. Merger would create a middle of this month. Mr Randolph thus division. Teck indicated in April that it pan-European group with annual sales of fills the fourth position of those reporting would be grouping its gold assets under a around US$16 billion. directly to the new head of BHP’s entire ■ The Canadian gold producer Placer Dome minerals division, Ron McNeilly, following Inc. has completed its takeover of Denver- a restructuring at the start of this year based Getchell Gold Corp. The deal was (MJ, December 25, 1998, p.513). Following effected as a merger, qualifying under US experience with the Asarco and Rio Tinto accounting standards as a ‘pooling of inter- groups, Mr Randolph, a mining engineer by ests’ and thus avoiding any goodwill to be training, was most recently chief executive written off. Completion follows the of First Dynasty Mines Ltd, from which approval by shareholders in Getchell of position he resigned suddenly last month Placer Dome’s offer at the end of last year, (MJ, May 14, p.369). under which they will receive 2.45 shares in ■ The management changes at BHP follow Placer Dome for every share held in the widely-publicised replacement of both Getchell (MJ, December 18, 1998, p.487). the chief executive and the chairman in the ■ The Mozambican Government has for- past year. This month, the former chair- mally secured its 4% participation in the man, Jerry Ellis, was appointed to the Mozal aluminium smelter, currently under board of Aurora Gold Ltd of Australia, which construction near the capital Maputo, operates the Mt Muro gold mine plus a through payment of US$20 million. The number of projects in Indonesia. sum represents the government’s share of ■ The search precipitated by Marcus the US$520 million equity funding portion Randolph’s departure from First Dynasty of the total US$1.3 billion cost of the pro- Mines Ltd has resulted in the appointment ject (MJ, July 24, 1998, p.54). First produc- of John Lewins as acting president and chief tion is expected at the end of next year, ris- executive of the company. The chairman of ing to full capacity of 250,000 t/y in 2001. the company, Anil Agarwal, said he antici- ■ Australian-listed Orogen Minerals Ltd, pates the move “to be the first step in 51%-owned by the Government of Papua appointing Mr Lewins to this position on a New Guinea (PNG), has completed its pur- permanent basis”. Mr Lewins is promoted chase of an additional 5% interest in the from the position of senior vice-president, Porgera gold mine, in the PNG highlands, engineering and construction, in which role from the state-owned Mineral Resources he has been responsible for managing First Development Co. for Kn35.7 million (US$1 Dynasty’s key gold operations in Armenia. = Kn2.73). The deal, agreed earlier this ■ Alain Belda has been made chief execu- year (MJ, March 26, p.228), raises Orogen’s tive of Aluminum Co. of America Inc. interest in the mine to 20%. The company (Alcoa), replacing Paul O’Neill who also has the option to buy MRDC’s remain- remains chairman. Mr Belda, a Brazilian ing 5% interest. citizen, steps up from the positions of presi-

Mining Journal, London, June 4, 1999 429 MINING FINANCE

separate identity, and may eventually fol- chief financial officer of the Normandy low with a partial flotation of the business Mining group. The new gold division will (MJ, April 30, p.321). Mr Dean, who has also include Teck’s interests in its Hemlo also been made a senior vice president of gold operations in Ontario, and in the Pogo Teck Corp., is the founder of PacMin joint venture in Alaska plus other projects. Mining Corp. Ltd (formerly Camelot ■ The US copper producer Asarco Inc. has Resources), Teck’s Australian gold mining confirmed the planned retirement of its subsidiary. Teck merged its local gold assets chairman and chief executive, Richard into Camelot Resources early last year to Osborne (MJ, April 2, p.238), who has been give it a controlling interest. Prior to his replaced by Francis McAllister. Kevin involvement with Camelot, Mr Dean was Morano has succeeded Mr McAllister as president and chief operating officer, and Mr Morano is in turn replaced as chief financial officer by William Dowd, formerly the group’s controller. Meanwhile, Asarco’s 54.3%-owned subsidiary, Southern Peru Copper Corp., has made Charles Smith its president and chief executive. Mr Smith, formerly chief operating officer, has replaced Charles Preble who has retired. ■

430 Mining Journal, London, June 4, 1999