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Reliability is the point Noranda-Codelco hunt Rio Algom

Noranda has announced a C$1.5 billion cash on hand and credit facilities, and bid for Toronto-based Rio Algom and, Codelco from an external bridging loan if successful, will pass half of Rio of up to US$800 million. Both compa- Algom’s assets on to state-owned nies are seeking strategic benefits. For Corporacion Nacional del Cobre de the past few years, Noranda has been Chile (Codelco) at the same price. The divesting its assets to focus on mining, unsolicited bid by Noranda, which and has been looking to increase its already owns 8.9% of Rio Algom, is at exploration portfolio. Codelco, which is ht t p : / / w w w. e n s iv al - m o re t . c o m C$24.50/share – representing a 35% already the world’s largest copper pro- premium to Rio Algom’s share price of ducer, is seeking to extend its assets August 21, the day before the bid was outside Chile. Algom) and Phelps Dodge Corp. announced. Mr Kerr described the offer as “fair” (which has previously expressed an The offer is conditional on Noranda for shareholders of both Noranda and interest in Rio Algom and is keen to acquiring at least two-thirds of Rio Rio Algom. However, Rio Algom’s retain its status as the second largest Algom’s 60.6 million shares and the shares jumped by C$8 on the copper producer). company waiving its shareholder rights announcement to over C$26/share (a Not all analysts agree on the likeli- plan (which restricts the actions of hos- record high for the company), sig- hood of a higher bid. In a research note, tile bidders). nalling that the market expects a higher Tony Lesiak of HSBC sides with Mr Noranda’s chief executive, David bid to follow. Kerr, Continued on p.147 Kerr, said that Codelco had Potential rival bidders for Rio Algom approached him a month ago concern- include Billiton (which has expressed Rio Algom’s Spence copper project in northern ing a possible bid for Rio Algom, and an interest in adding copper to its port- Chile, showing the entrance to a 1,100 m decline that both companies would provide folio), Teck Corp. (which shares inter- for bulk sampling. (Photograph courtesy of Rio their own financing – Noranda from ests in several mines/projects with Rio Algom.)

Inside

• Kroondal triples output (p.147)

• Ashton drills deep JOURNAL (p.153) • Silver price falls London, (p.156) August 25, 2000 Volume 335 No. 8597 • AuIron lists in London (p.159)

Ltd in 1917. Following his education in of the group’s mines in the new Orange England, at Charterhouse and Oxford, Free State goldfield, which helped to Harry Harry Oppenheimer joined his father’s establish Anglo American as one of the company in Johannesburg in the early major mining houses and eventually as Oppenheimer 1930s. By that time, Sir Ernest had the world’s largest gold producer. also acquired a substantial interest in Harry Oppenheimer’s business career 1908 - 2000 De Beers, and had become its chair- was then joined by one in politics, with man, thus establishing the twin pillars his election as the Member of Harry Oppenheimer, former chairman of the family mining interests that Parliament for Kimberley in 1948 rep- of the Anglo American and De Beers endure to this day. resenting the opposition United Party. groups, died last Saturday at the age of Following active service in the South However, following the death of Sir 91. Harry Oppenheimer was born in African army during the Second World Ernest in 1957, Harry Oppenheimer Kimberley in 1908, son of Ernest (later War, Harry Oppenheimer became gave up his career in politics to devote Sir Ernest) Oppenheimer, who founded managing director of Anglo American himself to business (Comment, p.146). Established 1835 Anglo American Corp. of South Africa in 1945. He oversaw the development Continued on p.149 ISSN 0026-5225 http://www.mining-journal.com COMMENT Editor Roger Ellis B.Sc., C.Eng. Deputy and Finance Editor Family values Richard Morgan M.Sc., DIC, C.Eng. erhaps it is the selectivity of the The Zambian copper investment illus- Assistant Editor: Mineral Markets media, but those born into privilege trates some of the dilemmas inherent in the Andrew Thomas M.Sc., DIC Pseem generally to tend to one of two Oppenheimer philosophy. Critics may argue extremes: squandering the wealth and posi- that Anglo American is seeking to profit Assistant Editor: Industry in Action tion they inherit, or regarding these advan- from cheap labour in Zambia, just as it has Dominic Mercer M.Sc., DIC, FGS tages as carrying an inherent duty to use benefited elsewhere in Africa (and profited them wisely and constructively. Harry in the past from the unjust labour practices Production Oppenheimer (this issue, p.145) definitely required by apartheid law). This ignores the Susan Roberts fell into the latter category, continuing the realities of Africa: to pay Western wage Eileen Smith work of his father, Sir Ernest, and building rates would distort local economies, and Advertising Anglo American into South Africa’s domi- make projects uneconomic at African pro- Michael Bellenger nant mining and industrial group (where he ductivities. Frank Gordon was referred to by colleagues as ‘HFO’). Conversely, some investors, knowing Shelley Hannan HFO’s desire to serve the wider communi- Anglo American’s history, may regard the ty was evident from his time in politics, Zambian investment as an example of Marketing which was spent as a member of parliament shareholders’ returns being subordinated to Gareth Bowers for the opposition United Party. The domi- philanthropic aims. However, Anglo Carole Hoy nance of the National Party at that time American’s move to London in 1999, which Executive Director (just after the Second World War) meant HFO supported as a means of gaining that HFO had little hope of participating in access to the necessary international capi- Chris Hinde Ph.D., C.Eng. government, but his seat in parliament gave tal, has arguably increased the investment Mining Journal, published weekly, is available only as part of a him the opportunity to speak out against the disciplines within which that money can be subscription with Mining Magazine and Mining Annual Review. apartheid system of rigid racial segregation. spent. London is a more demanding investor Annual Subscription: Following the death of his father in 1957, environment than the Johannesburg that £247 (US$440) HFO opted for a full-time career in business, Anglo dominated, and this should help © Mining Journal Ltd 2000 judging that he could make a greater contri- ensure that both Sir Ernest’s aims are met. bution to the development of South Africa HFO’s opposition to the apartheid system Member of the Audit Bureau of Circulations through Anglo American and De Beers than placed him in a somewhat equivocal posi- as an opposition MP. However, he retained a tion, as a major beneficiary of South Africa’s WORLD GOLD political dimension to his business strategy, economy. He argued, quite rightly, that Paul Burton ACSM, M.Sc., MBA Helen Payne M.Sc., DIC such as the deliberate sale of General apartheid held that economy back, and that Mining to Afrikaner-owned interests in the all would benefit economically from its aboli- MINING MAGAZINE 1960s, which has been echoed by the tion. He also devoted a great deal of his own John Chadwick B.Sc. Des Clifford B.Sc. recent ‘black empowerment’ initiatives of wealth to charitable causes. In a warm trib- his successors. ute to HFO made this week, Julian Ogilvie SUPPLEMENTS/REPORTS HFO’s approach to combining his wider Thompson, chairman of Anglo American, Austin Wheeler B.Eng. ideals with running a company was best conceded that “there will always be those MINING ENVIRONMENTAL MANAGEMENT summed up by his repeated quoting of his who say he could have done more”. Tracey Khanna M.Sc., MCSM father that the aim of Anglo American is “to The choice was that faced by many others: CONSTRUCTION PUBLICATIONS make profits for its shareholders, but to do coexist with the system and try to change it Ian Clarke B.Sc. so in such a way as to make a real and per- and to ameliorate its effects, or intransigent Alan Kennedy B.Sc. manent contribution to the welfare of the opposition which may benefit those in the Mike Smith HND (Min.) countries in which it operates”. This ideal future but which may ultimately achieve RESEARCH SERVICES was pursued not just in South Africa, but nothing. The tributes from President Thabo Iris Moncrieff also in many other countries in southern Mbeki and other members of the African Editorial Consultant & Chairman Africa, later under the difficult circum- National Congress Party, which took the lat- Michael West B.Sc., F.Eng. stances of the isolation that apartheid ter course, have been more generous than Managing Director & Publisher brought to South Africa. HFO just lived to protocol demanded, suggesting that HFO Lawrence Williams B.Sc., C.Eng. see Anglo American return to Zambia earlier chose his own role wisely. They also demon- this year, where his father had first invested strate the political maturity of the modern in the 1920s. South Africa that he helped to create. MJ LEADING INDICATORS THE MINING JOURNAL LTD Change High- 52-week Change High- 52-week 60 Worship Street on week Low Max/Min on week Low Max/Min Share Indices Aug 23 (%) (%) HSBC Indices Aug 23 (%) (%) London EC2A 2HD FT 30 3,695 –0.7 31 4,087-3,521 (100 on 31/12/88 except*†) Tel: +44 (0)20 7216 6060 US Dow Jones 11,145 1.2 76 11,551-9,857 Global Mining 123 0.5 37 146-109 FTSE Gold Mines 732 –5.6 2 1,232-722 Global Diversified Mining 162 2.8 39 198-139 Fax: +44 (0)20 7216 6050 Australian All Mining 724 2.8 73 771-597 Smaller Mining Companies 48 0.6 30 59-43 E-mail: [email protected] South African Gold 999 –3.3 15 1,358-937 Global Base Metal Index 155 –1.9 24 204-140 Toronto Met/Min 3,572 2.8 21 4,749-3,266 North American Base Metal 361 –2.0 24 489-322 Subscription Dept: PO Box 10 Nikkei Dow 16,437 0.5 8 20,833-16,035 Global Gold Index 50 –4.9 3 78-50 Hang Seng 17,427 –1.7 88 18,096-12,476 Global Gold Ex S Africa 55 –5.3 2 85-55 Edenbridge, Kent TN8 5NE, UK North American Gold 62 –6.4 2 97-61 Tel: +44 (0)1732 864333 Commodity Prices Aug 23 Global Coal Mining† 156 –2.5 56 181-124 Gold (London) $272.90 –1.2 27 $324-254 Other Metals/Minerals† 299 3.5 100 299-219 Fax: +44 (0)1732 865747 Copper (LME) $1,851.00 –0.5 89 $1,877.5-1,640 Latin American Mining* 256 –1.1 69 286-190 E-mail: [email protected] Aluminium (U.S. prod.) 64.50c 0.0 25 69-63 Latin American (Ex CVRD)* 147 –2.8 37 184-125 Brent Blend (dated) $30.77 4.1 97 $31.16-19.66 *100 on 31.12.89 †100 on 31/12/85 Web Home Page: www.mining-journal.com

146 Mining Journal, London, August 25, 2000 MINING WEEK

undeveloped Spence copper deposit in Noranda-Codelco hunt Chile, 25% of the Alumbrera open-pit, cop- Rio Algom per-gold mine in Argentina (the other part- ‘Stock response’: ners being MIM Holdings Ltd with 50% a clarification Continued from p.145 and North Ltd 25%), and a 33.6% equity in British Columbia’s Highland Valley The recent editorial on the relationship noting that the offer represents a 29% pre- copper mine. The company’s other mining between metal prices and stock levels mium to HSBC’s net asset valuation (NAV) assets include the 1.6 Mlb/y Smith Ranch (MJ, August 18, p.126) drew on the pub- of C$19/share for Rio Algom, whereas most in situ leach uranium mine in the US and, lished views of Rio Tinto’s chief econo- of its peer companies are trading at a 13% in Canada, a 25% royalty in the Polaris mist, David Humphreys, putting forward discount to NAV. Mr Lesiak also describes zinc-lead mine (yielding a beneficial inter- the possibility that “the drawdown in the offer as “fair” for Noranda’s sharehold- est of 588,000 t of zinc in concentrate and stock levels may be overstating the actual ers, notwithstanding the premium offered. 168,000 t of lead in concentrate in 1999) deficits in the market, with metal that has He notes that the bid would improve and 29.1% of the 1.2 Mt/y Bullmoose coal left exchange warehouses going into trader Noranda’s appeal for large institutional mine. or other unreported stockholdings”. The shareholders, Noranda’s existing asset base Rio Algom’s Cerro Colorado mine pro- editorial went on in the same paragraph to in Chile could benefit from reinvestment duced 100,000 t of cathode copper in 1999, offer the possible explanation that tax credits not available to non-Chilean and the company’s share of Highland “traders may be doing this deliberately in bidders, and Noranda and Codelco both Valley’s output was 35,400 t of copper in an attempt to force prices higher”. have smelters within hauling distance of concentrate and 1.0 Mlb of molybdenum. Mining Journal would like to make Rio Algom’s Spence project in Chile. The one-quarter stake in Alumbrera con- clear that the comments on the possible Noranda can also be expected to benefit tributed 48,000 t of copper and 175,000 oz motives of traders for holding stocks were from a closer working relationship with of gold. The company’s proven and proba- its own, and did not form part of Mr Codelco. ble reserves include 194 Mt averaging 1.0% Humphreys’ stated views. Rio Algom produced 183,700 t of copper Cu at Cerro Colorado, 387 Mt at 0.42% Cu in 1999, and is expected to produce some at Highland Valley, 442 Mt at 0.35% Cu at 200,000 t (440 Mlb) this year at an average Alumbrera and 494 Mt at 1.3% Cu at The acquisition, and retention, of a 50% cash operating cost of US$0.46/lb, and up to Antamina. Rio Algom has copper resources stake in Rio Algom’s assets would double 540,000 t/y by 2005. The company’s assets of 53 Mt at an average grade of 0.43% at Noranda’s copper production to over include 33.75% of the Antamina open-pit Highland Valley, 35 Mt at 0.75% Cu at 500,000 t/y within five years, and would copper-zinc project in Peru, the wholly- Antamina and 398 Mt at an average grade immediately lift contained reserves from owned Cerro Colorado copper mine and the of 1.0% Cu at Spence. 6.4 Mt to 11.1 Mt of copper. Most impor-

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Mining Journal, London, August 25, 2000 147 MINING WEEK tantly, the acquisition would boost wholly-owned subsidiary of Amplats) will p.115) to raise R146 million towards the Noranda’s involvement in the US$2.3 bil- contribute certain of its UG2-reef mineral cost of developing Kroondal. KPM, which lion Antamina project, currently divided rights (adjacent to the current Kroondal has 36.6 million shares in issue, is currently between itself and Rio Algom, with 33.75% mine), while KPM will contribute the exist- trading at almost R26/share. each, Teck with 22.5% and Mitsubishi with ing mine and plant, and its own mineral A second complication is Aquarius’s 10% (MJ, October 22, 1999, p.335), to a rights. The mineral rights contribution existing arrangement with Impala, which controlling 50.6%. When completed in from RPM will lift the project’s in situ holds a 14.8% shareholding in Aquarius and 2001, this mine will be one of the largest resources to nearly 60 Mt of UG2 ore, and is 5.8% in KPM. Impala has a contract to copper and zinc producers in the world, designed to ensure a mine life of 13 years process Aquarius’s PGM output and the yielding 269,000 t/y of copper in concen- from the effective date of the joint venture. two companies deepened their relationship trate and 160,000 t/y of zinc in concentrate. The mine life may be increased by a further earlier this year (MJ, February 18, p.129) The Alumbrera mine is expected to average three years by the contribution of addition- in a strategic arrangement whereby Impala around 178,000 t/y of copper in concentrate al mineral rights by RPM. farmed out the development of its smaller and almost 590,000 oz/y of gold in concen- The partners intend to expand the exist- projects to Aquarius. The latter subse- trate over the next ten years. Spence has the ing plant from its current design capacity of quently acquired three properties from potential to yield up to 225,000 t/y of cath- 170,000 oz/y PGM (100,000 oz of platinum, Impala, in return for a 25.5% stake in ode copper and copper in concentrate, with 54,000 oz palladium and 16,000 rhodium) to Aquarius’s South African subsidiary, production commencing in 2004. 255,000 oz/y PGM (including 150,000 oz/y Aquarius Platinum SA, whose assets Rio Algom’s predators need little intro- platinum). A new concentrator, which will include the Marikana project to the east of duction. Codelco controls around 20% of be built next to the mine’s eastern decline, Kroondal (MJ, April 14, p.287). Impala the world’s proven and probable copper will have a similar capacity, so boosting this week reported its annual earnings (this reserves, and the company produced 1.62 Kroondal’s annual output to 510,000 oz issue, p.158). Mt of copper in 1999, representing 16% of PGM (300,000 oz platinum) from a total Aquarius has confirmed that the process- Western world copper output. Production feed of 5.4 Mt. ing contract with Impala will remain in in the first half of this year was 720,000 t. The budgeted capital requirement for the force but that the expanded PGM output Noranda has more than 30 mining and met- total expansion is R514 million, with the will be treated by RPM. The managing allurgical operations and projects under first R94 million being borne by KPM, director of Aquarius, Keith Liddell, com- development in eight countries, employing whereafter the expenditure will be split mented that the company is trying to main- over 17,000 people. The company’s assets equally between the partners. The develop- tain good relations with both of the major include the copper smelters of Altonorte in ment programme for the new concentrator South African platinum producers. Chile and Horne in Canada, the Brunswick is expected to be prepared and approved by and Bell Allard zinc mines in Canada, and the end of December, whereas plans for the New Madrid aluminium smelter in expansion of the existing plant are expected Indian World Bank coal Missouri, US. Noranda recently raised its to be approved within one month of signa- loan terminated stake from 49.1% to 50.1% in Falconbridge ture of the agreement (with construction (MJ, July 28, p.75), whose assets include commencing one month thereafter). The International Bank for Reconstruction nickel mines at Sudbury and Raglan in KPM will continue to operate the and Development (IBRD) – part of the Ontario and Quebec, respectively, the Kidd Kroondal mine and plant, with the two World Bank group – has terminated a soft Creek copper-zinc mine in Quebec, and a partners each nominating three representa- loan of about US$507 million to India’s 44% interest in the Collahuasi copper mine tives to the management committee of the state-owned coal company, Coal India Ltd in northern Chile. joint-venture project. The latter will take (CIL). The loan constitutes the second and effect from July 1, 2001, with KPM and final part of a total loan in excess of US$1 RPM each taking a 50% stake. KPM billion which was approved in 1997 jointly Kroondal to triple intends funding its initial R94 million capi- by the IBRD and its co-financier, the output tal obligation, and the later R210 million Export-Import Bank of Japan (JEXIM). share of the expansion, from internal cash The loan was intended to assist CIL to The Kroondal platinum mine in South flow and an increase in interest-bearing undertake a major coal-sector rehabilita- Africa is set to triple production of PGM to debt. tion project (CSRP) whereby 24 opencast 510,000 oz/y in a joint venture with Anglo Two issues complicate the arrangement coal mines were to be modernised and American Platinum Corp. (Amplats). The between KPM and RPM: last month, expanded to produce 112 Mt/y of coal. The agreement was announced this week by Aquarius announced plans to acquire the loan was approved by the respective boards Bermuda-registered Aquarius Platinum 55% of KPM that it did not already own of the IBRD and JEXIM on the under- Ltd, which owns 45% of the mine’s (MJ, July 28, p.72), and KPM has an exist- standing that the loan would be utilised in Johannesburg-listed operating company, ing smelting and refining agreement for two phases over a span of five years. The Kroondal Platinum Mines Ltd (KPM). Kroondal’s concentrate output with Impala loan was also conditional on the Indian coal Kroondal started commercial production Refining Services Ltd. sector being freed from government con- in September last year, and reached full out- Even ahead of this week’s expansion trols, that it would operate on a par with put within three months (MJ, December 3, announcement (an unusual occurrence by a international companies, and that it would 1999, p.451). In the financial year to June parent company during a takeover), attract investment from the private sector. 30, 2000, the company produced 80,172 oz Aquarius was facing dissatisfaction from The first phase of the loan which has PGM (including 49,299 oz platinum and institutional shareholders of KPM over the already been disbursed amounted to some 22,737 palladium) at an average grade of 2.1 merger share ratio of 1:1. This week, US$522 million and CIL was authorised to g/t with on-mine cash operating costs of Aquarius said that there had been a delay in apportion this to five of its subsidiaries – US$207/oz. KPM reported sales revenue of finalising the necessary documentation Central Coalfields Ltd (CCL) was given US$42.8 million for 1999/2000, with mining because of what were described as “techni- US$39 million, Mahanadi Coalfields Ltd income of US$24.2 million and a net operat- cal reasons”. KPM, previously wholly- (MCL) received US$49 million, Northern ing profit of US$15.4 million. owned by Aquarius, was floated on the Coalfields Ltd US$284 million, South- Under the proposed joint venture, Johannesburg Stock Exchange two years Eastern Coalfields (SECL) US$112 million Rustenburg Platinum Mines Ltd (RPM, a ago at R7.50/share (MJ, August 7, 1998, and Western Coalfields Ltd (WCL) US$38

148 Mining Journal, London, August 25, 2000 MINING WEEK million. Under the second phase of the loan, In the past, CIL has received three loans general public, a factor of great importance CCL was to have received US$35 million, from the IBRD, but all through the central to the group’s recent initiative to reinvent MCL US$46 million, NCL US$230 million, government. In 1984, it received US$151 itself as the seller of diamonds as branded SECL US$58 million and WCL US$35 mil- million for the development of the luxury goods. lion. A further US$103 million had been ear- Dudhichua coal mine in Singrauli, a loan of During the post-war period, he estab- marked for common purposes. US$248 million in 1985 to develop the lished relationships with the governments According to company sources in Jharia coalfield, plus US$340 million for the of other African countries, no mean feat giv- Calcutta, the second phase of the loan has expansion of an opencast mine in the Korba en the attitude of those countries to the not been terminated because of the failure coalfield and construction of an open-pit apartheid regime in South Africa, and from of the government to honour the terms and mine in Sonepur-Bazari. The 1997 loan was those relationships De Beers established conditions of the loan. Rather, it is said, the first time that a direct commercial loan some of its major diamond production, such CIL approached the World Bank with a from the World Bank was sanctioned to as its joint venture with the government of request to discontinue the disbursement CIL. Botswana. Under his chairmanship Anglo because it saw no logic in using borrowed American grew into the largest of the South funds to augment coal output at a time Harry Oppenheimer African mining houses, spreading into when few independent power utilities are industrial and financial investments as showing interest in signing coal-supply Continued from p.145 overseas opportunities were restricted by agreements. In addition to the restricted South Africa’s political isolation. demand from the power sector, the state- Meanwhile, Harry Oppenheimer had Harry Oppenheimer retired as chairman owned coal company and its subsidiaries are been busy with De Beers, commissioning in of Anglo American in 1982, and as chairman believed to have found the terms of the 1938 the first major marketing campaign of De Beers in 1984. He remained a director IBRD loan too onerous. It is also the case for diamonds in the US. This initiative of De Beers until 1994, having served in that the debt market is currently favourable helped to transform the public image of dia- that capacity for 60 years. Harry and it could prove more advantageous to monds, and to establish the now widespread Oppenheimer leaves his wife, Bridget, his borrow on a spot basis. convention that a diamond ring is the daughter Mary and his son Nicky, who is Meanwhile, neither the IBRD nor the appropriate present to mark an engagement chairman of De Beers and AngloGold, and Indian Government has been prepared to of marriage. The size and pattern of the (non-executive) deputy chairman of Anglo spell out the precise reasons for the cancella- modern international diamond market thus American. The fourth generation of tion of the remaining loan. A joint state- owes much to Harry Oppenheimer’s efforts. Oppenheimers is already working in the ment says simply that “We have mutually Another result of these marketing cam- family business: Nicky’s son Jonathan, one agreed to terminate the World Bank loan paigns is that De Beers is one of the few of five grandchildren, is with De Beers in its agreement signed for CSRP”. mining company names recognisable by the Johannesburg office.

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Mining Journal, London, August 25, 2000 149 FOCUS

fter a 4.3% decline in 1999, the prices basis, forecast refined consumption this of industrial raw materials are year is 14.64 Mt, and 15.52 Mt in 2002. Aexpected to increase by a hefty On the supply side, mine output in this 15.4% this year but the recovery is expected EIU metals year’s March quarter was 1.8% lower than to slow to 6.8% in 2001 and to just 3.5% in in 1999 but this was offset by an increase in 2002. These forecasts are contained in the scrap recovery. Despite the early decline in latest issue of ‘World commodity forecasts: forecast production, the EIU is forecasting that industrial raw materials’ published by mine capacity this year will expand by 17%, London-based Economist Intelligence Unit ALUMINIUM. The EIU has revised its ear- and that higher market prices for copper (EIU)*. The EIU’s industrial raw materials lier consumption forecasts. Recovery in will encourage the reopening of some redun- (IRM) price index is based on nine hard demand, it says, has gathered pace in 2000 dant mines. World refined output is forecast commodities, including six base metals and apparent consumption is now running at 14.43 Mt this year, 2.5% higher than in (which have a 65.1% weighting in the 8% higher than in 1999 at an annual rate of 1999, and further increases are projected for index). The slower growth next year and the more than 25 Mt. For the full year, con- 2001 and 2002, to 14.77 Mt and 15.18 Mt year after is largely attributed to the behav- sumption growth is forecast at 4.8%, reduc- respectively. iour of base metals prices. They are forecast ing to 4.2% in 2001 and to 3.1% in 2002. Western supplies of copper this year could to stagnate in 2001 and to decline in the fol- World consumption is forecast at 23.9 Mt be in deficit by some 280,000 t and the price lowing year, mainly because of anticipated this year whereas production is expected to is forecast to average US$0.80/lb, up from additions to capacity in the aluminium, cop- reach 24.4 Mt, with Western output fore- US$0.71/lb in 1999. Next year, the supply per and nickel sectors. cast to achieve a new high of some 17.9 Mt. deficit could be nearer 420,000 t and the In offering its forecasts, the EIU makes a The two largest projects are Alcan’s Alma price is projected to average US$0.85/lb. number of key assumptions in respect of the smelter in Canada and the Billiton-led ZINC. The EIU considers the medium-term global economy. It expects world growth Mozal smelter project in Mozambique. In outlook for zinc to be very favourable, with this year to average 4.7%, the most rapid addition, Alcan and Alcoa have both good prospects for vehicle and construction expansion since 1988, with all regions par- announced the restart of idled capacity. output both auguring well. However, it has ticipating in the recovery. A slow-down in There are some problems on the produc- made a large downward revision to its previ- the two following years is projected on the tion side. High power charges in the US ous forecast for US consumption – to year- assumption that the US economy will have led to some smelter curtailments but on-year growth of 5% as opposed to 10% weaken but, even so, world growth is still this is very much a seasonal problem. More last year. World consumption this year is expected to average a respectable 4.1%. serious has been a world shortage of alumi- now forecast at 8.63 Mt representing a 3.5%

*More information from Economist Intelligence Unit. Tel: +44 na feedstock over the past year which has increase, but follows 6% growth in 1999. (0)20 7830 1039. Website: http://store.eiu.com/wfdes.html forced some Chinese smelters, in particular, Consumption could reach 8.9 Mt next year to operate below capacity. The EIU expects and 9.16 Mt in 2002. that the major restructuring within the On the supply side, refined output Russian aluminium sector, which has led to remains strong and Western production is just two groups controlling the majority of forecast to grow by almost 6% this year, the Your Mining Information Source production (MJ, July 7, p.3), will cause main influence being the first full year of some short-term disruption to the flow of output from Korea Zinc’s new 170,000 t/y www.infomine.com metal to the West. Rising demand for alu- smelter at Townsville in Australia, together minium in Russia and China is also likely to with increases in Ireland and Spain. The most accessed mining have an impact, and net flow to the West Through the new 425,000 t/y capacity infinformation site on the internet next year is forecast at about 2.5 Mt which Century mine, Australia was also the major would be about 230,000 t lower than last contributor to the 7% jump in Western year. mine output during this year’s March quar- Daily News Supply and demand are expected to ter, along with the new 175,000 t/y Lisheen Investor Newsletters remain closely balanced until the mine in Ireland. Both should reach full December quarter, and the EIU attributes capacity next year. Elsewhere, the comple- Technology News aluminium’s current low price of just above tion of mill refurbishment at Cominco’s Red Company Database US$1,500/t (compared with US$1,730/t in Dog mine in Alaska and the Rio late January) to the market anticipating an Algom/Teck/Noranda Antamina joint ven- Property Database oversupply by the end of the year. There ture in Peru should augment mine output in might be a recovery in the short term 2001. Red Dog output is being raised by Supplier Database towards US$1,600/t but oversupply could 90,000 t/y, and at full capacity Antamina Careers push the price down towards US$1,450/t in will produce 170,000 t/y of zinc. the later part of 2001. The EIU notes the substantial increase in COPPER. Global consumption early this exports of zinc from China last year. They InfoMine is a single source of comprehensive, integrated news and year was 12.7% higher than in 1999 but the were 20% higher than in 1998 and China’s information concerning all aspects of worldwide EIU points to signs that demand is begin- total output of refined metal is now estimat- mining and mineral exploration. It is designed ning to slow in the US. Nevertheless, this ed at 2.7 Mt/y. Net Western zinc metal for both information seekers and should be more than offset by rapid growth imports were 18% higher year-on-year in information providers. in the emerging markets, and it is noted the 2000 March quarter, but are forecast to that China’s imports of copper concentrate decline slowly through 2001 and 2002. were 56.8% higher in the March quarter Total world refined zinc output is forecast InfoMine What can it do for you? compared with the corresponding period of to grow by 4.9% this year to reach 8.78 Mt, 1999. However, for the full year, world con- to slow to 2.1% growth in 2001 and then InfoMine - Robertson Info-Data Inc. Tel: +1 (604) 683-2037 sumption of refined copper is forecast to increase again in 2002, with production pro- Suite 640, 580 Hornby St. Fax: +1 (604) 681-4166 ease back considerably and overall growth Vancouver BC, CANADA V6C 3B6 E-mail: [email protected] jected to reach 9.34 Mt. of 3.2% is forecast. This could slow to 3.1% The EIU is forecasting a metal surplus of next year and to 2.8% in 2002. On this 70,000 t this year (compared with the previ-

150 Mining Journal, London, August 25, 2000 FOCUS ously forecast 20,000 t deficit) but expects that the collapse in lead prices during the rapid rise in demand and with expectations to see a small deficit of 10,000 t developing first four months of 2000 was overdone – the of continued strong demand growth, the EIU next year. Its average price forecast for 2000 LME cash price touched a seven-year low of expects that supply problems will continue is now much lower than previously, at US$0.18/lb (US$399/t) at the end of April. to impact adversely on stocks. The market is US$0.53/lb (US$1,168/t). However, zinc’s For the full year, prices are expected to aver- expected to remain in deficit in the short improving fundamentals could see an aver- age US$0.20/lb. Next year, they are forecast term and nickel prices could move above age of US$1,240/t next year. to return to the 1999 average of around US$4.00/lb (US$8,818/t) for the rest of this LEAD. The prospects are more subdued. US$0.23/lb. year. Prices should then ease as production Demand growth is unlikely to exceed 2% NICKEL. Strong stainless steel production levels rise and when output finally overhauls this year and should be only modest has helped boost demand for nickel, and the consumption again in 2002, prices are fore- through 2001 and 2003 – below the expected EIU expects primary consumption of nickel cast to return to levels around US$3.00/lb. rate of growth for the global economy. to rise by 5.6% this year and exceed 1.0 Mt. TIN. This material is benefiting from strong World refined consumption is forecast at Growth could slow to around 3.6% through industrial growth in the main tin-consum- 6.31 Mt for 2000 and is projected to reach 2001 and 2002, however. ing economies, and demand for tinplate has 6.61 Mt by 2002. Over the same period, In terms of supply, the EIU says that the been especially strong. The medium-term refined annual production is forecast to rise outlook “has become bleaker” because of a outlook is also deemed to be favourable and from 6.35 Mt to 6.67 Mt. The main influ- combination of labour and technical prob- the EIU is forecasting a 3% increase in ence on supply remains the high volume of lems. There have been production losses world refined tin consumption this year to exports from non-Western sources – largely in Canada at the core operations of 251,000 t. Growth could slow thereafter, China and Kazakhstan, both of which con- Falconbridge and Inco, and at three of the with consumption in 2002 likely to be of the tinue to process a large quantity of Western new lateritic nickel projects in Australia order of 258,000 t. concentrates. The EIU notes a tightening in technical hitches have meant that output The supply of tin has become increasingly the concentrate market over recent months thus far is much lower than expected. dominated by China. Last year, Chinese and an accompanying decline in spot treat- Nevertheless, refined Western production production jumped by 17% to 92,000 t and ment charges. It says that while Western this year is expected to reach 780,000 t, in the first four months of 2000 refined out- mine output has risen only marginally, with which would be almost 10% higher than in put totalled 32,000 t. Western refined pro- new mine capacity offset by production cut- 1999, and by 2002 Western output could rise duction has stagnated at 150,000 t, and backs in the US, primary smelter require- to as much as 890,000 t. Net imports to the mined output is now dominated by just two ments have grown rapidly. West are estimated at 244,000 t this year, countries, Indonesia (46,000 t in 1999) and The lead market was in surplus by some with a rise to 248,000 t for 2001. Peru (30,000 t). The EIU expects that 111,000 t last year and there could be a sur- Thus far in 2000, increases in primary China will remain the wild card in the tin plus of about 55,000 t in 2000. The EIU says nickel supply have fallen just short of the market.

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Mining Journal, London, August 25, 2000 151 TECHNOLOGY TODAY

Lambert port facility and the triggering facilities. The set up of the development of the West Angelas iron unit is controlled by the Windows- ore mine (MJ, March 31, p.242). Rio based Setwise software, and can be Ausmelt and Tinto recently announced that it is downloaded to a PC either locally or acquiring the balance of North shares via a modem. that it does not already own (this Patrick Neal, Grant Instruments issue, p.160). (Cambridge) Ltd, Shepreth, Thiess sign The other two contracts have Cambridgeshire SG8 6GB, UK. Tel: been from the New South Wales +44 (0)1763 260 811. Fax: 262 410. coalfields. At Port Waratah, Voest E-mail: [email protected] will build the world’s largest Website: www.grant.co.uk reclaimer for the Coal Export MoU terminal. At Callide, the company will supply a portal frame scraper Beeshoek on Smelting and furnace specialist refinery in Brazil. In the past, reclaimer and a slewing and luffing Ausmelt Ltd and integrated Worley has worked on a number of type stacking machine. schedule engineering service provider Thiess projects for companies such as Roxon Oy, Keskikankaantie 19, Pty Ltd have signed a memorandum Alcoa, Robe River Associates, FIN-15860 Hollola, Finland. Tel: Humboldt Wedag (SA) reports that of understanding to examine the Kalgoorlie Consolidated Gold Mines +358 205 44181. Fax: 44180. Website: installation of two of its Batac® air- market for a new spent pot lining and WMC. www.roxongroup.com pulsed jigs at Assmang’s Beeshoek (SPL) treatment technology. Worley Chemicals and Minerals, iron ore mine in South Africa’s Ausmelt and Alcoa developed the PO Box 7637, Cloisters Square, Northern Cape Province is on technology to treat the spent pot Perth, WA 6850, Australia. Tel: +61 schedule. One jig will be used to linings produced by the aluminium (0)8 9278 8111. Fax: 9322 7444. BGS uses process lumpy ore and the other smelting industry (MJ, May 19, E-mail: Squirrel to fines. The Batac® system uses an p.399). Ausmelt and Thiess will [email protected] under-bed air pulse to lift and initially review the potential to Website: www.worleylimited.com monitor landfills segregate material by density provide Australian smelters with a without the need for heavy media, solution to the major environmental The British Geological Survey is which, according to Humboldt problem posed by SPL. Alcoa joins using a Squirrel 1600 data logger in a Wedag’s senior project manager, Bob SPL is classified as toxic waste as monitoring project designed to Menzies, offers both capital and it contains significant quantities of FreeMarkets evaluate the effectiveness of clay operating cost savings. toxic materials including cyanide- liners in controlling landfill The turnkey project includes the forming materials and fluorine. In Alcoa Inc. has entered into an emissions. According to BGS, the two jigs, screens, bucket elevators and Australia, most of this waste is agreement with on-line business-to- unit was selected because the logger materials handling systems and is consigned to long-term storage and, business (B2B) auction site could serve multiple roles and be scheduled for completion early in 2001. as such, represents a significant long- FreeMarkets.com. The site stages used beyond its immediate Ken Tuckey, Humboldt Wedag term environmental liability for auctions for a range of raw materials requirements and it is well suited to (SA) Ltd, PO Box 8460, aluminium producers. Ausmelt and services ranging from coal to both field and laboratory use. The Elandsfontein 1406, South Africa. estimates that globally, the printed circuit boards. It works with BGS is currently using the system to Tel: +27 (0)11 397 4660. aluminium industry produces some purchasers’ procurement record environmental parameters, 600,000 t/y of SPL. departments to specify their needs including gas and water temperature Jim Fogarty, Commercial and communicate these and pressure in a landfill liner at Atlas Copco Manager, Ausmelt Ltd, PO Box requirements to several potential Kettering in Northamptonshire to 1003, Dandenong 3175, Victoria, suppliers. The suppliers then try to establish the conditions under gains ISO Australia. Tel: +61 (0)3 9794 6200. compete in a downward-priced which gas will move. The unit is Fax: 9794 9411. auction whereby suppliers continue to powered by gel-batteries, and 14001 E-mail: [email protected] lower their prices until the auction is samples around the clock at rates Website: www.ausmelt.com.au closed. ranging from one minute to two Atlas Copco Rock Drills AB has Alcoa began trials with hours depending on the resolution been accredited with the ISO 14001 FreeMarkets system in January and, required. Environmental Management Worley acquires as a result of the agreement, plans to According to Grant Instruments Standard. The standard applies to source raw materials and services for Ltd, the manufacturer of the the company’s Orebrö facilities in T&R its operations globally. According to Squirrel 1600, the unit can accept 24 Sweden and includes the the company’s vice president for single end or 16 differential inputs, development, manufacture and Multidisciplinary engineering procurement, Kevin McKnight, and also features eight relay and marketing of its surface and services company Worley Resources “FreeMarkets is one of a number of FET outputs for generating control underground equipment for the & Energy has acquired Australian complementary B2B solutions Alcoa and alarm signals. The unit features construction and mining industries. minerals design and technology is using to generate value. We are high-capacity non-volatile flash company Toussaint & Richardson looking forward to achieving memory and PCMIA capability A Voest-Alpine reclaimer in action at (T&R). Worley says that it has additional savings through which allows it to store high volumes Hamersley Iron’s Parker Point acquired T&R in order to develop its FreeMarkets”. of data subject to sophisticated operations. presence in the chemicals and Website: www.freemarkets.com minerals sectors. According to John Grill, the company’s chief executive, “T&R is an industry leader with an impressive record in the alumina and Voest-Alpine other chemical and minerals wins Australian industries both in Australia and in key global markets”. orders The combined business will be known as Worley Chemicals & Voest-Alpine Materials Handling, Minerals. According to the company, part of the Roxon Group, has the new unit has already secured received its third large order from new business. At the Ravensthorpe Australia this year. The latest order, nickel project, Worley Chemicals & from North Ltd, entails the design, Minerals has formed a joint venture supply and installation of two mine with SNC-Lavalin for the project’s stackers, one mine reclaimer, one front-end design phase. The port reclaimer, three port stackers company is also working on the and a shiploader. The contract forms conceptual design of an alumina part of the upgrade of the Cape

152 Mining Journal, London, August 25, 2000 INDUSTRY IN ACTION

3.06% Zn, 0.16% Cu, 20.9 g/t Ag and down-hole distance, at a grade of 4.7 has identified a number of further 0.81 g/t Au. ct/t. The hole was designed to test the targets parallel to, and in the vicinity Exploration At the Victoria Mine property, Central Vent area of the AK1 pipe, of, Nyafé. purchased from Noranda late last and the company reports that the year (MJ, December 17, 1999 p.481), hole confirmed that the Central Vent Paititi deposit model Raleigh results from Celtic holds a 20 km2 area, on which it is larger than initially modelled. has defined several targets for Ashton’s chief executive, Doug confirmed Goldfields drilling. Bailey, says that the company expects Eaglecrest Explorations Inc. reports Goldfields Ltd, of Australia, reports Inmet may earn a 55% interest in future drilling results to “identify the that a diamond-drilling programme that continuing drilling operations at the properties over a five-year period potential for the Argyle mine life to currently in progress at its San Simon its Kundana gold mine in Western by spending C$2.5 million on extend beyond the earlier estimate of gold property in Bolivia has Australia have intersected further exploration, and paying Celtic 2018”. Mr Bailey, with implications confirmed a stacked vein system extensions to mineralisation in the C$120,000 in cash. In the first year for the value of the offer made by De deposit model for the Paititi Raleigh deposit at the mine. Better of the agreement, Inmet has Beers, says that the results “strongly mineralised zone. Paititi is the site of results are as follows: committed C$100,000, with Celtic as support our belief that the market has artisanal gold mining, and the operator. long underestimated the value and company is drilling along the Hole Interval Au potential of Ashton and its stake in planned route of an adit to provide (m) (g/t) Barrick exercises the Argyle mine”. The company access for underground bulk SICD007 97.6-98.9 53.4 discovered the diamond-bearing sampling. The drill-holes were SICD014 115.9-117.0 66.8 IMA option lamproite body late last year (MJ, intended to be shallow, but SICD029 311.08-312.90 52.9 Barrick Gold Corp. has exercised November 19, 1999, p.412). favourable geology allowed one to SICD033 45.0-47.0 49.2 warrants to purchase shares in IMA continue to 193 m depth, intersecting SICD037 48.0-56.0 16.0 Exploration Inc., a company Tabletop jv two new zones of gold mineralisation incl. 48.8-0-50.0 54.0 exploring for gold at the Rio de las at 92 m and 123 m down-hole, Taguas and Potrelillos properties in amalgamation? confirming the stacked vein system The company recently announced the Valle del Cura, close to its Pascua- Caldera Resources Inc. reports that model. an increase in resources at Kundana, Lama project on the border of Chile its Tabletop diamond property in Eaglecrest’s president, Gary Cope, attributed to the Raleigh deposit, and and Argentina. Barrick was granted Western Australia, subject to results says that visible gold has been the recent drilling has extended the the option to purchase the shares over from a drilling programme to be observed in drill-core from 161 m surface strike length of the Raleigh a year ago (MJ, June 11, 1999, carried out by De Beers’ Australian depth. The company has retained vein by 40 m to a total of 640 m. The p.436), and IMA believes that the subsidiary, Stockdale Prospecting Kilborn Engineering Pacific Ltd to vein extends over the Kundana lease major company’s decision to purchase Ltd, may be amalgamated into the create a three-dimensional model of boundary onto the East Kundana further shares reflects IMA’s success existing Tabletop East joint venture the various zones and mineralised joint venture tenements, where during recent exploration between the two companies. structures of the Paititi area. Goldfields is earning a 51% interest programmes, funded by Barrick’s Tabletop covers 625 km2 in ten from Rand Mining NL and Tribune share purchases last year. The exploration licence areas and, if linked Camamuya earn-in Resources NL. Peter Cassiday, programmes identified “several with the Tabletop East area, the managing director of Goldfields, says targets”, according to IMA. The combined area would cover 4,650 km2. First Point Minerals Corp. has that the recent drilling results exceed funds from the recent share purchases The agreement allows Stockdale to completed a diamond-drilling the company’s expectations, as will be used to finance exploration drill at least three targets within the programme at the Cacamuya gold intersections indicate that the vein is programmes scheduled to commence Tabletop area, and allows it to elect property in southern Honduras, three times as thick as that currently in October this year. to combine the two properties within fulfilling the conditions for its right being mined at Kundana. Barrick now has a further year to six months of completion of drilling. to earn a 60% interest in the decide if it will continue with an Tabletop East is subject to an earn-in property from Breakwater Resources. Crediton to sell option to earn an interest in either of schedule of A$1 million to be spent by Under the terms of the arrangement the Valle del Cura properties. Stockdale before September 29, 2001 between the two companies, Devon licence for a 51% interest. If the Tabletop Breakwater is now required to fund MinMet plc reports that its Finnish entry for property is amalgamated, its 40% share of all future exploration subsidiary Crediton Minerals plc is to expenditure would rise to A$2 million expenditures, or be diluted. Peter be developed as a provider of finance Tertiary and the deadline would be extended Bradshaw, First Point’s president and to natural resource companies Tertiary Minerals plc has made two by one year. Stockdale could then chief executive, says that the worldwide. The restructuring will claim reservations in Finland for the earn an additional 19% interest by company was restricted in its recent involve the sale of the Crediton rare metals tantalum and caesium. spending a further A$4 million. exploration programme, as it exploration licence in Devon, Tertiary commissioned the Finnish reached the earn-in expenditure limit. England, where Crediton has been Geological Survey to complete a Further targets remain to be drilled, trying to prove the existence of confidential study into the potential Nyafé assays as well as mapping, geochemical commercial quantities of gold for rare metals mineralisation in Montreal-based SEMAFO has sampling and trenching on a number mineralisation (MJ, February 4, Finland. The first, an 8 km2 area, received assay results from reverse- of targets. p.90). The licence is to be sold to covers a pegmatite on Kemio Island circulation drilling in progress at its The drilling tested extensions to MinMet through an inter-company in southwest Finland, where the 75%-owned Mana and Fobiri the Cerro Chachagua and D4 balance. Finnish Geological Survey has properties in Burkina Faso. The two mineralised zones, described by First identified a number of pegmatite properties contain the Nyafé Point as classical epithermal-type Celtic-Inmet dykes. The second claim reservation mineralised zone, mainly within vein mineralisation occurrences. The has been made over the Viitaniemi Mana. The drilling is designed to company has also discovered the Filo agreement pegmatite in the Erajarvi district of follow up results generated by Lapa prospect, one of several large Celtic Minerals Ltd has signed a southern Finland. The flat-lying previous drilling and geochemical soil geochemical anomalies within the joint-venture agreement with Inmet pegmatite is 100-130 m wide and surveys, and intersected the following property, where gold-silver Mining Corp. regarding the Victoria about 10 m thick, and extends over at better results: mineralisation has been found. Mine, Sutherlands Pond, Hungry least 500 m of strike. Hill and Hungry Hill East properties Hole Interval Au Drilling confirms in the Victoria River area of central Ashton drills deep at (m) (g/t) Newfoundland. Hungry Hill is a RC-53 89.0-96.0 10.28 Wolverine continuity Argyle RC-55 54.0-63.0 4.60 The joint-venture partners at the 50:50 joint venture between Celtic RC-58 97.0-102.0 12.07 and Jilbey Enterprises Ltd, and Ashton Mining Ltd, the subject of a Wolverine base metals deposit in 2 RC-62 62.0-65.0 8.70 covers about 70 km , located 15 km hostile takeover offer by De Beers RC-65 142.0-146.0 15.90 Canada’s Yukon, Expatriate southeast of the Buchans mine. Celtic (this issue, p.157), has released results Resources Ltd and Atna Resources interprets the geology as being from a deep-drilling programme at its The Nyafé zone is still open in all Ltd, report that an infill-drilling favourable for hosting volcanogenic 40.1%-owned Argyle diamond mine directions, and comprises three programme has been completed on massive sulphide-type deposits. in Western Australia. The company separate main zones of the deposit. The programme was Previous drilling at Hungry Hill reports that a deep diamond drill-hole mineralisation, continuous over 1.4 designed to test a horizontal slice of intersected 10.8 m at a grade of intersected lamproite over a 392 m km. SEMAFO reports that mapping the Wolverine mineralised zone in the

Mining Journal, London, August 25, 2000 153 INDUSTRY IN ACTION area of the proposed underground company at no time made a definite reports that the pilot plant returned Peru plans Bayovar test-mining exercise planned for the decision to mine the mineralised generally better recoveries than Lynx zone. The partners report that, material, and any such decision in the earlier bench-scale tests. Mineral sale – again in general, the thicknesses of future is “very unlikely”. Candelaria, recoveries were: Pt 76.9%, Pd 79.6%, The Peruvian Ministry for Energy mineralisation intersected were as situated between 500 m and 800 m Co 42.0%, Au 75.7%, Cu 93.7% and and Mines is to sell a concession to expected, and the new core samples from Mr Navarro’s land, is an open- Ni 69.0%. The pilot plant used an 839 develop the Bayovar phosphate provide additional geotechnical pit operation, with no plans to go kg sample derived from 33.5 t of deposit in December this year. The information for planning and underground, says Mr Prokop. reverse-circulation drill cuttings. project was offered for sale over two contracting the underground A regional court found in favour of and a half years ago but, although a development programme. Mr Navarro last year (MJ, June 4, Lisbon Valley number of bidders were said by the A consortium of Hatch, Pincock 1999, p.421), but an appeal court government to have pre-qualified for Allen & Holt and BGC Engineering overturned the verdict in November, reserve grows the sale, no deal went ahead. The sale has been selected to conduct the and Mr Navarro took the case Summo Minerals Corp. has raised the was extended at the request of prefeasibility engineering study of (unsuccessfully) to the Supreme estimate of proven and probable potential bidders, who required more the project. Strathcona Mineral Court. reserves at its Lisbon Valley copper time to evaluate the property, Services is compiling a resource project in Utah to 36.7 Mt at a grade estimated at that time to contain 262 review, and mine design for the Kudz Halmahera resource of 0.51% Cu, using a copper price of Mt of resources (MJ, February 20, ze Kayah open-pit and Wolverine US$0.90/lb. The increase is the result 1998, p.145). Recent reserve underground operations is being jumps of the inclusion of new mineralised estimates quoted by Reuters put the optimised. Weda Bay Minerals Inc., developing a material discovered at the Centennial Bayovar deposit at 800 Mt. lateritic nickel-cobalt deposit on the deposit earlier this year (MJ, March Indonesian island of Halmahera, has 24, p.229). The reserves are contained Romania tenders increased the indicated and inferred within three fully-engineered pit Development resource estimate for the project by outlines, according to Summo, with mine concessions 73%, or 85.3 Mt, to 202.3 Mt (dry) at complete ramp access. Romania’s official gazette has a grade of 1.37% Ni and 0.12% Co. The use of current economic published a decree from the Agency Roan Antelope The increase is due to work at two parameters has caused the for Mineral Resources (AMR), deposits: drilling at the Santa Monica reallocation of some previously stating that concessions of up to 20 development deposit to establish an inferred defined ore to waste, requiring the years for five mines are to be Roan Antelope Mining Corp. plans to resource was completed, and 75.8 Mt slight modification of the pit outlines. tendered, with the closing date set at develop a new copper-cobalt project at a grade of 1.38% Ni and 0.12% Co The company is expecting a current 90 days from July 31. The on the Zambian Copperbelt. The has been defined; at the Big Kahuna feasibility study to be completed by commodities to be mined include project, Muliashi North, is based on deposit, the inferred resource the end of this month, and this will be platinum group metals and nickel at seven orebodies, of which three will be estimate has been revised to 40.4 Mt used to arrange financing for the 183.5 km2 Rudaria-Urda Mare developed initially. Roan Antelope at a grade of 1.32% Ni and 0.17% Co. construction. The mine plan mine. The concessions are the latest in plans to use heap leaching- The resources are contained within currently forecasts at least nine years the AMR’s series of tenders, which electrowinning technology to exploit 11 target areas: Area 2, Uni-Uni Hill, of production at Lisbon Valley, began following a change in the the oxide caps. Tarzan Hill, Sake River, Sake River producing just over 18,000 t/y of mining law, allowing foreign A spokesman for Roan Antelope, West, Lipe River, Jira River, copper. ownership (MJ, March 26, 1999, Kaulanda Nyirenda, told Reuters’ Casuarina, Orchid, Santa Monica and p.206). Lusaka correspondent that US$57 Big Kahuna. At Santa Monica, the Another licence for million in finance would be made upper limonitic portion contains an Pasminco asks court available by the Export-Import Bank inferred resource of 47.5 Mt at a grade Diavik of India to procure equipment for the of 1.22% Ni and 0.17% Co, with an After receiving authorisations and to dismiss action project. Roan Antelope is controlled MgO content of 4.8%. approvals from the Department of Pasminco Ltd has applied to the by the Indian group Binani Samples from the Santa Monica Fisheries and Oceans (MJ, August Supreme Court of Victoria, Australia, Industries, following the privatisation deposit are being tested for 18, p.134), Diavik Diamond Mines to dismiss proceedings related to a of the Zambian copper industry (MJ, metallurgical characteristics at Inc. (DDM), the Rio Tinto class action involving the company’s February 12, 1999, p.97). Hydrometallurgy Research subsidiary and operator of the joint smelter operations at Cockle Creek in Laboratories in Brisbane, and further venture between Aber Diamond New South Wales and Port Pirie in Phelps Dodge wins samples are being taken from Area 2 Mines and Rio Tinto developing the South Australia. The company is and Uni-Uni Hill, which form part of Diavik diamond project in Canada’s questioning the appropriateness of a Candelaria lawsuit the coastal deposits at the project. Northwest Territories, has received judgement by a Victorian court in a The Supreme Court of Chile has ruled These coastal deposits contain the Type ‘A’ water licence for the matter involving applicants who do in favour of Phelps Dodge Corp. in an slightly higher grades of project. The licence contains terms not reside in the State. In addition, it appeal by a landowner who sold mineralisation, at up to 1.7% Ni and and conditions governing the design, is challenging the validity of the court ground to the Candelaria mine at the 0.08% Co, with an MgO content of construction and operations of rules that relate to group proceedings, start of the 1990s. Phelps Dodge about 14%. various project activities and as well as maintaining that it cannot acquired an option to buy Rene engineered structures. Now that the be established that people at Cockle Navarro’s land in 1989, at a price of PolyMet proves company is aware of these terms and Creek and Port Pirie have US$150,000 and a royalty of US$3 on conditions, it will progress with the experienced the similar circumstances every tonne of ore extracted from the NorthMet process evaluation of the licence, which it necessary to establish a class action. land. The option was exercised in PolyMet Mining Corp. reports that a estimates will take several weeks. The Supreme Court has fixed 1991. However, Phelps Dodge’s pilot plant programme of a DDM understands that the November 2 as the date of the hearing spokesman, Rodney Prokop, says that hydrometallurgical process for administration of the licence passes to of Pasminco’s application. exploration work since the acquisition recovering non-ferrous metals from the Mackenzie Valley Land and of the ground, combined with falling material at the NorthMet project, Water Board, which is responsible for Canyon study points copper prices in the years since the conducted by Lakefield Research ongoing approvals of the project. acquisition, has rendered the Laboratories, has yielded better- to cyanide leach mineralisation, which lies at 300 m than-expected results. NorthMet is a Canyon Resources Corp., 100%- depth beneath the land, uneconomic polymetallic joint venture between Bulgarian upgrade owner of the Seven-Up Pete Joint to extract. Consequently, the PolyMet and North Ltd, recently A Greek copper processor, Halcor, is Venture, has submitted a report to Candelaria mine management decided taken over by Rio Tinto plc (MJ, to invest US$64 million in an idle the Montana Department of Natural to use the land for a waste dump. August 18, p.139). NorthMet is copper products plant in Bulgaria. Resources and Conservation Mr Navarro contended that the estimated to contain 411 Mt at a Halcor will make the investment, regarding the method of mining the company had violated the contract by grade of 0.2% Cu, 0.07% Ni, 0.07 g/t through its Sofia Copper AD McDonald and Seven-Up Pete gold- not paying royalties, and asked for the Pt, 0.25 g/t Pd and 0.04 g/t Au (MJ, subsidiary, over the next three years silver deposits in Lewis and Clark land to be returned to him, cleared of June 16, p.470). in order to restart the suspended County, Montana. The company, the 120 Mt waste (the cost of clearing The process being evaluated by facility, and will close down one of its which bought out joint-venture was estimated at over US$600 Lakefield is a pressure-oxidation Greek plants and move production to partner Phelps Dodge in 1997, million). Mr Prokop says that the route, named Platsol, and PolyMet Bulgaria. believes that an open-pit operation,

154 Mining Journal, London, August 25, 2000 INDUSTRY IN ACTION using cyanide leaching, is the only interest, as well as issuing just over 6 that the Con mine was recently and 70,000 t of lead concentrate economic way of exploiting the million shares. granted a new six-year water licence annually, and is due to reach full deposits, and commissioned a team of by the Northwest Territories Water capacity by the end of next year. ‘technical specialists’ to review Board. The licence covers all key different processing routes for the URI gains more time environmental aspects for the mine. material. The team’s report found The Ux Weekly reports that Uranium The licence calls for an annual deposit Mark of respect that the cyanide route was the only Resources Inc. (URI) has raised of money towards a total The Hudson Bay Mining and economic method of the nine options enough funds by private placement to environmental bond of C$9 million, Smelting Co. closed its Flin Flon examined, which included seven continue restoration of the Kingsville the amount estimated to be required smelter for a day on August 10, as a different open-pit scenarios and two Dome and Rosita mines in southern for abandonment and restoration mark of respect for a worker who died underground options. Texas. The company has also recently from injuries received in an explosion Unfortunately for Canyon, voters signed a letter of intent with the Pechiney signs at the facility on August 8 (MJ, in Montana two years ago approved Texas regulatory authorities and August 11, p.113). The company’s an initiative (I-137) which banned the URI’s bonding company, designed to Bauxilum agreement spokesman, Dale Powell, says that use of surface cyanide leaching in new allow access to US$2.3 million of The French metals producer, the facility reopened on August 11, or expanded mines in the State (MJ, URI’s funds. Pechiney, which won the selection and lost about 1,000 t of copper November 20, 1998, p.407). The The agreements, when finalised, process earlier this month for the production, which would be made up company filed a lawsuit against should allow URI to operate for at programme to upgrade Venezuela’s within a year. Montana earlier this year (MJ, April least another five months. Bauxilum bauxite and alumina 21, p.306). Canyon states that I-137 producer (MJ, August 11, p.103), has has deprived Montana and its signed a memorandum of San Francisco record inhabitants of large sums of royalties understanding to invest in the Geomaque Explorations Ltd’s San and taxes, and employment. Production company. The agreement requires Francisco gold mine in Mexico Pechiney to invest about US$250 achieved a record output in the June DRC cancels rough million to increase alumina output 2000 quarter, 19% higher than in the Kaltim Prima from the current 1.7 Mt/y to 2.2 June quarter of 1999, at 20,826 oz. diamond licences Mt/y. Pechiney would then have the The company attributes the The Democratic Republic of Congo resumes output right to buy any alumina produced in production improvement to increased (DRC) has revoked all licences to buy The operations of PT Kaltim Prima excess of 1.7 Mt/y for between four crusher throughput, with more than 2 and export rough diamonds, effective Coal, the Indonesian company hit by and six years, according to Oscar Mt of ore crushed in the first six August 22. The decree was made by strike action over the past two Dam, a director of the state months of this year. This is 13% over the Mines Minister, Anatole months, have resumed on East aluminium complex. The final budget, and a 22% increase over the Bishikwabo, and follows the decision Kalimantan. The company’s agreement is to be signed by first half of 1999. San Francisco is by the government to grant a president,Grant Thorne, says that November 30, in order for work to expected to cease mining operations monopoly for diamond exports to IDI the facility has not yet achieved commence on January 1, 2001. in October, although gold production Diamonds, of Israel. The exclusive mining rates above 70% of capacity, from ore on leach pads will continue deal is designed to guarantee that but it is transporting coal along Falconbridge to meet for at least a year. diamonds exported are not from zones conveyors at full rate. Earlier this year, construction at of conflict in the DRC, and to A spokesman for Rio Tinto plc, unions the Vueltas del Rio project in optimise government revenues. which owns a 50% interest in Kaltim The two sides in the industrial dispute Honduras was halted because San Reuters quotes DRC’s national radio Prima, says that the declaration of at Falconbridge Inc.’s Sudbury Francisco was consuming the as saying that a second decree has force majeure on deliveries from the operations in Ontario were scheduled company’s cash reserves owing to a rescinded a government contract with mine would remain in place until to meet on August 24 to explore ways production shortfall (MJ, February Lazare Kaplan International’s Congo stocks have been replenished. No date of restarting negotiations to end the 11, p.114). The Vueltas del Rio America Corp., on the grounds that for the lifting of force majeure was strike at the facilities. Union construction was restarted during the the company failed to respect the given. Lost production from the members went on strike on August 1 June quarter (MJ, July 7, p.9). terms of the deal. effects of the protracted dispute, after the expiry of the previous labour which involved about 250 workers contract. The company reopened its Indian china clay blockading the mine, is estimated at nickel smelter last week, at reduced about 2 Mt of coal, worth US$55 capacity of between 50% and 60%, Publications opportunity million. using non-union management The Indian Bureau of Mines has employees. A partial declaration of released a study of the china clay Miramar weathers force majeure was made on copper South African industry in India, which indicates deliveries from the company’s significant scope for foreign direct slow Giant restart Norwegian refinery. Handbook investment. The study’s authors, Dr Vancouver-based Miramar Mining Falconbridge’s spokesman, Craig Louthean Publishing Pty Ltd has K.K. Chatterjee and Dr S.S. Bhake, Corp. reports that the Giant gold Crosby, says that the meeting this brought out the 2000/01 edition of the project a rise in demand for processed mine in Canada’s Northwest week will include the company’s ‘South African Mines Handbook’. and crude china clay in the coming Territories has not met production president Oyvind Hushovd, and the The reference book lists deposits, two years. targets for the ramp-up period since it head of the Canadian Auto Workers companies and organisations and The main market for processed restarted operations earlier this year union, Buzz Hargrove. institutions in South Africa. The china clay in India is the ceramics (MJ, February 25, p.152). Miramar deposit listings, grouped by industry, and for crude china clay it is bought the mine, as a satellite deposit Century lead commodity, include location, cement, insecticide and refractory to its Con mine, after Royal Oak administration, ownership, geology, products. Mines went bankrupt. Despite the concentrate shipped reserves and production, as well as a less-advanced stage of progress at The first shipment of lead commentary on the property. All Big Valley Giant, the mine is cash-flow positive, concentrates from Pasminco’s new companies listed have details of mine according to the company, and Century base metals mine in addresses, profit status, shareholders, acquires QR operations continue to improve. Queensland left the company’s port projects and corporate history. The former-producing QR gold mine The combined operations produced facility at Karumba on the Gulf of The edition is the second to be in central British Columbia is to be a total of 30,060 oz of gold for the Carpentaria on August 18. The published, and Louthean reports that acquired by Big Valley Resources Inc. June quarter, at cash operating costs company reports that shipments of response for the first edition QR was operated by Kinross Gold of US$269/oz, an increase of nearly lead concentrate will now follow on a (1999/2000) was so good that the Corp., achieving throughput rates of 4,000 oz over the March quarter. regular basis, with the next due at the price for 2000/01 has been reduced to 1,000 t/d, from May 1995 to April Improved performance at the Con end of this month, and a total of US$114 (£76). The 2000/01 ‘South 1998, and the assets were recently mine was attributed to higher grades about 40,000 t is expected to be African Mines Handbook’ is available acquired from Kinross by a British for free-milling ore, owing to “tactical achieved by the end of the year. All from Mining Journal Books Ltd, Columbian company. use of more selective mining lead concentrate production from Subscription Dept., PO Box 10, Big Valley will pay C$4.5 million methods”, and improved backfill Century is accounted for by sales Edenbridge, Kent TN8 5NE, UK. Tel over a three-year period starting quality. Tony Walsh, Miramar’s contracts. Century is expected to +44 (0)1732 864333. Fax 865747. E- January 1, 2001, together with president and chief executive, says produce 880,000 t of zinc concentrate mail: [email protected]

Mining Journal, London, August 25, 2000 155 MINERAL MARKETS

for the deficit is insufficient mine capacity has eliminated the traditional seasonal pat- both to meet the 4% long-term trend growth tern. Consumption in China is particularly rate in copper demand and to replenish significant. Mr Arnold believes that China’s Silver’s stocks which he says are falling to critical vigorous programme of infrastructural and dangerously low levels. Based on esti- development is driving a once-in-a-decade mated refined copper consumption of 15 Mt step up in Chinese copper consumption, and Chinese in 2000, the 4% growth rate requires 600,000 that although imports may slow in the sec- t of additional refined metal in 2001 and a ond half of the year (in the first six months further 624,000 t in 2002. Mr Arnold points of 2000 there was a 52% year-on-year rise in out that these figures are “just to stand still” Chinese imports of unwrought copper) worries and are not sufficient to replenish stocks. He demand will remain strong. believes that there is limited scope for mine As a result of these and other positive fac- Silver prices have been steadily falling since restarts until the copper price approaches tors, Mr Arnold believes that a strong bull the start of the year, and for much of the last US$2,200/t, and even then he points to esti- market will develop in copper between now month or so they have hovered just below mates from metals consultant Brook Hunt and 2004, and he forecasts that the cash the US$5.00/oz level. This week, however, that indicate that only 50% of the recently price of copper in 2001 will average rumours that the People’s Bank of China idled 700,000 t of capacity could be econom- US$2,094/t. This compares with a year-to- has been selling some of its silver reserves ic in the longer term. date average of around US$1,777/t and a helped trigger bank and fund selling and the A bullish factor which Mr Arnold says is 1999 average of US$1,574/t. silver price slipped through a number of increasingly overlooked is that the volume important support levels to fall as low as of copper tied up in transit has significantly US$4.75/oz at one point – its lowest level for increased over the past few years. He says Correction 20 months. According to a number of deal- that something in the region of 1.25 Mt of ers in New York, given the heavy selling it copper is in transit at any one time – equiva- The ‘Focus’ article on molybdenum earlier was possible that the price could fall to as lent to around 8% of current global con- this month (MJ, August 4, p.87) was based low as US$4.50/oz and establish a new lower sumption. on a contribution by Anthony Sweeney for trading range. Another important positive factor is lack Mining Annual Review. However, Mr According to Gold Fields Mineral of a seasonal downturn in copper consump- Sweeney was also credited in the article with Services, China dominated the silver mar- tion for the second year running. Mr Arnold authoring a detailed report on molybdenum ket in 1999 with sales by the People’s Bank says that for the past four quarters global for the FT’s ‘Executive Commodity’ series. of China accounting for almost 7% of global copper consumption has grown at an annual Mr Sweeney actually contributed a report on supply. GFMS says that it is difficult to rate of 8% or more, and this reflects the less iron ore for the FT series, and the molybde- forecast whether China can maintain such dominant role that the northern hemi- num report was authored by Terry Adams of high levels of disposals, but feels that it is sphere has in copper consumption and the Adams Metals in the UK (Tel: +44 (0)1483 unlikely that it will be able to do so for any strong consumption growth in Asia which 577900). We apologise for our mistake. significant period of time. recover for 6 to 12 months and 25% did not Tough times for expect improvement for over a year. Nickel soars Looking ahead The Ux Weekly says that uranium producers the majority of its respondents believe that

Only nickel managed to enliven metal trad- U3O8 prices will be at least US$8.00/lb 12 ing on the London Metal Exchange this In its latest survey of uranium and months from now, 33% of respondent feel week. Most of the other metals were essen- enriched-uranium prices and market prices will recover to over US$9.00/lb and tially range bound; however, further falls in trends, The Ux Weekly says that 70% of 62 four suppliers forecast that prices will LME stocks prompted some buying and companies that responded to the survey return to double digits. Further ahead (in this was boosted by technically-driven buy- believe that most uranium producers will terms of 2005 dollars), 60% of those sur- ing from commodity trade advisers. The not be able to survive for the next five years veyed forecast that the uranium price will market ignored the news that management at existing price levels. The respondents be in the US$10-13/lb range with the 40% and union representatives at Falconbridge’s expect the main factor behind the expected balance split equally between forecasts of Sudbury operations are to try to resume closures to be low margins, and that pro- less than US$10/lb or in the range US$13- talks this week. Since last Friday’s close, the ducers will not earn a sufficient return on 16/lb. price for three-months nickel has risen from investment. The 30% of respondents that Surprisingly in light of the facts that US$7,860/t to as high as US$8,340/t. The believed that producers could survive at stockpiles held by consumers are falling and cash to three-months backwardation grew current price levels generally said that actu- that uranium producers currently supply from around US$235/t on Friday to as much al production costs are considerably lower only some 50% of demand, The Ux Weekly as US$325/t this week. than those publicised, and that the major notes that 75% of consumers said that they producers have low production costs. were not concerned about the possibility of Which viewpoint proves correct is very a price spike. According to the survey, the Copper on the up much dependent on uranium prices in the main reason behind the confidence of coming years. At the time of the survey, the consumers was the availability of highly-

A recent report from Prudential-Bache has price of U3O8 was in the region of US$8.00- enriched uranium derived from the outlined several factors that point to 8.50/lb. Most respondents felt that the dismantling of Russian nuclear warheads. stronger copper prices in the coming price is likely to end the year lower than Other reasons included the general avail- months. The report forecasts that a supply US$8.00/lb. Interestingly, The Ux Weekly ability of supply and the variety of poten- deficit of 225,000-250,000 t will develop in notes that suppliers were more pessimistic tial sources. However, a few respondents the copper market in 2001. According to the for prices than consumers. According to the warned that uranium prices would spike report’s author, Ted Arnold, the deficit is survey, around 40% believed that prices should the agreement between the US and forecast to follow one in the 230,000-250,000 will not turn higher for six months, and a Russia on the conversion of its warheads be t range this year. Mr Arnold says the reason similar number felt that prices would not cancelled.

156 Mining Journal, London, August 25, 2000 LME PRICES & STOCKS MINING FINANCE

Prices (a.m.) Aug 24 Aug 17 Tonne basis Buyers Sellers Buyers Sellers COPPER Grade A Cash...... $1,848 $1,848.5 $1,851.5 $1,852 Three months ...... $1,877 $1,878 $1,878 $1,879 TIN Ashton earnings Cash...... $5,415 $5,420 $5,285 $5,290 Three months ...... $5,445 $5,450 $5,300 $5,305 LEAD Cash...... $473 $473.5 $468 $469 Three months ...... $486 $487 $481 $482 rise . . . ZINC Special high grade Cash...... $1,181 $1,182 $1,180.5 $1,181.5 Three months ...... $1,179 $1,180 $1,181.5 $1,182.5 Ashton Mining Ltd of Australia, currently SDM sold 75,284 ct in five batches during ALUMINIUM Higher grade the subject of an unsolicited takeover offer the period, at an average of US$327/ct for Cash...... $1,524 $1,525 $1,516 $1,517 Three months ...... $1,551.5 $1,552 $1,538.5 $1,539 from the De Beers group (MJ, August 18, US$24 million in total. Ashton notes that Alloy p.139), has reported a net profit of A$22.6 the transfer of stones in Luanda took place Cash...... $1,176 $1,178 $1,167 $1,168 Three months ...... $1,210 $1,212 $1,207 $1,208 million for the six months to June 30, 2000, under Angolan Government regulations, NICKEL more than double the A$10.1 million (before and in accordance with United Nations rec- Cash...... $8,520 $8,530 $7,920 $7,930 Three months ...... $8,275 $8,285 $7,740 $7,745 abnormal items) earned in the correspond- ommendations, designed to ensure that the SILVER ing period of last year. stones are correctly classified as not coming Cash...... $4.72 $4.77 $4.80 $4.85 Three months ...... $4.77 $4.82 $4.85 $4.90 The increase in net profit was driven by a from a ‘conflict zone’. Ashton accounts for 26% rise in sales revenue, mainly as a its 33% interest in SDM as an associate, but LME warehouse stocks on August 23 result of higher prices for the diamonds sold as the project is not yet running at steady Stocks Stocks by the 40.1%-owned Argyle mine in production, Ashton accounts the revenues (t) (Aug. 16) Western Australia (Rio Tinto 59.9%). Sales against capital expenditure. COPPER from Argyle (100% basis) totalled The strong cash flow enjoyed by the Grade A cathodes 454,400 450,950 US$246.5 million for the first half of this Cuango project in the second half of last TIN 12,240 12,325 year, 15% higher than in the first six year enabled SDM to repay US$4.75 mil- LEAD 128,075 130,900 months of 1999, despite a slight fall in pro- lion in loans to Ashton during the first half ZINC SHG 205,600 203,375 duction to 14.2 Mct from 14.4 Mct. of this year. Ashton’s overall pre-tax cash ALUMINIUM HG 413,100 422,625 Alloy 96,560 96,300 Argyle’s average prices rose 20% for the flow from operations totalled A$96.7 mil- NICKEL 13,248 15,222 whole of last year, and a further 10% in the lion, a rise of 54%, allowing Ashton to SILVER – – first half of this year. Ashton’s general man- reduce long-term debt by US$15 million ager – corporate, Glenister Lamont, told (repaid a year early) to US$90.6 million, Mining Journal that the company believes and to complete a A$13.7 million share the current price levels for Argyle-type dia- repurchase programme. Nevertheless, cash LONDON PRICES monds, averaging US$11-12/ct, to be sus- resources rose by A$18.1 million over the tainable. Mr Lamont argues that the low first six months of the year, to total A$143.3 Metals Aug 23 price levels of the period 1995-98 were million at June 30. The company has also Aluminium (US producer) 63.00-66.00 c/lb d/d depressed by destocking of diamonds simi- taken the opportunity to raise its dividend, Antimony $1,700-$1,800/t cif Arsenic (Rotterdam 99%) $0.35-$0.45/lb lar to Argyle’s output, first by the Russians declaring A$0.05/share for the first half Bismuth Bismuth $3.00-$3.20/lb cif Cadmium (99.99%) $0.18-$0.23/lb cif and then by De Beers. (payable September 14), compared with .. (99.95%) $0.13-$0.18/lb cif Another factor in the increase in sales rev- A$0.015/share for the first half of last year, Chrome (UK 99%) $9.00-$10.00/lb Cobalt (99.8%) $14.50-$15.50/lb net enue in the first half of this year was a con- as part of a planned increase in the compa- .. (99.3%) $13.50-$14.50/lb net Germanium $580-$640/kg tribution of A$11.3 million from Ashton’s ny’s distribution-to-earnings ratios. Gold £183.78($272.00)/oz wholly-owned Merlin project in the Mr Lamont said that Ashton does not Indium $100-$120/kg Iridium (J Matthey price) $415/oz Northern Territory, compared with just face any major capital commitments for the Magnesium (Norsk Hydro Euro. prod.) 2.33/kg* .. (US Free mkt, 99.8%) $2,000-$2,050/t* A$3.7 million in the first half of 1999 as next few years, as its development projects, Manganese Merlin produced its first diamonds in such as Merlin, are largely designed to be metal (99.7%) $950-$1,000/t Mercury (99.99%) $145-$155/flask February of last year (MJ, September 10, self-funding from initial cash flows. Nickel $3.87-$3.88/lb Osmium $400-$450/oz 1999, p.209). Merlin produced 100,812 ct Similarly, the Argyle underground develop- Palladium (J Matthey price) $738.00/oz during the first half of the year, more than ment, if approved, would be funded from .. (Free market) $715.00-$735.00/oz Platinum (J Matthey price) $576.00/oz the 83,745 ct produced during the whole of the mine’s existing cash flows. .. (Free market) $572.00-$582.00/oz Rhodium (J Matthey price) $2,220.00/oz 1999, and two sales were completed during Ruthenium (J Matthey price) $170/oz cif the period at an average of US$113/ct for Selenium $2.80-$3.20/lb cif Silver $4.84/oz total revenue of US$7.1 million. Merlin’s . . . seeks to show Tellurium (UK lump & powder 99.95%) $4.00-$6.00/lb net share of Ashton’s first-half pre-tax operat- its value Tin (Kuala Lumpur) RM20.10/kg ing profit of A$36.9 million was A$0.7 mil- Ore & Oxides Aug 23 lion. The deal struck between De Beers and Antimony (60%) $8.00-$8.50/t unit, cif nom* The main setback of the first-half period Malaysia Mining Corp. Berhad (MMC), Beryl (10% BeO) $75-$80/s ton unit BeO cif* was the deterioration in the security situa- Ashton’s largest shareholder at 49.9%, for Chrome (Transvaal, Friable 40%) $48-$70/t, fob* .. (Turkish, concs 48%) $65-$70/t fob* tion in Angola, which resulted in a two-week an initial 19.9% in Ashton (MJ, August 4, Columbite (min. 65% comb. oxides) $3.10-$3.80/lb cif* suspension of production at the alluvial p.83), clearly shows that MMC plans to sell Ilmenite (54% TiO2) A$100-A$115/t fob Lithium ores (Petalite 4.2% Li2O) $180-$270/t fob* Cuango project. Production during the six its interest. MMC is understood to have (Spodumene>7.25% Li2O) $385-$395/t fob* Manganese ore (48-50% Mn, months totalled just 53,087 ct, compared scheduled a meeting for September 27, in max. 0.1% P) $1.81-$1.90/t unit fob* Molybdenum with 185,400 ct for the whole of last year. which its shareholders will be invited to oxide (conc 55-57%) $2.60-$2.70/lb Ashton hopes that an expected improve- approve the disposal of the balance of the Rutile (Aust. 95-97% TiO2) A$760-A$885/t fob (bulk) ment in the security situation will allow Ashton shareholding, at the A$1.62/share Tantalum oxide (60% cif N. Euro port) $50-$60/lb Uranium (Nuexco unrestricted/restricted Sociedade de Desenvolvimento Mineiro de offered by De Beers or at the highest offer U3O8) $6.80/$7.80/lb Angola (SDM), the holding company for that may be forthcoming. Vanadium (98% V2O5) $1.85-$2.00/lb cif Wolframite (65%) $40-$45/t unit the Cuango project, to commence explo- Mr Lamont said that the board of Ashton Zircon sand (std 66-67% ZrO2) A$560-A$660/t fob (bulk) ration for kimberlite on its concession in the is seeking to realise the highest possible val- * Source: Metal Bulletin second half of this year. ue for its shareholders. He argues that

Mining Journal, London, August 25, 2000 157 MINING FINANCE

Ashton’s improved first-half earnings are Impala described its past financial year not an anomaly, but represent a return to Impala enjoys as “mixed” from an operational perspective, normal earnings levels after the depressed particularly in the second half. There were market conditions for Argyle-type dia- prices . . . two national “stay-aways” (a form of indus- monds in recent years. Ashton forecasts trial action not specific to Impala), plus full-year earnings this year at double those The good times continue for platinum group numerous public holidays. Operations were of last year (net profit before abnormal metals (PGM) producers and their share- also hampered by the excessive rainfall items A$17.5 million in 1999), if current holders. This Tuesday, Impala Platinum experienced in southern Africa around the prices and exchange rates are maintained, Holdings Ltd of South Africa posted attrib- start of this year. Refined platinum produc- despite a further fall in Argyle’s output to utable earnings of R2.21 billion for the tion for the financial year fell by 4% com- about 24 Mct. Mr Lamont believes that financial year to June 30, 2000, a rise of pared with 1998/99, to 1.02 Moz, and cash Ashton’s results in 2002 will be even 83% compared with the preceding 12 operating costs rose by 8%, to R1,439/oz of stronger, as Argyle’s production is planned months. The surge in earnings was driven refined PGM (gross). However, the rises in to recover to 28-29 Mct as a result of open- by a 45% increase in sales revenue, to R6.07 price of the various by-products resulted in pit sequencing. billion. cash operating costs (net of by-product rev- Furthermore, according to Mr Lamont, A 1% increase in sales volumes of plat- enue) of minus R521/oz of refined platinum De Beers’ offer price was set before the inum, to 1.03 Moz, contributed to the rise in (ie, by-product credits more than met results of Rio Tinto’s ‘order of magnitude’ revenue in US dollar terms, but the vast costs), compared with net costs of R617/oz study for the underground extension of majority was the product of stronger mar- in 1998/99. Argyle to 2018 was made public. The results ket prices. Impala realised an average price of the study are currently under review, and of US$424/oz for its platinum, a rise of 18% a recommendation regarding a full feasibili- compared with 1998/99; US$462/oz for pal- . . . deals designed to ty study will be made later this year. ladium, a rise of 49%; US$1,214/oz for maximise benefits This week, Ashton released a positive ini- rhodium, up 69%; and US$7,437/t for nick- tial drill result that suggests that the mine el, up 67%. This resulted in a 38% increase Impala had a busy year in terms of corpo- may have a life beyond 2018 (this issue, in sales revenue in US dollar terms, which rate development, which was facilitated by p.153). Mr Lamont accepts that Ashton has was also boosted by a 5% further deprecia- a 73% increase in cash reserves over the released this result earlier than would have tion of the rand to an average exchange rate year to R2.94 billion (net of all debt). The been the case had a hostile bid not been of R6.40/US$ for the year. company announced the reopening of its made, but he also pointed out that the pro- The full benefits of the market price Crocodile River mine on the Bushveld gramme is being conducted by Rio Tinto, as increases are not reflected in these realised Igneous Complex (BIC) in South Africa at the operator, and thus Ashton is not in a prices, owing to the time-lags in contracts. the start of this calendar year, and simulta- position to change the actual work to bring Furthermore, Impala notes that prices for neously made a deal to participate in a lat- forward the positive news. However, Ashton its products at the end of June were an aver- eritic nickel project in the Philippines (MJ, has accelerated exploration work at Merlin age of 20% higher than its realised prices for February 11, p.107). The latter deal is by about a month, and has similarly speed- the year, auguring well for the current finan- designed to make more effective use of ed up sample processing at its Mauritanian cial year. Similarly, the rand has since weak- Impala’s base metal refining capacity in exploration project. ened further, to nearly R7/US$. South Africa, and thus reduce its nickel refining costs. The technical feasibility study of the nickel project is nearing com- SHARE PRICES AND EXCHANGE RATES pletion. Impala has not neglected its core opera- Company Aug 23 Change Local US$ mill. Company Aug 23 Change Local US$ mill. Local 5-day % % hi-lo Mkt cap. Local 5-day % % hi-lo Mkt cap. tions on the BIC, near Rustenburg, com- pleting 25,000 m of underground develop- Alcan Aluminium (C$) .....47.90 3–2.4 8.5 00.0021 7,050 485 Norilsk Nickel (Rb)...... 273.14 74.66–1.4 13 00.0080 1,847 00 Alcoa ($) ...... 32.75 00.00–4.4 0.000.0024,9691134 28,362 Normandy Mining (A$) ... 00.001.01 2.5 0.0 00.0028 1,011 00 ment during the financial year, 14% more Anglo Amer. Plat. (R)...... 249.40 00.004.7 0.7 00.0099 7,721 00 Norsk Hydro (NK) ...... 00.003.79 2.8 0.0 0060094 11,008 00 Anglo American (£)...... 39.10 7.9 79 23,627 North Ltd (A$) ...... 00.004.75 – 0..00.2 00.0092 2,017 00 than in 1998/99, and opening “substantial” AngloGold (R) ...... 272.20 0.0 00.00–5.2 14 00 4,168 Outokumpu () ...... 10.80 2.4 21 1,202 mining reserves for future years. The com- Anglovaal Mining (R) ...... 26.95 00.003.7 0.0 00.0084 423 00 Pasminco (A$) ...... 00110.94 –4.1 0.0 00.0018 604 00 Antofagasta Holdings (£) 4.30 2.1 73 1,256 Pechiney ‘A’ ()...... 00.0048.81 –1.9 0.0 00.0017 3,560 00 pany has commissioned the Merensky-reef Arch Coal ($) ...... 00.007.44 –3.3 0.0 00.0025 284 00 Phelps Dodge ($)...... 00.0041.06 –6.9 0.0 00.0014 3,232 00 Ashanti Goldfields ($) ...... 2.55 0.0 10 287 Placer Dome (C$) ...... 00.0012.80 –1.2 0.0 00.0011 2,812 00 flotation circuit at its mineral processing Ashton Mining (A$) ...... 00.001.90 8.6 0.0100 00.00350 00 Potash Corp. of Sask. (C$) 00.0082.00 0.4 0.0 00.0073 2,890 operations, and construction is due to start Asturiana de Zinc ()...... 10.29 00.00–1.9 0.0 00.0024 371 00 PT Tambang Timah (Rp)2430.00 00.00–2.6 0.0 00.005 146 00 Barrick Gold (C$) ...... 24.20 00.00–4.7 0.0 00.0011 6,440 00 Rio Algom (C$)...... 26.25 38.2 0.0 00.0099 1,070 00 this month of a R100 million autogenous BHP (A$) ...... 19.52 00.001.4 0.0 00.0062 19,778 00 Rio Tinto plc (£) ...... 00.0012.00 3.0 0.0 00.0051 18,892 00 Billiton (£) ...... 3.10 10.7 49 9,816 RJB Mining (£) ...... 00.000.65 –3.0 0.0 00.0088 140 00 milling circuit for UG2 reef for commission- Boliden (C$) ...... 00.001.32 0.0 00.002 190 00 Stillwater Mining (US$) ... 30.75 4.7 36 1,185 ing next March. Meanwhile, the final stage Caemi Mineracao ...... 261.00 –2.6 88 563 Sumitomo Met. Min. (¥) .544.00 00.005.6 0.0 00.0095 2,902 00 Cameco (C$)...... 20.25 00.00 0.060014.1 39 00 754 Teck ‘B’ (C$) ...... 00.009.95 7.0 0.0 00.0016 719 00 of its Enhanced Precious Metals Refinery Cleveland-Cliffs ($)...... 25.19 255 00110.8 28 00 265 WMC (A$) ...... 00.008.28 4.7 0.0 00.0076 5,307 00 Cominco (C$) ...... 20.30 00.004.9 0.0 00.0016 1,168 00 Xstrata (SF) ...... 486.00 00.005.4 0.0 00.0099 1,655 00 has been commissioned, and the smelter CVRD (BR) ...... 47.20 00.00–0.6 0.0 00.0079 10,423 00 expansion is scheduled to start production De Beers (Linked Uts) (£) 0.000.018.51 0.003.5 10,24486 10,949 Share prices and exchange rates are intra-day Wednesday. Eramet (Eur)...... 46.50 5.0 19 1,015 100 in the high/low column indicates that the share is trading in January of next year. Falconbridge (C$)...... 17.90 3.8 16 2,130 at a high, 0 that it is at a low, based on local prices over the Freeport-Mc. C&G ($) ..... 00.008.75 –4.1 0.0 00.004 1,319 00 past 52 weeks. The reopening of the Crocodile River 25.80 1.2 36 1,674 Gold Fields Ltd (R)...... 00.00 0.0 00.00 00 Currencies August 23 mine, which is on track for metal production Grupo Mexico (MP)...... 38.95 00.00–6.1 0.0 00.0040 2,639 00 Hindalco (Rs) ...... 790.85 00.00–1.7 0.0 00.0038 1,287 00 Value of £ $(US) in early 2001, is designed to use excess HZL (Rs)...... 00.008.00 1.3 0.0 00.009 0074 $ (US) ...... 1.4481.48 1.00— capacity from the expansion of the compa- Iluka (A$)...... 00.004.72 0.0 00.0082 603 00 $ (Australian)...... 0.2.5122.59 0.051.75 IMC Global ($) ...... 15.06 00.000.4 0.0 00.0036 1,729 00 $ (Canadian)...... 0.002.20 0.001.49 ny’s smelting and refining operations, which Impala Plat. (R) ...... 302.00 00.001.7 0.0 00.0098 2,855 00 Ringgit (Malaysian) Fixed official rate .. 5.63 3.80 Inco (C$) ...... 23.90 00.00–1.20 0.0 00.0021 2,920 00 Franc (Swiss) ...... 0.002.57 0.001.73 was originally planned with a view to the Industrias Peñoles (MP) ..12.48 20.80 –2.52.1 4401 534 00 Krona (Swedish) ...... 0.0013.85 0.009.35 (failed) merger with Lonmin’s platinum Iscor (R) ...... 16.80 14.8012.0 0.0 00.0033 620 00 Yen ...... 158.60 0.00107.08 0.00 KGHM (Zt)...... 30.30 32.30–0.7 0.062 001,390 00 Rand (SA) ...... 0.0010.35 0.006.99 interests. Full use of this capacity is the gen- Lonmin plc (£)...... 8.94 6.65–0.8 0.0 00.00192 2,344 11, (Euro) ...... 0.001.66 0.001.12 MIM Holdings (A$)...... 1.13 86 00.000.9 34 00 1,109 eral strategy behind Impala’s other corpo- Markka (Finnish) ...... 1=Mk5.94573 0.00 0.00 Minsur(PS)...... 00.006.10 –3.2 0.0 00.0048 455 00 Franc (French)...... 0.00 0.00 844.00 0.1 96 4,251 1=FF6.55957 rate moves this year. Mitsui Min. & Smlt. (¥)... 00.00 0.0 00.00 00 Newmont Mining ($)...... 17.69 00.00–5.0 0.0 00.006 2,973 Deutschmark ...... 1=DM1.95583 0.00 0.00 The company extended its relationship 14.95 1.0 13 2,475 Source: Bloomberg Noranda Mining(C$)...... with Aquarius Platinum Ltd, farming out a

158 Mining Journal, London, August 25, 2000 MINING FINANCE number of smaller projects in return for an accurately the predicted operating parame- Much of the cost of this form of financing interest in Aquarius’ South African operat- ters of the planned full-size, five-module would obviously lie in the insurance premi- ing subsidiary. Impala also increased its commercial plant which will produce 2.5 ums. shareholding in Aquarius to 14.8% from Mt/y of pig iron. This information is neces- 12.8%, and acquired a 5.8% equity interest sary to complete the detailed project feasi- in Johannesburg-listed Kroondal Platinum bility study, elements of which are already Alcan to open Mines Ltd (KPM). Aquarius, which holds a under way. The feasibility study is sched- algroup offer 45% interest in KPM, has announced a uled to be completed in the June quarter of takeover offer for the other 55% (this issue, next year, with full-scale construction fol- Alcan Aluminium Ltd of Canada will open p.148). Impala’s year finished with a C$191 lowing in the September quarter. its long-awaited takeover offer for Alusuisse million cash takeover offer for Toronto-list- Commercial production is envisaged in Group Ltd (algroup) next Tuesday (August ed Platexco Inc. (MJ, June 9, p.443), which 2003, building up to full capacity in 2004. 29), and the offer will remain open until has since been approved by Platexco’s The demonstration plant is scheduled to September 25. Shareholders in algroup are shareholders. begin ‘hot commissioning’ in the next few to be offered 17.1 shares in Alcan for every weeks. The key parameter that the demon- share held, the same ratio terms as agreed stration plant is designed to establish is the with the board of algroup and the compa- AuIron to list on AIM thermal efficiency of the process. The pro- ny’s major shareholders over two months ject will use Ausmelt’s Ausiron submerged- ago. The terms also included a cash distrib- Sydney-based AuIron Energy Ltd, develop- lance smelting technology, fed with ution to shareholders in algroup before the er of the South Australia Steel and Energy AuIron’s local coal and iron ore resources takeover is completed, comprising a SF135/ (SASE) project to produce pig iron, plans to (MJ, August 4, p.90). The process is share special dividend and a SF90/share complete the listing of its shares on designed to recover all of the off-gases, the capital repayment (MJ, June 2, p.427). London’s Alternative Investment Market main waste products being carbon dioxide Shareholders in algroup have already vot- (AIM) next Wednesday (August 30). and heat. The heat will be used to power an ed in favour of this cash distribution (MJ, Trading in the shares on AIM is scheduled electricity-generating station, planned to July 21, p.49), and will now be invited to to commence on September 1. As part of the be operated by a suitable third party. The complete the deal via the open offer for their AIM listing, AuIron has placed 26.15 mil- exact size of the power plant will be deter- shares. Alcan’s offer is conditional on lion new shares at £0.25/share. mined using the data from the demonstra- achieving acceptances representing more AuIron’s shares are already tradeable in tion plant. than 67% of the outstanding 6.79 million London, through a single market-maker, The total capital cost of the SASE project shares in algroup, and on there being no but according to the company’s chief execu- will be around A$1 billion, comprising material legal or regulatory proceedings tive, Neill Arthur, this form of trading has A$300 million for the smelter modules, during the offer period such that might certain limitations. Mr Arthur told Mining A$300 million for the mines and A$400 mil- cause the offer to become inoperable. Journal that the AIM listing has two main lion for the power station. AuIron plans to Provided the first condition of 67% reasons. The first and most immediate is to put the mines out to contract, so the capital acceptance level is met, all shareholders in improve trading access for AuIron’s UK- costs, mainly the equipment fleets and the algroup will receive both the special divi- based shareholders, who currently repre- pre-stripping, would be met by the contrac- dend and the capital repayment prior to the sent about 30% of the total shares. The bal- tors selected. AuIron will thus need to raise completion of the share exchange for those ance of the company’s shares are predomi- in the order of A$700 million. Mr Arthur accepting the offer. Should the 67% target nantly held in Australia (60%) and said that the company does not want to not be met, then shareholders in algroup Germany (10%). AuIron is already listed dilute its 90% interest in SASE by bringing will receive only the capital repayment of on the Australian Stock Exchange, where it in a major partner (the current partners are SF90/share, payable on October 24. is included in seven stock indices, and on the Ausmelt and PT Krakatau Steel, each with Meanwhile, algroup has reported proba- Deutsche Börse. Mr Arthur added that the 5% free carried until the end of the demon- bly its last set of financial results as an inde- associated AIM placing is essentially stration plant phase). pendent company. Net profit for the six designed to provide additional liquidity for AuIron is considering three options, with months to June 30, 2000 totalled SF230 mil- AuIron’s shares in the London market. the help of PricewaterhouseCoopers, lion, a rise of 16% compared with the profit The second reason for the AIM listing is engaged as financial adviser at the end of from the same set of assets (following the the possible future need to raise equity last year. These include a conventional Alusuisse-Lonza group restructuring) for finance for the commercial development of mixture of project debt and equity, in the corresponding period in 1999. algroup the SASE project. Mr Arthur said that which the AIM listing would be used to attributed the improvement in profit to AuIron has no immediate need to raise addi- raise a significant portion of AuIron’s equity higher aluminium prices, which helped to tional equity, as its current cash reserves of contribution. Another option would be to increase net sales revenue (excluding SF636 about A$29 million (including A$15.2 mil- auction the power-plant element of the pro- million in revenue from trading operations) lion net from the AIM placing) will be suffi- ject to a power company, such that the oper- by 16% to SF3.7 billion, and to gains in cient to see the company through the opera- ator also owns a majority interest in the operational efficiency. Operating profit was tion of its demonstration plant. Further power plant. This would reduce the net cap- 22% higher, at SF409 million. ahead, a third possible benefit of the AIM ital cost of SASE to A$300 million, and pro- The most important business sector was listing would be to facilitate the separate vide AuIron with the cash to fund its equity primary materials and fabricated products, listing of AuIron’s other major asset, the share. The third option is an innovative which contributed 42% of sales and 58% of 100%-owned Ballymoney lignite project in financing mechanism being put together by operating profit, but this was followed close- Northern Ireland, in a company to be held an insurance broking group, whereby the ly by packaging, which accounted for 43% by mainly UK investors. various risk elements of the project would of sales and 41% of operating profit. Long- The SASE demonstration plant, built be insured such that the project could be term debt was reduced over the first half of and operated by Thiess at Whyalla, near taken to a rating agency with the aim of this year by 24%, to SF832 million, and Port Augusta (MJ, March 3, p.167), has a securing a high-quality credit rating for short-term debt by 15% to SF1.45 billion. throughput of 2 t/h of iron ore. This is fifty associated bonds. The insurance company Cash flow rose by 4% to SF386 million, but times larger than the earlier pilot plant, and would then issue these bonds, and AuIron cash reserves and marketable securities is designed primarily to determine more would borrow the proceeds from the issuer. were 18% lower at SF501 million.

Mining Journal, London, August 25, 2000 159 MINING FINANCE

nominate two other directors to Centaur’s McWatters Mining Inc. of Montreal has Market news board. Mr Gutnick will stay on as deputy completed the mandatory repurchase of chairman. Centaur owns the Cawse nickel C$6 million (nominal value) of its 10% laterite project, in Western Australia, in senior unsecured notes due September 12, London-based Anglo American plc has which Anaconda can earn a 60% interest 2002 via a ‘Dutch auction’ in the range increased its shareholding in Australian- (MJ, November 19, 1999, p.405). C$750-800 for each C$1,000 of the nominal listed Anaconda Nickel Ltd to 25.73% from The largest US-based copper producer value of the notes (MJ, July 21, p.51). 24.16%. The additional 6 million shares Phelps Dodge Corp. has filed a shelf registra- McWatters paid C$750 plus accrued inter- were purchased under the ‘creep’ provisions tion with the US Securities and Exchange est of C$39.73 per C$1,000. The principal of Australian stock market regulations, Commission to allow the company to issue price paid was the lowest at which the offers which allow a major shareholder to increase up to US$750 million in equity and/or debt fulfilled McWatters’ target of C$6 million. its holding by small increments over time. securities. The registration replaces Phelps To fulfil the amount, 56.4% of the notes Anaconda is developing the Murrin Murrin Dodge’s 1997 registration for up to US$500 tendered at C$750 were repurchased. The nickel laterite project in Western Australia million in senior-debt securities, of which repurchase has reduced the amount out- (MJ, June 2, p.429). According to Daniel US$250 million was used in 1997. The standing under the remaining notes to C$24 Major, analyst at HSBC investment bank unused portion of the 1997 registration will million. McWatters has also taken the in London, Anglo paid A$2.75/share for the be cancelled. The registration is part of a opportunity afforded by recent gold-price additional shares, compared with the general restructuring of the company’s weakness to close part of its hedging pro- A$3.15/share that the group paid for its ini- debt, following its acquisition of Cyprus gramme. The resulting gains have allowed tial interest in Anaconda (MJ, August 6, Amax Minerals Co. at the end of last year. the company to reduce its outstanding loan 1999, p.97). Anaconda’s shares rose by On the short-term debt side, this included with Standard Bank of London and A$0.09 to A$2.87/share following the replacing the company’s previous US$1 bil- National Bank of Canada from US$10 mil- announcement. lion revolving credit facility with a similar lion to US$5.3 million. Meanwhile, Anaconda Nickel Ltd has facility expiring in May 2005. Vancouver-based Miramar Mining Corp. reached agreement with Joseph Gutnick to The London-based mining group Rio has engaged Cannacord Capital to place acquire 6.3 million shares in Centaur Tinto has raised its shareholding in North 3.33 million special warrants, at Mining & Exploration Ltd, at Ltd of Australia to over 90% and, having C$1.20/warrant, on a best-efforts basis. A$1.35/share. Mr Gutnick has also agreed satisfied the necessary conditions, intends Once the prospectus is cleared by the regu- to procure for Anaconda a further 1.57 mil- to issue compulsory acquisition notices for latory authorities, each special warrant will lion shares at that price, for a total share- the balance as soon as possible. Rio Tinto’s be exercisable into one flow-through share holding of 14.99%. The chief executive of takeover offer for North closes next in Miramar for no additional payment. The Anaconda, Andrew Forrest, will become Monday (August 28) (MJ, August 18, net funds will be used to increase explo- Centaur’s chairman, and Anaconda will p.139). ration work at Miramar’s 50%-owned Hope Bay gold project in Canada’s Nunavut Territory for the remainder of this year and into 2001. Miramar and its partner, Hope Bay Gold Corp., are currently reviewing results (MJ, July 21, p.45) MERN/PLACER DOME INC RESEARCH DRC Resources Corp., listed on the SCHOLARSHIP/FELLOWSHIP: Canadian Venture Exchange, has complet- ed a private placing of special warrants to TRI-SECTOR PARTNERSHIPS raise C$5.0 million (gross). The raising has increased the company’s cash position to Mining & Energy Research Network, Corporate Citizenship Unit MERN. C$5.5 million, which it plans to use to advance exploration and development of its Applicants are invited for the new MERN/Placer Dome Inc Research Scholarship/Fellowship to Afton property in British Columbia (MJ, July 28, p.65). undertake a part-time MA in Organisational Studies and half-time MERN Research Fellowship post working on mining companies and NGO/government relationships and sustainability indicators in CORPORATE FINANCE ANALYST One of our clients, an international finance group, has an opening the mining sector from a developing country perspective. for a graduate to take up a Mining Corporate Finance position, based in London, with the possibility of relocating to other You should have significant experience of working with an NGO organisation in a mining area, international offices in the future. Candidates should have at least 2 years’ postgraduate experience in geology, mining engineering possess a good first degree, be an effective communicator and possess the breadth of interest to or mineral processing. This post would suit a person with a particular ambition to move into a “City’’ post and applicants work in a multi-disciplinary team. should be energetic, numerate and computer literate. Please send an up-to-date CV, quoting Ref No 4920, to: Salary for half-time appointment at Spinal Point 4 on Research IA Scale: £16,775 p.a. pro-rata. Dennis Thomas, Thomas Mining Associates, P.O. Box 2010, Lancing, West Sussex BN15 8HZ, UK. Tel: +44 1903 753511. Fax: +44 1903 753510. E-mail: [email protected] Application forms and further particulars can be obtained from the

Personnel Office, University of Warwick, Coventry CV4 7AL PROJECT MANAGERS for Europe, Africa and the Middle East Major clients require candidates of various disciplines to oversee: (tel: 024 7652 3627; e-mail: [email protected]) and from • Grass roots heap leach operation in Africa – minimum of 10 years relevant project management and heap leach experience essential. jobs.ac.uk/jobfiles/AC843.html Please quote reference 2/3R/00. • Plant installations in Europe and the Middle East – both Mechanical and Electrical engineers required – Mining or heavy industry background essential. Closing date for applications is 15 September 2000. UNDERGROUND MANAGERS for mines in Africa. The ideal candidates will be mining engineers with a minimum of 10-15 years experience in trackless mining. Previous experience of working in Africa would be advantageous. TAILINGS ENGINEERS – Civil engineers with a minimum of 10 years experience for heap leach projects in South America. Previous South American experience and the ability to speak Spanish is advantageous. Please email c.v.’s to Sandie Fforde or Dick Sanders Visit www.hunterpersonnel.com FOR THE COMPREHENSIVE LIST OF VACANCIES AND THE FULL RANGE OF SERVICES THAT WE OFFER Hunter Personnel Contracts Ltd Abchurch Chambers, 24 St Peters Road, Bournemouth, BH1 2LN, U.K. Tel: +44 (0)1202 298322. Fax: +44 (0)1202 298383 Email: [email protected]

160 Mining Journal, London, August 25, 2000 More than

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