THEAUSTLIAN MPP100007123 R ININIncorporating GTHE AUSTLI AN EVIEW E R OIL – GAS – ELECTRICIT Y – RENEWABLES A product of MARCH 2018 australianminingreview.com.au Publications & Exhibitions Australia Pty Ltd COMMODITY FULL STEAM HAWSONS IRON FOCUS: AHEAD ORE PROJECT COBALT THE NEWS p18 DACIAN GOLD p39 INTERVIEW p69 STEEL THE SHOW The Sanjeev Gupta-led GFG Alliance is spending big on its ambitious strategy to subvert Australia’s dominant ‘dig and deliver’ approach. FEATURE p20 Image: GFG Alliance. Photography: Sean Kelly MARCH 2018 2 CONTENTS THE AUSTLIAN MINING REVIEW What stories matter to you? PUBLISHED BY ABN 28 112 572 433 [email protected] REJUVENATION A product of MINING IN NORTH WEST Publications & Exhibitions Australia Pty Ltd QUEENSLAND NEWS 1 GENERAL MANAGER Brad Francis Commodities Snapshot 4 [email protected] Explorers on the Move 10 MANAGING EDITOR Reuben Adams The Contractors 12 [email protected] International 14 JOURNALISTS Cameron Drummond Technology & Innovation 16 featurefeature pp2719 [email protected] Commodity Focus: Cobalt 18 Elizabeth Fabri [email protected] THE GRAPHIC DESIGNER Charlotte Lufino [email protected] BOTTOM LINE SALES EXECUTIVES SPECIAL FEATURES RIO TINTO IRON ORE Beej Francis, Penny West PRINTER GFG Alliance 20 Rural Press CONTACT US Mining in North West Queensland 27 P: (08) 6314 0300 F: (08) 9481 7322 Rio Tinto Iron Ore 30 160 Beaufort Street, Perth, WA 6000. Dacian Gold 39 PO Box 8023, Perth BC, WA 6849. E-mail the editor at [email protected] Northern Minerals 44 For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.au Ramelius Resources 46 The Australian Mining Review is a free publication to all mine sites and mining companies in Australia. Its value is $11 an issue. (Includes GST, postage and handling). The copyright is vested in the Proprietors of The Australian Mining Review; neither whole nor any part of this issue may be reproduced without permission. The views expressed in this publication are not INDUSTRY SPOTLIGHT necessarily those of Miningoilgas Pty Ltd and its staff, but are those of the respective author who accepts p30 sole responsibility and liability for them. Companies Gearing Up 48 featurefeature p19 NOTICE TO ADVERTISERS: The Trade Practices Act, 1974 came into force on Cables & Cabling 53 the 1st October 1974. 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Analysts steel prices caused believe that to 1300 1330.58 72 by ongoing Chinese breach the 1280 70 production $US1360 level retail restrictions. investors will need 1260 68 to get on board in 67.41 1240 66 the coming months. 1249.8 1220 64 1200 62 December January 21-Feb December January 21-Feb $US/t $US/t COPPER LME Price COBALT LME Price 8000 82000 Copper rallied in 7111.89 80000.02 While cobalt has 80000 early February, 7000 recently flattened, gaining 8%, 6000 78000 support for the however uncertainty 7002.98 76000 80000.02 commodity remains over demand from 5000 5547.33 high for March. 74000 China caused the 4000 commodity to fall 72000 back below January 3000 highs. 70000 2000 68000 70000.08 1000 66000 0 64000 December January 21-Feb December January 21-Feb $US/t $US/t ALUMINIUM LME Price ZINC LME Price 2300 3600 A rise in aluminium 2237.47 The base metal has 2250 3481.98 inventories has 3500 started to flatten, caused the base 2200 3400 3563.55 with zinc inventories metal to drop over 2150 in China jumping the past four weeks. 3300 12% toward the end 2100 2190.07 Analysts have 3200 of last month. forecast Chinese 2050 aluminium 3100 manufacture to 2000 3110.94 3000 expand in the next 1950 1994.08 few months. 1900 2900 1850 2800 December January 21-Feb December January 21-Feb $US/t $US/t LEAD LME Price NICKEL LME Price 2640 16000 2621.08 While overall lead 2620 13694.9 Nickel is expected demand is 14000 to maintain its price, 2600 strengthening, 12000 with strong support fluctuating prices 2580 13589.96 at $US13,200 have caused 2560 10000 buffering a drop in week-to-week dips 10794.93 prices. 2540 8000 in prices. 2561.11 2520 6000 2500 2505.99 4000 2480 2000 2460 2440 0 December January 21-Feb December January 21-Feb COMMODITY FOCUS COBALT PG 18 MARCH 2018 6 NEWS THE AUSTLIAN MINING REVIEW IN BRIEF High-grade hits at Jundee Nyrstar signs zinc “The 765g/t intersection offtake with New from the seismic reflector Century at Zodiac is nothing short of spectacular, QLD particularly when the GLOBAL metals business Nyrstar has huge potential along settled a dispute over historic offtake agreements at the Century zinc mine in strike is considered.” QLD. Nyrstar had commenced arbitration proceedings against miner New Century in February relating to the validity of historical offtake agreements at the mine dating back to 2007, however the company said it had suspended the action based on the signing of a new agreement. Nyrstar has agreed to a 5.5 year offtake agreement for 600,000 tonnes of zinc concentrate, which includes a Image: Northern Star Resources. variable tonnage allocation of 250,000t Northern Star has increased its exploration spend at Jundee mine by $10 million. for the first 3.5 years, rising to 350,000t for the final two years of the agreement. the Reserve category. gold fields in Australia. ELIZABETH FABRI New Century said it remained on WA The discoveries included high-grade finds “The Zodiac discovery is a game-changer track for first zinc production from the at the Zodiac discovery and the Armada of enormous proportions. project in Q3 this year. AUSTRALIA’S third-largest gold producer trend, 400m and 800m from the Jundee “The 765gpt intersection from the Northern Star Resources will boost its mine, respectively. seismic reflector at Zodiac is nothing short Gold Road secures exploration program after making multiple Northern Star executive chairman Bill of spectacular, particularly when the huge discoveries at and around its Jundee gold Beament said the results would change the potential along strike is considered, and we way the 10 million ounce (moz) Jundee gold are yet to intersect the second reflector.” $150m in funding mine in WA. field was viewed. Mr Beament said the 2.5km long Armada As a result of the drilling success, Northern “With production of 7moz over the past 22 trend also continued to grow. WA Star increased its FY18 exploration budget years, Jundee has been an exceptional mine “We are now very confident that we by $10 million to $45 million. by any measure,” Mr Beament said. NEAR-term producer Gold Road will grow Jundee’s 1.4moz Reserve base It plans to accelerate a number of drilling Resources has signed a revolving “But these results show the Jundee gold significantly, adding years to its mine life,” $100m finance facility and a $50m programs to bring the recent discoveries into field is now emerging as one of the greatest he said. dedicated working capital and gold hedging agreement for development and exploration activities. The funds will be utilised for Jobs growth highlights skills gap exploration at its Yamarna tenements and the development of its 50:50 Gruyere REUBEN ADAMS gold project joint venture in WA. WA “These finance facilities are a prudent move as we transition the company from JANUARY SEEK data has revealed a 54 per being an explorer with a development cent jump in mining, resources and energy asset to an Australian mid-tier gold jobs as miners struggle with a ‘talent shortage’ producer with significant exploration due to an emerging skills gap, sluggish wages upside and the financial capability and growth, and the rise of the ‘gig economy’.