Author: yinghui

Struggling miner BC Iron has announced a temporary halt to production at the Nullagine Joint Venture (NJV).

Citing the continued decline of the price of iron ore, BC announced to the market last week that it was not in the best interests of the shareholders to for NJV to continue in its current form.

The tough decision will see 25 per cent FMG joint venture suspended progressively over December and January, with exports completed during January.

It has been suggested that BC will sell its unprocessed 11 million wet metric tonne stockpile to FMG under a mine gate sale arrangement, albeit at a reduced rate.

Managing director Morgan Ball said BC was a “price taker” and that despite successful cost reductions by staff and contractors the market had forced this unfortunate decision.

“I would like to thank our joint venture partner, Fortescue, for their strong contribution to the success of the NJV over the last five years of operations and also the West Australian Government for its willingness to work with and support the resources industry,” he said.

“Most importantly, I thank all of our committed employees and contractors who have worked so hard to build the NJV to a 6Mtpa operation and worked even harder again during the last 18 months to maintain BC Iron’s competitive position in a very challenging market.”

Production crews at the Bootu Creek manganese mine have been laid off as the mine is placed into care and maintenance.

Around 45 workers have lost their jobs at the Northern Territory mine, which was staffed by 200 people, mostly FIFO workers.

The redundancies were reported to the ABC by an anonymous worker, who said staff were informed last Friday the mine would be placed into care and maintenance.

It is expected other OM Manganese operations will conclude once stockpiles have been exhausted.

OM Holdings stock prices have dropped from $0.29c in June to the current price of $0.10c.

The company has not announced the closure to the ASX, with the most recent investor presentation given at the International Ferro-alloys Conference in November showing OM Holdings was focussed on the OM Sarawak smelting plant in Malaysia

Earlier in the week the BHP spinoff company South32 announced plans to lay off more than 400 workers from manganese operations in South Africa.

Prices for manganese, a key steel-making ingredient, have continued to slump since the announcement of plans for the South32 demerger in August 2014.

Investors have been left holding the bag by BHP as South32 shares have faltered dramatically since the company launch, trailing from around $2.37 in May down to close at a record low of $1.01 yesterday.

Thiess have been awarded a four year contract extension for work at Energy Resources’ Mongolian Ukhaa Khudag coal mine.

It is understood that it will provide up to $1 billion worth of revenue for the company over the next seven years.

This latest agreement builds upon an existing eight year agreement for work at the site which includes fleet operation and maintenance for overburden stripping, coal mining and blast drilling under an alliance structure, with involvement in mine planning and health, safety and environmental management.

CEO of Thiess parent company CIMIC, Marcelino Fernandez Verdes, said this new extension builds upon the working relationship created over close to a decade.

Thiess managing director Michael Wright said the extension at UHG coal mine is a testament to its performance at the mine since work started in 2008.

“We are delighted to extend our partnership with Energy Resources LLC and to continue our focus on delivering cost efficiencies and innovation at the UHG mine. It is the quality of our people, and their commitment to safety and operational efficiencies that drive value for our client Energy Resources,” Wright said.

This win comes only a few days after Thiess won a $760 million contract to continue to operate Glencore’s Mt Owen coal mine.

Two of the world’s largest wire rope manufacturers – Bridon and Bekaert – have announced plans to merge.

Bekaert and Bridon’s owner Ontario Teachers’ Pension Plan (OTPP), have reached an agreement to establish Bridon Bekaert Ropes Group, with Bekaert holding a 67 share in the business and OTPP the remainder.

The new business is predicted to generate around 600 million Euro in business annually.

“The new group will combine the ropes and advanced cords capabilities of almost 3 000 employees, 19 manufacturing entities across 11 countries, market-focused R&D, and a global sales and service network,” Bekaert explained.

“The intended combination will leverage the scale and complementary strengths of Bekaert and Bridon and will pursue value creation for customers and for the new group.

“Bekaert is contributing its advanced cords business and a well-established ropes presence in Latin America, Canada and Australia.”

The merger will also look at new growth opportunities in Asia, Bridon stated.

The transaction will have a cash-neutral impact on the two businesses, with the agreement set to be finalised in the first half of next year, however until that point the two businesses will continue to operate separately.

The fate of close to 800 workers’ jobs is waiting on news on whether Clive Palmer’s Yabulu nickel refinery will collapse.

The future of the refinery, and its 776 workers, was yesterday put in doubt after Palmer lost a court bid to force his estranged Sino Iron business partner CITIC to provide US$48 million in ‘unpaid royalties’ relating to the West Australian Sino Iron ore project.

This is the latest round of legal back and forth between the two entities, however it is breaking point for Palmer as he claims the outstanding royalties are needed to keep his Townsville Yabulu nickel refinery operational, stating that the business may now enter administration if funds aren’t forthcoming.

Palmer claimed his Queensland nickel business would suffer “irreparable harm” if the funds weren’t available.

Despite this, the presiding judge, Justice Paul Tottle, dismissed Palmer’s request for access to the funding, stating the court was prepared to accept the risk that the nickel refinery could fold.

He went on to say that evidence exists that a bank loan could be sought, but that “the avenues of finance that the bank was prepared to consider do not appear to have been pursued”.

CITIC also stated that Palmer had more funds than he was willing to admit, and he could support the continued operation of the nickel refinery, with its lawyer saying it defied belief that Yabulu would go under unless money was immediately handed over.

Unions have raised concerns for the workers as their future remains uncertain.

“We’ve all heard the rumours, the town’s alive with them,” local AWU spokesperson Cowboy Stockham told ABC Radio.

“I just want to hear from the horse’s mouth what’s going on and, you know, just where to from here.”

Despite the denial of funding for the Yabulu nickel refinery, CITIC said its thought were for the now uncertain workers.

“Our commercial relationship is with Mineralogy alone,” a CITIC spokesperson told news.com.

“How Mr Palmer chooses to spend this money and how he chooses to manage his other ventures — whether it be golf courses, nickel mines, soccer teams, the Titanic 2 or robotic dinosaurs — is a matter for him.”

These back and forth court battles have gone on since 2012, and relate to claims of unpaid royalties and misappropriation of funds, and has seen heated arguments in public and mining rights being terminated.

The project initially saw serious delays and was unable to meet a range of pre-arranged targets and royalty payments, with CITIC stating at the time that the lack of Australian experience for its Chinese lead contractor MCC was partly to blame for the delays and,

The relationship between Palmer’s Mineralogy and CITIC Pacific took another turn over the issue of mining royalties.

This series of events prompted Palmer to try and pull out of the agreement, in which he owned the land and gave CITIC Pacific mining right, until Mineralogy was awarded royalties.

However this was vetoed by the WA Supreme Court.

The issue of royalties again reared its head after Palmer claimed the Chinese miner was finally paying him royalties, to the tune of $500 million.

“We have a standard right-to-mine agreement,” Palmer said at the time.

“In the agreement it says they pay a royalty when ore is taken. We would say that word ‘taken’ means when you mine it — they would say it means when you take it from Australia.”

The focus of this ongoing battle between the two companies then turned to the control of Cape Preston and control of the rights to the land.

It then shifted once more to agreed upon royalties, once again, as the iron ore price plummeted to below US$40, bringing down the return on royalties.

Since these initial blowouts disagreements have flared between CITIC and Palmer’s company, with the Australian billionaire famously accusing the Chinese firm of ‘raping’ Australian resources, and then filing numerous court applications to force CITIC into liquidation.

The two have also fought civil cases against one another, claiming both have engaged in corrupt business practices.

今日，天津港口铁矿石交割价格为38.9美元。

中国需求疲软和铁矿石商Roy Hill再次扩大生产是导致铁矿石价格下滑的原因。上两个月中，铁矿石从每吨55美元下跌至40美元以下，标志着大多数生产商将无力继续运营。甚至在铁矿石巨头中，仅有力拓和必和必拓任由盈利空间，而淡水河谷和Fortescue(FMG)都处于盈亏平衡生产状态。

不少分析师认为，铁矿石将在明年2月跌至30美元每吨。

According to an AWD Group spokesperson, the CLG970E delivers a customer-focused, high quality 70-tonne excavator that is ideal for large scale quarrying operations.

A Chinese earthmoving equipment supplier has partnered with an Australian capital equipment distributor to re-launch its brand on the east coast.
The AWD Group, which is based in Sydney, has announced a partnership with Chinese earthmoving plant and equipment giant LiuGong Machinery Corporation.

The agreement between the two parties will see AWD Group, which has traditionally distributed Dieci telehandlers to the Australian market, supply LiuGong wheel loaders, excavators, forklifts and skid steer loaders in New South Wales, Queensland, and the Northern Territory. In Victoria, AWD will supply LiuGong wheel loaders, excavators and skid steer loaders.

The first LiuGong machines for the AWD Group will arrive in Australia in February 2016. They will comprise excavators ranging from four tonnes to over 70 tonnes and wheel loaders from 11 tonnes to 30 tonnes.

The largest of the excavators will be the 45-tonne CLG945E, the 48-tonne CLG950E and the 70-tonne CLG970E. They are equipped with Cummins diesel engines, have net power of 280kW to 338kW and dig depths from 6.5 to 7.8 metres.

“LiuGong’s products include some big machines which are ideally suited to large scale quarrying and mining operations such as their 50-tonne and 70-tonne excavators,” an AWD Group spokesperson told Quarry. “Built with the latest component technologies and many advanced processes, and developed with LiuGong’s product development process and product life cycle management tools, the 970E delivers a customer-focused, high quality 70-tonne excavator, which is ideally suited to large scale quarrying operations.”

The largest of the wheel loaders will be the 20-tonne CLG862G, the 24-tonne CLG877G and the 30-tonne CLG890H. The loaders are also equipped with Cummins diesel engines, have net power of 165kW to 248kW, and feature bucket sizes between 3.5m3 and 5.4m3 and breakout forces from 198kN to 251kN.

“LiuGong’s 890H wheel loader gives its operator maximum control over the equipment,” the AWD Group spokesperson continued. “The machine’s engine perfectly matches its multiple working and gear shifting modes, providing maximum traction and speed. The electronic fuel injection system offers a wide range of combustion options and helps to reduce cost in use. It features a Cummins engine and the latest ZF automatic electro-hydraulic transmission, making the loader’s shift a smooth process. In addition, the 890H has the most spacious cab interior among Chinese brands and provides a car-like operating experience. With a bucket capacity of 7m3, this machine suits duties in quarrying applications and can be used for loading blasted material at the face into haul trucks.”

Capital equipment provider
AWD Group first flagged in August its intention to become a leading provider of capital equipment service and parts support. The alliance with LiuGong will certainly bolster that goal.

“We are very excited about this opportunity to bring world class products to Australia,” AWD Group chairman Paul Jenkins declared. “We see this as an opportunity for the existing LiuGong customer base in Australia to receive increased parts and service support in the eastern states.

“This is also an opportunity for existing AWD Group customers to expand on their ownership and ensure they are able to get support from one service organisation”, Jenkins added. “Customers will be able to hire these machines as well as purchase them via our rental arm Rough Terrain Plant Hire who will be adding these machines to their fleet.”

Quarry was informed that the quarry-spec LiuGong machines will figure prominently in AWD Group’s marketing plan in 2016 and that the Group will appoint a dedicated sales representative for the quarry segment. The LiuGong machines are also expected to address demand from the quarry industry for rental equipment and will be available to hire in regional Australia via Rough Terrain Plant Hire.

Demand for mining equipment is predicted to grow seven per cent annually to US$140 billion through to 2019.

While growth slows as it normalises from the heights of the mining boom, an eventual upswing in commodity prices is expected to drive increases by 2019, fuelling mining equipment demand, according to a Freedonia report.

Off the back of this a growth in manufacturing output is expected, particularly in the developing world, whilst a growth in construction levels in the developing world is forecast to bolster this increase in mining equipment demand.

The largest growth area is expected to be drills and breaking equipment.

“These units are used almost universally across all mining operations, especially during the exploration phase of a project; additionally, the growing use of in situ mining techniques, where these products are a primary type of equipment employed, will boost demand,” the report stated.

Crushing and screening equipment is predicted to see the second largest increase in demand, followed by surface mining machinery.

“However underground mining equipment demand will grow at the slowest rate of any major product type, with much of the deceleration occurring in China,” Freedonia explained.

“Over the past decade China has invested heavily in underground mining equipment to improve the safety and productivity of its coal mining operations. However, much of this mechanisation drive has been finished, limiting future sales opportunities.”

Although, China will remain the largest market for mining equipment sales in 2019.

Despite this wider predicted growth, Australia is unlikely to reap many of the benefits, with much of the demand forecast to come from the developing world.

“Many developing countries have significant metals and coal mining industries that require substantial levels of capital investment,” the report said.

“Developing nations are also the most intensive users of mining equipment, when measured against mining output, due to the level of capital spending required in metals and coal mining operations.”

More restrained levels of growth are forecast from developed nations, although there will be a jump in demand in Western Europe as construction rebounds.

Overall, coal consumption and associated mining output is falling in many industrialised countries, as regulatory mandates lead to greater use of other energy sources, negating much of the demand for larger pieces of capital equipment.

BHP plans to cut around 30 per cent of its full time equivalent employees at Olympic Dam by FY17, BHP says.

According to a BHP spokesperson, the workforce reduction would consist mostly of contractors and other FTE employees, with the cutbacks relative to FY15.

This latest announcement follows the miner’s plan to cut 380 positions from the operation, and marks the fifth planned round of reductions at the mine.

It comes as the mine attempts to increase tonnages from the operation, forecasting 200,000 tonnes of production from FY16 to FY19, rising to around 220,000 tones of production capacity by FY19, while at the same time driving down costs.

“We have the industry’s largest copper resource and our business will gain momentum over the next two years with lower costs and higher production across our major assets as we safely improve productivity,” BHP’s president for copper, Daniel Malchuk, said.

“Olympic Dam unit costs are expected to fall 48 per cent by the end of the 2017 financial year to US$1 per pound,” Malchuk said, “repositioning the asset at the low end of the cost curve.”