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More rare earths from Lynas Malaysia

The Mount Weld rare earths project. Image: Lynas Rare Earths.

Lynas Rare Earths has announced its Malaysian arm will become a producer of two new separated heavy rare earths (HRE) as soon as next year.

A new process will produce separated dysprosium (Dy) and terbium (Tb) at Lynas Malaysia for the first time and will complement Lynas’ existing light rare earths product range.

Dy and Tb are both essential to high performance rare earth permanent magnets used in electric vehicles and high-tech applications such as micro-capacitors which are essential to all electronic devices.

Currently, Dy, Tb and other HRE oxides from Lynas’ Mount Weld ore body are sold as a mixed HRE compound known as SEGH.

The reconfiguration of one of Lynas Malaysia’s solvent extraction circuits will facilitate the production of Dy and Tb.

The new circuit is designed with capacity to separate up to 1500 tonnes of SEGH per year.

“Lynas’ Mount Weld deposit is remarkable for its endowment of heavy rare earth minerals as well as light rare earth minerals,” Lynas managing director and chief executive officer Amanda Lacaze said.

“This circuit reconfiguration at Lynas Malaysia provides a pathway to accelerate our commitment to processing all of the elements in the Mount Weld ore body.

“Dy and Tb are important inputs to high performance magnets and electronic devices and we are pleased to enhance our product range to meet current and prospective customers’ needs.”

As a result of the separation of Dy and Tb from the SEGH compound, Lynas’ HRE product range will increase to include Dy, Tb, unseparated samarium, europium, and gadolinium, as well as holmium concentrate and unseparated SEGH.

Lynas is also progressing pre-construction activities for its planned US rare earths processing facility.

Both Lynas Malaysia and the planned US rare earths processing facility have been designed to accept third party feedstocks as they come online.

A new global uranium power

TOM PARKER

uranium mineral isolated on black background. Highly radioactive and dangerous ore.

Paladin Energy is looking to grow its global uranium footprint through the acquisition of Canadian-focused Fission Uranium. (PDN收购优质铀矿后复盘补跌5.1%，本次配股收购稀释股东权益，在股东将要看到拉格矿有收益的时候再添新吞金兽，2029年计划投产的帕特森湖项目未来5年间预计非常烧钱，这也是股东们没有因该溢价收购就立即炒高股价的原因。)

Fission shareholders would receive 0.1076 Paladin shares for each Fission share as part of the deal, which represents an implied value of $C1.30 per Fission share and an implied equity value of $C1.14 billion.

This is a 25.8 per cent premium to Fission’s closing share price of $C1.03 on June 21.

Fission shareholders would own 24 per cent of Paladin if the transaction closes, with the enlarged Paladin holding a market capitalisation of $US2.5 billion.

The two companies hope to create a “clean energy leader” and deliver several benefits to shareholders of both companies:

Enhanced project development pipeline
Multi-asset production expected by 2029
Diversified presence across leading uranium mining jurisdictions of Canada, Namibia and Australia
Increased exposure to highly attractive long term uranium fundamentals
Increased scale and global profile of Paladin with TSX listing

Fission owns the Patterson Lake South (PLS) project, which proposes a high-grade uranium mine and mill in Canada’s Athabasca Basin.

Paladin is a uranium producer once again through its Langer Heinrich mine in Namibia, with which it holds a 75 per cent stake. The company also holds exploration assets in Canada and Australia.

“The acquisition of Fission, along with the successful restart of our Langer Heinrich mine, is another step in our strategy to diversify and grow into a global uranium leader across the top uranium mining jurisdictions of Canada, Namibia and Australia,” Paladin chief executive officer (CEO) Ian Purdy said.

“Fission is a natural fit for our portfolio with the shallow high-grade PLS project located in Canada’s Athabasca Basin. The addition of PLS creates a leading Canadian development hub alongside Paladin’s Michelin project, with exploration upside across all Canadian properties.”

Fission president and CEO Ross McElroy echoed Purdy’s sentiment.

“The combination of Fission and Paladin will create a world class diverse uranium producer, adding a class leading development project in a Tier 1 jurisdiction with the ability to expand production and cash flow profiles in the near term,” he said.

“The culture and assets between Fission and Paladin are very complimentary. Shareholders will have exposure to a producing asset with a long life of mine, located in a politically stable and globally significant uranium jurisdiction with a long history of uranium production.”

The Fission board recommends its shareholders to vote in favour of the transaction.

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EQ hits tungsten production high

OLIVIA THOMSON

Tungsten. Image: Björn Wylezich/stock.adobe.com

EQ Resources hit new weekly production records in June at its Mount Carbine and Saloro tungsten operations in Queensland and Spain respectively.

The Mount Carbine operations produced a record 70.4 tonnes of 50 per cent tungsten oxide (WO3) concentrate over a seven-day production period, with a daily record of 13.6 tonnes of 50 per cent WO3 concentrate produced within a 24-hour period.

According to EQ, this marks a 16 per cent improvement over the previous weekly production record at Mount Carbine. It also builds off the production record achieved in the March 2024 quarter.

The Saloro operations also achieved a weekly production record of around 50 tonnes of 50 per cent WO3-equivalent concentrate within a seven-day period at the beginning of June.

EQ credited the higher recovery and final concentrate production at Saloro to significant upgrades implemented during the June 2024 quarter.

“I am very pleased with the progress seen at both operations specifically throughout June,” EQ chief executive officer Kevin MacNeill said.

“Mount Carbine faced a major rebuild of our main screen, which allowed us to implement the previously announced upgrade of one of our XRT sorters. Technology is evolving quickly and given our good relationship with TOMRA and considering that we just commissioned the new generation sorters at Saloro, we could finish the upgrade in less than a week.”

Looking ahead, the Saloro processing plant de-bottlenecking program is scheduled for completion by the end of the September 2024 quarter.

The plant improvements implemented so far include the crushing and screening circuit, modification of jig ragging, spiral circuit optimisation and a rearrangement of the shaking table circuit to capture a higher proportion of fine scheelite previously lost in the tailings stream.

The Queensland Investment Corporation will also fund the expansion of Mount Carbine via a $20 million loan to be received by EQ in two instalments over a three-year period.

How BHP looks to prolong an iconic Australian copper mine

TIM BOND

Anna Wiley speaking at Copper to the World 2024. Image: Austmine

BHP’s planned expansion of Olympic Dam could be one of the most significant investments in Australian copper infrastructure in decades.

Speaking at the recent Copper to the World conference, BHP asset president copper Anna Wiley discussed the mining giant’s aspirations for the important metal in South Australia.

“To date, we have unlocked synergies of more than $US50 million ($75 million) per year from our newly combined operations in South Australia,” she said.

“At Olympic Dam, we have invested $1.8 billion over the past five years improving the safety, stability and reliability of our surface processing facilities.

“It’s a big operation – and it’s getting bigger.”

Olympic Dam churned out 212,000 tonnes of copper in the 2022–2023 financial year, and BHP is still making discoveries at depth.

“It’s one of the amazing things about Olympic Dam – we haven’t found the bottom of it yet,” Wiley said.

What’s next?
Wiley touched on BHP’s plans for its copper portfolio in South Australia, which includes:

Progress and completion of the Prominent Hill shaft that will haul ore to surface from 1.3 kilometres deep
Transition to a block cave at Carrapateena following the recent commissioning of a second underground crusher this year
Further underground development at Olympic Dam
Ongoing studies into a smelter/refinery expansion at Olympic Dam
A new decline at Oak Dam to complete underground exploration and pave the way for a potential underground mine development.

“In the coming years, we hope to make a final investment decision on an expansion of our existing copper refining facilities at Olympic Dam, to construct a two-stage smelter and associated refinery complex,” Wiley said.

“This has the potential to result in production of greater than 500,000 tonnes per annum of copper – and more than 700,000 tonnes of copper equivalent per annum when you include the by-products of gold, silver and uranium.

“This would constitute one of the most significant investments in copper metal manufacturing infrastructure in Australia for many decades.”

To achieve its copper aspirations, Wiley said it all boils down to partnership and collaboration.

“Investment in skills, training and innovation and a thriving METS (mining equipment, technology and services) sector that builds our collective capability to lead the next generation of technologies and systems will be critically important to South Australia across a range of sectors.”

Mass exploration greenlit in Victoria

KELSIE TIBBEN

Drilling to determine Goschen’s footprint in Victoria. Image: VHM

The Victorian Government has released a raft of exploration licences for projects relating to minerals critical to the energy transition.

The new licences have now been approved to target minerals and metals including antinomy, zircon, copper and mineral sands.

Victoria has demonstrated resources of antinomy, titanium, zirconium and rare earth elements. There are also opportunities for other key raw materials including copper, high purity alumina and silica.

“We have strong critical mineral opportunities across the state – the CSIRO assessed that the Murray Basin mineral sand deposits alone, which are mostly in Victoria, contain an in-ground value of at least $200 billion,” Resources Victoria chief executive officer Matt Vincent said.

The Earth Resources Regulator has now approved 50 new minerals exploration licences this financial year with six awarded so far in June covering ground across the state.

According to the Australian Bureau of Statistics, exploration expenditure across Victoria for the year to March 2024 was over $130 million.

In central Victoria, fresh exploration activity in the Bendigo and Nagambie areas will target gold, silver and antinomy through three new licences.

In south-west Victoria, one new mineral exploration licence near Casterton and another near Dartmoor will target mineral sands that could include titanium, zirconium and rare earth elements.

Another new licence for an area near Mortlake will target copper and zinc as well as lead and gold.

In western Victoria, a new retention licence near Maryborough will enable the assessment for zircon, gold, rutile and high purity quartz silica development.

Retention licences are the second phase of minerals development and allow explorers time to see if responsible development is feasible.

“In Victoria, we have stringent safeguards and our regulator is on hand to enforce the important provisions in place to protect the environment, community and infrastructure,” Vincent said.

Chinese Premier lands at Fortescue

KELSIE TIBBEN

Image: T. Schneider/shutterstock.com

Fortescue executive chair Andrew Forrest has welcomed Chinese Premier Li Qiang at the company’s green technology and test facility in Perth.

Qiang’s visit to the Hazelmere prototype facility gave Fortescue the opportunity to demonstrate the progress of its green iron technology.

Fortescue is aiming to work with China to establish an Australia Sino green iron supply chain, which will see equipment and technology sourced from China and Australia, and green metal and hydrogen made in Australia and supplied to the world.

Speaking at the Australia–China CEO Roundtable with Qiang and Australian Prime Minister Anthony Albanese, Forrest emphasised his plan for the future.

“A fully integrated green iron metal supply chain between Australia and China is the key to China maintaining its position as the dominant global producer of steel to the world,” Forrest said.

“Our proposed Australia Sino green iron metal supply chain will bring together mining powered by large-scale renewable power and green hydrogen to produce green iron metal.

“Our ambition is to provide 100 million tonnes of green iron metal to China each year, eliminating more than 200 million tonnes of carbon dioxide emissions.”

Fortescue Metals CEO Dino Otranto said a strengthened partnership between Australia and China is a natural progression.

“Today, China remains our key market for our iron ore business and we now look forward to building new relationships in a green focused world,” Otranto said.

“We believe that partnering with China to help send its steel industry green will be a major benefit to both economies and to bilateral relationships, shoring up Australia as China’s reliable and preferred commodity supplier.”

BHP: Copper is king

KELSIE TIBBEN

BHP asset president copper South Australia Anna Wiley. Image: Austmine

BHP South Australian copper asset president Anna Wiley has laid out a copper-focused future for the Big Australian in her address to the Copper to the World conference in SA.

Wiley said SA is home to 70 per cent of Australia’s copper resources, one of only so many world-class copper resources remaining in the world.

“This places additional importance on ensuring we economically extract as much copper as possible from our current operations,” she told the audience.

Citing BHP’s Chile and South American operations, Wiley added the company’s South Australian foothold to the list of assets part of its plan for a future focused on copper.

It’s a plan that has been in the works for a while, culminating in BHP’s $9.7 billion acquisition of OZ Minerals last year, bringing the SA Carrapateena and West Musgrave copper projects into the BHP fold.

“Today, as BHP we operate three underground copper mines and a nationally significant smelter and refinery complex in South Australia’s far north,” Wiley said.

This includes the heart of BHP’s SA copper province, Olympic Dam, which Wiley said the company is hoping to grow with the help of additional smelting and refining plants.

“It’s a big operation – and it’s getting bigger,” she said.

“This has the potential to result in production of greater than 500 kilotonnes per annum of copper – and more than 700 kilotonnes of copper equivalent per annum when you include the by-products of gold, silver and uranium.

“This would constitute one of the most significant investments in copper metal manufacturing infrastructure in Australia for many decades.”

Wiley said BHP’s plan for growth relies on a range of elements coming together, like skills development, the mining equipment, technology and services (METS) sector, permitting and approvals, enabling infrastructure, underlying stability, and technology.

“But in one way or another they all boil down to one very important theme: partnership and collaboration,” she said.

“In recent memory it was impossible to imagine change of this pace in the mining industry, and it goes to show that amazing things can be achieved with a common ambition.

“Industry, governments, Traditional Owners, technology providers and communities working together will help bring more copper supply to market to meet global demand more quickly and more sustainably.”

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Astec extends MPS fixed plant distribution rights to NSW

OLIVIA THOMSON

Image: Astec Industries

Mineral Processing Solutions (MPS), an OPS Group company, will expand its distribution of Astec’s fixed plant and equipment to include aggregate and mining sectors in New South Wales.

Under the terms of the new agreement, MPS will supply fixed plant crushing and screening equipment to the NSW aggregate and quarry industry.

The move is an extension of a 2021 agreement between both two companies that saw MPS take on distribution of Astec Material Solutions’ products in Western Australia, the Northern Territory and South Australia, as well as the mining sector in Australia’s eastern states.

Astec regional managing director David Smale welcomed the move.

“Astec and MPS have forged a strong partnership over the years – one that has been of real benefit to our customers,” Smale said.

“The MPS team’s extensive local market knowledge and experience in mineral processing – supported by Astec’s innovative technologies and manufacturing capability – has made MPS the perfect partner to deliver outstanding products and service.”

MPS also distributes Astec Telestack mobile bulk materials handling equipment and Astec Breaker Technology International products throughout Australia, demonstrating the company’s strong presence on the east coast.

Local sales and service teams are in place, and new local support facilities in the NSW Hunter region have been stocked with the latest Astec crushing and screening equipment.

“MPS taking our fixed plant into the aggregate industry in NSW is the first step in what we expect to be a continuing expansion, with the company moving into the Queensland and Victorian markets over the next few years,” Smale said.

“For our existing quarrying customers, little will change. Through MPS, they will still have access to the complete range of Astec’s industry-leading crushing and screening equipment, plus the extensive knowledge and experience of the MPS sales and service teams.

“I’m delighted to be making this announcement, and (I) look forward to working alongside MPS as they continue to support our customers in building the infrastructure of Australia.”

Kingston Resources kicks off mining in NSW

TIM BOND

Image: Ronnarong/adobe.stock.com

Kingston Resources has commenced open pit mining at its Mineral Hill gold-copper mine in NSW.

Drilling and blasting kicked off at the Pearse North prospect, along with the delivery of first oxide ore to the run of mill pad.

Mineral Hill ceased hard rock mining in 2016 under previous owners. Since then, Kingston Resources has been working hard to recommence mining, with the object of becoming a regionally significant producer.

The commencement of mining at Mineral Hill comes three weeks after the successful completion of the tailings retreatment project.

The plant refurbishment project is also well-advanced, with the company expecting to be treating pit oxide ore in July.

Kingston continues to focus on employing and purchasing local, ensuring the benefits of Mineral Hill’s success stay within the region. Over the past three weeks, the company has welcomed 15 new employees to the Mineral Hill team within mining, processing and geology sections.

The majority of these new employees are local residents of the Lachlan Shire. The recruitment process is going well with an additional 13 people expected to commence with Kingston during June and July.

“We are delighted to announce the commencement of open pit mining at Pearse North, which signifies a major step forward for the Mineral Hill project,” Kingston Resources managing director and chief executive officer Andrew Corbett said.

“The Pearse North and Pearse South open pits will be the initial stages of our return to hard rock mining at Mineral Hill, and we look forward to continuing to develop this project and delivering value to our shareholders.”

Greenbushes bolstered by increased investment

OLIVIA THOMSON

The Greenbushes lithium mine in WA. Image: Talison Lithium.

An upsizing of the Greenbushes lithium mine’s revolving syndicated loan facility (SLF) has been approved by Windfield Holdings.

Greenbushes is known as the world’s largest hard-rock lithium mine and is located approximately 250km south of Perth in Western Australia. It recorded a profit of about $6.3 billion in 2023.

IGO and Tianqi Lithium currently share a 49 per cent stake in Greenbushes, with Albemarle owning the remaining balance. Talison Lithium, the operator of the site, is a joint venture between the three parties.

According to IGO, the mine has received strong interest from a group of leading commercial banks.

As a result, the Greenbushes SLF has increased from $US1 billion ($1.5 billion) to $US1.55 billion ($2.33 billion) with a five-year term.

The SLF upsizing will fund Greenbushes’ capital commitments, specifically the construction of a third chemical grade plant 3 and a fourth tailings storage facility.

“Given Greenbushes’ enviable position on the lithium cost curve and the significant capital investment program underway to expand production and improve productivity, IGO is supportive of Talison’s capital management initiatives and the increase to the debt facilities available to the team,” IGO managing director and chief executive officer Ivan Vella said.

“The strong appetite from leading commercial banks to support this exciting phase of Greenbushes’ transformation is indicative of the quality of the project and the strong and sustainable cash flows it will generate through the cycle.”

During the March 2024 quarter, Greenbushes saw decreased production and sales due to the management of production and inventory levels in response to the lower offtake requirements by shareholders.

Despite the lower spodumene sales and prices, IGO said Greenbushes is expected to operate at full production for the rest of 2024.