New Hope Targeting First Coal Early 2019 at New Lenton Project, Qld 20 Sep 2017
New Hope Coal has announced that it is targeting first coal in early 2019 from its New Lenton project in the Bowen Basin of Queensland, Australia. The company stated that its acquisition of Peabody's adjacent Burton mine had greatly boosted the economics of the project, providing access to roughly US$240m worth of infrastructure for US$11m plus US$42m in rehabilitation obligations. The deal is expected to complete within the March Quarter of 2018. New Lenton has 380Mt of coal resources at around a 50:50 ratio of metallurgical and thermal coal. The project is expected to initially produce around 1–1.5Mtpa, with the potential to ramp up to 3Mtpa. New Lenton is 90% owned by New Hope Coal, with the remaining 10% held by Formosa Plastics Group.
South Korean August Thermal Coal Imports Rise 37% yoy 20 Sep 2017
South Korea has imported 10.4Mt of thermal coal in August, an increase of 15% on month and 37% year on year, as monthly volumes exceed 10Mt for the first time since December 2016. Bituminous thermal coal imports accounted for 88% of the total, with Australia the largest supplier to South Korea with 3.2Mt in August, up 35% on year and 1.9% on month. Indonesia was the second-largest supplier of bituminous coal, shipping 2.8Mt for the month, down 8.1% on year but up 25% on month. Indonesia also delivered 946kt of sub-bituminous coal to South Korea, up 116% on year and 45% on month. Russia was South Korea's other major thermal coal supplier in August, shipping 1.95Mt for the month, an increase of 44% on year.
NMDC's Iron Ore Production from April to August Up 12.7% yoy 20 Sep 2017
NMDC reported a total iron ore production of 13.2Mt from April to August 2017, up 12.7% year on year. Higher production was mainly due to increased production from Chhattisgarh mines, which lifted 16.3% year on year to 8.1Mt. In comparison, production from Karnataka mines lifted 7.4% year on year to 5.1Mt. AME estimates NMDC to produce 41Mt of iron ore in 2017.
Tintina Resources Receives Draft Operating Permit for Black Butte Project 20 Sep 2017
Tintina Resources has announced it has received a draft operating permit from the Montana Department of Environmental Quality Hard Rock Mining Bureau for its Black Butte project in the US. This draft permit formally concludes the Completeness and Compliance review and signifies commencement of the Environmental Impact Statement (EIS). The EIS is expected to take approximately one year to complete. In addition, the Montana Public Service Commission approved an agreement on the 1st of September 2017 between Fergus Electric Cooperative and NorthWestern Energy to provide power to Black Butte. Fergus Electric will construct a new 100kV transmission line and substation which will draw from an existing NorthWestern transmission facility. The proposed 11.8Mtpa underground mine and concentrator at Black Butte would produce 30ktpa of copper over an 11-year mine life.
Amercias Silver to Extend Mine Life of Cosalá 20 Sep 2017
Americas Silver has released an updated Reserve and Resource statement for its Cosalá operation in Mexico. Reserves at the operation have been increased to 4.0Mt grading 3.9% zinc, 1.6% lead and 100g/t silver. Measured and Indicated Resources now total 12.1Mt grading 1.1% zinc, 0.5% lead and 134g/t silver. Americas Silver expects the increase in Reserves will extend the mine life at Cosalá beyond the currently planned end of life in 2023. AME forecasts Cosalá to produce 22ktpa of zinc and 40tpa of silver between 2018 and 2022.
Kinross to Offload Closed DeLamar Project in C$7.5m (US$6.1m) Deal 20 Sep 2017
Privately-held Integra Resources has announced that it will acquire the DeLamar project in Idaho, United States, from Kinross Gold. Kinross ceased operations at the open-pit mine in 1998 due to market conditions after producing 124koz of gold and 2.6Moz of silver over a four-year period. Integra cites exploration upside at the project and plans to release an updated Resource estimate during 2017. The C$7.5m (US$6.1m) deal will comprise of cash and shares. Kinross will retain a variable net smelter return. Concurrently, Integra also announced binding letters of intent to acquire two claims at the past-producing Florida Mountain project located adjacent to DeLamar.
First Gold Pour at Argonaut Gold’s 10.8Mtpa San Agustin, Mexico 20 Sep 2017
Argonaut Gold has announced first gold pour from its San Agustin open-pit, heap-leach project in Durango, Mexico. Total capital expenditure at San Agustin is estimated at approximately US$43m. Argonaut expects the 10.8Mtpa San Agustin to produce 80kozpa of gold equivalent over a mine life of 6.5 years. San Agustin contains approximately 82Mt of Indicated Resources grading at 0.32g/t of gold. AME expects San Agustin to produce approximately 26koz of gold in 2017 at an all-in sustaining cost (AISC) placing in the second quartile of AME’s global AISC curve.
EU Inflation Up 1.5% Y-o-Y in August 2017, and 0.3% M-o-M as Energy Costs Rise. 20 Sep 2017
The Eurozone inflation rate has risen 1.5% year on year in August 2017, following a 1.3% gain in July and matching market expectations while still below the European Central Bank’s target of close to, but below 2%. This was the highest inflation since April buoyed by a leap in energy prices. Month on month inflation rebounded in August, rising 0.3% after a fall of 0.5% in July. This was the first positive inflation rise since April with the cost of energy the biggest contributor as it rose by 4% year on year. Processed food, alcohol and tobacco prices increased 2%. Some EU countries improved on their unemployment figures. The jobless rate in Germany recorded 3.7% in July, falling from 3.8% in June. Spain’s unemployment rate remained unchanged at 17.1%, the highest in the Eurozone. The jobless rate in France picked up from 9.6% to 9.8%, while Italy’s rose 0.1% to 11.3%.