Ironbark No.1 Project Next to be Developed by Fitzroy Oz Resources, Qld 17 Nov 2017
AMCI-backed Fitzroy Australia Resources has announced it intends Ironbark No.1 to be its next coal development project in Queensland, Australia. Formerly named Ellensfield, the company anticipates the project to be ready for development by the second half of 2018, pending approvals and permits. If developed, Ironbark No.1 is expected to produce up to 3Mtpa of hard coking and thermal coal by longwall mining methods for the export market. Ironbark No.1 is located to the north of Fitzroy's currently-producing Carborough Downs operation.
Metinvest to Increase its Self-Sufficiency in Rail Cars 17 Nov 2017
Metinvest reported that it has decided to purchase 1,800 open wagons in 2017 and 2018. The company will almost double its railcar fleet to almost 4,000 cars. The decision was due to a shortage of rolling stock in Ukraine, which resulted from lower turnover of rail cars from Ukraine’s Railways. Metinvest plans to supply the first lot of 800 open wagons by the end of 2017 and the rest in the first six months of 2018. Metinvest needs around 18,500 open wagons to deliver raw materials and dispatch their finished products. Through the purchase of new rolling stock, the Group will increase its self-sufficiency in rail cars to 20%. In November 2017, Metinvest signed a three-year agreement with Lemtrans to cover about 50% of its demand for open wagons. Metinvest aims to cover the remaining 30% from Ukrainian Railways (Ukrzaliznytsia).
Nucor Kankakee to Build Merchant Bar Mill 17 Nov 2017
US steel producer Nucor has announced their intention to build a 454ktpa merchant bar quality (MBQ) mill at their 770ktpa Kankakee steel plant in Bourbonnais, Illinois. The installation of the new mill will allow full utilisation of plant’s melt capacity and infrastructure. Nucor has identified the US Midwest region as a large market for MBQ products and will use their proximity and position as a low-cost producer to displace imported product. The project will take approximately two years to complete and is estimated to cost US$180m.
Nevada Copper Receives US$3.5m Bridge Loan from Pala Investments 17 Nov 2017
Pala Investments, Nevada Copper's largest shareholder, has made available a US$3.5m short-term bridging facility to Nevada Copper. The funds will be used for the completion of a feasibility study and related engineering work for the Pumpkin Hollow project in the US, and for general working capital purposes. A 2015 feasibility study contemplated a 58ktpd open-pit mine and 6ktpd underground mine, feeding a single 64ktpd concentrator. Average production over the proposed 23-year mine life was expected at around 90ktpa of copper with gold and silver credits. However, Nevada Copper now plans to construct a smaller-scale, lower capital cost and higher grade underground mine at Pumpkin Hollow. The new feasibility study and associated technical report is expected to be completed shortly.
Output of Chinese Refined Zinc Rises 17 Nov 2017
According to China’s National Bureau of Statistics (NBS), Chinese refined zinc production climbed in October. NBS reports refined zinc production totalled 577kt during October, an increase of 7.4% month on month. Year-on-year output was 4.0% higher. The higher output has stemmed from a number of smelters now operating at or near capacity, including Jiangxi Copper’s 100ktpa JCC Jiujiang smelter, Shaanxi Non-ferrous’ 360ktpa Shaanxi Hanzhong and Xing’an Copper & Zinc’s 115ktpa Xing’an smelter. While Chinese zinc production has risen over the last two months, output over the first ten months of 2017, remains 2.1% below the comparable period in 2016 due to concentrate supply constraints. AME forecasts China will produce 6.1Mt of zinc in 2017, 2.6% lower than in 2016.
Supplementary Underground Feed Sees Production Rise at Los Filos, Mexico 17 Nov 2017
Leagold Mining has reported results from its Los Filos mine in Mexico for the September Quarter of 2017. Year-on-year gold production increased 2% to 47.8koz while all-in sustaining costs (AISC) rose 6% to US$993/oz. AME estimates that average grade placed rose 33% to 1.0g/t on the back of high-grade underground feed driving increased production, offsetting a 4% decline in tonnes leached and a 26% drop in recovery. Since Leagold acquired Los Filos from Goldcorp in April 2017, general and administrative costs have declined 54% to US$1.74/t whilst processing costs dropped 9% to US$7.4/t. Leagold cited improved utilisation rates and higher productivity of mining equipment during the Quarter. AME expects Los Filos to meet the mid-range of 2017 guidance of 185-200koz of gold. Access to the test mining area of the Bermejal underground is forecast during the first half of 2018.
German GDP Growth Estimates See 2.8% Growth for September Quarter 2017 17 Nov 2017
Flash estimates see Germany’s gross domestic product expanding 2.8% year on year in the September Quarter 2017, following the 2.3% growth in the June Quarter. This is the strongest pace of expansion since the March Quarter in 2014. In terms of quarter-on-quarter data, the September Quarter estimates see 0.8% growth. This followed 0.6% growth in the June Quarter and exceeded market expectations of 0.6% growth. Main contributions in the quarter came from improved fixed asset investment levels and net trade, as the September Quarter saw a bigger increase in exports than the increase in imports. Final consumption expenditure by both households and the general government remained stable. As Germany’s economic strength is positive for both the Euro and the global outlook, the pace of growth will strain against its capacity and place added inflationary pressures.