Rio Tinto Limited (RIO) said the sale of its borates business did not achieve acceptable values, forcing the mining giant to take it off the market. The company said the sales process is continuing for other businesses slated for divestment, including talc. Rio Tinto also decided not to sell its Jadar lithium-borate deposit in Serbia, which would now be transferred from its Exploration group to be managed within the borate business. The company has already agreed to sales totalling US$2.5 billion this year.
Northern Energy Corporation Limited (NEC) announced a 54% increase in the marketable reserve base at its Surat Basin Elimatta Coal Project in southern Queensland. The company said the marketable reserves for the Elimatta project has increased from 69 million tonnes to 106 million tonnes comprising proven reserves of 82.3Mt and probable reserves of 23.5Mt. NEC said the reserves have been delineated based on the establishment of an open cut mine producing around 5Mtpa of low ash high volatile thermal coal for more than 20 years. The company said it would now lodge a mining lease application over the project area as the next step towards development of the mine. NEC intends the coal from the project to be shipped through Gladstone’s proposed Wiggins Island Coal Terminal via the proposed Surat Basin Rail linking Wandoan with the existing Moura to Gladstone rail. The company said the timing of the rail and port infrastructure projects is the key determinant in the timing of any mine development at Elimatta.
Mineral Deposits Limited (MDL) announced that over one tonne of gold has been poured at the Sabodala Gold Mine in Senegal since start-up of full production in early April. The minerals and gold explorer and developer said the plus US$220 million project was now processing material above the nominal mill capacity of 2 million tonnes per year. The company said it expects to produce 160,000 ounces in calendar 2009 at a cash operating cost of between US$420-440 per ounce. The mine is operated through Sabodala Gold Operations SA, which is 10%-owned by the Government of the Republic of Senegal and 90% owned by MDL.
Drillsearch Energy Limited (DLS) said it had sold its interests in two Surat Basin permits in Queensland to Primary Petroleum Pty Limited. Drillsearch said they would receive 1,000,000 fully paid ordinary shares in Bounty Oil & Gas NL (BUY). BUY shares were trading at 2c per share as at 1018 AEST, 25 May. The company said the sale was a part of strategic move aimed at strengthening the company’s balance sheet. The sale of these permits would save the company more than $10 million dollars in expected work commitments over the next three years.
Boulder Steel Limited (BGD) signed an MOU with Arabia for Business Strategy LLC of Saudi Arabia to form a strategic partnership. The Australian metal producer said the partnership involved jointly developing Boulder’s Iron and Steel Production Plant in Gladstone/Australia, developing value-adding and finishing production facilities in Saudi Arabia and acquiring raw material resources related to iron and steel making in Australia. The company said both parties had agreed to immediately commence their cooperation and to pursue their joint intentions. Boulder added that a formal agreement would need to be put in place within the next three months from the signing of the document.
Chrysalis Resources Limited (CYS) shares surged over 25% by Monday afternoon following the company’s announcement it had intercepted significant high-grade gold mineralisation at shallow depths. The discovery was made at the Spongelite Prospect, which is part of the Pioneer Gold Project near Norseman in Western Australia. The company said 22 holes were drilled over an area of 120 metres long by 50 metres wide. Chrysalis said drilling intersected quartz veining up to 12 metres in thickness. The company added that a further two kilometres of possible strike extensions are yet to be fully investigated.
