Archive for the ‘Gold’ Category
INDIAN FARMERS GET CHEAP BANK LOANS USING GOLD AS SECURITY
Saturday, June 4th, 2011Farmers in India do deals
with banks and
get cheap loans against gold
Indian farmers are queuing up to get farm loans from banks at interest rates as low as 4% using gold as security, as against the 30% interest rates offered by local money lenders.
Author: Shivom Seth
Posted: Friday , 03 Jun 2011
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MUMBAI -
Farmers in India have a new trick up their sleeve, especially those in the southern states of India. Many farmers have found to their amazement that banks are ready to extend loans to the farmer if they tender gold jewellery as collateral. Though the custom is an old and tried one and harboured for several years by local money lenders and non banking financial institutions in smaller villages, what has now got farmers flocking to the nearby bank is the low rate of interest.
“Most farmers have woken up to the fact that they can get a loan, using gold as security, for a low interest rate of just 4%. Farmers currently pay 7% on crop loan. There is an interest subvention clause that most farmers are drawing on these days, ostensibly under the category of farm loan.,” said Chaitanya Shellar of Sonamull Traders, a bullion investment firm.
Several years ago, India’s central bank the Reserve Bank of India asked its member banks to introduce short-term farm loans at an interest outgo of 7%. The idea was to encourage farmers to build on the agricultural acerage.
In 2009, Finance minister Pranab Mukherjee in his budget speech announced that the government would pay additional subsidy of 1%, as an incentive to those farmers who repaid their short-term crop loans on schedule. The interest rate for these farmers then had come down to 6%.
This year, in his budget speech, Pranab Mukherjee announced that those farmers who repaid their dues in time would get an interest subsidy of 3%. This has effectively brought down the interest rate of crop loans to 4%.
“Several public and private sector banks are intent on doubling their gold-backed loan portfolio, by extending their lending activity to small and marginal farmers. Some schemes enable the farmers to access loans backed by ornamental gold for a maximum tenure of two years, following which the gold assets of the customer can be rolled over,” said a banking official.
Added another official of Andhra Bank: “These types of loans are beneficial to the customers, who can unlock the value of the gold. And to us, too, because gold always appreciates in value.”
The banking officials pointed out that the interest earnings from farm-lending against gold was modest. Against this, loans against gold to non-farm retail segment are considered to have higher return rates and are associated with less risk of turning into Non-Performing Assets.
Risk averse
It is not a recent phenomenon. Players in the gold loan business have been regularly urging poor families in India to leverage their gold holdings instead of keeping their valuables idle. Analysts insist that the sizeable spread that the company can earn and the low non-performing loans make the business lucrative.
Rather than rely on the local pawn broker or money lender, banks are enticing farmers to a highly secure and trusted lending institution. “Even affluent farmers have a means of accessing short-term cash on personal valuables. Many farmers with significant amounts of gold have a new way to access emergency cash,” said a banker.
The main institutions to provide credit are the state cooperative banks, central cooperative banks, primary agricultural credit societies, land development banks and scheduled commercial banks including regional rural banks.
This has ensured that poor farmers in the remotest corner of India can access farm loans. And can hawk old items of gold as security.
“Many farmers are now using their household gold jewellery as collateral,” confirmed Venugopal Shastri, bullion analyst with a foreign brokerage house. He added that for the bank, shelling out a loan against gold was practically risk-free since banks ensure a significant margin between the loan amount and the value of gold.
Bankers said that most households in the southern states of India have at least some gold holdings, and have been regularly indulging in refinancing of loans against gold. While the banks provide short to medium term loans to farmers, some are even open to converting short-term loans into medium-term ones, when there are problems of recovery due to crop failures or natural calamities.
“Gold, gems and jewellery are allowed as collateral, so the banks can loan more money. Loans allow people to start or expand their businesses, which expands the economy and creates more jobs,” said bullion analyst Ashwin Thanedar.
He added that allowing gold to be used as collateral made sense because many people already buy gold as their savings, preferring it to hard currency or bank savings.
“Since farmers can put their gold down as collateral to obtain loans, they would not need to borrow from local money lenders or pawn shops that charge outrageously high interest. Even J P Morgan Chase allows some of its clients to use the precious metal as collateral,” said another banker, adding that gold was re-establishing its role as a monetary and financial asset in this way.
In the international market, gold rose for the second consecutive day on Thursday, nearing a one-month high, with reports indicating that output in the manufacturing sector in the US hit its lowest level since 2009. Spot gold rose to $1,542.89 an ounce.
In India, at the Multi Commodity Exchange, gold for delivery in August declined by 0.25%, with a business turnover of 1,096 lots. The metal for June delivery lost 0.20% with a business volume of 113 lots.
More competition
Analysts maintain that the gold loans market in India is set to witness more competition with financial institutions and banks entering the lucrative business. Kerala-based Federal Bank is to widen its network of exclusive gold loan branches in various parts of the country. It already has 60 branches in Tamilnadu and Karnataka and is planning to increase its gold loan branches to 350 by the end of the year, said Shyam Srinivasan, managing director of Federal Bank.
Bankers point out that the default rate is much lower for gold loans because Indians do not want to risk losing their family jewellery.
Trading gold for immediate cash is viewed in India as the equivalent of taking out a home equity loan to expand a business or simply to buy more farm machinery. Earlier, local money lenders offered loans against jewellery at interest rates of 30% or more. Gold loans by banks are vastly different, interest rates are lower and the business is regulated.
Sourced & published by Henry Sapiecha
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GOLD INVESTMENT IN THIS AUSTRALIAN COMPANY SHOULD BE LOOKED AT
Monday, May 2nd, 2011Commissioners Gold Limited
Commissioners Gold Limited is an exploration company in a hurry. Five years of solid groundwork and drilling on the Company’s tenements has already been completed, and it is now seeking to delineate a robust gold resource. To deliver on this there can be no substitute for drilling holes.
To fund further drilling, the Company seeks to raise $4,500,000 by the offer of 22,500,000 shares at an issue price of 20 cents per share.
In addition, the Company intends at a later date as a loyalty gesture to offer non-renounceable entitlement Options (and seek listing for those Options) to shareholders who are on the share register at a time to be set by the Board approximately three to five months after the Company’s shares have been listed on the ASX. The non-renounceable entitlements issue of Options will be on the basis of 1 Option for each 3 shares held.
Company Background
Offer Overview
Offer Commissioners Gold Limited
Issue Price $0.20 per share
Minimum Investment $2,000
Amount Sought $4,500,000
Open Date 7th April 2011
Close Date 25th May 2011
List Date 10th June 2011
Market Capitalisation $8,966,000
Proposed ASX Code CGU
Disclosure…
InvestSMART will receive a 4% placement fee on all applications bearing the InvestSMART stamp.
Documents & Links…
Download Prospectus
Request Request a Prospectus by Post
Download Document AFR Article 29/04/2011
Download Tips
Contact InvestSMART on 1300 880 160 for more information
The Company name, “Commissioners Gold Limited”, is a tribute to the Gold Commissioners of colonial central west New South Wales. In that geological province (the Eastern Lachlan Fold Belt) there have been exciting recent discoveries like McPhillamys, together with the proving up of projects like Tomingley, Marsden and Dargues Reef. There are presently three major producing gold mines in the Eastern Lachlan: Cadia, Cowal and Northparkes.
Since the 1980s most exploration in the area has concentrated on copper-gold porphyry targets. For a number of reasons the Company’s tenements were largely overlooked during this 1980s “gold rush”. The Directors believe this ground includes a number of obvious exploration targets that can be tested rapidly and cheaply.
The Directors believe the Company’s present portfolio of tenements represent the best potential to enhance shareholder wealth.
Investment Highlights
* Commissioners Gold is a gold exploration company focused on proving up economically viable deposits of gold in the world class Lachlan Fold Belt mineral province of New South Wales
* The Company has rigorously acquired a portfolio of six projects over six tenements, a ground area of over 500 square kilometres
* The Company owns 100% of each project, with the exception of EL 5939 where the Company is earning an initial 50% interest and EL 7702 where the Company is earning an initial 70% interest
* A series of pre-defined drill targets are prepared, with drilling on-going at Oberon (“Black Bullock”) and at Cowarra near Cooma
* Behind this strategy and focus the Company has a well qualified, experienced Board of Directors and a sound project management team
* All Commissioners Gold projects are extremely well located in NSW with electricity, sealed roads and towns nearby.
Exploration Strategy
* build on the JORC-compliant Inferred gold resource at Cowarra
* focus on a limited number of quality projects – funds not dissipated by being spread too thinly
* exploration based on science not industry fashion – in target areas neglected by other explorers
* prospective projects – providing the option to farm out on favourable terms as a project is advanced
* explore sequentially – to maintain a pipeline of projects
* acquire additional projects mainly by application – spend funds on exploration rather than paying speculative vendors/prospectors, and
* lean overheads – focus both geologically and geographically, streamline administration and put the money into drilling holes in well thought out targets
This strategy is designed to build long term wealth for shareholders by advancing projects to a commercial development stage through well funded exploration.
This focused approach will develop specific company expertise that will produce a competitive advantage over other similar sized explorers.
The Rise and Rise of Gold
Over the last few years, Gold has been a standout performer throughout the turmoil in global markets. Gold is a precious metal with numerous uses, including coinage, jewellery, luxury goods, electronics and medicine. Gold is also highly sought after for its investment value, particularly in times of market crises such as inflation, war, currency failures and stock market declines.
As can be seen in the below chart, the price of gold has increased substantially over the last decade, providing substantial returns for the shareholders of gold explorers that uncover sizable resources on their tenements.
Sourced & published by Henry Sapiecha
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CHILE GOLD MINE MERIDIAN PRODUCES RECORD GOLD OUTPUT
Monday, April 25th, 2011Meridian Gold produces
80,300 oz of pure gold in quarter
TORONTO, July 6 (Reuters) – Meridian Gold Inc. MNG.TO said on Friday its second-quarter production was 80,300 ounces of gold, as production at the company’s El Penon mine in Chile topped internal projections by 13 percent.
The company, target of a takeover proposal led by Yamana Gold (YRI.TO), also produced 2.3 million ounces of silver and 870 tonnes of zinc, it said.
Meridian’s Rossi/Storm mine in Nevada, a joint venture with Barrick Gold Corp. (ABX.TO), produced its first gold during the quarter, and is on track to start full production in the third quarter, Meridian said.
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GOLDEN HANDSHAKE COURT SUIT FOR $1M BY EX CEO
Wednesday, March 23rd, 2011Former CEO sues gold firm for $1m
Leonie Wood March 23, 2011
ED ESHUYS may have set some ambitious performance goals over the four years that he was chief executive of the gold producer St Barbara Ltd, but in the tumultuous year of 2008 he may have been too ambitious.
St Barbara’s production and budgetary targets were not met, cash was tight, and with a global crisis of confidence paralysing the banking sector there were grim prospects of refinancing the company’s facilities. As the Victorian Supreme Court heard yesterday, disappointment followed disappointment at St Barbara in 2008.
A five-year management budget did not meet Mr Eshuys’ standards, so was deferred; a multimillion-dollar accounting error emerged in October; and there were difficulties mining ore at the company’s West Australia operations.
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By November 2008, the court heard, Mr Eshuys’ fellow directors had become ”alarmed” by a further deterioration in the cash position. By mid-December, St Barbara’s board found a replacement for Mr Eshuys.
When he left in March 2009, the company paid its outgoing chief executive various entitlements plus a sum of $150,000, ostensibly for hitting some performance targets.
But Mr Eshuys is suing St Barbara for up to $1 million, which was the most he could receive for reaching performance-based goals.
He argues that while St Barbara under his management fell short of stated operating cost targets and gold production targets, the board did not fairly and reasonably take into account other factors.
Mr Eshuys yesterday told Justice Stephen Kaye that by December 2008, despite the setbacks and cash-flow figures being below budget, he believed the company’s position was improving and that by February 2009 it would have gone ”close to, if not exceed” the budgeted cashflow forecast.
A letter from Mr Eshuys’ lawyers to St Barbara’s lawyers in December 2008, which was tendered in court, contended Mr Eshuys ”is meeting the milestones” set out in his performance contract, namely gold production targets and the company’s cash position.
Asked by counsel for St Barbara, Philip Solomon, SC, what he meant by ”is” meeting the targets, Mr Eshuys told the court that at the time he ”fully believed that we would achieve them [the targets] by the end of February”.
Later he told Justice Kaye that in January 2009, ”we were short of budget but we were improving”.
The court heard St Barbara in mid-2008 raised $120 million through a rights issue, but some St Barbara directors and some of its shareholders were concerned about the suddenness of the raising. In February 2009 St Barbara again tapped the market to raise $75 million.
The court also heard that St Barbara’s woes in late 2008 and early 2009 coincided with rapidly rising Australian dollar prices for gold. Under cross-examination, Mr Eshuys conceded it was a ”poor” outcome that gold production fell 16 per cent short of budgeted figures between September 2008 and February 2009.
St Barbara, which is expected to begin calling witnesses today, argues it was not obliged to pay Mr Eshuys more than $150,000
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MAGNETITE COPPER & GOLD MINE SOUTH AUSTRALIA
Tuesday, September 14th, 2010IMX: CAIRN HILL MINE NEAR COOBER PEDY – FIRST ORE PRODUCTION
Posted on June 4, 2010 by Coober Pedy Regional Times
Cairn Hill – Pit1, first blast, shot being loaded, with drilled ground and partial mining fleet in background
Miner, IMX Resources Limited (ASX:IXR) is pleased to announce that the first blast of ore has occurred at its Cairn Hill Phase 1 magnetite – copper – gold mine in South Australia and the mine is now in production.
IMX has been pre-stripping the first pit for four months for construction material for the ROM and laydown pads. To date approximately 380,000 bcm of material has been moved. The top of the orebody adjacent to the trial mine in Pit 1 has been exposed, drilled and blasted. This first blast comprises approximately 40,000 tonnes of ore. Continue reading ?
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AUSTRALIAS MINERAL WEALTH LOCATIONS HERE
Friday, July 30th, 2010PROFILE OF MAJOR MINERALS, OIL AND GAS
This section is based on information contributed by Geoscience Australia and the Australian Bureau of Agricultural and Resource Economics (ABARE) (September 2006).
Note: Values are given in Australian currency unless otherwise stated.
MINERALS
Maps 16.23, 16.24 and 16.25 show selected mines and deposits – map 16.23 covers gold and diamonds; map 16.24 covers bauxite, coal, iron ore, manganese ore and uranium; map 16.25 covers base metals and mineral sands.
16.23 SELECTED MINES AND DEPOSITS OF GOLD AND DIAMONDS – 2005
16.24 SELECTED MINES AND DEPOSITS OF BAUXITE, COAL, IRON ORE, MANGANESE AND URANIUM – 2005
16.25 SELECTED MINES AND DEPOSITS OF BASE METALS AND MINERAL SANDS – 2005
Bauxite, alumina and aluminium
Bauxite is a heterogeneous naturally occurring material from which alumina and aluminium are produced. The principal minerals in bauxite are gibbsite, boehmite and diaspore (which has the same composition as boehmite but is denser and harder). Bauxite is the ore from which alumina (aluminium oxide) is extracted while aluminium is produced from smelting alumina.
Australia’s aluminium industry is a large integrated industry of mining, refining, smelting and semi-fabrication, which is of major economic importance nationally and globally. Its EDR of bauxite (5.8 gigatonnes (Gt)) provide a world class resource base for the industry, which comprises five bauxite mines, seven alumina refineries, six primary aluminium smelters, twelve extrusion and two rolled product (sheet, plate and foil) mills. In 2005 Australia was the largest producer of bauxite and alumina. The Australian aluminium industry directly employs over 12,000 people.
Production in 2005 totalled 60.0 Mt of bauxite, 17.7 Mt of alumina and 1.9 Mt of aluminium (ingot metal). Compared with 2004 these represented an increase of 6.0% for bauxite, 7.3% for alumina and no change for aluminium.
In 2005, the Queensland Government called for expressions of interest in the development of the Aurukun Bauxite Project. The objectives for the development of the Aurukun resource include its development as a source of bauxite for a new alumina refinery in Queensland. The $US1.3b expansion plans for the Gove alumina refinery in the Northern Territory are progressing. The project is scheduled to be completed by 2007 and will lift the refinery’s capacity from 2.1 Mt to around 3.8 Mt per year.
Coal
Black coal is a solid rock formed from brown coal after greater heat and pressure have been applied. Black coals are distinguished by rank and may be sub-bituminous, bituminous or anthracite. Black coal is primarily used for electricity generation and the production of coke, which is integral to the production of iron and steel. Black coal is also used as a source of heat in the manufacture of cement and food processing. Brown coal is a less matured form of coal. It has a high ‘in situ’ moisture content (up to 60%) with a correspondingly low heating value. It is highly susceptible to spontaneous combustion. Brown coal is used widely for power generation, is made into briquettes, and can be converted to liquid or gaseous fuels.
Although coal mining occurred in all states in 2005, New South Wales and Queensland produced over 96% of all black coal (anthracite, bituminous and sub-bituminous coals) and Victoria produced all the brown coal (lignite). Australia’s EDR of recoverable black coal is 39.2 Gt, which is about 5% of total world EDR making Australia’s holdings the sixth largest in the world. EDR of recoverable brown coal is 37.4 Gt, which gives Australia the largest holding in the world and accounts for 24% of world EDR. All EDR is located in Victoria and about 89% is located in the La Trobe Valley.
Australia’s coal production and exports have risen strongly over the last two decades. Production of black coal increased in 2005. Output of saleable black coal at 303.0 Mt was 1.7% higher than in 2004 and made Australia the world’s fourth largest producer. Brown coal production reached 67.2 Mt in 2004-05. Australia was the world’s fifth largest producer of brown coal with about 8% of production.
Copper
Copper occurs in various forms. It can occur naturally in its pure state (native copper) but is principally mined as chalcopyrite. Copper is one of the most important and widely used metals of modern society due to its properties of:
- high electrical and heat conductivity
- ductile and malleable
- resistant to corrosion
- ability to form alloys with other metals.
These properties enable copper to be used in a wide range of applications. The largest use of copper is in the electrical industry where copper wire and cable account for about half of the world’s copper production. Other major markets are the motor vehicle and construction sectors. Copper is also an integral part of the expanding information technology sector and is used in the manufacture of computers, mobile phones, fax machines and televisions.
Major Australian copper mining and smelting operations are at Olympic Dam (South Australia) and Mt Isa (Queensland), with smaller projects in New South Wales, Queensland, Western Australia and Tasmania. Australia’s EDR of copper is 41.4 Mt giving it the world’s second largest holding of copper EDR with 8% of the total.
Mine production of copper in 2005 was 921 kt of contained copper, 7% higher than in 2004 (860 kt). Queensland dominates Australian production with 399 kt (largely from Mt Isa) followed by South Australia with 213 kt (all from Olympic Dam). The remaining production occurred in New South Wales (190 kt), Western Australia (90 kt) and Tasmania (30 kt). As a producer, Australia ranks fifth, with 6% of world output, after Chile (36%), the United States of America (8%) and Indonesia and Peru (both 7%).
Diamond
Diamond is composed of carbon, and is the hardest known natural substance, but a sharp blow can shatter it. Diamonds occur naturally but are extremely rare compared with other minerals. Diamonds are thought to form deep in the earth at high temperatures and pressures and are carried to the surface or near surface by volcanic rocks in narrow cylinder-like bodies called ‘pipes’. A large proportion of industrial diamonds are manufactured, and it is also possible to produce synthetic diamonds of gem quality. Uses for diamond include jewellery, computer chip manufacture, drill bit facing, and stone cutting and polishing.
Australia produced 30.7 million carats (Mc) of diamond in 2005, making it the world’s second largest producer of diamond by weight after Russia, with Botswana and Congo (Kinshasa) ranked third and fourth respectively. It is the second largest producer of industrial-grade diamond and the third largest producer of gem/near gem diamond after Botswana and Russia.
Australia’s EDR of gem/near gem diamonds is 124.2 Mc and industrial diamonds 129.2 Mc. These are both more than double the EDRs for 2004 as a result of the decision to proceed with underground mining at Argyle and a related upgrade of around half of the mineral resource to ore reserves based on the results of a comprehensive feasibility study. Australia’s EDR of industrial diamond is ranked third in the world, with 21% of world EDR.
The majority of Australian production was from the Argyle mine in the Kimberley region of Western Australia which produced 30.5 Mc of mostly industrial and near gem diamonds in 2005. Argyle production was 48% higher than in 2004 despite mining constraints within the deepening open pit.
Gold
Gold has a range of uses but the two principal applications are as an investment instrument and in the manufacture of jewellery. Secondary uses, in terms of the amount of gold consumed, are in electronic and dental applications.
Gold resources occur and are mined in all Australian states and the Northern Territory. Australia’s EDR of gold is 5,225 tonnes, the second largest in the world after South Africa.
Australian gold production in 2005 (reported by ABARE) was 263 tonnes. This level of production makes Australia the second largest producer in the world after South Africa. The Super Pit at Kalgoorlie in Western Australia was the largest producer with an output of nearly 26 tonnes (just over 0.8 million ounces).
Iron ore
Iron ore is the source of primary iron for the world’s steel industries. Over 97% of iron ore production occurs in the Hamersley Basin (Western Australia). Small production also comes from elsewhere in Western Australia, Tasmania, South Australia and New South Wales. Australia’s EDR of iron ore is 16.4 Gt which is about 10% of world EDR. Western Australia has almost all of Australia’s EDR with about 92% occurring in the Pilbara district. Australia has the fifth largest iron ore holding in the world.
Australia’s production of iron ore in 2005 (reported by ABARE) was 261.4 Mt, which was 17% of world output, making Australia the world’s third largest producer after China and Brazil.
Manganese ore
About 90% of the world’s production of manganese is used in the desulphurisation and strengthening of steel. Other uses include the manufacture of dry batteries, as a colorant, and as an ingredient in plant fertilisers and animal feed. Manganese ore was mined in the Northern Territory and Western Australia in 2005. Production reached 3.9 Mt, 14% of world output, making Australia the third largest producer in the world. Australian production is from three mines – Woodie Woodie (Western Australia) and Groote Eylandt and Bootu Creek (both in the Northern Territory). Australia’s EDR of manganese ore, at 143 Mt, is 12% of world EDR, fourth largest in the world.
Mineral sands
The three main minerals mined from Australian mineral sands deposits are the titanium-bearing minerals rutile and ilmenite and the zirconium-bearing mineral zircon. Rutile and ilmenite are used mainly in the production of titanium dioxide pigment. A small portion, less than 4% of total titanium mineral production and typically rutile, is used in making titanium sponge metal. Zircon is used as an opacifier for glazes on ceramic tiles, and is used in refractories and the foundry industry. Production in 2005 was from Western Australia, Queensland, Victoria and New South Wales.
Australia’s EDR of ilmenite is 214.9 Mt of which 59% is in Western Australia, 25% in Queensland and the rest in New South Wales (7%), Victoria (6%) and South Australia (3%). Australia accounts for 19% (the second largest holding behind China at 35%) of the world’s EDR of ilmenite. Queensland, New South Wales, Western Australia and Victoria together hold over 97% of Australia’s 20.5 Mt EDR of rutile, which, at 40% of world EDR, is the world’s largest.
EDR of zircon is 32.9 Mt, with Western Australia and Queensland holding just over 68%. In world terms, Australia’s EDR is 43% of the total and is the largest holding by any country.
Although Australia has substantial EDR of mineral sands, Geoscience Australia estimates that some 17% of ilmenite, 28% of rutile and 25% of zircon EDR is unavailable for mining. They are in areas quarantined from mining that are largely incorporated into national parks. Deposits in this category include Moreton Island, Bribie Island and Fraser Island, Cooloola sand mass, Byfield sand mass and Shoalwater Bay area (Queensland) and Yuraygir, Bundjalung, Hat Head and Myall Lakes National Parks (New South Wales).
In 2005 Australia produced 2.03 Mt of ilmenite, 177,000 tonnes of rutile, 55,000 tonnes of leucoxene and 426,000 tonnes of zircon. The bulk of Australia’s rutile and zircon production is exported compared with about 35% for ilmenite. The remaining ilmenite is upgraded to synthetic rutile. Australia was the world’s largest producer of ilmenite, rutile and zircon (with 23%, 47% and 40% of world output respectively) in 2005.
Nickel
Australia’s EDR of nickel increased by 6% to 23.9 Mt in 2005. Western Australia has the largest nickel resources, with over 90% of total Australian EDR. Australia holds the largest share of the world’s EDR, with 37%.
Australian mine production of nickel in 2005 increased by 1% to 189,000 tonnes, all from Western Australia. The value of all nickel products exported was $3.5b. Australia was the world’s third largest producer, accounting for 13% of estimated world nickel output.
Tantalum
Australia is the world’s largest producer of tantalum in the form of tantalum concentrates. Australia also has the world’s largest stock of tantalum resources, principally in its deposits at Greenbushes and Wodgina in Western Australia.
Australia has the world’s largest EDR of tantalum at 52,000 tonnes. This is approximately 95% of world EDR.
Uranium
Australia has 716,000 tonnes of uranium in Reasonably Assured Resources recoverable at costs of less than US$40/kilogram of uranium – this is the world’s largest resource and represents 37% of world resources in this category (OECD Nuclear Energy Agency & International Atomic Energy Agency, 2005). Almost all of Australia’s total resources are in six deposits:
- Olympic Dam (South Australia) which is the world’s largest uranium deposit
- Ranger, Jabiluka and Koongarra in the Alligator River region (Northern Territory)
- Kintyre and Yeelirrie (Western Australia).
Three uranium mines operated in 2005 – Ranger open cut, Olympic Dam underground mine, and the Beverley (South Australia) in situ leach operations. In 2005 Ranger produced 5,906 tonnes of uranium oxide, Olympic Dam 4,335 tonnes and Beverley 977 tonnes for a total of 11,218 tonnes, 6% higher than for 2004. Australia, with approximately 23% of world uranium production in 2005, is the world’s second largest producer after Canada (28%). While there are a number of undeveloped deposits in Western Australia, Northern Territory, South Australia and Queensland, uranium mining is only allowed to occur in the current three mines in the Northern Territory and South Australia.
Exports of uranium oxide in 2005 were a record 12,360 tonnes, valued at $573m. Exports are controlled by Australian Government bilateral safeguards agreements, which are designed to ensure that Australia’s uranium is used only for electricity generation and is not diverted to any military purposes. Importing countries must be signatories to the International Atomic Energy Agency’s safeguards arrangements and have entered into an agreement with the Australian Government to adhere to safeguard obligations for exporting uranium.
Australian mining companies supply uranium under long-term contracts to electricity utilities in the United States of America, Japan, European Union (United Kingdom, France, Germany, Spain, Sweden, Belgium and Finland), Republic of (South) Korea and Canada.
Zinc, lead, silver
Zinc is the 23rd most abundant element in the earth’s crust. The construction, appliance and vehicle manufacturing industries use large amounts of zinc, mainly as coatings on steel beams, sheet steel and vehicle panels in the automotive industry.
The widespread occurrence, relatively simple extraction, and combination of desirable properties have made lead useful to humans since at least 5000 BC. In deposits mined today, lead (in the form of galena) is usually associated with zinc, silver and sometimes copper, and is extracted as a co-product of these metals. More than half of the lead used comes from recycling, rather than mining. The largest use is in batteries for vehicles and communications.
The relative scarcity, attractive appearance and malleability of silver has made it suitable for use in jewellery, ornaments and silverware. Its extensive use in coins throughout history has declined over the past 40 years. In Australia, the 1966 fifty-cent piece was the last coin in general use to contain silver (80% silver, 20% copper). Silver is mined and produced mainly as a co-product of copper, lead, zinc, and to a lesser extent, gold. Today, photographic paper and film, followed by the electronics and jewellery/tableware industries are the most important users of silver.
Australian EDR of zinc is close to 42 Mt, with Queensland holding 62%. The Northern Territory, New South Wales, Western Australia and Tasmania also have zinc EDR.
Australia’s EDR of 23.8 Mt of lead is 32% of world EDR. Queensland has 60% of total Australian EDR. Other holdings are in the Northern Territory, New South Wales, Western Australia and Tasmania.
EDR for silver in 2005 was 44 Kt, with Queensland having the largest share at 67.5%. Other holdings occur in South Australia (12.5%), Northern Territory (11.3%), New South Wales (5.0%), and Western Australia (2.5%) with the remainder in Tasmania and Victoria.
Australia has the world’s largest EDR of zinc (18% of the world) and lead (32%), and the second largest EDR of silver (16%).
Mine production of zinc, lead and silver in 2005 was 1.37 Mt, 767,000 tonnes and 2,407 tonnes respectively. Production was higher for each commodity compared with 2004, with zinc up 33,000 tonnes, lead up 90,000 tonnes and silver up 170 tonnes. In production, Australia ranks second for lead and zinc after China and fourth for silver after Peru, Mexico and China. Cannington (Queensland) is the world’s largest and lowest cost silver and lead operation and produced almost 288,000 tonnes of lead and 43.9 million ounces of silver in 2005. Century (Queensland) had the largest zinc output at 501,000 tonnes.
OIL AND GAS
Map 16.26 shows significant locations of oil and gas production and includes oil and gas production locations, oil and gas pipelines and oil refineries.
16.26 LOCATIONS OF OIL AND GAS PRODUCTION AND PIPELINES – 2005
Crude oil and condensate
In 2005-06 production of total crude oil and condensate from the North West Shelf (off Western Australia) and the Gippsland Basin (Victoria) accounted for 41% and 19% respectively of total Australian crude oil and condensate production. The North West Shelf was the major producer of condensate during 2005-06 with 79% of total Australian production sourced from that region.
Liquefied natural gas (LNG)
LNG production has in previous years been solely from the North West Shelf Venture but in February 2006 production commenced from the LNG plant in Darwin (Northern Territory). Australian LNG production in 2005-06 was 12.38 Mt. Export earnings from LNG in 2005-06 were $4.4b, an increase of $1.2b on 2004-05.
Liquefied petroleum gas (LPG)
LPG is a valuable co-product of oil and gas production and petroleum refining. The major constituents of LPG are propane and iso- and normal-butane, which are gaseous at normal temperatures and pressures, and are easily liquefied at moderate pressures or reduced temperatures. Operations involving LPG are expensive in relation to other liquid fuels because LPG has to be refrigerated or pressurised when transported and stored. LPG is an alternative transport fuel for high mileage vehicles in urban areas, as well as a petrochemical feedstock and domestic fuel.
In 2005-06 the major producers were the Gippsland Basin and the North West Shelf accounting for 41% and 46% of total production respectively.
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GOLD MINING INFO RELEASED BY CHALICE GOLD MINES
Thursday, July 29th, 2010Chalice unveils maiden resource
for Koka
The West Australian June 4, 2010, 11:10 am
Chalice Gold Mines has unveiled a maiden resource of 4.6 million tonnes for 760,000 ounces for the Koka deposit at its Zara project in Eritrea.
The company says its feasibility study, being compiled by Lycopodium Minerals, AMC and Knight Pisold, is expected to be completed next month.
Chalice holds an 80 per cent stake in the Zara project with an option to acquire the balance from Dragon Mining.
Chalice shares were unchanged at 49.5 cents at 11am.
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GOLD PROSPECTORS HIT THE FIELDS
Thursday, July 29th, 2010Prospectors hit Goldfields
as gold price soars
MALCOLM QUEKETT, The West Australian June 14, 2010, 7:11 am
The West Australian ©
It is somewhere south of Menzies and Greg Clark pulls his specially kitted-up ute off the road and heads into the bush.
There is low scrub, jagged rocks, a long-abandoned mine, and, of course, red earth.
It looks and feels like gold country. And it still is.
So with the price of the precious metal skyrocketing, closing at $US1226.70 an ounce on Friday, it is not surprising that Mr Clark is just one of a steady stream of amateur prospectors to have set up shop in the Menzies caravan park.
Mr Clark and his wife, Chris, arrived 12 months ago from Brisbane on a prospecting holiday and are still there, having found jobs in the town and bought a block.
“I like the community, it’s a nice little town, it’s got potential,” he said yesterday. “And there is gold in the area.”
The couple head out with their detectors whenever they get the chance.
In a week recently they found eight little pieces that Mr Clark reckoned were worth about $300.
“I would like to have found more,” he said. “But gold has got to want to be found.”
The key was to be patient, methodical and determined.
“Gold is where you find it,” he said. “When you think it’s not there, it could be there.
“You have to be patient and try, try, try. And dig every target, never leave one behind.”
Did he have gold fever? “No, it’s a disease. There’s definitely a bug involved,” he said. “There’s one with my name on it. I just don’t know where it is.”
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GOLD & MORE GOLD IN THEM THAR HILLS – WEST AFRICA
Thursday, July 29th, 2010 // 
Back to Africa
as Gryphon makes play for Shield
KATE EMERY, The West Australian July 1, 2010, 7:49 am
Consolidation among West African gold players is back in the spotlight, with Gryphon Minerals unveiling a friendly scrip bid for Shield Mining that is intended to create a $200 million gold explorer.
Gryphon, which owns the 1.1 million ounce Banfora gold project in Burkina Faso, has already secured a 19.9 per cent foothold in its $23 million target under a pre-bid acceptance deal with several Shield backers.
Gryphon managing director Steve Parsons said deal would give Gryphon an exploration footprint in Mauritania, where Shield owns assets near First Quantum’s producing Guelb Moghrein copper-gold mine.
“We are well resourced and capable of aggressively exploring (Shield’s assets),” he said.
“This acquisition delivers a potential pipeline of new opportunities in another West African country and fits with our strategy to build an important gold company in the region.”
Corporate activity among WA’s West African-focused explorers has long been talked about but few deals have fallen over the line, with an exception in Barrick Gold’s $80 million play for Perth junior Tusker Gold earlier this year.
Gryphon’s modest move is likely to refocus attention on consolidation in the continent, where global miners Barrick, AngloGold Ashanti, Randgold and Lihir are all regarded as potential predators.
Gryphon’s 1-for-3 scrip bid will include a 1-for-11 offer for 21.3 million Shield options with a strike price of 20¢, valuing Shield at 27.2¢ a share.
Former Equigold director and Shield chief executive David Netherway, who plans to join Gryphon’s board as a non-executive director, said the agreement made “excellent sense”.
The offer has been unanimously recommended by the Shield board. It remains subject to a number of conditions, including 90 per cent minimum acceptance.
Shares in Gryphon last traded at 81.5¢ and Shield at 20¢. News of the bid was released after market close late yesterday.
Sourced & published by Henry Sapiecha