Category: Industry Link Media

The highly regarded Diggers and Dealers Mining Forum in Kalgoorlie Boulder has today announced a change of dates for 2020.

Forum Chairman Jim Walker announced the details today via email.

We have been paying close attention to the developments in Australia and Internationally in relation to the outbreak of COVID-19. With our focus being on the safety and health of delegates, and the increasing uncertainty around large events, we believe that moving the Diggers & Dealers Mining Forum to 12,13, and 14 October 2020 is the responsible action to take.

By moving the event out of the winter period, we believe we are allowing more time for authorities to assess information and guide our decision making.

We also want to provide reassurance that we are committed to supporting the Goldfields community, resources industry and our suppliers. We have consulted with industry colleagues for their input on this decision. Their full support has been provided given the measures the broader mining community has implemented and are planning to implement if necessary. Due to the lead times and logistics associated with holding the event in Kalgoorlie we do need to have a date to work towards. We believe this is the responsible action to take in these unprecedented circumstances.

 Mr Walker also went on to thank sponsors, presenters, exhibitors, media and delegates for their understanding at this time.

Diggers and Dealers was originally set for August 3,4 and 5 2020 in Kalgoorlie Boulder. Professor Ian Goldin was also announced last month as the Forum’s key note speaker. 

Earlier this week Qantas announced flight changes and capacity reductions related to Coronavirus. Today, Virgin Australia Group has announced a cut in international and domestic services, but remains positive on the effect of its business.

Flights on the International Virgin Australia Network to Los Angeles, Japan and Trans Tasman flights will be reduced while Virgin Australia will exit Auckland and Tonga and Tatotonga services. Domestically, capacity will reduced by 5%, Mainly with markets that have multiple daily flights.

Virgin Australia have also suspended earning guidance for FY20 as well as several cost cutting exercises from marketing, discretionary spends, board payments and more.

An update on the cleaning processes on the Virgin Australia Web site highlights daily cleaning, sanitation, overall practices in place. 

In a positive for  the Virgin Australia Group, bookings to Western Australia and holiday destinations Gold Coast, Sunshine Coast and Hamilton Island continue to be ahead of where they were this time last year. 

 

Alkane Resources are an Australian gold producer and rare earths developer and have moved to develop their project around Dubbo. This comes after Australia’s export credit agency Export Finance Australia (EFA) confirmed they seek to develop new export markets with a focus on “Critical Minerals” sector. The EFA sent confirmation to Alkane with the following points

• EFA would be pleased to be part of the financing consortium in providing the required financial support for the development of the Dubbo Project, subject to finalisation of normal due diligence, acceptable financing structure and the resultant transaction meeting the EFA’s eligibility and credit requirements;
• The Dubbo Project closely aligns to the recently announced initiative by the Australian Government to develop its “Critical Minerals” sector; and
• • EFA has provided a letter of support to strengthen ASM’s ongoing discussions with potential strategic investors, other Government financiers and off take parties for the Dubbo Project.

This bodes well for the Alkane Toongi mine – 25 kilometres south of Dubbo.  The Dubbo Project is an advanced ploy metallic project with resources in zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.

Alkane’s Managing Director, Nic Earner, said “After extensive engagement with the Australian Government, particularly recently as part of its Critical Minerals initiative, it is pleasing to see that stated support is translating into preparedness for government agencies to act, in this case with EFA providing confirmation of its interest in being part of the financing consortium for the Dubbo Project.”

In recent drilling at San Antonio and Roswell at the Alkane Tomingley Gold Operation has found some notable results ahead of its maiden resource calculation. Highlights include:

Roswell: 49 metres grading 8.71g/t Au from 218 metres; incl 2 metres grading 60.5g/t Au from 243 metres;

San Antonio: 15 metres grading 4.33g/t Au from 141 metres; incl 3 metres grading 12.4g/t Au from 144 metres;

With assistance Alkane Resources

As gold hits record highs in AUD, a gold mine closure has hit the Northern Territory. Kirkland Lake Gold announced the news to workers at the Cosmo mine and Union Reefs processing plant near Pine Creek. A closure which affects around 250 workers.

According to reports from the ABC Rural, it appears that Kirkland Lake were impacted by government decisions and mining approvals processes.

Production ceased at Cosmo when it was placed into care and maintenance in June 30 2017. Its believed Kirkland had been working to get the mine restarted with advanced and extensive exploration assessing the potential of a resumption of operations.

Cosmo Operations – via Kirkland Lake Gold Website

In a letter that was circulated to employees, Kirkland stated the NT mine would be designated non core. Kirkland also own the Fosterville mine in Bendigo, Victoria which had production figures in 2019 of 619,367oz. Gold today, was trading at $2560.88. 

Qantas has announced a decrease in International services as a result of the Coronavirus.

This follows on from the spread of Coronavirus through Europe, North America and Asia. The cuts are expected to continue until September.

Most A380 Flights are being replaced with the B787 which have approximately 250 less seats. The Sydney – London via Singapore flights have been redirected via Perth. While B747 flights from Sydney – Tokyo have been changed to an A330 service. Subsidiary Jetstar is also suspending routes and reducing capacity.

Qantas Group CEO Alan Joyce has announced also that there will be cuts to bonuses for management and the Group Executive team will take a pay cut for the rest of the year. Mr Joyce in particular will take no salary for the remainder of the FY20 However Mr Joyce also points out that Qantas can cut further or put capacity back should the need arise. “We expect lower demand to continue for the next several months, so taking a piecemeal approach we’re cutting capacity out to mid September. This improves or ability to reduce costs as well as giving more certainty to the market, customers and our people” “The Qantas Group is a strong business in a challenging environment. We have a robust balance sheet, low debt levels and most of our profit comes from the domestic market. We’re in a good position to ride this out, but we need to take steps to maintain this strength” He said.

SUMMARY OF QANTAS GROUP NETWORK CHANGES

Route	Change	Effective dates (until mid-Sept 2020)
Asia
Sydney-Tokyo (Haneda)	B747 replaced by smaller A330	30 March
Melbourne-Singapore	– 7 return flights per week cancelled (QF 37/38) – B787 replaced by larger A330 on 7 return flights per week (QF 35/36)	– 20 April – 4 May
North America
Brisbane-Chicago	Route launch postponed	Was to start 15 April
Brisbane-San Francisco	Route suspended (3 return flights per week)	18 April
Sydney-San Francisco	B787 replaced by larger B747	18 April
Melbourne-San Francisco	Route suspended (4 return flights per week)	18 April
Sydney-Dallas/Fort Worth	A380 replaced by smaller B787	20 April
Melbourne-Los Angeles	A380 replaced by smaller B787	1 June
Sydney-Vancouver	Seasonal service suspended (3 return flights per week)	June and July only
United Kingdom
Sydney-London (Heathrow)	– Flights to operate via Perth (instead of Singapore) then non-stop to London. – Perth-London to become double daily as a result. – A380 replaced by smaller B787	20 April
South America
Sydney-Santiago	Delaying planned B787 introduction and continuing with B747	1 August

Note: The suspension of the A380 and First Class from Singapore routes will see the Qantas First Lounge in Singapore close temporarily, with customers instead invited to use the adjacent Qantas Business Lounge.

Note: Qantas B787 has approx. 250 less seats than an A380.  

 

Qantas – Extension of previously announced cancellations

(Until mid-Sept 2020 unless stated)

Route	Change
Sydney-Shanghai	Route continues to be suspended until at least mid-July (7 flights per week) (sole route to mainland China)
Sydney-Hong Kong	Reduced from 14 to 7 return flights per week
Melbourne-Hong Kong	Reduced from 7 to 4 return flights per week (1 additional cancellation per week from previously announced cuts)
Brisbane-Hong Kong	Reduced from 7 to 3 return flights per week (1 additional cancellation per week from previously announced cuts)

 Note: Further capacity reductions will also be made on flights to Japan and New Zealand, with other Asian routes under evaluation.

 

Jetstar Airways – Summary of New Changes

Routes	Change	Effective date (until end June but may be extended)
Asia
Melbourne-Bangkok	Route suspended	1 May
Sydney/Melbourne-Ho Chi Minh	Flights reduced by over 50 per cent	1 May
Japan routes	Flights reduced by almost 40 per cent	20 May
Brisbane-Bali	Minor flight reductions	1 May

Note: Further capacity reductions will also be made on flights to New Zealand, with other Asian routes are under evaluation.

A worker has died at a workshop site in Kalgoorlie Boulder over the weekend. The Monadelphous worker was in a yard Saturday March 7 when it’s appeared the worker sustained injury and later passed away.

“We are deeply saddened by the loss of our colleague in the close-knit community of Kalgoorlie. We extend our sincere condolences to our employee’s family, friends and colleagues during this very difficult time,” Monadelphous Managing Director, Rob Velletri, said. The wellbeing of our people is our primary focus, and support is being provided to our employee’s family, as well as to our team in the Goldfields. At Monadelphous, the safety and wellbeing of our people is a core value. We will be conducting a thorough investigation into the accident and working with the relevant authorities.

The family of the man released a statement on Sunday saying they were “proud as punch” of the 26 year old who had relocated back to Kalgoorlie Boulder about 12 months ago. They described him as a very social family man and also gave thanks for the support received.

“We would like to thank our, and his, family, close friends, the Goldfields community and Monadelphous for their support during this terrible time,”

Friends and colleagues also took to social media to share their thoughts, love and support.

The management and staff at Worthy Parts and Industry Link Media offer their sympathy to the family and friends.

The December quarter gold production figures have been released from Surbiton Associates. These figures show an all time high production and some spread across the nation for gold. Australia’s gold production for 2019 was an all time record of 325 tonnes, with the December quarter producing 87 tonnes alone. 2018 was the previous record with 317 tonnes for a calendar year.

Newcrest’s Cadia Operation in New South Wales topped the list for not only being Australia’s largest gold producer in the December quarter, but also the largest gold producer for the 2019 calendar year. Cadia East produced 239,772 ounces in the December quarter 43,700 ounces more than Newmont Corp’s Boddington operation in Western Australia.

“In addition to 2019 having the highest ever gold production in Australia, the December 2019 quarter was really outstanding,” said Dr Sandra Close, a director of Surbiton Associates. “The record output was due to new projects coming on stream and ramping up production, other operations recovering from poor performances in the September quarter and some increases in throughput and grade.”

A former darling of the annual and quarterly figures, The Kalgoorlie Boulder Super Pit was not part of the figures released today, however Dr Close concluded

“Sales of Kalgoorlie’s Super Pit interests were announced in late 2019, with joint venturers Barrick Gold and Newmont selling to Saracen Mineral Holdings and Northern Star Resources, respectively. This has finally resolved the ongoing ownership uncertainties at one of Australia’s largest gold mines,” Dr Close said. “The ownership changes bode well for the future, and both Saracen and Northern Star have undertaken substantial further gold price hedging in support of their new acquisitions.”

Cadia East lifted its production by 68,000 ounces and Goldfields St Ives, had an increase in production of 32,600 ounces. While operations for Auralia Metals Peak mine near Cobar and Evolution Mining’s Cowal and Mt Carlton mines produced less this quarter. While Victorian operators are still grappling with a recent gold production royalty.

December Quarter Figures:

Operation	Ounces	Owner	State
Cadia East	239,722	Newcrest Mining Ltd	NSW
Boddington	196,000	Newmont Corp	WA
Fosterville	191,864	Kirkland Lake Gold Ltd	VIC
Tanami	139,000	Newmont Corp	NT
Tropicana – JV	133,932	AngloGold Ashanti 70%Independence Group LTD 30%	WA

 

 

Operation	Ounces	Owner	State
Cadia East	871,246	Newcrest Mining Ltd	NSW
Boddington	703,000	Newmont Corp	WA
Fosterville	619,367	Kirkland Lake Gold Ltd	VIC
Tropicana – JV	513,433	AngloGold Ashanti 70%Independence Group LTD 30%	WA
Tanami	500,000	Newmont Corp	NT

Produced with assistance of Surbiton Associates

Mining services provider Pit N Portal has now officially merged with Emeco. A deal that was previously announced but confirmed today.

According to Emeco Managing Director and CEO Mr Ian Testrow “Pit N Portal has a highly complementary business model which provides a comprehensive hard rock underground equipment services offering and more than doubles our gold exposure. Diversifying our range of value added services is also exciting, as we become more embedded with our customers and secure longer tenured contracts”.

In a LinkedIn post Managing Director Steve Versteegen said

“We are very pleased to advise that we completed the merger with Emeco today and we are now officially part of the Emeco family. As a company, we are excited about the opportunities that this merger will bring and confident that the combined company will accelerate the growth of the Pit N Portal business”

Fellow Pit N Portal Director Ian Barnard will be leaving after 17 ½ years.

Emeco today also issued 4,830,918 fully paid ordinary shares to the vendors as part of the deal.