AUSTRALIAN MINING: More bad news than good
Not
only Canadian mining companies but others around the world are pulling
up their socks, postponing projects and conserving cash. The Australian
industry is no exception.
First the good news:
BHP Billiton
has approved its share of the rapid growth project 5 at its 85%-owned
iron ore operation in Western Australia. Production will rise by 50
million tonnes to 205 million t/y. The expansion is to be complete in
the second half of 2011. Total cost is expected to be US$5.65 billion. (www.BHPBilliton.com)
Next, two bits of bad news.
OZ Minerals,
reputed to be the world’s second-largest zinc miner, is cutting its
spending by $440 million in 2009. Savings will come at the expense of
the Martabe gold and silver project (A$225 million), expansion of
copper capacity in Laos (A$50 million), the Rosebery mine (A$125
million) and the Golden Grove mine (A$20 million). The company is also
delaying studies at two Canadian project, and has postponed its Dugald
River project beyond 2009. (www.OZMinerals.com)
Norilsk Nickel Australia
has been forced by economic conditions to put its Waterloo and Silver
Swan underground mines in Western Australia into care-and-maintenance.
The two mines produced approximately 10,000 tonnes of nickel in the
last 12 months. Norilsk’s Black Swan open pit and its Lake Johnston
operation are not affected.
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