May 17, 2020

Company profile: New Gold Inc.

Operations
New Gold
Australia
Gold
Admin
2 min
Company profile: New Gold Inc.
Headquartered in Vancouver, Canada, New Gold Inc. is an intermediate gold mining company with a focus on environment and social responsibility. The comp...

Headquartered in Vancouver, Canada, New Gold Inc. is an intermediate gold mining company with a focus on environment and social responsibility. The company has a growing portfolio consisting of four producing assets — the New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico — and three development projects in Canada and Chile.

Peak Gold Mines has inspired the Canadian miner to do more with less, which includes integrating new systems to optimise overall production and performance.

Under this formula, Peak Mines has turned strategy into action by harnessing the creativity and passion of its team while introducing business processes that are lean and continuously improved. The Peak Mines in Australia has been a shining example of the success that incurs from these processes being put into place.

Maximising opportunities

Located in the Cobar Gold Field of New South Wales, Peak Mines is a medium-sized gold and copper mining operation, comprised of five commercially active underground mines and a copper-gold processing plant. The mine produces gold dore for sale at the Perth mint and copper concentrate that is sold to markets in Asia.

• Related content: New Silk Road: How China's $16 billion fund will impact the gold mining industry

Although New Gold has historically been focused on copper and gold, there is potential to maximize new opportunities at Peak Mines, according to managing director of Peak Mines, Greg Bowkett. 

“We have a couple ore bodies with lead zinc that affect the current concentrate and we have to pay penalties because of this. So one of the things we are exploring is whether we could potentially reconfigure the circuit to produce a saleable lead or zinc product to turn this from a cost to a benefit.”

Though it is early in the evaluation phase this could enable the mine to access new parts of different ore bodies, which aligns with its strategy of maximising opportunities.

 “Should this prove viable, this would add to our current operations and would give us the opportunity to maximise the whole asset instead of just the parts of it we are currently focused on,” Bowkett added.

Refining management and culture

For Peak Mines, structured communication has been instrumental in changing the company’s management style.

The mine has enlisted the help of Quest Worldwide, a global change management consultancy that works with organisations to improve their business performance.  The partnership focuses on three fundamental areas: operational excellence, strategy execution and people management.

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Jun 16, 2021

DRC selects Fortescue to develop giant hydro project

Fortescue Metals Group
Hydroelectric
Green Energy
Renewable Energy
3 min
Democratic Republic of Congo's (DRC's) government working with Fortescue Metals Group to develop Grand Inga hydroelectric power project

Democratic Republic of Congo's (DRC's) government said on Tuesday Fortescue Metals Group would develop the Grand Inga hydroelectric power project, including a 4,800-megawatt dam that has already been committed to Chinese and Spanish developers.

Fortescue to develop dams for world's largest hydroelectric project

Australia's Fortescue confirmed it was in talks with Congo to develop a series of dams that could become the world's largest hydroelectric project, but it said no formal binding agreement had been concluded.

Fortescue's involvement is the latest twist in Congo's decades-long quest to expand Inga, whose two existing dams - completed in 1972 and 1982 - have a combined installed capacity of nearly 1,800 MW.

The proposed expansion of six more dams would bring capacity to over 40,000 MW, roughly double the size of China's Three Gorges dam, currently the world's largest. Total development costs have been estimated at up to $80bn.

In 2018, a Chinese consortium that includes China Three Gorges Corporation and a Spanish consortium that includes AEE Power signed a deal with Congo's government to develop the third dam, known as Inga 3.

Ground has yet to be broken on Inga 3 because of questions over its financial viability. Alexy Kayembe De Bampende, President Felix Tshisekedi's top infrastructure advisor, said the project would now be led by Fortescue.

"Fortescue will be the sole operator for the entire Grand Inga (3 to 8). Chinese & co are welcome to join Fortescue," he told Reuters."There has been discussion between Chinese (Three Gorges) & AEE and (Fortescue) since last year to work together."

Three Gorges and AEE Power did not respond immediately to requests for comment.

DRC's Grand Inga green energy project will create hundreds of thousands of jobs

In a memorandum of understanding signed between Fortescue and Congo in September 2020, Fortescue "acknowledges the existing potential rights held on Inga 3 by third parties".

"In the event that, for any reason, such rights to develop Inga 3 become available, the government of the DRC undertakes to secure for Fortescue Future Industries an exclusive first option to develop Inga 3," it said.

A senior official at the government's Agency for the Development and Promotion of Grand Inga (ADPI), speaking on condition of anonymity, said the ADPI had not been involved in the talks with Fortescue.

Fortescue chairman Andrew Forrest met Congo President Felix Tshisekedi on Sunday to discuss the project. Forrest said Fortescue would use the energy from Inga to produce hydrogen to export around the world.

"The capital cost of this will be many many tens of billions of dollars and direct and indirect employment will be in the hundreds of thousands," he told reporters.

Fortescue has said it plans to fund the majority of its green energy projects off its balance sheet, investing about $1bn a year of its own money.

Fortescue's statement was made in response to an article in the Australian Financial Review.

Meanwhile, Fortescue has teamed up with Hatch, Anglo American and BHP, to form a Green Hydrogen Consortium focused on ways of using green hydrogen to accelerate decarbonisation within their operations globally.

 

Grand Inga

 

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