Six gold producers in Australia in 2016
As of this week, Gold production in Australia has “surged” to 292 tonnes, (that’s 9.3million ounces – just to make it sound even bigger), which turns out is a 15-year high.
A production survey was conducted, through Surbiton Associates, an industry consultant, found that the 292 tonnes output in June year was 2 per cent more than that previous financial year.
We took this opportunity to look at six gold producers in Australia in 2016.
First things first, here they are in a lovely graph of ASX listed resources producers by Enterprise Value per Gold Resource Ounce 2015-2016, provided by Australian Gold.
Listed in 1988, Kingsgate Consolidated Ltd’s largest gold producing operation is the Chatree Gold mine in Thailand. The gold mine is owned and operated through Kingsgate’s subsidiary Akara Resources. Since 2002, Chatree has produced over 1.8 million ounces of gold and operates at an approximate output of 125,000 to 135,000 ounces per year. Kingsgate expanded into the South American market with the Nueva Esperanza Project, designed to produce 2 million tonnes per annum, located in Atacama Region of northern Chile.
Australia’s largest tin producer, though we aren’t here to talk about that. Metals X has a number of gold projects in Australia, the Higginsville Gold Operations and South Kalgoorie in Western Australia, the Central Murchison Gold Project and the Rover Project. The Higginsville Operation consists of a 300-person village, two underground mines and a 1.3Mtoa CIP plant. South Kalgoorlie is predominantly a toll processing plant. Central Murchison has an estimate of 126.6Mt of resources, 8.4Moz of which is gold. And the Rover project, producer of 5.0Moz of gold to date.
A publicly listed Perth based gold production and exploration company with operations in Australia and Africa. The company has operations at the Duketon Gold project in Western Australia and the McPhillamys Gold Project in New South Wales. Duketon, commissioned in 2010, has produced over 500,000 ounces of gold to date and the McPhillamys project has a quoted gold resource of 2.2million ounces.
Doray Minerals was listed on the ASX in February 2010 and in three years it became Australia’s newest high-grade gold producer in August 2013 with its Andy Well Gold Project, in the Murchison region. The company’s second major asset, the Deflector Gold Project, was acquired as part of the takeover of Mutiny Gold Ltd in February 2015. The combined project of Andy Well and Deflector deliver a significant increase in production to around 130,000 ounces. Deflector, located near the city of Geraldton, commenced production in May 2016.
Northern Star Resources
With operations in low sovereign risk regions of Western Australia and the Northern Territory, the company went from being a 100,000oz per year single mine producer in 2010 to a five gold mine operator with total annual production of 500-600,000oz. Those five gold mine operatrions are; Jundee (Northern Goldfields), Kundana (Eastern Goldfields), Kanowna Belle (Eastern Goldfields again), Plutonic (Peak Hill Mineral Field) and Paulsens (on the border of Ashburton and West Pilbara Mineral Fields).
The company was created in late 2011 through a merger of Catalpa Resources Ltd and Conquest Mining and the concurrent acquisition of Newcrest Mining’s interests in the Cracow and Mt Rawdon mines. Group gold production for FY16 totalled 803,476 ounces, an annual record for the company. Evolution owns and operates seven gold operations, four in Queensland, one in New South Wales and two in Western Australia. As of December 2015, Evolution Mining’s global Ore Reserves were 5.85 million ounces of gold and Mineral Resources were 14.02 million ounces of gold. In 2016, Evolution has been reaping the rewards for its efforts, crowned winner of the 2016 Dealer Award at Diggers and Dealers in August, Best Asia-Pacific Mining Deal at Mines and Money Hong Kong in April and winner of 8th Annual International M&A awards – also in April.
Gerald Group resolves iron ore dispute with Sierra Leone
Gerald Group, the US commodity trader, will pay Sierra Leone $20mn and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production, the two sides revealed.
Gerald's wholly-owned subsidiary SL Mining filed for arbitration in August 2019 over a royalty payment dispute and suspended the Marampa mine the following month. Sierra Leone's government responded by cancelling its mining licence.
As part of the agreement signed on Friday, Sierra Leone will take a non-dilutable 10% stake in a new company that will replace SL Mining and resume operations at Marampa by June 1, Gerald said in a statement.
Gerald will make two $10mn payments this year and will have the immediate right to ship its current stockpile of about 707,000 tonnes of iron ore, it said.
Both sides will withdraw their legal claims before the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID), the statement added.
Gerald’s chairman and CEO Craig Dean commented: "I am delighted that we have been able to resolve our differences and have a fresh start and new beginning with the government of Sierra Leone."
Sierra Leone's Mines Minister Timothy Kabba told a news conference on Tuesday that the agreement was a milestone for the country.
"Whatever the pain we may have borne or dreaded throughout these two years ... this outcome justifies our action," he said.
Gerald estimates that Marampa holds about 1 billion tonnes of iron ore with a potential lifespan of 30 years.
Back in 2019, Dean spoke with Mining about the development of Marampa and commented: "SL Mining offers a substantial opportunity for Gerald Group as our Marampa mine in Sierra Leone is producing two million tonnes per annum of high grade iron ore in the first phase of development, with expansion possibilities of greater than six million tonnes per annum of high-grade iron ore during its operational life. If you analyse the iron ore market it has transformed, even from a couple of years ago when prices were very low. Now prices have stabilised we’re in a favourable position with our first shipments leaving for China.
"Our goal is to make ‘Marampa Blue’ an internationally recognised premium grade iron ore brand. We intend to expand the delivery of high-grade 65% iron ore concentrate to markets in Europe and Africa.”