Week in Review: The Biggest and Best Stories of the Week
General Electric Aims to Rival Caterpillar in Sustainable Mining Train Race
Global company General Electric (GE) (NYSE:GE) is leading the rat race in providing railroad locomotives that comply with the tougher US emission standards to the mining industry. The company’s early success is giving equipment manufacturer Caterpillar (NYSE:CAT) a run for its money.
REPORT: Australia Gains Control of Gold Mining Industry
Australian owned mining companies account for approximately 50 percent of gold mining operations in Australia, according to a recent report by mining consultancy Surbiton Associates.
The shift in control is contributed to foreign investors selling off their stake in Australian mines, giving local companies more control of the country’s $12-billion gold mining industry.
[VIDEO] Volvo Showcases Futuristic Excavator Concept
The mining industry is adapting to new concepts and Volvo is showcasing what the future of excavators may soon look like.
The automaker teamed up with Swedish industrial design house ‘Prospective Design’ to develop the excavator of the future. The two teams talked with equipment operators to learn what features and functions they would like to see on a machine --whether they were possible or not. What they came up with is one part space age and another part primordial.
Randgold Resources Remains Loyal to Sustainable Community Efforts in Mali
Randgold Resources (LSE:RRS) is continuing to provide life-changing benefits to local communities in which it operates.
At the company’s Loulo-Gounkoto gold mining complex, the largest of its kind in Mali and one of the largest in Africa, Randgold Resources is continuing its commitment of sharing the value it creates with its stakeholders, including the people of its host countries.
Newmont Mining to Invest $1-Billion in Merian Gold Mine in Suriname
US-based Newmont Mining (NYSE: NEM) says it will invest up to $1 billion to develop a new gold mine in the South American nation of Suriname.
Under the banner of Surgold, the Merian mine will produce an average of 300,000 to 400,000 ounces of gold annually. Higher grade ore and throughput in the early phases would propel annual production to an average of 400,000 to 500,000 ounces of gold per year in the first five years.
Top 10 Mining Mergers and Acquisitions of All-Time
#10-AuRico Gold Purchases Northgate Minerals
On August 29, 2011 AuRico Gold Inc. purchased Canada-based Northgate Minerals for $1.49 billion. The deal combined the two companies into one leading intermediate gold producer with five operating gold mines, and three gold development projects in Mexico, Canada and Australia.
The company is now 62 percent owned by AuRico shareholders with the other 38 percent inhabited by Northgate’s shareholders.
BHP Billiton Plans to Build Pilot Processing Plant at its Olympic Dam
Mining company BHP Billiton is planning to build a pilot processing plant at its Olympic Dam mine in South Australia’s Far North.
The company, which has already applied to the Federal and State Governments for approval on the expansion, is set to run a three-year trial for a potentially cheaper way of processing copper and uranium.
Global iron ore production to recover by 5.1% in 2021
Global iron ore production fell by 3% to 2.2bnt in 2020. Global production is expected to grow at a compound annual growth rate (CAGR) of 3.7% to 2,663.4Mt between 2021 to 2025. The key contributors to this grow will be Brazil (6.2%), South Africa (4.1%), Australia (3.2%) and India (2.9%). Key upcoming projects expected to commence operations include South Flank in Australia (2021), Zulti in South Africa (H2 2021), Serrote Da Laje in Brazil (H2 2021) and Gudai-Darri (2022), according to GlobalData, a leading data and analytics company.
Vinneth Bajaj, Associate Project Manager at GlobalData, comments: “Declines from Brazil and India were major contributors to the reduced output in 2020. Combined production from these two countries fell from a collective 638.2Mt in 2019 to an estimated 591.1Mt in 2020. The reduced output from the iron ore giant, Vale, was the key factor behind Brazil’s reduced output, while delays in the auctioning of mines in Odisha affected India’s output in 2020.
“Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government, while a speedy recovery in China led to a significant 10.4% increase in the country’s iron ore output.”
Looking ahead, the global iron ore production is expected to increase by 111.3Mt to 2,302.5Mt in 2021. Rio Tinto is expected to produce up to 340Mt of iron ore, while BHP has released production guidance of 245–255Mt, supported by the start of the Samarco project in December, which is expected to produce between 1–2Mt.The company has retained its guidance for Australian mines at 276–286Mt on a 100% basis, due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine.
Bajaj added: “The remaining companies are expected to produce more than 600Mt of iron ore, including FMG, whose production is expected to range between 175–180Mt supported by its Eliwana mine that commenced operations in late December 2020, and Anglo American, which is expecting to produce between 64–67Mt. Vale is expected to resume 40Mt of its production capacity, taking its overall production capacity to 350Mt in 2021, with production guidance of 315-335Mt.”