10 mining investments that caught our eye in 2016
Across the mining industry of 2016 there has been a number of key acquisitions and purchases from industry leaders all over the world. Here we look at 10 mining investments that caught our eye this year – from $1 to $1.1billion.
1: Blair Athol thermal coal mine sold for $1
In July, Terracom Limited proposed a deal to buy the Blair Athol thermal coal mine, once one of Australia’s richest thermal coal mines, for just $1. The deal includes $80 million from previous owner Rio Tinto, to ensure rehabilitation of the mine, as well as the mining lease, licenses, lands contracts and all equipment.
2: Centerra Gold and Thompson Creek Metals reach $1.1 billion agreement.
In July, Canadian mining company Centerra Gold agreed to buy U.S. company Thompson Creek Metals. The deal is worth around $1.1 billion in shares of cash. Thompson Creek has been described as ‘unstainable’ by Deutsche Bank analysts, and the deal was said to have paid off around $900 million of debt.
3: StratMin Global Resources buy Bass Metals graphite mine
In July, StratMin Global Resources announced it had entered a sales agreement with Bass Metals regarding its Graphmada Mauritius mine. The sale is worth around A$15.25 million, in a combination of cash, shares in Bass and a net smelter royalty.
4: Strongbow Exploration completes acquisition of the South Crofty Tin Project
In July, Strongbow Exploration announced it acquired the UK based South Crofty Tin Project and associated mineral rights in Cornwall. The deal was completed on July 11th and means that the Canadian company will now own the whole mine until 2071.
5: Ausdrill wins contract to work on Edikan gold mine
For the large price of A$157m, in July of this year Australian mining company was awarded a contract to provide additional mining work at the Ghana based Perseus Edikan gold mine. The work will be carried out over a 42- month period and will be carried out by Ausdrill’s owned contract mining African Mining Services and will create jobs for up to 280 people. The work on the mine started last month.
6: IronRidge Resources Limited acquires Ghana project
Global mineral exploration company IronRidge Resources Limited announced in September that it had acquired the promising hard rock lithium tenement package in Ghana, West Africa. The project is based on the southern margin of the Cape Coast Batholith.
7: Harmony Gold takes over Newcrest stake in Hidden Valley mine
In September, South – African gold mining company Harmony Gold announced that the company will now own the Hidden Valley mine in Papau New Guinea. This means that Harmony Gold now assumes all liabilities and expenses related to the mine, including rehabilitation costs and remediation obligations.
8: Colombian mines strikes gold with Pamlico
In September, Colombian Mines announced it had signed an agreement to acquire Pamlico Gold Project in Nevada. This means Colombian Mines has the option to buy 100% interest at US$7 million or an ‘Early Exercise Option’ of US$4 million if paid within 4 years.
9: Rinehart turned sweetheart as she invests in Sirius Minerals potash project
In October, it was announced that the richest woman in Australia, Georgina Rinehart, had invested around £245m into the biggest potash mine development in the UK from Sirius Minerals. Georgina Rinehart is one the most powerful women in the world, currently sitting at number 51 on the aptly named Forbes list of the 100 most powerful women in the world, with a net worth of $11.7 billion.
10: Fortescue Metals buys the Nullagine Iron Ore Joint Venture for $1
In October, it was announced that another company is being bought for just $1, this time it involved Fortescue Metals Group, who were buying BC Iron’s 75 percent interest in the Nullagine Iron Ore Joint Venture. Fortescue will inherit all assets and rehabilitation obligations of the venture, which is located in the Pilbara region of Western Australia.
The October issue of Mining Global Magazine is live!
Get in touch with our editor Dale Benton at [email protected]
Deloitte predicts industry transformation - Tracking the Trends 2019 report
Deloitte has published the eleventh edition of its annual report on the mining industry. Tracking the Trends identifies the top ten trends transforming the future of mining in 2019
The Deloitte report endeavours to provide the mining industry with insights it can leverage to support its continued quest for productivity, capital discipline, strategic development and sustainable growth.
Philip Hopwood, Deloitte’s Global Leader - Mining & Metals, commented: “It appears that the mining industry is poised for greater growth than it’s seen in a decade, but today’s market realities are very different than those of the past. We’re now dealing with geopolitical tensions in the form of trade wars and tariff concerns, as well as looming asset shortages. Rising commodity prices should fuel expansion, but could also result in a return of inflation and the costs that go with it, eventually eating into margins.
Disruption and volatility has become the new normal and the pace of change is outpacing our ability to adapt. This makes it imperative for mining companies to clarify how they plan to drive value into the future and how they intend to respond when prices inevitably drop again.”
Here are the key messages provided by the 2019 report:
- Disruption and volatilitymake it imperative for mining companies to clarify how they plan to drive value into the future and how they intend to respond when prices inevitably drop again. To thrive into the future, mining companies will need to challenge the status quo by soliciting a diversity of opinions and taking the risk to do things differently.
- Technology and artificial intelligence (AI) will play a key role, not only in helping companies envision future scenarios, but in identifying risks at an enterprise level and transforming the supply chain. Moreover, advances in finance platforms, sensor technology, autonomous vehicles, cloud- based solutions, and analytics are paving the way for the design of a digital mine.
- Understanding the needs and perceptions of people both inside and outside the organization will be critical. Companies must build a more diverse workplace and address succession planning, while fostering loyalty and retention among existing employees. At the same time companies must do more outreach to local communities, governments, and consumers so they can be more transparent and receptive.
Top Ten Trends Transforming the Future of Mining:
- Rethinking mining strategy - Embedding the discipline to deliver measurable value across the cycle
- The frontier of analytics and artifcial intelligence- Moving up the maturity curve
- Managing risk in the digital era - Exploring a new approach to controls and risk management
- Digitizing the supply chain - Why innovation requires integration
- Driving sustainable shared social outcomes - Finding value beyond compliance
- Exploring the water-energy nexus - Making the case for a systematic approach
- Decoding capital projects - Learning from past mistakes
- Reimagining work, workers, and the workplace - A blueprint for the future
- Operationalising diversity and inclusion programs - From theory to practice
- Demanding provenance- EVs and battery minerals provoke the desire for provenance