FROM THE PUBLISHERS OF AUSTRALIAN MINING
MININGDAILY
| EDITOR: OZMINING@REEDBUSINESS.COM.AU | ADVERTISING: HAYDEN.REED@REEDBUSINESS.COM.AU
Xstrata plans massive coal complex
Xstrata Coal has ambitions of oper-
ating a 100 million tonne per annum
coal complex near the Queensland
town of Wandoan by the 2020's.
The company's communica-
tions manager James Rickards told
MINING DAILY that the complex will
actually comprise a combination of
four separate mines.
"The first of these mines is going
through the approvals process at
the moment," he said.
"We are well advanced in the
environmental studies and are
expecting to complete our feasibil-
ity studies by the end of 2010."
The first mine would produce
around 30 million tonnes per annum
from a coal reserve of around one
billion tonnes and a resource of
around 3.4 billion tonnes.
In all, the Wandoan tenements
have a total exploration target of
between 4.1 and 7.7 billion tonnes.
According to Rickards, reports
that the project could cost up to
$15 billion were reasonable, given
that the first mine will cost $3 billion
to construct alone.
"All-up, the total investment for
the current project will be around
$6 billion, including upstream infra-
ERA are in the box seat, CEO says
Uranium producer Energy
Resources Australia (ERA) is better
positioned than emerging compa-
nies as the uranium market contin-
ues to grow in global importance,
the company's chief executive told
MINING DAILY.
"I think a well established mine
like ERA is in a box seat, compared
to mines being developed," Rob
Atkinson said.
"Given the demand that is across
the world for nuclear power there is
going to be a time when the (urani-
um) demand is going to far outstrip
the production in the ground.
"I am looking forward to that."
Atkinson's comments came after
ERA last week announced a record
Xstrata is aiming to reach 100 million tonnes per annum
structure and construction," he said.
"Once the current project is in
place, the infrastructure costs would
be lower if we build the other
projects."
The company is investigating its
infrastructure options, such as the
long-term feasibility of developing
the coal terminals at Wiggins Island
and Balaclava Island.
"The total Wandoan project is
highly dependant on the comple-
tion of feasibility studies for infra-
structure," Rickards said.
ERA saw a production of 5420 tonnes
of ore
profit in 2009 on the back of higher
contract prices.
The Darwin-based company's net
profit of $272.6 million was a 23%
increase on its 2008 figures.
But despite what it calls a bright
outlook for the global uranium
01 FEBRUARY 2010 | 1
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"There are proposals like the
Surat Basin rail project as well as
Queensland Rail upgrades that will
have a big impact.
"So there is still a lot of infrastruc-
ture that has to go in before these
Wandoan projects can be guaran-
teed."
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According to Rickards, the com-
pany hopes to have to the complete
complex fully-operational within
the next ten to 20 years.
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MICHAEL MILLS
market, ERA said mine expansion
and higher maintenance costs are
expected to have an adverse impact
on earning in the coming year.
"It is going to be a significant
(financial) impact," Atkinson said.
"We have the maintenance that
most mines do, such as haul truck
engines, power stations to retro-fit,
as well as other maintenance across
the board."
The company's planned expan-
sion involves its ongoing commit-
ment to developing the Ranger 3
Deeps uranium deposit and a pro-
posed heap leach facility at its exist-
ing Ranger mine.
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PAUL HAYES
MININGDAILY
Kagara spin off gold assets
The new gold company will be known as Mungana Goldmines
Kagara Ltd has announced that it
will spin off its gold assets onto
the Australian Stock Exchange
in April.
The nickel and zinc miner will
close its initial public offer for
its gold assets in three months,
following a return to profitabil-
ity in the second quarter of the
financial year.
It is spinning off the gold assets
at Mungana and Red Dome in
the wake of higher metal prices.
The new company will be
known as Mungana Goldmines.
Coffey Mining is currently car-
rying out studies at the site, with
it's report expected to form a
large part of the prospectus.
To date the company has
identified a total resource of
32 million tonnes of ore at .81
grammes per tonne for Mungana
and 40 million tonnes of ore at
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.79 grammes per tonne for the
Red Dome project.
Kagara had originally put the
IPO forward for July.
The zinc and nickel miner
is expecting further margin
improvements in the current
quarter on the back of the
stronger December quarter due
to a “higher metal price envi-
ronment,” Kagara chairman Kim
Robinson said.
Kagara saw first production
from its Lounge Lizard nickel
mine, and has forecast full scale
production at the asset for the
2010/11 financial year.
The company saw a jump in
copper production at its Mount
Garnet copper plant at 3806
tonnes, up 59% from the previ-
ous quarter.
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COLE LATIMER
Pipeline in the works
Phosphate Australia is con-
sidering the construction of
$226 million steel pipeline to
aid the development of its
Highland Plains project.
The pipeline is being con-
sidered as one of a number
of potential options for its
Highland Plains phosphate
project located on the border
between Queensland and the
Northern Territory.
Phosphate Australia
announced it is looking at
three possible routes for the
pipeline to store and trans-
port the phosphate slurry,
either via the Tully Inlet or
Burketown in Queensland, or
via the Calvert River in the
Northern Territory.
Phosphate Australia man-
aging director Andrew James
said that the option for the
slurry pipeline came about as
a result of groundwater pump
testing at the phosphate
project last year.
Current forecasts put the
capital costs of the pipeline
between $184 million to $226
million.
The Highland Plains project
has an inferred resource of 56
million tonnes of ore at 16%
phosphate.
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COLE LATIMER
Work so good
you’ll want to
take it home.
MAINTENANCE PROJECT MANAGER
Macraes Goldmine, North Otago, South Island,
New Zealand
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01 FEBRUARY 2010 | 2
BRIEFS
GRIFFFIN BOUNCEBACK
Embattled miner Griffin Coal may
be saved from administration, the
West Australian reports. Following
a jump in production levels and
repair of key equipment, Cape
Lambert has shown interest in
acquiring the assets of the coal
miner. However Griffin's adminis-
trators, KordaMentha, stated that
it will be some time before a final
decision can be made regarding
the coal miner's future.
AJ LUCAS SEES POOR RESULT
AJ Lucas has forecast a loss of $18
million for the first half of the finan-
cial year. The company annouced
a disappointing first half, saying
that while drilling revenues were
strong, market uncertainty effected
the group's overall performance.
However, it forecast a turnaround
for the second half of the year,
expecting earnings of over $30 mil-
lion for the remainder of the finan-
cial year.
BOARD CHANGES
BHP Billiton announced last Friday
that board members Paul Anderson
and Gail de Planque would retire from
their positions effective Sunday 31
January. Anderson has accepted an
invitation to become a director of
BP plc and de Planque will retire in
order to continue her treatment for
Lyme disease. “On behalf of the board
I wish both Paul and Gail all the best
and, whilst we are saddened to see
them leave, they do so with the good
will and gratitude of the board,” BHP
chairman Don Argus said. Malcolm
Broomhead and Carolyn Hewson
have been named as their replace-
ments and will be appointed as non-
executive directors from 31 March.
MININGDAILY 01 FEBRUARY 2010 | 3
COMMODITY PRICES AS OF 12:07 PM 01/02/2010 AEST

Commodity Price (USD$) Change % Change Last Update

GOLD (COMEX) 1,083.20 -1.60 -0.15 30/01 5:31 AM
February 2010 ($US per Troy oz.)
SILVER (COMEX) 16.27 0.06 +0.36% 30/01 5:33 AM
March 2010 ($US per Troy oz.)
PALLADIUM 415.00 1.65 +0.40% 30/01 4:58 AM
March 2010 ($US per Troy oz.)
PLATINUM (NYMEX) 1,518.60 12.60 +0.84% 01/02 12:07 pM
April 2010 2009 ($US per Troy oz.)
COPPER (COMEX) 3.05 -0.05 -1.57% 30/01 4:48 AM
March 2010 ($US per lb.)

CURRENCY AS OF CLOSE 01/10/2010

Currency Last Change ▲▼ % Change

$AUD/$USD 0.8848 0.0013 ▲ +0.1471%
$AUD/EURO 0.6376 0.0002 ▲ +0.0317%
$AUD/£GBP 0.5541 0.0014 ▲ +0.2600%
$AUD/¥JPY 79.7647 0.0200 ▲ +0.0251%
$AUD/$NZD 1.2575 -0.0032 ▼ -0.2514%
EURO/$USD 1.3877 0.0016 ▲ +0.1154%
$USD/¥JPY 90.1500 -0.1100 ▼ -0.1219%

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