Coalition Takes Legal Action Against Oregon Dredging Permit

Yesterday, a coalition of local residents, grassroots environmental and clean-energy activists asked the Oregon Court of Appeals to put the brakes on a Oregon Department of State Lands’ dredging permit that paves the way for the Port of Coos Bay to export dangerous liquefied natural gas (LNG) or coal and other bulk commodities to Asia.

“It is important that the State of Oregon gets this right,” said Joe Serres of Friends of Living Oregon Waters (FLOW), a non-profit organization working for clean water. “Exporting liquefied natural gas or other fossil fuels is a dangerous and dirty business that will destroy resources in our treasured estuary, threaten communities and wildlife for the benefit of foreign corporations.”

“This LNG project is a destructive and unnecessary,’’ said David Petrie of Coos Waterkeeper, a local environmental advocacy group that works to protect the bay. “We can and should do better for our community and the environment. Our future lies in preserving the health of the estuary and marine life, such as oyster farms and salmon fisheries.”

In January 2012, coalition members asked for reconsideration of the state’s initial decision to issue the dredging permit. The permit authorizes the single largest dredging project in an estuary that the state has ever approved. Additional infrastructure for pipelines and possibly for rail will be needed as well. The coalition raised the Port’s failure to conduct an environmental assessment of the whole project—the dredging of the channel for a large, new marine terminal and LNG pipeline—as a reason re-examine the permit. The entire project will increase marine traffic of immense ocean-going vessels, loaded with LNG or other commodities that could interfere with recreational boating and fishing in the region.

Coalition members pointed to harmful impacts of the construction and operation of the entire project on Coos Bay waterways, a view supported by comments from Oregon Fish and Wildlife. Coos Bay waters and shoreline are critical habitat for multiple species.

“The state purposely turned away from its obligation to fully examine and consider the impacts to water, fish and wildlife resources from this large project,” said Janette Brimmer, an Earthjustice attorney representing the coalition in the appeal. “Unfortunately, the state has actively allowed the Port to manipulate the permitting process and artificially segment a project in order to hide the ball on what is actually going to happen with the terminal.”

While a “multi-purpose” dredging permit was initially sought to develop an LNG import terminal, LNG backers have changed their plans to export domestic gas instead. The Port has also sought engagement with other commodities and fuel exporters, including coal.

“There is a chorus of concern over how this export project unfolded behind closed doors,” said Brian Pasko of the Oregon Chapter of the Sierra Club.“It’s time for the Port to start leveling with the public about the impacts of the dredging and the dangers of liquefied natural gas export or other fossil fuel exports like coal.”

Oregonians are concerned about potential economic and public health consequences of allowing fossil fuel exports at the Port of Coos Bay and other areas in the region and want the state to follow the rules when making decisions about and issuing permits for these massive projects. The proposed Pacific Connector LNG pipeline would run across 234 miles of Oregon, including through important forest areas, elevating the risk for gas spills, pipeline explosions, and other accidents. Exporting LNG could also result in significant increases in energy prices for Oregon families and businesses.

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Mining contractors flag lower earnings

A SLOWDOWN in the mining services sector has prompted drilling equipment provider Boart Longyear and contractor Transfield Services to cut earnings forecasts and confirm job losses.

US-based Boart, which has shed 1000 employees since January, blamed the downward trend in commodity prices and a reduction in exploration expenditure. 

In April, analysts’ forecasts ranged from $US1.46 million ($A1.48 million) to $1.72 million for revenue and $199 million to $271 million for earnings before interest, taxes, depreciation, and amortisation (EBITDA). 

But Boart said that, based on industry conditions, the company expected 2013 revenue and EBITDA would be at the lower end of the forecasts.

Boart’s advised its annual general meeting that net debt levels at year-end 2013 were expected to decline to $400 million to $500 million, based on reduced capital expenditures and earnings of the business. 

President and chief executive officer Richard O’Brien said the company was focusing on controlling total costs.

“In addition to the cost actions the company took in 2012, over 1000 employees have left the business since the start of the calendar year, with the head count now below 8000,” he said.

“The downturn in capital and exploration spending in the mining sector globally has clearly reduced demand for drilling services and products.

“We have a number of further initiatives underway to reduce net debt over the course of the calendar year and beyond, including reduced inventory levels and adhering to a reduced capital investment budget.”

Meanwhile, Transfield Services said it expected net profit after tax, but before amortisation and impairments for FY13 would be between $A62 million to $65 million, compared with existing guidance of between $85 million to $90 million.

The company brought forward cost savings of $26.1 million to offset market conditions and confirmed a further 113 job losses.

Transfield blamed ongoing uncertainty in the commodity markets, resulting in the delay and deferment of a range of resources and infrastructure projects and the cancellation of works across the operations and maintenance sector.

“Most of this variance in net profit after tax has been caused by the slowing external market factors. As a direct response to these circumstances, additional incremental restructuring costs of $5.9million will be incurred in FY13 in order to reduce the future cost base,” the company said in a statement.

Transfield shares fell 22.3% to 99c, while Boart’s share price fell to 74c before regaining ground to 78.5c.

Aviva agrees on fee for prospecting licence with Mawana Minerals

ASX-listed resource development company Aviva says it has entered into a purchase agreement with Mawana Minerals to purchase 100% of the prospecting license PL 069 in Botswana from Mawana for US$300 000.

Aviva and Mawana entered into a heads of agreement in 2007 over the Mmamantswe Coal project whereby Aviva could earn a 90% interest in Mmamantswe. Following negotiations between the parties, Aviva will now earn a 100% interest in Mmamantswe through the acquisition of the license.

“Aviva is pleased to have executed this purchase agreement with Mawana which on satisfaction of the conditions precedent would provide Aviva with a 100% interest in Mmamantswe. I would like to acknowledge the efforts of the directors of Mawana in concluding this agreement,” said Aviva’s CEO Lindsay Reed.

Conditions of the agreement include Mawana Minerals notifying the relevant Botswana Minister of the conditional sale of the license and the Minister approving the sale and all Mawana shareholders unanimously approving the sale of the license.

Further, Aviva noted that the fulfilment of the conditions precedent to the purchase agreement with Mawana will also satisfy one of the conditions precedent to the sale of Mmamantswe to African Energy.

Aviva said that it would continue to keep shareholders appraised of the satisfaction of the conditions precedent to this transaction and the sale of Mmamantswe to African Energy.

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Capital Watch: Antipa, ActivEx and more

IN Capital Watch today: Antipa to hold three-part raising; ActivEx offer can move ahead; successful placement for Promesa; TNG receives interest in placement; Aura looks for working capital; and Riedel brings in funds.

Antipa Minerals is looking for to raise roughly $A3 million through a three-part capital raising in order to fund exploration at the company’s Citadel project.
The first is a fully subscribed placement to sophisticated and professional investors to raise roughly $1.52 million through the issue of 23.4 million shares at 6.5c each with a 1-for-3 attaching option to be exercised at 8c.
The raising also comprises a share purchase plan for existing shareholders to raise $1.2 million through the placement of 18.46 million shares at 6.5c each with a 1-for-3 attaching option as well as a subscription to certain directors to raise an additional $275,000.
The previously announced $1.76 million entitlement offer by ActivEx will go ahead after it reached an agreement with major shareholder and bidder for the company ASF Gold & Copper.
Under the agreement, ASF will subscribe for its full entitlement and it will not interfere with the raising because there will be no shortfall facility and shares not taken up pro-rate by shareholders will not be issued by the company.
ActivEx said it still believed the 3-for-5 non-renounceable entitlement offer would help secure a stronger financial position for the company, even without the shortfall facility.
Promesa has raised $1.47 million through the issue of 42 million new ordinary shares to institutional, sophisticated and professional investors at a price of 3.5c per share.
Proceeds from the placement will be used mainly to fund exploration and development activities in Peru at the company’s Alumbre/Magdalena and Quinual prospects.
Meanwhile, TNG has received firm commitments in relation to a placement of approximately 14.3 million shares at an issue price of 7c to raise $1 million before costs.
Settlement of the placement is expected to occur on May 14, with funds directed to ongoing exploration activities at the Mount Hardy copper project.
In the hunt for additional working capital, Aura Energy has received commitments to place approximately 10 million shares at 8c each to raise around $800,000.
The placement has been made primarily to institutional and sophisticated investor clients of Shaw Stockbroking, though the directors will also offer existing eligible shareholders the chance to participate in a share purchase plan, to a maximum of $15,000, at 8c per share.
Finally, Riedel Resources has raised approximately $490,000 through a share placement and convertible note facility.
The company brought in $100,000 by placing 1.71 million ordinary shares at 6c per share with a free attaching unlisted option exercisable at 10c on or before April 30 2015.
The facility will raise $390,000 before costs and has a maturity date of June 30 2014 and an interest rate of 8% payable quarterly in cash or tradeable ordinary fully paid shares.
Proceeds from the raising will be put towards exploration expenses and working capital.
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Harmony Gold to cut costs, capex amid gold price volatility

South African gold producer Harmony Gold plans to cut its service and corporate costs in South Africa by R400-million and its overall capital expenditure (capex) in South Africa and Papua New Guinea by R1.4-billion in the 2014 financial year, Harmony Gold CEO Graham Briggs said on Friday.
“We cannot influence or predict the future price of gold. For the past year, the high gold price has assisted us in producing strong margins but, with the gold price that fluctuated and decreased to levels close to $1 400/oz, immediate actions to reduce costs were implemented during April,” he said on Thursday.
Larger cost-cutting measures, such as shaft or mine closures, were not envisaged at the moment, Briggs stated.
He told Mining Weekly Online that the cost reductions were aimed at keeping the company profitable should the gold price stay at levels of around $1 400/oz. “Should the price fall to levels of around $1 200/oz, we would have to do dramatically more to remain profitable.”

Briggs pointed out that, while major job cuts were not expected, as no shafts would be closed, some of the actions to come included reducing service and corporate costs, as well as renewing or renegotiating all external consultant and supply contracts, which would lead to some job losses.
“While we will not follow a Section 189 retrenchment process, employee numbers will be reduced through a voluntary process. However, the total number of jobs cut should not exceed 500,” he assured.
Harmony recorded an operating profit of R821-million for the March 2013 quarter, following a 15% quarter-on-quarter drop in gold output to 7 699 kg.
The decrease in production was mainly as a result of the temporary closure of the Kusasalethu mine, near Carltonville, owing to safety and security reasons; the damage to the ventilation shaft at the Phakisa gold project, in the Free State; and a slow start-up at the other operations post the festive season, the company stated in a media release.
The rand per kilogram unit cost for the March 2013 quarter increased by 17% to R362 491/kg. The costs were, however, skewed, as Kusasalethu was not in production during the quarter under review.
Capex for the quarter amounted to R677-million – R189-million less than the December 2012 quarter, the company stated.
“This quarter was a poor quarter with regard to gold production, but this was not unexpected. Kusasalethu not producing gold during this period had a massive influence on the results. During the last two quarters, 2.5 t of gold production was lost as a result of disruptions at Kusasalethu.
“This reflects on the year’s result from Kusasalethu, highlighting the cost of that type of industrial action. If you multiply 2.5 t of gold by the current gold price, it amounts to R1.2-billion in revenue,” Briggs said.
During the third quarter, Harmony still had most of the costs relating to Kusasalethu to deal with, without any revenue coming from the project; which accounted for a big swing in the company’s results, he added.
“The results for the March quarter have reaffirmed that we need to do more to meet expectations,” Briggs stated.
“We are focusing on getting assets such as Kusasalethu and Phakisa into full production. The damage to the ventilation shaft at Phakisa was a blow that affected us in that we have not been able to ramp up. Kusasalethu was another blow.
“We, the whole of Harmony – management and employees – have to work harder to produce the gold we said we were going to produce. We have had the advantage of a favourable gold price and we must not squander that opportunity,” he asserted.
Meanwhile, highlights for the quarter included a quarterly lost-time injury frequency rate of 5.15 – the lowest in company history; the signing of a watershed agreement with Kusasalethu labour; and achieving the best drill production of 14 664 m at its Wafi-Golpu project, in Papua New Guinea, where the gold recovery testwork programme determined a material improvement in both gold and copper recoveries.
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Engineering study improves metrics of combined Namibia projects

Uranium-project developer Forsys Metals has completed an engineering cost study on its proposed Valencia process plant to be located at the company’s Norasa uranium project, in Namibia, which had improved a number of the project’s metrics.

The study, which reviewed the Snowden Group 2008 definitive feasibility study and 2010 engineering cost study that outlined some potentially attractive comminution flowsheet changes and optimisations, highlighted improved metrics resulting from the combined Valencia and Namibplaas uranium deposits.

The study had increased the differential net present value on Norasa by $348-million before tax, and operating expenditures were significantly reduced from the adjusted 2010 engineering cost study.
The capital expenditure for the process plant was reported to be cost-effective at $249.7-million.
Other metrics improved included the leach residence time being reduced by 30%, and increase in plant throughput from 8.7-million tons a year to 11.2-million tons a year, and an increase in average yearly production from 3.3-million pounds to 4.2-million pounds of triuranium pentoxide (U₃O₈).
"As a consequence of the positive study, we are now accelerating the drilling programmes at Valencia East and Valencia North with a strategy to release an updated mineral resources statement in Q3 2013. In the near term, we will appoint an engineering firm to complete the feasibility study, which will incorporate the optimised processing plant,” Forsys CEO Marcel Hilmer said.
Forsys said the results of the new study would be incorporated in a National Instrument (NI) 43-101 feasibility study, slated to be complete by the end of the year.

The latest Namibplaas resource estimated 33.4-million pounds of U₃O₈ grading 152 parts per million (ppm), using a cut-off grade of 100 ppm, to be present on the property.

This resulted in a combined measured and indicated resource at a cut-off grade of 100 ppm of 93.9-million pounds of U₃O₈, grading 175 ppm, being present on the properties, which were located only seven kilometres apart.

Forsys was now focused on two significant high-grade zones that would be the focus of optimising the openpit design.

Forsys initially focused on its Valencia uranium project and had acquired a 25-year mining licence, making it one of only two fully permitted development-stage projects in the country.

The Valencia project had an after-tax net present value of about $273-million, with reserves of about 60.5-million pounds of U₃O₈. asa20130503

SA resource companies awarded for social leadership

SA Premier Jay Weatherill presented the awards at an annual resources industry dinner at the Adelaide Convention Centre, billed by the Chamber of Mines as the state’s biggest resources industry event of the year.

Iluka Resources was awarded for successful social inclusion and indigenous initiatives, including its pre-employment programs, while OZ Minerals and Beach Energy were jointly recognised for their cross-industry initiative encouraging diversity through their “Leading My Career” program.

The award for excellence in supporting community participation was presented jointly to PepinNini Minerals and Royal Resources.

PepinNini was acknowledged for its long-term work in encouraging the participation, involvement and contributions from local remote communities in its operations, while Royal was awarded for its range of community work in raising awareness about mental health.

Flinders Logistics was presented the award for excellence in environmental management for its development of groundbreaking dust minimisation technology.

SA Chamber of Mines chief executive Jason Kuchel said the winners demonstrated exceptional commitment to social and environmental responsibility, especially in light of macroeconomic pressure on the resources industry.

“The two exploration company winners, Royal Resources and PepinNini Minerals, who both operate on limited budgets and under tight financial constraints, is another example of how committed the industry is to its social responsibilities, particularly in our current economic climate,” Kuchel said.

“We as an industry are very aware of the shortage of women, but with programs like OZ Minerals’ and Beach Energy’s encouraging the attraction, retention and promotion of women across all organisational levels, we are making steps to ensure we address the shortage.

“We also pay our respect to PepinNini’s founding chairman and managing director, the late Norman Kennedy, who led the charge for encouraging leadership in working with local communities due to his own community-minded leadership.”

This article come from: http://www.centrifugalslurrypump.com/Mining-News/SA-resource-companies-awarded-for-social-leadership.html