With a major new mine in development and a mining code that aims to promote more development in the sector, a high-ranking delegation from Algeria’s Ministry of Mines and Energy is currently visiting Australia to inspect mining operations in New South Wales, South Australia and Western Australia and to meet with industry leaders.

The visitors include the Presidents of Algeria’s two major national mining regulators, the National Agency for Mining Patrimony (ANPM) and the National Agency of Geology and Mining Control (ANGCM), as well as the head of the Algerian department of mines, (DGM). Terramin Australia - which is currently developing Algeria’s largest zinc mine at Oued Amizour on the north coast - invited the delegation so they could observe the dynamic conditions for promoting exploration and development investment in Australia.

While in Australia, they will tour some of Australia’s most advanced mines, including Rio’s North Parkes copper-gold mine in NSW, and the most modern base metal mine in Australia -Terramin’s  soon to open Angas zinc mine - located just 45 minutes from Adelaide. The visitors will see how the Angas mine is located near wineries and the Murray River near Adelaide, and so had to incorporate the best environmental technology while containing the operations to a very small area. In Western Australia, they will visit Oxiana’s Golden Grove base metals mining operation. These experiences provide examples of best practice that they can draw on in assessing new mines within Algeria.

Terramin’s Tala Hamza project, a joint venture with two Algerian government mining companies, is likely to be the first application of modern underground mining in Algeria. Production is planned to start around 2010-11, and the mine is likely to rank in the top four zinc producers in the world by that time, since many large zinc mines will be declining or closing from 2009.

Terramin’s Executive Chairman, Dr Kevin Moriarty said the visitors were on a fact-finding mission to learn more about the administration, regulation and promotion of mining in Australia, as well as critical public issues such as environmental monitoring, employee health and safety, and community relations. All of these issues have been climbing the government agenda in Algeria since laws governing minerals exploration were relaxed in 2000, and the State gave up its right to 51% of all discoveries made in the country.

“Algeria is opening for foreign mining and exploration ventures, usually in partnership with local firms or the government,” Moriarty said. “The sector has suffered from under investment and lack of access to modern techniques, but the country is highly prospective, particularly for base metals, uranium, iron and gold. With assistance from global firms like KPMG and Ernst and Young, the Algerian government has created new corporations and mining laws that rank with any in countries like Australia. However, the implementation of these new legal frameworks is slow owing to a large bureaucracy. The government is working to clear the bottlenecks, but it will take time. Meanwhile, there are opportunities for companies like Terramin that have the staff and culture able to work within these constraints.”

Moriarty said the top Algerian officials were also interested in how to regulate mining in a modern context, so as to incorporate sustainability and environmental protection. The visitors will receive comprehensive briefings from SA and WA mines departments, and the Department of Foreign Affairs and Trade. The Australian officials will describe tax and subsidy schemes used in Australia to facilitate exploration and mining.

Primary Industry and Resources, South Australia is hosting the visitors during the 2008 Paydirt Resources Energy and Investment Conference in Adelaide this week, providing further opportunity to meet industry leaders.

Adelaide-based Terramin has been one of the first major international miners to gain a firm foothold in Algeria, through its 65% shareholding in the local holding company that controls the world-class Tala Hamza zinc deposit at Oued Amizour. With an inferred resource of 55 Mt of high-grade ore in close proximity to European zinc smelters, the deposit has the potential to become one of the top four zinc mines in the world - at a time when production is declining globally.

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International Mining Project News is a bumper issue this week (April 25), of over 40 pages, including some ‘different’ items of news like some gallium projects. Lots of coal and iron ore news - the poundits say these are two of the commodities to be in. The eletter includes sections on prefeasibility and feasibility studies, announcements on developments going ahead, new mines into production, expansions and people moving around the projects.

This issue has news, in the developments section alone, of Harmony Gold and Newcrest Mining in Papua New Guinea, bringing into production a new block cave mine - Hidden Valley - a gold and silver project, expected to produce over 250,000 oz/y of gold and 3.6 Moz/y of silver over a 14 year mine life. Yalea underground gold mine being developed at Randgold Resources’ Loulo project in Mali is scheduled to establish its first mining faces in the second quarter, with full production by 2009. Anglo Asian Mining is proceeding with development of the Gedabek project in West Azerbaijan. Production from Gedabek is forecast, by the company, to exceed 85,000 oz of gold in the first year. In Senegal, Mineral Deposits first year gold production of some 200,000 oz is expected in 2009, when Sabadola mine’s operating costs are expected to be $371/oz. Sino Gold Mining has been issued the Mining Licence for the White Mountain gold mine from China’s Ministry for Land and Resources. Osisko Exploration has entered into an agreement with Hewitt Equipment to acquire the mining fleet for its Canadian Malartic gold project.

URS Corp’s Washington Division has been awarded a contract by PolyMet Mining to provide EPCM services for new processing facilities at PolyMet’s mining project in northeastern Minnesota. Vulcan Resources has completed the Definitive Feasibility Study for an 800,000 t/y Kylylahti mine and concentrator in eastern Finland. The Board has approved the initial development of this copper-cobalt-nickel project. Adanac Molybdenum has signed a term sheet with a leading global investor to provide $80 million bridge financing to fund continued development of the Ruby Creek moly project. Sally Malay Mining has now awarded all major contracts for construction and operation of the Copernicus nickel project.

Moly Mines says that the Environmental Protection Authority of Western Australia has recommended that the company’s Spinifex Ridge moly-copper project should be approved. Gunson Resources reports JORC compliant ore reserves at Coburn have been increased by 247%, to 306 Mt averaging 1.2% heavy minerals. At the proposed mining rate of 17.5 Mt/y of ore, mine life at Coburn has increased by over 10 years. Mosquito Consolidated Gold Mines has received the completed NI 43-101 technical report on its Idaho-based CUMO molybdenum-copper project and its filing with SEDAR. Universal Resources has approved development of the Roseby copper project (Queensland).

SouthGobi Energy Resources has bought a second fleet of coal mining equipment for the Ovoot Tolgoi open-pit coal mine in southern Mongolia. Infrastructure milestones have advanced Northern Energy’s Elimatta and Yamala coal projects in Australia. ArcelorMittal has reached an off-take agreement with Coal of Africa, which relates to two new mines in South Africa. Whitehaven Coal has received project approval for its Rocglen (previously Belmont) coal project from the New South Wales Minister for Planning. Alliance Resource Partners has approved the opening of a new mine for the immediate development of the River View coal reserves in Kentucky.

There is of course much, much more within the latest project news from around the world. To receive the full 40+ page report, subscriptions to the service can be registered and paid for on-line (on www.im-mining.com, SUBSCRIBE TO IM PROJECT NEWS BUTTTON), or contact emma@im-mining.com for a free trial copy.

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  Randgold Resources, which earlier this year assumed operational responsibility for the Morila joint venture, is committed to ensuring that the balance of the gold mine’s life is fully exploited for the benefit of all stakeholders, chief executive Mark Bristow told members of the media at a briefing in the Mali capital today. Contrary to what the ignorant NGO Oxfam cited the other day, mining companies like Randgold take great care in countries like Mali.

Randgold, which has won awards for its sustainable development initiatives in Mali, is currently completing a thorough evaluation of all aspects of the operation and this will form the basis of a plan designed to optimise Morila’s remaining resources over the rest of its life. The mine has five years of life left on its current reserves, but exploration aimed at extending the resource base is continuing.

Bristow noted that since it was commissioned in 2000, Morila has produced almost 5 Moz of gold and delivered more than $1 billion in cash profits. It has made a significant contribution to the Malian economy, not only in dividends, taxes and royalties paid to the state, but also in terms of job creation, skills development, local procurement and community upliftment initiatives.

“Although it is now past its prime, Morila is still a prolific gold and profit generator, which is forecast to produce approximately 1.4 Moz of gold over the balance of its currently foreseeable life,” Bristow said. “The challenge is threefold: to ensure through careful and attentive management that Morila meets its commercial targets; to find further ounces which could lead to extending the mine’s life, if possible; and to prepare for the mine’s eventual closure with due regard for all stakeholder and community concerns.”

A week ago Oxfam America announced a new, what it describes as, “initiative to promote the rights of communities impacted by oil, gas, and mining industries.” The NGO goes on to say that “as oil, gas, and other commodity prices reach record levels, investment in extractive projects is growing. More than 60% of the world’s poorest people live in countries rich in natural resources. Many poor communities have no say in the extraction of resources from their land and receive little information about these projects.” The latter is of course far from true in the case of most mining companies, but there are still some rogues out there.”Too often, oil, gas, and mining projects don’t benefit people in countries that are rich in natural resources, but whose population is extremely poor. These extractive projects should not add to poverty and powerlessness - natural resources can and should help communities overcome these challenges,” says Raymond C. Offenheiser, President of Oxfam America. “In order for this to happen, however, communities need to know how mining and energy projects will impact their lives and lands and how revenues from these projects will be used.”Oxfam says it “calls on international oil, gas, and mining companies to show their respect for:

A community’s right to know by providing complete and timely information about how their work affects communities - environmentally, socially, and economically - and how much extractive industries are paying governments for natural resources

A community’s right to decide by requiring extractives companies to obtain the free, prior, and informed consent (FPIC) of communities affected by oil, gas, and mining operations. For indigenous peoples in particular, FPIC is a critical means of protecting sacred lands and cultural identity.

These points are well accepted by most mining companies and have been the focus of a great deal of work by the ICMM. Clearly Oxfam does not know much about what is really going on. It just finds mining an easy industry to attack.

“Empowered with this information, communities are better able to share in the benefits of extractives projects. Revenues can go to real community needs like education, health care, and jobs, and communities can judge if these projects are a benefit or a burden,” said Offenheiser. “More often, contracts and revenues are kept secret leading to an environment that fosters embezzlement and corruption, which has contributed to the failure of extractive projects to help alleviate poverty.”

“Many extractive industries projects promise wealth and new job opportunities,” says Mamadou Biteye, Oxfam America’s Regional Director in West Africa. “Unfortunately, many projects, like gold mining in West Africa, have failed to deliver. These industries create few jobs for locals, and communities rarely see the benefit. Communities need to be empowered with information to have more control over the management of the natural resources necessary to sustain their livelihoods.” Oxfam says that in 2005, gold accounted for more than 50% of Mali’s total exports of $297 million, but information about mining revenues is inaccessible for the vast majority of citizens. And despite Mali’s gold wealth, it remains one of the poorest and least developed countries in the world. How exports approaching $300 million are expected to do much for a country like Mali, the NGO does not explain.

Additional information on Oxfam America’s new fad is available at: www.oxfamamerica.org/rights-resources

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There is a great deal of doom mongering and conspiracy theory editorial these days about the mining industry of the DRC and the renegotiation of contracts. What a lot of commentators are doing is to prejudge the outcome of the commission set up to review 60 mining agreements entered into by the para-statal companies of the DRC Government. Anyone with any knowledge of the history of the DRC, which only four years ago Tim Butcher (Blood River: A Journey to Africa’s Broken Heart - see www.bloodriver.co.uk) pretty accurately described as an “undeveloping country”, should consider the difficulties involved here.

Give them a chance to get it right themselves. Have some consideration for a country that was pillaged by King Leopold of the Belgians from the late 19th Century (and may have been responsible for the deaths of some 3 million Congolese) and has seen almost continual conflict or Mobutu’s kleptocracy since independence in 1960. It is vital that it is got right this time, and let us allow them some leeway. Mistakes will be made, but hopefully they will no longer be the genocidal mistakes of the past and the great potential of this country can start to be revealed and achieved. Read more…

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Hundreds of thousands of South African precious metals ounces are at risk as the ongoing power problems in the country have come to a very serious state. Electricity supplier Escom no longer has sufficient capacity to meet demand and is having to make cutbacks and reduce its exports of electricity to neighbouring countries. Mineweb reports that gold miners Anglogold Ashanti, Gold Fields and Harmony and platinum miners Anglo Platinum and Impala have all had to to shut down their operations until power supplies can be guaranteed. These are BIG producers and their closure, and that of others that will have to follow, will cost, perhaps, millions of ounces of lost precious metals production over a week. Read more…

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