March's Top Stories: BBI Group signs Balla Balla deal, Macmahon to buy Indonesian assets
BBI Group signed deal for Balla Balla iron ore project development, and Macmahon reached a HoA with PT Amman Mineral Nusa Tenggara to acquire mining assets in Indonesia. Mining-technology.com wraps-up the key headlines from March 2017.
BBI Group (BBIG) signed a memorandum of understanding (MoU) with China State Construction Engineering Corporation (CSCEC) to build the Balla Balla Infrastructure iron ore project in Western Australia.
The MoU was signed in the presence of Australian Prime Minister Malcolm Turnbull and Chinese Premier Li Keqiang.
Construction of the BBI project and a foundation customer mine to be developed in the Pilbara region of Western Australia will cost approximately A$6bn ($4.57bn).
Macmahon Holdings signed a non-binding heads of agreement (HoA) with PT Amman Mineral Nusa Tenggara (AMNT) to acquire certain mining assets in Indonesia.
Under the HoA, AMNT will become a significant shareholder in Macmahon. Macmahon will be awarded a life of mine contract to provide specific earthmoving and mining services at AMNT’s copper-gold mine in Indonesia.
Macmahon directors expect that this transaction will increase the scale, operational diversity, revenue and growth prospects of the company.
Ausdrill subsidiary BTP Equipment received a A$70m ($53m) 24-month extension for its mining and equipment contract with Peabody Energy Australia.
The extension requires BTP to continue rent mining and associated equipment to Peabody’s coal mines in core Australian coal precincts, including the Hunter Valley and Bowen Basin.
BTP Equipment executive general manager for equipment, services and supplies Donald James said: "The contract extension reflects the strong relationship that BTP has built with Peabody over recent years.
"We are delighted to secure this contract extension and continue with the rental of equipment and related services to Peabody."
Sunvest Minerals acquired a strategic mineral property in the Hemlo gold property in Canada.
The acquired McKinnon Hemlo West Property consists of five claim blocks covering a total claim of 24 units of 384ha.
The northern part of the McKinnon Hemlo West Property is surrounded on the west, east and north by Barrick Gold, on strike and around 6km west of Barrick Gold Corporation's current open-pit operation.
Australian mining and construction firm BGC Contracting secured a new contract from the administrators of Onesteel Manufacturing (Arrium) at the Iron Knob and South Middleback Ranges iron ore projects in South Australia.
The five-year term contract carries a value of $720m.
Arrium administrators KordaMentha confirmed that BGC Contracting’s current mining contract is scheduled to expire this year and will now be extended until 2022.
Orion Gold met all conditions and procured the necessary funding to acquire 100% of Agama Exploration & Mining.
Through its subsidiaries, Agama ultimately owns an effective 73.33% interest in the prospecting rights covering the historical Prieska Copper Mine (PC) in Copperton in South Africa's Northern Cape province, as well as Marydale Gold-Copper Project, a volcanogenic gold-copper discovery 60km from PC.
Settlement of the acquisition is scheduled to be completed before the end of this month.
Rio Tinto awarded nearly $1.38bn in contracts to develop Amrun bauxite mine project on Cape York Peninsula, Australia.
Of the total amount, more than $900m has been awarded to Queensland suppliers, with nearly 510 businesses associated with the project based in the state.
Intermin Resources started maiden gold production from the Teal Gold Mine located approximately 11km north-west of Kalgoorlie-Boulder in Western Australia.
The company commenced the development of the project in November last year with waste overburden removal primarily from the northern section of the pit to recover ore situated closest to surface and ensure continuous mining during grade control drilling.
Drill and blast were required in the calcrete layer situated near the surface to maximise productivity and lower levels below the free dig material.
Glencore entered a definitive agreement to sell an 80% interest in the Rosh Pinah mine in Namibia and a 90% share of Perkoa mine in Burkina Faso, to Trevali Mining.
Under the agreement, Trevali Mining will pay $400m as aggregate consideration for this acquisition.
Trevali will provide $244m in cash, while the remaining $156m will be paid by issuing 175,125,304 shares. Furthermore, the company has agreed to pay an additional $30m to Glencore to repay an existing debt facility.
Pure Energy Minerals completed the acquisition of a purchase option on lithium brine mining concessions at Terra Cotta Project in Salta, Argentina.
This deal was announced last month. Pure Energy Minerals entered a definitive property purchase agreement according to the Argentine law with the private owners of more than 13,000ha at the Pocitos Salar in Salta.
Pure Energy Minerals has started technical evaluation and design for its exploration programme to be conducted at the site in the first half of this year.