Deals this week: Canadian Zinc Corporation, RNC Minerals, Macmahon Holdings
Northwest Territories Power Corporation (NTPC) is to evaluate the opportunities for supplying power for development and operation of Canadian Zinc Corporation’s Prairie Creek Mine in Canada.
A memorandum of understanding (MoU) has been signed between the two parties for this arrangement.
NTPC will also assess alternative energy sources such as liquefied natural gas to produce electricity to be supplied to the mine, as part of the MoU.
RNC Minerals is set to optionally acquire South Kalgoorlie Operations (SKO) in Western Australia under a toll processing and purchase option agreement signed with Westgold Resources.
SKO mining assets and infrastructure are located 30km away from the Beta Hunt Mine owned by RNC Minerals.
RNC will benefit from a lower cost toll milling alternative and be able to expand its Kalgoorlie footprint through the potential acquisition of SKO. If this expansion is exercised, it will provide significant synergies with the Beta Hunt mine. The purchase consideration for SKO’s acquisition is A$80m ($61.43m) if this option is triggered.
RNC will be allowed to access 50% of Westgold’s plant capacity at SKO on a three weeks on / three weeks off basis for a year starting from 1 July, which is expected to save RNC $7m in costs.
Macmahon Holdings has signed a MoU with PT Amman Mineral Nusa Tenggara (AMNT), a company based in Indonesia. Macmahon will evaluate options for improving production of the Batu Hijau mine copper-gold mine and assess potential in developing more deposits in the same area.
Located on the Sumbawa Island, the mine produced roughly 477 million pounds of copper and 800,000oz of gold.
The agreement makes Macmahon the preferred contractor for AMNT for three years.