August’s top news stories

5 August 2018 (Last Updated June 30th, 2020 14:04)

South32 acquired the remaining 83% of issued and outstanding shares of Arizona Mining for $1.3bn, EMR Capital agreed to offload its 80% stake in Martabe gold and silver mine in Indonesia for $1.21bn. Mining-technology.com wraps up the key headlines from August 2018.

August’s top news stories
South32 operates an advanced zinc, lead and silver exploration opportunity in North America. Credit: Alchemist-hp

South32 buys remaining interest in Arizona Mining for $1.3bn

Australian mining and metals company South32 concluded the acquisition of the remaining 83% of issued and outstanding shares of Canadian mineral exploration company Arizona Mining, in an all-cash deal valued at $1.3bn.

The completion of the deal follows an agreement signed by the companies in June. The amount for the transaction was funded from cash on hand.

Under the terms of the deal, South32 offered C$6.20 ($4.69) in cash for each common share held by former shareholders of Arizona Mining.


EMR Capital to offload 80% stake in Martabe gold and silver mine

Australian private equity firm EMR Capital agreed to offload its 80% stake in Martabe gold and silver mine in Indonesia to PT Danusa Tambang Nusantara for $1.21bn.

The deal also includes the interests of Farallon Capital and other shareholders in the mine, reported Deal Street Asia.

PT Danusa is currently owned by Indonesia-based heavy-equipment distributor PT United Tractors and PT Pamapersada Nusantara.


Resolute eyes autonomous mine in Mali by the end of the year

Australian gold producer Resolute Mining will complete work on the world’s first fully autonomous mine by the end of the year, with driverless trucks, loaders and drills scheduled to begin production at the Syama gold mine in southern Mali.

The mine will also benefit from a fibre-optic monitoring and guidance system, which will improve safety and productivity at the site, and the entire project has been designed ‘to ensure future flexibility’, according to Resolute Mining.

The company stressed that the presence of automated vehicles would not significantly reduce the number of workers at the mine; of the 1,500-strong workforce, only 80 jobs stand to be lost to automation, and many of these positions are currently held by foreign workers, rather than those from Mali.


OZ Minerals closes $323.2m Avanco Resources takeover

Australia- based mining company OZ Minerals, through its Brazilian subsidiary, closed the compulsory acquisition of all the outstanding shares in Avanco Resources, in an A$418m ($323.2m).

The compulsory acquisition comes after acceptances for OZ Minerals’ offer for Avanco exceeded 90% in June.

The company originally made the takeover bid in March, offering A$0.085 in cash and 0.009 shares to Avanco shareholders for each share held by them in Avanco.


Wesfarmers to offload 40% interest in Bengalla coal mine for $637m

Wesfarmers signed an agreement to sell its 40% stake in the Bengalla coal mine joint venture to partner New Hope for A$860m ($637.83m).

The company will continue to benefit from earnings and cash flow generated from its interest in Bengalla until the completion of the transaction.

Apart from Wesfarmers’ 40% stake, New Hope owns a 40% stake in the Bengalla mine with 10% held by Taipower and 10% by Mitsui.


KAZ Minerals to buy Baimskaya copper project for $900m

Kazakhstan-based copper company KAZ Minerals is set to acquire Baimskaya copper project in Chukotka, Russia, for $900m.

The project is being acquired from a group of investors, including Chelsea Football Club owner Roman Abramovich.

The transaction value includes initial consideration of $675m for 75% interest in the project and deferred consideration of $225m for the remaining 25% interest.


De Beers to initiate closure of Voorspoed mine in South Africa

De Beers Group decided to initiate the closure of Voorspoed mine in the South African Province Free State after failing to identify a suitable buyer for the diamond-mining operation.

The decision comes after the miner conducted an extensive disposal process, which involved a due diligence exercise on parties interested in the acquisition of the mine.

Voorspoed was opened in November 2008 with an expected operating life of mine of ten years.


Rio Tinto exits coal mining with sale of remaining Australian assets

Rio Tinto exits coal mining in Australia by selling its remaining assets in Queensland for £3.95bn.

The assets sold by the company include its interests in the Hail Creek coal mine and Valeria coal development project to Glencore for $1.7bn.

The company also divested its 80% interest in the Kestrel underground coal mine, which is located 40km north-east of Emerald in central Queensland and produces coking coal, to a consortium comprising EMR Capital and PT Adaro Energy for a consideration of $2.25bn.


Newcrest requires $598m capex for Cadia expansion project in Australia

Newcrest Mining will require an estimated total capital expenditure of $598m for the expansion of Cadia gold operations in New South Wales, Australia, according to a pre-feasibility study (PFS).

The capex includes $540m to develop next Macro Block PC2-3 and the remaining $58m for the processing plant and underground materials handling expansion.

The PFS has outlined future potential de-bottlenecking options to increase plant capacity to 35Mtpa, which is designated as the upper limit of Cadia’s caving footprint capability until PC1-2 production increases.


BHP Billiton experiences outage at Olympic Dam copper smelter

Multinational metals and mining company BHP Billiton reported an outage at its Olympic Dam copper smelter in south Australia.

The company attributed the outage at the acid plant to the failure of several boiler tubes, adding that it is currently assessing the impact.

In a statement, BHP said: “Remediation and mitigation activities are underway, and underground mining operations continue as normal.”