Sierra Leone and African Minerals nominated for mining awards
Having reviewed nominations from Mining Journal readers for this year’s Outstanding Achievement Awards (for the 12 months to end September) the following have been shortlisted (in five award categories) for voting by their industry peers. A further two categories are subject to panel adjudication.
This shortlist is now subject to a vote by Mining Journal subscribers, with voting closing on Friday, November 19. The awards will be presented at a Black-Tie Awards Dinner on Wednesday, December 1, at the Winter Garden of the Honourable Artillery Company, London.
COUNTRY AWARD
For the country that has shown the greatest improvement, in terms of its policies towards mineral investors, during the past year.
Egypt: There has been renewed exploration interest for minerals in the Eastern Desert, and the government is drafting new legislation to boost inward mining investment even further
Guinea: Despite suggestions that mining laws will be tightened, and a disagreement with Rio Tinto over Simandou, the government has offered attractive long-term tax and custom terms.
Liberia: Recently became the first country in Africa to qualify for the Extractive Industries Transparency Initiative, and was cited by the Ibrahim Index as the most improved African country.
Malawi: Has requested World Bank assistance to implement mining-sector growth, and offered incentives to inward investment (including duty-free imports and fewer delays in awarding exploration rights).
Mali: With other countries increasing taxes and royalties, a proposed mining code will improve investment conditions. Mali was ranked second in Africa this year by the Fraser Institute.
Mozambique: The government is undertaking an extensive privatisation programme. Despite continued concern over corruption, the country’s development indicators have improved recently.
Sierra Leone: Significant progress has been made in improving the investment environment. Although royalties have increased, security of tenure has improved and a Cadastre Office has been created.
EXPLORATION AWARD
This award is given for notable exploration success.
Caspiche: Exeter Resource Corp has lifted measured and indicated resources at this project in the Maricunga district of Chile to 21.3Moz gold, 48.4Moz of silver and 2.4Mt copper, a 50% increase.
DeGrussa: Contained copper at Sandfire Resources NL’s copper project in Western Australia has risen by 61% since February.
Golden Saddle: This gold deposit, containing 1.4Moz, on Underworld Resources Inc’s White Gold property in the Yukon was the main attraction in the company’s acquisition by Kinross Gold Corp.
Haquira: This copper-molybdenum-gold deposit of Antares Minerals Inc (being acquired by First Quantum Minerals Ltd) in southern Peru is expected to produce 3.8Mt of copper over a 20-year life.
KSM: The Kerr, Sulphurets and Mitchell deposits at Seabridge Gold Inc’s gold-silver project in British Columbia are capable of producing an average of 634,000oz/y over nearly 37 years.
Renard: At the end of last year, Stornoway Diamond Corp tripled the indicated and inferred diamond resource at this deposit (part of the Foxtrot joint venture with Soquem Inc) in Quebec to over 36Mct.
Tumpangpitu: Although in a protected forest, Intrepid Mines Ltd’s porphyry deposit (part of the Tujuh Bukit property) in Indonesia offers an inferred resource of 500Mt, containing 2.1Mt copper and 8Moz gold.
Wafi-Golpu: Following exceptional drilling results, Harmony Gold Mining Co recently lifted the exploration target for this project (a joint venture with Newcrest Mining Ltd) in Papua New Guinea to 30Moz gold and 8Mt copper.
Zambeze: Riversdale Mining Ltd’s Mozambique coal deposit (adjacent to its Benga mine) has 2,635Mt in indicated and 6,680Mt in inferred resources.
SUSTAINABLE DEVELOPMENT AWARD
Most noteworthy environmental-protection programme in the international mining industry.
Gold Fields Ltd: The first gold-mining company to trade carbon emissions (as Certified Emissions Reduction units). Gold Fields will capture methane gas at its Beatrix gold mine in South Africa, and will use the funds to finance a number of projects.
Newmont Mining Corp: The company has been effective in widening the net for voluntary counselling and testing on HIV/AIDS in Ghana. In partnership with the country’s Health Service, Newmont Ghana has also broadened education about malaria control.
Rio Tinto: A three-year collaboration has been agreed with the International Union for Conservation of Nature to strengthen Rio Tinto’s sustainable development efforts and environmental management.
EXPLORATION AND DEVELOPMENT FUNDING AWARD
Awarded for the most effective financing of an exploration or development programme.
African Minerals Ltd: Shortlisted for the US$1.5 billion agreement with Shandong Iron & Steel Group to speed development of the Tonkolili iron-ore project in Sierra Leone. Shandong gained 25% of the project and iron ore at discounted prices.
Baja Mining Corp: The US$823 million financing of its 70%-owned Boleo copper-cobalt-manganese project in Mexico involved funding from the US Export-Import Bank (in its largest mining deal to date), Export Development Canada, Korea Development Bank and a group of five commercial banks.
Detour Gold Corp: The company raised C$282 million (US$270 million) in mid-year to advance its Detour lake gold project in Ontario. The bought-deal financing involved the sale of 11.8 million shares to underwriters.
Ferrexpo plc: A US$350 million debt facility with 12 banks allowed Ferrexpo to progress its key expansion projects. The oversubscribed facility, which matures in 2014, had a competitive interest.
DEAL OF THE YEAR
Takeover, merger or listing that has most captured the imagination of the financial community.
African Barrick Gold plc: In March, Barrick Gold Corp spun off its African assets (with an attributable production of 716,000oz in 2009) in an IPO on the LSE. The parent retained a 74% stake, with net proceeds to African Barrick of US$884 million.
Central Asia Metals plc: The company placed 39.7 million shares to raise £38 million (US$60 million) at the end of September in the largest AIM IPO this year, with a market capitalisation at listing of only £83 million.
Conquest Mining Ltd: Outflanked takeover opposition by North Queensland Metals by instead paying A$37 million (US$35 million) to acquire a 40% stake in NQM’s main asset, the Pajingo mine.
Kingsgate Consolidated Ltd: The US$368 million all-share acquisition of Dominion Mining Ltd (at a premium of only 33% to the prevailing price) boosted the company’s plans to become a premier ASX-listed gold miner.
Kinross Gold Corp: Secured an all-share takeover of Red Back Mining Inc to create a US$19 billion company. The target assets included the Tasiast and Chirano mines in Mauritania and Ghana, respectively, and Kinross paid a premium of only 21%.
Mongolia Mining Corp: Widely regarded as the most successful mining IPO in Hong Kong this year. Funds from the coking-coal producer’s US$680 million listing are earmarked for expansion projects in the Tavan Tolgoi region.
Newcrest Mining Ltd: With the A$9.5 billion (US$9.3 billion) takeover of fellow Australian Lihir Gold Ltd, Newcrest created the world’s fifth largest gold producer. With ten mines in five countries, the enlarged company had a market capitalisation of over US$25 billion.
Vallar plc: This new mining investment vehicle raised an above-expectation US$1.08 billion in a London IPO in July. Led by Nat Rothschild and James Campbell, Vallar said it will use the funds to make an acquisition valued at up to US$8 billion within two years.
Mining Journal
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