JOHANNESBURG (miningweekly.com) – Project management services company Tenova Mining & Minerals South Africa – an operating arm of the global Tenova Mining & Minerals group – on Tuesday announced that it was carrying out a definitive feasibility study (DFS) for Mozambique-focused Baobab Resources’ pig iron and ferrovanadium project in the Tete region of Mozambique. The iron-ore resource targeted for mining comprised magnetite and included vanadium with prefeasibility study testwork having confirmed the potential for the successful production of pig iron with vanadium as a by-product. The DFS, which started in January and was scheduled for completion in September, covered the beneficiation and smelting of one-million tons a year of high-quality, low-impurity pig iron, with Tenova Mining & Minerals group company Tenova Pyromet consulting undertaking the smelting plant aspect of the study. Tenova said the remoteness of the site and the difficulty of access were major challenges associated with the project, therefore, the logistics part of the DFS would evaluate transport infrastructure requirements, including the trucking of coal to the site, the trucking of pig iron to a railway siding and the transport of this material by rail to the ports of Beira and Nacala. “The study will also take into account the significant infrastructure investments already being made in the region. These include rail corridors, linking the Tete province with the coast, that are being refurbished and expanded, as are the ports of Beira and Nacala,” the company said. In addition, in conjunction with another consultant, Tenova would also assess the possibility of cogenerating off-gases that could be converted into power. http://www.miningweekly.com/article/tenova-mining-minerals-sa-awarded-baobab-mozambique-dfs-2014-03-11
http://www.mining.com/iron-ore-price-stabilizes-bhp-rio-analysts-say-fall-temporary-70148/ "In recent earnings announcement number three producer BHP Billiton (LON:BHP), behind Vale (NYSE:VALE) and Rio Tinto (LON:RIO), said every $1 decline in the price of iron ore translates into a $120 million hit to the bottom line." Ouch. Its also phenomenal that 40% of stocks in chinese ports are being used as collateral for loans, the credit crunch is really crunching. I would have expected a takeover to look at the evidence collected to define the resource, and to come to a final figure which would discount part of the resource having a lower conversion ratio. Although recent takeovers have had shareholders over a barrel, at least ours isnt in the middle of nowhere needing a $1bn railway!
absolutelty, you would actually be happy for IO to fall slightly to permanently displace these expensive miners. what companies are focusing on now is the bottom line, low cost, high profit projects - it doesnt get much better than that here. same for the pig iron, our production will effectively dampen the brazilian requirements, they should be worried, not us. happy for a little slippage in time, but not to much and happy for 100% conversion from Indicated to Measured. I know the quality/strip ratio has improved. We only need 60mt for a 10 to 15 year project. One questions I would have - is that for the project to get a JV/Takeover, would we not need to increase the remaining JORCs to a measured status - that will A) take time, and B) take money
Resource upgrade was still Q1 in interims, should get a good measured resource upgrade as a minimum with maybe a side order of increased FE as a bonus. AIM miners getting hammered again on china concerns, RIO/BHP ramping up iron ore will just displace the higher cost chinese mines, the word will still need increased steel production for the emerging world industrialising. Its all doom and gloom for now, but in the near future we should be back on the straight and narrow IMO.
a world class company with a world class deposit in a nutshell. plently of news due, some in March. just topped up with another 94k at 10.5028 (not sure why sells are going through at 10.52).
Timelines & newsflow
Can someone please remind at what are we looking at?
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