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Weekly chart looks sweet.
test
Nice, very nice. About time too. eom
Diaz Announces the Successful Drilling of the Allen Ranch Hancock #2 Well Colorado County, Texas
Wednesday December 28, 9:00 am ET
CALGARY, ALBERTA--(CCNMatthews - Dec. 28, 2005) - Diaz Resources Ltd. (TSX:DZR - News) is pleased to announce that the Hancock #2 well, on the Allen Ranch Prospect, has been drilled to 17,072 feet and is presently being prepared to run production casing. Diaz holds a 20% interest in this well.
The well encountered the same Wilcox gas zones currently being produced in the Allen Ranch Hancock #1 well. In addition, the well logged a number of potentially productive gas zones both shallower and deeper than the current field development zones. All of these zones have been evaluated using a full suite of electric logs. Further details on this well are being held confidential at this time.
Diaz anticipates that completion operations on this well will commence during the first quarter of 2006.
Diaz is an oil and gas exploration and production company based in Calgary, Alberta. Diaz's current focus is on shallow gas developments in southern Alberta, natural gas exploration in central and southern Alberta and deep gas exploration in Texas.
Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Robert W. Lamond
Diaz Resources Ltd.
Chairman
(403) 269-9889
(403) 269-9890 (FAX)
Charles A. (Tony) Teare
Diaz Resources Ltd.
Executive Vice President
(403) 269-9889
(403) 269-9890 (FAX)
Email: info@diazresources.com
Website: www.diazresources.com
--------------------------------------------------------------------------------
Source: Diaz Resources Ltd.
http://biz.yahoo.com/ccn/051228/200512280303820001.html?.v=1
Bloomberg, Aussie Mining article.
Chalco, Tata Steel to Invest in Australia Mines as Demand Soars
Oct. 25 (Bloomberg) -- Aluminum Corp. of China, the country's biggest producer of the metal, and India's Tata Steel Ltd., plan to invest in Australian mine and oilfield projects worth $63 billion over the next decade.
Demand from China and India, the world's two fastest- growing major economies, has pushed oil, coal, iron ore and copper prices to records this year, spurring a search for new sources of supply. About A$84 billion of minerals and energy projects are now under consideration in Australia, according to the Australian Bureau of Agricultural & Resource Economics.
``There's huge demand,'' said Mark Pervan, head of research at Daiwa Securities SMBC in Melbourne, in a phone interview Oct. 19. ``These users are realizing that with such high raw material prices, it makes sense to own some of these assets.''
Australia is the world's largest producer of bauxite, alumina and zircon, according to the Canberra-based bureau. It also ranks among the top five producers of aluminum, coal, copper, iron ore, lead, nickel and silver, and has the world's largest uranium reserves. Raw material producers such as BHP Billiton and Rio Tinto Group are already developing A$23 billion of mines and oilfields in the country.
Chinese and Indian companies are expected to invest in the new projects, with iron ore, coal and gas the most popular, said Mark Durrant, general manager of resources industries at government agency Invest Australia.
Middle Class
``Some of these projects won't take place if we only rely on local investments,'' Durrant said Oct. 19. ``The emergence of the middle class in India and China is driving the need for consumer products like washing machines, and the need for steel and its ingredients has blossomed from there.''
Beijing Shougang Co., China's fourth-biggest steelmaker by output, and other Chinese companies are in talks to invest as much as A$10 billion in Australia, Henry Wang, senior investment commissioner for Greater China at Invest Australia said in an interview Sept. 16.
BHP Billiton, the world's largest miner, last September won contracts to supply $3.2 billion of iron ore to four Chinese steelmakers, on top of an earlier accord for $9 billion, supporting its mine expansion plans. Chinese contracts are also driving Rio Tinto's investment in its Australian iron ore mines, and will account for almost half of total demand after expansion.
Tata Steel, India's second-biggest steelmaker, is in talks to buy stakes in as many as three coal mines in Australia, A.D. Baijal, vice president, raw materials, said Sept. 19. Gujarat NRE Coke Ltd. has bought into its third Australian mine, while GAIL (India) Ltd., which distributes 90 percent of India's natural gas, plans to spend $500 million in the country.
`Only Place'
``Australia is the only place where you can get large quantities of coal,'' Tata Steel's Deputy Managing Director T. Mukherjee said in an interview Sept. 30. ``Also there are coal mines where one can invest and assure long-term supply.''
India's economic growth reached a 15-year high in fiscal 2004 and the government wants state-owned steelmakers to increase output by 10 percent annually to meet demand that's expected to double in the next seven years. Meanwhile, GAIL and other energy companies want to diversify supplies away from the Middle East.
China's economy grew 9.5 percent in the first half, the same as the past two years when the pace was the fastest since 1996. Shanghai-based Baoshan Iron & Steel Co., the country's largest steelmaker, and rivals may import 80 percent more iron ore by 2009, Merrill Lynch & Co. said Sept. 21.
Soaring Chinese iron ore demand sent prices up a record 71.5 percent from April 1, while coking coal prices more than doubled. Developing countries accounted for 74 percent of global demand growth for oil and minerals in 2004, according to Deutsche Bank AG, which cited the World Bank.
Secure Supplies
``Competition for Australian resources is quite strong,'' said Robert Vagnoni, 47, managing director of Murchison Metals Ltd., which is planning a A$1 billion expansion of its iron ore project in Western Australia. ``Not only are we seeing demand from the Chinese, we see interest from the Japanese, the Koreans and the Taiwanese. We've also had enquiries from India.''
Japanese rivals have been in Australia for decades. Nippon Steel Corp. has owned a stake in Rio Tinto's Robe River iron ore venture since 1977. Mitsubishi Corp., Japan's biggest trading company, first invested in coal mines in Queensland in 1968, while Itochu Corp. and Mitsui & Co. partnered with BHP to mine iron ore in Western Australia in 1967.
``What the Japanese were to the Pilbara iron ore mines of BHP and Rio, the Chinese may do for the new iron ore projects,'' Vagnoni said. Other Australian iron ore miners looking for investments include Fortescue Metals Group Ltd. and Midwest Corp.
Bauxite in Demand
Indian and Chinese companies are among 10 interested in developing the Aurukun site in Queensland, which contains 650 million tons of bauxite, enough to produce the aluminum contained in 2.5 million Boeing Co. 747-400 aircraft.
Aluminum Corp. of China, known as Chalco, Mumbai-based Hindalco Industries Ltd. and companies from Canada, Brazil, Japan and Russia have submitted bids, the state government said Oct. 14. Mining the deposit and building a processing plant may cost as much as $900 million, Chalco said in March.
``The intention is to secure supplies, and they're very conscious of their exposure to our resources,'' said Mitchell Hooke, 48, chief executive of the miners-funded Minerals Council of Australia. ``They're not in this for the financial returns. They're in this because of the opportunity costs of not getting the supply.''
Still, overseas investors may have to invest in smaller, riskier projects in Australia as Rio Tinto, BHP and the biggest companies may be reluctant to relinquish control of their mines. Rio Tinto Chairman Paul Skinner said the company doesn't need to sell stakes in its mines to Chinese customers, the Australian reported Sept. 16.
Tightly Held?
High mineral prices are also making investing in mines more expensive, Tata Steel's Baijal said.
``The likes of Rio and BHP are unlikely to want to give away equity in their mines as they can fund them themselves,'' said Shaun Giacomo, who helps manage $1 billion at SG Asset Management Pte. in Singapore, including shares in BHP and Rio Tinto. Investors ``may have to partner grass root projects. The world-class assets are tightly held.''
Even smaller assets in Australia may be more in demand than mines elsewhere though.
``We have preferred Australia over Africa because of the political stability and also because this country offers a viable environment to conduct business,'' Sumit Kumar Khetan, president of Gujarat NRE, said on Oct. 4.
Indonesia
In Indonesia, Newmont Mining Corp., the world's biggest gold miner, is standing trial on criminal charges of polluting the sea with arsenic and mercury. Denver-based Newmont denies the charges. Newmont, Placer Dome Inc. and Goldcorp Inc. have said plans to cancel mining rights in Venezuela make future investments in that country unlikely.
Australia has a ``stable government, a light regulatory regime, and an economy that's very pro-mining,'' said SG's Giacomo. ``There's a scarcity of projects worldwide'' to invest in, he said.
To contact the reporter on this story:
Tan Hwee Ann in Melbourne at hatan@bloomberg.net
Last Updated: October 24, 2005 22:01 EDT
http://www.bloomberg.com/apps/news?pid=10000081&sid=auAruFR9qvo4&refer=australia
Calinvestor, SN acquired their Aussie coal properties in 1998 for $5.24 million(cdn). SN currently has $1.8million(cdn) in cash. At the close today, SN's market cap is $7.12 million(cdn), which is the equivalent of the 1998 purchase and cash.
It doesn't look to me as if the market gets this yet. Its no wonder Rozier has been buying. Nothing else is priced into the stock, not a sale of Middlemount or a potential JV on Ownaview or Collingwood. All IMO of course.
Anglo's German Creek Mine is in Middlemount, adjacent to SN's Middlemount property which is up for bid through Ernst and Young(Perth, Australia). I find it hard to believe it won't sell this time, even though I've been disappointed before.
Recent email from SN Management. Welcome to the board oasdihf.
.............................................................
We are in the final month for the Retainer fees for E&Y but they are continuing to work with their clients. It has been such an incredibly tedious process and we cannot wait to get some news out to all the patient (and impatient) shareholders. This has NOT been a fun time for any of us.
Best regards
Barbara
Barbara E. Dunfield, MBA
#408 -837 W. Hastings St.
Vancouver, BC Canada
V6C 3N6
Tel: 604-685-6851
Fax: 604-685-6493
PLL, according to the Aug. 30 press release, we should have a
boatload of info coming soon, hopefully next week.
http://www.palladonmining.com/s/PressReleases.asp?ReportID=116251&_Type=Press-Releases&_Titl....
Gladstone to be coal world No 1
Sean Parnell, Queensland political reporter
October 05, 2005
THE central Queensland port of Gladstone is set to become the world's largest coal export facility, with the Beattie Government fast-tracking a redevelopment in the massive Bowen and Surat basins.
The decision capitalises on the resources boom and allows the expansion of existing operations, which is expected to create hundreds of jobs.
Gladstone is the third-biggest coal exporter in Australia - behind the privately owned Hay Point/Dalrymple Bay facilities in Queensland and the government-owned Newcastle port in NSW - and the only port in the world where the government also owns and operates the loading infrastructure.
Having moved to break the bureaucratic bottlenecks that have slowed exports and delayed infrastructure, Premier Peter Beattie said his newly installed Co-ordinator-General, Ross Rolfe, had taken charge of two major projects at Gladstone.
Mr Beattie said construction of the Wiggins Island coal terminal and associated rail infrastructure, which will cost $1.8 billion and be completed by 2010, would allow for 140 million tonnes of coal to be exported from Gladstone every year.
"It ensures long-term supply chain opportunities for the central Queensland coalfields and strengthens the possibility of further expansions in the Bowen and Surat basins," Mr Beattie said, noting his target of Queensland exporting 220 million tonnes of coal by 2010.
While the project will create 500 construction jobs and 125 operational jobs in the industrial city, it will also fill the Government's coffers with coal royalties, which are this year expected to pass $1 billion for the first time.
Gladstone will overtake Qinhuangduo port in northern China as the world's largest coal export point and Mr Beattie said he was determined to help meet the long-term demands of China and India, along with Queensland's traditional customers in Europe.
"The demand for coal is so extensive that I can't see, even with a slightly reduced demand out of China, it having any great impact on the price of coal," Mr Beattie said.
Having dismissed calls for uranium mining to be re-embraced, Mr Beattie said Queensland was using its 300-year supply of coal and working on clean coal technology to ensure the industry had a long-term future.
Central Queensland Ports Authority chief executive Leo Zussino said Gladstone had sold 75million tonnes of capacity in line with a continuing expansion. It already had expressions of interest for 50 million tonnes of the 70 million extra tonnes of capacity expected to be brought on line through the Wiggins Island project.
Following the heated debate over the export bottleneck at Dalrymple Bay, Mr Zussino said the Government had given certainty to mining companies and coal buyers and demonstrated that Gladstone could support the further development of the Bowen and Surat basins.
"In a world where you supposedly have to be private to be successful, we are being compared with coal-exporting terminals that are operated by the coal exporting companies themselves," Mr Zussino said.
However, a spokesman for the Queensland Resources Council called on the Government to examine all export alternatives and work with the industry to develop a masterplan to maximise coal expansion opportunities.
Mr Rolfe, who is Queensland's highest-paid bureaucrat after being seconded to the position from the Stanwell power corporation, declared Wiggins Island a "significant project" and made a similar declaration over the planned reclamation of 153ha of land nearby to allow the Fisherman's Landing to eventually host 11 wharves and support additional industry.
Mr Beattie said the special legislation introduced into Parliament yesterday, initially prompted by the planned $1 billion-plus road tunnel under the Brisbane CBD, would prevent the approval process for significant infrastructure projects being delayed by unnecessary Environmental Impact Statements.
"The Coordinator-General will follow the normal EIS assessments, we're not going to abandon them we just need to make sure that they're done in a timely manner and that's what the legislation provides," he said.
Mr Rolfe has already pushed through a number of projects and Mr Beattie said he expected more to be facilitated in the coming months.
http://www.theaustralian.news.com.au/common/story_page/0,5744,16819625%255E2702,00.html
Good news today, it appears oil production is resuming quickly. Arcadia Parish awaiting power, should be restored within a few weeks I would imagine.
Powder River Assesses Hurricane Damage, Only Minimal Disruptions Reported
Tuesday October 4, 7:00 am ET
CALGARY, Alberta--(BUSINESS WIRE)--Oct. 4, 2005--Powder River Basin Gas Corp. (OTCBB:PRVB - News) a revenue generating producer and acquirer of crude oil and natural gas, today announced it has completed its assessment of the damage caused by Hurricanes Katrina and Rita. PRVB is pleased to report that no serious damage was sustained on any property, and that all oil and gas reserves, equipment, and inventory remain intact.
Hurricane Katrina caused no damage directly to Powder River Basin Gas Corp. properties.
The oil and gas pipelines which transport gas from the Arcadia Parish project were damaged, and remain out of service as gas facilities are being re-built. The gas is shut off at the wellhead until the facility is back in operation.
Hurricane Rita caused more direct disruption to operations, as electricity remains off since the storm. The electric company is working to have services restored as quickly as possible. Due to the excessive rainfall, this repair work has been delayed while water recedes.
The Arcadia Parish project will resume oil production as soon as electricity is restored. Oil will be stored on site until transports resume.
The Springhill project sustained some damage, but this was confined to the surface only. Trees were blown over roads and some electric poles were knocked down, as well as minimal flooding to the project. Electric service has been restored and wells are being quickly put back into production.
The Kirby, Texas well received no direct damage, but has been shut down while access roads are being cleared of downed trees and the water evaporates. There is also a shortage of propane, which is required to start the gas motors. This will delay production and sales, but only on a short-term basis.
Parts of Oklahoma received heavy rainfall, however there was no serious damage to any of the properties or equipment.
There remains a "waiting list" on materials as most of the suppliers in Louisiana have been temporarily shut down until services are restored.
"Both Katrina and Rita have caused delays in the Company's development program, and will affect oil and gas revenue for the third quarter. However, we are pleased to report no product or equipment was lost, and we expect to be back on schedule during the fourth quarter of 2005," stated Powder River Basin Gas Corp. CEO Brian Fox. He went on to say, "At this time, I would like to express our deepest sympathies to the Gulf Coast victims of both hurricanes. As a company, and as individuals, we all have and will continue to support the relief efforts. I would also like to thank everyone who contacted us to express their concerns for our employees located in this region. I am relieved to announce that all Powder River Basin Gas Corp. employees are fine, and we greatly appreciate the support shown."
Powder River Basin Gas Corp. is active in production and acquisition of crude oil and natural gas.
Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Powder River Basin Gas Corp. (OTC Bulletin Board:PRVB - News)
Contact:
Powder River Basin Gas Corp.
Stephanie Edgemon
Investor Relations
(602) 466-2422
powderriverir@aol.com
www.powderrivergascorp.com
Monthly Chart, big cup forming.
PRVB test chart
Thanks Bob, looks like we could have a strong year end finish if the the other well comes in. By the way, what is the exact conversion of gas mcf to boed? TIA
Great news today, maybe Diaz will meet it's projected production exit rate for 2005 after all...
Much accumulation going on with this one. Does anyone have any additional info on PRVB, other than what's been released? This board was hard to find, should be under the OTC boards. Can it be moved? TIA
Iron Ore Prices to Rise 15% in 2006--Forbes 9/30/2005
Excerpt from article...
In contrast, iron ore prices are likely to rise.
Analysts said Australian exporters such as BHP Billiton and Rio Tinto are expected to seek iron ore price rises, again arguing they should share in the benefits of lower shipping costs from Australian mines to Asian markets compared with the shipping costs from other sources in Brazil and India.
The Macquarie commodity analysts this week upgraded their forecasts for bulk commodities to reflect its 'stronger for longer' view as China remains the key demand driver.
They said iron ore producers are best placed to gain further price rises next year, adding that market opinion is changing from previous expectations of a roll over in prices.
'With upcoming 2006 price negotiations drawing nearer, we are seeing an unprecedented shift in expectations for 2006 iron ore prices,' they said.
The Macquarie commodity analysts now forecast a 15 pct rise in iron ore prices compared with an earlier view that prices will be rolled over.
Analysts said iron ore and coking prices are being supported by a surge in world steel production over the past five years, and particularly growth in China's steel output.
Macquarie Bank senior commodities analyst Jim Lennon recently told a group of industry participants in Sydney while growth in China's steel output will slow from a present rate of 27 pct year-on-year, output will still be high.
He expects China's steel output in 2005 to be 345 mln metric tons or 30 pct of the world production of 1.129 bln tons, an increase from 274 tons in 2004.
Lennon expects China's steel output to reach 516 mln tons by 2010, or 37 pct of forecast world demand of 1.389 bln tons.
Meanwhile, China is expected to be a net importer of coking coal in the coming years due to the closure of small and inefficient mines, analysts said.
http://www.forbes.com/markets/feeds/afx/2005/09/30/afx2253067.html
EEGC News, Wow, nice added bonus.
Zeehan Zinc Reports $A1.1 Billion Resource
Friday September 30, 11:23 am ET
LENEXA, Kan.--(BUSINESS WIRE)--Sept. 30, 2005--Empire Energy Corporation International (Empire) (OTCBB:EEGC - News) announced that an independent report commissioned by Zeehan Zinc Ltd (ZZ) has identified a measured, indicated and inferred resource of 6,781,510 metric tons of ore at the old Comstock and Oceana mine sites near Zeehan, Tasmania (Australia).
The ore, which averages 5.1 percent lead, 4.8 percent zinc and 52 grams per metric ton of silver, has a gross, in ground potential value at today's metal prices and U.S. currency exchange rate of more than $A1.1 billion (Australian dollars).
Zeehan Zinc CEO Mr. David Tanner said, "This is an exciting and potentially very valuable deposit for Tasmanian jobs, the economy and the company."
The annual rate of mining and milling is currently approved at 200,000 metric tons, and the gravity separation plant already established on site can handle twice that tonnage. Production of lead and zinc concentrates will require construction of a flotation plant which is currently being designed, together with a tailings disposal facility scheduled for construction this summer, subject to planning and other approvals.
The resource that was estimated in the independent report complied with the Australasian Code for Reporting of Mineral Resources and Ore Reserves 1999 and was completed by a competent person as defined under that code.
Empire (EEGC) recently acquired 37.5 percent of ZZ through a subsidiary and has entered into an agreement that may increase, subject to certain conditions, Empire's shareholding to 100 percent. Malcolm Bendall, CEO of Empire and Chairman of ZZ, said: "This acquisition and valuation is a huge strategic leap ahead for Empire. It is a significant asset that we believe may be capable of being leveraged to meet the objectives and future financial commitments of ZZ, GSLM and Empire."
This press release contained forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," " believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Empire's ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.
--------------------------------------------------------------------------------
Contact:
Empire Energy Corporation International
Malcolm Bendall, 913-469-5615
National Coal Corp. Taps Former Arch Coal SVP Hodak as New COO
Thursday September 29, 4:45 pm ET
Position Created to Support Company Expansion
KNOXVILLE, Tenn.--(BUSINESS WIRE)--Sept. 29, 2005--National Coal Corp. (Nasdaq: NCOC - News), an Appalachian Region coal producer, is pleased to announce its appointment of Kenneth Hodak to the position of Chief Operating Officer, effective Oct. 1, 2005.
Hodak is the first to serve as Chief Operating Officer at National Coal. He will chiefly be responsible for managing strategies to acquire and develop new reserves throughout the region while maximizing the value of the Company's existing production sites in Tennessee and Kentucky.
A coal industry veteran, Hodak comes to National Coal from Arch Coal, Inc. where he was Senior Vice President of Sales. He started at Arch Coal in 1996 as a mine manager and became General Manager of Arch West Virginia in 1999 before being named Senior Vice President of Sales in 2002. Ahead of his employment at Arch Coal he attended The College of Law at West Virginia University, graduating in 1996 and passing the Virginia State bar exam in 1997.
Prior to attending law school, Hodak was in operations management at Ashland Coal, Inc. beginning in 1984; he ascended to mine manager in 1988 and then again to General Manager in 1984, where he served until 1993. Before Ashland Coal he was a mine engineer at Associated Electric Cooperative, Inc. from 1981 to 1984 and at Northern Coal Company from 1979 to 1981.
Hodak's position will be based out of Knoxville, Tenn., and he will report directly to Jon Nix, president, CEO and chairman of the board.
"I believe a critical part of our continued success is going to come from the strong knowledge base our management team offers. Kenneth, undoubtedly, has the kind of industry and management experience we want to keep us on point and focused on our plans for continued growth," explains Nix.
The position of Chief Operating Officer is a new one at National Coal, where Nix explains it was the next step forward in achieving the Company's growth plans, "As we continue to expand our operations into other areas of Tennessee and Kentucky, we are focused on finding and capitalizing on new opportunities for organic growth. The results of our plans have so far been successful and we expect that trend to continue with Kenneth at the helm."
Hodak graduated from Pennsylvania State University in 1979 with dual bachelor's degrees in mining engineering and arts and sciences.
About National Coal Corp.
Headquartered in Knoxville, Tenn., National Coal Corp., through its wholly-owned subsidiary, National Coal Corporation, is engaged in coal mining in Eastern Tennessee and Southeastern Kentucky.
For more information visit www.nationalcoal.com.
Empire Announces 2005 Seismic Program to Further Define Structures Capable of Reservoiring Oil and Gas
Thursday September 29, 1:00 pm ET
LENEXA, Kan.--(BUSINESS WIRE)--Sept. 29, 2005--Empire Energy Corporation International (Empire) (OTCBB:EEGC - News), through its wholly owned subsidiary Great South Land Minerals, Ltd (GSLM), has entered into a seismic services contract with Terrex Seismic headquartered in Perth, Western Australia, to commit additional anticipated expenditure of up to AUD$6.0 million over the next year. During the past year GSLM and Empire have been involved in intensive planning and negotiations for a 1,147 line kilometer regional seismic survey in the Tasmania Basin (TB02) over GSLM's Special Exploration License (SEL) 13/98. Scouting and line positioning work will commence mid-October with seismic recording scheduled to commence mid-January 2006.
ADVERTISEMENT
It is estimated the TBO2 program will cost AUD$5.1 million. Immediately following the TBO2 program, TB03 will commence over GSLM's recently applied for SEL 29/2005 extending the regional survey by up to 150 line kilometers, at an estimated cost of AUD$900,000.
During 2000 and 2001, GSLM expended in excess of AUD$3 million on its first regional seismic survey TB01, with Terrex Seismic completing 660 line kilometers of 2-D seismic covering defined prospect areas within the Tasmania Basin over Central and Northern Tasmania. It is anticipated that the proposed regional survey should bring the total expenditure to meet the license conditions to over AUD$30 million since SEL 13/98 was granted in 1998. As with the previous work program, TB01, the current work program is secured by a registered debenture held over the assets of GSLM.
Empire has plans to further define previously discovered dome structures that seismic amplitude anomalies indicate may have oil and gas potential. The results of the new surveys are expected to identify new target structures with the view of facilitating the company's proposed discovery drilling program for oil and gas over the next four years.
This press release contained forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," " believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and GSLM's ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.
--------------------------------------------------------------------------------
Contact:
Empire Energy Corporation International
Malcolm Bendall, 913-469-5615
--------------------------------------------------------------------------------
Source: Empire Energy Corporation International
johnlw, HLB should be able to sell all they can produce at spot. Alpha resources is building a coal import terminal in the SE US (can't remember where?), as well as another one currently being upgraded to import(can't remember who?) additional thermal coal from South America. The SE US, Florida in particular, has experienced and is still experiencing a huge building boom. Coal suppliers to this region can't keep up with demand from power plants. I spoke with the folks at NCOC a few weeks back. They can sell all the coal they can possibly produce. I would expect HLB to do the same.
Hillsborough Announces Commercial Production Commences From Crossville Underground Mine
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - Hillsborough Resources Limited (TSX:HLB - News) is pleased to announce that that commercial production from the Crossville underground coal mine in eastern Tennessee commenced on September 27th, 2005. The final US Mine Safety and Health Administration (MSHA) approvals for the underground mine were issued, and mining operations commenced immediately thereafter. The Crossville mine will ramp up to a targeted production rate of 600,000 clean short tons per annum, with the full production rate expected to be achieved in 2006. Approximately two thirds of the mine's production is slated for delivery to the Tennessee Valley Authority's Kingston power plant under the terms of a five year coal delivery contract, with the remaining production available for delivery into the regional market under spot or shorter-term contract.
David Slater, President and CEO of Hillsborough, stated "I am very proud of what our team has accomplished today at Crossville. To get this mine into production as quickly as they did, procuring and deploying the necessary mining equipment when such equipment is in as short supply as it is currently, speaks volumes of the dedication and resourcefulness of our people. The support we've received from Crossville and the Cumberland County community, indeed from all levels of government in Tennessee, has been greatly appreciated, and we look forward to the opportunity to make a positive contribution as corporate citizens. I have no doubt that the Crossville Mine will be a great success for Hillsborough, and a stellar example of the benefits mining can bring to a community."
Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine in Campbell River, British Columbia serving the local and west-coast U.S. cement industry, and the Crossville underground coal mine in Tennessee serving the regional power utility and industrial markets. We are also developing substantial metallurgical coal properties near Tumbler Ridge in the Northeast of British Columbia, as well as the Bingay Creek metallurgical coal project in the Elk Valley region of Southeast British Columbia.
"David J. Slater"
President & Chief Executive Officer
This release may contain forward-looking statements regarding the Company's business or financial condition. Actual results could differ materially from those described in this news release as a result of factors including but not limited to the following: adverse exploration or development results; re-assessments of corporate or development objectives and requirements; additional technical developments and considerations; unexpected increases in the costs of producing coal, changes in international coal or transportation markets, a rapid change in the value of the Canadian dollar particularly with respect to the US dollar, a fundamental slow down in the North American, Asian or worldwide economies; and other factors.
--------------------------------------------------------------------------------
Contact:
Hillsborough Resources Limited
David Slater
President & CEO
(604) 684-9288
Fax: (604) 684-3178
http://biz.yahoo.com/ccn/050928/aac22b328a29a234fa8bbb81d1230c5b.html?.v=1
India Tata Steel Sizing Up Australia Coal Mine Buys -Exec
September 20, 2005 09:02 ET
NEW DELHI (Dow Jones)--Tata Steel Ltd. (500470.BY) is looking to acquire coal mines in Australia to boost its fuel reserves, the company's Managing Director B. Muthuraman said Tuesday.
"We are looking at a couple of mines in Australia," he told reporters, adding that details haven't been finalized.
"We want to secure (better) coal reserves," he said.
SAIL, BHP to buy Australian coking coal mine
Varun Sood / New Delhi September 23, 2005
Steel Authority of India Ltd (SAIL) and BHP Billiton are close to acquiring a coking coal mine in Australia. “Our alliance partner BHP Billiton has indicated two-three coal fields in Australia, and we are in the final phases of negotiations,” said V S Jain, chairman, SAIL. He, however, declined to give more details of the coal linkages.
Late last year, SAIL had signed a memorandum of understanding with BHP Billiton to form an alliance for jointly developing coking coal mines.
“Currently, we source a large portion of our coking coal requirements from BHP, and this development will ensure that our coal requirements are met in the long term,” Jain said.
SAIL has chalked out plans to increase its production capacity of steel to 20 million tonne by 2011-12 from the present 13 million tonne.
“This would progressively require an assured supply of superior quality coking coal, which is not abundant in our country,” said SAIL chairman.
At present, SAIL needs about 20 million tonne coking coal, of which it imports nearly 9.5 million tonne. By 2011-12, the company would require 36 million tonne coking coal.
Indian coking coal, apart from being high in ash content, is considered to be of inferior quality.
“It needs blending with a better grade of imported coking coal to meet the technological requirement for producing steel economically,” said a SAIL executive.
Assured supply on a long-term basis becomes even more pertinent as the company is able to achieve an overall price reduction of 18-20 per cent.
“Also, it helps in difficult times like last year, when on account of price volatility in coking coal the prices jumped sharply to $125 a tonne from $60 a tonne, and supply, too, became irregular,” said the executive.
http://www.business-standard.com/common/storypage.php?storyflag=y&leftnm=lmnu1&leftindx=1&am...
The last email I received from Sennen on 7/28/05 was a reply to my email inquiring if DJB Coal Pty Ltd was actively working the properties.
Here's a quote, "Hopefully this process won't continue on forever! Yes, they are working on the properties as there is on going dialogue and of course they also have incentive. No one is looking more forward to progress in the arena than we are!"
Ian Rozier, CEO, has been buying shares in the open market.
http://www.canadianinsider.com/servlet/coReport/AllTransactionsServlet
Hoping this is a last shake in share price before news, similiar to CHX.
China May Invest A$10 Billion in Australian Mines (Update1)
Sept. 22 (Bloomberg) -- Chinese metals companies such as Beijing Shougang Co. are in talks to spend as much as A$10 billion ($8 billion) on Australian mines to make sure China's mills don't run out of raw materials.
The planned acquisitions could increase China's total investment in Australian projects six-fold within three to five years, said Henry Wang, senior investment commissioner for Greater China at government agency Invest Australia.
Commodity prices have risen to all-time highs because global mining companies such as BHP Billiton can't keep up with China's demand for materials to feed mills, building sites and car plants. As competition for minerals increases, steelmakers and traders including Beijing Shougang and Sinosteel Corp. are going to the source to ensure they have enough iron ore and coal.
Overseas investment ``is a necessary and natural step for Chinese metal producers because the country is short of natural resources,'' said Lin Hai, who helps manage the equivalent of $1.8 billion for Guotai Asset Management Co., including shares in Baoshan Iron & Steel Co. ``With these investments they can lower costs and take pre-emptive rights on the raw materials.''
Half of the proposed Chinese investments are in iron ore, 30 percent in coal and the rest in natural gas and other metals, said Wang, who runs four of the agency's 12 overseas offices. Australia, the world's biggest coal and iron ore supplier, had garnered A$1.6 billion of investment from China by the end of 2004, according to Wang.
Steady Supply
Beijing Shougang, the publicly traded unit of China's fourth-biggest steelmaker, will pay A$120 million for a 50 percent stake in Mt. Gibson Iron Ltd.'s A$722 million iron ore project in Western Australia, subject to a feasibility study, Mt. Gibson Finance Director Alan Rule said by phone from Perth.
``We definitely need to invest in overseas iron ore projects so we can secure a steady raw material supply for our plants,'' Liu Anshan, a spokeswoman at Shougang Group's mining resources unit, said in Beijing.
In 2001, Baosteel invested $30 million in the Eastern Ranges iron ore mine in Western Australia, partnering Rio Tinto.
China wants ``to control the supply chain,'' said Wang at a conference organized by London-based Metal Events Ltd. on Sept. 16. ``There's an urgency for them to get into long-term contracts or be involved in directly investing.''
Competition
Australian exports of minerals and energy rose to a record A$67.4 billion in the year ended June 30, boosting the local dollar by 9 percent in a year. Commodities account for 60 percent of the country's export earnings.
Chinese companies are competing for Australia's resources with rivals such as South Korean steelmaker Posco, Japan's Nippon Steel Corp. and Mitsubishi Corp., which already own stakes in Australian mines.
Indian companies are also hunting for assets. Coal India Ltd., which produces 87 percent of the nation's supply, is looking for stakes in Australian mines and plans this year to meet with officials from Queensland state.
Chinese companies are in talks to participate in all eight new iron ore projects being developed in Western Australia, Wang said. Fortescue Metals Group said this month it held talks with investors, including steel trader Sinosteel, which in June signed a joint development with Perth-based MidWest Corp.
``Of the total iron ore that China imports, China has some kind of involvement in the supplier in 25 percent of them,'' Wang said. ``The Chinese industry wants to increase that to 50 percent.''
Uranium Talks
Iron-ore contract prices charged by BHP Billiton, Rio Tinto and Cia. Vale do Rio Doce, which account for more than three quarters of global ore trade, jumped 71.5 percent from April 1.
Chinese companies are also ``very interested in getting involved in the mining of uranium,'' Wang said. These include ``state-owned enterprises involved in nuclear-power generation,'' he said, declining to identify them.
China National Nuclear Corp., the country's largest builder of uranium-fueled power plants, said in June the country plans to invest 400 billion yuan ($50 billion) in nuclear power from 2005 to 2020.
Australia, which has the world's biggest uranium reserves, last month started talks to export the fuel to China. China plans to boost nuclear energy fourfold by 2020.
Chinese companies may have an advantage in competition for Australian mineral assets ``simply because they're not only able to inject money, they can also secure the market,'' Wang said.
Bauxite Battle
Aluminum Corp. of China, known as Chalco, may be competing with companies from countries including Brazil, Russia, Canada and India for the Aurukun bauxite deposit in Queensland state. Bauxite is refined into alumina for smelting into aluminum metal.
Chalco is one of the companies that have expressed a strong interested in Aurukun, according to the Queensland government.
Other companies interested in developing Aurukun are Alcan Inc., BHP Billiton, Rio Tinto Group, Cia. Vale do Rio Doce, Hindalco Industries Ltd., Hydro Aluminium AS, Mitsubishi Corp., OAO Russian Aluminium and Xstrata Plc, Queensland Premier Peter Beattie said on Sept. 15.
Aurukun holds more than 650 million tons of bauxite. The deposits were previously held by Pechiney SA, which was acquired by Montreal-based Alcan in December 2003. The Queensland government revoked the lease after Pechiney didn't build a plant to refine the bauxite.
Coal India eyes Australian mines
Thursday, 22 September , 2005, 14:36
Sydney: The country's largest coal producer Coal India Ltd (CIL), is in talks with Australia's mining giant BHP Billiton to buy stakes down under to ensure supplies in the future.
The state-owned CIL, which produces 87 per cent of the Indian coal, is also reported to be holding talks with other Australian coal miners for the same purpose.
The Chief General Manager of CIL unit, Coal Videsh, N Prasad, who is on tour to Australia, has said here that he would meet officials from Queensland to explore the chances of securing mining stakes in Australia's largest coal producing state.
"Coal India is planning to have stakes in mines producing coal and the preferred country would be Australia," he was quoted by Australian Financial Review as saying.
"We're in discussions with many companies, including BHP Billiton," he added.
If Coal India manages to secure a foothold in the Australian coal mining, it would be third Indian company to do so. Gujarat NRE is leading the pack by signing three such deals with Australian coal mining companies.
The latest of these deals was signed earlier this month.
Tata Steel Ltd, the country's second-biggest steelmaker, is also looking for a favourable deal with one of Australia's coal producers. Tata Steel has huge requirement for coal as it is the country's second largest steel manufacturer.
Tata Steel and CIL would have to vie with the Chinese coal consumers who are also looking for the right deals in Australia.
Close on the heels of the news about CIL's ambitions to source coal from its own mines in Australia, there are reports that Chinese metal companies are also planning to spend a whopping 10 billion Australian dollars to ensure coal supplies to the mills of world's largest coal consumer.
Chinese companies already have substantial investments in the Australian mining industry. Before Indians' appearance on the Australian resources scene, the Chinese metal giants were competing for the country's resources with other Asian rivals like South Korea and Japan. The South Korean steelmaker Posco, Japan's Nippon Steel Corp, and Mitsubishi Corp, have stakes in mines down under.
http://sify.com/finance/fullstory.php?id=13945909
Palladon... Expecting an update on the Iron property resource as well. Additional iron ore contracts currently in negotiations, news could be released at any time. First ore to be shipped by Nov. 15.
Volume increasing the last 10 days or so, hopefully it's the volume that precedes a price move.
India Cutting Iron Ore Exports
I've been following this for a while. It started when China cut coking coal exports to India. Looking for Iron ore prices to rise next year.
Govt may cut iron ore export to feed local firms
http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-09-03T001158Z_0...
Mittals are welcome but iron ore exports not allowed: Munda
http://www.hindustantimes.com/news/181_1487110,0002.htm
Essar warns against doling out huge ore to foreign steel cos
http://economictimes.indiatimes.com/articleshow/1219139.cms
SN.V, The following link is a map of SE Queensland and the Surat Coal Basin, with Sennen's Ownaview and Collingwood coal deposits clearly marked. Might want a copy before reading the article.
http://www.nrm.qld.gov.au/mines/coal/pdf/seq_coal.pdf
Barclay to build Surat-Gladstone rail line
Friday, August 12, 2005
James Bowen
ENGINEERING contractor Barclay Mowlem has signed on to assist the Australian Transport & Energy Corridor (ATEC) in building the 220km Dawson Valley Railway, which will link the Surat Coal Basin and the port of Gladstone in Queensland.
ATEC is a long-standing advocate of the Australian Inland Railway Expressway, while Barclay designed and constructed the Alice Springs-Darwin Railway in a joint venture.
Barclay will work with ATEC during the next six months to complete a detailed business case for the Dawson Valley project, which is expected to cost $A775 million to complete.
ATEC will be responsible for work on contractual relationships with coal mines, rural producers, land owners and governments, while Barclay will concentrate on engineering plans, construction costs, environmental issues and financial arrangements.
ATEC chairman Everald Compton said his company invited Barclay to join the project due to its track record in delivering the Alice Springs-Darwin Railway ahead of time and within budget, despite difficult conditions.
"Barclay Mowlem's experience and expertise, both domestically and internationally, will ensure the Dawson Valley Railway is built on schedule ready for use by 2009 when the Wiggins Island Coal Terminal will be opened in Gladstone," Compton said.
The railway will service existing coal mines at Acland and Wilkie Creek, as well as new mines at Cameby Downs, Wandoan, Elimatta and Taroom.
ATEC is negotiating with Queensland Rail and the Australian Rail Track Corporation to upgrade existing tracks from Toowoomba to Wandoan, and Banana to Gladstone, to handle trains capable of moving 10,000 tonnes of coal on each trip to Gladstone.
This new railway will be dual gauge to form part of a national rail system linking Melbourne and Gladstone via Parkes and Toowoomba. It will also fill the missing rail link between Wandoan, north of Miles, and Banana, between Moura and Gladstone.
Barclay general manager of rail Bill Killinger said the Dawson Valley Railway was a pioneering venture that had the potential to create a national rail system through inland Australia and expedite the development of the nation's resource industries.
http://www.longwalls.com/StoryView.asp?StoryID=44157
Coking coal price to jump: CSB
Tuesday, August 09, 2005
Angie Bahr
CHINA'S coking coal imports will double in 2006 and prices will jump $US10 per ton, according to the latest forecast from Citigroup Smith Barney (CSB).
In its seminar "Feeding the dragon" on China's steel industry and its potential impact on raw materials, 2006 and beyond, CSB remained positive on the future of coking coal into China.
"Despite the collapse in Asia's spot iron ore market, declines in steel prices, and global steel production cuts, we maintain a positive short- to medium-term outlook for China's economy, its domestic steel demand and its demand for raw materials," CSB said.
It forecasted in 2005 China's 800-mill steel industry would import 15 million tons of coking coal, and predicted 2006 imports would double 2004 levels.
"China's share of the global coking/metallurgical coal market is relatively small, but its coking coal demand is being increasingly met by imports. China's new net importer status reflects sharp growth in steel output: local supplies cannot fully meet demand," it said.
After a $US70/t increase in hard coking for 2005, CSB predicted another $10/t lift for 2006, then rollover for 2007.
http://www.longwalls.com/storyview.asp?storyid=43874§ionsource=s0
Sennen Resources, Interesting coincidence?
"E&Y became aware that Middlemount was available for purchase and through this process approached their bidder regarding their interest in Middlemount. "
http://www.sennenresources.com/s/NewsReleases.asp
Floors 4-6, 9, 15
http://www.waterfrontpl.com.au/page.jsp?pid=8&disp=level
Coincidence?
http://www.mitsui.com.au/index1.cfm?category=277
Just the one contract should be worth $53-60 million usd. Negotiations on others ongoing. My guess, is a margin of $10-$20 a tonne. I've asked the company for a rough estimate on annual production capacity, they wouldn't give me a figure. Oh well, I tried..
National Coal Corp. Acquires Baldwin Facility
Tuesday August 2, 6:42 pm ET
KNOXVILLE, Tenn.--(BUSINESS WIRE)--Aug. 2, 2005--National Coal Corp. (Nasdaq: NCOC - News), an Appalachian Region coal producer, today announced the acquisition by its wholly-owned subsidiary, National Coal Corporation, of one permitted mine, a preparation plant, haul road and other miscellaneous assets (the "Baldwin Facility") located within the boundaries of the Company's coal reserves in Devonia, Tennessee. National Coal Corp. previously leased a portion of these facilities.
The acquisition of the Baldwin Facility will allow the Company to undertake improvements designed to increase production capacity and improve utilization of resources in its Tennessee operations. The acquisition follows steady production increases reported in Q4 2004 and Q1 2005 and the addition of two significant sales contracts in Q1 2005, and should enable the Company to meet the increasing demand for coal from its existing and potential customers.
"It is another step forward - one that's going to help us continue escalating our consistent track record of growth," stated Jon Nix, president, CEO and chairman of the board at National Coal. "To that end, the most significant part of this acquisition is the Baldwin preparation plant and loadout facility, which is ideally located near a large portion of our reserves and provides the opportunity to significantly grow our production in Tennessee."
National Coal acquired the Baldwin Facility by assuming current liabilities of the seller consisting of outstanding reclamation bond obligations of approximately $1,000,000.
About National Coal Corp.
Headquartered in Knoxville, Tenn., National Coal Corp., through its wholly-owned subsidiary, National Coal Corporation, is engaged in coal mining in Eastern Tennessee and Southeastern Kentucky. For more information visit www.nationalcoal.com.
This release contains statements that are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current estimates and projections about National Coal's business, which are derived in part on assumptions of its management, and are not guarantees of future performance, as such performance is difficult to predict. Examples of forward looking-statements include the increase in coal production resulting from the acquired property, the increase in the demand for coal, and continued escalation of quarterly revenue growth. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements due to numerous factors. Such factors include, but are not limited to, National Coal's ability to rapidly and efficiently integrate the acquired operations into its existing operations, the demand for coal, the price of coal, the supply of coal and other competitive factors, the costs to mine and transport coal, the ability to obtain new mining permits, the costs of reclamation of previously mined properties, and the risks of expanding coal production. These and other risks are more fully described in the Company's filings with the Securities and Exchange Commission including the company's most recently filed Annual Report on Form 10-KSB and Quarterly Reports on Form 10-QSB, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements.
Contact:
National Coal Corp., Knoxville
Rob Pardue, 865-690-6900
rpardue@nationalcoal.com
www.nationalcoal.com
or
Cunningham & Company
Christine Pietryla, 312-334-9037
cpietryla@cunninghamcomp.com
http://biz.yahoo.com/bw/050802/26080.html?.v=1
Palladon Ventures Ltd. Announces Contract to Sell One Million Metric Tons of Iron Ore
Tuesday August 2, 5:51 pm ET
BROOMFIELD, Colo.--(BUSINESS WIRE)--Aug. 2, 2005--Palladon Ventures Ltd. (TSX VENTURE:PLL - News; the "Company") announced that it has entered into a contract to sell one million metric tons of iron ore over the twelve month period commencing September, 2005 to a Chinese purchaser. Ore will be mined, crushed and magnetically treated from the Comstock/Mountain Lion Iron Project in Utah, transported by rail over the Union Pacific railroad running adjacent to the mine, and loaded on the customer's ships at the port in Richmond, California for shipment to Chinese ports. Palladon is making final arrangements with its mining contractor, Gilbert Engineering, to commence mining and treatment of ores in August, and with the railroad and port, to commence shipment as soon as possible thereafter.
The contract provides for standard commercial terms including the posting of a letter of credit by the customer, and pricing is in line with the current strong market for iron ores in China. Specific pricing terms of the contract have not been disclosed at this time, pending additional negotiations on other supply contracts being discussed. Based on mining and treatment costs and the quoted costs for shipping and handling, Palladon expects to generate substantial cash flow from the contract.
Palladon President George Young said, "The sales contract represents a significant step for the Company. Revenues from this contract will help strengthen our balance sheet, and in turn will enable us to advance with feasibility work on the iron project in evaluating other avenues of development. We will also be better enabled to continue with our exploration and development work at the Western Utah Copper District and on our gold projects in Nevada and Argentina."
ON BEHALF OF THE BOARD OF DIRECTORS OF PALLADON VENTURES LTD.
George S. Young, President, Director
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of the contents hereof.
Palladon Ventures Ltd. (TSX VENTURE:PLL - News)
Contact:
Palladon Ventures Ltd.
Hamish Greig
Corporate Communications
(604) 484-7088
Fax: (604) 484-7044
info@palladonventures.com
www.palladonventures.com
http://biz.yahoo.com/bw/050802/26042.html?.v=1
Palladon Ventures, Read the whole article, I think someone spilled the beans to the local newspaper. Iron ore is going to China, starting as soon as 6 weeks.
CEDAR CITY - Palladon Ventures Ltd. announced last Thursday it selected Gilbert Development Corp. of Cedar City to mine the reserves at the Comstock Iron Mine west of the city under contract to its subsidiary, Palladon Iron Corp.
Russ Fotheringham, director of development for Palladon, said Gilbert Development is getting ready to mine the iron ore as part of the project's first phase.
The first phase constitutes selling the ore directly to create a cash flow for the other two phases of development - building a plant to process the ore into steel and selling steel products.
Fotheringham said all the overburden has been removed and Gilbert will start ore extraction at the lower benches of the mine.
Gilbert Development contracted under U.S. Steel Corp. and Geneva Steel in the 1980s and 1990s and has extensive experience with the mine and process to remove the ore, according to a July 14 Palladon press release.
"We'll be going out there and doing our thing like we did before and hopefully turning that effort into good financial gain for Cedar City as far as employment and economic development," said Steve Gilbert, CEO and president of Gilbert Development. "You know they have big plans, which includes us building a $30 (million) to $40 million magnetic concentrating plant that is in design and in process."
Gilbert said he became involved with Palladon merely three weeks ago after the company put the contract out to bid to approximately 12 of the largest mining contractors in the United States. Not all chose to bid.
However, upon receiving an email from a Cedar City resident about Gilbert, who was not asked to bid for the contract, Palladon contacted the local company and eventually awarded the bid.
"They told us we were the answer to their prayers because we know everything they are in need of from our previous experience working the Comstock," Gilbert said. "No one else is as familiar as we are when it comes to issues of weather, freezing and ground waters and how you work with them because it's pretty hard to mine wet material. We've been out there forever and can honestly say that we've been there and done that."
Fotheringham said Palladon is working with Union Pacific to secure railroad cars. The cars will be needed at the mine to transport the ore to Richmond, Calif., where it all will be shipped to China.
The goal is not to continue to ship overseas, however, Fotheringham said. The company will ship to China for three years because there is a voracious need for iron ore there.
Palladon plans to move to phase two of the project by the end of three years.
For now, Gilbert Development is setting up equipment to mine and stockpile the ore.
Gilbert said the ore may begin to roll out as soon as six weeks.
Fotheringham said Gilbert Development will use crushing and magnetic separation to get the ore, then the ore will be loaded into the rail cars.
The end goal is beneficiation, or the method of concentrating, the ore to 65 percent iron, Fotheringham said.
"Currently, most people are buying iron ore minimally between 63 (percent) to 65 percent iron," said Don Foot, vice president of Palladon Iron Corp. "We need to produce a product in that range, and because we have a magnetite iron, we have the ability to produce a fairly good grade as we drive the impurities out of the ore by grinding it and using magnetic separation."
Part of the reason Palladon chose the project in Iron County is because of its rich iron stores.
"The quality of the iron in the mine is such that it is upgraded very easily and has a very good concentrated grade by just grinding it and using magnetic separation. The higher the grade, the better, for two reasons: it does give you a premium on price, and two, yields less material to ship," Foot said.
The company has reached its goal of getting into phase one by the end of the year, although Fotheringham said during a public meeting on April 26 that the company would complete a feasibility study first.
Fotheringham said the company is holding off on a feasibility study until after the project yields a cash flow. The study will look at the steel processing plant of the project's second phase.
Foot said having a pig iron and steel plant - estimated at $680 million - will be a great supplier for the western United States since the closest steel plant to the West Coast is in Chicago.
"It's a huge investment and that's why we're doing it in stages. It will be a few years away but eventually bring numerous jobs to Cedar City," Foot said. "We love the idea of having one of the best mining corporations that is local to keep work in the local community, and we intend to make every effort to do that."
Fotheringham said on April 26 the company estimates that about 400 jobs will be created as a direct result of the mining operation, with about 1,200 indirect jobs.
Gilbert said he has 100 employees working on the project.
Palladon purchased the property April 14 because it believes the reserve provides an excellent opportunity.
Fotheringham said the company estimates there are enough iron ore assets to last a minimum of 40 years; it's the largest deposit in the west with the highest concentration of iron in the United States.
Originally published July 24, 2005
http://www.thespectrum.com/apps/pbcs.dll/article?AID=/20050724/NEWS01/507240337&SearchID=7321587...