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Billiton subsidiary to cut coal production
Billiton subsidiary, Ingwe Coal, is to shed up to 2000 jobs and cut coal production by 2.2m tons per annum (3% of total output) in response to the continued drop in coal prices. Annual costs are expected to drop by R400m through a rationalisation programme at its Douglas and Koornfontein collieries.
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Billiton to acquire 70% of Grove Aluminium Ltd
Billiton Aluminium Australia Ltd has, subject to conditions, entered into a heads of agreement with CSR Ltd for the purchase of 70% of Grove Aluminium Ltd (GAL). The remaining 30% of GAL is owned by AMP Ltd who will also be provided with a proposal on similar terms as those offered to CSR. GAL comprises a bauxite mine and aluminium refinery situated in the Northern Territory , Australia which currently exports more than 2MTPA of bauxite.
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Billiton gets nickel report
Australian mining company Comet Resources submitted a final report on its Ravensthorpe nickel project to Billiton, as required by the Comet-QNI joint-venture agreement. In its final assessment, Comet said the nickel/cobalt hydroxide produced at Ravensthorpe is suitable for refining at QNI's Yabulu refinery in Queensland.
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Billiton/Codelco form joint venture
Billiton plc, through its wholly-owned subsidiary Billiton Base Metal Ventures, and Corporation Nacional Del Cobre De Chile (Codelco) have agreed to the formation of a 50/50 joint venture company to exploit commercially copper bioleaching technology on a global basis. The first project to be investigated will be the Mansa Mina prospect - a Codelco resource adjacent to the Chuquicamata mine in Chile. The investigation of Mansa Mina to date has included sampling, floatation and bioleaching pilot plant trials. The next stage of the evaluation will comprise the construction of a prototype bioleach facility, with an output of approximately 20 000 tonnes per annum, to asses the commercial application of the technology.
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Billiton/Aurora deal
Billiton plc subsidiary, Billiton UK Resources has signed a Letter of Intent with Aurora Gold Corporation regarding Aurora's Hammala property in Tunisia. The area is considered highly prospective for the discovery of large scale, high-grade zinc. According to the agreement:
- Billiton will place an initial US$600 000, at a unit price of US$0,70. Each unit comprises a common share and a purchase warrant, exercisable for a period of one year at US$0.85. US$475 000 of the US$600 000will be used by Aurora for further exploration;
- after the initial placing is spent, Billiton can take a first option, where it can earn a 51% interest in the Hammala property by spending US$1m over two years;
- in the joint venture phase, following the two-year period, the companies will fund pro rata expenditure of an additional US$2m on exploration at Hammala;
- prior to the end of the jv phase, Billiton can elect to exercise a second option to earn a further 19%, by providing financing for all further work including feasibility studies, engineering, mine development and construction through to commercial production. Aurora's pro rata share (30%) of these costs will be repaid from its cash flow.
Aurora will be the initial project operator and will also undertake regional geological investigations in the country.
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