Mining Development Co.

Ducheng, China

Mining Development Co.

Ducheng, China
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News Article | May 19, 2017
Site: www.engineeringnews.co.za

JOHANNESBURG (miningweekly.com) – The share price of mining investment fund Pallinghurst leapt in Johannesburg after the company outlined its plans to swop its investment fund shawl for a diversified miner’s mantle, unlock value through full absorption of its coloured gemstone associate and target a possible listing of the enlarged but greatly simplified Pallinghurst on the main board of the London Stock Exchange, without any change to its primary JSE listing. “We’re converting Pallinghurst into a diversified, ever-green company and we’re taking the assets of Gemfields in-house,” Pallinghurst CEO Arne Frandsen explained to Creamer Media’s Mining Weekly Online in an interview, which took place as the company’s share price leapt 5.43% to 350c a share. The key step involves buying out the minorities of coloured gemstone producer Gemfields for $150-million worth of Pallinghurst shares – and delisting Gemfields from the London Aim. “Pallinghurst has been a long-term and supportive investor in Gemfields, but the current structure has proven unattractive for both Pallinghurst and Gemfields. “The offer is a logical next step in consolidating and simplifying the group structure. This will position the enlarged company well to pursue Gemfields’s vision of global leadership in coloured gemstones, to the benefit of all shareholders,” Pallinghurst chairperson Brian Gilbertson said in a release. Following the offer, Pallinghurst sees the enlarged group as having a larger market capitalisation, an enhanced free float, improved market coverage and an expected liquidity boost. The offer is due to close in the third quarter of this year. Pallinghurst believes that the integration of Gemfields will enable it to perform to full potential, materially improve trading liquidity and promote a re-rating of the enlarged group. Because of Gemfields' depressed profitability and restricted access to third-party capital over the past few years, Pallinghurst has had to provide Gemfields with debt facilities. Gemfields said in response that its independent board had noted Pallinghurst’s unsolicited offer for the entire issued share capital not already held by it and was reviewing the offer with its advisers. It “strongly” advised shareholders to take no action and to await further announcements. The coloured gemstone mining and marketing company then went on to reveal the results of is latest auction of rough emerald extracted from Kagem, which is 75% Gemfields-owned and 25% Zambia government-owned. The emerald auction, it said, had raised $14.5-million at an average price of $4.68/ct, which was the second highest average price achieved at a commercial quality emerald auction. All carats offered were sold, a first for a commercial quality Kagem emerald auction. Twenty five Kagem auctions held since July 2009 have generated $473.5-million in total revenues. With irrevocable 75%-plus shareholder backing, delisting takes a mere 20 business days of the Aim’s receipt of a delisting request letter. “We already have irrevocable undertakings from more than 75% of the shareholding, so the transaction, for all practical purposes, is a fait accompli,” Frandsen commented to Mining Weekly Online. Gemfields shares responded by rising 3% to 5% on the Aim. Founded in September 2007 as a limited-life mining investment fund to source and develop new value-accretive mining projects, Pallinghurst sees itself as having achieved that phase through the development of: • Gemfields, which has the world’s biggest emerald mine at Kagem, in Zambia, and the world’s biggest ruby mine, at Montepuez, in Mozambique; • manganese producer Tshipi, which operates at low cost in South Africa’s Northern Cape province; and • opencast platinum group metals (PGM) operation Sedibelo in South Africa’s North West province, which is implementing the impressive cost-slashing, time-saving, mine-broadening, pollution-removing and cobalt-preserving Kell technology that has all the hallmarks of being transformational for the entire PGM industry. Pallinghurst created Gemfields by giving the company custodianship of Kagem in exchange for shares in Gemfields. Then in 2012, Pallinghurst exchanged the custodianship of the famous jewelled egg company Fabergé  for more Gemfields shares. But the Gemfields share price has failed to respond. When Pallinghurst put Kagem into Gemfields eight years ago, the share price of Gemfields was around 40p a share; yesterday it was 38p a share. The low Gemfields share price presents a major problem for Pallinghurst, as half of its net asset value is represented by its Gemfields shareholding. Failure of Gemfields’ share price to rise results in the failure of the Pallinghurst share price to reflect value. With the delisting of Gemfields, shareholders will have one entry point through Pallinghurst. “It’s much better to take 100% of Gemfields and let Gemfields’ minority shareholders benefit from a company that has been unshackled and where management can focus on the operations,” said Frandsen. While the primary JSE listing will remain intact, Pallinghurst’s Bermuda listing is earmarked for migration to the LSE. “Johannesburg is our primary listing and I don’t see that changing. We like Africa. We’ve already got four mines in Africa, and we see many exciting prospects in Africa. We’ve moved into Zimbabwe with Kell and we’re also looking at Ethiopia,” Frandsen told Mining Weekly Online. Not only will construction of a new Kell concentrate-to-refined metals plant begin in South Africa this year at Pallinghurst’s Sedibelo platinum mine, but a far-reaching agreement has been struck for up to five Kell plants to be built in neighbouring Zimbabwe, where it has been agreed that over time all the platinum concentrate produced in that country will be Kell processed. As the plants will be 51% Zimbabwe-owned, Zimbabwean indigenisation requirements will be fulfilled for the platinum mines passing concentrate through the Kell plants in Zimbabwe and no longer sending concentrate out of the country. The lack of power capacity in Zimbabwe and high cost of establishing smelters and refineries is taken care of by Kell, which uses less than a fifth of the power required for smelting and refines the PGMs as part of the process at a tenth of the conventional cost. It will also mean that South Africa-linked platinum mining companies operating in Zimbabwe will no longer be faced with the upcoming 15% duty on all concentrate leaving the country. When Pallinghurst’s Sedibelo company was launched in 2012, Mining Weekly Online witnessed Gilbertson, Frandsen, Kell developer Keith Liddell, IDC CEO Geoffrey Qhena and IDC mining executive Abel Malinga commit to the development of Kell, to ensure the local beneficiation of South Africa’s PGMs could be done in South Africa competitively. Now, five years later, Kell is making it possible for local beneficiation to take place super competitively, not only in South Africa, but also in neighbouring Zimbabwe, the world’s second major platinum area. Kell also opens the way for lowest-cost local manufacture of PGM-using autocatalytic converters and platinum-using fuel cells, if not in South Africa then in Zimbabwe. Kell reduces mining-to-refining time to a week instead of a month-plus, uses less than a fifth of the electricity needed for smelting, replaces a smelting plant that costs $1-billion with a modular hydrometallurgical plant that costs $100-million, widens mining scope by throwing chrome-ore content caution to the wind, adds tens of millions of dollars to the revenue stream by recovering the cobalt metal that smelting obliterates and eliminates all pungent and toxic sulphur dioxide that smelting emits. “It’s green, it’s right and it’s here in South Africa,” is how Frandsen sees it. By removing the chrome constraint, mining can be optimised, particular in the case of upper group two reef concentrators, which is worth between 5% and 10% additional recovery. Recovery of currently burnt cobalt would add $50-million to $60-million to the revenue stream of South African platinum mining companies and $15-million to $20-million in Zimbabwe. Zimbabwe’s Cabinet approved the proposal to establish a Kell technology PGM refinery in Zimbabwe in March and a memorandum of agreement was signed this week between the Pallinghurst- and IDC-owned Kelltech and the Zimbabwe Mining Development Corporation. The obligations of the Ministry, under Mines and Mining Development Minister Walter Chidhakwa, is to provide adequate concentrate feedstock to ensure full capacity utilisation of the Kell technology PGMs refinery. The government of Zimbabwe has thus guaranteed that Kelltech will receive all the concentrate it needs as feedstock to meet the capacity of up to five Kell plants. After the restructuring has taken place, Pallinghurst envisages the emergence of a renewed company, with a simplified operating model and an in-house management team of made up of its current executive base. It believes that the value of the underlying assets will be more clearly demonstrable with clearer earnings and operating metrics that can be benchmarked against industry peers. On completion of the offer, Pallinghurst expects to have an enlarged market capitalisation, improved trading liquidity and equity broker coverage, leading to value accretion for all shareholders. Said Frandsen: “We’re turning Pallinghurst into a normal diversified mining company with operating assets and a focus on cash generation," bringing to an end the company’s ten-year stint as a mining investment fund.


News Article | May 18, 2017
Site: www.engineeringnews.co.za

JOHANNESBURG (miningweekly.com) – The new cost-slashing, time-saving, capital-unlocking, mine-broadening and cobalt-saving platinum technology, driven by diversified mining company Pallinghurst and South Africa’s State-owned Industrial Development Corporation (IDC), is gaining impressive international momentum as an initiative that is transformational for an entire industry. Not only will construction of a new Kell concentrate-to-refined metals plant begin in South Africa this year at Pallinghurst’s Sedibelo platinum mine in North West province, but a far-reaching agreement was struck this week for up to five Kell plants to be built in neighbouring Zimbabwe, where it has been agreed that over time all the platinum concentrate produced in Zimbabwe will be Kell processed. As the plants will be 51% Zimbabwe-owned, Zimbabwean indigenisation requirements will be fulfilled for the platinum mines passing concentrate through the Kell plants in Zimbabwe and no longer sending concentrate out of the country. The lack of power capacity in Zimbabwe and high cost of establishing smelters and refineries is taken care of by Kell, which uses less than a fifth of the power required for smelting and refines the platinum group metals (PGMs) as part of the process. It will also mean that South Africa-linked platinum-mining companies operating in Zimbabwe will no longer be faced with the upcoming 15% duty on all concentrate leaving the country. When Pallinghurst’s Sedibelo company was launched in 2012, Mining Weekly Online witnessed Pallinghurst chairperson Brian Gilbertson, Pallinghurst CEO Arne Frandsen, Kell developer Keith Liddell, IDC CEO Geoffrey Qhena and IDC mining executive Abel Malinga commit to the development of Kell, to ensure the local beneficiation of South Africa’s PGMs could be done in South Africa competitively. Now, five years later, Kell is making it possible for local beneficiation to take place super competitively, not only in South Africa, but also in neighbouring Zimbabwe, the world’s second major platinum destination. Kell also opens the way for lowest-cost local manufacture of PGM-using autocatalytic converters and platinum-using fuel cells, if not in South Africa then in Zimbabwe. Kell reduces mining-to-refining time to a week instead of a month plus, uses less than a fifth of the electricity needed for smelting, replaces a smelting plant that costs $1-billion with a modular hydrometallurgical plant that costs $100-million, widens mining scope by throwing chrome-ore content caution to the wind, adds tens of millions of dollars to the revenue stream by recovering the cobalt metal that smelting obliterates and eliminates all pungent and toxic sulphur dioxide (SO ) emissions that smelting causes. “It’s green, it’s right and it’s here in South Africa,” Frandsen enthused to Creamer Media’s Mining Weekly Online in an interview. By removing the chrome constraint, mining can be optimised, particular in the case of upper group two (UG2) reef concentrators, which is worth between 5% and 10% additional recovery. Recovery of currently burnt cobalt would add $50-million to $60-million to the revenue stream of South African platinum mining companies and $15-million to $20-million in Zimbabwe. Zimbabwe’s Cabinet approved the proposal to establish a Kell technology PGM refinery in Zimbabwe in March and a memorandum of agreement was signed this week between the Pallinghurst- and IDC-owned Kelltech and the Zimbabwe Mining Development Corporation (ZMDC). The obligations of the Ministry, under Mines and Mining Development Minister Walter Chidhakwa, is to provide adequate concentrate feedstock to ensure full capacity utilisation of the Kell technology PGMs refinery. The government of Zimbabwe has thus guaranteed that Kelltech will receive all the concentrate it needs as feedstock to meet the capacity of up to five Kell plants. Zimbabwe is mimicking South Africa’s legislation, which lays down that the concentrates have to be processed in South Africa and, more specifically, if a Kell plant is designed with a capacity of, say, 200 000 t a year a year, that volume of concentrate must be passed through that plant. The memorandum of understanding lays down that Kelltech will beneficiate all of the PGMs produced in Zimbabwe within five years. Pallinghurst has promised that it will break ground this year in Zimbabwe and also at Sedibelo in South Africa and construction will be taking place north and south of the Limpopo, slightly staggered so that crew can move from the one site to the other. Being modular, additional plant capacity can be phased in, allowing capital to be spent over an extended period of time instead of all at once. The elements used by the Kell plants are available off-the-shelf, with the intellectual property residing in their configuration. A Kell plant can be put together in a year and be commissioned in 18 months. “It’s quicker, requires much less capital, is far cheaper to operate and doesn’t pollute. It has all the great attributes, but whenever you come with something new, everyone looks for the flaws and we can say, comfortably, that after all the runs we’ve done and the bankable feasibility study we have completed, that this works,” Frandsen told Mining Weekly Online hours after the Zimbabwe agreement was concluded. In partnering with the IDC, Pallinghurst has strong local support for Kell, and this support has now extended across the border into Zimbabwe’s Great Dyke, which has some of the world’s best platinum. But Zimbabwe’s regulated indigenisation and beneficiation has up to now not been implementable owing to the country’s lack of electricity capacity for conventional smelting and refining and the high cost of building smelters and refineries in relation to the potential throughput. It was against that background that Pallinghurst two years ago initiated talks in Zimbabwe that ran parallel to its construction plans in South Africa. “The one doesn’t exclude the other. We saw quite quickly that if we can implement a solution for Zimbabwe that can really make a big difference for the country. Not only can we beneficiate locally but we have the means to do it super competitively,” said Frandsen The company met with the Minister of Mines, who quickly became a big supporter of Kell because it answered the queries of those who cited the high cost of smelting and refining as the reason why full beneficiation from concentrate to refined platinum, palladium, copper, nickel and cobalt metals was prohibitive and who also queried where they would source electricity in power-short Zimbabwe. Of every 100 g of concentrate produced conventionally, 95% is worthless waste, known as gangue, and only 5% contains the valuable metals. To get the 5%, the 95% is also heated to the very high temperatures of 1 300 °C and 1 400 °C to melt them. By processing 95% of valueless minerals, not only is electricity squandered, but large quantities of slag are produced, which contains cadmium, selenium and some arsenic. The matte produced has to be put into a converter through which oxygen is blown and this results in the emission of SO , which leads to acid rain. The matte is then ground and re-leached to remove the base metals and the residue from that procedure goes into the PGM refineries. In the nineties, when Liddell was looking for alternatives to smelting in case Kroondal platinum mine, in the North West, was unable to ship concentrate out of the country, he began studying ways of leaching the 5% of sulphides that contain the PGMs and the base metals and isolating the 95% of gangue minerals. He applied the leaching method used on matte to the concentrate itself and stumbled on the way PGMs could be liberated, as now happens with Kell. Backed by Pallinghurst, the IDC and other shareholders, Liddell has since built two pilot plants, one at Sedibelo and the other in Perth, which has processed concentrates from a number of different producers, extending from Southern Africa’s PGM producers to North America’s miners of polymetallic ores. The company has spent years testing, re-testing and super-testing Kell, particularly at Kelltech’s sizeable plant in Perth, which is described as being of mini-commercial scale. All the years of diligent research and development have now paid off. Sedibelo in the North West province dispatched 165 000 oz of four element PGMs in the 12 months to December 31, and is willing to make the Kell plant available to others. The plant at Sedibelo, which will have a capacity to process 300 000 oz of PGMs a year, is budgeted to come in at less than $100-million. The spinoffs on the gold side are that cyanide is not required in the processing and the output is 99.99% refined gold, with the potential to unlock major synergies in locations that host both PGMs and refractory gold. A slightly modified Kell is also successful for reprocessing recycled platinum. Cobalt, now in a strong potential earnings position because of its growing use in electric vehicles, is recovered. Because the presence of chromite is no issue at all, UG2 concentrators can be optimised for greater PGM recovery than when being forced to meet the chrome constraints in the concentrate.


News Article | May 15, 2017
Site: www.marketwired.com

ST HELIER, CHANNEL ISLANDS--(Marketwired - May 15, 2017) - Caledonia Mining Corporation Plc (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) regrets to announce a fatality at the Blanket Mine in Zimbabwe in a mining-related accident on 12 May 2017. Blanket management has suspended mining activities in the specific mining area, being the Eroica ore body, which contributed 10 per cent of production in the first quarter of 2017, pending a full risk assessment and in-loco investigation. Management has notified the Minister of Mines and Mining Development and the Inspector of Mines and will provide all the necessary assistance to the Ministry of Mines Inspectorate Department in its enquiry into this incident. Until such a time as the outcome of this enquiry has been reached, no further details can be released. The directors and management of Caledonia and Blanket express their sincere condolences to the family and colleagues of the deceased. "This is a serious setback in our efforts to continuously improve safety at Blanket Mine. The previous fatality was in April 2015. Our heartfelt condolences go out to the family, colleagues and friends of the deceased."


Zhu J.,Chinese Academy of science | Zhu J.,University of Chinese Academy of Sciences | Hu R.,Chinese Academy of science | Bi X.,Chinese Academy of science | And 5 more authors.
Acta Petrologica Sinica | Year: 2011

The Yangla copper deposit is located in the middle zone of Jinshajiang suture zone. The Beiwu, Linong and Lunong granitoids exhibit a linear distribution from north to south in the ore district. The three granitoids have similar compositions of major, trace elements and Sr-Nd isotopes, indicating that they have a common magma source. They do not contain muscovita, and have high concentrations of SiO2(64% ∼73% ), K2O (2. 15% ∼4. 05% ) and low P2O3 (0. 04% ∼ 0. 11% ) content. In addition, they have low δ((K2O+Na2O) 2/(SiO2-43); 1.4 ∼ 2.4) and A/CNK (molecular Al 2 O3/(CaO + Na2O+K2O) ; 0.92-1, 11). The granitoids display significantly negative anomalies of Nb, Ta, Ti and P, obvious enrichment of LREE and Rb, Th, U and Pb. The 10000Ga/Al ratios ( 1. 7 ∼ 2. 1 ) of those rocks are lower than typical A-type granites. Moreover, considering the slightly negative Eu anomalies, it is suggested that the three granitoids belong to high-K calc-alkaline, metaluminous-slightly peraluminous I-type granites. Compared with the continental crust (i. e. , the Lincang granite and the Shaba granulite) , the granites have lower ( 87Sr/ Sr86)¡ (0. 7078 ∼0. 7105) and higher εNd(t) (-5. 1∼ -6. 7), with ancient Nd two-stage model age (tDM2 = 1. 5Ga). And there occur a number of coeval mafic microgranular enclaves (MMEs) in these granitoids, suggesting that mantle-drived magmas were involved in the source region (see in a separate article ). By combining with comparative analyses of the tectonic settings, we propose a model in which the Beiwu, Linong and Lunong granitoids were generated under a late collisional or post-collisional setting. Decompression induced those mantle-derived magmas underplated and provided the heat for the anatexis of the crust The hybrid melts ( i. e. , mantle-derived and the lower crustal magmas ) and subsequent fractional crystallization could be responsible for the formation of the Beiwu, Linong and Lunong granitoids.


Zhou D.,Wuhan University | Zhang Z.-F.,Wuhan University | Long F.,Mining Development Co. | Luo C.,Mining Development Co.
Diqiu Kexue - Zhongguo Dizhi Daxue Xuebao/Earth Science - Journal of China University of Geosciences | Year: 2013

In mountainous areas with eluvium overburden thickness, moisture and vegetation of the overburden layer may be locally increased where faults are developed in the bedrock. At such localities thermal inertia of the near-surface materials is larger than that in the surrounding areas and relatively low surface temperature due to slower diurnal heating rate may be observed in the daytime. Therefore, the temperature-vegetation-dryness index (TVDI), a combination of surface temperature and vegetation, may be used to retrieve buried faults. Using Landsat7 ETM+ data, we have identified buried faults in this study with TVDI in Yangla copper mining district, Yunnan which is about 26 km2 in area and is covered by residual deposits for the most part. A distribution map of faults of the district is obtained with linear lows of TVDI as indicators of buried faults combined with visible image interpretation and field investigation. While essential for mining practice in Yangla, our results show a remarkable potential of thermal infrared remote sensing in ore-field geological studies in poorly outcropped regions.

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