Iron ore prices have surged more than 70% nearing a 15-month high, coal prices too are increasing.

So before you know it we will be back to boom time, well maybe. Still though, there is still a fair amount of activity out there. Remember – if you are not getting the business, your competitor is.

  Mining News

Xstrata will ramp up production at its Mangoola coal mine by almost 30% to 13.5Mtpa.

Whitehaven Coal’s expansion of its Tarrawonga coal mine  has been approved by the NSW Govt subject to a series of strict

Fortescue was expected to spend some $6.3B on capital expenditure reflecting the resumed spend on the Kings deposit.

Norton Gold Fields will spend some $40M to start immediate development on the Enterprise openpit project in WA,as well as a $38M investment to transition to an owner- operator model for its Paddington operations in WA’s Goldfields.

Eastern Iron has advanced plans for its Nowa Nowa magnetite project, located near the NSW/Victorian border. The project will progress to feasibility stage, following positive scoping study and metallurgical testwork results.

Flinders Mines has been given the environmental nod by both the state and federal governments to develop its flagship 15Mtpa Pilbara iron-ore project.

Bandanna Energy is seeking potential JV partners for its Springsure Creek coal project after completing a cost estimation $743M for the Stage 1  for the project.

ERA has formally begun its statutory approvals process for the proposed Ranger 3 Deeps underground uranium mine. It lodged a referral with the SEWPaC as well as with the NT govt. ERA is investing around $120M to construct an exploration decline to define its existing resource.

St Barbara has agreed to sell its Southern Cross operations to Chinese miner Hanking Gold Mining.

MMG has endorsed the development of the $1.4B Dugald River project, north-west of Cloncurry.The company received environmental approvals in August and says the latest development is a significant milestone.

GUJARAT Coking Coal’s NRE No.1 colliery in New South Wales has been approved by the state’s planning commission for expanded operations after some modification to its $20M plan.

WA Govt data shows mining investment in the west surged to record levels in 2011-12.

Iron ore prices have surged more than 70% in the last four months,Iron-ore nears 15-month high, tops $150/t on China demand outlook.

Cazaly Resources welcomes the statement released by WA Transport Minister Mr Troy Buswell MLA giving the go ahead for the procurement process for the development of the multi user iron ore facility at Esperance Port.

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Energy News

ECO for LIFE Private has proposed to build a 30MW solar photovoltaic plant south of Kerang, Vic. The project was given planning permits by the Gannawarra Shire Council in December 2012. ECO for LIFE has indicated that they are now in negotiations with commercial contractors regarding construction and financing of the project. The project will have a total capital value of approximately $30M.

Bald Hills wind farm is a 104MW wind farm that will be located at Walkerville, Victoria. The project is owned and built by Mitsui & Company Limited. In August 2012, Mitsui selected Repower Australia as the preferred EPC contractor for the project. Repower will also supply the turbines to build the wind farm project. Repower undertook the overall management of the project and is currently finalizing the subcontractors and electrical workers, which will then be subcontracted again.

AGL’s Torrens Island Power Station is planning major maintenance and upgrades to the boiler control system for its six operational natural gas units in 2013 and 2014.

Hydro Tasmania recently announced a proposal to build a 600MW windfarm project. The project will be located on King Island, one of the two inhabited islands in Bass Strait Tasmania, the other being Flinders Island. King Island is believed to have the best wind resources in Australia.

Application lodged for up to 6100 new Coal Seam Gas sites Toowoomba Chronicle ONE of Queensland’s biggest coal seam gas projects, Santos GLNG, has applied for a huge expansion in central and southern Queensland, with options to sink as many as 6100 new coal seam gas wells.

Sydney Water has awarded contracts totalling $500M, forming the beginning of a framework of contracts that represent a new approach for the utility.

BHP has approved US$520M for its Longford Gas Conditioning plant JV project in Victoria. It is part of a wider $1B invested into the project by BHP’s fellow JV partners ExxonMobil and Santos.

  Recruitment Update

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Supplier News

SKM has signed a renewed agreement with Rio Tinto which will see the engineering firm deliver EPCM services to the miner’s iron ore projects in the Pilbara. The deal extends to EPCM for the Cape Lambert Port B expansion to 353mtpa.

Macmahon has been awarded by Fortescue Metals Group a $1.8B mining contract to provide open cut mining services as part of the Christmas Creek mine expansion for Fortescue.The five-year contract would deliver all aspects of mine operations, including drill and blast, overburden removal, ore harvesting, maintenance of equipment and associated services for the Christmas Creek expansion.

AGC Industries has been awarded a contract by Fugro-TSM  for fabrication work associated with Phase I of Greater Western Flank, a subsea development project.

Australian Industrial Air with their Generators fleet were called out in the middle of the night when when Xstrata recently suffered a major power failure at its Ernest Henry mine, causing disruption to its underground operations. That’s service.

Orica is reportedly planning to build a new ammonium nitrate emulsion plant in the Bowen Basin, east of Dingo.

Mastermyne has been awarded a contract for services at BHP’s Appin Area 9 project.According to Mastermyne it will see the company provide development drivage and outbye services.It will begin in march and run for around two years and a half year, employing 60 people once fully mobilised, including personnel transitioning from the Dendrobium mine.

GR Engineering has won a $30.3M EPC contract for Doray Minerals’ Andy Well gold project.The contract is for the processing plant at the mine in Meekatharra.

Ausenco has been awarded a three year contract to manage a portfolio of projects at Newcrest’s Lihir mine. Ausenco it will provide delivery services to support ongoing capital projects at the mine, with the services delivered under an EPCM contract working with the Newcrest team.

Plans for Australia’s “LNG Highway,” which is to stretch almost the full length of the eastern coast, are one step closer, with BOC Gases Australia awarding a contract for the EPC of its Chinchilla Micro LNG Plant to Gas Liquid Processing Engineering.

Viento Utility Services has just won the new engineering firm’s first contract.The group has been awarded the design and construction of two low voltage transportable switch rooms and motor control centres for iron ore projects in the Pilbara.

Empire Oil & Gas has awarded Oceaneering Services the contract to commission, operate and maintain its Red Gully Gas and Condensate Processing Facility in WA.

SKM has been appointed by Adani Mining to provide engineering services for the development of the Abbot Point port expansion.

Joy Global’s fourth quarter earnings rose 23% this year, but lower sales are expected in 2013 as commodity prices soften. Joy reported a 23 % increase in fourth quarter profit to $212.6M, up from the $172.3M recorded in the same period last year.

DEM Solutions, the company setting the standard for engineering application of discrete element method (DEM) simulation received a Highly Commended Award in the Innovative Technology Category at the Australian Bulk Handling Awards Dinner.The engineering software developed specifically to address bulk materials handling challenges as used by RioTinto, Hatch, Minerva and many others.

Leightons has secured $1.2B worth of contracts linked to the $34B Ichthys LNG project. The first contract, worth $923M, is to build infrastructure such as roads, foundations and trenches, at Blaydin Point for Ichthys’ onshore facilities.Construction is due to start in May and be completed by July 2016, Leighton’s wholly-owned subsidiary Leighton Contractors said in a statement on Friday.It is the third project Leighton had won for Ichthys’ onshore processing site.

Leightons had clinched a $280M operations and maintenance contract for Blaydin Point’s temporary facilities. Leighton Contractors will operate and maintain services for all temporary site facilities, including power supply, water treatment plants and pest control, for more than four years during the construction phase. The temporary facilities were currently being built by Leighton Contractors’ infrastructure division.

Macmahon Holdings confirmed it plans to exit the construction industry and shift focus towards becoming a fully fledged mining contractor.

Forge Group has been awarded the EPCM contract to develop BHP Billiton’s Yarnmina power station in the Pilbara.It received the $105M Notice of Award from WorleyParsons yesterday. BHP gave the go ahead for the combined cycle gas turbine power station late last year.

Decmil Group has been awarded by Rio Tinto a $30M contract for the construction of infrastructure in the Pilbara. The contract covered a range of major infrastructure works and included the construction of a heavy vehicle workshop and associated facilities, a first aid building, a security gatehouse, a communications hut and a radio base station facility.

AbiGroup has won a federal and NSW Govt contract to design and build the Nambucca Heads to Urunga upgrade of the Pacific Highway.

Resource Development Group has been appointed by Sandvik to provide specialist electrical and control systems commissioning and engineering support services for Rio Tinto Iron Ore and Sino Iron.

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All information contained in this blog derives from information available within the public domain. SG Partners/Michael Lang take no responsibility for information that may be incorrect at time of collation. Where statements/editorials are made it is on the bases of pure speculation and no malice is intended.