Anglo American notches record profits

[img:Anglo%20American%20-%20Pic%201_0.jpg|General view of the
plant at the Finsch
mine of De Beers
]London, England --- MININGREVIEW.COM --- 20 February, 2008 - Global mining and natural resources leader Anglo American plc achieved a record total group operating profit of US$10.1 billion (more than R75 billion) in 2007 – 3% up on the previous year.

Anglo American is involved in platinum group metals, diamonds, coal, base metals, industrial metals, ferrous metals and gold operations. It has projects spread through Africa, Europe, Asia, Australia, South America and North America.

MINING IN THE WORLD’S MOST SENSITIVE ENVIRONMENT

Madagascar’s genetic diversity is indicated by the fact that the 1,600 km long by 400 km wide island has 21 distinct families of flora and fauna compared with the next most diverse regions on earth, which have only seven. For example Madagascar’s rare lemurs, of which there are 60 different species, are found only on this island. The country’s ecology is its second biggest source of income after fishing, and Madagascar has a massive eco-tourism potential.

Recently the World Bank did a study as to the value of having parks versus using land in the country for alternative economic uses and found that the optimum use of land where applicable is for ecological purposes from an economic perspective, as the land is agriculturally poor.

AFRICAN EAGLE A THOROUGHBRED EXPLORER

The company has some 5,000 km2 of licenses in Zambia, some 2,500 km2 of licenses in Tanzania and 1,000 km2 of licenses in Mozambique, the three countries in which it operates.

Unlike many junior mining groups these days, African Eagle is a traditional exploration company.

“We have no intention of being producers, and we will not start up mines. We have different skill sets, and unlike some juniors we are able to focus on what we are good at. That is exploration and deal making,” says African Eagle managing director, Mark Parker.

DRILL RIG HELPS DECIDE MADAGASCAR PROJECT GO-AHEAD

A contract in Madagascar for Boart Longyear’s Environmental Drilling Division’s Minisonic drill rig provided an opportunity to test this rig outside its home base of the USA for the first time. The excellent coring samples it yielded were critical in enabling customer Rio Tinto to take a positive decision on pursuing a project in Madagascar’s Mandena mineral deposit.

drill rig madagascar
Sonic sand samples prepared
for geological logging.

The Minisonic’s job was to conduct sonic sampling that would validate drilling results already obtained from 1,500 vibra-core holes to estimate reserves in Mandena, near the village of Fort Dauphin on the southeast corner of the island.

MADAGASCAR’S AMBATOVY PROJECT GETS ITS FINAL PARTNER

One of Japan’s largest integrated trading and investment companies, Sumitomo has joined Dynatec and Implats by acquiring a 25% interest in the Ambatovy nickel project in Madagascar. Sumitomo has a market capitalisation of US$10.4 billion and this deal puts into place all the partners required to move the project forward.

The Ambatovy feasibility study released by Dynatec in February 2005 indicated the potential for 60,000 tonnes a year of nickel metal and 5,600 tonnes a year of cobalt metal, with cash operating costs expected to be near the bottom of the global cost curve.

TRUCKS SHINE AT TANZANIAN GOLD MINE

Mining and construction equipment manufacturer Terex has netted close to R200 million (US$28 million) of export orders for mining plant to be supplied to AngloGold Ashanti’s Geita Gold Mine in Tanzania.

Terex Africa initially secured an order for four Terex/unit Rig MT 4400 AC rigid mining haul trucks and a Terex/ O&K RH340 shovel from new customer AngloGold Ashanti, explains business development manager, Johan Botes. The company’s service and the performance of these trucks at the mine led to a subsequent order for an additional four MT 4400 AC units

PROJECT IMPLEMENTATION RISKS HAVE INCREASED

These new risks are a result of the global commodities boom and economic expansion. They are a result of increased activity in the construction sector in major developing markets, including South Africa, the primary source of materials and expertise for undertaking mining projects in the region.

One such risk is the escalation in demand for commodities used in mining projects themselves and increases in prices of those commodities. For example, the recently experienced shortage of tyres for large earthmoving equipment globally was a result of the economic boom in China. The price of steel in South Africa has surged dramatically in the last two years owing to the import pricing parity formula used in South Africa, which makes its steel manufacturers among the most profitable in the world. This impacts the cost of implementing projects in the region and causes problems in managing steel price escalation.

FEWER BIG MINING RISKS IN AFRICA, BUT MORE OF THEM

These middle risks are issues such as HIV/AIDS, the lack of transport and communication infrastructure, unclear implementation of legislation, corruption, and social issues such as the presence of artisanal miners. Broadly speaking, while the investment climate in Africa’s mining sector is more favourable than in the past as a result of a better political climate coupled with better mining legislation, the new risks require more management.

“The plus side, however, is that if the management of mining companies do the right things many of these community and socially related risks can be managed,” Cattaneo says. “One can mitigate risks related to changes in regimes by forming good relationships with a variety of stakeholders including the host government, local suppliers and forming joint ventures.”

Two major gold strikes in Ethiopia

Addis Ababa, Ethiopia --- MININGREVIEW.COM --- 12 February, 2008 - Midroc Gold Mine Plc – a member of the MIDROC Ethiopia Technology Group – has announced a new breakthrough in the form of two major gold strikes in Ethiopia. Midroc is the only industrial scale gold mining company in Ethiopia, and is actively involved in gold mining and exploration activities.

After four years of intensive exploration, Midroc Gold CEO and general manager Arega Yirdaw announced the discovery of a reserve in East Sakaro, which is in the Guji Zone of the Oromia Regional State. The reserve is estimated to contain 17 250 kg of gold.

Two major gold strikes in Ethiopia

[img:Ethiopia%20-%20Pic%201_0.gif|Arega Yirdaw,
General Manager
& CEO,
Midroc Gold
]Addis Ababa, Ethiopia --- MININGREVIEW.COM --- 12 February, 2008 - Midroc Gold Mine Plc – a member of the MIDROC Ethiopia Technology Group – has announced a new breakthrough in the form of two major gold strikes in Ethiopia. Midroc is the only industrial scale gold mining company in Ethiopia, and is actively involved in gold mining and exploration activities.

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