In today’s talking points: Evolution mining may sell Edna May gold site; Production shut down after Empire Oil and Gas enters into voluntary administration; Iron ore producers ramping up operations in face of strong demand; China aims to spread bio ethanol gasoline use countrywide by 2020
Evolution mining may sell Edna May gold site
Evolution Mining, the second biggest gold miner by capitalisation in Australia, may be looking to sell one of its gold mines in Western Australia. The Edna May gold mine was purchased by Evolution Mining to expand their portfolio, but as it is now not a material part of its portfolio in earnings, reserves and production, it is being considered for divestment. According to research analyst Michael Slifirski, if the gold mine was sold, the profits would be used to strengthen the balance sheet when looking for future investments. Evolution mining was founded in 2011 and currently has a market capitalisation of about $4.3 billion.
Read more at: Sydney Morning Herald
Production shut down after Empire Oil and Gas enters into voluntary administration
Empire Oil Company, a subsidiary of Empire Oil and gas, has entered into voluntary administration. This comes after lender Mineral Resources issued a default notice, leading to Empire Oil Company entering into receivership. Deloitte was subsequently issued as the receiver of some assets including a few related to the Red Gully gas project in Western Australia. While production at the Red Gully gas project was expected to be up and running again after a suspension earlier this year to conduct a planned static pressure survey, this will now not be the case.
Read more at: Australian Mining
Iron ore producers ramping up operations in face of strong demand
Australia’s iron ore heavyweights are shelling out billions of dollars to increase their capacity to satisfy the strong China market. Amid predictions that Australia will produce more than half of the world’s export market by 2019, the country’s three leading exporters, including Rio Tinto, are aiming to increase their capacity by 170 million tonnes. BHP Billiton claims their production is yet to peak — and, in fact, is not likely to happen until 2025. The company’s first replacement operation – a $338 million mine — was opened this week in WA’s Pilbara region.
Read more at: Sydney Morning Herald
China aims to spread bioethanol gasoline use countrywide by 2020
China is preparing to extend bio ethanol fuel use across the country by 2020 as it steps up its efforts to lower emissions. China is the globe’s third biggest bio ethanol producer and ethanol fuel for vehicles is being trialled in 11 provinces. The National Development and Reform Commission and National Energy Administration (NEA) announced the 2020 plan on Wednesday, with a senior official telling Xinhua that bio fuel was appealing because it was “renewable, versatile and environmental-friendly”. It follows recent talk that China is planning to ban fossil fuel cars, although no time frame has been revealed yet. Figures from last year show sales of pure electric vehicles increased by more than 65 per cent.
Read more at: Xinhua