I found this out through a local during the week.
http://www.canberratimes.com.au/act...29-2yfgt.html-mine-halted-20131129-2yfgt.html
http://www.canberratimes.com.au/act...29-2yfgt.html-mine-halted-20131129-2yfgt.html
Dargues Reef closure.
- Thread starter backcreek
- Start date
Help Support Prospecting Australia:
Goldpick
Chris Johnson
I find it strange that mining companies blame the gold price for their predicament, when its not really that bad compared to the 90's when it was a hell of a lot lower, and for a long period of time, yet most managed to continue production. A lot of them also pre-sold their gold at a much higher price vs selling via the spot gold price, so they managed to scrape through and survive. I think it has more to do with lack of investment in the mining/exploration industry at the moment, I haven't seen it so bad for such a long time.
It's also about time the federal government introduce incentives or tax concessions to invest in the industry as recommended by the Gonski review, particularly for junior explorers. Otherwise, no exploration, no new mines and that's the last thing we need considering the shape of our manufacturing sector. People tend to forget mines don't pop up overnight, they take years of proving up resources, govt red tape, complex environmental studies etc etc before even thinking of taking the first bucket load of dirt out of the ground.
It's also about time the federal government introduce incentives or tax concessions to invest in the industry as recommended by the Gonski review, particularly for junior explorers. Otherwise, no exploration, no new mines and that's the last thing we need considering the shape of our manufacturing sector. People tend to forget mines don't pop up overnight, they take years of proving up resources, govt red tape, complex environmental studies etc etc before even thinking of taking the first bucket load of dirt out of the ground.
Well goldpick, it's the time. 10 years ago the bench mark for commercial operation was 3 ounces per ton min, now I know of operations that are exporting pay dirt at 10 grams per ton for recovery, others are spending millions on drilling programs chasing anything from 10 to 22 grams per ton.
When gold was $500 higher it all made great sense, the high cost of recovery, at $1200 a lot are only covering the operational cost of extraction and recovery. But to make it worst, most floated prospectus's to raise funds for the start up, so investors who bought in, now are likely to see the forecast returns.
Greed I suppose is the answer, but hey, if your a prospector, I reackon we are all guilty.
When gold was $500 higher it all made great sense, the high cost of recovery, at $1200 a lot are only covering the operational cost of extraction and recovery. But to make it worst, most floated prospectus's to raise funds for the start up, so investors who bought in, now are likely to see the forecast returns.
Greed I suppose is the answer, but hey, if your a prospector, I reackon we are all guilty.
- Joined
- Dec 23, 2013
- Messages
- 27
- Reaction score
- 5
Hi,
Like a few members on this site I am also in the mining industry and developing a new gold mine now.
The problems with the industry are varied and many:
1. The cost to do business is very high in Australia and the seemingly as far as I can ascertain, the highest in the world by far.
2. Unlike years gone by where Australians were very productive, that has now changed and the converse is true. I know that we don't like to hear this... but facts are facts no matter how they are adulterated.
3. Government red tape is or perhaps has killed mining growth here in Australia with some of the major miners closing operations, and shelving projects, then diverting the funds elsewhere to countries where it is easier to do business.
4. We have had a very business unfriendly government for about 6 years... VERY! We will all pay the price for that, for a long time to come.
5. Pusillanimous management due to the boom where people were elevated to levels of management beyond their ability, experience and training, and perhaps culture... that happens.
Mining will never boom again in Australia like it has over the last decade... that is not pessimistic talk, just reality. The miners have been scared off and moved off-shore.
I hope that I am wrong... but that does not deter from the fact that our hobby is safe and has a great future and potential.
Have a great day! and hope to see you in the bush sometime.
Like a few members on this site I am also in the mining industry and developing a new gold mine now.
The problems with the industry are varied and many:
1. The cost to do business is very high in Australia and the seemingly as far as I can ascertain, the highest in the world by far.
2. Unlike years gone by where Australians were very productive, that has now changed and the converse is true. I know that we don't like to hear this... but facts are facts no matter how they are adulterated.
3. Government red tape is or perhaps has killed mining growth here in Australia with some of the major miners closing operations, and shelving projects, then diverting the funds elsewhere to countries where it is easier to do business.
4. We have had a very business unfriendly government for about 6 years... VERY! We will all pay the price for that, for a long time to come.
5. Pusillanimous management due to the boom where people were elevated to levels of management beyond their ability, experience and training, and perhaps culture... that happens.
Mining will never boom again in Australia like it has over the last decade... that is not pessimistic talk, just reality. The miners have been scared off and moved off-shore.
I hope that I am wrong... but that does not deter from the fact that our hobby is safe and has a great future and potential.
Have a great day! and hope to see you in the bush sometime.
yes the government was unfriendly to business and the people on equal footing they have broken more than just the mining industry it will take 20 years to dig our selves out of this hole we are in and no one in power will take the steps to get things running again they are only interested in the short term I have to point out Australia has had mining booms in the past and we will have them again big things are going on and leading to maybe conflict in the pacific all sides are building up forces and that will require a lot of resources all we can produce so we will one day have big boom again time has funny way of changing things 
- Joined
- Nov 8, 2013
- Messages
- 566
- Reaction score
- 1,205
After many years in the construction side of mining, it's not the government or people that stop the mining they play a part but very small. It's the dollar the share price and the return to the investor, most of our big mining companies have overspent on projects. Project costs and write downs on projects have seen the new projects put on a back burn for a while. Just my view after many a long years on projects and living in camps working on gold, copper and iron ore.
- Joined
- Feb 19, 2013
- Messages
- 227
- Reaction score
- 146
All too true Shumba,
I also am in the mining industry (very small scale opal). Trying to comply with all the regulations is costly and time consuming.
Miners are being unfairly targeted for environmental non compliance due to the negative nature of those seeking to protect it.
For example; A Koriot (south west Qld) opal miner was being reprimanded for the small amount of dust he was stirring up. A cattle truck roared past on the dirt road not 500m from where they were working covering the area in a plume of red dust that drifted across camps and through the bush.
The miner justly asked "and what about the trucks?" "That's now our department" replied the EPA inspector.
I also am in the mining industry (very small scale opal). Trying to comply with all the regulations is costly and time consuming.
Miners are being unfairly targeted for environmental non compliance due to the negative nature of those seeking to protect it.
For example; A Koriot (south west Qld) opal miner was being reprimanded for the small amount of dust he was stirring up. A cattle truck roared past on the dirt road not 500m from where they were working covering the area in a plume of red dust that drifted across camps and through the bush.
The miner justly asked "and what about the trucks?" "That's now our department" replied the EPA inspector.
- Joined
- Dec 23, 2013
- Messages
- 27
- Reaction score
- 5
Is it possible that as a group we can arrange a trip overseas to prospect, pan and have a look around... perhaps in Africa, or even one of the other off shore islands. It would be fun to share a week or two in an exciting place and see how they do it...
Guys
Don t mistake companies chasing offshore operations as a sign of anything more then raping for greater returns. Mining in shitpot countries who don ' t require things such as safety, environmental management and alike, will always be far cheaper to start up and run. If you call meeting today's compliance as red tape and mere hurdles to deter, again you may be reading it wrong. Compliance is there for everybody.
Compliance issues ensure that what is being done, is being done not to the detriment of any person, or the environment. These are needed. If you have the capital, establishment and approvals, if done right, you have your equipment ready to go, employ the correct consultants and people, extraction can commence within 20 weeks.
Seen it done, have done it, will do it again. I have witnessed first hand many large companies assay some of the very areas some of you prospect today, because 200 to 500 m below your very feet, drilling programs indicate that the zones may be worth, anything up to 308gm/t Au, but relinquish it cause the compliance costs are determined to be to exorbitant in comparison to other programs under review, which may include interests in third world countries.
Like I said before, greed, and as some pointed out, return to share holders.
Don t mistake companies chasing offshore operations as a sign of anything more then raping for greater returns. Mining in shitpot countries who don ' t require things such as safety, environmental management and alike, will always be far cheaper to start up and run. If you call meeting today's compliance as red tape and mere hurdles to deter, again you may be reading it wrong. Compliance is there for everybody.
Compliance issues ensure that what is being done, is being done not to the detriment of any person, or the environment. These are needed. If you have the capital, establishment and approvals, if done right, you have your equipment ready to go, employ the correct consultants and people, extraction can commence within 20 weeks.
Seen it done, have done it, will do it again. I have witnessed first hand many large companies assay some of the very areas some of you prospect today, because 200 to 500 m below your very feet, drilling programs indicate that the zones may be worth, anything up to 308gm/t Au, but relinquish it cause the compliance costs are determined to be to exorbitant in comparison to other programs under review, which may include interests in third world countries.
Like I said before, greed, and as some pointed out, return to share holders.
