Engineering & Mining Journal

JUL 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 17 of 75

REGIONAL NEWS - AUSTRALIA/OCEANIA 16 E&MJ • JULY 2018 Cleveland-Cliffs Selling Australian Iron Ore Assets Cleveland-Cliffs has entered into a de- finitive agreement to sell substantially all of the assets of its Asia Pacific Iron Ore business to Mineral Resources Ltd., an Australian mining services company with existing mining operations across multiple commodities, including iron ore. Cliffs' previously disclosed costs of clos- ing the Australian operations are expect- ed to be reduced by approximately $65 million to $75 million based on Mineral Resources assuming certain obligations and Cliffs reaching negotiated settle- ments with other third parties. "The sale of these assets to Mineral Resources marks Cliffs' exit from the Aus- tralian iron ore business, and represents the final step in the implementation of our U.S. iron ore-centric strategy," said Lourenco Goncalves, Cliffs' chairman, president and CEO. "We are pleased to have reached an agreement on a trans- action that not only brings real value to Cliffs shareholders, but also represents the potential for continued job opportu- nities for employees in Western Australia who would be impacted by the pending closure of the Koolyanobbing complex." The transaction is expected to close before the end of the second quarter of 2018, subject to certain conditions prec- edent being achieved. Cliffs said the deal is structured as a sale of the following assets and assumption of certain related liabilities: mining tenements, mine facil- ity assets, port assets and the benefit of certain contracts. Fortescue Acquires Stake in Atlas Iron Fortescue Metals Group has agreed to ac- quire 15% of the ordinary shares in Atlas Iron Ltd. at a price of A$0.04 per share. In addition, Fortescue has an economic interest through a cash settled swap re- lating to notional shares equivalent to approximately 4.9% of Atlas Iron's ordi- nary shares. As a result, Fortescue has an aggregate physical and economic interest in 19.9% of Atlas Iron's ordinary shares. Fortescue said it does not intend to support the proposed Scheme of Arrange- ment between Atlas Iron and Mineral Resources on its current terms, but reserves the right to do so. The company also said a substantial holder notice and further details of the swap will be lodged in due course. Atlas Iron is an independent Austra- lian iron ore company, mining and export- ing Direct Shipping Ore (DSO) from its operations in the Northern Pilbara region of Western Australia. Thiess Receives Contract at Rocky's Reward Thiess was awarded a A$225 million contract with BHP Nickel West to provide mining services at the Rocky's Reward nickel mine in Western Australia. The 34-month contract incorporates a fur- ther cutback at the Rocky's Reward pit and works at a satellite pit. The mining services include mine planning and engi- neering, drilling and blasting, mining of overburden and ore, and rehandling ser- vices to the Leinster processing facility. "This award continues our strong working relationship with BHP Nickel West," CIMIC Group Chief Executive Of- ficer Michael Wright said. "We're pleased to continue our support at Rocky's Re- ward, delivering value through our mining expertise and our experience in planning and scheduling mining around existing underground workings." CIMIC Group Executive Mining and Mineral Processing and Thiess Managing Director Douglas Thompson said, "This contract recognizes our ability to bring the right equipment, people and exper- tise to projects. We look forward to build- ing on our experience at Rocky's Reward where we delivered strongly in production and safety. We also look forward to con- tinuing to provide opportunities for local jobs and suppliers." A member of the BHP Billiton group, Nickel West is a fully integrated nickel business comprising the Mount Keith, Cliffs and Leinster mines, the Kalgoorlie smelter, the Kambalda concentrator and the Kwinana refinery. Rocky's Reward is located at Leinster, 400 kilometers (km) north of Kalgoorlie. Thiess equipment loads ore at Rocky's Reward in Australia.

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