Enquiries: Aert Driessen, PO Box 492, Belconnen ACT 2616, Australia
Phone: +61(0)2 6258 7300 Fx: +61(0)2 6258 4745
E-mail: aert@indmins.com.au Website: www.indmins.com.au

Abbreviations used: ACCC = Australian Competition & Consumer Commission; ASX = Australian Stock Exchange; CRC = Co-operative Research Centre; EPA = Environmental Protection Authority; c.o.b = close of business; HM = heavy minerals; HMC = heavy minerals concentrate; JV = joint venture; km = kilometres; kt = kilo ('000) tonnes; Mt = million tonnes; pcp = previous corresponding period; Q = quarter (of a year); sq = square; SR = synthetic rutile; t = tonnes;

ANTIMONY
AGD Mining reported that the results of diamond drilling of its Augusta deposit at Costerfield, Vic supported plans for a 5-year, gold/antimony mine operating at a rate of about 75/kt/year of ore. The company has since said that it would extend its drilling program by another five holes.
17/2/2003, MiningNews.net; (18/2) Melbourne Age, p B2

BAUXITE & ALUMINA
Comalco Ltd has scrapped plans to build a fourth potline at its Boyne Island, Qld aluminium smelter.
18/2/2003, Australian Financial Review, p 18

Alumina Ltd (formerly the aluminium business of WMC, and comprising a 40% stake in Alcoa World Alumina & Chemicals) reported a $210 mill profit for 2002, down 25% on 2001. The decrease was attributed to a 6% slide in alumina rices throughout the year, to an average US$ 1350/t at year-end. The company added that its share of alumina production from AWAC was up 3% to 4.9 Mt, and that its annual dividend from AWAC was $281 mill.
26/2/2003, MiningNews.net; (27/2), Australian Financial Review, p 19; Australian, p 23; Melbourne Age, p B3; Brisbane Courier Mail, p 27

Alumina Ltd said that, not withstanding the attraction for Alcoa to own 100% of AWAC, there had not been any talks between Alumina Ltd and Alcoa regarding a buy-out of Alumina's 40% stake in AWAC.
26/2/2003, MiningNews.net

CLAYS
Minerals Corp reported that its Skardon River, Qld kaolin plant had successfully come through a 90-day commissioning trial and was now running at about 60 kt/year (about half of design capacity), with product being stockpiled while the company continues its worldwide marketing campaign. The company is targeting ceramics, rubber, and paper industries.
24/2/2004, MiningNews.Net

Minerals Corp confirmed that its Skardon River (see above) plant was now successfully producing two high-volume, high priced products for the paper industry, namely a hydrous kaolin pigment for quality and glossy paper, and a calcined product for the paper/board industry. The kaolin feedstock for these two paper products is different from the kaolin going to its paint, rubber, and plastics (filler) products.
25/2/2005, MiningNews.net

CONSTRUCTION MATERIALS
Leighton Holdings and Abigroup have won one of Australia's biggest transport infrastructure project contracts, namely the $1.5 billion, 40 km Western Orbital toll road linking the M2, M4, and M5 Freeways in Sydney.
18/2/2003, Australian, p 19

A Report by BIS Shrapnel 'Mining & Heavy Industry Construction in Australia 2002-2017' shows that capital expenditure will peak in 2005-06 at a level nearly three times greater than in 2000-01. Heavy industry construction (including mines/processing plants) doubled in 2001-02 and is forecast to increase another 40% in 2002-06. The biggest increases in 2002-03 will be in Queensland, Victoria, and Tasmania; the other States and the NT are forecast to pick up in 2003-05
24/2/2003, Australian Financial Review, p 17; MiningNews.Net

DIAMOND
Rio Tinto's Investment Committee has approved the completion of a $70 mill feasibility study of the Argyle Diamond Mine, WA which will lead to a decision in 2005 to either close the mine during 2007, or go underground.
17/2/2003, MiningNews.net; (18/2) Australian Financial Review, p 19

GARNET
Perth-based Olympia Resources reported that it had struck an indigenous land use agreement with the Central Land Council for its Harts Range, NT garnet project 130 km NE of Alice Springs. The company said that it was in the final stages of a definitive feasibility study which was indicating a $15 mill operation to work a 80 Mt resource averaging 8% garnet (about 6 Mt of contained garnet).
20/2/2003, MiningNews.net

IRON & STEEL
AuIron Energy shareholders are to meet in March to decide whether to proceed with a transaction that would see the company's failed SASE pig iron project demonstration plant at Whyalla, SA go to Ausmelt's wholly-owned subsidiary Ausiron.
26/2/2003, MiningNews.net

LIMESTONE & CEMENT
The competition regulator ACCC said that it would not oppose a merger between Australian Cement Holdings and Queensland Cement Ltd, which will create Australia's largest cement group, adding that the proposed merger was not likely to result in a significant reduction in competition in the relevant market.
20/2/2003, Sydney Morning Herald, p 36

MAGNESIUM-RICH MATERIALS
New World Alloys (formerly Mt Grace Resources) announced that it had acquired South African-based Castall Foundry & Engineering, including its proprietary electric arc furnace technology, equipment, and a $17.6 mill order book, for $2.25 mill. NWA also said that it had concluded talks with its equity partners the Perak State Government and the Malaysian Armed Forces Superannuation Fund, adding that it was now in discussions with major banks to arrange debt financing.
17/2/2003, MiningNews.net

Australian Magnesium Corp will auction on Friday 7 March, all partly-paid Distribution Entitled Securities on which the Final Instalment remains due but unpaid (only about 1% of such securities are involved).
19/2/2003, Brisbane Courier Mail, p 27

Magnesium International (formerly Pima Mining NL) said that, following a review of project costing, the company would opt to seek finance for a A$628 mill, 41 kt/year first module of a proposed 84 kt/year magnesium/alloy plant at Port Pirie, SA (the original project was for a 71 kt/year plant), adding that the company needed to raise A$683 mill (estimated equity requirement A$230 mill) to begin construction. The company said that it had also been able to cut the project's cash operating cost from US 59 cents/pound to US 57 cents/pound, and that several interested parties were now studying a proposal to come on board in the 20% to 30% equity range.
25/2/2003, MiningNews.net

Australian Magnesium Corp reported that it had finalised a $100 mill subordinated loan with the ANZ Bank, which represents the last element of its $1.8 billion financing package. The company said that construction was on schedule for an initial metal pour around late 2004, after which production would be ramped up to capacity in the following 18 to 24 months.
26/2/2003, Company Media Release to ASX; Corporatefile.com; MiningNews.net

Elaboration/clarification: In my last Newsletter I reported that CSIRO's Elaborately Transformed Metals group, in conjunction with AMC and CRC CAST Metals Manufacturing had developed a new magnesium alloy (AMC-SC1) and built an industrial-scale pilot plant capable of producing magnesium metal sheet up to 600 mm wide, implying that both achievements were part of the same project. That was incorrect. Dr Colleen Bettles and her team (in conjunction with AMC and the CRC mentioned above) are carrying out the work on the new alloy, and the work on manufacturing magnesium metal sheet is being carried out by Dr Daniel Liang and his team.

TITANIUM MINERALS
Kerala Minerals & Metals Ltd reported that it exported 4000 t of TiO2 pigment in 2001/02, adding that it expected to lift this to 5000 t in 2002/03.
5/2/2003, The Hindu Business Line, via TZ Minerals Newsletter

Japanese production of titanium sponge in 2002 was 22.7 kt, lower then expected. Sponge exports fell by 40% compared to 2001.
6/2/2003, Metal Bulletin, via TZ Minerals Newsletter

Verkhnaya Salda Metallurgical Production Association has signed a five year contract with Goodrich Corp of the US to supply Airbus A 380 chassis components. The company exported 10.5 kt of titanium metal products in 2002, about 15% less than in 2001.
8/2/2003, Interfax Daily Business report, via TZ Minerals Newsletter

Cable Sands (a subsidiary of Nissho Iwai) is reported to be offering 30 redundancies to its staff at three WA-based operational sites, and its Perth and Sydney offices. The company said that the move was in response to softening demand for titanium mineral products and excessive stocks.
13/2/2003, ABC Regional News, via TZ Minerals Newsletter

The Japanese Titanium Dioxide Industry Association reported that Japanese pigment production in 2002 slipped 7% to 240.7 kt. Domestic dispatches decreased 3% to 169.5 kt, and exports (principally to China and SE Asia) lifted 11% to 81.5 kt.
13/2/2003, Japan Chemical Week, via TZ Minerals Newsletter

Monto Minerals Ltd has applied for a mining lease over an ilmenite deposit next to its Goondicum Crater, Qld project area.
15/2/2003, Gold Coast Bulletin, via TZ Minerals Newsletter

Shaanxi Non-Ferrous Metals Group Corp produced 2408 t of titanium/alloys in 2002, up 22% on 2001.
17/2/2003, Interfax China Business News, via TZ Minerals Newsletter

China produced 3648 t of titanium sponge in 2002, up 48% on the previous year.
21/2/2003, Interfax China Business News, via TZ Minerals Newsletter

Iluka Resources Ltd reported that its consolidated operating profit after tax for 2002 was A$ 109 mill, up 71% on last year, adding that the result reflected record SR and increased zircon sales. Total sales revenue was A$ 894.5 mill, including A$ 805.1 mill from titanium minerals and zircon sales, ($611.5 from Western Australia and $88.1 from subsidiary CRL in Queensland). Ore reserves increased by 14% to 5.3 Mt of contained HM, and resources increased 15% to 33 Mt of contained HM.
28/2/2003, Corporatefile.com; MiningNews.net

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