SA’s GoldStone says pursuing number of exploration projects
JOHANNESBURG (miningweekly.com) – Minerals exploration company GoldStone Resources was pursuing a number of projects, in various stages of development, in Ghana, Kenya, South Africa and Tanzania, in addition to its potential mining prospects in West Africa and India, it said on Monday.
Reporting on its financial results for the year ended February 28, 2009, the Aim-listed company noted that it was planning to negotiate with one of its largest shareholders, GeoQuest, regarding the potential divestment of its interest in GoldStone.
GoldStone had, in June 2008, announced that it planned to acquire a 100% stake in the DR3-East Uranium project, in South Africa’s Western Cape province, from Hymrai Properties.
This was, however, subject to the exploration company getting approval from South Africa’s former Department of Minerals and Energy (DME), as well as a listing on the AltX.
The transaction was only approved by the DME in April this year, which made it necessary for GoldStone to make additional representations to the advisory committee of the JSE, it explained.
As there was no certainty that the AltX would grant the company the required approvals, it had decided not to pursue the listing, which meant that the acquisition agreement with Hymrai would lapse.
Any future acquisition by GoldStone of an interest in the project, or any other project in the Southern African Development Community, would require GeoQuest to divest its interest in the company or require GoldStone to list on the JSE, the company stated.
Meanwhile, the company reported that it had applied for eleven prospecting licences that formed part of its bauxite exploration project, in Guyana, in South America.
The Guyana Geology and Mines Commission had already approved the granting of eight of the prospecting licences, it added.
The company had also continued its exploration work on a number of potential gold prospects in Mali, Senegal and India.
It was expecting a prospecting permit for the Sangola licence, in Senegal, to be granted shortly, while a licence application was also under way in India.
In: news · Tagged with: exploration projects, goldstone, south africa
China iron-ore prices fall to $95/t on demand drop
SHANGHAI – Benchmark iron-ore prices in China fell to $95/t on Monday, easing 17% from its nearly one-year peak of $115 in early August, as traders said many Chinese steel mills stopped buying ore for future delivery.
Indian ore of 63/63,5 percent iron content for future delivery was quoted at $95-98 a ton, including freight costs, while ores for immediate delivery were bid at about 780 yuan ($114) a ton, industry consultancy Mysteel said on Monday.
Many steel mills in the largest producing country had been purchasing only ores for immediate delivery for at least one week due to the rising uncertainties in the steel market, which has weakened since early August, iron-ore traders said.
“Everybody knows the Chinese market is a volatile market, so steel mills bought a lot when the steel market was booming and suspended purchasing as the market is fading,” a Shanghai-based steel trader said on Monday.
“We should not underestimate the momentum. India iron ore prices are likely to fall to $90 tomorrow as some sellers are impatient now,” said the trader, who works for a major private-sector iron ore trading firm.
Another trader predicted that iron ore prices in China would fall further, since many merchants had built up stockpiles when prices were hovering near $80/t.
Iron ore prices in Chinese domestic markets have been following steel prices closely for months, partly because Chinese steel mills are setting up the volumes of iron-ore purchases with their production schemes and cash positions, which are correlated with steel prices.
The surge of the iron ore prices in the Chinese market, which started in early July, was also triggered by the Chinese government’s detention of four Shanghai-based employees of Australian miner Rio Tinto on allegations of illegally obtaining commercial secrets and bribery.
China claimed a small victory after it reached a slightly cheaper iron ore price with Australian miner Fortescue this week, but talks with major iron-ore suppliers Rio, BHP Billiton and Vale are still deadlocked.
The China Iron and Steel Association (CISA), the industry group and the de facto negotiator represents Chinese steel mills in the price talks, have said excess imports was a hindrance in talks. However, a report by the China Business Journal said on Saturday that some industry experts and steel mill officials had urged the central government to replace some CISA’s executives who are leading the iron ore negotiations.
They criticised CISA for its “foolhardiness” and lack of wisdom in the negotiations, and for missing several chances to settle the price due to its insistence on a 40% price cut, according to the Chinese-language newspaper.
In: news · Tagged with: irion ore price, iron ore