New Zealand's mining sector continues to wade through a tough year, wondering if global commodity prices have entirely bottomed out and turned for the better.
Gold provided the "good news" element for the annual conference of the New Zealand branch of the Australian Institute of Mining & Metallurgy (AusIMM) in Wellington this week.
However, the health of the sector may be measured by the small turnout of barely 200 delegates, the lowest in at least a decade, when 300-400 has been standard, or the fact most of the pre-conference field trips were cancelled out of lack of interest.
Another measure could be taken from the large number of scientific and academic presentations offered during the conference, against the low number of technical presentations by mining companies themselves.
Several of the company presentations offered information that was nothing new and could as easily have been googled any day of the week.
Even Resource and Energy Minister Simon Bridges, who was tipped earlier in the week to release some positive regulatory changes, came through with only an extension of aero-magnetic surveying in the upper South Island.
He then went on to confirm a permit fee hike by New Zealand Petroleum & Minerals, the Government agency that manages the publicly owned mineral estate, although that hike is likely to be eased in over time, not implemented immediately.
Mr Bridges is scheduled to announce details of the fee hike later this month.
In global snapshot, Campbell McPherson director Tony Haworth uttered what the entire conference was thinking; "Have we bottomed out in the current cycle?"
Globally, resource sector mergers and acquisitions were at a decade-long low of $US40billion ($NZ54billion) and exploration spending was down.
First-half investment was about $12billion, three-quarters of which was gold-related, Mr Haworth said.
"It’s gold that is being chased hardest," he said.
While Oceana Gold, targeting about 408,000oz this calendar year, is now producing more than 90% of the country’s gold, having bought Newmont’s Waihi operation, alluvial gold miners have become more active, and 40,000-50,000oz is expected to be mined this year.
Otago and Southland have several smaller operators either pegging ground, prospecting or in production.
No alluvial company gave a presentation but Waikaia Gold management were on hand, happily fielding questions from all quarters, despite having lost its offices, a workshop and gold smelting room in a recent fierce fire.
Controversial seabed mining proposals are again back in the spotlight, with Trans Tasman Resources having lodged a second application in recent weeks, after last year being declined by the Environmental Protection Authority (EPA).
Just as Trans Tasman did not publicly front foot its application to the EPA, leaving it to ardent opponents Kiwis Against Seabed Mining to instead make it public, Trans Tasman’s absence from the conference was quizzed by many AusIMM members as another lost opportunity.
While seabed-mining applicant Chatham Rock Phosphate attended the conference, its presentation was lacklustre, adding no new details beyond a loose timeline for its reapplication next year.
The EPA presentation on seabed mining was highly anticipated but, as a regulator holding a fresh application in hand, Richard Johnson took a generally diplomatic line.
However, he cautioned both applicants to dispense with quantity and deliver quality data and models with tangible validation and outcomes.
He said the process was being watched globally.
Mr Johnson noted the only place to appeal an EPA decision was in the High Court on a point of law, which he said could be the Achilles’ heel of applicants and opponents alike.
Specialist coking coal, long in the pricing doldrums, has spiked in recent weeks from less than $US100 per tonne to touch almost $US160 tonne during the past week.
The coal spike could help Solid Energy, which is now out of administration but still operated under a "deed of company arrangement" (Doca).
A Doca is a binding arrangement between a company and its creditors, governing how the company’s affairs will be dealt with.
Solid Energy’s chief development officer Tony King begged off giving a detailed update but said an announcement would be "out soon".
Bathurst Energy has just booked its maiden profit from selling domestic thermal coal, having previously spent more than $300million in consenting, acquisitions and fighting legal challenges for its West Coast coal mine.
However, it was denied export production after coking coal prices tanked.
Bathurst’s chief executive Richard Tacon told the conference Buller was definitely not dead, "especially with the [coking] coal price average at $US150 today".
The question is whether Bathurst to put in a bid for processing infrastructure up for sale at some of Solid Energy’s mines.
On the question of the sale of Solid Energy’s Stockton mine, Mr Tacon would only confirm Bathurst was "looking at assets".
Mr Tacon said if coal was consistently above $US100, Bathurst ‘‘could bring some plans forward’’ for the escarpment area on the Denniston plateau, above Westport.
The sale of Solid Energy’s assets will bring to an end 65 years of the Government owning and operating the largest coal-mining operation in the country.Science had a great airing during the conference.
Crown research institute GNS Science took up a large swath of the presentations, including plenty of work from its Dunedin office, plus the launch of an updated volume of New Zealand Minerals Monograph 31.
Another positive talking point was the exploration plans of Australian-listed New Age Exploration, as it looks to run the rule over what could be "Macraes style" gold deposits near Lawrence and Roxburgh,
which are under scrutiny from University of Otago geoscientists Doug MacKenzie and Dave Craw. New entrants are on the scene, in Newcrest, Evolution Mining and New Age Exploration, and New Talisman has refreshed plans afoot, but all are at at early-stage prospecting or exploration.
Oceana Gold, the conference’s principal sponsor, had mine bosses from both Macraes and Waihi at the conference at one point.
Bernie O’Leary, formerly the Macraes boss but now at Waihi, gave thumbnail updates on operations around New Zealand, the Philippines and South Carolina, highlighting the "significant" $16 million exploration spend at Waihi.
While focusing on its Correnso underground at Waihi, Mr O’Leary said the Martha pit, closed for now because of a massive slip, still had "a lot of gold" under it and, overall, Waihi still offered plenty of opportunities.
Mr O’Leary paid tribute to Tipiwai Stainton (29), who died underground in Correnso in late July, a candid and sobering reminder of the daily dangers faced by miners.
