Exploration, mining and processing briefs

Updates from Sandvik, Alice Queen, Ampol, Austin Engineering, State Gas and Central Petroleum in this week’s exploration, mining and processing briefs. State Gas spuds first Rougemont well State Gas is drilling the first well in its new Rolleston-West gas project (ATP 2062), near Rolleston in the Surat Basin. The Rougemont-1 well is the first of two planned wells being drilled to evaluate the highly prospective Bandanna coals in the eastern arm of the new Rolleston-West permit. "This is the first well in the new acreage awarded by the Queensland Government to State Gas last year, increasing the company’s potential many-fold," executive chairman Richard Cottee said. The new Rolleston-West permit covers 1414sq km adjacent to the company's Reids Dome project. "If all goes well, we have the makings of a major gas development combining the gas from both projects," Mr Cottee said. Successful pilot drilling for Range gas project Central Petroleum reports that all three wells comprising the Range pilot program in the Surat Basin have been drilled successfully. The Range-6, Range-7 and Range-8 pilot wells were drilled to depths of 675m-685m and confirmed net coal of between 26m and 28m across the three coal seams of Walloon Coal Measures. Testing is expected to commence in June and provide production data for about threemonths to support a Final Investment Decision in 2022. The Range gas project is a joint venture between Central and a subsidiary of Incitec Pivot Limited. Sandvik expands comminution capabilities Sandvik has signed a deal to acquire South African-based Kwatani, a supplier of screens and feeders for the mining industry. “Kwatani's offering of large vibrating screens and feeders for the mining industry is in line with our strategy to strengthen our capabilities in comminution and will be a good complement to Sandvik’s strong competence and experience within stationary crushing and screening," Sandvik Rock Processing Solutions president Anders Svensson said. "This will further accelerate our growth within rock processing.” The transaction is expected to close during the fourth quarter 2021 and is subject to relevant regulatory approvals. Austin Engineering heads west Austin Engineering will relocate its headquarters from Brisbane to Perth, due to the significance of the Western Australian and Asian operations, which are the largest contributor to the company’s profit. The mining equipment supply company said the move would place its senior executives closer to a number of Austin's major customers, who were also based in Perth. In conjunction with this decision, current chief executive officer and managing director Peter Forsyth has elected to retire effective July 31. Horn Island hopeful Alice Queen raises $1.8m Gold and copper explorer Alice Queen has executed a $1.8 million capital raising, strongly supported by existing major shareholder Datt Capital. The company said the funds would support work to assess the value of the historical run of mine and ore stockpiles at Horn Island in the Torres Strait via a planned RC drill program. They will also be used to progress work in Fiji, the Molong volcanic belt in NSW and as general working capital. Alice Queen recently kicked off a scoping study to assess the economics of a potential open-pit operation at the historic Horn Island gold mine, including a planned update of that resource. Ampol to keep Qld refinery open Ampol has announced its intention to continue oil refining operations at Lytton in Brisbane, subject to a government support package being successfully legislated as proposed. The company said the Federal Government’s proposed package would help underpin the viability of the refinery over the medium term, providing a variable support payment of up to $108 million per annum. This should protect refinery earnings during periods of low margins, and support investment in infrastructure upgrades that would deliver the manufacture of cleaner fuels, the company said. “Ampol is pleased that today’s outcome delivers value for shareholders and provides clarity and a path forward for ourvalued employees at Lytton, supporting the continued employment of 550 Australian manufacturing jobs and theindirect employment of hundreds more," Ampol managing director and chief executive officer MattHalliday said.

Exploration, mining and processing briefs

Industry Queensland

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