Kagara Ltd

Last updated

Kagara Ltd
Industry Mining
Founded 1981
Defunct 2014
Website www.kagara.com.au

Kagara Ltd was an Australian mining company operating in Queensland and Western Australia. The company was founded as Kagara Zinc Inc in 1981, and was based in Perth. [1] Kagara entered voluntary administration on 30 April 2012. [2] It subsequently went into liquidation in 2014. [3]

Australia Country in Oceania

Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania and numerous smaller islands. It is the largest country in Oceania and the world's sixth-largest country by total area. The neighbouring countries are Papua New Guinea, Indonesia and East Timor to the north; the Solomon Islands and Vanuatu to the north-east; and New Zealand to the south-east. The population of 25 million is highly urbanised and heavily concentrated on the eastern seaboard. Australia's capital is Canberra, and its largest city is Sydney. The country's other major metropolitan areas are Melbourne, Brisbane, Perth and Adelaide.

Queensland North-east state of Australia

Queensland is the second-largest and third-most populous state in the Commonwealth of Australia. Situated in the north-east of the country, it is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean. To its north is the Torres Strait, with Papua New Guinea located less than 200 km across it from the mainland. The state is the world's sixth-largest sub-national entity, with an area of 1,852,642 square kilometres (715,309 sq mi).

Western Australia state in Australia

Western Australia is a state occupying the entire western third of Australia. It is bounded by the Indian Ocean to the north and west, and the Southern Ocean to the south, the Northern Territory to the north-east, and South Australia to the south-east. Western Australia is Australia's largest state, with a total land area of 2,529,875 square kilometres, and the second-largest country subdivision in the world, surpassed only by Russia's Sakha Republic. The state has about 2.6 million inhabitants – around 11 percent of the national total – of whom the vast majority live in the south-west corner, 79 per cent of the population living in the Perth area, leaving the remainder of the state sparsely populated.

Contents

Operations

Kagara explored, developed and produced copper, zinc, gold, nickel, and lead concentrates. [1] In June 2002 the company was reported to have started construction and waste pre-stripping at its $54m Mt Garnet zinc project in northern Queensland. [4] In June 2008 the company said it would reduce zinc output, which it sold to Korea Zinc Co. Ltd, to 35,000 tons, but would boost copper production, which it sold to Sterlite Industries (India) Ltd. [5] That month it said it planned to buy the Queensland-based Maitland copper deposit Glengarry Resources Limited. [6]

Mount Garnet, Queensland Town in Queensland, Australia

Mount Garnet is a small town and locality in the Tablelands Region in north-eastern Queensland, Australia. In the 2011 census, Mount Garnet had a population of 433 people.

In May 2009 the company reported that production of nickel from the Lounge Lizard deposit in Australia would start in three months, with an estimate of 3,000 tonnes of contained nickel a year. The deposit may contain over 140,000 tonnes of ore, and is one of Australia's largest high-grade nickel ore mines. [7] By January 2010 744 tonnes of development ore had been produced from the deposit, grading 4.4 per cent nickel, and was awaiting treatment. [8] In the 2010 fiscal year, the Mt Garnet polymetallic and copper plants produced 43,970 tons of zinc metal in concentrates, 20,214 tons of copper metal in concentrates and 1,392 tons of lead metal in concentrates. The Thalanga Copper plant produced 3,488 tons of copper metal in concentrates. [9]

In April 2009 Kagara said it had been approached to spin off its gold mining assets, using the cash to reduce debt. [10] In June 2009 the Chinese Guangdong Foreign Trade Group (GFTG) said it would take a 15% stake in Kagara for US$50.7 million. [11] In July 2009 the Australian government approved the deal. [12] That month, the company announced plans to spin off its gold operations, but these were put on hold due to market conditions. [13] In April 2010 Kagara announced the terms of a spin-off of its gold assets, to be named Mungana Goldmines, valued at A$149 million. [14] In May 2010 the government of China approved a $23.8 million investment by GFTG in Mungana Goldmines. Kagara would retain a 49% interest in the operation. [15] Mungana has inferred resources of 1.6 million ounces of gold, 90,000 tonnes of copper and 14 million ounces of silver. [16]

China Country in East Asia

China, officially the People's Republic of China (PRC), is a country in East Asia and the world's most populous country, with a population of around 1.404 billion. Covering approximately 9,600,000 square kilometers (3,700,000 sq mi), it is the third- or fourth-largest country by total area. Governed by the Communist Party of China, the state exercises jurisdiction over 22 provinces, five autonomous regions, four direct-controlled municipalities, and the special administrative regions of Hong Kong and Macau.

In September 2010 Kagara reported positive results from an initial study of a possible Admiral Bay lead-zinc-silver project in the Kimberley region of Western Australia, and said it had plans to explore the project in more detail in a feasibility study. [17] In October 2010 Kagara made a bid to acquire Copper Strike, a neighboring company in north Queensland, for about A$14.2 million. [18] [19] The main asset of Copper Strike is the Einasleigh project in Queensland, which is south west of Kagara's copper and polymetallic processing facilities at Mount Garnet and north west of its Thalanga polymetallic processing facility. Einasleigh has copper resources of about 16.1 million tonnes. [20] Copper Strike described the bid as "highly opportunistic" in a letter to shareholders. [21] [22] Kagara responded by calling into question Copper Strike's ability to develop the asset on their own. [23]

Kimberley (Western Australia) Region in Western Australia

The Kimberley is the northernmost of the nine regions of Western Australia. It is bordered on the west by the Indian Ocean, on the north by the Timor Sea, on the south by the Great Sandy and Tanami Deserts in the region of Pilbara, and on the east by the Northern Territory.

Einasleigh Copper Mine and Smelter

Einasleigh Copper Mine and Smelter is a heritage-listed mine at Daintree Road, Einasleigh, Shire of Etheridge, Queensland, Australia. It was built from 1867 to 1922. It is also known as Lynd Copper Mine and New Einasleigh Copper Mine. It was added to the Queensland Heritage Register on 11 December 2006.

In January 2011 Kagara said that the recent flooding in southern Queensland had had little effect on its operations apart from the Thalanga operation, where Vomacka open pit was being developed and the Thalanga Polymetallic processing facility was being commissioned. [24] The company said it expected to produce around 23,000 tonnes of copper and 50,000 tonnes of lead and zinc metal in 2011. [25]

However, by 2012 Kagara had been hit hard by the stronger Australian dollar, lower commodity prices and high labour costs. It reported a $48.9 million loss for the first half of the 2012 financial year. In the midst of a restructuring, and a failed attempt to obtain further funding, it entered voluntary administration on 30 April 2012. [2]

The company went into liquidation in early 2014, resulting in significant losses to creditors. [3]

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References

  1. 1 2 "KAGARA LTD (KZL:ASX)". Bloomberg Businessweek. Retrieved 12 January 2011.
  2. 1 2 "Miner Kagara calls in administrators". Herald Sun. 2012-04-30.
  3. 1 2 Serenc, Michael (5 September 2014). "Liquidator muzzles Kagara creditors". Cairns Post. Retrieved 27 June 2015.
  4. ↑ "Kagara begins Mt Garnet mine construction". Reed Business Information. 2002-06-13. Retrieved 12 January 2011.
  5. ↑ "Australia's Kagara to cut zinc output on lower prices". Reuters. 29 Oct 2008. Retrieved 12 January 2011.
  6. ↑ Jo Black (11 June 2008). "Kagara to purchase Maitland copper deposit". Metal Markets. Retrieved 12 January 2011.
  7. ↑ "Kagara sees nickel mine start in 3 months". Mining Journal. 11 May 2009. Retrieved 12 January 2011.
  8. ↑ "Kagara nickel JV produces first ore". Sydney Morning Herald. 6 January 2010. Retrieved 12 January 2011.
  9. ↑ "KAGARA LTD (KZL.AX)". Reuters. Retrieved 12 January 2011.
  10. ↑ "Australian Copper Mining Company, Kagara Receives Approaches For Sale Of Gold Asset". Mining Exploration News. 19 April 2009. Retrieved 12 January 2011.
  11. ↑ "Guangdong Foreign Trade Group to buy Kagara stake". China Economic review. SinoMedia Holdings. 12 June 2009. Retrieved 12 January 2011.
  12. ↑ "China gets nod to buy into miner Kagara". Associated Press. 9 July 2009. Retrieved 12 January 2011.
  13. ↑ "Kagara to raise $76m for gold spin-off". WA Business News. 16 April 2010. Retrieved 12 January 2011.
  14. ↑ Cole Latimer (19 April 2010). "KAGARA SPINS OFF GOLD". Australian Mining. Retrieved 12 January 2011.
  15. ↑ "Chinese firm to take 16pct stake in Kagara's gold spin-off". China Mining Association. 17 May 2010. Retrieved 12 January 2011.
  16. ↑ Barry FitzGerald (23 February 2009). "Kagara goes for gold in nick of time". The Age. Retrieved 12 January 2011.
  17. ↑ "Kagara Plans Feasibility Study for Admiral Bay". Engineering & Mining Journal. Mining Media International. 14 September 2010. Retrieved 12 January 2011.
  18. ↑ Rebecca Le May (12 October 2010). "Kagara plans Copper Strike takeover". Sydney Morning Herald. Retrieved 12 January 2011.
  19. ↑ Barry FitzGerald (13 October 2010). "Kagara looks to boost zinc/copper assets through bid for Copper Strike". Brisbane Times. Retrieved 12 January 2011.
  20. ↑ Michael Bennet (13 October 2010). "Kagara bids for rival Copper Strike". The Australian. Retrieved 12 January 2011.
  21. ↑ Ricky Roxas (13 October 2010). "Copper Strike calls Kagara takeover bid as highly opportunistic". International Business Times. Retrieved 12 January 2011.
  22. ↑ Barry FitzGerald (18 October 2010). "Kagara bid beholden to a Hong Kong mystery mob". WA Today. Retrieved 12 January 2011.
  23. ↑ Esmarie Swanepoel (26 November 2010). "Kagara responds to Copper Strike target statement". Mining Weekly. Retrieved 12 January 2011.
  24. ↑ "Kagara Copper Unaffected by Flood". Indonesia Today. 12 January 2011. Retrieved 12 January 2011.
  25. ↑ Esmarie Swanepoel (12 January 2011). "Kagara keeps FY production forecast unchanged". Mining weekly.
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