Sydney, Australia (ABN Newswire) – New Energy Minerals Limited (ASX:NXE) (FRA:GGY) (OTCMKTS:MTTGF) is pleased to provide an update to the market in relation to the Company’s activities for the period ending 31 December 2020.
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Magnis Resources (ASX:MNS) (“Magnis” or the “Company”) is pleased to present its Quarterly Activities Report for the period ended 30 September 2018.
Magnis Resources Limited is to be renamed Magnis Energy Technologies Ltd effective with the ASX on Monday 5th November 2018, following shareholder approval at the Annual General Meeting held last Friday 26th October 2018. The change of name is to better capture the operations and value the Company is creating now and in the future. As Magnis scales up its lithium-ion battery manufacturing operations, it has become apparent from meetings with stakeholders, potential investors and partners, that a change of Company name to better reflect current operations is warranted. Any name change will not impact on the future development of its high-quality flake graphite project in Tanzania.
The ASX trading and quoting code for Magnis will remain the same as ASX:MNS.
Magnis has announced its participation in global consortiums, including ownership, to operate lithium-ion battery gigafactories in Australia, the USA and Germany. As a member of these consortiums, Magnis’ role will be to provide raw materials and associated technologies to assist in the production process. The Company continues to develop the Nachu Graphite Project towards the mining and processing of the ore into high purity flake graphite for use in various industries, including batteries for storing electrical energy.
The major activities announced during the past quarter are summarised in this report.
Battery Results with partner C4V
Early in the quarter, Magnis and exclusive partner, Charge CCCV (“C4V”) noted that joint testing programs on the commencement of lithium-ion battery manufacturing are well advanced. Magnis and C4V have made significant progress in qualifying patented next generation materials for leading battery performance and commercial supply chain partners.
Recent test programs utilising silicon enhanced graphite anode materials have delivered major advances in both anode performance and the cost of its manufacture. In particular, the patented nanostructure silicon composite material can now be manufactured at a significantly lower equivalent cost to graphite after allowance for its increased capacity.
Supply chain qualification for commercial integration benefits include:
• First cycle lithiation capacity of 623+ mAh/g, an 80% improvement on the energy density performance of existing graphite-based anode material;
• A first cycle efficiency of >89% without any pre-lithiation;
• Greater than 98% capacity retention after 35 cycles
In general terms, 80% more capacity translates to approximately 30% more distance covered by a vehicle using a similar battery pack size, when compared by dimensions. For example, an average Tesla battery has a range of approximately 450km and the results achieved here would allow the same size battery pack to achieve 600km.
The Company has received significant levels of interest from leading anode suppliers for the silicon graphite anode blend. Samples and results are currently being shared with these parties.
Original Equipment Manufacturers qualification began with battery cells being recently sent to OEM’s in the United States. Larger volumes of samples will be prepared for delivery and sent to European OEM’s.
Discussions to date have been promising and the Company expects to reach forms of agreements before the end of the calendar year.
Magnis and C4V Generation 1 and Generation 2 cathode technologies have received interest from groups within the battery industry and potential new entrants to date. Generation 1 cathodes, which will be ready for mass production in the near term, do not require any cobalt or nickel and have much higher capacity than phosphate (such as LFP) or oxides (such as NMC, NCA, LMO). Generation 1 cathode BM-LMP has been tested on commercial size (several Ah) cylindrical as well as pouch form factors. Generation 2 is targeted towards higher energy density (~300Wh/kg) and higher temperature stability (no cooling until 65°C). Testing for Generation 2 remains ongoing and the Company will provide an update to shareholders as developments materialise.
New York State Gigafactory
Significant progress has been made by Imperium3 New York, Incorporated (iM3NY) with respect to start-up activities for the New York Gigafactory project in which Magnis has increased its indirect and direct shareholding to 46.4%.
Physical relocation including the disassembly, packaging and shipment of the acquired equipment from the previous battery manufacturing plant in North Carolina to the new iM3NY facility at the Huron Campus in Endicott, New York is complete.
Some 108 full-sized container and flat-bed truckloads were moved during the recent few months without incident and there was no damage to equipment and no safety incidents reported.
Meticulous care has been taken to ensure the plant and equipment traceability including tagging, recording and tracking every asset from the original auction item identifiers to iM3NY’s equipment and inventory tracking system and fixed asset tagging of items as they arrived in New York.
The three photos below show major items located at the Huron Campus recently received from North Carolina. Work on design and process engineering has commenced along with site preparations following the successful move of the battery manufacturing plant. Equipment manufacturers, engineers and the Imperium3 (iM3) New York team have been closely working together to meet the production time frames. Local government and environmental approvals are underway with all approvals expected in Q2 2019.
Figure 1 : Cell fabrication equipment at Huron Campus, New York.
Figure 2 : Automation robots and electrode processing equipment carefully packed and moved to Huron Campus, New York.
Figure 3 : Parts of fully automated cell formation lines with cumulative capacity of tens of thousands prismatic cells per day moved to Huron Campus, New York.
The equipment and inventory will remain in approximately 100,000sq feet of storage space while plans for the design and installation of production lines and facilities are developed over the next few months. Plans are geared towards the initial state of production during the latter stage of calendar quarter three next year in a more robust 300,000sq feet facility that is located within the adjacent storage facility on the former IBM manufacturing campus at Endicott.
Key personnel hiring will be undertaken over the next six months and the manufacturing system design will be tailored to accommodate high-volume production throughout.
Battery Sales Agreements and Partners
As announced to the ASX on 15 November 2017, a significant portion of the planned production has been presold via binding sales agreements to clients mainly in the automotive and renewables industry, with further agreements expected in the coming months.
Recently, several potential partners have held high level discussions regarding being involved with the New York battery plant through an investment. The board will assess all proposals as they are received and will update the market according.
Other NY Developments for Magnis Partner, C4V
C4V Delivers Lithium-ion Battery for Smart Grid Connected Environment
C4V achieved a major milestone in delivering its first battery towards a demonstration project that was approved under a New York State Government entity.
As announced to the ASX on 22 August 2018, the project relates to the development of a software system that combines renewable energy sources with lithium-ion batteries and demand management to create a low cost Distributed Energy Resource (DER) System. This system essentially assists in the integration of renewables into the power grid by mitigating instabilities arising from short-term fluctuations in renewable energy generation. This is of particular relevance to the New York State region, due to the large number of cloudy or overcast days that cause such short-term fluctuations.
Partners in this project include the New York State Government entities, Binghamton University, Ioxus and C4V.
C4V Solid State Battery Production
In a subsequent event to the end of the reporting period, the Company announced to the ASX on 2 October 2018, that C4V completed production of a working prototype of a Solid State Battery which was demonstrated at the 2018 NYBEST Conference in New York.
C4V’s new Solid State Battery, replaces more than 80% of the liquid electrolyte with a solid electrolyte. This effectively produces a lower cost battery that is higher capacity, higher density, higher performance, and with significantly reduced charging times than existing battery solutions. Further, C4V’s battery does not require cobalt which contributes to the reduction of costs and an increase in scalability of production without metals supply constraints.
The prototype Solid State Battery demonstrated in New York has volumetric capacities of 380Wh/kg and 700 Wh/L which is expected to increase to 400Wh/kg and 750 Wh/L through optimisation over the coming months prior to production for commercial availability by Q2 2019.
As an example of the capabilities of this battery in current implementations, the C4V Solid State Battery will be capable of delivering a 70% increase in range for electric vehicles when compared to other batteries, allowing an electric car with a current 400km range to be able to run 680km on the same single charge. C4V is working alongside commercial supply chains to further refine and optimise compositions, chemical structure, particle morphologies, and electrode processing techniques to develop solutions for tailored applications including electric vehicles, grid backup solutions, aviation, and portable electronics.
Figure 4: C4V Third Generation Solid State Battery
Townsville Battery Plant
The Company updated the market and shareholders in late August that iM3 Townsville (“iM3 Townsville”), the subsidiary of Imperium3 Pty Ltd, has formally received government approvals for the $3.1M grant supporting the feasibility study into the establishment of a 15 GWh Lithium-ion Battery (LIB) manufacturing plant in Townsville, Queensland.
The Jobs and Regional Growth Fund Assistance Agreement for the Feasibility Study into the Townsville Battery Manufacturing Facility was formally signed by iM3 Townsville directors and the State of Queensland, acting through the Department of State Development, Manufacturing, Infrastructure and Planning.
The feasibility study for the 15 GWh LIB manufacturing plant in Townsville commenced following the agreement to fast track development in June this year. Initial work has focused on selection of equipment vendor partners and the development of the manufacturing design concept. In parallel, Townsville City Council has been compiling site information and discussions with major infrastructure providers and funders have commenced. From this work, iM3 Townsville has composed a Project Description Report that backgrounds key project details, including: site specifications, battery product specifications and the manufacturing process concept.
Feasibility Study lead construction partner Probuild has established project offices in Brisbane and Townsville from where the Feasibility Study will be delivered. Planning meetings with the main study participants were recently held to map out the feasibility study process and to establish project systems and schedule future work programs.
Imperium3 Pty Ltd is an Australian unlisted company, comprised of three equal shareholders, ASX listed Magnis Resources Limited, US based Charge CCCV (C4V) and Australian unlisted company Boston Energy and Innovation (BEI).
The $3.1M Assistance Agreement is confidential between iM3 Townsville and the Queensland Government. It should be noted the Assistance Agreement has several obligations on iM3 Townsville that must be delivered, to meet the key terms of the Assistance Agreement.
The Assistance Agreement defines three distinct payment milestones associated with the staged delivery of components of the feasibility study and supporting information with the aim to have the Feasibility work fully completed in the first half of 2019.
Dendrobium Joint Development Agreement
The Company signed a Joint Development Agreement (JDA) with Dendrobium Automotive Limited (DAL), Dendrobium Advanced Technologies Limited (DATL) and Charge CCCV LLC (C4V) to produce the next generation high performing batteries including semi-solid state batteries.
Under the agreement, a working group has been created to develop and produce the next generation high performance batteries using technology developed by C4V and Magnis. Areas of co-operation include battery packaging solutions, battery hybrid systems, battery management software, battery performance testing and battery development materials.
C4V’s Generation II and semi-solid state battery technologies are targeted for DAL. C4V has been at the forefront of developing and acquiring technologies that are drop-in to existing supply chains as well as manufacturing footprints to improve performance and reduce cost to make them commercially viable.
DAL is an electric vehicle (EV) and plug-in hybrid vehicle (‘PHEV’) development and production company with an all- electric hypercar (D-1), which was engineered to an advanced concept stage by Williams Advanced Engineering
Limited part of the Williams Formula1 Group, to demonstrate its advanced technologies through dynamic performance.
DATL is an advanced engineering company specialising in performance technology and component design and development including battery development and packaging systems for EV’s and PHEV’s.
Funding and Significant Investment
The Company announced in early September that AL Capital Holding (“ALC”) had invested $11.1M in Magnis for a 4.98% equity holding in the Company. The investment was via a placement of 30,000,000 shares issued at $0.37 per share.
A few weeks following this investment, ALC advised the market that it had increased its holdings in the Company with an initial substantial holding notice to indicate their investment holding had increased to 5.5% in Magnis through some on-market purchases. Magnis welcomes the ALC investment and support as it is a testament of the projects and technologies that the Company is attempting to develop.
The cash position for the Company at 30 September 2018 was A$8.5M. On 12 September 2018, the Company announced to the ASX that it had completed the transaction to acquire a 10% interest in battery technology group C4V. As part of the completed transaction, US$1M in cash was paid to C4V.
Further to the recent news on the placement to ALC, The Hon. Warwick Smith, AM was appointed as a non-executive
director of the Company. Warwick is Executive Chairman of ALC.
Mr Smith has extensive public policy and commercial acumen and a wealth of experience from national and international business relations in a variety of industries including property, financial services, natural resources, energy, transportation, heavy machinery and equipment, health, media, technology and entertainment. He is currently a director of Seven Group Holdings (ASX: SVW) and director of Estia Health Ltd (ASX: EHE). He is currently Chairman of the Australia China Council, Chairman Emeritus of the Asia Society Australia and Global Trustee of the Asia Society, Chairman of the Advisory Board of the Australian Capital Equity Group of companies, and a director of Coates Hire, ANZ Bank China and Chair of ANZ Bank Thailand.
Tanzania – Nachu Graphite Project (NGP)
The NGP in Tanzania continues to progress. During the quarter, re-demarcation of the Special Mining Licence area for the NGP in order to be compliant with the new mining regulations requirements was completed. The pegging included setting two metre high posts and short trenches in the directions of the boundary and updating peg details to include owner, mineral and licence number information.
As part of Corporate Social Responsibility, the Company through its subsidiary, Uranex Tanzania Limited, prepared and presented maps to the Ruangwa District Authority. The maps highlight the location of all schools in the District and will assist with planning and fund distribution by authorities. An assessment of schools in terms of materials and infrastructure continued during the period with the support of the District school officers.
Australia isn't a producer of graphite (yet), but three states in the country are home to millions of tonnes of reserves and resources.
Graphite has been growing in popularity in recent years as its applications as a battery mineral are realised, and as the popularity of electric vehicles grows around the world.
A form of carbon, graphite is a good conductor and is invaluable in electronics. It comes in three different forms, each with their own valuable applications in modern technology, making it a sought-after commodity without which supply lines for many industries around the world would grind to a halt.
Graphite isn't produced in Australia (yet), but the country sits on 1.05 million tonnes of ore reserves, and 7.14 million tonnes of economic demonstrated resources (EDR), as per 2017 government data — and those numbers are way up from the previously disclosed data from Canberra in 2013.
But back to Australia, whose graphite reserves and EDR are shared between three states: Queensland, with 1.32 million tonnes EDR, South Australia, where 4.72 million tonnes EDR can be found, and Western Australia, which is home to 1.1 million tonnes EDR.
Exploration is on the up in Australia and around the world for graphite, with demand for the mineral set to grow thanks almost solely to the proliferation of electric vehicles.
The Australian government is cognizant of this development, reporting that it is confident interest in the mineral will not only remain high, but will increase as time goes on. In fact, graphite is classified by the nation's government as a critical mineral, and the country has dedicated significant resources to researching market gaps and opportunities available.
The government has identified five projects between Western Australia and South Australia that have the potential to bring Australia to the table when it comes to production.
However, as of the most recent government report, none of them are producing. One asset is being explored, another is in the prefeasibility stage and the remaining three are in the feasibility stage.
The most developed projects appear to be Mineral Commodities' (ASX:MRC) Munglinup project in Western Australia, where a definitive feasibility study was completed in early 2020, with a final investment decision targeted in 2023, and Renascor Resources' (ASX:RNU) Siviour project on the Eyre Peninsula in South Australia, which has a final investment decision slated for 2022.
Renascor has hopes for production to begin by the end of 2023, and has signed memorandums of understanding for 100 percent offtake agreements. The company boasts that Siviour, which had a definitive feasibility study completed recently — is the world's second largest proven reserve of graphite, and the largest graphite reserve outside of Africa.
For its part, the Munglinup project in Western Australia is Mineral Commodities' second major graphite project, behind its flagship Skaland project in Norway. Munglinup is in the far south of Western Australia, near the port city of Esperance — giving it fantastic transport options.
Both Munglinup and Siviour, if they proceed in coming years, would produce 132,000 tonnes of graphite between them in the early stages — putting Australia well and truly on the leaderboard globally when it comes to graphite production.
The remaining projects — though not as developed or as far along with investment planning — would add another 178,000 tonnes of graphite production if they are constructed as envisaged.
As boasted by the Australian government, "the only direction for Australia's graphite production is up" — though that is indeed a reflection of the fact that current graphite production is exactly zero.
More broadly, Australia is positioning itself to take advantage of wider industry gains across the electric vehicle market, and to present itself as a reliable trading partner. Graphite, like rare earths, is classed a critical mineral by both Australia and the US — and its use extends beyond technology and into national security as well given its applications as a heat-resistant material.
Don't forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Sydney, Australia – New Energy Minerals Limited is pleased to provide an update to the market in relation to the Company’s activities for the period ending 31 December 2020. Corporate Update New Project Acquisition The Company has previously announced with the closing of the Balama Sale Transaction on 17 July 2020 that it has no further operations in Mozambique and that the closing also represented a disposal of its …
Sydney, Australia (ABN Newswire) – New Energy Minerals Limited (ASX:NXE) (FRA:GGY) (OTCMKTS:MTTGF) is pleased to provide an update to the market in relation to the Company’s activities for the period ending 31 December 2020.
New Project Acquisition
The Company has previously announced with the closing of the Balama Sale Transaction on 17 July 2020 that it has no further operations in Mozambique and that the closing also represented a disposal of its main undertaking as previously approved by shareholders at a general shareholder meeting on 13 May 2020.
Subsequently, the Company agreed to acquire a new mineral project and on 13 October 2020 requested a trading halt pursuant to ASX Listing Rule 17.1 pending announcement of a project acquisition.
On 13 November 2020, the ASX suspended the Company from official quotation pending the release of an announcement regarding an acquisition and that the Company’s securities will remain suspended until it has recomplied with Chapters 1 and 2 of the Listing Rules, including the issue of a prospectus.
Arena Investors Dispute
Confidential settlement negotiations with Arena have continued during the quarter and the Company expects to be able to make a further announcement in this regard during the first quarter of 2021.
Appointment of experienced technical directors
On 18 November 2020, the Company announced the appointment of Dr Bernard Olivier and Dr Evan Kirby to the Board of the Company in conjunction with the resignation of Mr Paul Ching and Mr Jackie Lee. Both were nominated to the Board by the Company’s largest shareholder UBezTT International Investment Holdings (BVI) Ltd.
To view the report, please visit:
About New Energy Minerals Ltd:
New Energy Minerals (ASX:NXE) is an ASX listed junior mining company, that recently announced the divestment of the Company’s Caula vanadium – graphite project and the Montepuez Ruby project in Mozambique.
New Energy Minerals Ltd
News Provided by ABN Newswire via QuoteMedia
Syrah remains engaged in progressing the feasibility study for the scale-up of the Vidalia facility post-product qualification.
Graphite producer Syrah Resources (ASX:SYR,OTC Pink:SYAAF) said it is temporarily suspending operations at its Vidalia battery materials plant in the US state of Louisiana following a state-wide “Stay at Home Order” to fight the spread of COVID-19.
The order, issued on Sunday (March 22), will be in effect until April 13, with Syrah saying it does not meet criteria for exclusions under this regulation.
“This will delay the distribution of purified natural graphite samples for qualification with potential customers whilst the Stay at Home Order remains in place,” the company said in a press release.
Right now, Syrah’s team is working remotely to progress the feasibility study for the scale-up of the Vidalia facility post-product qualification.
The US plant, which the company purchased for US$1.23 million, produced its first unpurified spherical graphite at the end of 2018, with qualification samples dispatched to target customers in early 2019. The facility has environmental permits in place and an initial milling capacity of 5,000 tonnes per year.
Syrah’s Balama graphite project in Mozambique, which is the largest natural graphite operation outside of China, remains operational at this time.
“The company continues to monitor and assess the international mobility of personnel, the free movement of goods through supply chains and broader market conditions,” Syrah said, adding that it continues to strengthen protocols in response to COVID-19 risks at the asset.
Back in September, the company reduced production volumes to 5,000 tonnes per month at Balama due to volatility in the market. Syrah said it has continued its moderated production strategy into Q1 of this year as planned, seeking to match production volumes with market demand.
“Despite the near-term uncertainty due to COVID-19, the long-term market fundamentals for natural flake graphite remain intact, with ongoing commitment to the decarbonisation of the transport sector via lithium ion powered electric vehicles by supply chain participants and governments,” the company said.
Syrah expects its end-of-quarter cash balance to be broadly aligned to guidance of US$64.6 million.
On Tuesday (March 24), Syrah was trading up 2 percent at AU$0.23. However, the company’s share price has been suffering since the start of the year, and is down more than 50 percent since January.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
“Australia has the opportunity to be a green energy powerhouse if it has the political will and foresight, endowed with vast reserves of lithium, nickel, copper, rare earths, uranium and plenty of wind and sun to drive renewable energy production.”
— David Franklyn, Argonaut
“Industrial metal prices will continue to rise, supported by lack of supply and rising demand as the globe continues to recover and restrictions lift. With copper and aluminium stock already running low, development could send prices back towards — and potentially above — the record levels seen last year. Commodities and energy stocks will likely remain the best performers — they are so far in 2022.”
— Jessica Amir, Saxo
The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.
At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.
So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.
Western Australia’s International Graphite (ASX:IG6) has signed a non‐binding Memorandum of Understanding (MOU) with ZEN Energy with the objective of concluding binding agreements for the purchase of firmed renewable energy from ZEN Energy by International Graphite for its Collie operation
ZEN Energy, whose major shareholder is leading climate change economist Professor Ross Garnaut, is a renewable energy retailer that currently supplies the electricity needs of the South Australian Government, CSIRO’s sites in the eastern states, a set of commercial and industrial businesses in the SACOME Buying Group and twenty‐five local regional councils in New South Wales. ZEN is assessing the feasibility of building a 200MW, 600 to 800MWh battery at Collie, south of Perth. The battery would be around four times the size of Tesla’s big battery in South Australia.
International Graphite is developing downstream graphite processing facilities in Collie. This facility will undertake research and development activities and conduct pilot testing of graphite concentrates for purification and spheroidising of graphite for Battery Anode Material (BAM) applications, as well as produce micronised graphite. It is the Company’s intention to expand the facility to commercial scale production.
The power supply agreement with ZEN Energy would provide a renewables power source to drive the graphite technologies that International Graphite plans to develop at its downstream processing facility. This will help the company achieve its targets for low carbon emissions and facilitate rapid production expansion in the future.
Both International Graphite and ZEN Energy are supported by the Western Australian Government, which awarded International Graphite $2m through the Collie Futures Industry Development Fund toward the establishment of a graphite micronising plant at Collie and up to $1 million for the first stage of ZEN’s big battery feasibility study.1 This investment by the WA Government in both projects demonstrates its commitment to build Collie as a future centre of renewable energy projects in Western Australia.
International Graphite Executive Chairman Phil Hearse said access to renewable energy underpins our ability to deliver highly ESG accredited products into global markets.
“A critical supply of green power gives International Graphite an important advantage, helping ESG and environmental objectives, as well as supporting a new supply chain that will bring jobs to Collie and opportunity to Western Australia,” Mr Hearse said.
ZEN Energy’s big battery would help manage wholesale market risk in a program to supply renewable energy to new and existing industrial projects in Collie. It is expected to be a key feature in a new Collie Battery and Hydrogen Industrial Hub Project, which is the centrepiece in the Western Australian Government’s $100m strategy to create a major renewable energy centre in Collie and transition the local economy away from coal.
ZEN Energy CEO Anthony Garnaut said, “We are committed to creating practical energy supply solutions for customers seeking to grow their business on a sustainable footing.”
“Successful cooperation with International Graphite strengthens the commercial case for a big battery in Collie and provides a practical demonstration of how Australia can become a renewable energy superpower.
“There are additional benefits that a large battery will bring to the Western Australian grid. For example, it will support the continued investment of West Australian households in roof top solar by providing the ability to soak up excess solar energy, reducing the need to curtail residential solar production.”
This announcement has been authorised for release by the Board of Directors of International Graphite.
This article includes content from International Graphite , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Interested in gold in Australia? Here's a brief overview of what investors should know about where the yellow metal is found in the country.
With gold in focus due to Russia's invasion of Ukraine, some experts are expecting its price to reach all-time highs as investors seek traditionally safe-haven investments.
If you’re interested in investing in gold right now, you may want to turn your attention to Australia, which is currently the second largest gold-producing country in the world.
Read on for a breakdown of gold in Australia, including a look at how each state and territory contributes.
As mentioned, Australia is currently the second largest gold-producing country globally, just behind China. Gold production in the country reached a high of 330 tonnes in 2021, up from 328 tonnes the previous year.
“There are three countries that combine the rule of law with significant gold production: Canada, the US and Australia. Outside of these three, there’s not much gold, or there’s not much protection for individual investors and companies,” Kevin McElligott, managing director of Australia at Franco-Nevada (TSX:FNV,NYSE:FNV), explained to the Investing News Network in a 2019 email interview.
According to the Office of the Chief Economist, Australian gold mine production is forecast to rise at an average annual rate of 8 percent from 2020 to 2021 and 2022 to 2023. Anticipated production of 374 tonnes by 2022 to 2023 will be propelled by both production from new mines and existing mine expansions.
Western Australia is the centre of gold exploration activity in the country, accounting for 70 percent, or AU$1.07 billion, of total gold exploration expenditure. In 2022, the Fraser Institute named Western Australia the best mining jurisdiction in the world. Its Pilbara region is a big part of why the state is attracting attention.
In recent years, Pilbara exploration activity has seen renewed interest and helped increase the country’s consistent gold output. Covering more than half a million square kilometres, the region has attracted major miners like Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) and BHP (ASX:BHP,NYSE:BHP,LSE:BHP).
Western Australia accounts for the bulk of the country's gold output, and the geology of the Pilbara Craton has been compared to South Africa’s Kaapvaal Craton and Witwatersrand Basin. Witwatersrand is home to the Earth’s largest known gold reserves and is responsible for over 40 percent of worldwide gold production.
Both the Pilbara and Witwatersrand are similar in age and composition, sitting on top of the Archean granite-greenstone basement. The Pilbara area hosts numerous small mesothermal gold deposits containing conglomerate gold — mineralization known to hold large, high-grade gold nuggets.
Click through the links below to learn more about gold mining in Australia's states and territories. The data used is from Geoscience Australia, and the 2018 gold production numbers are the latest available.
As mentioned, Western Australia is a gold powerhouse, and its output stands well above that of its fellow Australian states and territories, measuring at 211 tonnes in 2018.
New South Wales has a long history with gold, being the home of the first Australian gold rush in the mid-1800s, which helped kickstart the then-colony’s burgeoning economy. Gold found in Central New South Wales triggered an obsession with mining that burned for decades. In 2018, the state's production was 39 tonnes.
Queensland may be best known for its coal exports, but the state is dotted with active mines, with a modest collection that produce gold. It put out 18 tonnes of the yellow metal in 2018.
The Northern Territory produced only 15 tonnes of gold in 2018, but over its lifetime more than 20 million ounces have been pulled out of the ground in the region. The Pine Creek, Tennant Creek and Tanami goldfields are the primarily places where this metal has been extracted.
Victoria also has a strong gold-mining history, although today it's a smaller-scale producer. In 2018, 13 of the 315 tonnes of gold mined in Australia came from Victoria from seven active mines — most of which are located within regions known for vast historical output of the yellow metal
South Australia isn't a major gold miner, although it accounts for over a quarter of the country’s gold resources — in 2018, just 8 tonnes of gold were mined in the state. However, the area has potential, with a major geological region — the Gawler Craton — identified by the government and mineral explorers as being of extreme interest.
Tasmania is geologically diverse with a number of major operating mines, but it is not a significant gold producer. Its output of the precious metal clocked in at only 1 tonne in 2018.
This is an updated version of an article originally published by the Investing News Network in 2019.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Matthew Flood, currently hold no direct investment interest in any company mentioned in this article.
Wondering about the future of hydrogen in Australia? Here's an overview of investing in hydrogen in the country.
Thanks to technological advances and massive new investments made by the public and private sector, the industry is now making the critical transition towards clean "green" hydrogen — in other words, hydrogen that is produced via zero-carbon and low-carbon energy sources.
Australia, like most western nations, is determined to decarbonise its economy as part of the global transition toward renewables. Many industries now face strict targets for reducing emissions as part of the drive to lessen the carbon footprint left by Australia's steel and coal industries.
Although hydrogen is generally seen as a long-term investment play given the many years it takes to build new plants and add capacity in the market, last year saw investors rush to get in on the ground floor of the rapidly expanding Australian green energy market as smaller players began to make their mark.
In 2021, the ASX hydrogen sector saw some exponential gains in the share prices of several up-and-coming players, including Province Resources (ASX:PRL), Pure Hydrogen (ASX:PH2), Sparc Technologies (ASX:SPN), Environmental Clean Technologies (ASX:ECT) and QEM (ASX:QEM). These five companies led the way in driving interest in the kind of opportunity that the Australian hydrogen industry represents, both in the short and long term. Several key public/private partnerships also played a role in stimulating market interest.
Hydrogen is the most abundant element on Earth. It is a colourless gas that can be burned to generate electricity, or alternatively can be combined with oxygen atoms in fuel cells. Hydrogen can be produced in gas or liquid form, and has the ability to replace fossil fuels in household heating, transportation and industrial manufacturing processes like steelmaking, which consumes massive amounts of power.
As a fuel, the great advantage of hydrogen is that it produces no carbon emissions, only water as a by-product. First discovered 250 years ago by English physicist Henry Cavendish, hydrogen was initially used in combination with oxygen to power internal combustion engines, hydrogen gas blowpipes and hydrogen gas lamps. It was later used in the construction of hydrogen-lifted airships and German Zeppelins until passenger service was abandoned after the tragic 1937 explosion of the Hindenburg Zeppelin in New Jersey, which killed 36 people.
Currently, the hydrogen market is valued at over US$100 billion, with the material being used widely as an industrial chemical, mainly by the petroleum industry for the production of ammonia, a principal ingredient in the manufacturing of nitrate fertiliser.
There is also growing demand for hydrogen by companies anxious to harness its properties as an effective means of storing power. But none of these applications for hydrogen compare to its extraordinary potential as a viable clean energy fuel for transportation ― particularly in trucks, airplanes and ships.
These essential means of transportation are difficult to decarbonise due to the weight of batteries and their inability to hold sufficient charge for long-haul trips. Hydrogen, however, offers a much lighter alternative as a clean-burning fuel that would go a long way to eliminating carbon emissions in the transport sector.
Aside from the smaller-cap companies mentioned above, several major Australian energy companies, including Fortescue Metals Group (ASX:FMG,OTCQX:FSUMF), Origin Energy (ASX:ORG,OTC Pink:OGFGF) and Wesfarmers (ASX:WES,OTC Pink:WFAFF), are now rapidly expanding their investment in the hydrogen sector.
Clearly, if hydrogen is now in the process of realizing its potential as a replacement for oil- and coal-generated electricity, the leading steel, coal and gas producers may be well-positioned to bring about this shift in the energy mix. They possess the requisite financial might and technological/engineering expertise to become dominant players in the hydrogen sector as they assume their role in the transition from fossil fuels to renewable energy.
Aiding this growth in Australia's hydrogen industry is government support. The EU, for example, paid nearly half of the US$23 million cost of Shell’s (LSE:SHEL,NYSE:SHEL) Rhineland project, while Queensland has partnered with Fortescue on a AU$1 billion hydrogen project in Gladstone.
Last year alone saw a doubling in the number of newly announced large-scale hydrogen projects to over 500, as per a Hydrogen Council report. Nearly 75 percent of these long-term plant, port and pipeline projects are expected to be completed by the end of the decade, with 40 percent already funded or under construction.
Meanwhile, the Australian government is in the process of investing AU$1.4 billion in its domestic hydrogen industry as part of a growing global drive towards net-zero emissions. Australia's National Hydrogen Strategy intends to grow this industry and position Australia as a major player by 2030.
Aside from that, Australian Prime Minister Scott Morrison has set out an Australian technology roadmap that intends to pour a total of AU$20 billion into clean hydrogen, energy storage, low-emission steel and aluminium, carbon capture and storage and solar.
In June 2021, Morrison announced a joint hydrogen development program with Germany under which Australia will gain access to highly advanced German hydrogen technology, strengthening Australia's ambitions of becoming a leading hydrogen exporter. This will help Australia build up its capacity to export significant quantities of hydrogen to Germany as part of the European country's policy to reduce reliance on fossil fuels.
Australia will also be partnering with Japan (to develop new hydrogen fuel cell technology and establish the world's first clean liquefied hydrogen export pilot project), Singapore (to accelerate low-emission technologies) and Korea (to collaborate on hydrogen supply chain research and low- and zero-emission technology).
The promise of Australia's hydrogen market is strong — indeed, the Australian Renewable Energy Agency believes the space could be worth up to AU$10 billion annually by 2040, at which time the country would be putting out over 3 million tonnes of renewable hydrogen on a yearly basis.
But putting matters into perspective, proposed long-term investments in transitioning towards hydrogen are still dwarfed by Big Oil's average annual expenditure on developing new fields.
In today's early stages, investors looking to enter Australia's hydrogen space have plenty of choices, whether they want to start with the larger players or try their hand at determining which earlier-stage stocks will be successful.
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Securities Disclosure: I, Harold Von Kursk, currently hold no direct investment interest in any company mentioned in this article.