Kagara Ltd

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]

Kagara Ltd
IndustryMining
Founded1981
Defunct2014
Websitewww.kagara.com.au

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]

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]

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]

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]

References

  1. "KAGARA LTD (KZL:ASX)". Bloomberg Businessweek. Archived from the original on 9 October 2012. Retrieved 12 January 2011.
  2. "Miner Kagara calls in administrators". Herald Sun. 30 April 2012.
  3. Serenc, Michael (5 September 2014). "Liquidator muzzles Kagara creditors". Cairns Post. Archived from the original on 29 June 2015. Retrieved 27 June 2015.
  4. "Kagara begins Mt Garnet mine construction". Reed Business Information. 13 June 2002. Archived from the original on 12 May 2008. Retrieved 12 January 2011.
  5. "Australia's Kagara to cut zinc output on lower prices". Reuters. 29 October 2008. Retrieved 12 January 2011.
  6. Jo Black (11 June 2008). "Kagara to purchase Maitland copper deposit". Metal Markets. Archived from the original on 26 July 2011. Retrieved 12 January 2011.
  7. "Kagara sees nickel mine start in 3 months". Mining Journal. 11 May 2009. Archived from the original on 4 March 2012. Retrieved 12 January 2011.
  8. "Kagara nickel JV produces first ore". The Sydney Morning Herald. 6 January 2010. Archived from the original on 31 December 2010. Retrieved 12 January 2011.
  9. "KAGARA LTD (KZL.AX)". Reuters. Archived from the original on 1 February 2013. Retrieved 12 January 2011.
  10. "Australian Copper Mining Company, Kagara Receives Approaches For Sale of Gold Asset". Mining Exploration News. 19 April 2009. Archived from the original on 27 July 2011. Retrieved 12 January 2011.
  11. "Guangdong Foreign Trade Group to buy Kagara stake". China Economic review. SinoMedia Holdings. 12 June 2009. Archived from the original on 26 July 2009. Retrieved 12 January 2011.
  12. "China gets nod to buy into miner Kagara". Associated Press. 9 July 2009. Archived from the original on 14 July 2011. Retrieved 12 January 2011.
  13. "Kagara to raise $76m for gold spin-off". WA Business News. 16 April 2010. Archived from the original on 20 February 2011. Retrieved 12 January 2011.
  14. Cole Latimer (19 April 2010). "KAGARA SPINS OFF GOLD". Australian Mining. Archived from the original on 6 July 2011. Retrieved 12 January 2011.
  15. "Chinese firm to take 16pct stake in Kagara's gold spin-off". China Mining Association. 17 May 2010. Archived from the original on 25 July 2011. Retrieved 12 January 2011.
  16. Barry FitzGerald (23 February 2009). "Kagara goes for gold in nick of time". The Age. Archived from the original on 30 January 2010. Retrieved 12 January 2011.
  17. "Kagara Plans Feasibility Study for Admiral Bay". Engineering & Mining Journal. Mining Media International. 14 September 2010. Archived from the original on 10 July 2011. Retrieved 12 January 2011.
  18. Rebecca Le May (12 October 2010). "Kagara plans Copper Strike takeover". The Sydney Morning Herald. Archived from the original on 8 September 2012. Retrieved 12 January 2011.
  19. Barry FitzGerald (13 October 2010). "Kagara looks to boost zinc/copper assets through bid for Copper Strike". Brisbane Times. Archived from the original on 6 October 2012. Retrieved 12 January 2011.
  20. Michael Bennet (13 October 2010). "Kagara bids for rival Copper Strike". The Australian. Archived from the original on 20 October 2010. Retrieved 12 January 2011.
  21. Ricky Roxas (13 October 2010). "Copper Strike calls Kagara takeover bid as highly opportunistic". International Business Times. Archived from the original on 22 July 2011. Retrieved 12 January 2011.
  22. Barry FitzGerald (18 October 2010). "Kagara bid beholden to a Hong Kong mystery mob". WA Today. Archived from the original on 27 September 2012. Retrieved 12 January 2011.
  23. Esmarie Swanepoel (26 November 2010). "Kagara responds to Copper Strike target statement". Mining Weekly. Archived from the original on 23 October 2012. Retrieved 12 January 2011.
  24. "Kagara Copper Unaffected by Flood". Indonesia Today. 12 January 2011. Archived from the original on 14 January 2011. Retrieved 12 January 2011.
  25. Esmarie Swanepoel (12 January 2011). "Kagara keeps FY production forecast unchanged". Mining weekly.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.