NEWS
Global iron ore production to recover by 5,1 % in 2021
Global iron ore production fell by 3 % to 2,2-billion tonnes in 2020 . Global production is expected to grow at a compound annual growth rate ( CAGR ) of 3,7 % to 2 663,4-million tonnes between 2021 to 2025 . The key contributors to this grow will be Brazil ( 6,2 %), South Africa ( 4,1 %), Australia ( 3,2 %) and India ( 2,9 %). Key upcoming projects expected to commence operations include South Flank in Australia ( 2021 ), Zulti in South Africa ( H2 2021 ), Serrote Da Laje in Brazil ( H2 2021 ) and Gudai-Darri ( 2022 ), according to GlobalData , a leading data and analytics company .
Vinneth Bajaj , associate project manager at GlobalData , comments : “ Declines from Brazil and India were major contributors to the reduced output in 2020 . Combined production from these two countries fell from a collective 638,2 Mt in 2019 to an estimated 591,1 Mt in 2020 . The reduced output from the iron ore giant , Vale , was the key factor behind Brazil ’ s reduced output , while delays in the auctioning of mines in Odisha affected India ’ s output in 2020 . “ Miners in Australia were relatively unaffected by COVID-19 due to effective measures adopted by the Australian Government , while a speedy recovery in China led to a significant 10,4 % increase in the country ’ s iron ore output .”
Looking ahead , the global iron ore production is expected to increase by 111,3 Mt to 2 302,5 Mt in 2021 . Rio
Tinto is expected to produce up to 340 Mt of iron ore , while BHP has released production guidance of 245-255 Mt , supported by the start of the Samarco project in December , which is expected to produce between 1-2Mt . The company has retained its guidance for Australian mines at 276-286 Mt on a 100 % basis , due to scheduled maintenance work at its ore handling plant and tie-in activity at the Area C mine and South-Flank mine .
Bajaj continues : “ The remaining companies are expected to produce more than 600 Mt of iron ore , including FMG , whose production is expected to range between 175-180 Mt supported by its Eliwana mine that commenced operations in late December 2020 , and Anglo American , which is expecting to produce between 64-67 Mt . Vale is expected to resume 40 Mt of its production capacity , taking its overall production capacity to 350 Mt in 2021 , with production guidance of 315-335 Mt .”
GoviEx Uranium Announces Chirundu Mining License in Zambia has been Re-instated
GoviEx Uranium Inc is pleased to announce that it has received a letter from the Mining Cadastre Department of the Republic of Zambia notifying the Company that the previously cancelled Chirundu Mining License ( 12634-HQ-LML ) has now been re-instated . “ We are very pleased and warmly welcome the decision made by the Mining Cadastre concerning the reinstatement of the Chirundu mining license and believe this decision was well considered and in the best interests of all stakeholders both in Zambia and abroad . The Zambian Government has indicated its strategy to diversify its mining industry from the heavy weighting of base metals and advancing its longterm desire to include uranium and clean baseload nuclear power as part of its economic development plans .
As the uranium market improves , the Company plans to reinvigorate the development of the Mutanga Project starting with targeted resource
exploration drilling later this year . We look forward to advancing and deepening our long-term and mutually beneficial relationship with the Republic of Zambia ,” stated GoviEx ’ s Executive Chairman Govind Friedland .
The Chirundu Mining License was acquired from African Energy Resources Ltd . ( ASX : AFR ) in October 2017 and includes the Njame and Gwabe mineral deposits . These deposits were subsequently included with the Mutanga , Dibwe and Dibwe East deposits in the technical report titled , “ NI 43-101 Technical Report on a Preliminary Economic Assessment of the Mutanga Uranium Project in Zambia ”, dated November 30 , 2017 , prepared by SRK Consulting ( UK ) Limited for the Company ( the “ PEA ”).
The PEA reported a Net Present Value (“ NPV ”) at long-term uranium price of US $ 58 / lb U3O8 and a 9 % mining royalty rate , an after-tax NPV of US $ 112 million
( at 8 % discount rate ) with an internal rate of return ( IRR ) of 25 %. The PEA is preliminary in nature , it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves , and there is no certainty that the PEA will be realized .
Since acquiring the Chirundu Mining License , GoviEx has ensured all statutory reports and payments have been made , and in addition has expanded its Community and Social Responsibility programs to cover the villages within the Chirundu Mining License , including the reconstruction of a school and the commencement of an adult education program . The reinstatement of the Chirundu Mining License ( 12634-HQ- LML ), is subject to completion of certain exploration and development milestones to advance the license towards final feasibility study .
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