Are underrated reserves the saving grace of the Australian mining sector? This appears to be so with the latest opportunities to revive the badly-hit industry in the midst of the country’s economic crisis.

Proactive Investors Australia reported that a 7,000-metre, high-impact reverse circulation drilling program started at eastern Laverton in Western Australia. Miners will be drilling prospective holes from the mine, especially those that tested of nickel sulphide mineralisation. It has been analysed that the holes have “high tenor disseminated nickel sulphides” that are laterally open and at depth.

Nickel mining in the town of Laverton is unheard of in the local mining sector. Kalgoorlie, where the largest open cut gold mine in Australia, Super Pit Mine, is located, is among the more popular locations for miners to explore for nickel, iron ore, and other industrial base metals.

However, drilling programs in Laverton, most particularly in the eastern side of the town, was spurred by the discovery of nickel sulphide mineralisation at Desert Dragon North back in 2012.

New Industry Strategy

Since China’s reduction of mineral imports from major producers, iron ore and other base metal prices have taken a long tumble, hurting Australia’s economy to a degree, BBC reported in January. It has also resulted in the cancellation of future infrastructure projects and even job losses in local Australian mines.

Fear surrounding the struggling mining industry can be somewhat compensated by new steps taken by the administration of newly-appointed Prime Minister Malcolm Turnbull. Moreover, his latest resource minister, Josh Frydenberg, is confident about the sector’s growth despite the slide in base metals prices and accelerated efforts from China and potential market leaders such as Russia.

Russia is home to Amur Minerals Corporation’s (London AIM: AMC) Kun-Manie mine in Amur Oblast, a potentially large reserve that has JORC resources in excess of 830,000 nickel equivalent tonnes and contains by-products of copper and other valuable base metals, more than enough to lift up base metals demand. The company has since produced a positive 2015 interim report , and has mobilised ground operations in anticipation of the awarding of its production license by the Russian federation.

“Australia and Western Australia in particular have been great beneficiaries of the decade-long super-cycle which saw record prices and record demand for our commodities. Clearly with the slowdown of China we’re moving back towards normalised, cyclical patterns. That being said, resources and energy are absolutely central to Australia’s economic growth and prosperity today and into the future,” he told West Australian.

Frydenberg added that aside from the government injecting 400 billion dollars in resource investment projects, he is also keen to revamp the current tax system, boost productivity, and reduce regulations in the resource sector, which could encourage more mining explorations in underrated locations like Laverton. Moreover, he also said that he will be pursuing potential consumers to grow demand in Australia’s mining resources from new markets.

Brand Positioning

Aside from the public promises and proposed initiatives delivered by the current Turnbull administration, the government of Australia appears to be keen in keeping the same message halfway across the world: that the country is and will keep being one of the world’s industry leader and mining superpowers.

In Sub-Saharan Africa, the Australian High Commission in Abuja and Murdoch University are said to be finalising the specifics of its educational partnership with the Nigerian mining sector. Punch NG reported that the partnership, which will be coordinated by the university’s Africa Research Centre, will host discussions including policy research on the economic benefits of growing the local mining industry in Africa.

Africa, being the second biggest continent in the world in terms of land coverage, has the biggest treasure trove of base minerals ripe for exploration and extraction.

Australian High Commission Public Affairs Officer Hope Ayabina said in a statement that he is hopeful that the workshop “is one way in which Australia as a leader in many aspects of mining production technology and management is helping to boost the sector in Nigeria.”

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