Exploration geologists are a funny bunch. No matter the weather, market conditions or commodity outlook, they can normally put a positive spin on it. It probably has something to do with the fact that the probability of them finding an economic deposit is less than 0.1%.
So, once again, for the first week in August, Kalgoorlie-Boulder, the heart of Australia’s gold mining industry, played host to the annual Diggers & Dealers Mining Forum.
In a week that saw a lot of red on the screen, the ever hopeful explorers and miners showed their wares and told their stories to a largely receptive audience. The conference organisers declared record numbers of 2,800 attendees, however the large numbers of ancillary events and site visits made it feel decidedly less in the big tent.
The forum kicked off with a powerful keynote address by the Hon. Kim Beazley AC, former Governor of Western Australia. Beazley’s speech set the tone for the conference, emphasizing the critical need for government intervention in the rare earths sector. He argued that Australia must take decisive action to secure its position in the global market by investing in domestic production and reducing reliance on Chinese imports. Beazley’s call for taxpayer funds to support the mining industry resonated with many attendees, highlighting the strategic importance of rare earth elements in the modern economy. There would have been a lot of head nodding from Amanda Lacaze from Lynas Rare Earths, a company that is changing the Kal landscape with a shiny new plant on the western outskirts of town.
The forum featured a series of compelling presentations from some of the biggest names in the mining industry. Northern Star Resources’ Simon Jessop discussed the company’s ambitious expansion plans and its commitment to sustainable mining practices. Lynas Rare Earths’ Amanda Lacaze provided an update on the company’s operations and its strategic partnership with California-focused MP Materials, emphasizing the importance of collaboration in the rare earths sector.
Fenix Resources’ John Welborn shared insights into the company’s recent successes and future projects, while IGO Limited’s Ivan Vella highlighted the company’s innovative approaches to nickel mining, something that has gone from a nice-to-have to a must-do in the face of low-cost Indonesian production. Westgold Resources’ Wayne Bramwell presented the outline for future growth following the company’s merger with Karora Resources, all the while marvelling at the spectacular performance of the gold price over the past few years.
No conference is complete without a bit of gossip, and Diggers & Dealers 2024 was no exception. One of the most talked-about moments was the surprise appearance of Federal Opposition Leader Peter Dutton, who reignited the debate on uranium mining in Australia. His presence sparked discussions on the future of nuclear energy and its potential role in Australia’s energy mix. We hear that no one is exempt from having a pass to enter the big tent, with Dutton and his advisors forking out decent dollars for a quick once around the marquee.
Whether it is just the state of the markets or some of the participants are just getting a little long in the tooth, many of the after hours broker events seemed a bit less rowdy than in previous years, although they all seemed to stick in their lane and keep the same schedule as previous years. Late night pizza bars and the taxi industry (no Uber in Kal) were huge beneficiaries of punters throwing back a few frothies, with a 5 minute ride down the road setting you back $20.
Fittingly for a place like Kalgoorlie, gold was a standout performer at this year’s forum. With record-high prices, gold stocks have been a bright spot in an otherwise challenging market for new energy minerals. Presentations from companies like Bellevue Gold and Regis Resources underscored the resilience and profitability of gold mining operations. Analysts and miners alike expressed confidence in gold’s continued strength, citing its historical role as a safe-haven asset in times of economic uncertainty.
Boss Energy’s Duncan Craib took to the stage to defend the uranium sector amid what he described as “stale yellowcake sentiment”. Craib argued that uranium has a critical role to play in the global energy transition, particularly as countries seek to reduce their carbon footprints. He called for greater support from both the government and the public to ensure the sector’s long-term viability. He was talking to a receptive audience, with many seeing the current WA uranium mining ban as an impediment to the development of a profitable new mining sector here.
With perfect weather this year, the Diggers & Dealers Mining Forum 2024 was a resounding success, offering valuable insights, fostering important discussions, and providing a platform for industry leaders to share their visions for the future. For retail investors and mining professionals alike, the forum was a reminder of the dynamic and ever-evolving nature of the mining sector. The relative absence of the super majors might be a forebearer of the changing of the guard.
As we look ahead to the next year, one thing is clear: the mining industry remains a cornerstone of Australia’s economy, and events like Diggers & Dealers are essential in shaping its future.
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