News Wrap

IN THIS morning’s News Wrap: Mining exploration is on the rise according to executives; open interest signals extended zinc rally; and Australian miners leave clean-up bill after taking the cash.

Lou Caruana

Mining exploration is on the rise according to executives

Drill bits are being plunged back into the ground across the county as mining companies begin to pour more cash into discovery efforts after a sustained departure from exploration over the past few years, according to the Australian Financial Review.

“Around Kalgoorlie the past couple of days, people are talking about the drill rigs getting busier,” Dacian Gold managing director Rohan Williams said.

Dacian is one of a number of mining companies, particularly in gold, with drill rigs working to expand existing projects and strike on new ones.

Open interest signals extended zinc rally

There's one more indicator showing the zinc rally has legs, according to the Sydney Morning Herald.

Open interest, a tally of outstanding contracts in zinc on the London Metal Exchange, climbed to the highest since October. Traders are piling into the metal as inventories tracked by the bourse drop for a 19th straight session.

Australian miners leave clean-up bill after taking the cash

A move by Australia's biggest mining state to support the industry by handing back funds earmarked for mine rehabilitation has backfired, critics say, with more than 70 projects suspending operations, raising fears taxpayers will be left to pay the clean-up bill, according to the Australian Financial Review.

Western Australia had hoped the $1 billion injection would protect miners from slumping commodity prices, however, the closures underline the risk that a prolonged downturn could lead to hundreds of millions of dollars in unfunded or underfunded liabilities from shuttered mines.

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