Mantle Mining

Mantle Mining is a Western Australian headquartered minerals exploration company with interests in coal, gold, uranium and other projects in Victoria, Queensland, New South Wales and the Northern Territory. While a minnnow in the Australian mining industry, the company has been embroiled in controversy over its brown coal exploration projects in Victoria.

Coal projects
On its website Mantle Mining states that its coal interests are the:


 * Trafford coal project in Queensland;
 * Texas coal project in Queensland;
 * Bacchus Marsh coal project in Victoria;
 * Latrobe Valley coal project in Victoria;

In late July 2011 Mantle abandoned its Deans Marsh coal project after encountering strong community opposition.

Personnel

 * Martin A. Blakeman, Non-Executive Chairman.
 * Ian R. Kraemer, Managing Director;
 * Peter R Anderton, Consulting Geologist - Director
 * Stephen de Belle, Non Executive Director
 * Winton Willesee, Company Secretary

September 2011: Protester chains himself to test drilling rig
In September 2011 an environmentalist chained himself to a test drilling rig that was located eight metres off the ground to protest the Bacchus Marsh coal mine project. The activist, Shaun Murray, of the Switch Off Coal group, said he would not leave until has was removed forcibly. He said he had a group of supporters that were helping him maintain his protest.

The activist said he was prepared to be charged with trespass. "There is police here and they've asked me to leave, but I've told them I wouldn't be leaving voluntarily," he said. "I'm prepared to stay here for as long it takes. At the end of the day if I haven't been removed I'll probably call it a day and consider that a good day's work. But I expect the police will call a search and rescue unit and bring a cherry picker to cut me off."

Company timeline

 * November 20, 2006: Listed on the Australian Stock Exchange.


 * April 2007: Mantle Mining's first quarterly report outlines that the company is pursuing several gold and an uranium projects in Victoria and Queensland.


 * September 2007: Mantle announces that for $100,000 it has "entered into an agreement with Trafford Coal Pty Ltd (Trafford) whereby it will acquire 87.5% of the Mt Mulligan coal deposit, including coal seam methane (CSM) rights, via acquisition of 100% of the share capital of Trafford." Mantle touts the project as "estimated at approximately 500 million tonnes" and claimed that it provided the company with "a more diversified portfolio of assets and access to significant participation in the strong energy market of North Asia." The company stated that its next steps were to "negotiate and settle a suitable access agreement with the Djungan Aboriginal Corporation, the relevant Native Title party" and undertake a conceptual study "regarding development options and issues."


 * October 2007: Mantle announced that it acquired the Mt Mulligan Coal Project for $75,000 and "commenced a Conceptual Study regarding the Project", "initiated the process of negotiation of a Native Title access agreement", and "developed preliminary plans for exploration of the deposit." As a part of the conceptual study the company stated that, amongst other issues, it would be "considering CSM extraction, for safety and commercial purposes" and "Base Load Power Station development and operation, using washery reject material and/or CSM."


 * November 2007:
 * Mantle announced that it had "exercised its option to acquire 87.5% of the Mt Mulligan Coal Project from Calcifer Industrial Minerals Pty Ltd."


 * Mantle reported that with only $2 million cash on hand that "funding for feasibility studies and predevelopment work will likely to be a mix of: Rights Issue" and joint venture "buy-in/option fee re Mt Mulligan."


 * February 6, 2008: Ian Kraemer commenced as Managing Director of Mantle Mining: "Ian’s first order of business is to accelerate finalisation of an Access Agreement regarding Mt Mulligan by June 2008. Thereafter, completion of a formal JORC Resource estimate for Mt Mulligan is targeted for December allowing for finalisation of a Pre-Feasibility Study for initial development at Mt Mulligan by end June 2009."


 * March 2008: In its half-yearly annual report Mantle stated that its "exploration plans for Mt Mulligan are at an early stage. The first step will be to negotiate an access agreement with the relevant Native Title holders, and preparation for this has commenced. The Company will be investigating development options and issues, such as identification of low capital cost options for early development, both on the existing tenements and those strategically contiguous. Scoping Studies regarding Mt Mulligan access, exploration and development issues were commissioned in late 2007 and are expected to be completed by the end of March 2008. The purpose of the studies are to provide a consolidated review of the deposit and a framework for consideration of issues going forward."


 * April 2008: In its April 2008 quarterly report Mantle stated that "the Company initiated positive negotiations towards an access agreement with the Traditional Custodians of the Mt Mulligan project area. Acquisition of the Mt Mulligan tenements provides Mantle a foothold in the Queensland coal industry."


 * June 2008: Mantle announced that, at a cost of $125,000 it acquired "the outstanding 12.5% of the Mt Mulligan coal and coal seam methane (CSM) tenements that it does not already hold, thereby consolidating ownership to 100%." The purchase, it stated, "provides the Company significantly enhanced capability to bring forward its plans to grow a substantial energy company." The company stated that "Mantle will now proceed to finalise the very positive discussions that have been progressed with the Traditional Custodians. These discussions have now proceeded to the point of exchanging a draft Indigenous Land Use Agreement (ILUA)." The company also stated that it has "focussed on early development options designed to best capture the current upsides from low impact, low capital and low emission energy production. This focus is to progress first to coal seam gas development".


 * July 2008: Mantle announced that "access discussions with the traditional custodians, the Djungen People, of Mt Mulligan (EPC 772 and ATP 718P) continue to progress extremely well. The parties have reached agreement in principal and the full Indigenous Land Use Agreement (ILUA) is being drafted. Mantle and the Djungen People have begun planning for cultural heritage site clearances and initial targeted exploration activities. Early exploration activity will be focussed on generating targets for drilling to confirm the gas drainage potential of the area whilst defining the overall coal resource base."


 * October 2008: In an October 2008 update on the prospects for the company in the aftermath of the Global Financial Crisis Mantle stated that "the Company has continued to actively review, develop and pursue a number of highly synergistic, value accretive business opportunities: An opportunity to acquire a licence to a clean coal technology and separately acquire and apply for a number of upgradable coal tenements in Australia ...".


 * January 2009: In its quarterly report Mantle stated that "at the Mt Mulligan coal and coal bed methane project a final ILUA is being drafted and preparations are being made for the Authorization (signing) ceremony."


 * July 2009: Mantle's coal interests were slowly being relegated to the backblocks of the the company's quarterly report. "Mantle acquired the Mt. Mulligan Coal and Coal Bed Methane (CBM) tenements, near Cairns in North Queensland, and is negotiating to secure an access agreement with the Traditional Custodians as a prerequisite for exploration activities," the company's quarterly report stated.


 * October 2009: In its quarterly report the company stated that "during the Quarter, discussions with the Traditional Custodians of Mt Mulligan on finalisation of an Indigenous Land Use Agreement (ILUA) continued to be delayed due to an outstanding Third Party Claim which arose earlier in the calendar year. The Company and its legal advisor, Minter Ellison, Lawyers, continued to work with Special Counsel to resolve the claim. Relations with the Traditional Custodians remain extremely positive."


 * March 2009: In its half-yearly report the reporting on the prospects signalled that the project was going sour: "At the Company’s Trafford Coal and Coal Bed Methane Project (Mt Mulligan) in Queensland, positive discussions progressed with the traditional custodians towards Authorisation (signing) of an Indigenous Land Use Agreement (ILUA). Work was also continued by the Company through its legal advisor, Minter Ellison, Lawyers, to resolve an outstanding Third Party claim."


 * June 2010: Mantle announced that it had been granted ""priority status over an application for Exploration Licence EL 5294 at the Company’s 100% owned Bacchus Marsh Brown Coal project in Victoria." The company's media release quoted Mantle’s Managing Director, Ian Kraemer as stating that "the addition of Bacchus Marsh will considerably increase Mantle’s exposure to coal as a core element in our portfolio. Mantle’s re-focus on Gold and Coal/CBM projects which hold either defined, JORC compliant resources or, exciting new prospects which, with further exploration, are considered potentially capable of being advanced to JORC compliant resources within a reasonable timeframe, is well advanced."


 * July 2010: Mantle provided an update on its legal stoush with Calcifer Industrial Minerals Pty Ltd over the title to the MT Mulligan tenements. On March 19 March Mantle's subsidiaries Trafford Coal Pty Ltd and Mt. Mulligan Coal Pty Ltd "had commenced proceedings against Calcifer Industrial Minerals Pty Ltd (Calcifer) in the Supreme Court of Queensland to enforce an agreement for the assignment of the Mt. Mulligan tenements." Subsequently, Calcifer had announced that it intended to defend the case. Mantle noted that both companies had changed their legal representation.


 * August 9 2010: Mantle announced that it had executed "a non-binding Memorandum of Understanding (MOU)" with Exergen Pty Ltd "for the development" of the Bacchus Marsh Brown Coal Project. Under the MOU Mantle and Exergen agreed to "to formalise agreements leading to;
 * A 50/50% Joint Venture for exploration and subsequent mine development,
 * Exergen constructing a 50tph demonstration drying facility,
 * Exergen developing an export project on its 50% of the coal deposit,
 * Mantle being licenced to utilise CHTD on its 50% of the coal deposit."


 * The company also stated that the MOU also committed the companies to negotiate "bindng 'Substantive Agreements'" for:
 * "an exploration Joint Venture Agreement (JVA), within 1 year,
 * a CHTD Technology Licence Agreement (TLA), within 1 year,
 * a Mine Development Heads of Agreement (HOA), within 1 year
 * finalising the Mine Development Agreement (MDA), within 2 years."


 * and that "proposed major developments over subsequent years to include:
 * commencing the drying demonstrator construction,
 * full demonstration and taking an investment decision,
 * commencing construction of Exergen’s Export Project."


 * August 26, 2010: Mantle announces that "it has made application for two Exploration Permits for Coal (EPC’s) in Queensland. The two tenements constitute Mantle’s third project targeting coal and/or coal bed methane; the Texas Coal Project." The company stated that "EPCs 2190 and 2192 are located adjacent to the border with New South Wales at Texas, 210km south-west of Brisbane."


 * September 2010: Mantle announces that, after several failed uranium exploration projects, it was reprioritising "its project portfolio" by "reducing exposure to green-field uranium exploration whilst increasing exposure to the Coal and Coal Bed Methane (CBM) sector."


 * November 2010: Mantle announces that a "successful drying trial on Bacchus Marsh coal" had been undertaken. The company stated that the highlioghts of the trial were that "hydrothermal treatment performed in Exergen’s bench scale Autoclave (simulates pilot plant performance) in Melbourne" with "subsequent dewatering and pressing to briquette undertaken at Exergen’s pilot plant facility in Beaconsfield,Tasmania,". The company stated that the "Run of Mine (ROM) coal feed moisture content of 47% reduced by over 90% to a briquette moisture content of 5%" and that a "(circa 20 tonne) bulk sample is currently being sourced for full pilot plant trialing."


 * December 7, 2010: Mantle announces that it has been granted grant for Exploration Permit for Coal (EPC) 2190 Texas and EPC 2192 Mt Gunyan which "constitute Mantle’s third project targeting coal; the Texas Coal Project."


 * December 9, 2010: Mantle announces that it has "been granted priority status over three (3) additional applications for Coal Exploration Licences at the Company’s 100% owned Bacchus Marsh Coal project in Victoria." The company stated that "EL’s 5323, 5324 and 5325 are located within the Company’s existing EL 5294 application and adjacent to ML 4701 (held by others). Addition of these ELs will consolidate remaining areas in EL 5294 under Mantle control. EL 5294 contains an exploration target between 1 to 2 Billion tonnes of brown coal."


 * December 14, 2010: Mantle announces that it had formalised an agreement with Exergen which "legally binds the parties to the principles outlined within the Memorandum of Understanding (MOU)" and in particular which:
 * "Establishes processes for the formation of the first of the Substantive Agreements, e.g. the Joint Venture Agreement (JVA),
 * "Sets out agreement between the parties regarding (50 / 50) funding arrangements for certain accelerated Pre JVA activities such as:
 * " bulk sample drying trials at Exergen’s Beaconsfield pilot plant and subsequent coal quality analyses,
 * "detailed data basing and geological interpretation of pre-existing (numerous) exploration drill holes data across the deposit area,
 * "generation of pre-feasibility type intellectual property specific to the Bacchus Marsh coal deposit, location and infrastructure."


 * December 15, 2010: Mantle announces that, based on a re-evaluation of historic drilling data, the company had "a high confidence that the volume of brown coal, at about 1.8 billion tonnes, is at the upper end of the Exploration Target of 1 to 2 billion tonnes".


 * January 11, 2011: Mantle announces that, following discussions with Calleja Industries, the owner/operators of the Maddingly open cut coal mine at Bacchus Marsh, a 20 tonne bulk sample "has been delivered to Exergen’s 4tph pilot plant in Beaconsfield, Tasmania."


 * January 19, 2011: Mantle announces that "it has been granted priority status over three coal Exploration Licence applications adjacent to Victoria’s Latrobe Valley." The EL's -- 5336, 5337 and 5338 -- "cover a combined area of 556km2 in the highly prospective Gippsland Basin, located immediately adjacent to the Latrobe Valley ... The majority of remaining unallocated brown coal in the Latrobe Valley lies in the “S7 Exemption Area”. Importantly, Mantle’s ELs abut this exemption area."


 * February 2, 2011: Mantle Announces that it has been granted Exploration Permit for Coal (EPC) 2190 Texas and EPC 2192 Mt Gunyan in south-east Queensland.


 * March 28, 2011: Mantle is granted the exploration licence for the Bacchus Marsh project.


 * March 31, 2011: Mantle announces that a test of a bulk sample from Bacchus Marsh resulted in the moisture content being reduced from 56.7% to 9.5% in the sample briquette.


 * April 7, 2011: Mantle claimed that "an unsubstantiated claim has recently been made by a third party in the public media in relation to the Sulphur (S) levels in Bacchus Marsh brown coal". The company did not state who made the claim, where and when it was made or what the specific claim was beyond stating that "the claim suggests that Bacchus Marsh brown coal contains 3 – 6% S. No (wet or dry) bases, nor official data sources, have been quoted." In response Mantle stated that "the current substantiated knowledge is that the % of S on a dry basis (%db) is 1.74%" but acknowledged that "a number of drill hole logs are available that suggest that higher S levels are concentrated in a number of (selectively minable) layers near the top of seam, thereby eminently blendible." Mantle also provided comparative figures for other Victorian coals indicating that the Bacchus Marsh deposit compared unfavourably with the Latrobe Valley deposits which ranged between 0.28 and 0.38% but lower than the 2.85% of the Anglesea mine. However, the ash content of the Bacchus Marsh deposit was far higher -- the Latrobe Valley deposits ranged between 1.7% and 3.0% while the Angelsea deposit was 3.8%.


 * April 18, 2011:Mantle announced that it had been granted three additional exploration licences, ELs 5323, 5324 and 5325, which it described as "infill areas between the Maddingley Coal Mine and Mantle’s surrounding EL 5294."


 * May 5, 2011 : Mantle announced that it had been granted exploration licence (EL) 5337 "Thorpdale" for brown coal exploration in the Latrobe Valley.


 * May 30, 2011: Mantke announced that it had selected GHD to advise it on a drilling program for its Bacchus Marsh project. Mantle stated that it was planning on drilling 15 drill holes to complete a 1.6km spaced grid to enable it to develop a JORC standard estimate of the inferred resource. The company stated that 3 holes would be to confirm data from 1960’s & 1980’s drilling and, if those proved successful, drilling a further 12 new in-fill holes to complete the grid. The company stated that it anticipated the drilling would occur in Ausgust or September.


 * June 16, 2011: Mantle announces that it had "entered into an agreement with Intersuisse Limited and its associated corporation, Phillip Capital Pty Ltd, to raise approximately $2,985,690." Of this, 6,153,856 shares would be issued at 9.75 cents per share up to a total of $600,000 for "Sophisticated Investors". The company also stated that "a rights issue which is intended to be underwritten by Intersuisse Limited to raise approximately $2,385,690 by way of a 1:8 non renounceable rights issue of shares with an offer price of 9.75 cents. The anticipated „ex‟ date for the rights issue is 29 June 2011."


 * June 22, 2011: Mantle announced that it had applied for a coal exploration licence, EL 5367, over what its described as "the historic brown coalfields named Deans Marsh and Wensleydale." In its announcement Mantle claimed that it "considers the potential for discovery of additional brown coal deposits and extensions of the historic areas to be very high" and that is was "seeking to apply brown coal upgrade technology in order to develop a new coal export industry."


 * July 14, 2011: Mantle releases the prospectus to support its capital raising program. In the prospectus, the total amount sought had been downgraded from $2.38 million to to $1.59 million. The closing date for the offer is Wednesday August 17, 2011. The company stated that "the offer will provide a significant capital injection, which will assist with the Company’s existing exploration program, most especially the drill programs at the Bacchus Marsh Coal Project, Granite Castle Gold Project and Barkly Phosphate Project targeted for completion in the 2011 calendar year." The company also stated that funds would be used for "the Trafford Coal Project court case, exploration at the Charters Towers Gold Project and for general working capital purposes." The company stated that $400,000 would be allocated for the Bacchus Marsh Coal Project.


 * July 20, 2011: In its quarterly report Mantle stated that it had raised $600,000 from "Sophisticated Investors". It also stated that or the Bacchus Marsh project the company was undertaking "advanced drill rig contracting, work plan development and landowner liaison." In a later report the company stated that Intersuisse Limited and its associated corporation, Phillip Capital Pty offered the shares to "its sophisticated investor clients". Mantle stated that the funds are "being used to accelerate drilling programs at the drill programs at the Bacchus Marsh Coal Project, Granite Castle Gold Project and Barkly Phosphate Project and for working capital."


 * July 28, 2011: Following overwhelming public opposition at a public meeting to a mine at Deans Marsh, Mantle retreated. In a statement to the Australian Stock Exchange Mantle stated that "after considering the potential prospectivity of the area, potential conflict arising out of competing land use in the locality, and the potential costs/benefits over time, Mantle has taken a pragmatic decision to withdraw its application for an exploration licence in order to focus its resources on other higher priority projects."


 * August 9, 2011: Mantle announces that, as a "consequence of current market conditions", the original closing date of August 17, 2011 for the share issue had been deferred to September 2. The company also stated that "it has received confirmation from Intersuisse Limited, underwriter of the Offer, that termination events have occurred under the Underwriting Agreement as a result of current market conditions. Intersuisse Limited has reserved its rights under the Underwriting Agreement and has not elected to terminate the Underwriting Agreement at this stage.


 * August 11, 2011: In an update on its projects the company stated that "the low impact drilling workplan" for its Bacchus Marsh project "was approved on August 3rd and drill rig mobilization is expected to occur within the next 2 weeks." It also stated that "the Substantive Agreements: Joint Venture Agreement, Technology Licence Agreement and Heads of Agreement for Mining. Draft documentation has been exchanged and discussions are being actively progressed."


 * September 8, 2011: Mantle have announced that a general meeting will be held at midday at RSM Bird Cameron, Level 12, 60 Castlereagh Street, Sydney NSW 2000 to vote on two proposals. The first is a proposal to allocate a parcel of 6,153,856 shares issued at 9.75 cents each to raise $600,000 for company projects. The Second proposal is to issue 210,603 ordinary shares to Azalea Consulting Pty Ltd "as an alternative to the payment of cash remuneration in relation to company secretarial services for the period from 1 October 2010 to 30 June 2011."


 * July 2, 2012: Mantle Mining announces that it has reached agreement with Exergen on a 50:50% joint venture and Technology Licence Deed for the proposed development of Mantle's Bacchus Marsh coal project in Victoria. Mantle stated that under the terms of the agreement Exergen would pay $500,000 representing half of Mantle's costs in conducting its drilling program and defining a JORC-compliant resource. Under the technology agreement, the joint venture would use Exergen's Continuous Hydro-Thermal Dewatering (CHTD) technology with a commercial scale demonstration plant "to be completed within a maximum 2-4 year timeframe at a location yet to be confirmed. Should these timeframes not be met then Mantle has certain buyback rights on the project tenement." The company also stated that once a JORC Inferred Resource base was announced, which was expected "within weeks", Exergen would assume management responsibility for the project.

Contact details
Suite 25, 145 Stirling Highway, Nedlands, Western Australia

Phone: (08) 9389 3130 Fax: (08) 9389 3199 Postal Address P.O. Box 3144 Nedlands WA 6009 Website: http://www.mantlemining.com/

Related SourceWatch articles

 * Cygnet Capital
 * 2002 Victorian coal allocation
 * Researching coal in Victoria
 * 2010 Victorian election and coal
 * Australia and coal
 * Carbon Capture and Storage in Australia
 * New South Wales and coal
 * Queensland and coal
 * South Australia and coal
 * Western Australia and coal
 * Coal terminals

External articles

 * Peter Ker, "Market slump damps export plan", Sydney Morning Herald, August 12, 2011.
 * Adam Morton, "Rural residents dig in over coal mine plan", The Age, August 13, 2011.
 * Belinda Merhab, "Vic woman's farm at mercy of coal miners", Ninemsn, August 15, 2011. (This is an AAP story).
 * Nick Toscano, "Sparks fly in mining, farming conflict", Melton Weekly, August 16, 2011.
 * Nick Toscano, "Parwan farm owner at the coalface", Melton Weekly, August 16, 2011.
 * Tom McIlroy, "Bacchus Marsh coal seam gas mining causes land controversy", The Courier (Ballarat), August 16, 2011.
 * Peter Ker, "Helping hand for Mantle", Sydney Morning Herald, September 6, 2011.
 * "Residents angry about proposed coal exploration", ABC News, September 6, 2011
 * Paul Connor, "Is brown coal really the planet’s saviour?", Crikey, September 6, 2011.