In 1986 an Australian based, diversified resources developer and explorer was initiated. IMX Resources Limited is known as a prolific miner through the development of a portfolio of projects based upon production with geographical diversity including iron ore, nickel, gold, copper and uranium.

Their operations and interests span Australia, Africa, China and India and primarily target steel making materials and copper. The mining company also has projects in South Australia, Tasmania and Tanzania in East Africa.IMX Resources capitalizes on investors via the development of core projects, spin-off opportunities and joint venture arrangements.

Their company’s Managing Director and geologist, Duncan McBain, has more than 30 years experience in the resources industry in geology as well as analyst roles over a wide range of commodities working in Africa, Australasia and Asia. Prior to his role at IMX Resources, McBain was a Director with Patersons Securities where he spent 10 years as a resource specialist. Prior to joining Patersons Securities he worked for 15 years for various Rio Tinto Group companies including Bougainville Copper, An Mau Steel and Kembla Coal & Coke.

LOGISTICS

IMX Resources is a company on a smaller scale with a staff of 15 with another 150 people that are all contract workers involved in the mining operations. “We believe in starting small and expanding step by step,” said McBain. “We’re trying not to look too far ahead as we’re trying to use what we have available right now.” IMX Resources is looking to be as efficient and prolific as possible when it comes to the mining industry, setting the best example and applying the best business practices.

“We have an extremely competent board,” McBain commented on his faith in the company. “The company is strong and comprised of people with a lot of experience. We are very active and very focused on getting into production.” IMX Resources is concentrated on building a midsized mining company rather than mining the market on the mining market. They are focused on their core strengths and look to efficiencies and alternative ways of doing things as part of its business expansion.
“Our goal is to grow the business and the number of employees will grow in line with future developments,” said McBain.

TRENDS

IMX Resources sees several trends in the mining industry. “We are seeing the rise of China and the rise of India, creating more opportunities in the marketplace,” said McBain. As the demand for copper, nickel and other elements increases, McBain’s job gets a little easier as finding investors allows the company to obtain a number of joint venture opportunities to grow share value.

CHALLENGES

Some of the challenges that this particular mining company has to face have to do with rise in demand and the cost of industry. Finding and the right projects minerals is not as easy as some investors would think.

The mining firm has found it has to be more involved with project engineering to overcome a shortage of engineering consultants, while a lack of access to infrastructure has the potential to be a detriment to the mining business. McBain added, “We try to be hands on in many different circumstances including trying to influence the development of new infrastructure and trying to influence governments and service providers to improve infrastructure.” Sometimes it is difficult to get several entities to cooperate simultaneously, but that is the bread and butter for how a mining firm can operate, all the roles have to be played just right, otherwise it’s a recipe for disaster.

Another major challenge IMX Resources has had to face, much like many other businesses around the world, is the economic crisis and the mining industry took a hard blow. “When the economic crisis hit, everything was put on hold for 12 months,” said McBain. “We had to look for alternative financing arrangements.” The market had quite an effect on the mining industry as it weakened and lost momentum. McBain added that making acquisitions and investments became a challenge. In the space of three months IMX’s debt financing fell apart. The industry in China was on hold for 6 months and IMX was unable to access new funding from targeted China investors.

CAIRN HILL

However, once the economic forecast indicated signs of improvement, IMX Resources was able to rise above its financial tribulations and finally close a couple of deals with China the way they had originally intended. IMX Resources now has two major clients in China upon which it relies: Sichuan Taifeng and Jilin Tonghua Iron & Steel.

“I’ve spent 50% of my time in China talking to different people and doubling efforts to find the right partners,” said McBain. IMX Resources signed an agreement with China's Jilin Tonghua Iron & Steel Group Co Ltd, which will buy all output for the entire five-year life of the mine. IMX Resources also signed a $49 million deal with Sichuan Taifeng to fund development of a project called the Cairn Hill project. Sichuan Taifeng will own half of the Cairn Hill project and its stake in IMX Resources will rise to 19.9 per cent. The Cairn Hill project is set to produce 1.7 million tonnes per annum (mtpa) of ore.

“We plan to start implementing larger operations” McBain said in terms of their Cairn Hill venture. “We’re always expanding and with the Cairn Hill project there is a lot of potential.”

The Cairn Hill project will consist of three phases: the Magnetite – Copper – Gold Project, the Magnetite Project and Potential. Phase 1 will nominally produce 1.7 million tonnes per annum (mtpa) of ore after ramp up. Phase 2 aims to produce 1.9 million mtpa ROM ore producing 1.2mtpa magnetite concentrate. Finally at Snaefell IMX has identified a target of 250-400mt at 25-35% Fe grades, where the aim is to produce up to 5mtpa within 3-5 years.

TECHNOLOGY

McBain said IMX Resources tries to be one step ahead of the game when it comes to advances in technology. “We use technology in many different contexts,” said McBain. “We’ve applied existing technology in new formats.” One of the ways IMX Resources applies technology is a process called dry magnetic separation.
Dry magnetic separation is a process in which magnetically susceptible materials are extracted from a mixture using a magnetic force. The advantage is that the separation can be done after crushing and has the potential to significantly reduce capital & operating costs associated with grinding.

SUSTAINABILITY

IMX Resources also takes pride in owning a reduced carbon footprint. “As far as ‘going green,’ we’re always looking to use the best practices,” said McBain. “We employ the most efficient available energy.” The mining company uses biodiesel for all of its operations. Overall, IMX Resources doesn’t have a huge power commitment.

Finally, as IMX Resources looks to the future in terms of mining and the mineral industry, they are aiming to look for other investors and expand their assortment of projects within a 2-4 year timeframe. “Our hope is to become a serious miner with one or more operations in production at one time,” McBain projected. “We want to end up with a portfolio of mining projects that is more diverse with more locations with many minerals.”