Coal mine fires and other disasters predicted by state government report

The Victorian government has been warned that mine failures in the Latrobe Valley, where a coal fire shrouded Morwell in smoke in February, are almost certain to happen every year, according to the Sydney Morning Herald.

Land slips at Latrobe Valley open cut coalmines can also cause “multiple fatalities”, shut down crucial economic infrastructure and devastate the local environment, according to the Emergency Risks in Victoria report, released by the government last month.

The government has been sitting on a separate report into Latrobe Valley mine wall safety since before Christmas.

February's fire at Hazelwood was caused by a bushfire, not a wall collapse but the report warns that the Latrobe Valley coalmines “introduce an additional fire risk”

Hazelwood burned for more than a month, prompting local residents affected by smoke and ash to complain of nausea, headaches and sore eyes.

OZ may entangle Clayton Utz in legal claims

Legal firm Clayton Utz could be dragged into a market disclosure lawsuit that is dogging OZ Minerals, after the miner indicated it may try to pass any future liability over to the company, according to the Sydney Morning Herald.

OZ Minerals revealed earlier this year that it was once again defending claims its predecessor Oxiana failed its market disclosure obligations in 2008.

Oxiana was preparing a merger with fellow miner Zinifex at the time, and Clayton Utz was hired to provide legal advice to Oxiana, including over its market disclosure obligations.

South Boulder enters potassium sulphate market

Little-known listed Perth potash play South Boulder Mines plans to take on the highly concentrated potassium sulphate market under the leadership of a former BHP Billiton executive, as it runs metallurgical tests to unlock more of its flagship open-pit resource in Eritrea, on Africa’s east coast, according to the Australian Financial Review.

The minnow has changed its strategy since managing director Paul Donaldson took the helm last year and is looking to tap all three types of potassium-bearing salts at its billion-tonne Colluli project, testing to confirm they can be processed into potash.

Donaldson, who was at BHP for 12 years, said the approach would cut operating costs, extend the project’s mine life and increase the company’s chances of attracting financiers.

It could see South Boulder unlock about 180 million tonnes of the lucrative potassium sulphate fertiliser.