{{Use dmy dates|date=August 2020}} {{Infobox company | name = Kagara Limited | logo = Kagara Mining logo.png | caption = | type = | traded_as = | fate = | predecessor = | successor = | foundation = 1981 | founder = | defunct = 2014 | location_city = | location_country = | location = | locations = | area_served = | key_people = | industry = Mining | products = | services = | revenue = | operating_income = | net_income = | assets = | equity = | owner = | num_employees = | parent = | divisions = | subsid = | homepage = {{URL|http://www.kagara.com.au/}} | footnotes = }}
'''Kagara Limited''' was an Australian mining company operating in Queensland and Western Australia. The company was founded as Kagara Zinc Inc in 1981, and was based in Perth.<ref name=Bloomberg/> Kagara entered voluntary administration on 30 April 2012.<ref name=heraldsun-2012-04-30>{{cite news | url=http://www.heraldsun.com.au/business/kagara-calls-in-administrators/story-fn7j19iv-1226342545634 | title=Miner Kagara calls in administrators | date=2012-04-30 | publisher=Herald Sun}}</ref> It subsequently went into liquidation in 2014.<ref name="Serenc, Michael">{{cite news | url=http://www.cairnspost.com.au/business/liquidator-muzzles-kagara-creditors/story-fnjpusdv-1227048878384 | title=Liquidator muzzles Kagara creditors | work=Cairns Post| date=5 September 2014 | accessdate=27 June 2015 | author=Serenc, Michael | archive-date=29 June 2015 | archive-url=https://web.archive.org/web/20150629085807/http://www.cairnspost.com.au/business/liquidator-muzzles-kagara-creditors/story-fnjpusdv-1227048878384 | url-status=live }}</ref>
==Operations== Kagara explored, developed and produced copper, zinc, gold, nickel, and lead concentrates.<ref name=Bloomberg/> In June 2002 the company was reported to have started construction and waste pre-stripping at its $54m Mount Garnet zinc project in northern Queensland.<ref>{{cite web |url=http://www.ferret.com.au/n/Kagara-begins-Mt-Garnet-mine-construction-n731199 |title=Kagara begins Mt Garnet mine construction |date=2002-06-13 |publisher=Reed Business Information |accessdate=12 January 2011 |archive-url=https://web.archive.org/web/20080512055716/http://www.ferret.com.au/n/Kagara-begins-Mt-Garnet-mine-construction-n731199 |archive-date=12 May 2008 |url-status=dead }}</ref><ref>[https://web.archive.org/web/20200425034547/https://www.afr.com/companies/for-zinc-its-sink-or-swim-20021024-ka518 For zinc, it's sink or swim] ''Australian Financial Review'' 24 October 2002</ref> In June 2008 the company said it would reduce zinc output, which it sold to Korea Zinc Co, to 35,000 tons, but would boost copper production, which it sold to Sterlite Industries.<ref>{{cite web |url=https://www.reuters.com/article/idUSSYD34777820081030 |title=Australia's Kagara to cut zinc output on lower prices |date=29 October 2008 |publisher=Reuters |accessdate=12 January 2011}}</ref> That month it said it planned to buy the Queensland-based Maitland copper deposit Glengarry Resources.<ref>{{cite web |url=http://www.metalmarkets.org.uk/2008/06/11/kagara-to-purchase-maitland-copper-deposit/ |date=11 June 2008 |title=Kagara to purchase Maitland copper deposit |author=Jo Black |work=Metal Markets |accessdate=12 January 2011 |archive-url=https://web.archive.org/web/20110726170018/http://www.metalmarkets.org.uk/2008/06/11/kagara-to-purchase-maitland-copper-deposit/ |archive-date=26 July 2011 |url-status=dead }}</ref>
In May 2009 the company reported that production of nickel from the Lounge Lizard deposit in Australia would start in three months, with an estimate of 3,000 tonnes of contained nickel a year. The deposit may contain over 140,000 tonnes of ore, and is one of Australia's largest high-grade nickel ore mines.<ref>{{cite web |url=http://www.mining-journal.com/production-and-markets/kagara-sees-nickel-mine-start-in-3-months |title=Kagara sees nickel mine start in 3 months |date=11 May 2009 |work=Mining Journal |accessdate=12 January 2011 |archive-url=https://web.archive.org/web/20120304021907/http://www.mining-journal.com/production-and-markets/kagara-sees-nickel-mine-start-in-3-months |archive-date=4 March 2012 |url-status=dead }}</ref> By January 2010 744 tonnes of development ore had been produced from the deposit, grading 4.4 per cent nickel, and was awaiting treatment.<ref>{{cite web |url=http://news.smh.com.au/breaking-news-business/kagara-nickel-jv-produces-first-ore-20100106-ltth.html |title=Kagara nickel JV produces first ore |date=6 January 2010 |work=Sydney Morning Herald |accessdate=12 January 2011 |archive-date=31 December 2010 |archive-url=https://web.archive.org/web/20101231031357/http://news.smh.com.au/breaking-news-business/kagara-nickel-jv-produces-first-ore-20100106-ltth.html |url-status=live }}</ref> In the 2010 fiscal year, the Mount Garnet polymetallic and copper plants produced 43,970 tons of zinc metal in concentrates, 20,214 tons of copper metal in concentrates and 1,392 tons of lead metal in concentrates. The Thalanga Copper plant produced 3,488 tons of copper metal in concentrates.<ref>{{cite web |url=https://www.reuters.com/finance/stocks/companyProfile?symbol=KZL.AX |archive-url=https://archive.today/20130201064620/http://www.reuters.com/finance/stocks/companyProfile?symbol=KZL.AX |url-status=dead |archive-date=1 February 2013 |title=KAGARA LTD (KZL.AX) |work=Reuters |accessdate=12 January 2011}}</ref>
In April 2009 Kagara said it had been approached to spin off its gold mining assets, using the cash to reduce debt.<ref>{{cite web |url=http://paguntaka.org/2009/04/19/australian-copper-mining-company-kagara-receives-approaches-for-sale-of-gold-asset/ |title=Australian Copper Mining Company, Kagara Receives Approaches For Sale of Gold Asset |date=19 April 2009 |work=Mining Exploration News |accessdate=12 January 2011 |archive-date=27 July 2011 |archive-url=https://web.archive.org/web/20110727163111/http://paguntaka.org/2009/04/19/australian-copper-mining-company-kagara-receives-approaches-for-sale-of-gold-asset/ |url-status=live }}</ref> In June 2009 the Chinese Guangdong Foreign Trade Group (GFTG) said it would take a 15% stake in Kagara for US$50.7 million.<ref>{{cite web |url=http://www.chinaeconomicreview.com/dailybriefing/2009_06_12/Guangdong_Foreign_Trade_Group_to_buy_Kagara_stake.html |title=Guangdong Foreign Trade Group to buy Kagara stake |date=12 June 2009 |accessdate=12 January 2011 |work=China Economic review |publisher=SinoMedia Holdings |archive-url=https://web.archive.org/web/20090726123221/http://www.chinaeconomicreview.com/dailybriefing/2009_06_12/Guangdong_Foreign_Trade_Group_to_buy_Kagara_stake.html |archive-date=26 July 2009 |url-status=dead }}</ref> In July 2009 the Australian government approved the deal.<ref>{{cite web |url=http://metalsplace.com/news/articles/29047/china-gets-nod-to-buy-into-miner-kagara/ |date=9 July 2009 |title=China gets nod to buy into miner Kagara |publisher=Associated Press |accessdate=12 January 2011 |archive-url=https://web.archive.org/web/20110714075451/http://metalsplace.com/news/articles/29047/china-gets-nod-to-buy-into-miner-kagara/ |archive-date=14 July 2011 |url-status=dead }}</ref> That month, the company announced plans to spin off its gold operations, but these were put on hold due to market conditions.<ref>{{cite web |url=http://www.wabusinessnews.com.au/login.php?url=http://www.wabusinessnews.com.au/en-story/5/79864/Kagara-to-raise-76m-for-gold-spin-off/features |title=Kagara to raise $76m for gold spin-off |date=16 April 2010 |work=Business News |accessdate=12 January 2011 |archive-url=https://web.archive.org/web/20110220084539/http://www.wabusinessnews.com.au/login.php?url=http%3A%2F%2Fwww.wabusinessnews.com.au%2Fen-story%2F5%2F79864%2FKagara-to-raise-76m-for-gold-spin-off%2Ffeatures |archive-date=20 February 2011 |url-status=dead }}</ref> In April 2010 Kagara announced the terms of a spin-off of its gold assets, to be named Mungana Goldmines, valued at A$149 million.<ref>{{cite web |url=http://www.miningaustralia.com.au/news/kagara-spins-off-gold |work=Australian Mining |title=KAGARA SPINS OFF GOLD |author=Cole Latimer |date=19 April 2010 |accessdate=12 January 2011 |archive-date=6 July 2011 |archive-url=https://web.archive.org/web/20110706110435/http://www.miningaustralia.com.au/news/kagara-spins-off-gold |url-status=live }}</ref> In May 2010 the government of China approved a $23.8 million investment by GFTG in Mungana Goldmines. Kagara would retain a 49% interest in the operation.<ref>{{cite web |url=http://www.chinamining.org/Investment/2010-05-17/1274075988d36218.html |title=Chinese firm to take 16pct stake in Kagara's gold spin-off |date=17 May 2010 |publisher=China Mining Association |accessdate=12 January 2011 |archive-date=25 July 2011 |archive-url=https://web.archive.org/web/20110725170612/http://www.chinamining.org/Investment/2010-05-17/1274075988d36218.html |url-status=live }}</ref> Mungana has inferred resources of 1.6 million ounces of gold, 90,000 tonnes of copper and 14 million ounces of silver.<ref>{{cite web |url=http://www.theage.com.au/business/kagara-goes-for-gold-in-nick-of-time-20090222-8er0.html |work=The Age |title=Kagara goes for gold in nick of time |author=Barry FitzGerald |date=23 February 2009 |accessdate=12 January 2011 |archive-date=30 January 2010 |archive-url=https://web.archive.org/web/20100130182841/http://www.theage.com.au/business/kagara-goes-for-gold-in-nick-of-time-20090222-8er0.html |url-status=live }}</ref>
In September 2010 Kagara reported positive results from an initial study of a possible Admiral Bay lead-zinc-silver project in the Kimberley region of Western Australia, and said it had plans to explore the project in more detail in a feasibility study.<ref>{{cite web |url=http://www.e-mj.com/index.php/news/australia-a-oceania/489-kagara-plans-feasibility-study-for-admiral-bay.html |title=Kagara Plans Feasibility Study for Admiral Bay |date=14 September 2010 |work=Engineering & Mining Journal |publisher=Mining Media International |accessdate=12 January 2011 |archive-date=10 July 2011 |archive-url=https://web.archive.org/web/20110710161436/http://www.e-mj.com/index.php/news/australia-a-oceania/489-kagara-plans-feasibility-study-for-admiral-bay.html |url-status=live }}</ref> In October 2010 Kagara made a bid to acquire Copper Strike, a neighboring company in north Queensland, for about A$14.2 million.<ref>{{cite web |url=http://news.smh.com.au/breaking-news-business/kagara-plans-copper-strike-takeover-20101012-16hlp.html |title=Kagara plans Copper Strike takeover |author=Rebecca Le May |work=The Sydney Morning Herald |date=12 October 2010 |accessdate=12 January 2011 |archive-date=8 September 2012 |archive-url=https://web.archive.org/web/20120908120246/http://news.smh.com.au/breaking-news-business/kagara-plans-copper-strike-takeover-20101012-16hlp.html |url-status=live }}</ref><ref>{{cite web |url=http://www.brisbanetimes.com.au/business/kagara-looks-to-boost-zinccopper-assets-through-bid-for-copper-strike-20101012-16hvj.html |title=Kagara looks to boost zinc/copper assets through bid for Copper Strike |author=Barry FitzGerald |date=13 October 2010 |work=Brisbane Times |accessdate=12 January 2011 |archive-date=6 October 2012 |archive-url=https://web.archive.org/web/20121006212536/http://www.brisbanetimes.com.au/business/kagara-looks-to-boost-zinccopper-assets-through-bid-for-copper-strike-20101012-16hvj.html |url-status=live }}</ref> The main asset of Copper Strike is the Einasleigh project in Queensland, which is south west of Kagara's copper and polymetallic processing facilities at Mount Garnet and north west of its Thalanga polymetallic processing facility. Einasleigh has copper resources of about 16.1 million tonnes.<ref name=Australian20101113/> Copper Strike described the bid as "highly opportunistic" in a letter to shareholders.<ref>{{cite web |url=http://au.ibtimes.com/articles/71286/20101013/copper-strike-calls-kagara-takeover-bid-as-highly-opportunistic.htm |author=Ricky Roxas |date=13 October 2010 |title=Copper Strike calls Kagara takeover bid as highly opportunistic |work=International Business Times |accessdate=12 January 2011 |archive-date=22 July 2011 |archive-url=https://web.archive.org/web/20110722185656/http://au.ibtimes.com/articles/71286/20101013/copper-strike-calls-kagara-takeover-bid-as-highly-opportunistic.htm |url-status=live }}</ref><ref>{{cite web |url=http://www.watoday.com.au/business/kagara-bid-beholden-to-a-hong-kong-mystery-mob-20101017-16p5z.html |title=Kagara bid beholden to a Hong Kong mystery mob |author=Barry FitzGerald |date=18 October 2010 |work=WA Today |accessdate=12 January 2011 |archive-date=27 September 2012 |archive-url=https://web.archive.org/web/20120927235419/http://www.watoday.com.au/business/kagara-bid-beholden-to-a-hong-kong-mystery-mob-20101017-16p5z.html |url-status=live }}</ref> Kagara responded by calling into question Copper Strike's ability to develop the asset on their own.<ref>{{cite web |url=http://www.miningweekly.com/article/kagara-responds-to-copper-strike-target-statement-2010-11-26 |work=Mining Weekly |title=Kagara responds to Copper Strike target statement |author=Esmarie Swanepoel |date=26 November 2010 |accessdate=12 January 2011 |archive-date=23 October 2012 |archive-url=https://web.archive.org/web/20121023001831/http://www.miningweekly.com/article/kagara-responds-to-copper-strike-target-statement-2010-11-26 |url-status=live }}</ref>
In January 2011 Kagara said that the recent flooding in southern Queensland had had little effect on its operations apart from the Thalanga operation, where Vomacka open pit was being developed and the Thalanga Polymetallic processing facility was being commissioned.<ref>{{cite web |url=http://theindonesiatoday.com/mining-headline/6665-kagara-copper-unaffected-by-flood.html |title=Kagara Copper Unaffected by Flood |date=12 January 2011 |work=Indonesia Today |accessdate=12 January 2011 |archive-url=https://web.archive.org/web/20110114123243/http://www.theindonesiatoday.com/mining-headline/6665-kagara-copper-unaffected-by-flood.html |archive-date=14 January 2011 |url-status=dead }}</ref> The company said it expected to produce around 23,000 tonnes of copper and 50,000 tonnes of lead and zinc metal in 2011.<ref>{{cite web |url=http://miningweekly.com/article/kagara-keeps-fy-production-forecast-unchanged-2011-01-12 |title=Kagara keeps FY production forecast unchanged |author=Esmarie Swanepoel |date=12 January 2011 |work=Mining weekly}}</ref>
However, by 2012 Kagara had been hit hard by the stronger Australian dollar, lower commodity prices and high labour costs. It reported a $48.9 million loss for the first half of the 2012 financial year. In the midst of a restructuring, and a failed attempt to obtain further funding, it entered voluntary administration on 30 April 2012.<ref name=heraldsun-2012-04-30 />
The company went into liquidation in early 2014, resulting in significant losses to creditors.<ref name="Serenc, Michael"/>
==References==
{{reflist|1|refs= <ref name=Australian20101113>{{cite web |url=http://www.theaustralian.com.au/business/city-beat/kagara-bids-for-rival-copper-strike/story-fn4xq4cj-1225937998896 |title=Kagara bids for rival Copper Strike |author=Michael Bennet |date=13 October 2010 |work=The Australian |accessdate=12 January 2011 |archive-date=20 October 2010 |archive-url=https://web.archive.org/web/20101020083609/http://www.theaustralian.com.au/business/city-beat/kagara-bids-for-rival-copper-strike/story-fn4xq4cj-1225937998896 |url-status=live }}</ref> <ref name=Bloomberg>{{cite web |url=http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=KZL:AU |title=KAGARA LTD (KZL:ASX) |work=Bloomberg Businessweek |accessdate=12 January 2011 |archive-date=9 October 2012 |archive-url=https://web.archive.org/web/20121009080245/http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=KZL:AU |url-status=dead }}</ref> }}
Category:Companies based in Perth, Western Australia Category:Mining companies of Australia Category:1981 establishments in Australia Category:2014 disestablishments in Australia