Africa Mining – Page 160 – Republic of Mining

RPT-UPDATE 3-S.Africa’s Zuma slams striking union for risking mining jobs – by Ed Stoddard (Reuters India – May 5, 2014)

May 5, 2014

http://in.reuters.com/

JOHANNESBURG, May 5 (Reuters) – South African President Jacob Zuma has accused the AMCU union of irresponsibility for dragging out a wage strike in the platinum sector for almost four months, telling reporters there was a risk of workers losing their jobs because of the dispute.

Zuma, who has made little previous direct comment about the strike, took aim at the Association of Mineworkers and Construction Union (AMCU) on Monday, underscoring political concerns about the stoppage and its impact on Africa’s most advanced economy, ahead of general elections on Wednesday.

“The union leaders have a responsibility … to ensure workers are protected so they don’t lose their jobs. You can’t get into a strike that at the end the workers lose their jobs. That’s your responsibility,” Zuma told a news conference.

Mining companies joined the attack on AMCU, saying intimidation was being used to keep its members in line and they would continue with their strategy of putting their offer directly to employees to bypass the union’s leadership. But using typically combative language and evoking class warfare, AMCU President Joseph Mathunjwa lashed out at the “platinum cabal” and its “exploitation of workers.”

Mine Waste Transformed to Tap Water for 80,000 Consumers – by Firat Kayakiran, Randall Hackley and Kevin Crowley (Bloomberg News – May 2, 2014)

May 2, 2014

http://www.bloomberg.com/

Anglo American Plc (AAL) was the first company to transform the wastewater from its coal mines into something 80,000 people drink. Now they’re seen as a model.

Purifying contaminated waters from three sites in South Africa has proven so successful that Anglo’s plant in Witbank is doubling in size and being replicated elsewhere in the country by BHP Billiton Ltd. (BHP), the biggest mining company, and Glencore Xstrata Plc. (GLEN)

While the $130 million plant won’t upend the $600 billion world water industry, Anglo’s treatment center provides as much as 12 percent of the area’s municipal drinking supply and serves as a template for how the industry could treat waste in the future. It also shows how companies and municipalities are finding new ways to confront an increasingly water-stressed planet.

Water of a different sort — sewer water — is similarly about to be treated, purified and pumped back to residents in Wichita Falls, Texas, to augment shortages caused by growth and the area’s worst drought on record.

Mines often treat wastewater to some extent yet until the Emalahleni water-reclamation plant, 120 kilometers (75 miles) east of Johannesburg, none was of drinking quality.

Rio Tinto sues Israeli billionaire Beny Steinmetz – by Ian Cobain (The Guardian – May 1, 2014)

May 2, 2014

http://www.theguardian.com/uk

Anglo-Australian mining company alleges that BSG Resources and Brazilian mining corporation Vale were guilty of taking their mining rights

The Anglo-Australian mining company Rio Tinto is suing Israeli billionaire Beny Steinmetz, accusing him of stealing one of the world’s largest untapped iron ore reserves with a scheme that breached US laws against organised crime.

In the latest twist in the legal saga surrounding the ore reserves in Guinea, Rio Tinto has brought a claim in New York alleging that Steinmetz, his company BSG Resources (BSGR), and the Brazilian mining corporation Vale were guilty of “the theft of Rio Tinto’s valuable mining rights … through a scheme in violation of the Racketeer Influence and Corrupt Organisations Act”.

The move comes three weeks after the government of Guinea announced it would strip Guernsey-registered BSGR of the concession because the company had obtained them through corruption.

The concession was taken from Rio Tinto in 2008 and subsequently handed to BSGR, with the company saying it had secured the deal through a $165m (£98.5m) investment in the exploration of the area. BSGR then sold 51% of its prize to Vale for $2.5bn.

UPDATE 3-Implats says most miners want to end platinum strike – by Ed Stoddard (Reuters India – May 2, 2014)

May 2, 2014

http://in.reuters.com/

JOHANNESBURG, May 2 (Reuters) – Impala Platinum said on Friday that two thirds of its striking workers had indicated by text messages and phone calls that they want to accept the company’s latest wage offer and end South Africa’s longest and most costly mining strike.

The 14-week strike by the Association of Mineworkers and Construction Union (AMCU), which has also hit Anglo American Platinum and Lonmin, has taken out 40 percent of global platinum production and cost the companies nearly 16 billion rand ($1.5 billion) in lost revenue.

Implats spokesman Johan Theron told Reuters that workers who were unable to send texts because they have no money for air time were making use of telephones at mine recruitment offices. “We will have a totally clear picture next week,” he said.

AMCU General Secretary Jeffrey Mphahlele declined to comment on the company’s claim, but the union said it planned to hold a press conference in Johannesburg on Monday.

The producers last week said they would take their latest offer directly to the roughly 70,000 striking miners after talks collapsed, setting the stage for a dramatic showdown.

Sherritt International swings to Q1 loss – by Henry Lazenby (MiningWeekly.com – April 30, 2014)

May 1, 2014

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Diversified Canadian miner Sherritt International on Wednesday reported a first-quarter net loss, as a charge at its new Ambatovy nickel mine, in Madagascar, and financing costs related to a weakening Canadian currency impacted results.

The Toronto-based miner, which specialises in mining and refining nickel from lateritic ores at its operations in Canada, Cuba, and Madagascar, reported a first-quarter loss of C$48.2-million, or C$0.16 a share, compared with earnings of C$23.1-million, or C$0.08 a share.

Earnings were affected by the impact of higher financing outlay related to foreign exchange losses as a result of the weakening Canadian dollar against the US greenback and by depreciation, depletion, and amortisation being recognised at Ambatovy for the first time following the commercial production declaration in January, which totalled C$27.5-million for Sherritt’s 40% share.

The Ambatovy Joint Venture (JV) is a vertically integrated nickel and cobalt mining, processing, refining and marketing JV between subsidiaries of Sherritt (40%), Sumitomo (27.5%), Korea Resources (27.5%), and SNC-Lavalin (5%).

War of Titans: Rio Tinto suing Vale over iron ore rights in Guinea – by Cecilia Jamasmie (Mining.com – April 30, 2014)

April 30, 2014

http://www.mining.com/

In a new and unexpected twist in the battle to control Guinea’s rich Simandou iron ore deposits, the companies once operating in the area have began a series of billion-worth lawsuits, with iron ore miner No.2 Rio Tinto (LON, ASX:RIO), suing the world’s largest producer Brazil’s Vale (NYSE:VALE).

The first one to shoot was Vale, which filed Monday an action against his former partner in Guinea BSG Resources, the mining arm of Israeli tycoon Beny Steinmetz’s empire, before the London Court of International Arbitration, Swiss newspaper Le Temps reports (in French).

One of the paper’s sources said Vale is seeking a minimum compensation of US$1.1 billion, due to losses suffered because BSGR’s actions in Guinea. Last week, The West African nation concluded that BSG Resources obtained the Simandou and Zogota concessions through corrupt practices and decided to revoke all mining rights for both companies.

Vale had a 51% stake in the project, which acquire from BSGR in 2010 in a $2.5bn deal.The company however only paid $500 to Steinmetz’s firm, suspending all instalments left as soon as it learned of the accusations against its partner.

Guinea’s President Alpha Conde said Wednesday it was clear the Rio de Janeiro-based firm did nothing wrong, adding the mining giant is free to reapply to acquire rights to one of the largest untapped iron ore deposits in the world.

UPDATE 2-Guinea president – Vale did no wrong, can bid to reclaim mining permits – by Stephanie Nebehay (Reuters India – April 30, 2014)

April 30, 2014

http://in.reuters.com/

GENEVA, April 30 (Reuters) – Guinea’s President Alpha Conde said on Wednesday he hoped Brazilian miner Vale would bid to reclaim two iron ore permits, because the company had not been involved in the alleged corruption that led to their cancellation.

Guinea cancelled the two mining concessions jointly held by Vale and BSG Resources earlier this month, after a government-appointed technical committee accused BSGR of obtaining the rights through corruption.

BSGR, the mining branch of Israeli billionaire Beny Steinmetz’s conglomerate, has denied the allegations and said it will seek international arbitration. Conde told reporters during a visit to Geneva on Wednesday that Vale, the world’s largest iron ore producer, had done nothing wrong.

“We will launch an open and transparent bidding process … Vale was not involved in the corruption or aware of it and we strongly hope that Vale will participate,” Conde said.

“Vale can come back through the bidding process,” he added.

UPDATE 2-S.Africa’s AMCU says striking miners reject platinum wage offer – by Zandi Shabalala (Reuters India – April 29, 2014)

April 29, 2014

http://in.reuters.com/

MARIKANA, South Africa, April 29 (Reuters) – Members of South Africa’s striking mining union AMCU have rejected the latest wage offer from the world’s top three platinum producers, its president said on Tuesday, extending a crippling 14-week stoppage.

“The members have rejected the offer from the employer,” Joseph Mathunjwa told reporters after addressing a rally of workers near Lonmin’s Marikana mine.

The Association of Mineworkers and Construction Union (AMCU) held similar rallies in recent days at Anglo American Platinum and Impala Platinum. It now plans to meet this week with the companies to inform them in person of the rejection, Mathunjwa said.

Marathon wage talks collapsed last week, dashing hopes for an imminent end to South Africa’s longest and most costly mining strike, which has hit 40 percent of global platinum production and threatens growth in Africa’s most advanced economy.

The companies say they are taking their offer directly to the workers via cellphone text messages and radio and newspaper spots in a bid to circumvent AMCU’s leadership, setting the stage for a grinding showdown between capital and labour.

Industry leaders reflect on evolution of SA’s mining industry over last two decades – by Jade Davenport (MiningWeekly.com – April 25, 2014)

April 29, 2014

http://www.miningweekly.com/page/americas-home

The mining industry has, from a historical perspective, played an inherently complex and contradictory role within South Africa’s sociopolitical economy. While the industry has, for more than a century, been the main driver of phenomenal economic growth and industrialisation, it was also partly responsible for institutionalising racial discrimination and the exploitation of cheap labour.

Therefore, it stands to reason that, of all South Africa’s pillar industries, the mining sector has had the longest path to walk in addressing its historical legacy and adapting itself to operate under a radically different dispensation.

On the eve of South Africa’s twentieth anniversary, commemorating the advent of a nonracial democracy, there is little question that the character of the mining industry has radically changed from what it was in the early 1990s.

“The mining industry has experienced an accelerated rate of transformation post-1994 in comparison to several other key industries,” Chamber of Mines president Mike Teke tells Mining Weekly.

“I believe that transformation has happened in a voluntary fashion, with the recognition by the industry itself that we are in a new democratic South Africa and we need to transform positively.”

Vale considers action after iron ore rights revoked – by Tom Burgis (Financial Times – April 27, 2014)

April 29, 2014

http://www.ft.com/home/us

Vale is weighing legal action after Guinea formally cancelled multi-billion-dollar iron ore rights that the Brazilian mining group held jointly with Israeli tycoon Beny Steinmetz’s family conglomerate following a two-year corruption inquiry.

The revocation of the rights came two weeks after a government inquiry in the west African nation concluded that BSG Resources, the mining arm of Mr Steinmetz’s business empire, won them through a bribery scheme before agreeing to sell a majority stake in its Guinean assets to Vale for $2.5bn in 2010.

Vale, the world’s biggest iron ore miner, said on Friday that it was “actively considering its legal rights and options”. A spokesperson for the group declined to elaborate on its plans on Sunday.

BSGR denies wrongdoing and says it is the victim of a plot to seize its assets. The Guernsey-registered company has said it will “prove the allegations raised in Guinea’s rigged and illegitimate process are false” and has threatened to take Guinea to international arbitration. BSGR declined to comment on Vale’s statement.

Election violence flares in South Africa’s platinum belt – by Ed Stoddard (Reuters U.K. – April 27, 2014)

April 28, 2014

http://uk.reuters.com/

JOHANNESBURG – (Reuters) – Police used water cannon and stun grenades to disperse rioters in South Africa’s strike-hit platinum belt on Sunday after a government minister was attacked by rock-throwing protesters while campaigning for the May 7 election.

Police spokesman Thulani Ngubane told Reuters a community hall, municipal centre and the house of a councillor for the ruling ANC were burnt down. He would not identify the rioters but local media and union leaders said the minister had been attacked by members of the striking AMCU miners’ union.

Ngubane confirmed sports minister Fikile Mbalula had to be whisked away under police protection after he and the ANC activists he was campaigning with were confronted by a crowd in the shanty town of Freedom Park northwest of Johannesburg.

It was after this that the protest erupted into a full-scale riot, Ngubane said. Sydwell Dokolwana, the regional secretary for the National Union of Mineworkers (NUM), a key ANC ally and AMCU’s arch rival, told Reuters he was with the minister at the time and that several people were hurt in the scuffle.

Amid legal uncertainty on conflict minerals, alternatives emerge – by Alison Moodie (The Guardian – April 23, 2014)

April 28, 2014

http://www.theguardian.com/uk

How can manufacturers – and consumers – fight the conflict minerals that are destabilising central Africa?

The illegal trade of tantalum, tungsten, tin and gold from the Democratic Republic of Congo (DRC) and surrounding countries is fueling conflict in central Africa. Sales of these conflict minerals help fund arms for militias, ultimately leading to human rights abuses. Meanwhile, US companies that use these metals are facing growing pressure to find sources that are conflict-free. An Securities and Exchange Commission rule, which had been scheduled to take effect next month, would require the vast majority of US companies to disclose whether they use conflict minerals from the region.

Now the SEC rule has come under fire: A US appeals court last week ruled that part of the regulation – a provision requiring companies to state whether their products use conflict minerals – is unconstitutional. That, and other ongoing litigation, has raised uncertainty about exactly how the conflict minerals rule will take effect.

The good news for companies is that compliance with these new regulations just got easier. In January, the Conflict Free Sourcing Initiative (CFSI) announced the existence of certified conflict-free smelters for all four of the conflict minerals. A key step in the supply chain, smelters turn rocks into purified metals for use in electronics.

Can private equity reboot the mining sector? – by David McKay (Miningmx.com – April 25, 2014)

April 25, 2014

http://www.miningmx.com/

ROUGHLY $8bn to $10bn has been raised by newly founded private equity companies, many of them started by former resources bankers or mining executives, in an effort to participate in an estimated $40bn worth of divestments by major mining companies such as BHP Billiton.

The question is, however, whether private equity has ‘the legs’ to remain a valid alternative to traditional forms of lending, such as banks. According to Glencore Xstrata CEO, Ivan Glasenberg, private equity will struggle. “Now there are a lot of private equity guys starting companies, a lot of guys who left the industry and started private equity groups. It’s never worked in the past,” he said.

“The problem with the commodities space if you have high gearing is that you are not running Boots pharmaceutical where you have a pretty constant earnings base,” said Glasenberg.

Another analyst said it was noticeable that private equity couldn’t compete in the big deals. The sale of Glencore’s $5.5bn Las Bambas copper project in Peru went to China’s part-state-owned group, Minmetals, suggesting that start-up companies are battling against sovereign funds for big mining deals.

Anglo to Move Away From Labor-Intensive Platinum Mining – by Firat Kayakiran (Bloomberg News – April 24, 2014)

April 25, 2014

http://www.bloomberg.com/

Anglo American Plc (AAL), the world’s biggest platinum producer, plans to switch to mechanized open-pit mining from labor-intensive underground output, as its South African operations remain crippled by a three-month strike.

The company aims to make the transition in five to 10 years to improve productivity, Chief Executive Officer Mark Cutifani said at the company’s annual general meeting in London yesterday. The change would have to be carried out in a way that’s “sensitive to its social ramifications,” he said.

A third day of talks between producers and union officials ended yesterday without a resolution or plans for further negotiations. Output at Anglo American Platinum Ltd. (AMS) dropped 39 percent in the first quarter because of the walkout over pay, Anglo said yesterday. The company reduced its forecast for full-year production by as much as 13 percent, with more cuts possible if the deadlock persists.

Cutifani “is bang on,” Paul Gait, an analyst at Sanford C. Bernstein Ltd. in London, said in an e-mail. “The only way to get safe platinum is to get people out of the stope.

In platinum’s war of attrition, capital has labour out-gunned – by Ed Stoddart (Reuters U.S. – April 25, 2014)

April 25, 2014

http://www.reuters.com/

(Reuters) – Labour brought a machete to a gunfight with management in South Africa’s platinum belt. Small wonder it looks set to lose.

South Africa’s big platinum strike has highlighted issues ranging from cash reserves to changing market dynamics that have curtailed labour’s ability to influence prices. The result has been to expose the weakness of the country’s miners in any confrontation with producers.

As it marked its 13th week, the showdown took a dramatic turn on Thursday when marathon wage talks collapsed. The world’s three top producers now say they will take their latest offer directly to employees.

They are effectively forcing the hand of the hard-line Association of Mineworkers and Construction Union. The AMCU’s leaders were reluctant to take the latest offer back to their members – probably because they feared the rank and file would accept it after three months with no pay.

A typical South African mine worker has eight dependants and often two families, one in his home village and the other near the shafts. That means many of them are now near the breaking point, especially as domestic inflation accelerates.