Conflict Minerals in the DRC: Why Western Legislation Isn’t the Only Answer – by Marie Lamensch (Open Canada.org – April 10, 2014)

http://opencanada.org/

At a recent conference titled, “A Conflict of Interests: Canadian Mining in the Congo” organized by STAND McGill, the most debated topic of the day was the role and impact of U.S. and Canadian legislation in curbing violence caused by so-called conflict minerals in the Great Lakes Region of sub-Saharan Africa. These sentiments beg the questions of whether national legislation is actually having an effect on Congolese people or whether it is simply making companies and consumers feel better about their behaviour.

One common misconception about the cycle of violence in the Democratic Republic of Congo (DRC) is that it is caused, in part at least, by conflict minerals. However, it is important to understand that the illegal exploitation minerals is an effect of the war. This misunderstanding about the roots of long-standing conflict threatens to lead to flawed responses as to whether action in the United States or Canada can affect the situation on the ground.
So let’s start with the basics.

What has been coined by French historian Gerard Prunier as “Africa’s World War” finds its roots in two successive wars—not to mention its colonial past as a particularly brutal example of heavy-handed Belgian colonialism. In 1996, Rwanda invaded the eastern DRC to oppose extremist Hutu militias responsible for the 1994 Rwandan genocide who had fled there. Aided by Rwanda, Congolese rebels led by Laurent Kabila took the opportunity to end the reign of Joseph Mobutu—who had been in power since 1965.

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Platinum strike could be godsend for South African pgm miners – by Lawrence Williams (Mineweb.com – April 11, 2014)

http://www.mineweb.com/

South Africa’s platinum strike could be a blessing in disguise for mining companies making the case for closures of unprofitable operations.

LONDON (MINEWEB) – One doesn’t have to be too much of a cynic to feel that the 11 week platinum miners strike primarily affecting the underground mines around Rustenburg may prove to be be a long term positive game changer for the main platinum mining companies – and Anglo American Platinum (Amplats) in particular. The world’s largest platinum miner was already struggling with the profitability of its highly labour intensive Rustenburg area platinum mines and had already proposed a mine and shaft closure programme to try and rationalise its operations and bring them into decent profitability.

Indeed its proposals of a little over a year ago involved the potential rationalisation of its Rustenburg operations into three mines – Thembelani, Siphumelele and Bathopele which between them have five shaft systems primarily working the narrow highish grade Merensky reef systems.

This would mean putting two more mines – Khuseleka and Khomanani – with four shaft systems, on long term care and maintenance with the possible loss of up to 14,000 jobs, although the company said it would have hoped to replace most of these over time with initiatives to generate new non-mining business opportunities in the area.

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Pouroulis family launch third pass at platinum – by David McKay (Miningmx.com – April 10, 2014)

http://www.miningmx.com/

[miningmx.com] – THARISA Minerals is the latest company to roll off the conveyor belt of the Pouroulis family, led by patriarch, Loucas Pouroulis.

A Cypriot by birth, Pouroulis came to South Africa after having been trained in metallurgy at the University of Athens. Mining was in his blood: his father was a copper miner in Cyrpus; the Pouroulis family lived near one of the mine’s slag dumps.

There is now, however, a third generation of Pouroulis’s plying their trade in the sector. Loucas’s eldest son, Adonis, is the chairman of the UK-listed Petra Diamonds whilst his brother, Phoevos, heads Tharisa, which is platinum/chrome miner. In truth, the Pouroulis family has an abiding obsession with mining platinum.

Loucas Pouroulis’ first encounter with platinum – Lefkochrysos – was unkindly referred to as Lefko-‘crisis’ following a decline it the platinum price around 1987 which left the elder Pouroulis’ plans in tatters. He went on to run Consolidated Modderfontein, a gold mine, before exorcising the ghost of Lekkochrysos after founding the breathtakingly successful, Eland Platinum.

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South Africa more competitive than China in ferrochrome: IFL – by Emma Farge (Reuters India – April 9, 2014)

http://in.reuters.com/

DAKAR – (Reuters) – South Africa should be able to snatch back the top spot in global ferrochrome production from China within five years thanks to cost-cutting, says one of Africa’s biggest producers, International Ferro Metals.

South Africa’s share of world production of the steel feedstock has slumped since 2012 when it fell by 15 percent to 32 percent of the 4.8 million metric tons (5.2911 million tons) produced globally, relegating it to second place behind China.

“South Africa will regain its leading position as top ferrochrome producer in the world. A number of us have reduced our costs so we can place alloy into China cheaper than the Chinese can produce,” said Chris Jordaan, Chief Executive of South Africa-based International Ferro Metals (IFL) (IFL.L).

That could be possible within five years, he said in a telephone interview during the Reuters Africa Summit. “It suddenly makes it much better to smelt material as close to the ore as you can.” A weak South African rand was also helping the country regain competitiveness, he said.

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ANALYSIS-South Africa’s platinum strike will hasten restructuring – by Ed Stoddard and Jan Harvey (Reuters Africa – April 8, 2014)

http://af.reuters.com/

JOHANNESBURG/LONDON, April 8 (Reuters) – As a strike by South African platinum miners enters its eleventh week, the likelihood that employers will bow to demands for better pay is receding and a drastic overhaul of the loss-making industry is looking more inevitable.

Faced with the tough bargaining stance of the Association of Mineworkers and Construction Union (AMCU), the companies appear increasingly likely to close or sell mines that are bleeding cash while they lie idle.

Before the strike began, around half of the country’s platinum shafts were losing money because of rising energy and labour costs and waning demand for the metal, used mainly in jewellery and in catalytic converters for cars.

To pacify AMCU, Anglo American Platinum, Impala Platinum and Lonmin would have to double entry-level pay over the next three years to 12,500 rand ($1,200) a month – a demand they flatly refuse. The industry has idled some production to shore up margins, but held back from tougher cuts for fear of a political backlash that could compromise its wider interests.

But the miners’ strike, the longest and most damaging in South Africa in decades, has now cost the industry over $1 billion in lost revenue and there is a growing sense that the companies have little to lose.

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REUTERS SUMMIT-Mining investor says Congo is cleaning up its act – by Peter Jones (Reuters India – April 8, 2014)

http://in.reuters.com/

(Reuters) – Democratic Republic of Congo has improved its business environment but plans to raise mining taxes could deter investors in a country where massive infrastructure challenges remain, the CEO of a major foreign miner said.

Pieter Deboutte, manager of the Fleurette company that holds Israeli billionaire Dan Gertler’s mining and oil interests in Congo, said Prime Minister Augustin Matata Ponyo had made progress in tackling corruption and improving government administration.

Congo has huge deposits of gold, diamonds, copper, cassiterite and coltan that attract investors from across the globe but has been unable to lift its 60 million people out of poverty due to mismanagement, graft and conflict in its east.

The country ranks 154th among 177 nations on Transparency International’s corruption perceptions index. Ponyo, who served for two years as finance minister before taking over as premier in 2012, has won praise from investors and multilateral lenders for curbing inflation and the national debt.

“Ponyo has done a good job introducing more strictness in government,” Deboutte told the Reuters Africa summit. “There is corruption everywhere – and of course it is here – but everything is professionalising now.”

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At South African Mine, It’s a Long, Long Way Down – by Christopher Torchia (Associated Press/ABC News – April 4, 2014)

http://abcnews.go.com/

For those who grumble about their daily commute, imagine this ride to work: clamber into an elevator cage and plummet 2.4 kilometers (1.5 miles) into the earth, so fast that ears pop from the changing air pressure. Then board a small railroad car that creaks and grinds the same distance to the outer reaches of a South African gold mine.

It gets humid down below. Sweat flows. For the unaccustomed, the din of drills and other machinery is disorienting. Travelers are weighed down by boots and a jumpsuit, a helmet with a mounted flashlight and a “self-rescuer,” a metal canister with a breathing tube and an oxygen supply in case something goes wrong.

Miners have a chain of command, but the extreme conditions are a kind of leveler.

“We’re all equal underground,” Gerard Pienaar, senior operations manager at South Deep mine, said on a recent tour of the flagship operation of Gold Fields Limited that provided a look at some of the conditions in South Africa’s mining industry that drives the continent’s biggest economy.

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Time to make Canada free of conflict minerals – by Paul Dewar (Toronto Star – April 03 2014)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Paul Dewar, New Democratic Party MP for Ottawa Centre riding, is the Official Opposition’s Foreign Affairs critic.

Today (Thursday, April 3) the House of Commons is to begin debating my bill C-486, the Conflict Minerals Act.
The illegal trade of conflict mineral from the Democratic Republic of the Congo and other parts of central Africa has been funding and fueling the deadliest war since the Second World War. The Conflict Minerals Act is a significant and proactive step toward ending the trade of conflict minerals and eventually ending the war.

The scale of the crimes in the Congo, and the connection between consumers and the conflict, is shocking. More than five million people have been killed. Rape is used as a weapon of war – with an estimated 48 women raped every hour. In 2012, there were 2.2 million people displaced and driven away from their homes.

Bill C-486 is part of an international trend to end the trade in conflict minerals and improve consumer awareness of product supply chains. The aim is to cut off the financial resources that sustain the horrors of war in the Congo. 

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Ghost towns haunt S.Africa’s strike-hit platinum belt – by Zandi Shabalala and John Mkhize (Reuters India – April 4, 2014)

http://in.reuters.com/

MARIKANA, South Africa, April 4 (Reuters) – Shad Mohammed’s electronics and household store in South Africa’s platinum belt has survived a series of mining strikes over the 14 years it has been serving customers in the dusty town of Marikana.

Yet with the latest stoppage now in its 10th week, he has sold just 10 phones instead of well over 100, and has had to branch out into deliveries to avoid giving up and going home to Pakistan, another statistic in a devastating industrial dispute. “Our business is totally dependent on the mine workers,” Mohammed, 38, said among shelves filled with cell phones, laptops and large pots. “If they don’t work we really suffer.”

Members of the Association of Mineworkers and Construction Union (AMCU) have downed tools at Lonmin, the main employer in the tough town of Marikana, and rivals Anglo American Platinum and Impala Platinum in a strike over wages, hitting 40 percent of global production.

The stoppage shows no sides of ending with the two sides still poles apart. AMCU wants a basic-entry level wage in three years of 12,500 rand ($1,200) a month, or annual hikes of around 30 percent, while the companies have offered increases of up to 9 percent and say they can afford no more.

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South Africa’s PIC Says Platinum Producers Should Control Prices – by Franz Wild and Janice Kew (Bloomberg News – April 3, 2014)

http://www.bloomberg.com/

South African platinum producers, which account for almost three quarters of world supply, should consider controlling output to improve prices, said the head of Africa’s biggest fund manager.

Anglo American Platinum Ltd. (AMS), known as Amplats, Impala Platinum Holdings Ltd. (IMP) and Lonmin Plc (LMI), the world’s largest producers of the metal, need prices to climb to offset rising costs in an industry already beset by a “concerning” 11-week wage strike, said Elias Masilela, 49, the chief executive officer of the Pretoria-based Public Investment Corp., which manages 1.6 trillion rand ($150 billion) of South African government workers’ pensions.

“They may, as an industry, want to think about supply-demand conditions globally to influence the price,” Masilela, 49, said in an April 1 interview in Johannesburg. “South Africa is a major supplier of platinum, but remains a price-taker. There must be a way of balancing that out given it’s size.”

Masilela’s comments echo those by the governments of South Africa and Russia, which together hold about 80 percent of platinum group metal reserves. The countries plan to set up a production bloc resembling the Organization of Petroleum Exporting Countries, a cartel of the biggest oil-producing countries, they said in March last year.

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Miners in lock-down in Guinea as Ebola death toll hits 84 – by Saliou Samb and Stephanie Nebehay (Reuters India – April 3, 2014)

http://in.reuters.com/

CONAKRY/GENEVA – (Reuters) – Foreign mining firms have locked down operations in Guinea and pulled out some international staff, executives said on Wednesday, as the death toll from suspected cases of Ebola there hit 84.

The West African nation’s government said four new suspected cases of one of the world’s most lethal infectious diseases had been reported in the last 24 hours, bringing the total to 134.

Medical charity Medecins Sans Frontieres (MSF) has warned Guinea was facing an unprecedented epidemic of Ebola that would test weak health systems across West Africa.

Suspected cases of the disease – which has a fatality rate of up to 90 percent – have also been reported in neighboring Liberia and Sierra Leone, while Gambia said two people had been quarantined after arriving from southeastern Guinea.

The epicentre of Guinea’s two-month old outbreak has been in the southeast, close to its main iron ore reserves. The country is also the world’s top exporter of bauxite, the raw material used in aluminum production, and has rich deposits of gold.

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South African mining: Stuck in the past (Financial Times – April 1, 2014)

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

Critics warn that the migrant labour system threatens the stability of important gold and platinum producers

Mcingelwa Maqotyna still remembers the humiliation that came with applying for the job: being forced to strip naked in a room full of other men, then stepping on to scales to be weighed.

Once he had landed the job, he travelled hundreds of miles from his village to a mine, where he had to get used to plunging deep beneath the surface of the earth at lightning speeds. Seeing the cage-like lift for the first time, he fearfully wondered if its exposed cables would hold.

For Nicolson Mkananda it was the contrast between the tranquil rural environment in which he had grown up and the hustle and bustle of life at a mine that struck him: the individualism, the strange languages and the strict control and discipline imposed on workers. “It was very, very frightening to go there,” he says.

These men, who left their remote villages near Lusikisiki in South Africa’s Eastern Cape in the 1960s and 70s, were part of a vast pipeline of cheap labour that allowed the country’s gold and platinum sectors to flourish. This system of migrant labour was developed during colonialism and extended under apartheid, becoming a pillar of the economy.

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Why are platinum and palladium not meeting analyst expectations? – by Lawrence Williams (Mineweb.com – April 1, 2014)

http://www.mineweb.com/

The impact of the 10 week old strike which has halted production at a number of South Africa’s platinum mines so far seems to have had little impact on pgm prices. Why?

LONDON (MINEWEB) – While every now and again some analyst or other comments that perhaps palladium is outperforming gold, or platinum is, on the year to date both the pgms have moved up pretty well pari passu with gold overall. All three metals are around 7-8% up since the beginning of the year. Indeed gold moved up substantially further during the height of the Ukraine crisis and while the pgms followed they did not quite do so to the same extent. As gold has fallen back though, the pgms have caught up again.

Many analysts have been preaching the investment merits of the pgms in the light of the long running platinum strike in South Africa which has seen a number of mines effectively shut down so far for some ten weeks – with no end in sight to the strikes yet.

The more aggressive AMCU which has become the dominant player among the platinum mine unions, has been demanding an effective doubling of the workers’ wages which the mining companies have concertedly said they cannot afford – and with many of the deep narrow reef platinum producers finding it tough to make any kind of profit even at current platinum prices they do have a point.

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Kinross announces lower capital costs for Tasiast in Mauritania – by Henry Lazenby (MiningWeekly.com – April 1, 2014)

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

TORONTO (miningweekly.com) – Canadian miner Kinross Gold on Monday announced the results of a feasibility study that examined the viability of significantly expanding output at its Tasiast mine, in Mauritania, saying that the expected capital cost would be less than what a prefeasibility study (PFS) estimated last year.

The TSX- and NYSE-listed miner said that the initial capital cost to expand the mine would be $1.6-billion, compared with its PFS estimate of $2.7-billion. A thorough review of project design, execution and scope produced about 230 cost-saving initiatives worth about $493-million.

Examples of the cost savings included pre-assembled plant modules, concrete precasting and greater reliance on in-house technical expertise for mine planning, engineering, geological modelling and overall project oversight.

The company also expected a decrease in Tasiast’s expected water demand owing to a planned reduction in dump-leach processing, more accurate mill modelling and greater-than-expected water availability from current sources, which had resulted in the company being able to defer the need to begin building a sea water pipeline from the coast to the mine until 2018.

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Ivanhoe PEA provides glimpse of SA’s potential platinum future – by Jeff Candy (Mineweb.com – March 28, 2014)

http://www.mineweb.com/mineweb/

The miner is planning to have an 8 million t/y platinum operation up by 2024, at costs of under $500 an ounce excluding by-product credits.

GRONINGEN (MINEWEB) – Ivanhoe Mines’ preliminary economic assessment of its Platreef PGM project in South Africa is some welcome good news for a sector that has had more than its fair share of bad.

As the world’s three largest platinum miners continue to bleed in the wake of a strike that has cost them and their workers billions of rands, Ivanhoe’s PEA, released yesterday, confirms the size and scope of a project that not only has the benefit of significant base metal credits, but also ore veins that are wide enough to accommodate mechanised mining.

Driving home the difference between Platreef and its deep, thin-veined peers, CEO, Robert Friedland commented, “We’re looking forward to working with all of our stakeholders to advance the Platreef Project to production, to create valued and skilled jobs and to significantly contribute to the socio-economic development of the people of area communities who will have a voice in decision making and a direct share in our success through our responsively structured, broad-based, black economic empowerment partner.”

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