Twitter

Africa Mining

Children as young as 8 working in Congo copper mines in Democratic Republic of Congo – by Tanya Talaga (Toronto Star – May 24, 2013)

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.

World Vision has documented the voices of children kept out of school to work in a copper and cobalt artisanal mine in the southern Democratic Republic of Congo and has found that “this type of hard labour is robbing children of their childhood.”

Child labour in developing world garment factories is a tragic, known occurrence but a new report on children as young as eight toiling away in African mines sheds light on a forgotten group. World Vision, a Christian relief organization, documented the voices of children kept out of school in order to work in a copper and cobalt artisanal mine in the southern Democratic Republic of Congo.

The key goal of this project, entitled “Child Miners Speak,” was to build trust and talk specifically to children to ask them how they feel about working in the harsh conditions of the mines, said Harry Kits, World Vision’s senior policy adviser for economic justice.

“This type of hard labour is robbing children of their childhood,” Kits said in an interview Thursday.

After speaking with 50 children in Kambove, aged eight to 17, World Vision documented children ill with various infections from working in polluted water or being exposed to mercury or uranium.

Read more

Conflict Minerals Law Is Heavy Burden On Business, House Republicans Argue – by Christina Wilkie (Huffington Post – May 22, 2013)


 

http://www.huffingtonpost.com/politics/

WASHINGTON — Republicans at a House subcommittee hearing this week objected to a 2010 law that targets conflict minerals from Central Africa, saying it places too many regulations on U.S. businesses and hasn’t accomplished enough since it went into effect.

“Some of us may pat ourselves on the back and say, ‘Well, we’re making sure we’re not using their minerals,’ but we’re only hurting the people of the Congo,” said Rep. Marlin Stutzman (R-Ind.), who called the law “a massive paperwork burden on U.S. companies.”

Profits from mining of lucrative minerals in the Democratic Republic of the Congo (DRC) have helped fund a brutal conflict between rebel militias and government troops that has claimed more than 5 million lives since 1998. For those who live in the conflict areas of eastern Congo, the threat of rape and mutilation is constant; both are used as weapons of war. In the isolated mining camps of the region, men and boys often work in debt bondage or outright slavery. Above ground, women and girls are even more vulnerable to the violence, and desperation forces many of them into the commercial sex trade.

The conflict minerals law originated with then-Sen. Sam Brownback, now the Republican governor of Kansas, who argued in 2008 that “with 1,500 people dying a day [in the Congo’s civil war], there is no room for turning a blind eye on this matter.” Bolstered by the support of United Nations experts and human rights groups, Brownback’s plan became law two years later, as Section 1502 of the Dodd-Frank financial reform legislation.

Read more

Vale’s vale of tears in Mozambique (MSN Money Canada – May 22, 2013)

http://ca.msn.com/?rd=1&ucc=CA&dcc=CA&opt=0

Labor disruptions, flooding and infrastructure problems will mean a substantial reduction in coal exports.

Vale has announced a 30% reduction in its 2013 target for coal exports out of its Moatize mine in Mozambique. The target has been reduced from 4.9 million tonnes planned earlier to 3.4 million tonnes. The revision follows incidents of labor disruptions and heavy flooding, which rendered its railway line temporarily unusable. Infrastructural limitations in Mozambique continue to pose a challenge to Vale, hampering its ability to get the coal produced from pit to port.

The reduction in export volumes, combined with falling coking coal prices in the international market, will impact revenues negatively. However, since the coal division constitutes just 2% to 2.5% of the company’s total gross operating revenues, the overall impact is expected to be muted. On the other hand, the news exposes the fragility of Vale’s Mozambican business and the significant challenges it faces to diversify away from its iron ore business.

Infrastructure bottlenecks are the topmost concern of coal miners operating in Mozambique. Both the government and the private sector have been executing various projects to expand and build new railway lines and ports, but infrastructure will take time to reach satisfactory levels. In 2012, Vale had to cut down its initial export targets by half due to infrastructure issues.

Read more

NUM seeks up to 60% wage hike from SA gold producers – by Idéle Esterhuizen (MiningWeekly.com – May 20, 2013)

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

JOHANNESBURG (miningweekly.com) – South Africa’s Chamber of Mines (CoM) on Monday confirmed the reciept of proposals by the the National Union of Mineworkers (NUM) regarding the revision of wages and conditions of employment of gold mining companies represented by the Chamber.

Newswire Reuters reported that NUM indicated that it would seek an entry-level minimum monthly wage of R7 000 for surface workers and R8 000 for underground workers in the gold mining industry.

The demand equates to a 49% increase for surface workers, who currently earn an entry-level wage of R4 700 and a 60% hike on the R5 000 underground worker wage.

CoM spokesperson Charmane Russell told Mining Weekly Online that the current minimums was for basic salaries, excluding benefits and allowances. Reuters also reported that NUM would seek a 15% wage hike for “all other wage categories”.

The CoM is representing AngloGold Ashanti, Gold Fields, Harmony, Sibanye Gold, Village Main Reef, Pan African Resources and Rand Uranium in the gold mining industry wage negotiations, which Russell said would get under way in early to mid-June.

Read more

Ghana hopes to shield economy from African oil curse – by Matthew Mpoke Bigg and Kwasi Kpodo (Reuters India – Mary 21, 2013)

http://in.reuters.com/

ACCRA, May 21 (Reuters) – Oil brought riches to Nigeria but also ravaged its economy and fuelled corruption and conflict. Now nearby Ghana has begun production and wants to take the wealth but dodge the oil curse.

Ghana is used to resource riches: it is already the world’s number two cocoa producer and Africa’s second-largest gold miner. But there are signs it is struggling to manage the new oil money and some people are disappointed.

A budget deficit last year which soared to 12 percent of gross domestic product (GDP), nearly twice the targeted level, raised fears among economists of fiscal laxity, a classic symptom of the resource curse that often feeds corruption.

Investors are also watching the strengthening cedi currency . An inflation-adjusted rise due to an influx of petro-dollars can signal “Dutch disease”, where the competitiveness of farming and manufacturing is eroded, as in Holland in the 1960s.

“The government seems to be very much wary of the dangers of Dutch Disease,” central bank governor Henry Kofi Wampah said. “Oil will continue to attract attention but not at the expense of cocoa or gold.”

Read more

Sherritt facing demands from activist as chairman Ian Delaney retires – by Peter Koven (National Post – May 8, 2013)

The National Post is Canada’s second largest national paper.

A turbulent period could be looming for Sherritt International Corp., as an activist investor is challenging the company just as its long-time chairman and figurehead retires.

Scott Leckie of Takota Asset Management is calling on Toronto-based Sherritt to buy back more stock and study a potential lawsuit against SNC-Lavalin Inc., which he believes is responsible for cost overruns and delays at the company’s Ambatovy nickel project. He said he took his complaints public after Sherritt ignored three private letters.

“[Sherritt CEO] David Pathe has said they’re in a position to respond to opportunities. To me that means they have excess capital above and beyond anything they’re going to need for the last bits and pieces of Ambatovy,” Mr. Leckie said in an interview.

Sherritt also quietly revealed in a filing that chairman Ian Delaney, 69, is retiring from the company and is not standing for re-election at the annual meeting later this month.

He has been Sherritt’s dominant personality since he seized control of it in a proxy fight in 1990, and his departure leaves a major gap. But it does not come as a shock; in late 2011, he passed the CEO job on to Mr. Pathe and said he was content with the state of the company.

Read more

Lonmin South Africa workers strike, raising fears of unrest – by Joshua Nhlapo (Reuters U.S. – May 14, 2013)

http://www.reuters.com/

(Reuters) – South African workers at the world’s No. 3 platinum producer Lonmin (LONJ.J) (LMI.L) launched a wildcat strike on Tuesday, halting all mine operations and sparking fears of a return to the violence that rocked the industry last year.

As dusk fell, a strike leader told thousands of workers gathered at a stadium near Lonmin’s Marikana mine to return home and continue the strike on Wednesday. Workers told a Reuters reporter no one would show up for the night shift.

Activists also said they would go to shafts the next day to threaten those who showed up for work, using the Zulu word for “rat” to describe them. This follows a pattern of intimidation that has accompanied illegal strikes in South Africa.

The platinum belt towns of Rustenburg and Marikana, which saw violent strikes at Lonmin and other producers last year, are a flashpoint of labor strife, with tensions running high over looming job cuts and wage talks.

Aggravating the situation is a turf war between the Association of Mineworkers and Construction Union (AMCU) and the National Union of Mineworkers (NUM) – an ally of the ruling ANC that has lost many of its members to the more militant AMCU.

An NUM spokesman said Tuesday’s strike appeared to stem from anger over the killing of an AMCU member. A police statement said a 46-year-old man “alleged to be the regional organizer of AMCU” had been shot dead in a Rustenburg tavern on Saturday.

Read more

Anglo American Platinum Announces Revised Proposals to Create a Sustainable, Competitive and Profitable Platinum Business – (All Africa.com – May 14, 2013)

http://allafrica.com/

Johannesburg — In January 2013, Anglo American Platinum Limited (“Anglo American Platinum” or “the Company”) announced its proposals to create a sustainable, competitive and profitable platinum business for the long term benefit of all its stakeholders.

Following the announcement of its proposals, Anglo American Platinum and its recognised unions agreed to suspend the section 189 consultations to allow for engagement to take place with the Department of Mineral Resources (DMR) and the unions.

At the request of the DMR, such engagement became a bilateral engagement between Anglo American Platinum and the DMR. The bilateral engagements with the DMR have now been completed. Anglo American Platinum has formulated revised proposals which remain focused on improving the profitability and sustainability of its business, while taking cognisance of the local and national socio economic challenges.

The Company’s review of the business was in response to its revised expectations for platinum demand growth and a number of structural challenges that have eroded profitability in recent years, including capital intensity, mine depths, lower ore grades, higher than inflation unit cost increases, jewellery demand elasticity and increasing secondary supply of platinum.

Anglo American Platinum’s revised proposals continue to address the objective of aligning the business with its expectations of long term demand and are an extension of the steps taken to reposition the business in recent years.

Read more

Platinum market records 375 000 oz deficit in 2012 – by Idéle Esterhuizen (MiningWeekly.com – May 13, 2013)

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

JOHANNESBURG (miningweekly.com) – The global platinum market experienced a deficit of 375 000 oz in 2012, owing to a steep decline in output from South Africa, platinum group metals authority Johnson Matthey’s ‘Platinum 2013’ report has revealed.

Published on Monday, the report found that primary platinum supply fell by 13% to 5.64-million ounces, its lowest level in twelve years. Total platinum demand for the year was down by 0.6% to 8.05-million ounces, while recycled platinum came to 2.03-million ounces, marginally less than in 2011.

Platinum recycling from end-of-life autocatalysts fell in Europe and North America, while the price of platinum averaged $1 552/oz in 2012, $169 lower than in 2011, prompting collectors to hoard stock, while awaiting better price opportunities.

However, the decline in recovery from this source was partly offset by greater recycling of platinum jewellery scrap in China. Platinum shipments by South African producers slumped by 16% to 4.1-million ounces during the year under review, with at least 750 000 oz of production lost to strikes, safety stoppages and the closure of some marginal mining operations.

Meanwhile, gross demand for platinum in autocatalysts rose by 1.7% to 3.24-million ounces.

Read more

A fair [resource] deal for Africans – by Peter Eigen (National Post – May 13, 2013)

The National Post is Canada’s second largest national paper.

Peter Eigen is founder and chair of the Advisory Council, Transparency International, founding chairman of the Extractive Industries Transparency Initiative, and a member of the Africa Progress Panel.

Across Africa, an extraordinary natural resources boom is underway. Energy and mineral extraction is driving economic growth on the continent. New exploration, new discoveries and no let-up in global demand mean Africa has a unique opportunity to deliver prosperity and opportunity for its citizens.

As you would expect from a country at the centre of the world’s mining industry, Canada is playing a major role. Eight of the countries where Canadian mining assets exceed $1-billion are in Africa. But this also places a special responsibility on Canada to ensure Africa benefits as well.

For while Africa’s economic growth at an average 5% per year for the past decade has been impressive, this success has not been translated into improvements in the lives of its citizens. African countries are not getting a fair share of the revenues from the mining activities within their borders. Weak African governance can mean the money which is paid is not used effectively to improve public services or create employment.

Read more

Amplats to slash platinum production, 6,000 jobs, in South Africa – by Geoffrey York (Globe and Mail – May 11, 2013)

Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — The world’s biggest platinum producer, Anglo American Platinum, has announced plans to cut 6,000 jobs from its South African mines, triggering fears of a major battle with trade unions as the platinum sector struggles with mounting losses.

The announcement was immediately greeted by furious criticism from South Africa’s powerful unions, raising the spectre of another season of violent clashes in a country where dozens of workers were killed last year.

But the company, known as Amplats, insisted that it had to reduce production in its platinum mines after suffering heavy losses last year. One study estimated that 70 per cent of all South African platinum mines were operating at a loss last year because of rising costs, oversupply and falling prices.

Amplats had originally intended to cut 14,000 jobs from a work force of about 56,000 employees. But when its plan was first mentioned in January, the South African government was outraged, accusing the company of behaving like “a child.”

The company agreed to suspend the plan while it discussed the issue with the government, but on Friday it announced that it would still go ahead with deep cuts to its production and job levels.

Read more

African states should own half of new mining ventures, says Mohohlo – by Paul Vecchiatto (South Africa Business Day Live – May 10, 2013)

http://www.bdlive.co.za/

AFRICAN governments should own at least a 50% stake in any new mining venture in order to ensure the country receives more of the revenue that flows from a project than the mining company receives.

This is a recommendation of Linah Mohohlo, governor of Botswana’s central bank and a member of the Africa Progress Panel.

Speaking at Friday’s launch of the panel’s Africa Progress Report 2013, Ms Mohohlo pushed the point that only if there were transparency in monetary flows could there be real transparency on how mining companies operate on the continent.

However, Ms Mohohlo stressed that her recommendation was not a call for nationalisation in any way.

“What it is, it is a recommendation. As a former central banker I believe that only central banks can and should handle the revenue flows that stem from mining.

“The country, or the government, must receive more of the revenue flows out of a project than the company does,” she said. Ms Mohohlo said governments had to use the minimum shareholding of 50%, plus a sound tax regime that included clear guidelines on collection and definite dates for the end of the tax holidays often granted for a project to start.

Read more

Tensions high as Amplats to unveil South Africa job cuts plan – by Ed Stoddart (Reuters U.S. – May 9, 2013)

http://www.reuters.com/

(Reuters) – Anglo American’s (AAL.L) platinum arm, under pressure from South Africa’s government, could announce a restructuring plan on Thursday or Friday that will sharply scale back job losses as it tries to balance out cost cuts and the threat of labor unrest.

Anglo American Platinum (AMSJ.J) had planned to slash 14,000 jobs and mothball two mines to return to profit but industry sources have told Reuters that the final plan would be pared back, with as few as 5,000 jobs cut.

Militant workers have signaled they will launch protest strikes even if the job cuts fall far short of the initial target. Social tensions are running high after violence rooted in a labor turf war killed more than 50 people last year and sparked illegal strikes that hit production.

For Amplats, reining in costs and cutting production to such an extent that it lifts the price of platinum, used for emissions-capping catalytic converters in automobiles, is absolutely crucial after it fell into a loss last year.

“From the point of view of Amplats itself, both numbers will be critical, how many ounces will you produce, but also how many people, because that impacts on the cost base,” said Alison Turner, an analyst at Panmure Gordon.

Read more

Darfur gold mine collapse kills 100, traps rescuers (Japan Times – May 4, 2013)

http://www.japantimes.co.jp/

KHARTOUM – Around 100 miners are estimated to have died inside a collapsed gold mine in Sudan’s Darfur region, and nine of the rescuers trying to free them have become trapped as well, a miner said Friday.

“Nine of the rescue team disappeared when the land collapsed around them” on Thursday said the miner, who had visited the scene.

The unlicensed desert gold mine in the Jebel Amir district, more than 200 km northwest of El-Fasher, the capital of North Darfur state, began to cave in Monday.

The stench of death is now seeping out of the baked earth, the miner said. “Yesterday (Thursday) eight bodies have been found and still they are looking for the others,” he said. “According to a count by people working in the mine, the number of people inside is more than 100.”

On Thursday, the Jebel Amir district chief, Haroun al-Hassan, said “the number of people who died is more than 60,” but added it was unclear whether anyone might still be alive.

Read more

Cobalt firms on DRC ore uncertainty, tight supply – by Harpreet Bhal (Reuters U.S. – May 3, 2013)

http://www.reuters.com/

LONDON, May 3 (Reuters) – Uncertainty about the availability of cobalt concentrates from the Democratic Republic of Congo (DRC), the world’s largest ore producer, is pushing up prices for the metal at a time the market is already tight due to low supplies, traders said.

The price of high grade cobalt has risen steadily since the beginning of the year after hitting a 9-year low of $10 a pound in November and now stands at around $13.50/lb, up 30 percent from the lows and higher than $12/lb in March. .

Traders said the market was already tight, as producers were running low on stocks, when it emerged that the DRC planned to ban the export of raw materials of the metal used in batteries and in alloys for jet engines and gas turbines.

The African country in mid April banned exports of copper and cobalt concentrates to encourage miners to process and refine the red metal within its borders, according to an order from the Mines Ministry.

The order, seen by Reuters and dated April 5, provides companies 90 days to clear stocks before the ban is enforced, but a day later the governor of Katanga, Congo’s sole copper and cobalt mining province, said he would not enforce a new ban.

“Prices are nudging up due to the uncertainty and we’re seeing a bit of buying ahead of the ban coming into force in a market that is already tight,” said one physical trader.

Read more