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Miner calls for end to Australian class war – by John McCarthy (Brisbaine Courier-Mail – June 25, 2013)

http://www.couriermail.com.au/business

ANGLOAMERICAN has called for the end of class warfare and for more vision from governments to revive Australia’s global business and repair its reputation

New chief executive Mark Cutifani said Australia’s reputation had been badly damaged by the debate over mining tax and the Government’s initiation of class warfare. That debate was sparked by attacks on the mining industry by people such as Gina Rinehart and his comments will add fire to the internal power struggle in the Labor Government.

Mr Cutifani said people in Europe and Asia were concerned about Australians brawling with each other, rather than debating the issues. “That is something they say they haven’t seen for 20 or 30 years,” Mr Cutifani said.

He would tell a Minerals Council of Australia forum in Canberra tomorrow that governments had not spent the revenue from the mining industry wisely. “There is a lack of vision, but it’s even worse than that,” he said. “It worries me that we have been fighting each other, rather than working together.

“The class warfare thing has done incredible damage,” Mr Cutifani said. “I am amazed by how many people who are observing us remark on how we are fighting each other, rather than just our normal robust debate.”

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Tempers flare at mine as leaders dither – by Loni Prinsloo (South Africa Business Day Live – June 16, 2013)

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

AS HIGH-level leaders of government, business and labour met on Friday to stabilise the troubled mining environment, tempers flared at one of South Africa’s biggest platinum mines in Rustenburg.

Chris Griffiths, CEO of Anglo American Platinum (Amplats), met Deputy President Kgalema Motlanthe, Finance Minister Pravin Gordhan and other senior stakeholders while about 2,400 workers were prevented by other employees from exiting underground operations at Amplats’ Thembalani mine near Rustenburg by shop stewards of the Association of Mineworkers and Construction Union (Amcu).

Amplats said this followed the suspension of four shop stewards “for inappropriate behaviour that is against our behavioural procedure”.

The battle between the National Union of Mineworkers (NUM) and Amcu that boiled over in August 2012 has not died. Tensions are running high with the first round of wage negotiations due in about two weeks. Amcu is determined to gain majority recognition at the platinum mines.

“While it is a positive move for leaders from different spheres to come together to address the issues, it will ultimately be the buy-in from workers that determines whether such a framework will make any difference. Therein lies the real challenge,” said Solidarity general secretary Gideon du Plessis.

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Environment assessment for Alaska’s Pebble mine ‘theatre of the absurd’ – Northern Dynasty- by Henry Lazenby (MiningWeekly.com – June 5, 2013)

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

TORONTO (miningweekly.com) – Dual-listed project developer Northern Dynasty Minerals has filed a 205-page submission with the US Environmental Protection Agency (EPA) in response to its call for public comments on the revised draft Bristol Bay Watershed Assessment (BBWA), calling the draft report and the process used to complete it “biased, manipulative and contrary to the EPA’s own guidelines”.

Northern Dynasty president and CEO Ronald Thiessen said the 2013 draft BBWA, released in April, suffers from the same significant shortcomings as the original report published in May 2012 – in particular, that the EPA continued to assess the environmental effects of a hypothetical mine of its own invention, one that did not employ modern engineering standards, environmental safeguards or project-specific mitigation measures and could not be permitted under US or Alaska law.

Despite the fact that the EPA’s “hypothetical mine” was sited at the location of the Pebble deposit, Northern Dynasty believed the BBWA authors continued to refuse to consider the most extensive scientific data set available on the region – environmental baseline data collected by the Pebble Limited Partnership (PLP) at a cost of about $150-million.

Northern Dynasty said the EPA’s failure to fully consider the PLP’s environmental data was contrary to its own guidelines for data quality and was compounded by the fact that the BBWA study authors had never set foot on the Pebble project site.

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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.

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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.

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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.

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Sick miners ask Anglo for details of defence – by Ernest Mabuza (Business Day Live [South Africa] – April 29, 2013)

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

THE long-awaited hearing in which 10 former Anglo miners with silicosis and silico-tuberculosis are seeking compensation began on Friday with an application to compel Anglo American to provide more details of its defence.

The Legal Resources Centre, Legal Aid SA and London-based Leigh Day have been involved in the groundbreaking class action suit since 2004. The two sides agreed last year to go to arbitration.

President Steyn, at which the 10 miners worked, was Anglo’s largest mine in the Free State in the 50-year period up to 1998. Four of the claims are brought by the next of kin of miners who have passed away since the litigation began.

The 10 plaintiffs are part of a group of 18 from the Free State, Eastern Cape and Lesotho who are claiming compensation for silicosis and silico-tuberculosis they argue were contracted when they worked at mines owned by Anglo.

Their claim is that Anglo American SA, the head office company of the Anglo group, was negligently controlled and wrongly advised the mines about dust control measures and silicosis. The former miners are seeking compensation for pain and suffering and for lost earnings and medical expenses.

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Religious groups keep an eye on global mining giants – by Kari Lydersen (Global Post – April 27, 2013)

http://www.globalpost.com/

Faithful activists converged on London to continue lobbying on behalf of those hurt by industrial mines.

LONDON — When he was studying to be a priest, Richard Solly mulled founding a group called Clergy Against Gold Exploitation — CAGE.

While presiding over weddings, his idea went, clergy would profess shock during the exchange of rings and ask, “Is that gold? Do you know how many people suffered for that?”

CAGE was just a joke. But religious activists like Solly, part of a coalition including Protestants and Catholics, have become central to the international mining watchdog and opposition movement which has developed over the past three decades. The movement has become increasingly focused on multinational mining companies headquartered in London and traded on the London Stock Exchange, some accused of damaging ecosystems, displacing residents and disrupting local economies around the world.

On April 17, just before the annual general shareholder meetings of mining giants Rio Tinto and Anglo American, Solly and a group of people impacted by the companies’ mines around the world visited the Church of England.

They asked church officials to pressure the companies to improve their labor and environmental practices, or risk divestment by the church’s fund. In 2010, the church pulled its investments from the London-based global mining company Vedanta Resources based on its record in India.

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Anglo American to spend $80 million advancing proposed Pebble Mine – by Laurel Andrews (Alaska Dispatch – April 22, 2013)

http://www.alaskadispatch.com/

The Pebble Partnership plans to spend $80 million this year on advancing its proposed mine in Alaska’s Bristol Bay.

The proposed Pebble Mine, 200 miles southwest of Anchorage, is estimated to hold 81 billion pounds of copper, 107 million ounces of gold and 5 billion pounds of molybdenum, and is said to be one of the largest such deposits in the world. However, the location of the proposed massive open-pit mine — near the breeding grounds of the fertile Bristol Bay salmon fishery — has led to intense scrutiny by opponents of the mine who say it would damage salmon streams that are important both commercially and culturally to the region.

The Pebble Partnership is 50-50 venture between global mining companies Anglo American and Northern Dynasty. Last year, the Pebble Partnership spent $107 million on preparing the permit application for the proposed mine. To date, the partnership has spent $680 million steering the project toward development.

The $80 million spent this year will come from Anglo American, due to the way the joint venture is structured, said Mike Heatwole, Pebble Partnership spokesperson. This year’s funds will be spent with the goal of developing an overall project description and toward initiating the National Environmental Policy Act (NEPA) permit process.

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Mining sector needs new inspiration – Cutifani – by Geoff Candy (Mineweb.com – April 22, 2013)

http://www.mineweb.com/

In his first speech as CEO of Anglo American, Mark Cutifani lays out a number of the challenges facing his new charge and the rest of the mining sector.

GRONINGEN (MINEWEB) – New Anglo American CEO, Mark Cutifani, is not known for pulling his punches. And, his first speech as Anglo American CEO was no different.

Speaking at the group’s Annual General Meeting, Cutifani told Anglo American shareholders that with the group’s share price languishing compared to its peers, business as usual was no longer acceptable.

“As a major diversified company, we need a more focused articulation of the value proposition that will guide our strategic positioning,” Cutifani said, before adding that Anglo American (and the rest of the sector) need to look beyond the mining industry for inspiration.

“To be brutally frank, our industry lags the petroleum, manufacturing and aviation sectors and other more progressive and innovative heavy industry players in terms of operating practices – there is no reason why our industry should not use the best from all of these ‘restless innovators’.”

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Amplats, Minas Rio expected to be Cutifani’s biggest headaches at Anglo – by Leandi Kolver (April 19, 2013)

http://www.miningweekly.com/

Analysts in the South African mining industry believe that new Anglo American CEO Mark Cutifani’s biggest challenge might be platinum mining company Anglo American Platinum (Amplats), based on the recent volatility of the sector, plagued by violent strikes and uncertainty.

The significantly overbudget Minas Rio iron-ore project, in Brazil, is a close second. Cutifani replaced former Anglo American CEO Cynthia Carrol on April 3. Mining Weekly reported in January that Liberium Capital analyst Ben Davis had said that the challenges arising from the “structurally defunct” Amplats and the continuing capital cost increases at the Minas Rio project had no easy solutions.

South Africa’s Public Investment Corporation said that Anglo American’s “main issues” centred on capital allocation, project management and operational challenges, which, taking Cutifani’s experience into consideration, could be dealt with.

Amplats posted its first loss last year, with the loss partly stemming from flat metal prices and cost increases of more than 15% a year and from illegal strikes rooted in a turf war between members of the Association of Mineworkers and Construction Union and the National Union of Mineworkers.

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Sir Mark Moody-Stuart: “CEOs must listen and visibly engage” – Critical Resource – January 2013

Critical Resource specializes in political, sustainability and stakeholder risks facing natural resource investments. We advise senior executives and investors in some of the world’s largest companies. http://www.c-resource.com/

In a wide-ranging interview with Critical Resource, Sir Mark Moody-Stuart – former Chairman of Anglo American and Shell gives his top tips on managing stakeholder expectations, resource nationalism, and other social and political pressures facing resource firms.

CEOs should focus hard on engagement

CEOs need to be open and talk to people. They need to visibly engage and communicate both inside and outside the organisation. This is extremely important. First, CEOs have to listen and secondly, they need to be extremely clear. When a project opens, local people often hope to become wealthy and gain employment. It is important for companies to speak about the realities and explain what is really going to happen.

People need to be told early if they lack the education levels to fill jobs. Be clear about what jobs are likely to be available so as to ground expectations in reality. Companies then need to challenge themselves to raise education levels so that kids who are now eight can think about going to university when they are 18. They need to commit to creating a mechanism and to test progress towards that goal – consulting stakeholders on progress.

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Cutifani says to initially focus on [Anglo American] value creation – by Idéle Esterhuizen (MiningWeekly.com – April 3, 2013)

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

JOHANNESBURG (miningweekly.com) – Diversified miner Anglo American’s new CEO Mark Cutifani has indicated that his initial focus would be to find ways to improve value creation within the company.

“I will look to start with the value proposition for being a major diversified [company]. I will look at the portfolio, the commodities we are in – do they make sense? Are they the right commodities for the future? The assets – are they competitive?…Should we be doing things differently to realise value?” he said during a video interview on his first day as CEO of the mining group.

Cutifani, who has mined on six continents in 25 countries and in 20 commodities and who succeeded Cynthia Carroll, indicated that he would be scrutinising the company’s balance sheet to determine whether it had the capacity to realise value and whether it was adequately operationally flexible.

A process of determining whether the right people were in the right positions to do the required work would also be undertaken.
Further, Cutifani said he would be looking into the company’s structures and systems, as the mining sector was lagging behind others in this regard.

“I would like to put those pieces together in that first three or four months…getting the major themes out there and understanding what we have to attack to really create value in the long term.

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Russia, South Africa Seek to Create OPEC-Style Platinum Bloc – by Ilya Arkhipov & Franz Wild (Bloomberg.com – March 27, 2013)

http://www.bloomberg.com/

Russia and South Africa, countries that hold about 80 percent of platinum group metal reserves, plan to set up an OPEC-type trading bloc to coordinate exports.

“It can be called an OPEC,” Russian Natural Resources Minister Sergey Donskoy said late yesterday in an interview in Durban. “Our goal is to coordinate our actions accordingly to expand the markets. The price depends on the structure of the market, and we will form the structure of the market.”

South Africa mines about 70 percent of the world’s platinum and Russia 40 percent of its palladium, a metal from the same group used to cut car pollution, Johnson Matthey Plc (JMAT) said in a 2012 report. Other nations would be able to join the group. The U.S., Zimbabwe and Canada are among producers of the metals. The Organization of Petroleum Exporting Countries is an oil cartel.

Platinum and palladium prices rose following yesterday’s comments by Donskoy. South Africa and Russia signed only a “framework” accord, he said, with details yet to be decided.

“We are now forming working groups to work out joint actions on this market,” Donskoy said. “There will be a meeting in the summer to discuss mechanisms in detail.”

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Anglo American is a South African company, Minerals Minister reminds new CEO – by Martin Creamer (MiningWeekly.com – March 22, 2013)

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

“Mark, this Anglo American plc, it’s ours. It’s a South African company,” Mineral Resources Minister Susan Shabangu reminded incoming Anglo American CEO Mark Cutifani at a Chamber of Mines function in his honour.

“We hope you’ll make sure that it remains South African,” the Minister added. Her comments follow those of African National Congress (ANC) secretary-general Gwede Mantashe, who last month emphasised the South African roots of Anglo American and lamented reference to it as a British company.

Mantashe contended that allowing companies to migrate to global stock exchanges had impacted negatively on South Africa’s own exchange and denied the country part of its economic heritage.

Shabangu also raised the point of regret by some of Anglo American being allowed to domicile in a London listing: “When we speak, sometimes people say that we made a mistake to allow Anglo to list in London. Well, because it has happened, we’re not going to pursue that now, but what we want to see is Anglo continuing to brand itself as a South African company,” she said, adding that, with the appointment of Cutifani, the country was positive that would happen.

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