Asia Mining – Page 112 – Republic of Mining

Chinese tighten grip on Tenke mine as Lundin agrees to sell stake for $1.14bn – by Cecilia Jamasmie (Mining.com – November 15, 2016)

November 15, 2016

http://www.mining.com/

After weeks of deliberation, Canada’s Lundin Mining (TSX:LUN) said Tuesday it will sell its minority stake in the African copper mine Tenke Fungurume to a Chinese private-equity firm for $1.14 billion in cash.

The deal is a result of the Toronto-based miner’s review of strategic options for its interest in TF Holdings Ltd., the Bermuda holding company that indirectly owns an 80% interest in the massive mine, located in the Democratic Republic of the Congo.

Lundin has an indirect 30% interest in TF Holdings, which translate into the miner owning 24% of Tenke. Congo’s state miner Gecamines owns 20%. The remaining 56% belongs to Freeport-McMoRan (NYSE:FCX), which back in May signed a deal to sell that stake to China Molybdenum (CMOC) for up to $2.65 billion, a crucial part in the Phoenix-based company’s debt reduction plan.

Trump May Give Already Hot Indonesian Miners an Extra Boost – by Harry Suhartono and Fitri Wulandari (Bloomberg News – November 14, 2016)

November 14, 2016

http://www.bloomberg.com/

Already riding a rebound in coal and nickel prices that’s made them some of the hottest stocks in Asia, Indonesian miners may get an extra tailwind from Donald Trump.

A gauge of Indonesian miners has risen 21 percent this quarter, compared with a 4.6 percent decline in the Jakarta Composite Index, as output curbs in China pushed up coal prices and nickel was supported by an environmental crackdown in the Philippines, the world’s top supplier. Mining and agriculture were the only two of nine industry gauges on the JCI to climb on Friday as the measure plunged 4 percent in its biggest drop in three years.

Emerging-market stocks and currencies are taking a beating on speculation the Federal Reserve will have to raise interest rates faster than anticipated to contain inflation if President-elect Trump follows through on pledges to ramp up spending.

Inside India’s mines: Between Jan and June 2016, a death every third day – by Anil Sasi (Indian Express – November 9, 2016)

November 9, 2016

http://indianexpress.com/

New Delhi – * Just after the dawn on May 28, a mining accident at the Turamdih Uranium Mine near Jamshedpur, run by the state-owned Uranium Corporation of India Ltd (UCIL), killed three miners. 24-year-old Sonaram Kisku, a tribal contract worker, 42-year-old safety officer Surya Kant Singh and Milan Karmakar, 35, a general foreman died after they accidentally got buried under the wet radioactive slurry that they were reportedly clearing at a depth of over 250 metre in the Turamdih mine, 6 km from Jamshedpur in Jharkhand.

* Three workers of Singareni Collieries Company Ltd (SCCL) — T Hanmantha Rao and G Posham, both were timbermen, and D Kistaiah, a mason — were crushed to death when a portion of the roof of a structure inside the coal mine collapsed on them when they came in to drink water around mid-day on April 14. Of the four workers at the Shanthikhani main site near Mandamarri, one escaped with minor injuries.

Including the six lives that were lost in the two recent accidents, there were a total of 65 deaths during the first six months of this year in a series of accidents at the country’s coal and non-coal mines — translating into a fatality every three days.

Canada’s Quebec injects $130M into Tata Steel Quebec-Labrador iron ore project – by Cecilia Jamasmie (Mining.com – November 7, 2016)

November 8, 2016

http://www.mining.com/

Canada’s province of Quebec just invested about $130 million (Cdn$175 million) in an iron ore project majority owned by Tata Steel Minerals Canada (TSMC), a subsidiary of Indian giant Tata Steel.

The deal aims to advance development of the Direct Shipping Ore (DSO) property, which straddles the border between Quebec and Labrador, with mineral deposits on both provinces.

The transaction, first announced in July, consisted of a loan of $50 million from Investissement Quebec along with $125 million for an 18% equity stake in TSMC through Ressources Quebec.

Eastern Indonesia’s economy propelled by commodities pickup – by Prima Wirayani, Grace D. Amianti and Stefani Ribka (Jakarta Post – November 8, 2016)

November 8, 2016

http://www.thejakartapost.com/

Provinces in the eastern part of Indonesia are seeing robust economic growth in the third quarter thanks to higher commodity prices, but without diversification away from commodities the regions may not sustain such rapid growth, economists say.

While the nation’s overall economic growth was 5.02 percent in the July to September period yearon-year (yoy), provinces in eastern Indonesia saw higher growth, namely Maluku and Papua with 13.72 percent, Sulawesi with 6.67 percent and Bali and Nusa Tenggara, both with 5.04 percent, according to data from the Central Statistics Agency (BPS).

President Joko “Jokowi” Widodo said he wants to spread economic contributions from the eastern part of Indonesia to the whole archipelago and pledged to boost infrastructure development in the regions.

Illegal mining, weak government help Taliban expand in Afghan north – by Jawad Kakar (Reuters India – November 7, 2016)

November 7, 2016

http://in.reuters.com/

FAIZABAD, AFGHANISTAN – Afghan Taliban militants have strengthened their grip on lucrative illegal mining operations in the north of the country, as security forces focus most of their efforts on battling the insurgency in the volatile south, officials said.

Abuses by local commanders with private militias and beyond the purview of central government have also driven people into the hands of Islamist fighters, the officials added, making it easier for them to profit from small-scale mines in the region.

“The Taliban provide protection for the villagers to mine and the people are happy to do it despite the fact that there’s a presidential decree banning any uncontrolled mining,” said Gul Mohammad Bedar, deputy governor of Badakhshan province. He estimated that the militant group, fighting to overthrow the Western-backed government in Kabul, raised about a third of its funding needs in Badakhshan from deposits of minerals, including semi-precious lapis lazuli, found in its mountains.

Green dreams: Duterte and the Philippine mining industry – by by Robert Veldhuizen (Global Risk Insights – November 7, 2016)

November 7, 2016

Throughout its history, the Philippine mining industry has been defined by its diverse set of political risks relating to governance, inequality, elitism, foreign export and absent contribution towards the country’s overall economic growth. President Duterte’s nomination spells a radically different future for the industry; unprecedented opportunities may lie ahead for foreign investors, however they are not without risk.

Pervading problems

Since the 1500s, mining has played a critical part in the economic development of the Philippines. Despite the abundance of chromite, copper, gold and nickel deposits, the industry has been marred, since the 1980s, by issues of volatility, and defined to a realm of ‘potential’—rather than direct opportunity.

Issues that have and continue to plague the industry range from matters of foreign ownership, corruption, obdurate and unforced regulatory laws, environmental incidents, murky issues of land rights, militant attacks, as well as disastrous weather conditions.

Coal Surge Leaves China Grappling With Runaway Market It Started (Bloomberg News – November 4, 2016)

November 4, 2016

http://www.bloomberg.com/

China’s drive to reduce overcapacity and streamline its coal industry has sent prices of the bulk commodity soaring. Efforts initially aimed at reversing a four-year collapse and help miners repay debts have pushed coal higher and faster than anyone anticipated.

The fuel burned in power stations has doubled, while the coal used in steel making has more than tripled. The boom has also turned mining companies from some of the worst performing stocks into the best.

China went big on the production cuts earlier this year, causing output from the world’s largest miner to drop 11 percent in the first nine months. It also trimmed 150 million metric tons of overcapacity by the end of August — more than Russia’s entire thermal coal exports last year — and is targeting 500 million tons by the end of the decade.

Challenging times ahead for Philippine mining companies – by Ronnel W. Domingo (Philippine Daily Inquirer – November 4, 2016)

November 4, 2016

http://business.inquirer.net/

Prospects for mining over the next several years have been described as “challenging” by no less than the Mines and Geosciences Bureau (MGB) itself. Within the industry, particularly for many, if not most of the public players (in the Philippines or bourses elsewhere), the pervading mood is uncertainty, although there is a counterpoint of buoyancy.

The MGB’s mineral economics, information and publication division—the parent agency of which recently announced that the operations of 20 more metallic mines are recommended for suspension—observes that the audit of existing mines, along with a moratorium on new mines, is “responsible for industry prospects remaining to be challenging.”

“The suspension of another two nickel mines in Palawan is expected to further contribute to the overall sluggish performance of the metallic sector in 2016,” the MGB says. The bureau refers to the Berong nickel project (DMCI’s Berong Nickel Corp.) and Toronto and Pulot nickel projects (ORE’s Citinickel Mines and Development Corp.).

Mine workers demand better pay in lagging Sri Lanka graphite industry – by Nirasha Piyawadani (Seattle Globalist – November 3, 2016)

November 4, 2016

MADURAGODA, SRI LANKA — It took a two-day hunger strike for 50 workers at a state-owned graphite mine to secure a risk allowance increase from 16 Sri Lankan rupees (11 cents) per month to 300 rupees ($2.06) per month. They agreed that they would receive the allowance if they met a target of producing 70 metric tons per month.

The next month, the workers exceeded their monthly target by producing 74 metric tons (81.57 short tons) of graphite, says Sunanda Fernando, secretary of the Free Employees Union at the mine. The increased risk allowance was added to each workers’ July pay.

Still, it’s a pittance compared to what the miners at the Kahatagaha mine could be earning if Sri Lanka’s graphite industry had more sophisticated technology and operated at a higher capacity. “We have heard that miners in other countries earn hundreds of thousands of rupees,” says Sunil Ekanayake, a 64-year-old assistant leader in the mine’s drilling section who has worked there since 1988. “But the Sri Lankan graphite doesn’t draw a high price and, as a result, we receive a low salary.”

Fosun in exclusive talks to buy stake in Russian gold miner Polyus: sources – by Julie Zhu and Polina Devitt (Reuters U.S. – November 3, 2016)

November 3, 2016

http://www.reuters.com/

HONG KONG/MOSCOW – Fosun International Ltd, is in exclusive talks to buy a large minority stake in Russia’s biggest gold miner Polyus, three sources with knowledge of the matter told Reuters, in what would be the Chinese group’s maiden Russian deal.

Fosun, an aggressive buyer known internationally for its purchase of French resort operator Club Med, is keen to invest in Russia and other emerging markets such as India, as it moves away from Europe and developed markets. Reuters reported in August that Fosun is also in talks to buy a minority stake in Russian investment bank Renaissance Capital..

Fosun’s interest in Polyus comes as other Chinese companies have also been targeting gold mine acquisitions to meet domestic demand amid a recovery in prices. State-controlled Zijin Mining Group Co Ltd and state-backed Shandong Gold Mining Co Ltd held separate talks with Canada’s Barrick Gold Corp to buy a 50 percent stake in an Argentinian gold mine, Reuters reported last month.

After Myanmar’s supply spike, tin looks for brighter future – by Clyde Russell (Reuters U.S. – November 2, 2016)

November 2, 2016

http://www.reuters.com/

MELBOURNE – Tin prices appear to have well and truly recovered after being mugged by an unexpected supply surge from Myanmar, but there are still questions as to whether they are now ready for an extended rally.

London benchmark tin has surged 56.4 percent since hitting a near seven-year low in January, ending Tuesday’s session $20,850 a tonne.

This makes the metal, whose main uses include solder, batteries and plating, one of the top performing commodities this year, even if the current price is still some 38 percent below the all-time high reached in April 2011. What is impressive about tin’s gains this year is they have been achieved despite the flow of tin ores and concentrates from Myanmar to top importer China.

Missing miners found dead after China coal mine blast (Deutsche Welle‎ – November 2, 2016)

November 2, 2016

http://www.dw.com/en/

All 33 miners who were trapped in a coal mine following an explosion in Chongqing, China have been confirmed dead. Chinese work safety officials have promised to “strictly punish” those responsible for safety lapses.

The dozens of coal miners who were trapped underground in a gas explosion earlier this week have all been found dead, reported Chinese state media on Wednesday.

The bodies of the last 15 missing miners were retrieved from the privately-owned Jinshangou mine near the southwestern city of Chongqing, the official Xinhua news agency said – bringing the death toll up to 33. Only two workers managed to escape Monday’s blast. Over 200 rescuers worked around the clock but were unable to find any survivors.

Drones the new weapon in India’s crackdown on illegal mining – by Rina Chandran (Reuters India – November 1, 2016)

November 2, 2016

http://www.reuters.com/article/

MUMBAI (Thomson Reuters Foundation) – India’s mines ministry has told state governments to explore the use of drones to check illegal mining, as officials crackdown on an activity that has led to deforestation and the use of child labor.

A satellite-based mining surveillance system was launched last month, and the ministry is now exploring the use of unmanned aerial vehicles, or drones, to curb instances of illegal mining, said a notification dated Nov. 1.

Drones can be used to monitor illegal mining activities, check for activity at night and to track illegal truck movements, said Prithul Kumar, a director at the ministry of mines, in the note.

Rio Tinto set to quit Guinea iron ore project with sale to Chinalco – by Barbara Lewis and Rahul B (Reuters U.S. – October 28, 2016)

October 28, 2016

http://www.reuters.com/

LONDON/BENGALURU – Mining company Rio Tinto (RIO.AX)(RIO.L) has agreed to sell its stake in Guinea’s Simandou project to Chinalco (3668.HK), it said on Friday, potentially kickstarting the long-stalled scheme to develop the world’s largest untapped iron ore reserves.

For all the project’s huge potential, Rio has voiced frustration over the difficulty of drumming up financing, though industry sources said that the change of ownership could open up access to Chinese funding.

China, the world’s largest iron ore consumer, provides an obvious market for Simandou, which Guinea is counting on to spur economic growth after the West African country was hit by a crippling Ebola epidemic.