Twitter

Asia Mining

Kazakh-Chinese talks build on cooperation agreements (World Nuclear News – July 18, 2016)

http://www.world-nuclear-news.org/

The heads of Kazakh uranium producer KazAtomProm and China’s CITIC Group have met to discuss attracting investment to the Central Asian country’s nuclear energy sector. Askar Zhumagaliyev and Chang Zhenming met as part of the working visit to China of Kazakhstan’s first deputy prime minister, Bakytzhan Sagintayev.

CITIC Group, formerly the China International Trust and Investment Corporation, is a state-owned investment company established in 1979.

The talks build on agreements KazAtomProm signed with Chinese companies at the end of last year. These include one for the development of Kazakh uranium mines and the construction of a nuclear fuel plant in Kazakhstan.

Read more

Asia Pacific: Duterte regime’s impact on Canadian miners in the Philippines – Chuck Chiang (Vancouver Sun – July 18, 2016)

http://vancouversun.com/

New Philippines president Rodrigo Duterte may make headlines because of his outspoken (and often controversial) ways, but his approach to mining will have a substantial impact on foreign firms — including several Canadian companies.

Duterte, who is known for his tough stance on crime and disregard for due process, said after winning the country’s presidential election in May that mining companies in the Philippines need to “shape up”. He went on to say he prefers mining assets to be owned by locals, rather than foreign companies.

That was followed by the naming of committed environmentalist Regina Lopez to head the country’s natural resources department, which set off uncertainty for foreign firms operating in the Philippines. One industry official told Reuters the sector is “shell shocked” by Lopez’s appointment.

Read more

Philippines says it suspends a nickel miner in Palawan (Reuters U.S. – July 17, 2016)

http://www.reuters.com/

The Philippines has suspended a third nickel mine in less than two weeks and again warned miners not to violate environmental laws, the cabinet secretary overseeing mining told a radio station.

Regina Lopez, secretary of the Department of Environment and Natural Resources, told the Manila station DZMM on Saturday a suspension order was slapped on Friday on Berong Nickel Corp’s mine on Palawan because of a spill that affected corals.

Palawan, in the southwest Philippines, has become popular with tourists in recent years. Lopez said while the spill was not intentional, company authorities “really need to get their act together”. She described Palawan as “the number one (tourist) island destination in the entire planet”.

Read more

Teck director’s Chinese government ties raise concerns over foreign influence – by Derrick Penner (Vancouver Sun – July 15, 2016)

http://vancouversun.com/

The election of a sitting member of China’s National People’s Congress to Teck Resources’ board of directors has sparked a debate over whether the Canadian resource sector is being opened to influence from a foreign government.

For Dermod Travis at watchdog group Integrity B.C., the move “raises some very serious questions about whether or not representatives, elected or appointed, of a foreign government, regardless of the country, should be sitting on the boards of Canadian public companies.”

Company shareholders elected Quan Chong, a longtime senior trade official for China — and also a deputy to the National People’s Congress — to its 14-member board of directors at its annual general meeting in April, but Travis only found out in recent weeks while researching B.C. public companies and their donations to political parties.

Read more

New China deal casts dim light on Canadian potash sector – by Ian McGugan (Globe and Mail – July 15, 2016)

http://www.theglobeandmail.com/

A new deal to sell potash to Chinese buyers at a price dramatically lower than last year is being taken as good news by investors in Canadian potash stocks – a sign of just how far expectations for the sector have fallen.

Belaruskali, the major Belarusian producer, signed a contract to deliver potash to Chinese buyers for $219 (U.S.) a tonne, according to several industry observers on Thursday. Although the reported price is nearly one-third less than the $315 a tonne that was agreed upon last year, it is better than analysts had feared.

Still, the size of the decline demonstrates how much the market for the crop nutrient has deteriorated in recent months. It also underscores concerns about whether Potash Corp. of Saskatchewan Inc., one of this country’s most-followed dividend stocks, will be able to maintain its generous payout.

Read more

A Loss For China And A Win For Russia In The Philippines – by Tim Treadgold (Forbes Magazine – July 14, 2016)

http://www.forbes.com/

Russia is a likely winner from changing government policy in the Philippines just as the South East Asian country emerges as a thorn in the side of China.

The problem between China and the Philippines is well understood and relates to disputed territorial claims by China to a vast area of the South China Sea that is close to other countries, including the Philippines, Vietnam and Malaysia.

Earlier this week an international disputes court in the Netherlands found against China and in favor of a case taken by the Philippines against the Chinese claims which are based on ancient history and modern “island building”.

Read more

Scant short term impact seen on nickel from Philippine mine crackdown – by Manolo Serapio Jr and Eric Onstad (Reuters U.S. – July 13, 2016)

http://www.reuters.com/

MANILA/LONDON, July 13 An environmental crackdown on Philippine mines, which helped drive nickel prices to eight-month highs, is likely to have only a muted impact on exports to China in the short term because the biggest mines have met guidelines, experts said.

The Philippines is the biggest exporter to top metals consumer China of nickel ore, used to make stainless steel. A smattering of smaller mines are likely to be affected in coming months and new mines will probably face tough going in the future, but the review of the mining sector is not likely to result in a quick drop in shipments.

“The Chinese think the Philippines will continue exporting ore to China and only some small mines will be affected. They’re not worried about the situation at the moment,” said Peter Peng, analyst at CRU consultancy in Beijing.

Read more

India’s coal mining ambition hurts indigenous group, Amnesty says – by Rina Chandran (Reuters India – July 13, 2016)

http://in.reuters.com/

MUMBAI (Thomson Reuters Foundation) – India’s drive to ramp up coal output to meet growing energy needs has resulted in members of the Adivasi tribe being displaced from their ancestral lands and forced to wait years to be resettled, Amnesty International said on Wednesday.

The global human rights group said the Adivasi had suffered disproportionately from India’s push for coal. One in six of the 87,000 Indians who have been displaced over the past 40 years by state-owned Coal India Ltd (CIL) is Adivasi, Amnesty said.

Laws to protect vulnerable communities such as indigenous groups are poorly implemented and regularly flouted, it said. “Adivasi communities, who traditionally have strong links to land and forests, have suffered disproportionately from development-induced displacement and environmental destruction in India,” Amnesty said in a report.

Read more

Rare-Earth Market – by Lee Simmons (Foreign Policy Magazine – July 12, 2016)

https://foreignpolicy.com/

By monopolizing the mining of rare-earth metals, China could dictate the future of high-tech.

Most people have no idea what’s in an iPhone. Yttrium and praseodymium don’t exactly roll off the tongue, but they’re part of what make smartphones so small, powerful, and bright. These exotic materials are among the planet’s 17 rare-earth elements, and surprisingly, the soft, silvery metals are not at all rare.

But they’re found in tiny concentrations, all mixed together, and usually embedded in hard rock, which makes them difficult — and messy — to isolate. In China, which mines 89 percent of global output, toxic wastes from rare-earth facilities have poisoned water, ruined farmlands, and made people sick.

Beyond high-tech gadgets, rare earths play a critical role in national defense, enabling radar systems and guided missiles. Ironically, they also power clean-energy technologies, such as wind turbines and electric cars.

Read more

UPDATE 1-Israel Chemicals sells potash to India at decade-low price -sources – by Rajendra Jadhav and Tova Cohen (Reuters U.S. – July 1, 2016)

http://www.reuters.com/

Israel Chemicals (ICL) will ship potash to India at the same decade-low price agreed by another big seller last month, two industry sources said, at a time when global supply of the crop nutrient is exceeding demand.

ICL’s decision could pressure other key producers such as Russia’s Uralkali and North American trading group Canpotex Ltd, owned by Potash Corp of Saskatchewan , Mosaic Co and Agrium Inc, to consider offering potash at similar prices.

Indian Potash Ltd (IPL), one of that country’s biggest fertiliser importers, is buying around 600,000 tonnes of potash at $227 per tonne on a cost and freight (CFR) basis with a credit period of 180 days, said the industry sources, who declined to be named.

Read more

Nickel at 9-month high on Philippine environmental fears – by Neil Hume (Financial Times – July 12, 2016)

https://next.ft.com/

Nickel has powered to its highest level since October 2015 as investors become increasingly concerned about an environmental crackdown in the Philippines. The Philippines has emerged as the top supplier of nickel ore to China since Indonesia banned exports of unprocessed raw materials in 2014, writes Neil Hume.

It was the largest producer of mined nickel globally last year, accounting for 465,000 tonnes, or 22 per cent of global output, and 97 per cent of total ore imported in China, according to Standard Chartered. Filipino is used by Chinese mills to produce nickel pig iron, a cheap alternative to refined nickel.

Those supplies could now be in danger after the new president of the Philippines Rodrigo Duterte ordered a review of the country’s mining industry.

Read more

[Philippines mining] Lopez orders mining audit – by Louise Maureen Simeon (The Philippine Star – July 12, 2016)

http://www.philstar.com/

MANILA, Philippines – Newly-installed Environment Secretary Gina Lopez yesterday issued her first memorandum order which covers the extensive audit of all mines as well as the moratorium on new mining projects.

Based on memorandum 2016-01, all operating and suspended mines will be subject to an audit to determine the adequacy and efficiency of the environmental protection measures, identify gaps in protection measures and determine appropriate penalties in case of violations.

The moratorium, on the other hand, shall cover the acceptance, processing and approval of applications and projects for all metallic and non-metallic minerals.

Read more

Nickel miner Vale continues to cut costs – by Stefani Ribka (Jakarta Post – July 11, 2016)

http://www.thejakartapost.com/

Major nickel producer Vale Indonesia (INCO) continues to cut costs to prevent further loss as nickel prices have yet to show signs of recovery.

The publicly listed firm has taken short and long term efficiency measures, said chief financial officer Febriany. Business travel reduction and a hiring freeze are some of the short-term measures the firm has implemented so far.

“We will delay whatever plans that can be delayed without lowering the company’s core quality,” she said after a recent annual general shareholders’ meeting. In the long term, the firm — which is owned by Vale Canada Limited, Sumitomo Metal Mining Co. Ltd., Vale Japan Limited, Sumitomo Corporation and the public — seeks to significantly diversify fuel use to reduce costs.

Read more

‘Fireflies In The Abyss’ Is A Sobering Look At The Lives Of Meghalaya Coal Miners – by Suprateek Chatterjee (HuffPost India – July 7, 2016)

http://www.huffingtonpost.in/

Filmmaker Chandrashekhar Reddy recalls the first time he stepped inside a coal mining pit. It was in mid-2012, near Lad Rymbai, Meghalaya. It was pitch-black, of course, and he could feel the oxygen levels falling as he descended down a slippery wooden ladder, terrified that he might fall off.

When he got to the bottom, he realised he lacked the flexibility to actually navigate the tunnels, the so-called ‘rat holes’, which are barely big enough for a fully grown adult to crawl through. “I had to be put in a cart and wheeled around in turns by some of the other men working there,” he said, in a conversation with HuffPost India.
“Despite the lack of oxygen, I saw some of them smoking in there, which, from my knowledge, is quite dangerous, as every mining activity results in the release of methane, which is flammable.”

Read more

Philippine Environment Chief Vows to Shutter Failed Miners – by Cecilia Yap and Martin Ritchie (Bloomberg News – July 8, 2016)

http://www.bloomberg.com/

Miners in the Philippines will be shuttered this year if they fail environmental checks, according to the country’s environment secretary who’s spearheading tougher regulation of the resources sector.

Gina Lopez, hired by new President Rodrigo Duterte to clean up mining, announced the probe last week on assuming the post. The audit will be completed in three to four weeks and may result in mines being closed in the next six months, Lopez said in a Bloomberg interview.

“If they are killing our rivers, how can their business interest be more important than the lives of our people? I will not allow suffering,” said Lopez, who has previously disclosed that she doesn’t like mining. “The main thing is that whatever we do, the welfare of the people must be paramount.”

Read more