Asia Mining – Page 155 – Republic of Mining

COLUMN-Is China’s economy like Clouseau’s inflatable parrot? – by Clyde Russell (Reuters U.K. – August 14, 2014)

August 14, 2014

http://uk.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, Aug 14 (Reuters) – Why does the Chinese economy remind me of Chief Inspector Jacques Clouseau?

One of the many memorable scenes featuring the late Peter Sellers as the bumbling French detective comes in the Revenge of the Pink Panther, when he disguises himself as a peg-legged Swedish sailor, complete with an inflatable rubber parrot on his shoulder. [here ]

Problem is the parrot leaks, requiring Clouseau to flap his arm to operate a pump to re-inflate the bird, which eventually pops off as too much air is put in.

The connection to the Chinese economy is that once again a set of softer-than-expected economic numbers has the market anticipating that the authorities will act to boost activity. Like Clouseau’s parrot, every time the economy loses some air, the expectation is that it will be pumped up again and it will return to health.

The release of economic data that failed to meet expectations on Wednesday is the latest case in point. Credit figures showed that the amount of money flowing into the Chinese economy fell to a six-year low in July, while growth in investment, retail sales and bank lending was short of the market consensus.

Australian state approves $2 bln rail line for Adani coal project – by Sonali Paul (Reuters India – August 14, 2014)

August 14, 2014

http://in.reuters.com/

MELBOURNE – Aug 14 (Reuters) – India’s Adani Mining has won state approval to build a rail line for its $15 billion Carmichael coal project in Australia, it said on Thursday, bringing it a step closer towards making a final decision on whether to go ahead with the massive scheme.

The state of Queensland approved the A$2.2 billion ($2 billion) North Galilee Basin Rail project, a 300 kilometre (186 mile) railway to connect the Carmichael mine and potentially other mines in the untapped Galilee Basin to the east coast port of Abbot Point.

Despite analysts’ views that Adani’s project would be unprofitable at current coal prices, the company said it remained committed to pushing ahead with it to supply coal to power stations in India.

“Adani looks forward to continuing to work with our project partners and all levels of government to see this through,” Adani Mining, the Australian arm of Adani Enterprises, said in a statement.

Adani recently signed an agreement with POSCO Engineering & Construction Co Ltd to build the rail line. Costs and other details of the contract are due to be set by the end of this year.

Asbestos industry still strong in developing world – by Katy Daigle (Canadian Manufacturing.com – August 12, 2014)

August 13, 2014

http://www.canadianmanufacturing.com/

Quebec was the world’s biggest asbestos producer until it exited the business in 2012 after many questioned why it mined and exported such a material

The Associated Press -VAISHALI, India – The executives mingled over tea and sugar cookies, and the chatter was upbeat. Their industry, they said at the conference in the Indian capital, saves lives and brings roofs, walls and pipes to some of the world’s poorest people.

The industry’s wonder product, though, is one whose very name evokes the opposite: asbestos. A largely outlawed scourge to the developed world, it is still going strong in the developing one, and killing tens of thousands of people each year.

“We’re here not only to run our businesses, but to also serve the nation,” said Abhaya Shankar, a director of India’s Asbestos Cement Products Manufacturers Association. In India, the world’s biggest asbestos importer, it’s a $2 billion industry with double-digit annual growth, at least 100 manufacturing plants and some 300,000 jobs.

The International Labor Organization, World Health Organization, the wider medical community and more than 50 countries say the mineral should be banned. Asbestos fibers lodge in the lungs and cause many diseases. The ILO estimates 100,000 people die every year from workplace exposure, and experts believe thousands more die from exposure outside the workplace.

Metal production expands 17.11% – by Czeriza Valencia (The Philippine Star – August 13, 2014)

August 12, 2014

http://www.philstar.com/

MANILA, Philippines – Philippine metallic production rose by 17.11 percent in terms of value in the first quarter of the year on increased revenues from gold production, the Mines and Geosciences Bureau (MGB) said yesterday.

The aggregate value of metal production for the first three months of the year is placed at P21.98 billion, up by P3.21 billion from P18.77 billion recorded in the same period last year.

Gold production accounted for 38.56 percent of the total production value during the period with aggregate earnings of P8.48 billion, up 17 percent from P7.27 billion in the comparative period.

Higher gold production during the first quarter was due to “substantial” increase in production in the following projects: Didipio gold project of Oceana Gold Philippines Inc. in Nueva Vizcaya, Toledo copper project of Carmen Copper Corporation in Cebu, and Padcal copper-gold project of Philex Mining Corporation in Benguet.

Revenues from direct shipping nickel ore and nickel sulfides comprised 34.80 percent of the total metal production value for the period at P7.65 billion.

Steel consortium undecided on size of Afghan iron ore investment – by Krishna N Das (Reuters India – August 11, 2014)

August 12, 2014

http://in.reuters.com/

NEW DELHI – (Reuters) – A consortium led by the Steel Authority of India (SAIL) (SAIL.NS) has yet to decide how much it will commit to an iron ore project in Afghanistan that was originally supposed to be a $10.8 billion investment, SAIL’s chairman said on Monday.

The steel ministry said in December that the group had proposed new terms and planned to invest about $2 billion in three iron ore mines and a steel plant.

But SAIL Chairman C.S. Verma said the consortium had not signed a final deal and total investments could only be decided after having a detailed project report.

“Conditions are quite difficult,” he said, referring to security problems and a lack of infrastructure in the area. “We are keeping all our options open.” “Only time will tell how we are able to take up this proposal,” he said after announcing SAIL’s April-June quarter results.

The consortium also includes Indian companies such as NMDC (NMDC.NS), Rashtriya Ispat Nigam, JSW Steel (JSTL.NS), Jindal Steel & Power (JNSP.NS) and Monnet Ispat & Energy (MNET.NS). As part of its investment, it could spend $75 million to $100 million on the initial exploration of the mines, Verma said.

[India]‘Madhya Pradesh copper mine threatens local communities’ – by Shuriah Niazi (Vancouver Desi.com – August 9, 2014)

August 11, 2014

http://www.vancouverdesi.com/

Malajkhand (Madhya Pradesh), Aug 10 (IANS) — What is said to be Asia’s largest copper mine in the central Indian state of Madhya Pradesh has become a threat for the tribals and the indigenous communities living in the area, environmentalists charge.

People in the Malajkhand area of the Balaghat district, some 370 km from state capital Bhopal, are suffering from the loss of farmland and the degradation brought about by the mining activities, environmentalists say. Now, the state-owned Hindustan Copper Limited (HCL) plans to more than double its production from two million tonnes per annum (MTPA) to five MTPA after it receives the necessary clearances from the Ministry of Environment and Forests.

Environmentalists fear this will accelerate the destruction of forests and lead to further contamination of the surrounding environment.

The Malajkhand area, 20 km from the Kanha National Park, contains 70 percent of India’s copper reserves and accounts for 80 percent of HCL’s production.

The Centre of Environmental Science and Engineering at the Bhilai Institute of Technology had pointed out that the mineral processing plant in the area is causing serious damage to the environment and harming the health of both humans and animals.

Indonesia ban on nickel ore, bauxite exports to stay – officials – by Fergus Jensen (Reuters India – August 11, 2014)

August 11, 2014

http://in.reuters.com/

JAKARTA, Aug 11 (Reuters) – Indonesia has no plans to wind back a seven-month old ban on exports of unprocessed nickel ore and bauxite that has led to billions of dollars in planned investments in smelters, top government officials said.

Indonesia – previously the world’s top exporter of nickel ore and a major bauxite producer – effectively halted all but processed metal shipments in January in an effort to force miners to build smelters, winning the country bigger returns from exports of its mineral resources.

Last month the government allowed a handful of firms producing partially processed minerals such as copper concentrate, including Freeport McMoRan Inc, to resume exports.

However, Indonesia’s chief economic minister Chairul Tanjung said the same rationale does not apply to unprocessed exports of nickel ore and bauxite.

“Nickel is different because if you are smelting in Indonesia the added value is much higher than copper,” Tanjung
told Reuters in a recent interview. “Because of that it’s a separate issue.”

Supply Shortfalls Send Nickel Higher – by Laura Clarke (Wall Street Journal – August 7, 2014)

August 7, 2014

http://online.wsj.com/home-page

Market is Still Reacting to the Ban on Ore Exports Imposed by Indonesia

Nickel prices leapt higher Thursday, as traders fretted about supply shortfalls, while other metals traded on the London Metal Exchange were steady.

The nickel market is still reacting to the ban on nickel ore exports imposed by top producer Indonesia earlier this year. That changed the landscape of the global nickel market, constricting supply to the biggest consumers in countries such as China, and sending prices soaring.

Still, some analysts say there may be some signs of some easing in Indonesia, which could dent nickel prices.

“We are not as enthralled by nickel, as there seems to be some ‘looser talk’ coming out of Indonesia with respect to the export bans, along with rising LME stockpiles,” said INTL FCStone analyst Edward Meir, in a monthly metals report.

At 0926 GMT, LME three-month nickel traded 1.7% higher on the day at $19,050 per metric ton. The metal was changing hands at highs not seen since July 28. Copper rose 0.3% to $6,988.75 per ton, while aluminum fell 0.5% to $2,013.75 per metric ton, and three-month zinc slide 1.6% to $2,320 per ton.

Elsewhere, three-month lead fell 0.8% to $2,225.75 per metric ton, while tin climbed 0.45 to $22,380 per ton.

UPDATE 2-China’s Ramu nickel mine in PNG restarts after attacks – embassy – by Sonali Paul, Melanie Burton and Polly Yam (Reuters India – August 7, 2014)

August 7, 2014

http://in.reuters.com/

Aug 7 (Reuters) – A Chinese-owned nickel mine in Papua New Guinea has resumed production three days after an attack by armed villagers forced work to halt, a Chinese embassy official in the South Pacific country said on Thursday.

The $2.1 billion mine, forecast to produce 22,000 tonnes of nickel in 2014, is operated by Ramu NiCo, which is majority owned and run by Metallurgical Corporation of China Ltd (MCC) .

Equipment including nine excavators, a fuel truck and a lighting vehicle were burned and five Chinese workers were injured in the attack on Monday, the embassy said, confirming earlier media reports.

“The embassy strongly condemns these brutal attacks and makes urgent request to the PNG Government to take immediate and effective measures to prevent the violence from recurring and ensure the safety of the personnel and properties, and to bring those attackers to justice to deter such criminal acts,” an embassy official said in an emailed response on Thursday.

“With the assistance of the police force, now the situation is under control and the mining production has been resumed.”

Mining and energy projects are the major source of income for Papua New Guinea, but outbreaks of violence sparked by landowner disputes and environmental concerns are not uncommon.

COLUMN-Coking coal prices set for modest gains, thermal still marooned – by Clyde Russell (Reuters U.K. – July 5, 2014)

August 5, 2014

http://uk.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, Aug 5 (Reuters) – Prices for thermal and coking coal appear poised to diverge, with the power-plant fuel remaining mired in the doldrums and the steel-making ingredient posting modest gains.

The halving of thermal coal prices since early 2011 has grabbed the most attention in the beleaguered industry, but coking coal has actually performed worse, dropping by almost two-thirds since its post-2008 recession peak in mid-2011.

The 2011 high was reached after severe flooding in Queensland state, the main coking coal producer in top exporter Australia.

Both types of coal have been plagued by oversupply, which has swamped the modest increases in demand in top importers China and India.

The problem for thermal coal has been supply hasn’t significantly been cut despite weak prices. Producers in the top two exporters Indonesia and Australia have been instead trying to cut costs and increase volumes in order to boost revenues.

Australian producers have another problem, the so-called “take-or-pay” contracts that commit them to paying for transport costs whether they actually ship coal or not.

Coal comfort: faster to start mine in Indonesia than here – by Andrew Fraser (The Australian – July 30, 2014)

July 29, 2014

http://www.theaustralian.com.au/

PETER Lynch can tell you exactly the difference between setting up a mine in Indonesia and Australia — the former takes four years; the latter somewhere between seven and 10. And the cost of producing coal from Indonesia is about two-thirds that from Australia.

Mr Lynch is in a position to know. A veteran mining figure who worked for MIM and other companies, he was the first to realise the potential of the Galilee Basin in central Queensland in 2006. He pegged out 13 exploration permits covering 250sq km. In 2010, Clive Palmer made him an offer he couldn’t refuse, paying $130 million for Waratah Coal and control of the project.

Now chief executive of mining company Cokal, Mr Lynch saw potential in Indonesia, and in early 2011 started digging exploratory holes in a remote part of Central Kalimantan. Three years later, he has all his key approvals in place and is finalising his financial backing, with the aim of starting production in September next year — a bit over four years from when he first eyed the area. By contrast, the earliest date for coal to come out of the Galilee Basin is 2017, despite the approvals process starting several years earlier.

Mr Lynch’s tale illustrates the concerns the Business Council of Australia and Hancock Prospecting chairman Gina Rinehart have raised this week about Australia losing its competitive edge because of high labour costs and red tape.

On Monday, Environment Minister Greg Hunt approved Adani’s proposed Carmichael mine in the Galilee Basin, but the Indian company still needs to get approval for the construction of a proposed railway line to Abbot Point.

What is Harper’s ‘real interest’ in Mongolia? – by Campbell Clark (Globe and Mail – July 28, 2014)

July 28, 2014

The 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.

OTTAWA — John Baird was given a ceremonial welcome in Ulan Bator, and invited to try a bow-and-arrow at a festival in the Jargalant Valley. The Foreign Affairs Minister is on a trip to Asia, visiting big powers China and Japan. But last week, his first stop was in a sparsely populated nation of three million.

Stephen Harper’s government is taking a particular interest in, of all places, Mongolia. Why?

Mongolia’s Foreign Minister, Luvsanvandan Bold, called Canada an important part of his country’s foreign policy. Canada just put Mongolia, a middle-income country, on its list of “countries of focus” for foreign aid.

Yes, there’s potential mining trade. But there’s also an invitation that the Harper government finds alluring: to help a little democracy maintain its independence from its two authoritarian neighbours, Vladimir Putin’s Russia and the People’s Republic of China.

“The Prime Minister has taken a real interest in Mongolia,” Mr. Baird said in a telephone interview.

Mr. Harper long ago turned from strident China critic to pragmatic trader with a rising economic power, but he still views its global influence darkly. And Mr. Harper has been a vocal critic of Mr. Putin’s actions in Ukraine: He’s called the Russian President a “throwback” to the Soviet Union.

India’s Uranium Boss Says Deformed Children May Be ‘Imported’ – by Rakteem Katakey and Tom Lasseter (Bloomberg News – July 23, 2014)

July 25, 2014

http://www.businessweek.com/

Confronted with reports villages near Uranium Corp. of India Ltd.’s mines have unusually high numbers of physically deformed people, Chairman Diwakar Acharya said: “I wouldn’t be surprised if a lot of those guys are imported from elsewhere, ok?”

A Bloomberg News report on July 9 highlighted the struggles of the locals with disease and early deaths — and the suspicion they shared with some environmental activists that the health conditions are linked to mining waste.

Acharya dismissed as biased any findings of a correlation between the mines and deformities in nearby villages.

Activists and doctors come with an agenda to Jadugora, a town of about 19,500 people in eastern Jharkhand state that’s home to the company’s main operations, he said in a July 14 interview.

“See, what happens is, you say you are a specialist and you’ll come and treat,” Acharya said at Uranium Corp.’s headquarters. “But all you do is, you are convinced UCIL is evil and you have come here only with the sole motive of finding reasons which would validate your preconceived notions.”

Uranium Corp. sends its security officers to monitor attempts by outsiders to examine villagers, Acharya said, explaining it was a necessary step for collecting information about alleged health problems.

Coal India undermined by basic equipment flaws – by Krishna N Das (Reuters India – July 25, 2014)

July 25, 2014

http://in.reuters.com/

NEW DELHI – (Reuters) – As Prime Minister Narendra Modi’s government looks to shape up Coal India Ltd (COAL.NS) for a potential major restructuring, the world’s biggest coal miner still faces basic problems: it does not have enough mechanical shovels, dumpers and explosives.

The new government, which has a 90 percent stake in the company whose total market value is about $40 billion, is exploring a break up and opening up the sector to foreign investment to boost output and cut imports, sources have said.

But the firm, which accounts for more than 80 percent of India’s production and employs 350,000, has not met its output target for years, ensuring the country remains the world’s third-largest coal importer despite sitting on huge reserves.

A failure to boost efficiency could threaten long-run plans to spin off some of the seven units of the coal miner, a vital part of the government’s reform strategy. [ID:nL3N0O6458]

Two units produced less in the last fiscal year than a year ago, partly due to lack of basic equipment and ageing machinery, Power and Coal Minister Piyush Goyal told parliament this week.

The minister did not provide data but according to a top official at one Coal India unit this issue could be cutting Coal India’s annual output by more than 10 percent. The official declined to be identified due to its policy on talking to media.

COLUMN-New Indonesian president can bring certainty, consistency to mining: Russell – by Clyde Russell (Reuters India – July 24, 2014)

July 24, 2014

http://in.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, July 24 (Reuters) – The election of reformist Joko “Jokowi” Widodo as Indonesia’s new president has spurred hopes of a rapprochement with global miners and the scaling back of some of the nationalistic resource policies.

Certainly the new leader of the world’s fourth-most populous nation is making the right noises, telling Reuters in an interview published July 22 that he wants to sit down with mining companies and resolve differences.

And indeed this was followed by Freeport-McMoRan, which owns the giant Grasberg copper mine, saying it expects to “imminently” sign an agreement with Indonesia that will allow for the resumption of exports of copper concentrate.

Newmont Mining Corp also said it was close to a memorandum of understanding with the government that would allow it to resume exports of copper concentrate and re-open its Batu Hijau mine.

These negotiations with the two U.S. mining giants, which account for 97 percent of Indonesia’s copper output, have been ongoing for months, so it’s not clear that Jokowi had any influence on the talks, but equally his election victory may have provided momentum to the talks.