Twitter

Chromium/Platinum Group Metals

‘Remembering the Marikana massacre is critical’NORTH WEST – by Jonisayi Maromo (Independent Online – August 15, 2016)

http://www.iol.co.za/

Marikana – Loud music echoed from a giant stage erected at the Marikana koppie in the Nkaneng informal settlement near Rustenburg on Monday, as preparations for the fourth commemorations of the Marikana tragedy were being finalised.

A few metres away, community members sang along to the loud music as they went on their daily chores in the shacks making up the Nkaneng informal settlement. Maritha Mabasa said in August 2012, she had recently moved to Marikana, from the Free State, when the wage dispute degenerated into chaos.

“What happened there remains vivid in my mind. Who would forget the murder of more than 30 people in one day? And my heart is sore,” said the mother of three, pointing at the koppie.

Read more

Millions ‘stolen’ in illegal chrome rush – by Lutho Mtongana, Lucky Biyase and Sabelo Skiti (Sunday Times – June 26, 2016)

http://www.timeslive.co.za/

South Africa – An elaborate illegal chrome-mining operation in rural Limpopo has shipped out chrome worth millions of rand, with the blessing of local headmen – and the government is powerless to stop the plunder.

Mining experts estimate the illegal miners may already have extracted 360,000 tons of chrome, with an estimated value of R500-million. The Sunday Times could not establish this week how many illegal operators are mining, or how much chrome is being taken.

But throughout the day, luxury cars with Limpopo, Mpumalanga, and Gauteng registration plates pulled in and out of the mines. Some trucks had plates from Mozambique. A copy of a cash flow statement belonging to one of the operators showed his company had made R1.5-million in two weeks, having moved 7,000 metric tons of chrome.

Read more

Glencore guiding higher ferrochrome, nickel output – by Martin Creamer (MiningWeekly.com – August 11, 2016)

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

JOHANNESBURG (miningweekly.com) – Diversified mining and marketing company Glencore on Thursday guided higher 2016 ferrochrome and nickel production – the only two of its wide range of commodities that it expects to produce at levels higher than in 2015.

Reporting lower half-year production of copper, zinc, lead, coal and oil than in the first six months of 2015, the London-, Hong Kong- and Johannesburg-listed company headed by CEO Ivan Glasenberg put this year’s expected full-year ferrochrome production at 1 575 000 t – up on the 1 462 000 t of 2015.

In the six months to June 30, Glencore’s attributable share of ferrochrome production of 762 000 t was in line with last year’s first-half output. The company is also guiding 2016 nickel output of 116 000 t, up on the 96 000 t of last year.

Read more

Palladium surges to 14-month high; gold shines on weak U.S. data – by Zandi Shabalala and Jan Harvey (Reuters India – August 10, 2016)

http://in.reuters.com/

LONDON – Palladium and platinum rose sharply on Wednesday as bets on lower prices were reversed in thin conditions after the metal broke above key chart levels, while gold rose as weak U.S. data weighed on the dollar.

Palladium surged overnight in Asia, hitting 14-month highs. Traders said a wave of short covering was likely triggered after the metal broke above $700 an ounce, and then above last week’s 14-month peak of $723 an ounce.

Spot palladium was up 4.75 percent at $726.97 ounce at 1511 GMT, having risen as high as $746.10 an ounce in Asian trading hours. The move was likely to have been exacerbated by thin liquidity, analysts said.

Read more

NEWS RELEASE: Noront Announces Acquisition of MacDonald Mines Properties and Update on Ring of Fire Development

TORONTO, ON–(Marketwired – August 08, 2016) – Noront Resources Ltd. (“Noront” or the “Company”) (TSX VENTURE: NOT) has signed a definitive agreement with MacDonald Mines Exploration Ltd. (“MacDonald”) to acquire a 75% interest in all of MacDonald’s properties in the Ring of Fire district, subject to the approval of the TSX Venture Exchange.

The properties to be acquired consist of two separate blocks of claims. The Butler Property (77 claim units) covers a very prolific belt of felsic volcanic rocks which host four known zinc-copper rich volcanogenic massive sulphide (VMS) occurrences. The Sanderson Property (70 claim units) covers a large ferrogabbro intrusion (the “Big Mac” intrusion) and possible footwall ultramafic intrusion similar in scale to the Black Thor intrusion and which is prospective for nickel-copper as well as chromite deposits.

“MacDonald’s Butler and Sanderson properties are excellent, strategic purchases,” said Noront Chief Development Officer Steve Flewelling. “They are highly prospective and further consolidate our land position, adding 35% to our Ring of Fire holdings.

Read more

Consolidation—the fastest way to get South Africa’s idled ferrochrome capacity back into action – by Mark Beveridge (CRU Group.com – August 4, 2016)

http://www.crugroup.com/

The recovery of the South African chrome industry over the last four months has been dramatic. Back in March, chrome ore prices were at a six-year low in nominal ZA rand terms; by July, they had rebounded to their highest levels since the global financial crisis in 2008.

The proximate cause of this turnaround is obvious: Chinese demand largely defines the chrome market, and since early Q2 it has been especially strong. A combination of stimulus-linked demand for ferrochrome in China and a relative absence of chrome inventory led to a scrabble for South African ore. Prices rose and have remained stable for about the last two months.

The recovery in chrome prices also coincides with what CRU believes to be significant moves to consolidate the South African industry. These should pave the way for the creation of a stronger South African chrome sector; one that can regulate supply (both of alloy and ore )better than has been possible in recent years, while also ensuring South Africa’s overall charge chrome output increases in future.

Read more

Lonmin Fund’s Missing Millions Prompts Community Pay Reform – by Kevin Crowley (Bloomberg News – August 4, 2016)

http://www.bloomberg.com/news/

South Africa plans to reform how local communities manage and spend mining royalties after a corruption probe found that a $44 million fund bankrolled by Lonmin Plc had been exhausted.

Almost all the money received by the Bapo Ba Mogale community during the past 20 years has been spent, with the biggest amount used to build a palace for a tribal leader, Public Protector Thuli Madonsela said on July 5. The palace cost at least 80 million rand ($5.8 million) despite an initial budget of 20 million rand.

“We need to develop a policy mechanism that can prevent it from reccurring anywhere else whilst also dealing with the remedies of what has happened with the Bapo,” Obed Bapela, a deputy minister at the Ministry of Cooperative Governance and Traditional Affairs, said in an interview.

Read more

NEWS RELEASE: Chromium: Primary producers face growth headwinds as scrap ratio set to climb (Roskill.com – July 8, 2016)

www.roskill.com

Roskill has released its new chromium market report with forecasts out to 2026. It is essential reading for anyone needing a comprehensive overview of chromite, ferrochrome, chromium metal and chromium chemicals markets.

World chromite consumption totalled 29Mt in 2015 with 92% consumed in metallurgical applications. Non-metallurgical applications for chromite can be separated into chemical applications (6% of consumption in 2015), foundry applications (2%) and refractories (1%).

Stainless steel is by far the biggest end-use market for chromite and, therefore, trends in chromite consumption closely that of stainless steel production. Ferrochrome is used in the production of stainless steel. Asia dominates demand for all ferrochrome grades and its share of consumption increased substantially over the decade to 2016, while Europe, in particular, saw its market share reduce.

Read more

Merafe tipped to thrive as SA chrome supply withers – by Brendan Ryan (MiningMX – August 1, 2016)

http://www.miningmx.com/

MERAFE Resources shares firmed slightly to around 90 cents on the JSE today after the release of interim results showing the ferrochrome producer had coped well with grim market conditions during the six months to end-June.

Merafe – which is the black economic empowerment minority partner in the Glencore – Merafe chrome joint venture (the Venture) – maintained its interim dividend while chopping debt and keeping costs under control despite the 9.4% jump in electricity charges introduced from April 1.

Replying to an analyst’s question on today’s results conference call CEO, Zanele Matlala, confirmed the group’s performance for the six months had been significantly helped by improved business conditions in the second quarter compared with the first quarter, but she declined to provide a quarterly profit break-down.

Read more

Platinum and palladium catch the kings of the precious metals castle – by Eddie Van Der Walt (Business Day/Bloomberg – July 28, 2016)

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

LONDON — A surprise rally in gold and silver caught the eyes of investors in the first half of the year. Now, platinum and palladium are shining brighter. Platinum’s spot price is up 12% in July, putting prices on track for the best month since 2012. Palladium is even better, jumping 17%, the most since 2008. By comparison, gold added less than 2% in July as it lost momentum after gains in the first half.

The two lesser-known precious metals, used in devices that control toxic car emissions, are benefiting from better car sales in China, concern over labour in SA and loose monetary policy from central banks around the world.

“Platinum and sometimes palladium occasionally get dragged along by gold, but here we’re also seeing internal market dynamics playing in their favour,” Citigroup analyst David Wilson said.

Read more

Electric cars no ‘major disrupter’ to platinum business (Business Day TV – July 26, 2016)

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

Chris Griffith is CEO of Anglo American Platinum.

BUSINESS DAY TV: Free cash flow is up and net debt is down, but so too are first half profits. Anglo American Platinum continues to refocus its business in a tough environment. Joining me on News Leader with more is CEO Chris Griffith.

Chris … so interim headline earnings are down 58% to just over R1bn. Profit from lower metal prices though in the previous year did have an extraordinary item and that really skews the end result, doesn’t it?

CHRIS GRIFFITH: That’s correct. Last year, in the first half of the year, we had a massive stock gain which added about R2.2bn to earnings. And if you compare a stock gain that we had in this first half of the year of about R0.6bn, you see a net difference between the two periods of R1.6bn.

Read more

Platinum Prices Might Explode If Unions And Miners Can’t Agree – by Dave Forest (Oil Price.com – July 21, 2016)

http://oilprice.com/

It’s crunch time for global platinum. With events kicking off this week that could radically change the outlook for supply — and prices — over the coming weeks and months.

That critical happening is wage negotiations between South Africa’s mineworkers and the world’s biggest platinum producing companies. Which got underway Tuesday — with some abrupt demands from the country’s largest union.

The Association of Mineworkers and Construction Union (Amcu) sat down with miners Lonmin Plc and Impala Platinum. And formally tabled a demand for wage increases to 12,500 rand ($875) per month for the lowest-paid employees in the union.

Read more

Zimbabwe Wants Impala Platinum Land as $6.7 Billion Plan Stalls – by Godfrey Marawanyika and Kevin Crowley (Bloomberg News – July 14, 2016)

http://www.bloomberg.com/

Zimbabwe has applied for a court order to force an Impala Platinum Holdings Ltd. unit to sell almost 28,000 hectares (69,000 acres) of its mining lease to the state, land the government says will benefit the economy.

The land, held under a lease by Zimplats Holdings Ltd. but owned by the state, hasn’t been developed as the company planned and as such is “excess” to requirements, the government argued in affidavits filed to the country’s administrative court.

“Compulsory acquisition of the land is necessary for economic growth,” Zimbabwean Mines Minister Walter Chidakwa said in the affidavit.

Read more

South Africa girding for another platinum strike – by Andrew Topf (Mining.com – July 10, 2016)

http://www.mining.com/

In what seems like an annual event, platinum mining companies in South Africa are bracing for what could be another year of labour unrest.

The firms that mine the precious metal and the labour unions that represent their workers are in talks next week, trying to hammer out a deal that could avert a strike of similar magnitude to 2014.

That year, a strike led by the Association of Mineworkers and Construction Union (AMCU) forced major producers Amplats (LSE:AAL), Implats (OTCMKTS:IMPUY) and Lonmin (LSE:LMI) to shed over 70,000 jobs. The strike lasted 21 weeks, cost the industry R24 billion, and resulted in 1.3 million ounces of lost production – about a third of global output.

Read more

Death, Strikes, Rising Costs Show Mining’s Hard Sell for New CEO – by Kevin Crowley (Bloomberg News – June 9, 2016)

http://www.bloomberg.com/

Wanted: Mining executive who can make money when prices and output fall, will halt skyrocketing costs, and is willing to accept a salary paid in one of the world’s weakest currencies.

That’s the potential job description for whoever replaces Terence Goodlace as chief executive officer at Johannesburg-based Impala Platinum Holdings Ltd., the second-largest producer of the precious metal. Goodlace, 57, said last month he plans to soon resign, ending a four-year tenure that saw one of South Africa’s most reliable cash cows diminished by plunging platinum prices, strikes and fatal accidents.

outh Africa is home to about three-quarters of the world’s platinum reserves and is a major source of commodities from gold to diamonds. But extracting them is difficult and expensive.

Read more