Chromium/Platinum Group Metals – Page 21

Great Mines: Finland’s Kemi Chrome – by John Chadwick and Hugh Boden (International Mining – October 2015)

October 5, 2015

In September 2014 Kemi mine celebrated exactly 50 years since Outokumpu made the decision to begin chrome mining operations there in Kemi, Finland. Today it is one of the most efficient and environmentally friendly mines in the world. The deposit had been found five years earlier. Mining began in 1967, with large-scale mining operations and ferrochrome production beginning in 1968.

The chrome mine and ferrochrome works were the first steps in Outokumpu’s transition from state mining company to one of the world’s foremost stainless steel producers. Today the annual mill capacity is 2.7 Mt/y of ore (up from 1.3 Mt/y in 2010), producing lumpy ore and fine concentrate (all for internal use). The mine employs some 400 people including contractors, and the nearby ferrochrome works and stainless steel mill in Tornio employ some 1,900 (plus contractors).

CEO Mika Seitovirta: “Kemi is an essential part of the integrated production chain in the Tornio site. Chromium is what makes steel stainless, and our own chrome mine guarantees us competitive sourcing of chromium for the future. The Kemi chrome mine is a unique competitive advantage for us globally.” Outokumpu sees the competitive advantages of its ferrochrome operation as:

New S.Africa mines minister faces platinum baptism of fire – by Zandi Shabalala (Reuters U.K. – September 23, 2015)

September 23, 2015

http://uk.reuters.com/

JOHANNESBURG, Sept 23 (Reuters) – For South Africa’s new mining minister Mosebenzi Zwane, until now a little-known provincial agriculture official, it was not the ideal first day in the office.

Taking over a sector already bleeding jobs due to the commodity price slump, Zwane was confronted with the price of platinum, one of South Africa’s most valuable exports, hitting a 6-1/2 year low due to the Volkswagen emissions tests scandal.

The concern is that any European consumer backlash against diesel cars, which use platinum in catalytic converters, could torpedo already shaky demand for the white metal, nearly all of which is produced in South Africa.

Platinum’s biggest daily drop in two years is a stark reminder of what lies in store for Zwane as he tries to walk a line between hostile unions, hardline communists in the ruling ANC and mining firms that have done little to change their ways since the end of apartheid two decades ago.

And the platinum sector is still reeling from a five-month strike, the longest in South African history, last year that has forced shaft closures and mine sales.

Shame on VW for its deception. The CEO has to go – by Eric Reguly (Globe and Mail – September 23, 2015)

September 23, 2015

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.

ROME — Martin Winterkorn should be fired, then handed a dictionary so he can learn the meaning of “clean” technology.

Mr. Winterkorn is chairman of the management board (CEO, in effect) of Volkswagen AG, Germany’s mightiest industrial company. It is the world’s No. 2 car maker and one of Germany’s, and the world’s, best-known brands – the very symbol of reliable Teutonic technology, performance and value. Volkswagen, whose marques include VW, Porsche, Audi, Lamborghini and Bentley, can be bought in almost every country; they are status symbols.

The Volkswagen brand, along with the Germany Inc. brand, is worth a lot less than it was before Saturday, when the U.S. Environmental Protection Agency accused the company of rigging the emissions data on almost half a million of its diesel-powered cars sold in the United States between 2009 and 2015. On Tuesday Volkswagen said that 11 million of its cars worldwide had been rigged to fool air-quality regulators, making a mockery of Volkswagen’s “clean” diesel technology push.

Platinum prices hit by Volkswagen scandal – by Henry Sanderson (Financial Times – September 23, 2015)

September 23, 2015

http://www.ft.com/

Volkswagen’s emissions scandal has hit the price of platinum — the precious metal used to make diesel catalysts fitted in some of the vehicles at the heart of the affair.

Platinum fell to a six-and-a-half year low of $925.30 a troy ounce on Wednesday, after dropping 4 per cent on Tuesday, its biggest one-day fall in more than two years.

The metal, which is used mostly to make catalysts for diesel vehicles, is already down more than 20 per cent so far this year.

Shares in Johnson Matthey, a maker of car catalysts, have fallen 11.8 per cent this week. They were down 1.9 per cent in morning trading on Wednesday, the worse performer in the FTSE 100 stock index.

Investors are worried VW’s admission it cheated on US emissions tests could hasten the demise of diesel cars in Europe, where they are already under fire in cities such as London and Paris due to air pollution concerns.

Gold’s Mr. Fixit Starts Second Act With Anglo Platinum Discards – by Andre Janse Van Vuuren and Kevin Crowley (Bloomberg News – September 10, 2015)

September 10, 2015

http://www.bloomberg.com/

Crippling labor strikes, geriatric mines and precious metals prices scraping along at their lowest levels in half a decade don’t faze Neal Froneman, head of the world’s best-performing gold producer over the past two years.

Froneman, known in the industry as Mr. Fixit, defied investors’ skepticism to build up Sibanye Gold Ltd. from a spinoff of three old, strike-prone South African mines owned by Gold Fields Ltd. Now he wants to do it again in platinum and maybe even coal.

“We think that we’re very well positioned to move into other difficult social environments within South Africa and make a meaningful difference,” Froneman, Sibanye’s chief executive officer, said in a Bloomberg Television interview.

“We have some experience and we understand these risks very well. “While other investors flee the nation, Froneman, 55, reckons he can overcome its fractious labor relations, high costs and low productivity to buy assets cheaply, turn them around and make money.

Welcome to Rustenburg, Mr Froneman – by Warren Dick (Moneyweb – September 10, 2015)

September 10, 2015

http://www.moneyweb.co.za/

Sibanye to join the ranks of the platinum producers

The CEO of Sibanye Gold* (to be amended shortly) in negotiations with Anglo American Platinum (Amplats) has bobbed and weaved, ducked and counterpunched, but finally, Neil Froneman appears to have landed a potential title-winning blow for shareholders. In the process Sibanye might well move up a category, from middle to heavyweight.

This is because the R1.5 billion plus deal (more about this later) looks to provide a sizable entry point for Sibanye to enter the platinum group metals (PGM) market through the acquisition of the Rustenburg Operations from Amplats.

Speaking at the announcement of the deal yesterday, Froneman said, “we were very disciplined and structured. We had to make sure our first entry into platinum was significant, but we haven’t rushed into it.” Froneman demonstrated that discipline when he walked away from a deal with Amplats in October last year with those immortal words, “Well if they [the assets up for sale] are so good, they should keep them.”

In response to a question from an analyst on how the two parties came to agree on the price the second time around, Froneman revealed why he has a reputation as a skilled dealmaker.

Anglo American sells lossmaking platinum mines to Sibanye – by James Wilson and Andrew England (Financial Times – September 9, 2015)

September 9, 2015

http://www.ft.com/

Abidjan and Johannesburg – Anglo American on Wednesday unveiled plans to offload some of its most problematic assets, striking a R4.5bn ($330m) deal to sell lossmaking South African platinum mines.

The proposed disposal to Sibanye Gold ends Anglo’s long ownership of the mines near Rustenburg and further reduces the global mining group’s ties to South Africa, its historic home.

Selling assets has been a priority for Mark Cutifani, Anglo’s chief executive, as he tries to improve the group’s financial performance amid a deep commodities downturn.

Sibanye, a South African miner, will pay R1.5bn upfront in cash or shares for the Rustenburg operations owned by Anglo American Platinum, an Anglo subsidiary focused on platinum production. Sibanye will also pay Anglo 35 per cent of the mines’ free cash flow over a six-year period, with a minimum amount set at R3bn.

Anglo American in talks to sell troubled platinum mines – by Andrew England and James Wilson (Financial Times – September 3, 2015)

September 3, 2015

http://www.ft.com/

Johannesburg and Abidjan – Anglo American is in advanced talks to sell some of its South African platinum mines, as the UK group deepens its efforts to get rid of underperforming parts of its sprawling global operations.

The group said on Thursday that Amplats, its South African subsidiary, was in discussions with Sibanye Gold, a South African gold miner, over a sale of Anglo’s troubled Rustenburg platinum operations north west of Johannesburg.

Selling a slew of poor-quality assets has been a key priority for Anglo’s chief executive Mark Cutifani as he battles to improve the group’s financial performance while miners grapple with a prolonged collapse in commodity prices. Shares in mining companies have slumped amid global concern over the economic slowdown in China, the industry’s dominant customer.

Anglo’s South African exposure, and in particular its prominence in the platinum sector, has been one of the biggest concerns for investors. The Rustenburg operations are particularly problematic as they are lossmaking and have been at the heart of labour unrest in South Africa’s platinum industry.

Mining’s new deal: A platinum solution? – by Rebecca Davis (Daily Maverick – September 1, 2015)

September 1, 2015

http://www.dailymaverick.co.za/

South Africa’s beleaguered mining industry is in danger of losing almost 12,000 jobs: an employment vacuum the country can ill afford. As of Monday, a new plan signed by the industry, government and the unions won’t guarantee that the jobs will be saved. If further retrenchments are inevitable, however, the plan may ensure that life is a little easier for laid-off mineworkers. But is it enough to solve the problems of an industry in crisis?

The mineral resources minister, the Chamber of Mines and union representatives all appeared to be in sunny spirits following Monday’s signing of an agreement aimed at halting the haemorrhaging of jobs from the mining industry.

Mineral Resources Minister Ngoako Ramatlhodi said there was every reason to be hopeful that the plan, titled “Leaders’ Declaration – Mining Industry Commitment to Save Jobs and Ameliorate the Impact of Job Losses”, would be implemented with the cooperation of all parties. Trade union Solidarity’s general secretary, Gideon du Plessis, told eNCA he had a “good feeling” about a plan he described as “revolutionary”. The Chamber of Mines put out a statement affirming that its members were “fully committed” to the process.

Absent was the Association of Mineworkers and Construction Union (Amcu), which had participated in weeks of negotiations but did not sign Monday morning’s agreement.

Friedland: Mining companies ‘priced for Armageddon’ – by Lesley Stokes (Northern Miner – August 18, 2015)

August 19, 2015

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

VANCOUVER — The vanguard executive chairman of Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF), Robert Friedland, took to the stage at the Sprott Natural Resource Symposium in Vancouver in late July, and delivered a relaxed speech discussing why he believes copper is set to rebound in two to three years.

“The further you push the price down, the higher it’ll bounce,” he said, predicting that higher environmental standards in China may strengthen the demand for copper, in tow with other “green” metals such as zinc, platinum and palladium.

He said that China will “try very hard” to double its growth to 6% or 7% through sustainable development, but he’s dubious whether the current world supply will match the metal needed to clean China’s air and fertilize its soils.

He describes many of the great copper mines as “little old ladies, kept on life support and waiting to die,” whereas others are so low grade “they’re practically mining air” and kept alive by favourable currency exchange rates.

Zimbabwe: Reprieve for Platinum Miners – by Golden Sibanda (All Africa.com – August 10, 2015)

August 10, 2015

http://allafrica.com/

CABINET last week suspended the 15 percent tax on raw exports of platinum for a period of two years to allow mining companies more time to set up platinum beneficiation facilities.

This allows the country’s mines to continue exporting raw platinum group metals without being subjected to the contentious tax.

The Ministry of Finance had early this year gazetted a statutory instrument effecting Government’s decision to subject raw PGMs to the export levy.

As such, the platinum mining companies had been lobbying for the removal of the tax arguing it rendered operations unviable in the wake of falling PGM prices.

In fact, the companies briefly suspended exports in April this year arguing that they could not continue due to the impact of tax on gross proceeds of sales.

Behind community protests in the platinum belt – by Sarah Evans (Mail and Guardian – August 5, 2015)

August 6, 2015

http://mg.co.za/

Who is responsible for the backlash? A research paper unravels the nexus of land ownership, traditional authority and mining elite interests.

ANALYSIS

A new paper reveals insights into the complexity of the land question and marries it with the plethora of issues that underlie community protests that plague the platinum belt.

This nexus of land ownership, traditional authority, government and mining elite interests, and the ultimate brunt to be borne by mining communities in the North West is explored by this recent research. Platinum mining in the North West province has resulted in “untold suffering” for residents near to mines, according to the paper released on Wednesday.

The paper, titled “Platinum, poverty and protests: platinum mining and community protests around Rustenburg”, was released at a seminar hosted at Wits University’s Society, Work and Development Institute (Swop), and researched by Dr Joseph Mujere and a Swop research associate from the University of Zimbabwe.

Some Robert Friedland riffs: The “miner’s miner” talks commodities, jurisdictions, markets and majors – by Greg Klein (Resource Clips – July 29, 2015)

July 30, 2015

http://resourceclips.com/

Getting back to commodities, he argues that Saudis killed the Alberta oilsands
and devastated U.S. shale “but no one can do that to copper.” Friedland
dismisses some copper miners as “little old ladies waiting to die,” saying
some grades fall so low that companies are “practically mining air.”
(Robert Freidland)

A “miner’s miner” was how Rick Rule introduced Robert Friedland. The founder and executive chairperson of Ivanhoe Mines TSX:IVN also serves as executive chair of the Sprott-Stansberry Natural Resource Symposium in Vancouver, where he delivered the opening day’s keynote speech on July 28. That was the original plan, anyway. Instead, a relaxed-looking Friedland eschewed a script to sit back and, in response to questions posed by Rule, discuss commodities, jurisdictional risk, markets and the problem with the majors.

Friedland’s favourite metals? They’re currently copper, platinum, palladium and zinc—stuff for which he sees bright futures and, not surprisingly, the stuff he’s currently pursuing. He also likes diamonds but considers himself “an agnostic on gold.”

“Copper is the metal if you believe in human advancement,” Friedland says. “Gold is the opposite.” Meanwhile this market has either hit bottom “or it’s the end of the world.” He says he’s never seen such a severe devaluation, with stocks “priced for Armageddon.”

Lonmin: victim of price falls and management wobbles – by Silvia Antonioli and Ed Stoddard (Reuters U.S. – July 30, 2015)

July 30, 2015

http://www.reuters.com/

LONDON/JOHANNESBURG, July 30 (Reuters) – Platinum producer Lonmin is facing its deepest crisis to date, hurt by a downturn in the metal and haunted by a mixture of bad luck and debatable management choices that are putting its survival at risk.

Times are tough for everyone in the platinum sector. Producers are squeezed between soaring costs and a rout in platinum prices to lows not seen since the 2008 financial crash.

But Lonmin is bleeding more quickly than the others and its apparently inexorable decline has become evident this year. Its shares dropped this week to their lowest since Jan. 1979. Pre-tax losses last year were $326 million.

Glencore’s decision to sell its 23.9 percent stake earlier this year was the latest blow to Lonmin, whose name is tied to the tragic 2012 Marikana mining strike.

“Glencore’s exit was clearly a no confidence vote on the sector but foremost on a company that is disadvantaged versus the other big players,” said Ingo Hofmaier, director at London-based merchant bank Hannam & Partners.

Platinum: Time for a cartel? – by Adrian Saville (Mineweb.com – July 1, 2015)

July 2, 2015

http://www.mineweb.com/

The chances are slim, and a stabilisation fund might be a better alternative.

An op-ed by Dr Adrian Saville, Professor of Economics at the Gordon Institute of Business Science, and Chief Strategist at Citadel.

In spite of the beleaguered platinum sector effectively being an oligopoly, with three suppliers controlling the bulk of new mine supply, the industry is a price taker, vulnerable to wild swings in the prices of platinum group metals (PGMs).

There are several reasons for this, including an increasingly efficient use of metals – meaning that demand doesn’t grow at the same pace as industrial activity – and a rising contribution from recycled platinum. As a consequence, supply consistently exceeds demand, translating into platinum being a “surplus industry”. Producers are thus weaker than consumers, making them price takers.

To add evidence to the above, new mine supply of platinum has slipped steadily to 5.1 million ounces (Moz) in 2014 from a peak of 6.8Moz in 2006.