China’s Ferrochrome Production: Altering the Global Balance – by Jeff Dong (The China Analyst – October 2012)

http://www.thebeijingaxis.com/tca/

China owns less than 1% of the world’s chrome reserves. However, thanks to strong growth in stainless steel demand and relatively cheap production costs, China’s domestic ferrochrome capacity has steadily increased over the past decade, with China overtaking South Africa in the first half of 2012 to become the world’s largest ferrochrome producer.

Yet, the lack of both upstream and downstream capabilities, along with looming chrome export restrictions, rising domestic production costs and stricter environmental controls, is putting Chinese ferrochrome producers in an increasingly precarious situation. To overcome these obstacles, Chinese ferrochrome producers will continue going overseas to gain control over upstream resources, significantly altering the global balance of the chrome ore trade. By Jeff Dong

Reviewing the remarkable growth in China’s demand for commodities and its domestic production during the last decade is always eye opening, with the steel industry standing out as the prime example. In 2011, China produced 61% of the world’s total steel output, and consumed most of that production domestically. This is even more astounding given China’s domestic iron ore supply meets only 40% of domestic demand.

In order to delve deeper into the stainless steel industry one must examine ferrochrome, a main ingredient used in steel production. In 2011, China consumed 3.5 million tons of high carbon ferrochrome, more than half of which was produced domestically.

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Can trillion-dollar platinum coins solve the U.S. debt ceiling problem? – by Dorothy Kosich (Mineweb.com – December 10, 2012)

http://www.mineweb.com/

As the U.S. government struggles through another fiscal crisis, pundits are resurrecting a theory that the minting of a handful of trillion dollar platinum coins could resolve U.S. debt woes.

RENO (MINEWEB) – As wrangling continues between President Barack Obama and House Republicans about exactly how to avoid the fiscal cliff, the U.S. Treasury Department will hit its $16.4 trillion debt ceiling In February.

Analyst Chris Krueger at Guggenheim Securities’ Washington Research Group recently suggested that to avoid a default sometime in February, the Proof Platinum Coin Seigniorage (PPCS) might be considered.

PPCS involves minting proof platinum coins with arbitrarily high face values, depositing them at the Fed, receiving electronic credits equal to the face value of the coins from the Fed, and then having Treasury sweep the profits in the Treasury General Account, where they could be used to redeem debt held by the Fed, debt held by Trust Funds and government agencies, and debt held by the non-government sector including domestic investors and foreign government and investments.

In an article published on the www.ourfuture.org website, author Joseph M. Firestone, writes, “It is important to emphasize that the capability to use PPCS, and to pay off the national debt, lies with the Executive Branch.”

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When the big just keeps getting bigger – Duluth releases new metals resource – by Lawrence Williams (Mineweb.com -December 7, 2012)

http://www.mineweb.com/

A significant increase in the enormous Twin Metals polymetallic resource in Minnesota, and identified higher grade zones, means the project economics just look like getting better and better

LONDON (MINEWEB) – With the release of an updated NI 43-101 compliant resource, Duluth Metals is just confirming the massive scale, and strategic mineral content, of the ground which falls under its Twin Metals jv with Antofagasta on the Duluth Metals complex in eastern Minnesota.

What is perhaps most impressive with regard to the future potential of the resource is that it only relates to around 11% of the ground controlled by the jv.

And from Duluth’s own viewpoint it is a resource which does not form part of its additional wholly-controlled ground holdings in the area where it has just started an exploration drilling programme, with four drill rigs turning.

But, coming back to the Twin Metals jv resource, the latest Indicated resource figures come out as containing an enormously impressive 13.7 billion lbs of copper, 4.4 billion lbs of nickel, and 21.2 million ounces of palladium+platinum+gold (TPM).

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SA mining’s uneasy truce with labour – by André Janse van Vuuren (Mineweb.com – November 27,2012)

http://www.mineweb.com/

While labour relations in the country have entered a period of relative calm, fears remain that the truce remains at risk.

JOHANNESBURG (MINEWEB) – Labour relations in South Africa have entered a period of relative calm in recent weeks, but the uneasy truce that exists between workers and their employers is at risk from a host of simmering tensions.

Normality has to a large extent returned to South Africa’s mining industry following the sector wide strikes which have shut the majority of the country’s biggest platinum and gold producing shafts for more than a month. Gold miners like AngloGold Ashanti and Gold Fields report the ramp-up process is largely going according to plan with no interruptions.

Similarly, the mass gatherings and often violent protests around the platinum mines of the North West province seem to have quietened down, while some mining bosses say they’re looking forward to a new era of multi-union relations.

But, some trouble spots remain. Kumba Iron Ore’s Sishen mine in the Northern Cape is, according to company spokesperson Gert Schoeman, still plagued by some no-shows and intimidation.

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Financing in place for Broken Hammer [Sudbury] project, says miner – by Star Staff (Sudbury Star – November 21, 2012)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Lively-based Wallbridge Mining Company Limited announced Tuesday it has secured financing to help develop its promising Broken Hammer Project, located north of Capreol.

The company said Callinan Royalties has agreed to provide Wallbridge with a line of credit for $2 million. In addition, Callinan will purchase 8,333,333 units of Wallbridge, at a price of $0.18 per unit, for gross proceeds of $1.5 million, subject to the approval of the Toronto Stock Exchange.

“We are pleased to have entered into this transaction with Callinan, a reputable royalty firm, for two reasons,” Marz Kord, president and CEO of Wallbridge, said in a release. “First, this new capital injection allows Wallbridge to accelerate the development plans for the Broken Hammer Project without significant equity dilution.

“Secondly, Callinan’s interest in financing the corporation at a premium to the current market in return for the option to purchase royalties on our 100%-owned Sudbury properties underscores the inherent value in these exploration assets, as well as broadening our already strong shareholder base.

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Correction: Given platinum’s problems, can Xstrata really justify a Lonmin takeover? – by Lawrence Williams (Mineweb.com – November 12, 2012)

http://www.mineweb.com/

Speculation that Xstrata will make another attempt to oust the Lonmin Board and take the company over remains rife in London, despite Lonmin’s rebuff of the Xstrata overtures. (Correction on Lonmin rights issue status)

LONDON (MINEWEB) – Despite an official rebuff by the Lonmin Board, Xstrata looks as though it may well be about to make a serious play to take over Lonmin and its South African platinum mines – although the timing could be better for the diversified miner with the Glencore merger vote coming up in just over a week’s time – just a day after Lonmin’s own proposed fundraising plan is due to be voted on.

Xstrata is a logical saviour for Lonmin, although the latter doesn’t seem to think so. It owns 24.6% of Lonmin already, has platinum, chrome and ferrochrome operations in the Bushveld Complex area – where 90% of the world’s platinum reserves are thought to lie and which accounts for 70% of annual global production – but is not a major platinum miner and could view picking up the remainder of Lonmin at a relatively cheap price as an attractive long term play.

It is sitting on a huge loss on its existing holding, but nevertheless probably sees Lonmin’s platinum reserves, resources and operations as a great long term asset, particularly at Lonmin’s current hugely depressed share price. But, perhaps importantly if it doesn’t take up its rights, a large proportion of the the Lonmin fundraising could remain with the underwriters – even though the rights issue price has been set at a substantial discount to make it more attractive to existing shareholders.

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Like joining a neighbourhood, says Boor [Cliffs – Sudbury ferrochrome facility] – by Carol Mulligan (Sudbury Star – November 9, 2012)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Bill Boor felt as if he were among friends Tuesday at a sold-out luncheon of 330 people organized by the Greater Sudbury Chamber of Commerce. For Cliffs Natural Resources’ senior vice-president of global ferroalloys, it was like coming home in a sense.

That’s how Boor felt May 9 after delivering the news to investors in Toronto that Cliffs had selected the former Moose Mountain Mine site north of Capreol for its $1.8-billion ferrochrome processing plant.

“We made a lot more people unhappy that day than we made happy,” Boor told the lunch-time crowd. It was a long day, but Boor and other company officials opted to come to Sudbury for a late-afternoon reception with the city’s movers and shakers.

“It was the best thing we ever decided,” Boor told the chamber crowd. “It honestly felt like when you have a very long day at work and you go home.”

In Sudbury this week, Boor met with Mayor Matichuk, Nickel Belt New Democrat MPP France Gelinas and Nickel Belt New Democrat MP Claude Gravelle. All three attended the luncheon, sitting at the same table as Boor.

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Cliffs still fuzzy on chromite timeline – by Ian Ross (Sudbury Northern Life – November 7, 2012)

 http://www.northernlife.ca/

Black Thor faces cost pressures, volatile markets, First Nations opposition

The timelines for Cliffs Natural Resources to develop a chromite mining project in the James Bay lowlands still remain somewhat murky.

Bill Boor, Cliffs’ senior vice-president of global ferroalloys, spoke to a Sudbury Chamber of Commerce lunchtime crowd Nov. 6 to outline progress on the massive $3.3-billion Black Thor mine and Capreol furnace project, and also to tamp down reports that the Ohio miner’s development timelines are slipping by one year.

Boor maintains that the company is still shooting for a late-2016 start-up for mining operations, despite earlier comments by his CEO, Joseph Carrabba, that cost pressures and volatile markets could push back the start-up of production to 2017.

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Warnings of more job losses in strike-hit SA mining industry – by Natasha Odendaal (MiningWeekly.com – November 2, 2012)

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

JOHANNESBURG – South Africa’s largest platinum mining companies this week warned of potential job losses, while 400 workers were sacked at a chrome mine and at least one mining contractor confirmed that it would retrench 860 workers.

The warning of potential job losses in a country with a 25.5% unemployment rate comes as the latest Statistics South Africa Quarterly Labour Force Survey revealed a loss of 8 000 jobs in the mining industry during the three months ended September.

Considering that many of the mining companies hit by industrial action only started dismissals in the past month, it was likely that the full impact of the dismissals related to the wildcat strikes would only be seen in the fourth-quarter report.

There was also potential for more job losses arising from possible downsizing at several platinum operations.

Gold and platinum mining companies in recent weeks threatened mass dismissals, offered moderate wage increases and promised once-off bonuses, many in the range of R2 000, to coax workers back to work.

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Major facilitation still needed to create business case for mineral beneficiation [ferrochrome facilities] – by Nomvelo Buthelezi (MiningWeekly.com – October 26, 2012)

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

JOHANNESBURG (miningweekly.com) – According to research by American banking group Citigroup, South Africa is the world’s richest country in terms of its mineral reserves, which are worth about $2.5-billion. This leaves the country with significant potential to capitalise on the mineral reserves through mining and beneficiation – or does it?

Although it may seem that beneficiation is the clear route to take to further enhance the potential that South Africa holds with its extensive mineral wealth, there are major demands that must still be met before entrepreneurs will so much as utter the word ‘beneficiation’.

Firstly, there must be a business case for beneficiation; trying to force-feed it is utter folly. Where there are sound business cases, there is then the need for entrepreneurs to step up to the plate, which they will only do if South Africa’s political environment improves.

From government’s side, there has to be adequate electricity capacity and that elec- tricity has to be affordable. The next need is for the availability of the required skills, regrettably within a South African education and training environment that is currently poor. Also required are high-level marketing capability and logistics capacity.

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Ring of Fire on the backburner for Cliffs? – by Northern Ontario Business staff (November 1, 2012)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North

Volatile commodity prices and cost pressures have Cliffs Natural Resources pushing back the start of chromite production at its Black Thor project in the James Bay lowlands Ring of Fire camp to 2017, or even beyond.

In the Cleveland miner’s Oct. 25 third-quarter conference call, Cliffs chairman and CEO Joseph Carrabba said the company is curbing capital spending and is holding off on early site construction at the remote location in the James Bay lowlands until a feasibility study is finished next summer.

It’s the second time in recent months that Cliffs has pushed back the start date at Black Thor by an additional year after steadfastly maintaining it was sticking to its original project startup date of 2015.

While Black Thor has great long-term potential, Carrabba said the sharp decline in prices of iron ore – Cliffs’ bread and butter commodity — has the company taking a serious re-evaluation of the massive $3.3-billion mine and processing development project.

“This includes delaying the major capital spending outlays and could push the production target date beyond 2017,” Carrabba told analysts.

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NEWS RELEASE: Bold Ventures Receives Permission From Marten Falls First Nations to Explore on its Koper Lake Project in the Ring of Fire which Contains the Blackhorse Chromium Deposit Optioned From Fancamp Exploration Ltd.

Toronto, Ontario October 31 2012 – Bold Ventures Inc. (BOL:TSX.V) (“Bold” or the “Company”) is pleased to report that in keeping with its policy of positive First Nations relations, has signed a Memorandum of Understanding (“MOU”) with Marten Falls First Nation (“MFFN”). Marten Falls is a First Nation community located proximal to the Company’s Koper Lake project optioned from Fancamp Exploration Ltd. (“FNC”).

The Koper Lake project is located in the Ring of Fire area of the James Bay Lowlands, northeastern Ontario. The MOU outlines an understanding between the parties to compensate MFFN for any impacts created by the project work within MFFN traditional territory. The MOU also provides for local job creation, respectful stewardship of the land and environment as well as the promotion of business partnerships with MFFN and local service providers.

About The Koper Lake Project

The property contains a known occurrence of massive chromite called the Black Horse occurrence. One drill hole intersected massive chromite interpreted to have a true thickness of approximately 35 to 55 m; a second drill hole intersected intercalated chromitite and peridotite beds followed by massive chromite over interpreted true thicknesses of 20 to 25 m. (Please refer to Fancamp press release dated December 27, 2011).

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Zimbabwe: Chrome Ore Ban – Industry Collapses – by Master Mushonga (The Daily Maverick – October 25, 2012)

The Daily Maverick is a unique blend of news, information, analysis and opinion delivered from our newsroom in Johannesburg, South Africa.

According to Chamber of Mines of Zimbabwe (CMZ), there are over 4 000 registered chromite claims currently of which 46 percent are held by indigenous Zimbabweans while the remainder is held by five large scale mining companies.

ZIMASCO, Zimbabwe Alloys, Maranatha and Monawood as big players do have synergies with small scale operators, have smelting facilities and in most instances enter into tribute agreements for the chrome ore production on claims owned by large operators.

Last year in April, the Government banned the export of raw chrome to encourage the local beneficiation of chrome ore into ferrochrome before exporting.

This change in policy was effected without considering the existing smelting capacity, investment needed to increase capacity, any guarantee to cheap and uninterrupted power supply as well as lack of chrome reserves that can last for 10 to 15 years to justify the establishment of a smelter.

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Cliffs holds open house to discuss [Sudbury] chromite smelter – by Carol Mulligan (Sudbury Star – October 26, 2012)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Interested residents who attended an open house Thursd ay in Capreol on had an opportunity to have their comments and complaints considered by Cliffs Natural Resources as it undertakes the environmental assessment for its chromite smelter project.

Cleveland-based Cliffs is about two years into collecting baseline data for its combined federal and provincial environmental assessment for development of its Black Thor deposit near McFaulds Lake in the Ring of Fire.

Jason Aagenes, director of environmental affairs for Cliffs’ ferroalloys division, briefed reporters on the environmental assessment of the four components of its Ring of Fire. Cliffs is looking to develop an open-pit mine in the James Bay lowlands, which will include a concentrator to crush chromite ore and a lined tailings pond.

It is also developing an integrated transportation corridor to move concentrated ore from the Ring of Fire to a ferrochrome processing plant it plans to build at the former Moose Mountain Mine site, north of Capreol.

Aagenes said the project is in the feasibility and environmental assessment stages, and said Cliffs is working on an aggressive deadline to begin mining and processing by 2016. Cliffs originally intended to be in production by 2015.

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South Africa miners’ strike: Labour hero Cyril Ramaphosa urged crackdown, emails show – by Pascal Fletcher and Jon Herskovitz (Reuters/Toronto Star – October 25, 2012)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

JOHANNESBURG—South African millionaire businessman and one-time anti-apartheid hero Cyril Ramaphosa urged ministers to crack down on a violent platinum miners’ strike the day before 34 miners were killed by police, according to emails revealed this week.

The emails cited on Tuesday by a lawyer for miners arrested over the Aug. 16 “Marikana Massacre” are the latest evidence of a reversal of historical roles for the 59-year-old, who himself led a historic miners’ pay strike under apartheid in 1987.

As a respected and influential member of the National Executive Committee of the ruling African National Congress (ANC), Ramaphosa has long been touted as a possible presidential contender.

Hailed with Nelson Mandela as a champion of anti-apartheid struggle, the man who was once called “South Africa’s Lech Walesa” now finds himself pilloried as a cold-hearted capitalist in his role of shareholder and board member of Lonmin, the company at the heart of the Marikana dispute.

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