Archive | International Media Resource Articles

New York Gold Traders Are Drowning in a Glut They Helped Create – by Justina Vasquez (Bloomberg News – May 28, 2020)

https://ca.finance.yahoo.com/

(Bloomberg) — The New York gold market has been flipped on its head in just a couple of months, with a scramble for the metal turning into a glut.

Earlier this year, traders who had sold contracts paid a steep premium to close positions after the coronavirus pandemic grounded flights, sparking worries about the ability to get gold to New York.

That drove futures to the highest premium to the spot price in four decades, attracting a flood of metal to the U.S. from around the world. Now, contract holders are trying to avoid taking delivery from the massive inventory. Continue Reading →

COLUMN-The spike before the slump? Australian coal exports to China soar in May – by Clyde Russell (Reuters U.S. – May 28, 2020)

https://www.reuters.com/

LAUNCESTON, Australia, May 28 (Reuters) – Australia’s coal exporters are bracing for a slump in shipments to China, making it somewhat ironic that May is likely to be the strongest month in nearly two years for Chinese imports from Down Under.

Traders are expecting that China’s coal imports may fall in coming months amid moves by Beijing to restrict cargoes to protect the domestic mining industry and prices.

While the port restrictions are expected to apply to all coal exporters, including China’s major suppliers of Indonesia, Australia and Russia, it’s also possible that Australian cargoes may suffer more given the ongoing political tensions between Beijing and Canberra. Continue Reading →

Covid-19 did not leave gold ‘unscathed’, says World Gold Council – by Simone Liedtke (MiningWeekly.com – May 28, 2020)

https://m.miningweekly.com/

The Covid-19 pandemic has disrupted the gold supply chain unlike any other event in modern history, the World Gold Council (WGC) said in a market update on May 28.

With all elements of the chain affected, from mining operations to consumption, this has resulted in some distortions within parts of the market but it has also “allowed the supply chain to demonstrate its resilience”.

Both gold mining and recycling activities were curtailed owing to lockdown restrictions in the first quarter of the year, but these declines were “modest” in comparison to the scale of disruption to other industries globally, the WGC noted. Continue Reading →

Nornickel, Murmansk Region present Pechengsky District’s development program (Tass.com – May 2020)

https://tass.com/

MURMANSK, May 26. /TASS/. The Murmansk Region’s government and the Norilsk Nickel Company (Nornickel) on May 20 presented a concept for development of the Pechengsky District. Nornickel’s Director of the Social Policies Department Svetlana Ivchenko told reporters the parties would also implement in the region a program to develop sustainable economy after Kola MMC closed down its melting shop.

The Kola MMC’s melting shop is the key business in the Nickel town, where about 11,000 live. Along with supporting divisions, the shop employs about 600 people. Their jobs will be cut gradually, and the shop will be closed by 2021. Nornickel and the regional authorities have been working on a program to settle the employment issue in the town.

“Our next step is to develop a program for the district’s social and economic development, which will be a part of the Murmansk region’s program,” she said. “The program will outline the initiatives, projects and actions. <…> We have been working on the program’s all directions.” Continue Reading →

The Space Business Is About to Get Really Serious – by Michael R. Strain (Bloomberg News – May 26, 2020)

https://www.bloomberg.com/

Wednesday is looking like a watershed moment in history. The scheduled afternoon launch of a SpaceX Dragon capsule atop a Falcon 9 rocket from Cape Canaveral, Florida, at 4:33 p.m. would mark the first time a privately owned vehicle takes astronauts into orbit.

Elon Musk, the billionaire space entrepreneur and chief executive of Tesla Inc., founded SpaceX in 2002. If the launch succeeds — bad weather could push it to Saturday — it would be the company’s crowning achievement to date.

Musk’s hope is to enable the colonization of Mars. Delivering two astronauts to the International Space Station suggests that his grand ambition might be more than a pipe dream. Continue Reading →

COLUMN- U.S. aluminium’s negative price puzzle as premium crashes – by Andy Home (Reuters U.S. – May 27, 2020)

https://www.reuters.com/

LONDON, May 27 (Reuters) – Aluminium has been one of the industrial metals hit hardest by the coronavirus. The London Metal Exchange (LME) price hit a four-year low of $1,455 per tonne in April and is struggling to recover, last trading at $1,525.

Inventory has surged, with 663,475 tonnes of metal placed on LME warrant since the middle of March, lifting headline exchange stocks to a three-year high of 1,493,775 tonnes.

COVID-19 has crushed both demand and price with a collective producer supply response lacking. Poor global market dynamics look even worse in North America, where the physical premium has imploded since March. Continue Reading →

How Lab Grown CVD Diamonds Can Be India’s Ace Card In Global Gems & Jewellery Industry (Diamond World – May 26, 2020)

https://www.diamondworld.net/

In times when the global diamond industry had been challenged with declining natural diamond prices driven by decreased global consumption, geopolitical tensions, reduced financial aid from banking institutions, demonetisation struggles in India and a collective scale-back of production by the miners worldwide, lab grown diamonds have seem to emerge slowly as a ray of hope and establish a growing footprint in the gems and jewellery industry.

2019, particularly, was the year for lab-grown diamonds. India, alone, witnessed a sharp rise in LGD exports worth $443 million which were up by 102% y/y. Even at the start of 2020, lab-grown diamond exports in India were up by 60% y/y, while natural diamond exports were down by 41% y/y.

Whilst the lab-grown diamond industry had seen a significant price correction in recent years with the technology evolving and the cost of technology coming down, lab-grown diamond prices, particularly CVD diamonds, have now stabilized. In fact, CVD diamonds above 1ct saw a 29% price rise in the last quarter of 2019 driven by significant demand and limited supply. Continue Reading →

Lithium producers must wait as pandemic slows electric vehicle revolution – by Helen Reid and Ernest Scheyder (Reuters U.K. – May 26, 2020)

https://uk.reuters.com/

JOHANNESBURG/HOUSTON (Reuters) – The coronavirus pandemic has paused the electric vehicle revolution, forcing producers of battery metal lithium into survival mode with output cuts, expansion delays and sales of major assets.

Lithium industry shares have dropped sharply since January as the economic downturn from the pandemic slammed the brakes yet again on the electrification revolution that for years has seemed just around the corner. Investors are giving the cold shoulder to mine developers seeking funding for lithium projects.

“This pandemic further kicks the EV can down the road,” said Seth Goldstein, a lithium industry analyst with Morningstar. Continue Reading →

U.S. Falters in Bid to Replace Chinese Rare Earths – by Keith Johnson and Robbie Gramer (Foreign Policy – May 25, 2020)

https://foreignpolicy.com/

“Each F-35 fighter, for instance, needs 920 pounds of rare earths;
each Virginia-class nuclear submarine requires 9,200 pounds. Tomahawk missiles, guidance  systems, and jet engines all need different combinations of alloys and specialized products using some of the 17 different rare-earth elements.”

Rising tensions with China and the race to repatriate supply chains in the wake of the COVID-19 pandemic have given fresh impetus to U.S. efforts to launch a renaissance in rare earths, the critical minerals at the heart of high technology, clean energy, and especially high-end U.S. defense platforms.

But it’s not going well, despite a slew of new bills and government initiatives aimed at rebuilding a soup-to-nuts rare-earth supply chain in the United States that would, after decades of growing reliance on China and other foreign suppliers, restore U.S. self-reliance in a vital sector.

“I think the light bulb has gone on, but we are still in a muddle about exactly what to do about it,” said David Hammond, an expert on rare earths at Hammond International Group, a consultancy. Continue Reading →

Gold Giant Australia Is Firing Back Up a Record Exploration Boom – by Sybilla Gross and David Stringer (Bloomberg News – May 25, 2020)

https://ca.finance.yahoo.com/

(Bloomberg) — Gold miners in Australia — set to leapfrog China next year to become the top producer — are resuming a pandemic-disrupted exploration spree as prices surge amid a dearth of major discoveries.

“Gold does really well in volatile times, so my sense of this is we’re on the cusp of a fairly major boom,” said Rob Bills, chief executive officer of Emmerson Resources Ltd., which plans to restart exploration drilling this week as the nation continues to ease Covid-19-related curbs. “Those companies that have got cash will turn the tap on fairly quickly.”

Spending on gold exploration in Australia rose to a new record in the final quarter of 2019, while the annual total of more than A$1 billion ($656 million) was about 20% higher than the previous year, according to government estimates. Continue Reading →

New Century in talks with Brazil’s Vale over nickel-cobalt mine sale – by Nick Toscano (Sydney Morning Herald – May 26, 2020)

https://www.smh.com.au/

Australia’s New Century Resources is in exclusive talks with Brazilian mining giant Vale to take over its troubled nickel and cobalt mine in New Caledonia under a proposed deal that contains a financial contribution from Vale and possible support from the French government.

New Century chief executive Patrick Walta said the company had entered into a 60-day exclusivity period to negotiate the acquisition of a 95 per cent ownership stake in Vale’s Goro mine in the south-west Pacific nation, which has been plagued by problems, delays and cost blow-outs for Vale since mining operations began there in 2011.

Under the proposed deal, Melbourne-based New Century would be effectively paid to take ownership of the Goro mine, with the value of financial contributions from Vale and the potential forgiveness of debts from the French state estimated to be in the vicinity of $1 billion. Continue Reading →

COLUMN-Iron ore defies coronavirus gloom with bullish supply, demand narrative – by Clyde Russell (Reuters U.K. – May 26, 2020)

https://uk.reuters.com/

LAUNCESTON, Australia, May 26 (Reuters) – Iron ore is continuing to defy the global economic gloom, with both futures in China and the spot price surging to the highest this year, showing how the steel-making ingredient is benefiting from a cocktail of supply concerns and demand hopes.

The Dalian Commodity Exchange’s most-active contract , for September delivery, ended at 723 yuan ($101.40) a tonne on May 22, up 25.2% since the start of the year in local currency terms.

The spot price for benchmark 62% iron ore delivered to China MT-IO-QIN62=ARG, as assessed by commodity price reporting agency Argus, ended at $97.30 a tonne on May 22, down slightly from the previous day’s close of $97.85, which was the highest price in eight months. Continue Reading →

Bill Gates and Richard Branson have their sights on the mining sector — and investment opportunities for startups abound – by Holly Bridgwater (Smart Company.com – May 25, 2020)

SmartCompany

Tech giants are on the hunt for investment opportunities in the mining sector, in a push that is destined to change the landscape of the resources industry.

Among those leading the charge are tech billionaires Bill Gates, Jeff Bezos and Richard Branson — all backers of technology fund Breakthrough Energy Ventures (BEV). Last year, BEV joined forces with hedge fund a16z to invest in mineral exploration company KoBold Metals and its search for ‘ethical’ cobalt.

The billion-dollar fund was also instrumental in raising $20 million in Series A funding for Lilac Solutions, a mining technology company focused on transforming lithium production. Continue Reading →

Strategic hot spot Greenland sparks global tug-of-war – by Alex Matthews (Deutsche Welle – May 23, 2020)

https://www.dw.com/en/

The US has always seen Greenland under its sphere of influence. But the island’s increasing independence is threatening that. As it becomes more global, China and Russia see a chance to control the Arctic.

The last time the US opened a consulate on Greenland was in 1940. The German Army had just invaded Denmark and the Americans wanted to stop the Nazis gaining a foothold in the middle of the Atlantic Ocean.

This summer the US is reopening its diplomatic mission in Nuuk for the first time since 1953, as well as offering the island nation $12 million (€11 million) in investments. The money will be used to boost the territory’s mineral industries, tourism and education.

The United States’ goal this time is exactly the same it was 80 years ago. A US State Department official said a press briefing that it wants “a secure and stable Arctic where US interests are safeguarded.” But this time around it’s not Germany the US sees as challenging its interests. Now it’s Russia and China. Continue Reading →

US political heat puts Lynas defense contract on ice – by Colin Kruger (Sydney Morning Herald – May 25, 2020)

https://www.smh.com.au/

Rare earths group Lynas Corp has received a setback to its expansion plans after warning the US Department of Defense contract it was awarded last month may be on hold while the political debate heats up on whether the country should source its rare earths onshore.

In a statement to the ASX on Friday evening, Lynas confirmed media reports in the US – debating the merits of sourcing rare earths locally versus from allies or other sources – have impacted on the contract that could help fund its plants to set up a processing plant in Texas.

“Lynas remains one of two companies selected for Phase 1 of the project, however Lynas understands that the US government’s progress on Phase 1 is currently on hold those political issues are addressed,” the company said. Continue Reading →