International Media Resource Articles – Page 464

The Economist explains: How Australia has gone 25 years without a recession (The Economist – March 16, 2017)

March 17, 2017

http://www.economist.com/

WESTERN AUSTRALIA’S iron ore and Queensland’s coal were at the centre of Australia’s recent mining boom, stoked by the red-hot growth of China’s steelmaking industry. At its height about five years ago, mining investment accounted for 9% of national GDP. But as investment started to decline in 2013, Western Australia’s debt soared.

At 6.5%, its unemployment is now Australia’s highest. If the pattern of earlier booms had followed, Western Australia’s plight would have reverberated around the country and ended in a national bust. Yet the economy’s growth has stayed intact, notching up 25 years without a recession. How has Australia managed a feat that has defied most other rich countries?

Australia’s mining booms over the past 160-odd years made the country feel rich and confident while they lasted. Workers made big money, and this brought prosperity to far-flung regions producing gold, coal, gas and other commodities. Recessions followed nearly all earlier booms, including the most recent one, in the 1980s, largely because the upheaval proved too big a shock for an economy that was highly regulated.

Anglo’s Billionaire Investor Puts Mining on Cusp of M&A Era – by Jesse Riseborough, Dinesh Nair and Thomas Biesheuvel (Bloomberg News – March 17, 2017)

March 17, 2017

https://www.bloomberg.com/

Anil Agarwal’s surprise move into Anglo American Plc suggests the mining industry may be on the cusp of a new wave of deals.

For years, Anglo has been the subject of takeover speculation and during the worst of the commodities crisis it seemed on the verge of a breakup. It spent last year getting back on firmer footing, but the 2 billion pound ($2.4 billion) investment by one-time Anglo suitor Agarwal has sparked the return of speculation about the company’s future.

“I’m pretty sure every investment banker in London is running around, dusting off old pitch books and going to every major in town,” Paul Gait, an analyst at Sanford C. Bernstein Ltd. in London, said by phone. “This feels to me a little like the last cycle, when the first mover precipitated a round of consolidation.”

Brazil dam disaster lawsuit against BHP Billiton, Vale, suspended – by Paul Kiernan(The Australian – March 17, 2018)

March 17, 2017

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

A Brazilian judge has suspended a nearly $US50 billion ($A65bn) lawsuit against the mining firms responsible for the 2015 Samarco tailings dam disaster, as negotiations between the companies and authorities moved forward.

The decision came as part of a ruling in which federal judge Mário de Paula Franco Júnior approved a road map toward a final agreement between prosecutors and mining companies BHP Billiton (BHP), Vale, and their joint-venture Samarco Mineração.

Brazil’s government, which brought the lawsuit, was not immediately available for comment but in the past has indicated its main concern was reaching a settlement and safely restarting the mine.

Take community engagement seriously, ARM’s Motsepe advises – by Martin Creamer (Mining Weekly.com – March 16, 2017)

March 17, 2017

http://www.miningweekly.com/

JOHANNESBURG (miningweekly.com) – The South African mining industry must take community engagement extremely seriously to prevent this country’s global competitiveness from being negatively impacted, African Rainbow Minerals (ARM) executive chairperson Patrice Motsepe urged on Thursday.

Speaking at question time after ARM reporting a basic earnings loss of R254-million in the six months to December 31, the ARM founder spoke of the importance of the mining industry building community trust and goodwill through creating employment, education and upskilling, including at senior level employment. (Also watch attached Creamer Media video).

Proper training, he said, would ensure that recruitment was strictly merit based, with communities being made fully aware of the losses suffered if mines were forced to close through a lack of profitability.

Mining issues cloud Phl competitiveness – by Richmond Mercurio (The Philippine Star – March 17, 2017)

March 17, 2017

http://www.philstar.com/

MANILA, Philippines – The Philippines may soon feel the backlash of the ongoing issues surrounding the closure and suspension of mining companies in its global competitiveness rankings, the National Competitiveness Council (NCC) said.

NCC private sector co-chairman Guillermo Luz told The STAR the decision of the Department of Environment and Natural Resources (DENR) to close 23 mine sites and suspend five others may affect the country’s standing in some global reports, particularly those that include rule of law, contracts and formation of public policy as indicators.

“Any area which affects investor interest is obviously an area of concern for us. Definitely, you can see the impact on the mining sector. Obviously, they are very concerned,” Luz said.

Tensions rise in New Caledonia as it mulls a break with France – by Michael Field (Nikkei Asian Review – March 16, 2017)

March 17, 2017

http://asia.nikkei.com/

Bougainville and Guam are also moving toward referendums on constitutional status

AUCKLAND Due east of Australia, the Pacific island of New Caledonia is mulling a final break from France, ending a relationship lasting more than 150 years. In a referendum that will take place next year, islanders will vote on the issue of independence.

The wording of the referendum question to be asked has not been determined, and neither has the eligible electorate. Tensions have been building, prompting Paris to dispatch 50 additional security officers to the territory. They arrived in February, but attacks on police have continued, wounding three and drawing condemnation from authorities.

Sonia Backes, a senior pro-French politician in New Caledonia, has been critical of what she sees as Paris’ soft line. This month she demanded the prosecution of an indigenous politician who called whites in New Caledonia “immigrants.” “UNBEARABLE REMARKS” “These remarks are unbearable,” she said, adding that those who say such things should be prosecuted for “inciting racial hatred.”

COPPER-NICKEL GOES ON TRIAL – by Leah Ryan and Jerry Burnes (Mesabi Daily News – March 16, 2017)

March 17, 2017

http://www.virginiamn.com/

DULUTH — With the federal government weighing a 20-year moratorium on mining activity in the Superior National Forest, Minnesotans took to the microphone for their side of the issue, essentially turning Thursday’s U.S. Forest Service hearing into copper-nickel’s most public trial.

Hundreds of people crowded into Symphony Hall at the Duluth Entertainment Convention Center wearing their side on their sleeve. Mining’s supporters donned “We Support Mining” blue baseball hats and buttons, countered by T-shirts and stickers saying “We love the BWCA.” Thursday’s hearing was the culmination of the often tense, always at odds debate over copper-nickel mining at the edge the Boundary Waters Canoe Area Wilderness near Ely.

“There is a big crowd, and that tells me a lot of people find this important,” said Connie Cummins, supervisors of Superior National Forest, addressing the crowd before the hearing.

Coal India missing output target doesn’t matter, mining millions of tonnes more does – by Clyde Russell (Reuters U.S. – March 17, 2017)

March 17, 2017

http://www.reuters.com/

LAUNCESTON, AUSTRALIA – What’s more important? The fact the Coal India will once again miss its annual output target, or that it will produce over 31 million tonnes more than it did the previous year?

Recent media reports have highlighted that Coal India Ltd (CIL), the state-owned behemoth that’s the world’s largest miner of the fuel, will likely miss its target of producing 598 million tonnes in the fiscal year ending March 31.

“CIL may miss by 20 million tonnes and it should be between 570-578 million tonnes,” Coal Secretary Susheel Kumar said of the target, in an article in the Economic Times on March 12. Assuming CIL reaches the lower end of the range, the 570 million tonnes produced in 2016-17 would still be 31.25 million, or 5.8 percent, more than what it managed in 2015-16.

Indonesia’s long relationship with Freeport at crossroads – by Staff (Asian Corrospondent – March 16, 2017)

March 17, 2017

https://asiancorrespondent.com/

AMERICAN mining giant Freeport-McRoRan Copper & Gold may soon pull out of Indonesia after more than four decades due to prolonged conflict with the government. The company, which is the country’s oldest international investor and largest taxpayer, has been embroiled in a battle with President Joko “Jokowi” Widodo’s administration over new national mining regulation.

Legislation introduced in January 2017 requires Freeport to convert its business contract into a special mining licence, dictating the company must divest 51 percent of shares in its local subsidiary within a decade and build a new US$2 billion smelter.

With economic nationalism a key aspect of Jokowi’s agenda, the government is also demanding higher royalties, land relinquishments and more materials to be procured from local suppliers.

Gold miners hike the Klondike Trail in new reality series – by Emily Fehrenbacher (Alaska Dispatch News – March 17, 2017)

March 17, 2017

https://www.adn.com/

There is a new three-part series on Discovery Channel called “Gold Rush: Parker’s Trail.” It will follow 22-year-old Parker Schnabel, who is apparently already a star of “Gold Rush,” as he attempts to conquer the Klondike Trail.

In the sneak peek for the show, the gangly young adult with a shaggy haircut says, “I want to test myself against my grandpa and the pioneers that came before him.” The more I watched of the 30-second teaser, the more I was convinced Parker is actually Adam Driver researching a new post-“Girls” role.

According to the Discovery Channel’s presser: “In the first episode, Parker and his team will set out on the first leg of the journey, considered one of the most physically challenging parts. The 45-degree ascent would be tough for any seasoned athlete, but is especially difficult for Rick, who’s out of shape, drinks too much and is a smoker.”

Mining’s Biggest Loser Lonmin Is Burning Cash to Stay Alive – by Kevin Crowley (Bloomberg News – March 16, 2017)

March 17, 2017

https://www.bloomberg.com/

For most of the mining industry, 2017 is turning out to be another good year. The big exception is Lonmin Plc.

Investors are losing confidence in the world’s third-largest platinum producer as it burns through cash to stay afloat, just 15 months after raising about $400 million from shareholders. Platinum prices aren’t far from a seven-year low and Lonmin has its own set of operational problems, including higher costs and lower output at its biggest mining shaft.

The stock is down more than 30 percent in 2017, the most in the FTSE All-Share Basic Materials Index of 28 commodity producers. The overall index has gained 11 percent this year.

Sierra Leone pastor finds huge diamond in Kono (BBC News – March 16, 2017)

March 17, 2017

http://www.bbc.com/

A Christian pastor has discovered one of the world’s largest uncut diamonds in Sierra Leone’s Kono district. The diamond, weighing 709 carats, is now locked up in Sierra Leone’s central bank in Freetown. It is one of the 20 largest diamonds ever found.

Freelance, or artisanal, miners are common in Sierra Leone’s diamond-rich areas, reports the BBC’s Umaru Fofana.

But there are questions over whether the community will benefit from the gemstone, he adds. Pastor Emmanuel Momoh’s discovery, which has not yet been valued, is the biggest diamond to be found in Sierra Leone since 1972, when the 969-carat Star of Sierra Leone was dug up.

Billionaire Agarwal Plans to Buy $2.4 Billion Anglo Stake – by Ruth David, Dinesh Nair and Thomas Biesheuvel (Bloomberg News – March 15, 2017)

March 15, 2017

https://www.bloomberg.com/

Anil Agarwal, an Indian mining billionaire, plans to buy as much as 2 billion pounds ($2.4 billion) of Anglo American Plc shares in the market after a merger proposal failed last year.

The full stake would equate to about 13 percent of Anglo’s stock, making Agarwal the second-largest shareholder after South Africa’s Public Investment Corp. It will give him a strong voice in the company’s strategy as the blue-chip British mining firm cements its recovery from a slump in commodity prices.

While Agarwal said the purchase was a family investment and he won’t make a takeover bid, the brash Indian tycoon offered to merge part his mining empire with Anglo American last year, only to be rebuffed. The London-based mining group, which is currently looking for a new chairman, is seen as a candidate for a potential break-up through splitting its South African assets from the global mining business.

Higher copper prices here to stay, says Chile’s Antofagasta – by Marcus Leroux (The Australian – March 15, 2017)

March 15, 2017

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

The Times – Steadily growing demand from China and a dearth of new mines mean that higher copper prices are here to stay, Antofagasta claims, as it raised its dividend and posted improved profits.

The Chilean-based mining group has been one of the chief beneficiaries of the rally in copper prices in recent months. The world’s two largest copper mines have halted production, while commodity prices have benefited generally from supply cutbacks and the promise of renewed infrastructure spending in the US.

The company said that there was growing demand from emerging markets, principally China, while production is slowing because the grade of ore being mined is falling and few new mines are being developed.

As China’s Coal Mines Close, Miners Are Becoming Bolder In Voicing Demands – by Rob Schmitz (Delaware Public Media – March 14, 2017)

March 15, 2017

http://delawarepublic.org/

The streets of Dalianhe, in China’s frigid northeast province of Heilongjiang, are lined with black snow. The town is home to one of China’s largest open-pit coal mines. Workers drive through its front gate into a massive gorge with cliffs the color of ink — a canyon of coal. Thousands of feet below, it’s silent but for the drip of melting snow.

It wasn’t always this way. Thousands used to work inside this mine on the northern fringe of China’s rust belt. It was established in 1960 at the height of Mao’s China, when the Communist Party considered this region a worker’s paradise. Coal mines and steel mills here employed millions.

Now it’s littered with deserted fossils of a bygone era. The 21st century’s Communist leaders are transforming China’s economy into a paradise for consumers, and have ordered inefficient, state-run mines like this one to close.