International Media Resource Articles – Page 480

China steel, iron ore: A new year, a new bubble – by Clyde Russell (Daily Mail/Reuters – January 17, 2017)

January 18, 2017

http://www.dailymail.co.uk/

LAUNCESTON, Australia, Jan 17 (Reuters) – The new year has started with something familiar from the last – a bubble in Chinese iron ore and steel prices.

The most-traded iron ore contract on the Dalian Commodity Exchange leapt by as much as 8 percent on Monday, in the process reaching a three-year high of 657.5 yuan ($95.29) a tonne.

Its gain so far this year is about 18 percent and the contract is around four times higher than the low reached in July 2015. It’s much the same story with Shanghai steel rebar, the benchmark construction grade, which gained 5.2 percent on Monday and is up about 16 percent since the start of the year.

[Australia mining tax] Expert panel needed to prevent misuse of DPT by ATO, mining body says – by Joanna Mather (Australian Financial Review – January 18, 2017)

January 18, 2017

http://www.afr.com/

A panel of independent experts should be given responsibility for overseeing the application of the Diverted Profits Tax to prevent misuse of the “harsh” measure by the Australian Tax Office, the mining sector says.

New laws due to come into force on July 1 will give the ATO additional powers to go after multinationals that it suspects are diverting profits offshore and therefore minimising how much tax they pay in Australia.

If the ATO determines that the DPT applies, income tax will be payable on the amount of the “diverted profit” at a rate of 40 per cent. The company accused of avoiding tax must pay the final DPT assessment within 21 days and has no right of appeal until later in the process.

Brazil tips Samarco restart in two months – by Daniel Palmer (The Australian – January 18, 2017)

January 18, 2017

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

The Brazilian government has tipped operations at the Samarco mine to resume in two months, although confidence has been tempered by part-owner BHP Billiton noting its timeline remained unchanged.

The joint venture of BHP and Brazil’s Vale has been offline since the tragic collapse of an iron ore tailings dam in Bento Rodrigues in November 2015 killed 19 people and all but wiped out several small communities.

Questions have been raised around whether Samarco would ever restart, although BHP said last month it hoped to resume mining at some stage in 2017.

King Solomon’s mines: Israeli archaeologists say fortified trading post a sign of his wealth, power – by Jamie Seidel (News Corp Australia Network – January 18, 2017)

January 18, 2017

http://www.news.com.au/

ARE these the gates to King Solomon’s mines? Archaeologists in Israel have uncovered a fortified trading post dating to the earliest days of the ancient Jewish state. Researchers from Tel Aviv University have uncovered what they call an ‘advanced’ military fortification in the Timna Valley, in Israel’s south.

It’s a site that’s long been associated with the legend of King Solomon’s mines. Dating techniques indicate the structure, and the cluster of copper smelting camps it protects, is about 3000 years old. That puts it squarely in the era of stories attribute to Solomon’s and King David’s reign.

Biblical archaeologists are elated: “The historical accuracy of the Old Testament accounts is debated, but archeology can no longer be used to contradict them,” says archaeologist Dr Erez Ben-Yosef, one of the research teams’ leaders. “On the contrary, our new discoveries are in complete accordance with the description of military conflicts against a hierarchical and centralised society located south of the Dead Sea.”

Rio Ends Quest for China Mine Riches With Biggest Holder – by David Stringer (Bloomberg News – January 18, 2017)

January 18, 2017

https://www.bloomberg.com/

Rio Tinto Group and its largest shareholder Aluminum Corp. of China have terminated their joint venture established to find copper deposits, as global mining companies tighten exploration budgets.

Chinalco Rio Tinto Exploration Co., a joint venture between Rio and Aluminum Corp., also known as Chinalco, was launched in 2011 to seek out deposits in China and had plans to expand its search to coal and potash.

“The joint venture exploration company has ceased operation and entered the liquidation phase,” Chinalco said in an e-mailed statement.

Philippines cancels permits of four more mining projects in green campaign – by Enrico Dela Cruz (Reuters U.K. – January 18, 2017)

January 18, 2017

http://uk.reuters.com/

MANILA – The Philippines has canceled the environmental permits for four more mining projects, including one planned nickel venture, as the world’s top nickel ore supplier deepens a months-long crackdown on the resources sector.

The Southeast Asian nation has been reviewing hundreds of environmental compliance certificates (ECCs) including those granted to mines. That is separate from an environmental audit of the country’s 41 operating mines whose results are set to be released on Jan. 31.

The four revoked ECCs include one for Norwegian firm Intex Resources’ proposed $2.5-billion nickel mine on Mindoro island in the central Philippines. Environment and Natural Resources Secretary Regina Lopez told a media briefing the project would damage the environment as it would be located on a watershed.

Brexit Plus Trump Have Sent Gold on a January Winning Streak – by Thomas Seal and Ranjeetha Pakiam (Bloomberg News – January 17, 2017)

January 17, 2017

https://www.bloomberg.com/

If you think the new year is a time of optimism and hope for the future, then you haven’t been watching gold.

Bullion has risen every day except one in 2017, evidence that investors are pricing in a rocky year ahead. U.K. Prime Minister Theresa May confirmed Tuesday that she’ll leave the European Union’s single market while seeking a new arrangement on the customs union. Donald Trump is just three days away from being sworn in as the next U.S. president.

“As the inauguration of Trump draws close, I think people are realizing that potentially this could be a very stormy presidency and gold may well benefit from that,” said David Govett, an analyst at Marex Spectron Group Ltd. in London. “There is new money at the beginning of each year looking for a home and a lot of this seems to find its way into gold.”

TVA Board Vacancies Raise Possibility of Coal-Policy Shift – by Cameron McWhirter (Wall Street Journal – January 17, 2017)

January 17, 2017

http://www.wsj.com/

Environmental groups worry Trump appointees will slow authority’s move away from the fossil fuel

President-elect Donald Trump is poised to bring in new leadership to the Tennessee Valley Authority, prompting concerns that the nation’s largest public power company could be in for a strategy shift.

After Mr. Trump won, the renomination of three of the utility’s board members, including its chairman, stalled in the Senate confirmation process and their terms expired on Jan. 2. The three Obama-appointed board members had been proponents of moving the utility away from coal-fired power to other energy sources such as natural gas and nuclear.

Joe Ritch, a lawyer from Huntsville, Ala., who had been on the board since 2013 and chairman since 2014, said he was surprised by the Senate’s reluctance to reconfirm him and two other board members, and suspected new appointees could be much more pro-coal.

Rio Tinto lifts iron ore shipments 3pc, but copper falls short – by Daniel Palmer and Matt Chambers (The Australian – January 17, 2017)

January 17, 2017

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

Rio Tinto has missed 2016 copper production guidance because of problems at Indonesian, US and Mongolian mines, resulting in an uncertain production outlook for this year, just as prices of the industrial metal show signs of recovery.

In its fourth quarter production report released this morning, the mining giant (RIO) logged full-year mined copper production of 523,300 tonnes, up four per cent from 2015 but missing already reduced guidance of between 535,000 and 565,000 tonnes. In October, guidance was cut from 545,000 to 595,000 tonnes.

Iron ore production from Rio’s big Pilbara-region mines in Western Australia performed in line with guidance and expectations.

Chile to invite bids on value-added lithium tech in April – by Rosalba O’Brien and Felipe Iturrieta (Reuters U.S. – January 17, 2017)

January 17, 2017

http://www.reuters.com/

SANTIAGO – Chile will hold a tender in April to encourage companies to use its vast lithium resources to move it up the value chain with cathode or battery production, the head of the country’s development agency told Reuters on Tuesday.

It is pressing ahead on deals with international firms as relations remain bitter with local lithium producer SQM SQM_pb.SN, where royalties arbitration is expected to take at least another year, said Eduardo Bitran, executive vice president of Corfo, which manages Chile’s lithium leases.

The price of lithium, a rare bright spot in commodities, has rocketed in recent years and is expected to continue to rise alongside demand. Lithium plays a small but essentially irreplaceable part in powering electric car batteries.

Miners Restored A Few Of Aussie’s Richest In 2016 – by Tim Treadgold (Forbes Magazine – January 16, 2017)

January 17, 2017

http://www.forbes.com/

No metal is as boring as zinc, the stuff used to galvanize (rustproof) steel, but don’t say that to Ivan Glasenberg, because zinc has played an important part in helping boost his fortune by $3 billion over the past ten months.

Glencore, the mining company in which Glasenberg has the biggest personal stake, 1.2 billion shares (8.42%), is one of the world’s biggest producers of zinc from mines in Asia, Africa, Australia and Canada. Since hitting the bottom at 66 cents a pound early last year, the price of zinc has rebounded by 75% to $1.16 a pound and got as high as $1.27 a pound just before Christmas.

The price recovery, largely triggered by the closure of old mines and mothballing of unprofitable projects, helped Glencore’s share price rocket up by 300% on the London Stock Exchange from 72 pence (88 cents) at this time last year to recent sales at £2.90 ($3.57).

[Australia mining tax] GST carve-up must reward policy that promotes growth – by Brendan Pearson (The Australian – January 16, 2017)

January 16, 2017

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

In 1958 British novelist Kingsley Amis wrote a short story called The 2003 Claret in which the protagonists contemplate the utility of a time machine that would enable them to test the ageing qualities of particular wine.

Such a device would be handy in today’s world. It could be used to test the relative effects of public policy proposals. It could, for example, assess the impact of the proposal by West Australian Nationals leader Brendon Grylls to impose a $3 billion a year tax on selected iron ore producers.

My sense is that a research team sent into the future to examine its effects would come back with a grim report card. But you don’t need to take my word for that.

Acacia Jumps in London on $4 Billion Endeavour Merger Talks – by Thomas Biesheuvel and Thomas Seal (Bloomberg News – January 16, 2017)

January 16, 2017

https://www.bloomberg.com/

Acacia Mining Plc jumped to the highest in almost two months after the gold miner confirmed it is in early-stage talks with rival Africa-focused producer Endeavour Mining Corp. about a possible merger of the two companies which have a combined value of about $4 billion.

Acacia, which mines the precious metal in Tanzania, rose 4 percent to close at 435 pence in London, the highest since Nov. 21, after earlier rising as much as 7.7 percent.

After the close of trading in London on Friday, Acacia said it was in “discussions regarding a possible combination” with Endeavour. Bloomberg News earlier reported that day the companies were exploring a merger, citing people familiar with the talks. Toronto-listed Endeavour confirmed on Friday it had held discussions with Acacia that “may or may not result in agreement of a transaction.”

A pig of a project: Africa’s largest iron-ore deposit has tainted all who have touched it (The Economist – January 14, 2017)

January 16, 2017

http://www.economist.com/

ON THE flanks of the Simandou mountains in south-eastern Guinea live remote colonies of West African chimpanzees. They alone should be grinning over the fate of those who have sought to turn their tropical habitat into Africa’s biggest iron-ore mine. No one else is laughing.

Rarely has such a group of billionaires, hedge-fund barons, mining firms, government officials and go-betweens been snagged in such a woeful saga. In theory, the prospect of digging up 2bn tonnes of ore from a country that is among the poorest on Earth should be encouraging, if corruption is kept in check.

The government of Alpha Condé promised to do so upon taking office in 2010. But in reality the line between paying go-betweens to help win concessions and lining officials’ pockets is so blurry that it can cause mining firms endless trouble.

Atlas Copco to split group, company veteran Rahmstrom named new CEO – by Johannes Hellstrom (Reuters U.S. – January 16, 2017)

January 16, 2017

http://www.reuters.com/

STOCKHOLM – Sweden’s Atlas Copco (ATCOa.ST) said it would split into two listed companies in 2018, forming an industrial business and a separate mining and civil engineering firm whose equity would be distributed to the same shareholders.

Atlas Copco also appointed Mats Rahmstrom, currently head of its Industrial Technique business, as chief executive from April. Rahmstrom replaces Ronnie Leten, who turned 60 last year, and is stepping down after eight years.

Atlas Copco will concentrate on industrial customers, while the new company, with the working name NewCo, will focus on mining and civil engineering. Rahmstrom, who has been with the company for almost 30 years, will stay with the larger and more profitable industrial business when the split takes place.