International Media Resource Articles – Page 587

The Mine Wars: West Virginia’s Coal Miners March on Public Television – by Mark Hand (CounterPunch.org – January 20, 2016)

January 20, 2016

http://www.counterpunch.org/

In the 1980s, writer Denise Giardina’s “Storming Heaven” offered a wide-ranging portrait of southern West Virginia’s coal camps, while film director John Sayles’ “Matewan” focused on one of the defining moments in the long-running battle between the state’s coal industry and its workers. One was a novel and the other one was a low-budget movie drama. And yet both storytellers filled a hole in research that professional historians had neglected to cover for more than half a century.

Miners and their family members, who had kept quiet for decades, gradually found the courage to speak out. Since the release of Storming Heaven and Matewan, numerous other books, films and articles have been produced about this important period in the nation’s industrial and labor history.

SEEKING CURES IN KENTUCKY COAL MINES – by Jessica Firger (Newsweek Magazine – January 20, 2016)

January 20, 2016

http://www.newsweek.com/

The Matrix Energy Mine No. 1 in eastern Kentucky stretches 7 miles to its deepest point. Tiny cars creak along tracks laid on the ground in the bowels of the operation, opened in 2004, and miners here collect 4,500 tons of coal each day.

But Jon Thorson, a professor of pharmaceutical sciences at the University of Kentucky and director at the Center for Pharmaceutical Research and Innovation, isn’t all that interested in fossilized carbon. He believes the true value to be found in the mine lies in the soil and rocks. Thorson is digging for blockbuster drugs.

Natural medicine is often associated with ancient civilizations or bogus alternative treatments endorsed by celebrities. However, unique compounds in plants, soil and the sea have played a major role in modern treatments for conditions ranging from bacterial infections and malaria to high cholesterol and cancer. According to one study, as much as 50 percent of drug compounds on the market have their origins or are structurally based upon some type of natural product.

Bauxite in Malaysia: The environmental cost of mining (BBC News – January 19, 2016)

January 20, 2016

http://www.bbc.com/

Bauxite mining has become a controversial political issue in Malaysia. As the government implements a temporary ban on extracting the aluminium ore, BBC South-East Asia correspondent Jonathan Head visits the most-affected area.

Amid the monotonous dark green lines of Malaysia’s endless palm oil plantations, there are now vivid red gashes in the hills behind the east coast town of Kuantan. These have appeared only in the past 18 months, as a frenzy of open-cast bauxite mining gripped Pahang province.

Tonnes of bauxite are being transported out of the region. It is the world’s main source of aluminium so is vital for the construction of everything from airplanes to saucepans and cooking foil.

Iron Ore Mining Giants Cool Supply Growth as Next Wave Builds – by David Stringer and Jasmine Ng (Bloomberg News – January 19, 2016) http://www.bloomberg.com/

January 20, 2016

http://www.bloomberg.com/

The surge in output from Australia’s two biggest iron ore producers is slowing as they complete $24 billion in expansions wagered on increasing demand from China’s mills. As steel output declines in China, the next wave of supply from miners who’ve made the same bet is likely to keep prices under pressure.

While Rio Tinto Group and BHP Billiton Ltd., the world’s No. 2 and No. 3 exporters, predict supply growth will slow this year, iron ore’s collapse may not reach its nadir until 2017 as material continues to be added from new operations in Brazil and Australia, according to CRU Group.

The consultancy estimates average benchmark iron ore will remain broadly flat over the next two years at around $40 a metric ton. The steelmaking ingredient trades at less than a quarter of its 2011 peak, and last month touched a new low of $38.30 in daily prices dating to 2009.

Rio Tinto eases off its iron ore expansion – by Matt Chambers (The Australian – January 20, 2016)

January 20, 2016

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

Rio Tinto has signalled it will temporarily take its foot off the iron ore production accelerator this year, issuing below-expectation guidance that raises doubts about recent West Australian production targets.

The guidance, a surprise inclusion in Rio’s December-quarter production report yesterday, comes as iron ore prices languish near $US40 a tonne after suffering a 70 per cent drop during 2014 and 2015.

The dual-listed mining giant yesterday said it planned to produce 350 million tonnes of iron ore this year from its Pilbara region and Canadian iron ore mines (including the equity share of its partners), up from 327 million tonnes last year but down on market expectations of 355 million tonnes.

Mining giant BHP pessimistic on iron ore, coal prices in next few years – by Sonali Paul (Reuters U.S. – January 20, 2016)

January 20, 2016

http://www.reuters.com/

MELBOURNE – BHP Billiton flagged on Wednesday that it sees no recovery in iron ore or coal prices in the next few years, while holding out hope for a rebound in copper and oil as it fights slumping earnings set to hit its long-protected dividend.

The top global miner reinforced the bleak outlook for most commodities in the near term, with markets slammed by oversupply as the economy slows in China, the world’s biggest metals consumer.

In a sign the company may cut its dividend, ending a long-held policy to maintain or raise its payout every year, BHP Chief Executive Andrew Mackenzie said in a quarterly production report that it was focused on defending its investment grade credit rating.

Slow Suffocation of the US Mining Space – by Christopher Ecclestone (Investorintel – January 19, 2016)

January 20, 2016

http://investorintel.com/

The old adage about the frog in the boiling water slowly getting cooked without jumping out is a good metaphor for the mining industry in the US over the last 12 months.

While the big story in commodity circles has been the oil price decline, a far more potent force has been the currency moves. The rampant US dollar has “saved” the bacon of many a miner in Australia, Canada, South Africa and elsewhere while brutally pressure-cooking those that are focused on the mining space in the US.

The chart above sourced from US Global Investors shows the last twelve months’ move in the gold price in various currencies. The USD gold price is clearly the laggard while Brazil has been stellar. It’s a pity there are not more Brazilian gold mining opportunities on offer. Ironically the strength of the Real for the preceding five years meant that Brazil was not such a good place for junior explorers to spend their drilling dollar.

Head of Freeport’s Indonesian Unit Resigns – by Ben Otto (Wall Street Journal – January 18, 2016)

January 19, 2016

http://www.wsj.com/

JAKARTA, Indonesia—The head of Freeport-McMoRan Inc.’s Indonesian operations resigned Monday, rejecting what he said was a contract extension offer as his one-year contract expired.

Maroef Sjamsoeddin, head of PT Freeport Indonesia, said in a memo to employees that he had submitted his resignation after a year of leading the company, one the largest miners in Indonesia and a vital piece of Freeport’s global business.

Richard Adkerson, Freeport-McMoRan’s vice chairman, president and chief executive, said in an email to employees that Mr. Sjamsoeddin had resigned for personal reasons, effective immediately. He thanked Mr. Sjamsoeddin for his service.

Battered gold miners mount charm offensive to sell executive pay – by Susan Taylor and Nicole Mordant (Reuters U.S. – January 18, 2016)

January 19, 2016

http://www.reuters.com/

TORONTO/VANCOUVER – Gold mining companies are running a charm offensive with their biggest shareholders on the thorny issue of executive pay, keen to hold onto investors angry about ongoing generous compensation after four years of dire stock returns.

Stung by a reprimand from disgruntled shareholders in proxy votes last year, some miners are meeting investors earlier than ever to win support for compensation plans months ahead of spring ‘say-on-pay’ votes.

Largely abandoned by generalist funds after a 44 percent drop in gold prices and 70 percent slump in stock values since 2011, the mining firms are desperate to avoid a further exodus of sector-focused funds.

Iran Set to Pump More Oil Into Market Glut – by Clifford Krauss and Stanley Reed (New York Times – January 18, 2016)

January 19, 2016

http://www.nytimes.com/

HOUSTON — With international sanctions lifted, the Iranian government called on its oil industry Monday to open the taps on production, a move that could add to a global glut of crude that has sent prices into a tailspin.

Benchmark prices edged further below $30 a barrel as traders considered the prospect of new oil flowing into a global market already oversupplied by one million barrels a day, roughly enough to fuel the needs of every driver in a state the size of Pennsylvania or Ohio.

Iranian news organizations quoted Rokneddin Javadi, the deputy oil minister, as saying Iran was ready to add 500,000 barrels a day to its output. But some oil analysts doubt the Iranians can deliver all the production they promise.

Australia’s Small Mining Towns Are Running Out of Water – by James Paton (Bloomberg News – January 18, 2016)

January 19, 2016

http://www.bloomberg.com/

The Australian mining town of Broken Hill is preparing for a future that doesn’t depend on silver and zinc, but there’s one resource it won’t be able to live without: water.

The prospect of that commodity running out has sparked concern in the remote community more than 1,110 kilometers (680 miles) west of Sydney. The city of 19,000 people exhausted its supply of water that can be treated conventionally, forcing it this month to turn on a desalination plant to process the salty remains. Water flowing into the Menindee Lakes, the city’s key source, is at a record low amid an El Nino-induced drought.

Broken Hill’s plight underscores the vulnerability of Australia, the world’s driest inhabited continent, and the investment needed to secure water for Outback communities.

Rio Tinto continues to push up iron ore output – by Renée Schultes (Financial Times – January 19, 2016)

January 19, 2016

http://www.ft.com/

Sydney – Rio Tinto increased production of iron ore 11 per cent last year to a new record and is forecasting a further 6.8 per cent rise to 350m tonnes in 2016, despite the collapse in the price of the key steel ingredient.

Sam Walsh, chief executive of the Anglo-Australian miner, which last week said it would freeze pay for all staff this year, on Tuesday acknowledged the challenging market. He said the company would “continue to focus on disciplined management of costs and capital to maximise cash flow generation throughout 2016”.

The world’s second-largest iron ore producer shipped 336.6m tonnes of iron ore last year after mining 327.6m tonnes and selling 9m tonnes from stockpiles. It said bulk inventories were now largely exhausted.

Congo cobalt mined by children may be in your mobile phone – Amnesty – by Aaron Ross (Reuters U.K. – January 19, 2016)

January 19, 2016

http://uk.reuters.com/

KINSHASA – Cobalt used in batteries for phones, laptops and electric vehicles could come from mines in Democratic Republic of Congo that use child labour, an Amnesty International report said on Tuesday.

Working with campaign group African Resources Watch (Afrewatch), Amnesty accused technology giants including Apple, Samsung SDI and Sony of lax oversight of the supply of cobalt from mines in Congo to smelters and on to battery-makers.

As a result, consumer products sold across the globe could contain traces of the metal produced each year by informal Congolese mines without companies knowing, the report said.

Gold miners say output has peaked as losses reshape the industry – by James Wilson (Financial Times – January 17, 2016)

January 18, 2016

http://www.ft.com/

Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices.

The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.

Kelvin Dushnisky, president of Barrick Gold, the world’s largest gold miner by annual output, said: “Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook.”

The real Deadwood: The South Dakota town made famous by the hit TV show – by Peter Fish (Sunset.com – 2006)

January 18, 2016

http://www.sunset.com/

This is a tale of two cities. The first is a mining camp in the Black Hills, where greed, lust, and violence kindle in such volatile combinations, you think they may burn the whole town down. The second is a tourist attraction whose tidy Main Street throngs with tourists jingling the quarters they won in the casino slots.

The first town is Deadwood, Dakota Territory, in 1876, as experienced on the HBO series Deadwood. The second is Deadwood, South Dakota, as experienced in real time in 2006. The genuine and virtual towns have become inseparable. It’s Deadwood’s real history that made the television series possible. It’s the television Deadwood that is breathing new life into the real town ― proving that in 2006, some juicy Western history can be as valuable as gold.

For proof of that statement, you can ask Mary Kopco. Director of Deadwood’s Adams Museum & House, she was in her office when someone from Hollywood phoned to gather facts about her town. How much would a miner’s pick have cost in 1876? What about a gold pan?