International Media Resource Articles – Page 617

Africa’s mining sector is under (re)construction – by Nastassia Arendse (Mineweb.com – October 19, 2015)

October 20, 2015

http://www.mineweb.com/

Key elections will lay out the roadmap for the future of mining.

2015 has been eventful for African democracy and leadership transitions and it will continue to be well into the year 2016. Not every desk-based investor wants to deal with social instability, coups and state disintegration. Democratic transitions in African countries will have an impact on the stability of the environment in which mining companies have to operate.

The slowdown in China as the country shifts to a consumer led model has prompted many resource rich African countries to re-evaluate their dependency on Chinese demand. The weak performance in commodities has prompted mining companies to cut investments in even the most resource-rich countries. Voters and investors are focusing on what measures governments will take to shore up their economies.

The prospects of job losses haunt Africa countries ahead of forthcoming elections which are due to take place in countries such as Burkina Faso, Central African Republic (CAR), Côte d’Ivoire and Tanzania – to name but a few.

“Looking beyond 2015, the Democratic Republic of the Congo (DRC) and the Republic of Congo will be in focus.

Iron ore competition runs hot as Vale hits production record – by Amanda Saunders (Sydney Morning Herald – October 20, 2015)

October 20, 2015

http://www.smh.com.au/

Australia’s iron ore wars may have died down but fierce global competition in the commodity has not, with Brazil this week clocking a new production record, and former Rio Tinto chief executive Tom Albanese starting exports from India after a three-year impasse.

Brazil’s Vale posted a quarterly production record of 88.2 million tonnes for the three months to September, despite pulling marginal tonnes out of the market. Productivity campaigns at its lower-cost operations helped offset the production cuts, edging its output 2.9 per cent higher than the period a year earlier.

Australia’s big two, Rio and BHP Billiton, also continue with their expansions, while Fortescue is running at about 165 million tonnes a year after a rapid three-year expansion.
Depressed iron ore prices have stabilised in recent weeks, trading around $US55 a tonne, after months of wild volatility. Iron ore has averaged about $US60 a tonne this year.

Glencore woes cast shadow over coal M&A – by Sarah McFarlane (Reuters U.S. – October 20, 2015)

October 20, 2015

http://www.reuters.com/

BARCELONA – Oct 20 Glencore’s efforts to reduce debts to turn around its share price will limit its ability to do deals on coal assets and its absence is expected to slow consolidation in the depressed sector.

As the largest shipper of thermal coal, Glencore has been omnipresent in deals concerning assets in the sector, where a glut of supply has sent prices to multi-year lows, prompting expectations for a wave of consolidation among miners.

This changed in September, however, when Glencore succumbed to shareholder pressure and announced plans to reduce its debt to $20 billion from the current $30 billion, including a share issue and asset sales.

“Glencore, if they had been financially powerful, would have accelerated the consolidation of the thermal coal industry,” a trader at a mining company said.

Glencore declined to comment on its ability to make acquisitions.

Indonesia’s Nationalism – by Neil Chatterjee (Bloomberg News – October 19, 2015)

October 20, 2015

http://www.bloombergview.com/

Indonesia has been plundered since the Dutch collected nutmeg and cloves from the archipelago they called the East Indies 400 years ago. With treasures strung across 17,000 islands, it’s home to the world’s largest gold mine and exports the most power-station coal, palm oil and tin.

Indonesia’s identity was forged by a half-century of sometimes savage dictatorship that sold its riches overseas. Now the country wants to keep more of its wealth at home. The pull of protectionism has characterized the presidency of Joko Widodo, who came to power in October 2014 as the country’s second freely elected leader.

A rising tide of economic nationalism is threatening to undo the formula that for many years brought much-needed investment to the world’s fourth-most-populous nation and its 250 million people.

The Situation

Widodo, better known as Jokowi, represents a new generation of Indonesian politicians: a self-made furniture seller and can-do bureaucrat focused on cutting graft and red tape.

Russia may face with shortage of gold and strategic commercial minerals during next 20 years – by Eugene Gerden (InvestorIntel.com – October 19, 2015)

October 19, 2015

http://investorintel.com/

Russia may face with a shortage of gold and some other strategic commercial minerals during the next 20 years, which is mainly due to the decline of the volume of exploration works in the country in recent years.

In the case of gold, the predicted growth of gold production in Russia up to 350 tonnes per year may result in the gradual depletion of gold reserves in Russia already by 2035, taking into account even projected resources.

This will be mainly due to lack of attention to the technological aspects of gold production in Russia, as well as the reduction of exploration works in recent years, because of the economic crisis in the country.

In the case of production methods, due to poor technologies, the losses of gold during ore processing usually reach 27%.

Iran to Seek Bids on 15 Mining Deals as Gold Supply on Rise – by Hashem Kalantari (Bloomberg News – October 19, 2015)

October 19, 2015

http://www.bloomberg.com/

Iran will seek bids for 15 mining projects for international investors to develop, with production of zinc to gold and iron ore seen getting a boost with the end of sanctions.

President Hassan Rouhani plans to visit France and Italy in November to sign development agreements on some of the projects, according to Mehdi Karbasian, deputy minister of Iran’s Ministry of Industries, Mines & Trade, said in an interview in Tehran. Tenders to develop the 15 projects should be issued within the next four months, with the first one proposed in October to build the Neekouyeh gold mine west of Tehran, he said.

Iran’s gold production is forecast to triple from 2013 to 10,000 kilograms (321,507 troy ounces) by next year, with iron ore, steel, chromite, aluminum , bauxite, copper and zinc output also growing, according to the U.S. Geological Survey.

How technology is going to impact on deep level mining in South Africa – by Dr. Declan Vogt (Mineweb.com – October 18, 2015)

October 19, 2015

http://www.mineweb.com/

A Mineweb Op-Ed exclusive by Dr Declan Vogt from the Wits School of Mining Engineering.

Johannesburg: Our deep level gold and platinum mines are in trouble. At today’s prices, most are not profitable. There are many explanations for the high cost: mines are getting deeper, infrastructure is old, and energy and labour costs exceed inflation. Given that we have little control over the price of the commodities, the only solution is improved productivity.

In many other industries, technology has enabled huge strides in productivity. Even in South Africa, almost all underground coal mining is now mechanised. So what about deep-level hard rock?

Technically, our orebodies present a challenge. Both the Witwatersrand and the Bushveld orebodies are hosted in very hard rock – quartzite and shales, or norites and anorthosites. The ore itself is also hard and abrasive, so rock cutting is not economic at present.

Cliffs CEO: Essar jeopardizes Range facility- by Bill Hanna (Mesabi Daily News – October 17, 2015)

October 19, 2015

http://www.virginiamn.com/

‘If they go online, I will shut down a plant the same day’ Vuppuluri: ‘Very sad and pained to hear such a statement’

CLEVELAND — The Cliffs Natural Resources CEO said he will close one of the company’s operations on the Iron Range if the Essar Steel Minnesota taconite plant in Nashwauk goes into production.

“If they go online, I will shut down a plant up there the same day,” Lourenco Goncalves said in an exclusive interview with the Mesabi Daily News last Thursday. “We have fully planned for the worst case scenario.”

Essar Minnesota CEO Madhu Vuppuluri said in response on Saturday that he is “very saddened to hear that statement that could have such an impact on employees and communities of the Iron Range.”

The $1.9 billion India-based Essar project under construction is scheduled to begin producing taconite pellets in the second half of 2016, most likely the third quarter.

Sumitomo Faces Possible Loss on Nickel Project – by Atsuko Fukase (Wall Street Journal – October 16, 2015)

October 19, 2015

http://www.wsj.com/

Commodities slump has hammered profits and stock prices at many global traders and producers

TOKYO– Sumitomo Corp. faces a potential loss on its multibillion-dollar stake in a Madagascar nickel project, as the global commodities slump takes a heavy toll on Japanese trading houses.

Japanese firms that invested in oil, iron ore and other commodities have booked billions of dollars in losses over the past year and likely face more to come as a result of the long slide in global energy and commodities prices, analysts say.

Sumitomo, Japan’s fourth-largest trading house by revenue, will likely be forced to take a loss on the Madagascar project because nickel prices have dropped below the cost of production, said Akira Morimoto of SMBC Nikko Securities. Nickel prices are near a six-year low.

A Sumitomo spokesman said Friday that the company’s risk exposure to the project is about $2.4 billion, and it would consider whether to book a write-down based on mid- to long-range price projections and production plans.

Megafactory trend sparks ‘arms race’ in battery sector – by Simon Rees (MiningWeekly.com – September 29, 2015)

October 26, 2015October 19, 2015

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

TORONTO (miningweekly.com) – Tesla Motors’ so-called ‘gigafactory’ has sparked an “arms race” in the battery sector, Benchmark Mineral Intelligence MD Simon Moores told an audience attending the Toronto leg of the company’s World Tour 2015, in which Mining Weekly Online participated.

The gigafactory, now being built in Nevada, was designed to meet Tesla’s future battery requirements, either for electric vehicles (EV) or its Powerwall and Powerpack technologies.

“Battery majors, such as LG Chem or Samsung, have all responded with expansion plans for their new plants. Companies like BYD are also building their own battery plants. Boston Power is looking to expand, while Foxconn said they were going to enter battery manufacturing,” Moores stated.

“The megafactory trend is one the battery industry has not seen before. This is not an industry saying it expects to expand by 10% or 20% over the next three years – it’s at an order of magnitude that’s much bigger,” he added.

Rio Tinto Pares Output of Less-Sparkling Niche Commodities – by Rhiannon Hoyle (Wall Street Journal – October 16, 2015)

October 16, 2015

http://www.wsj.com/

Mining giant cuts back production of diamonds and salt amid weakness in commodity markets

SYDNEY— Rio Tinto PLC’s shipments of iron ore have surged, although the mining giant is dialing back production of some niche commodities such as diamonds and salt amid broad-based weakness in commodity markets.

Mining companies around the world have been put on the back foot by slumping prices for natural resources from gemstones to copper and coal thanks to ample global supplies and slowing economic growth. In some sectors, companies have pared output in the hope markets would rebalance, while in others miners have raced to cut costs with the aim of riding out the downturn.

On Friday, Rio Tinto said it has decided “to pause final product processing in the fourth quarter at Argyle in light of current market conditions.”

Rio Tinto’s Argyle operation in the remote East Kimberley region of Western Australia is one of the world’s largest diamond mines and the biggest supply of natural-colored pink and red diamonds.

Glencore likely to cut back nickel production, says analysts – Paul Ploumis (Scrap Monster.com – October 14, 2015)

October 16, 2015

http://www.scrapmonster.com/

After copper and zinc, Glencore may now announce production cut in Nickel, says analysts.

SEATTLE (Scrap Monster): According to analysts speculations, Glencore may cut back Nickel production. The company had earlier announced cuts to its copper and zinc production.

Gavin Wendt, analyst at Minelife commodities noted that cut in nickel output is likely to save millions of dollars for the company and lift the prices of the metal in the process. Production cut by Glencore will have immense impact on global nickel market and could lead to a rally in beaten-up nickel prices, he added.

According to UBS analyst Daniel Morgan, not many nickel miners have resorted to production cuts when compared with other commodities. The notable cut in production so far has come from Canadian Sherritt International Corp. which reduced its nickel production targets in July from earlier estimate of 80,000-86,000 tonnes to 78,000-82,000 tonnes. He added that nearly 50% of the world’s nickel production is at loss at today’s price. Moreover, LME warehouses hold excessive nickel inventory levels of 440,000 tonnes as on date.

How a new battery revolution will change your life – by David J. Unger (Christian Science Monitor – August 30, 2015)

October 26, 2015October 16, 2015

http://www.csmonitor.com/

A new generation of super cells promises to reshape the future of energy.

CAMBRIDGE, MASS.; AND ARGONNE, ILL. — It’s probably safe to say that freshman chemistry rarely ranks among college students’ most memorable courses. An overcrowded lecture hall teems with 18-year-olds with chins propped on palms. Eyelids droop at the mere mention of Planck’s constant or Bohr’s model of hydrogen. Yawns abound.

So when Donald Sadoway began teaching introductory chemistry at the Massachusetts Institute of Technology in Cambridge in 1995, he wanted to liven things up. Sure, he still lectured on the properties of atomic arrangements in crystalline and amorphous solids, but he did it an unusual way: He peppered his presentations with chemistry jokes only an MIT undergrad would understand and wove literature and art into the rigid lines and squares of the periodic table.

A lifelong music lover, Dr. Sadoway paired each lecture with a relevant tune. He’d play Handel’s “Water Music” in a lecture on hydrogen bonding and Aretha Franklin’s “Chain of Fools” in a class on polymers. For DNA – that famous double-helix spiral – he’d play Hank Ballard’s version of “The Twist.”

Miners can exploit opportunities in alternative energy – by Prinesha Naidoo MoneyWeb.com – October 16, 2015)

October 16, 2015

http://www.moneyweb.co.za/

And learn from past failures.

JOHANNESBURG – South Africa’s mining directors did not act fast enough in response to the country’s energy challenges. That’s according to Thomas Garner, CEO of Cennergi, an independent power producer.

Participating in a panel discussion about the energy crisis and changing energy mix at the Joburg Indaba, Garner said the stability of the country’s electricity supply had been flagged as a risk since the mid-2000s: “We predicted that electricity prices would treble and no one believed us”.

At that stage, electricity was never listed as a massive risk or even one of the top five risks to industrialisation in South Africa due to Eskom’s reliability and the fact that it was cheap to buy electricity from the utility, he said. And this, according to him, raises questions as to how directors with fiduciary responsibilities make decisions.

But fellow panelist and energy thought leader Mike Rossouw said the fact that “nobody knows what energy demand is going to be in the future” has profound implications for investing in growth.

Could lithium become the new oil? – by Vikram Mansharamani (PBS Newshour – October 15, 2015)

May 13, 2016October 16, 2015

http://www.pbs.org/

Vikram Mansharamani is a lecturer in the Program on Ethics, Politics & Economics at Yale University and a senior fellow at the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School.

I recently spoke with a group of Nigerian leaders who were visiting Yale. I expressed to them my confidence in the long-term outlook for oil demand. A booming middle class in the emerging markets, I argued, would consistently demand more fuels. They were engaged throughout my talk and cared about many different topics, but kept returning one.

“OK, but Vikram, what will oil prices be next year?” I answered honestly, “I don’t know.”

Several other questions came up, but then another person asked, “OK, very compelling presentation, thank you. But do you think oil prices will be higher or lower next year than they are today?” Again, I pleaded ignorance.

The process continued, and eventually, everyone was laughing about the persistent focus on oil prices.