International Media Resource Articles – Page 618

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.

[Minnesota] Gov. Dayton traveling to view best and worst of mining – by Josephine Marcotty (Minneapolis Star Tribune – October 15, 2015)

October 16, 2015

http://www.startribune.com/

His visits to Michigan and South Dakota are preparation for PolyMet decision.

Gov. Mark Dayton plans to visit two mines in other states — examples of good and bad environmental outcomes — as he prepares to decide whether Minnesota should move forward with a controversial project proposed by PolyMet Mining Corp. on the Iron Range.

The $650 million open-pit operation would be Minnesota’s first copper-nickel mine. It promises to bring some 300 to 350 jobs to northeastern Minnesota, but it also would bring unprecedented environmental risks to a region known for beautiful lakes and forests.

A 10-year environmental review of the project is due for completion in November, and shortly after that PolyMet is expected to apply for a permit to start construction. Dayton has called it “the most momentous, difficult and controversial decision I will make as governor.”

That’s why he is taking the unusual step of examining mines in other states on Oct. 27 and Oct. 30.

Indonesian battle over Freeport threatens to mar leader’s U.S. trip – by Randy Fabi and Wilda Asmarini (Reuters U.S. – October 16, 2015)

October 16, 2015

http://www.reuters.com/

Jakarta – Indonesian ministers are battling over control of U.S. mining giant Freeport-McMoRan’s future in the country, threatening to mar the president’s first trip to the United States later this month.

President Joko Widodo starts a five-day trip to Washington and San Francisco on Oct. 25, as investor sentiment in Southeast Asia’s largest economy brightens following a cabinet reshuffle and a series of new stimulus measures.

One of Widodo’s first stops will be with Freeport executives at a breakfast ahead of his meeting with U.S. President Barack Obama, according to a tentative schedule obtained by Reuters.

At the heart of talks will likely be Freeport’s years-long bid to renew its contract, allowing the firm to continue operating beyond 2021 at the lucrative Grasberg mine in Papua, one of the world’s biggest deposits of gold and copper.

Glencore’s Zinc Rationale Defies History – by Liam Denning (Bloomberg News – October 15, 2015)

October 16, 2015

http://www.bloomberg.com/

“You shut up!/No, YOU shut up!” is how schoolyard scuffles kick off. Miners tweak it slightly to: “You shut down!/No, YOU shut down!”

Ivan Glasenberg, the chief executive of Glencore, has long bemoaned miners’ tendency to literally dig themselves into a hole with too much supply. As concern about Glencore’s swollen debt has hit the stock price, Glasenberg has recently taken himself at his word, ordering a temporary shutdown of some of the company’s zinc output. That caused the price of the metal to jump 10 percent last Friday.

But history suggests Glencore’s fight to raise zinc prices sustainably could be a tough one. Taking yourself out of the market in order to reduce excess supply can be a great strategy— but primarily for those rivals who keep producing and benefit from higher prices while your own reserves stay in the ground.

Sure enough, this week the marketing chief at one of said rivals, BHP Billiton, confessed himself “quite intrigued” about all the talk of cutting production, as he hadn’t seen any capacity being shut-in that was making cash.

Alrosa president ‘concerned’ over synthetic diamonds – by Tom Davis (Jewellery Focus – October 15, 2015)

October 16, 2015

http://www.jewelleryfocus.co.uk/

Andrey Zharkov, president of Russian diamond mining company Alrosa, has warned that the diamond industry is suffering from reputation risks due to synthetic stones.

Speaking at the World Diamond Council (WDC) in Moscow on Tuesday, October 13, Zharkov said that the industry should be concerned by “growing occasions” on the market when natural diamonds are mixed with synthetic diamonds, or when “stones are worked on for the purpose of their improvement.”

Under a new Russian law “stones of synthetic origin, even having characteristics of natural stones, are not considered to be precious ones,” he said. “Therefore, the law determines that synthetic stones cannot be associated with precious stones.”

He said that Alrosa is conducting research into developing faster and more effective synthetic diamond detection devices. The WDC will play a more active role in defending and supporting the “favourable reputation and positive image of the diamond industry”, he said.

UPDATE 2-Rio Tinto lifts iron ore shipments despite China risks, draws on inventory – by James Regan (Reuters U.S. – October 16, 2015)

October 16, 2015

http://www.reuters.com/

SYDNEY, Oct 16 (Reuters) – Rio Tinto on Friday posted a 17 percent rise in third-quarter iron ore shipments and said it was on track to meet a full-year target of 340 million tonnes, shrugging off risks from slower economic growth and peaking steel output in China.

In a sign market conditions may be improving, the miner dipped into its inventories – 4 million tonnes from its Australian operations and 1 million from the Canadian business – after production fell short of shipments.

Rio Tinto shipped 91.3 million tonnes over the quarter, outstripping production of 86.1 million tonnes, data from the company’s quarterly production report showed.

“Clearly, the iron ore market is reasonably tight,” said Shaw Stockbroking mining analyst Peter O’Connor in a note to clients.

‘Keep on going’, urges Freeport chief – by Henry Sanderson and Neil Hume (Financial Times – October 15, 2015)

October 15, 2015

http://www.ft.com/

Copper miner CEO says tough decisions needed as low prices reign

“If you’re going through hell, keep on going.” That is how Richard Adkerson, chief executive of US copper miner Freeport-McMoRan, summed up sentiment at his company’s party to mark the end of LME Week in London.

The song by Rodney Adkins was an apt metaphor for this year’s annual gathering of miners, traders and smelters, who are dealing with commodity prices at their lowest levels since the financial crisis.

Miners and traders look forward to Freeport’s party every year, but Wednesday’s bash at the Intercontinental Hotel in Park Lane reflected the new austerity: gone were the oysters and the large arrays of sushi stations. Delegates picked at marshmallows dipped in chocolate instead.

One attendee reflected on the boom years, remembering how people would retire to private clubs nearby for all-night parties, providing their Chinese guests with lavish entertainment.

BHP says shutting down mines won’t help commodity prices – by James Chessell (Australian Financial Review – October 15, 2015)

October 15, 2015

http://www.afr.com/

A senior BHP Billiton executive has played down the impact of production cuts by miners such as Glencore, arguing that commodity prices will not be affected because most of the mines being shut down are unprofitable.

Asked if prices of key commodities such as copper would benefit from higher-cost “marginal” producers cutting back production, BHP marketing president Arnoud Balhuizen said it would not make a significant difference.

“I am quite intrigued by all the conversation about cutting down production because I haven’t seen any production being shut which is making cash,” Mr Balhuizen told journalists in London on Wednesday.

“So for me it is just a normal rational economic decision. If you have a cash negative operation you shut it but it doesn’t do anything for price. You should have done it anyway.”

COLUMN-Glencore changes the debate, but can it change the zinc market? – by Andy Home (Reuters U.S. – October 15, 2015)

October 15, 2015

http://www.reuters.com/

Oct 15 (Reuters) – Everyone’s talking about Glencore. The Swiss trading and mining giant is the hot topic of conversation in the myriad meetings and cocktail parties taking place in London for LME Week.

And, Glencore executives will be pleased to note, this isn’t speculation as to whether the company is about to go bust. That particular panic seems to have passed for now after a flurry of announcements intended to shore up its balance sheet, most recently the proposed sale of two copper mines.

Rather, it was Glencore’s announcement on Friday of massive cuts to its zinc and lead production portfolio that has been exercising the minds of the thousands of metal executives meeting in London this week.

The London zinc price went on a super-charged rally on the news, exploding from its opening at $1,701 per tonne to $1,875 in a matter of hours. As with last month’s announcement of 400,000 tonnes of copper cutbacks, the timing was exquisite, catching off guard a market that had been grinding steadily lower for months under the weight of relentless short selling.

BookFilter: Homer Hickam, The Author Whose Story Inspired “October Sky,” Soars Again – by Michael Giltz (Huffington Post – October 14, 2015)

October 15, 2015

http://www.huffingtonpost.com/

Best-selling author Homer Hickam has enjoyed a varied and acclaimed career, ranging from decorated Vietnam veteran to scuba instructor to working as an aerospace engineer at NASA where he contributed to spacecraft design and crew training. Hickam even had a satisfying creative outlet in a stream of magazine articles capped by an honest-to-goodness military history hit about U-boats attacking the US coast during World War II. Called Torpedo Junction, it was published by the Naval Institute Press (the first home of Tom Clancy), got great reviews and is still in print today.

But all that is dwarfed by the Cinderella story of his first memoir. It began as an article commissioned by the relatively obscure Air & Space/Smithsonian magazine in 1995. Hickam talked about growing up as a kid in coal mining country and how Sputnik inspired he and his friends to start shooting off rockets with gleeful abandon and scientific rigor, scoring a top prize at the national science fair when kids from coal mining towns never even went to science fairs.

Gold Analysts Split on Fed View as Rate Doubts Spur Volatility – by Luzi-Ann Javier, Eddie Van Der Walt and Ranjeetha Pakiam (Bloomberg News – October 14, 2015)

October 15, 2015

http://www.bloomberg.com/

The Federal Reserve is giving the gold market a splitting headache.

With mounting doubts over when Fed policy makers will raise U.S. interest rates this year, traders and analysts are becoming increasingly divided on where prices go from here. Half of the respondents in a Bloomberg survey expect bullion to drop for a third straight year in 2015, and the rest are predicting a gain.

As the outlook got cloudier for interest rates — which can erode the appeal of holding metals that don’t offer yields — gold volatility has jumped close to a three-month high. Hedge funds have been befuddled, betting the wrong way on price moves in four of the past seven weeks.

Even the two most-accurate forecasters over the past quarter are at odds over what the Fed moves mean for bullion, data compiled by Bloomberg show.

“Some people are just going crazy waiting,” said Alan Gayle, a senior strategist for Atlanta-based RidgeWorth Investments, which oversees $40 billion.