Clueless do-gooders make Africa’s conflict mineral mines even more dangerous – by Tim Worstall (The Register – August 5, 2015)

http://www.theregister.co.uk/

Dodd-Frank stupidity writ large

Worstall on Wednesday I have muttered around here more than a few times about the various idiocies of the Blood in the Mobile campaign. This was the idea that we could stop the appalling (and true) levels of violence in Eastern Congo’s mining trade by making American companies fill out lots of documents.

The idea was that if they all had to say whether they used conflict minerals, they’d all prefer to be able to say “no” and therefore there wouldn’t be the violence over the minerals trade that happens today.

We were told that this would cost some $10m originally, one cent on the price of each mobile phone. By the time the legislature got at it, the Securities and Exchange Commission (SEC) said it would cost $4bn in the first year alone.

I rather railed against this, insisting that there was a much easier, cheaper and simpler system available; one that the industry itself was already implementing.

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In coal-mining Kentucky, shock and dismay over Clean Power Plan’s new targets – by Francine Kiefer and Ryan Alessi (Yahoo News – August 5, 2015)

http://news.yahoo.com/

Kentucky was on track to meet an earlier proposed target in the Clean Power Plan. Now the state, which has lost thousands of coal-mining jobs in recent years, plans to fight the final, more stringent rule in the courts.

It is a tense time in Kentucky. The Environmental Protection Agency has just come out with its final rule on reducing carbon emissions – the strongest step ever taken to counter climate change in the United States – and this coal state is reeling.

“We are shocked at the difference in the proposal we were given to work on last year, versus the final rule announced Monday,” said Dick Brown, spokesman for the state’s Energy and Environment Cabinet, in an e-mail. The new target is a 27 percent increase in the amount of CO2 emissions that Kentucky’s power plants have to reduce by 2030, he says.

In many states, residents may be wondering how the EPA’s Clean Power Plan will affect their energy bills, for example. But in states like Kentucky, the new carbon rule arguably hits even closer to home. The Bluegrass State is America’s third-largest coal producer, and it gets more than 90 percent of its electricity from coal. Even before the carbon rule was finalized, the state had lost thousands of coal-mining jobs in the past two years alone.

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A big fall in gold output will come from mine closures – by Lawrie Williams (Mineweb.com – August 5, 2015)

http://www.mineweb.com/

Consultancy Metals Focus forecasts gold output to fall as unprofitable mines are shut.

LONDON – Taking All-in Sustaining Costs (AISC) figures, precious metals consultancy Metals Focus reckons that just short of a quarter of global new mined gold output is running at a loss at an $1100/ounce gold price, and falls below that level will add to this quite sharply.

The consultancy’s global cost curve covers gold mines providing around half the global gold output of 1,650 tonnes. Metals Focus estimates that as much as half of annual new mined production in their survey, i.e. 400 tonnes, will be uneconomic at current prices.

Presumably extrapolating this figure across total global gold output would thereby suggest that as much as 800 tonnes of production could currently be running at a loss.

But the consultancy notes, this doesn’t mean that any of the production will fall away through closures and cutbacks, not until the gold price downturn is more prolonged or more severe. It notes that there may be substantial costs involved in closing an operating mine down, which may mean it is less costly to keep the mine producing at some level – perhaps high grading where this is an option (which may actually increase output).

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Rare Lizard Thwarts Indian Giant Adani’s Coal Ambition – by Rhiannon Hoyle (Wall Street Journal – August 5, 2015)

http://www.wsj.com/

Australian activists raised concerns about the Carmichael project’s impact on the yakka skink and ornamental snake

SYDNEY—The yakka skink may be little known globally, but the native Australian lizard is causing problems for one of India’s biggest conglomerates.

On Wednesday, a federal court in Sydney overturned approval for Adani Group to build one of the world’s biggest new coal mines on scrubland facing the Great Barrier Reef. Environmental activists have raised concerns about the project’s impact on the yakka skink and another vulnerable species, the ornamental snake.

Adani blamed Wednesday’s decision on red tape. Environment Minister Greg Hunt approved the mining project last year, but it was overturned because of what the environment department termed a “technical, administrative” issue. It said its advice to Mr. Hunt during the approval process may not have been provided in the correct manner.

The department said it would take six to eight weeks to prepare new advice and supporting documents and for Mr. Hunt to reconsider his decision. It added that all parties involved, including Adani, agreed with the federal court’s decision to set aside approval of the project.

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South Africa strives to save jobs at under-fire mines – by Zandi Shabalala (Reuters U.S. – August 5, 2015)

http://www.reuters.com/

PRETORIA – South Africa’s mining ministry held talks with companies and unions over planned job cuts on Wednesday, as President Jacob Zuma’s government frets over high unemployment ahead of key elections next year.

The mining industry, which contributes around 7 percent to Africa’s most developed economy, is struggling with sinking commodity prices, rising costs and labor unrest.

“It’s about jobs, jobs, jobs and none of us should leave this place without committing something to the table,” mining minister Ngoako Ramatlhodi told reporters.

Zuma’s African National Congress (ANC) heads into local elections next year with its main rival the Democratic Alliance (DA) targeting wins in key metropolitan areas, including Gauteng, home to economic hub Johannesburg.

The DA will target the ANC on its inability to reduce stubbornly high unemployment, which officially stands at 25 percent but some experts believe is much higher.

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Zambia Copper Miners to Cut Power Use 15% to Ease Shortage – by Matthew Hill (Bloomberg News – August 4, 2015)

http://www.bloomberg.com/

Zambian mining companies agreed to reduce their electricity consumption by as much as 15 percent to help ease a power shortage in Africa’s second-biggest copper producer.

The local units of Glencore Plc, Vedanta Resources Plc and other operators reached the agreement with Mines Minister Christopher Yaluma and electricity supplier Copperbelt Energy Corp. at a meeting on Tuesday, according to the Chamber of Mines.

Power cuts already enforced at projects run by First Quantum Minerals Ltd. and Barrick Gold Corp. will be reversed on Wednesday, said Jackson Sikamo, the president of the chamber.

“The discussion was very open and the minister acknowledged the effort the mining companies have made,” he said by phone on Tuesday from Kitwe, about 280 kilometers (174 miles) north of Lusaka, the capital. The reductions of 10 percent to 15 percent will “definitely affect production,” though it’s too early to tell by how much, Sikamo said.

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Skimpies still a ‘touchy subject’ at Kalgoorlie’s annual Diggers and Dealers conference – by Claire Moodie (Australian Broadcasting Corporation – August 5, 2015)

http://www.abc.net.au/

Australia’s biggest and most colourful mining conference, Diggers and Dealers, is showcased on the world stage, but there are some images the industry does not want to share.

Television cameras are banned from Kalgoorlie’s busiest bars, where the real colour of the event unfolds after the forum has wrapped up for the day.

It is quite a spectacle – hundreds of mining types packed into bars with names like the Wild West Saloon, where the gold capital’s famous skimpy barmaids hold court to a sea of suits.

The “skimpies” – scantily clad and sometimes topless barmaids – have been entertaining Diggers delegates since the early days of the forum 20 years ago.

Many fly in from the Gold Coast, Sydney and Melbourne, with the promise of big tips during the three-day event. Local hoteliers have special licences that allow the women to go “toppo” – topless. “It’s a very touchy subject,” Palace Hotel owner Ashok Parekh said.

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Finnish nickel mining execs on trial for environmental damage (AFP – August 4, 2015)

https://en-maktoob.news.yahoo.com/

Four former executives with a Finnish nickel mining company accused of contaminating lakes with uranium, cadmium and other toxic elements went on trial Tuesday charged with aggravated environmental damage.

Talvivaara Sotkamo, the bankrupt operator of the European Union’s biggest nickel mine, is also named among the defendants in the highly-publicised case in Kainuu, east-central Finland.

The prosecutor asked the district court to seize 13.3 million euros ($14.6 million) in illegal profits from Talvivaara Sotkamo’s estate and the four executives, according to court documents.

Situated around 500 kilometres (300 miles) north of Helsinki, the mine opened in 2008 amid expectations it would usher in a new era in nickel mining in Finland.

But the operation ended in environmental disaster and economic failure after toxic levels of nickel, cadmium, uranium, aluminium and zinc were detected in nearby lakes and rivers in 2012, and again in 2013 after waste water began to leak from the mine.

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Zinc, nickel add a little lustre to Diggers – by Tess Ingram (Sydney Morning Herald – August 4, 2015)

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

As Diggers and Dealers delegates rolled in for day two of the annual mining conference, heavy heads from a late night in Kalgoorlie’s famous watering holes were unlikely to be relieved by an injection of optimism.

Commodity prices are down across the board. Since last year’s conference, base metals are down between 20 and 40 per cent, while gold is down about 15 per cent and iron ore has plummeted nearly 50 per cent during the year.

Australian domiciled gold producers, buoyed by the falling local currency, are a shining centre of attention at the conference but there are some other bright spots.

Despite a recent price slide that has forced some analysts to downgrade their price forecasts, zinc-focused companies at the conference attracted a considerable level of interest from analysts and investors at their marquee booths.

Zinc for delivery in three months has fallen to around $US1893 a metric ton on the London Metal Exchange.

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Obama Didn’t Kill Coal, the Market Did – by Michael R. Bloomberg (Bloomberg News – August 4, 2015)

http://www.bloombergview.com/

Critics of the Environmental Protection Agency’s new Clean Power Plan are describing it in apocalyptic terms. But much of what they believe about the plan — that it will destroy the coal industry, kill jobs and raise costs for consumers — is wrong. And it’s important to understand why.

The overblown political rhetoric about the plan tends to obscure the market reality that the coal industry has been in steady decline for a decade, partly as a result of the natural gas boom, but mostly because consumers are demanding cleaner air and action on climate change.

Communities across the U.S. have led the way in persuading utilities to close dirty old coal plants and transition to cleaner forms of energy. The Sierra Club’s grass-roots Beyond Coal campaign (which Bloomberg Philanthropies funds) has helped close or phase out more than 200 coal plants over the past five years.

The primary reason for the public revolt against coal is simple: It causes death, disease and debilitating respiratory problems. A decade ago, coal pollution was killing 13,000 people a year. Today, the number is down to 7,500, which means that more than 5,000 Americans are living longer, healthier lives each year thanks to cleaner power.

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States Should Shun the EPA’s New Power Mandate – by Hal Quinn ad Peter Glaser (Wall Street Journal – August 2, 2015)

http://www.wsj.com/

The agency has failed to properly weigh the costs, even though the Supreme Court says it must.

On Monday President Obama is announcing the final version of his Clean Power Plan, the carbon-emission rules for power plants to secure his climate-change legacy. The plan is designed to hobble electricity generators much as the Environmental Protection Agency’s 2012 rule to reduce mercury and other emissions has harmed the coal industry.

Fortunately for consumers, on June 29 the Supreme Court slapped down the agency’s 2012 rule. In Michigan v. EPA, the court said the agency failed its legal obligation to compare the cost of its mercury standards with the benefits.

Reckless disregard for costs has also guided the agency’s Clean Power Plan. The White House promises Monday’s rule will offer more flexibility to meet emissions targets than an earlier draft, but the targets may be even more difficult to meet. That will force rate payers into steeper cost increases, and concessions the EPA makes to some states and industries will come at the expense of others.

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COLUMN-Iron ore’s “bull market” shows rise of financial trading – by Clyde Russell (Reuters U.S. – August 3, 2015)

http://www.reuters.com/

LAUNCESTON, Australia, Aug 3 (Reuters) – One of the more fanciful notions from the recent rally in iron ore prices is that the steel-making ingredient is now back in a bull market.

Asian spot iron ore .IO62-CNI=SI does meet the technical definition of being in a bull market, having gained 25.4 percent between its record low of $44.10 a tonne on July 8 and the close of $55.30 on July 29.

Markets are said to be in a bull phase when the rally exceeds 20 percent, likewise they are in a bear period when the decline is greater than 20 percent.

Traders are more likely to talk about dead cat bounces than bull runs where iron ore is concerned, and the fact remains that despite the price rally, iron ore remains down 25.7 percent so far this year and is barely a quarter of what it was at its all-time high in early 2011.

The recent gain in spot prices is actually the second technical bull market already this year, following the 40 percent jump between the low of $46.70 a tonne on April 2 and the peak of $65.40 on June 11.

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Rio wants exploration collaboration to discover next big seam – by Tess Ingram (Sydney Morning Post – August 3, 2015)

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

Well-known West Australian explorer Mark Bennett has queried whether a plan by Rio Tinto to reinvigorate exploration in Australia through partnerships with junior mining companies will work as intended.

Rio has used its first presentation at the Diggers and Dealers conference in eight years to call for collaboration in exploration in order to find the next major mineral discovery in Australia.

The country’s miners are relying on deposits discovered at shallow depths more than 30 years ago and are struggling to discover further large, tier-one deposits at depth.

The current cost and risk of deeper exploration has meant many miners have abandoned exploration efforts altogether, opting for more bankable exploration around existing deposits (known as brownfields exploration) or in other countries, where resources remain shallow.

Speaking on the first day of the annual conference in Kalgoorlie, Rio Tinto exploration director Australasia Ian Ledlie extended an invitation to junior companies to use the global major’s mineral analysis technology to help prove up discoveries.

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White House set to adopt sweeping curbs on carbon pollution – by Joby Warrick (Washington Post – August 1, 2015)

http://www.washingtonpost.com/

The Obama administration will formally adopt an ambitious regulation for cutting greenhouse-gas pollution on Monday, requiring every state to reduce emissions from coal-burning power plants and putting the country on a course that could change the way millions of Americans get their electricity.

A retooled version of the administration’s Clean Power Plan, first proposed a year ago, will seek to accelerate the shift to renewable energy while setting tougher goals for slashing carbon emissions blamed for global warming, according to administration officials briefed on the details.

The new plan sets a goal of cutting carbon pollution from power plants by 32 percent by the year 2030, compared with 2005 levels — a 9 percent jump from the previous target of 30 percent — while rewarding states and utility companies that move quickly to expand their investment in solar and wind power.

Many states will face tougher requirements for lowering greenhouse-gas emissions under the revised plan.

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New EPA rule on greenhouse gases the latest blow to King Coal – by Steven Mufson (Washington Post – August 1, 2015)

http://www.washingtonpost.com/

When coal was king, it fueled more than half of the nation’s electricity. It fired up American industry and powered an ever-growing variety of household appliances and electronics. And American presidential hopefuls paid homage to coal, courting mine owners and miners whose unionized ranks once numbered more than 400,000.

Barack Obama was no exception. As a state legislator in 2004 and again as a U.S. senator, he supported proposals for huge federal subsidies to turn coal into motor fuel and ease America’s reliance on oil imports. “With the right technological innovations, coal has the potential to be a cleaner-burning, domestic alternative to imported oil,” Obama said in June 2007.

All of that has changed. On Monday, the Obama administration takes on the coal industry with the final version of rules it has dubbed the Clean Power Plan, a complex scheme designed to reduce, on a state-by-state basis, the amount of greenhouse gases the nation’s electric power sector emits. The main target: coal.

Today, more people in the United States work jobs installing solar panels than work in the coal industry.

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