International Media Resource Articles – Page 662

Finding Minnesota: The ‘Grand Canyon Of The North’ – by Mike Binkley (CBS Minnesota – May 31, 2015)

June 1, 2015

http://minnesota.cbslocal.com/

HIBBING, Minn. (WCCO) – This year, thousands will take a side trip to a giant hole in the ground in northern Minnesota that locals like to call “the Grand Canyon of the North.”

It’s not a natural wonder. It’s a panoramic collection of cliffs, ridges and valleys that have all been carved up by humans. The Hull Rust Mahoning Mine on the edge of Hibbing is the second largest open pit iron ore mine in the world.

Beauty was not the main objective when miners first arrived there in the 1890s, but after 120 years of blasting, digging and hauling, beauty is what many visitors see. Anne Varda, whose family includes three generations of miners, is now president of the adjacent tourist center.

Nothing dull about zinc if supply falls – by Trevor Sykes (Australian Financial Review – June 1, 2015)

June 1, 2015

http://www.afr.com/

Zinc was the hot tip at the Resources Investment Symposium held in Broken Hill last week.

Probably a natural call given that Broken Hill is home to the greatest silver-lead-zinc mine the world has ever known.

In its 130-year life Broken Hill has produced total of 50 million tonnes of lead and zinc combined plus 100 million ounces of silver. It has been mined almost continuously over that time and still has a long life ahead at deeper levels and in exploiting remnant ore.

In his opening address at the symposium, Emeritus Professor Ian Plimer of the University of Melbourne noted that the market for mining shares had been slow and sluggish for the past four years.

He said: “This market will turn around when there is a fundamental commodity shortage and I think that commodity will be zinc. I think we will go into shortage in the first quarter of next year.” It was a big call, because as far as investors are concerned, zinc is the least sexy of all the major metals.

At various times, investors have been excited about diamonds, gold, copper, oil and nickel, but some minerals just don’t seem capable of arousing them. Mineral sands are a good example. Australia is rich in them, but the market is never much better than lukewarm.

Nevada mining innovates and endures – by Dana R. Bennett (Elko Daily Free Press – June 1, 2015)

June 1, 2015

http://elkodaily.com/

Dana R. Bennett is the Nevada Mining Association President.

Nevada mining is dynamic—an evolving industry that changes over time. From our 21st century perspective, after many years of solid gold production numbers, it can be hard to imagine a time when gold was not the preeminent mineral in Nevada. There was a time – a long period of time – when gold mining was essentially dying in this state.

In 1942, the U.S. War Production Board ordered the closure of non-essential gold mines in order to concentrate the production of minerals needed for the war effort. Some Nevada mines closed completely, but some, such as the Getchell Mine in Humboldt County, were able to remain open by focusing on the production of industrial minerals.

After World War II ended and gold mines were allowed to open, Nevada’s gold industry was slow to recover. Production continued to decline. Nearly 20 years after the federal government order, Nevada’s gold production dropped to the second-lowest point in all of Nevada history.

Instead, Nevada’s mining industry focused on industrial minerals, producing iron, lead, manganese, tungsten and zinc in the early 1950s. Lander County produced world-renowned turquoise. By 1957, however, even the industrial mineral industry began to slide.

The Cornish Mines – by Graham Jaehnig (The Daily Mining Gazette – May 30, 2015)

June 1, 2015

http://www.mininggazette.com/

From the very beginning of the mineral rush in 1843, miners from other countries worked Copper Country lodes. John Hays, in working the area around Copper Harbor, worked teams of German coal miners he had retained from Pennsylvania. Colonel Charles Gratiot, working for the Lake Superior Copper Company, had brought with him a crew of some fourteen Cornish miners from the lead district of Wisconsin.

Cornwall is a small peninsula on the southwest portion of England that juts into the Atlantic Ocean, and enjoys a remarkable mining history. Mining in Cornwall had begun as early as the Bronze Age (2100-1500 BCE) and by the beginning of the 17th century CE, the Cornish had earned the reputation as experts and world leaders in mining and mineral dressing.

At the time when Cornish mines were becoming too deep to be profitably mined, large copper deposits were discovered in England’s North Wales. To compete with these new, shallow mines, Cornish engineers made great advancements in mining technology, such as pumping engines and mineral processing.

By the mid-1840s, as the Cornish copper industry was in major decline, the mineral lands of Lake Superior were just beginning to make world news for their finds of huge masses of pure copper.

Selling Off Apache Holy Land – by Lydia Millet (New York Times Opinion Pages – May 29, 2015)

June 1, 2015

http://www.nytimes.com/

Tucson – ABOUT an hour east of Phoenix, near a mining town called Superior, men, women and children of the San Carlos Apache tribe have been camped out at a place called Oak Flat for more than three months, protesting the latest assault on their culture.

Three hundred people, mostly Apache, marched 44 miles from tribal headquarters to begin this occupation on Feb. 9. The campground lies at the core of an ancient Apache holy place, where coming-of-age ceremonies, especially for girls, have been performed for many generations, along with traditional acorn gathering.

It belongs to the public, under the multiple-use mandate of the Forest Service, and has had special protections since 1955, when President Dwight D. Eisenhower decreed the area closed to mining — which, like cattle grazing, is otherwise common in national forests — because of its cultural and natural value. President Richard M. Nixon’s Interior Department in 1971 renewed this ban.

Despite these protections, in December 2014, Congress promised to hand the title for Oak Flat over to a private, Australian-British mining concern. A fine-print rider trading away the Indian holy land was added at the last minute to the must-pass military spending bill, the National Defense Authorization Act.

Platinum sector faces its Kodak moment in fuel cell technology – by Clara Denina and Silvia Antonioli (Reuters U.S. – May 29, 2015)

June 1, 2015

http://www.reuters.com/

LONDON, May 29 (Reuters) – Platinum miners betting on fuel cell vehicles to help boost demand for the precious metal and lift moribund prices are in danger of having their hopes dashed, at least in the medium term: electric and hybrid cars are taking a bigger share of the market.

The world’s three largest platinum producers Anglo American Platinum (Amplats), Impala Platinum and Lonmin are all investing in projects related to fuel cell technologies, which generate electricity that can power vehicles by combining hydrogen and oxygen over a platinum catalyst.

But analysts doubt fuel cell vehicles will rival the growth of their electric counterparts, mostly because battery recharging stations are less costly and already more widespread than hydrogen refuelling stations.

“As out of the two new technologies only fuel cells use platinum, I guess the miners think they have no choice,” Macquarie analyst Matthew Turner said. “But people are buying electric cars…and that’s not the case for fuel cells.”

Amplats, which has invested about $35 million in the last five years in companies developing new uses for platinum, mostly through fuel cell technology, is mindful of the stakes.

The iron ore price equation that makes Fortescue attractive for China – – by Anne Hyland (Australian Financial Review – May 29, 2015)

May 29, 2015

http://www.afr.com/

CITIC Group and Baosteel Group, which are said to be interested in Fortescue Metals Group, are two of the most politicised companies in China. Baosteel is China’s leader in the steel industry and CITIC was anointed to make significant investments outside China, such as the $10 billion Sino Iron project, which has been described as the worst mining investment in Australia in the past decade.

What is almost certain is that CITIC and Baosteel, which is developing an iron ore project with Aurizon, won’t bid against each other for Fortescue or other resource companies. It would be politically unpalatable in China and it’s typically not what China Inc does.

While there would be a dozen companies in China capable of taking out Fortescue, only one would get the green light, say veteran China observers.

At the Stockbrokers Association conference on Thursday, Li Xinchuang, president of the China Metallurgical Industry Planning Association, firmed up speculation with comments that Fortescue would benefit from a Chinese investor, while saying he didn’t believe the argument that there was a global oversupply of iron ore.

Norway oil fund plans to withdraw from coal-burning utilities – by David Crouch and Pilita Clark (Financial Times – May 27, 2015)

May 29, 2015

http://www.ft.com/intl/world/europe

Gothenburg and London – Norway’s $916bn oil fund will consider pulling billions of dollars of investments out of coal in a move that threatens European utilities using the fossil fuel to generate power.

Members of the finance committee of Norway’s parliament confirmed on Wednesday night that opposition and governing parties had reached agreement that the fund should withdraw investments from companies whose business relies more than 30 per cent on coal, measured either by revenue from fossil fuel or by the percentage of power they generate from it.

The proposal will be put to parliament on Thursday for a vote on June 5 but cross-party agreement means it is very likely that it will be passed.

Norway’s move is one of the most significant responses yet to a global divestment campaign that aims to ‎stigmatise the use of coal and other fossil fuels because of their input to climate change.

“This will make a huge difference, it will have influence on ordinary miners and energy companies,” said Terje Breivik, a Liberal party member of the finance committee. “The main explanation is that the oil fund itself is aware of the financial risk due to climate problems.”

The History of Erie Mining Company (Hometownfocus.us – May 29, 2015)

May 29, 2015

http://www.hometownfocus.us/

A project to document the history of the pioneering research, preliminary pilot plant, and construction and operation of the world’s first completely integrated taconite mine.

In early 2014, a team of willing and dedicated former Erie Mining Company/ LTV Mining employees began meeting monthly at the Hoyt Lakes City Hall. The team set as its purpose to document the initial development of Minnesota’s taconite Industry by preparing a history of the pioneering research, construction and operation of Erie Mining Company and the establishment of the town site of Hoyt Lakes.

Partnering with the St. Louis County Historical Society, the group established a goal of publishing a quality book, containing both the technical and pictorial history of the mine, plant site, railroad, power plant and harbor, town sites of Hoyt Lakes, Taconite Harbor, and Murphy City as well as the personal stories and experiences of the employees, contractors, vendors, and “town folk” who built and operated one of the world’s largest and most innovative green field mining operations, and one of our nation’s largest private capital enterprises of the past century.

The group contacted local historians, the Minnesota Historical Society and others, who confirmed that there are no comprehensive, historically accurate books documenting the history of the Erie Mining Company, or for that matter, any of Minnesota’s taconite mining and processing operations.

China Dotes on South American Infrastructure – by Tim Maverick (Wall Street Daily – May 28, 2015)

May 29, 2015

http://www.wallstreetdaily.com/

In April, I told readers about the billions of dollars China was pumping into the New Silk Road, connecting Pakistan to China. But China isn’t stopping there. It seems the economic powerhouse has also set its sights on South America.

Chinese Premier Li Keqiang just completed an extensive nine-day tour of Brazil, Peru, Chile, and Colombia. These four countries account for 57% of China’s quickly increasing trade with South America.

In January, Li promised $250 billion in investment into South America over the next decade. As of the end of 2014, China had already invested nearly $100 billion into its favorite countries.

On his current tour, Li is lavishing billions more on a number of deals, most of which center around infrastructure, such as rail.

You see, China is unflinching in its quest for power and security. Meaning the Chinese want to ensure speedy delivery of the precious commodities produced in South America.

S. Africa Plans $124 Million Payout for Lung-Diseased Miners – by Kevin Crowley (Bloomberg News – May 29, 2015)

May 29, 2015

http://www.bloomberg.com/

South Africa plans 1.5 billion rand ($124 million) of payouts from a compensation fund for miners suffering from lung diseases that affect about 700,000 people, Health Minister Aaron Motsoaledi said.

Companies including AngloGold Ashanti Ltd., the world’s third-biggest miner of the metal, are participating in the project rolled out by the Department of Health to unblock a backlog of 500,000 claims. Compensation will apply to sufferers of tuberculosis, silicosis, and other illnesses, Motsoaledi said. Workers from other countries are also eligible to apply, he said.

“Our goal is to compensate current and ex-mineworkers who have submitted valid and compensable claims,” he told reporters in Carletonville, a gold-mining town 86 kilometers (53 miles) west of Johannesburg. “I’m here to pay back the money.”

Silicosis, a lung disease caused by inhaling dust from mines, causes scar tissue in the lungs, increasing vulnerability to tuberculosis that can kill more than half of sufferers if not properly treated. South Africa is source of about a third of all gold yet produced globally and the continent’s biggest coal producer.

Separately, lawyers representing sufferers of silicosis say companies including AngloGold and Harmony Gold Mining Co. are to blame for workers catching the disease because they operated without adequate ventilation for the past 60 years.

Japan push into Africa resources sputters, helps China – by Yuka Obayashi (Reuters U.S. – May 29, 2015)

May 29, 2015

http://www.reuters.com/

TOKYO, May 29 (Reuters) – A Japanese government drive to secure access to resources in Africa has sputtered as some companies shy away from investing due to slumping commodity prices and worries over political stability, helping China as it races to import raw materials from the continent.

Around two years ago, Japan said it would provide about $2 billion mainly to back African commodity projects by its firms as part of a move to secure supplies of materials such as coking coal and copper it needs to churn out steel and electronic components.

But worries over the stability of the investment environment in some African nations, along with falling commodity prices, have sapped momentum from that push, Japanese firms said at a mining conference on Thursday and Friday.

A lack of infrastructure and concerns over resource nationalism were also cited as reasons.

“To invest in mine development, it is necessary to see an improvement in Africa’s investment environment so it is politically, sociologically and economically stable,” Shigeru Oi, president of JX Nippon Mining & Metals Corp, Japan’s top copper refiner, said in a speech.

UPDATE 2-Australia iron ore magnate Rinehart weakened by court ruling – by Jane Wardell and James Regan (Reuters U.S. – May 28, 2015)

May 29, 2015

http://www.reuters.com/

SYDNEY, May 28 (Reuters) – Australian iron ore magnate Gina Rinehart’s eldest daughter won control of the $3 billion dollar family trust on Thursday in a judgment critical of Rinehart’s former control of the fund and attempts to block the long-running legal dispute.

The Supreme Court of New South Wales judgment loosens Rinehart’s legendary grip on her business empire, with almost 25 percent of Hancock Prospecting Pty Ltd held by the trust.

Rinehart owns the remainder of the family firm, which in turn owns 70 percent of Roy Hill, a Pilbara-based iron ore mine due to start shipments later this year.

South Korea’s POSCO, Japan’s Marubeni Corp and Taiwan’s China Steel Corp also have stakes in the mine, which will be Australia’s fourth-largest when it reaches full production.

Three of Rinehart’s four children – eldest Bianca Rinehart, Hope Welker and John Hancock – sued for control of the trust in 2011.

They alleged their mother acted with “gross dishonesty” as trustee, when she pushed out its vesting date until 2068, meaning all four children would not get their shares until they were in their 80s and 90s.

Many Mines Put Up for Sale, but Buyers Are Scarce – by Scott Patterson and John W. Miller (Wall Street Journal – May 28, 2015)

May 28, 2015

http://www.wsj.com/

Drought of deals reflects low commodity prices, low quality of assets on the block

Miners across the world want to sell off their mines, but they have a problem: Almost no one wants to buy them.

Some veteran bankers in the mining industry say they are seeing the longest drought of deals in their careers. The rut is caused by a commodity price rout with little sign of recovery, low-quality assets on the block and a focus on shareholder returns—not acquisitions—from industry giants like BHP Billiton PLC and Rio Tinto PLC.

Deal volumes in 2014 fell 23% to 544 from the previous year, the lowest amount since 2003 and the fourth straight year of declines, according to Ernst & Young. Deals during the past decade peaked in 2010, when 1,123 were completed amid a China-fueled boom in prices. In the first quarter of 2015, the value of mergers and acquisitions in the mining industry globally fell 18% to $5.9 billion, from $7.2 billion a year ago, Ernst & Young said.

The paucity of mining deals, amid a broadly roaring M&A market, comes as prices for commodities such as iron ore, aluminum and copper are trading at near six-year lows. Other metals like nickel and zinc are being weighed down by lackluster demand.

Gina Rinehart loses control of $5b family trust – by Louise Hall (Sydney Morning Herald – May 28, 2015)

May 28, 2015

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

John Hancock, the estranged son of Australia’s richest person Gina Rinehart, has won an epic legal battle over control of the family’s multibillion-dollar family trust, with his sister and ally Bianca Rinehart appointed trustee.

On Thursday, NSW Supreme Court Justice Paul Brereton appointed Bianca, 38, trustee of the Hope Margaret Hancock Trust, which was set up by her late grandfather Lang Hancock and is thought to be worth about $5 billion.

Justice Brereton also ordered Mrs Rinehart to hand up documents and accounts relating to the trust that John and Bianca had claimed were withheld from them for many years.

The decision follows a bitter and public three-and-a-half-year war that saw Mrs Rinehart and her youngest daughter, Ginia, 28, pitted against her eldest two children, John, 39 and Bianca. Hope Welker, 29, who initially launched the legal action against her mother, settled in 2013 for $45 million because of the “high degree of distress” the litigation was causing her.

Justice Brereton said: “Mrs. Rinehart has demonstrated that she is prepared to go to extraordinary lengths to retain control, directly or indirectly, of the Trust, and that she is capable of exerting enormous pressure and great influence to do so”.