International Media Resource Articles – Page 665

[Australia iron mining] Friends, countrymen, lend me your ores – by Richard Denniss (Brisbane Times – May 22, 2015)

May 22, 2015

http://www.brisbanetimes.com.au/

Richard Denniss is an economist and executive director of The Australia Institute.

Australia has a bigger share of the seaborne coal market than Saudi Arabia has of the world oil market. And Australia has a bigger share of the seaborne iron ore market than all of the OPEC counties combined have of the world oil market. Everyone knows that if OPEC doubled their oil supply the world oil price would fall. Yet Australians are being told that our decision to double our iron ore exports between 2007 and 2014 had no impact on the price of iron ore.

Someone is talking crap.

While it’s hard for mere mortals to turn water into wine, it’s easy to turn wine into water. Just take a glass of wine, add a very large quantity of water and, hey presto, you’ve got water. But if you add water, one drip at a time, to a glass of wine, it’s virtually impossible to decide when it stopped becoming wine and started becoming water.

So what’s watery wine got to do with the price of iron ore? Lots.

Between 2005 and 2014 Australia built or expanded almost 400 mines. Not surprisingly, doing so put enormous pressure on the cost of the labour, capital and raw materials need to build them.

The [United States] House just passed a bill about space mining. The future is here. – by Brian Fung (Washington Post – May 22, 2015)

May 22, 2015

http://www.washingtonpost.com/

For as long as we’ve existed, humans have looked up at the stars — and wondered. What is up there? Who is out there?

Now, to that list of questions we can add: And CAN I HAVE IT?

The United States has already shown its penchant for claiming ownership of space-based things. There are not one, not two, but six U.S. flags on the moon, in case any of you other nations start getting ideas. (Never mind that the flags have all faded to a stateless white by now.)

So it only makes sense that American lawmakers would seek to guarantee property rights for U.S. space corporations. Under the SPACE Act, which just passed the House, businesses that do asteroid mining will be able to keep whatever they dig up:

“Any asteroid resources obtained in outer space are the property of the entity that obtained such resources, which shall be entitled to all property rights thereto, consistent with applicable provisions of Federal law.”

This is how we know commercial space exploration is serious. The opportunity here is so vast that businesses are demanding federal protections for huge, floating objects they haven’t even surveyed yet.

Murray Energy to Lay Off Around 1,800 Workers – by Timothy Puko and John W. Miller (Wall Street Journal – May 21, 2015)

May 22, 2015

http://www.wsj.com/

Move is another blow to the coal mining industry in Appalachia

Coal miner Murray Energy Corp. is set to announce layoffs of around 1,800 workers at nine locations on Friday, according to a person familiar with the matter, dealing another blow to the coal-mining industry in Appalachia.

The planned layoffs, which represent about 21% of Murray’s workforce, will come largely at mines in West Virginia and Ohio, a region already reeling from the impact of abundant natural gas and a global coal glut.

Robert Murray, the 75-year-old founder and chief executive of the company, made the decision Wednesday after a 12-hour meeting with operations managers, according to the person familiar with the matter.

The company decided to make much bigger cuts than it had previously been considering because of growing concerns about the slumping market for thermal coal, the person said.

The company plans to send formal notice on Friday to workers at the Monongalia County Coal Co. in West Virginia, the mine that will see the largest layoffs. The mine had been idled earlier this spring, putting several hundred miners out of work.

Gloomy Mining Chiefs See Copper-Tinted Light at End of Tunnel – by Firat Kayakiran, Jesse Riseborough and Agnieszka De Sousa (Bloomberg News – May 21, 2015)

May 22, 2015

http://www.bloomberg.com/

The world’s biggest mining companies haven’t agreed on much lately as they argue about how to deal with a glut of iron ore and coal. When the subject turns to copper, however, they’re on the same wavelength.

Executives of BHP Billiton Ltd., Antofagasta Plc, Rio Tinto Group, Freeport-McMoRan Inc. and Glencore Plc all pointed to copper in comments this month as the one commodity not dogged by oversupply. Demand is proving resilient, according to analysts who cite China’s response to a slowdown in economic growth by sanctioning a number of previously delayed infrastructure projects.

“If you’re looking for a single structural long-term bullish argument for owning a commodity, just look at copper,” said Clive Burstow, who helps manage $44 billion at Baring Asset Management in London.

In an interview last week, the head of the world’s largest mining company painted a gloomy picture for the industry. BHP’s Andrew Mackenzie said that in all the minerals markets in which it operates, any demand increase can too “easily” be met by expanding existing mines. One exception he sees is copper.

Is South Deep SA’s most disappointing mine? – by David McKay (Miningmx.com – May 22, 2015)

May 22, 2015

http://www.miningmx.com/

[miningmx.com] – THERE’S a growing suspicion that South Africa’s last great gold mine, the South Deep project on the West Rand, may prove to be its most disappointing after Gold Fields acknowledged it, like the project’s previous owners, would fail to have it deliver on its production promises.

Since its earliest development to its current position now, the deposit has refused to yield its treasures in a way its owners expected and promised. In the process, it has absorbed billions of rands of investment; yet two decades on, ‘the mine’ is still ‘a project’.

JCI, then a limb of a sprawling Anglo American, started South Deep. It was then taken over by the late Brett Kebble when he ran JCI in combination with his Western Areas.

Half of the project was sold to Placer Dome in the hope that North American know-how and capital would help bring South Deep to the 800,000 to 900,000 ounce/year to life. But to no avail.

The asset then switched hands with another North American owner, Barrick Gold, attempting to wrest gold economically from South Deep until it too sold the project to Gold Fields for about $1.5bn in an expensive game of pass the parcel.

Gold Fields Said to Be Among Final Bidders in Barrick Mine Sale – by David Stringer and Brett Foley (Bloomberg News – May 22, 2015)

May 22, 2015

http://www.bloomberg.com/

Gold Fields Ltd. is among final bidders competing to acquire a $400 million Australian mine from Barrick Gold Corp., people with knowledge of the matter said.

The Johannesburg-based producer and China’s Zijin Mining Group Co. submitted final offers for the Cowal gold mine in New South Wales state, according to the people, who asked not to be identified as the details are private. They are competing with local suitors Evolution Mining Ltd. and Independence Group NL, which also submitted binding bids, they said.

Barrick, the world’s biggest gold miner, said last month it has fielded interest for mines it’s seeking to divest in Australia, Papua New Guinea and Chile. The Toronto-based company plans to reduce net debt by at least $3 billion this year, partly by selling the assets and cutting staff at its head office.

Zijin Mining has also expressed interest in Barrick’s Porgera mine in Papua New Guinea, the people said. Representatives for Gold Fields, Independence Group and Evolution declined to comment, while spokesmen for Barrick and Zijin didn’t immediately respond to calls and e-mails seeking comment.

S.Africa’s NUM union wants 84 pct pay increase for gold workers – by Ed Stoddard (Reuters U.S. – May 22, 2015)

May 22, 2015

http://www.reuters.com/

JOHANNESBURG – May 21 South Africa’s National Union of Mineworkers (NUM) will push for an 84 percent rise in basic pay for entry-level gold mining workers, a near 10 percentage-point increase on previous demands, according to documents obtained by Reuters on Thursday.

They show that the NUM, which represents 57 percent of the workforce in the goldmining industry, want employers to pay entry-level workers a basic 10,500 rand ($888) a month.

Entry-level gold diggers currently earn around 5,700 rand per month, not including various allowances structured into their pay packages.

Last month NUM sources had said it would ask for 10,000 rand for entry-level workers. The latest demands have been seen by Reuters in official union documents dated April 30 and sent to mining companies body the South African Chamber of Mines.

The demands, which come as the central bank worries about the economic impact of pay rises above the current 4.8 percent rate of inflation, will set the stage for tough negotiations and a potentially protracted dispute with the gold mining companies.

Vale iron ore deal a ‘reminder’ for Australia: Roy Hill – by Tess Ingram (Sydney Morning Post – May 22, 2015)

May 22, 2015

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

Roy Hill chief executive Barry Fitzgerald has said the iron ore expansion deals Brazilian miner Vale inked with China this week are a reminder Australian producers need to remain competitive in the global iron ore market.

Mr Fitzgerald, the man responsible for the development of Gina Rinehart’s $10 billion Roy Hill mine, joined majors BHP Billiton and Rio Tinto in warning of the Brazilian iron ore producer’s growing competitiveness with its Australian rivals.

“What it does remind me, and it should remind all of us, that we in the mining industry are in a competitive, international business,” Mr Fitzgerald told a Morgans Financial breakfast in Perth on Friday. “What we do needs to reflect the pressures and the actions of our competitors.”

On Tuesday, China agreed to fund Brazilian iron ore giant Vale’s major S11D expansion and invest in huge ships that will transport high-quality ore from Brazil to Asia for a lower cost.

The project, which should be finished next year, is expected to produce 90 million tonnes of high-quality iron ore at a unit cost of $US11 a tonne. Vale also announced this month it would begin shipping a blended product – Brazilian Blend fines – with an iron content of 63 per cent.

Congo Miners Warn Growth at Risk Even as Output Increases – by Michael Kavanagh (Bloomberg News – May 21, 2015)

May 22, 2015

http://www.bloomberg.com/

Falling metal prices, power shortages and anticipated tax increases are threatening the Democratic of Congo’s mining industry even as copper, gold and cobalt output hit record highs, the country’s main business group said.

“Exploration projects are being wound down or halted, assets are being sold off and vigorous efforts are under way to cut production costs,” the Chamber of Mines at the Federation des Entreprises du Congo said in a report e-mailed Wednesday from the capital, Kinshasa. “This is certain to result in direct and indirect job losses as suppliers and contractors are squeezed.”

The slowdown wasn’t immediately apparent in the industry’s first-quarter results, the FEC report shows, as copper output rose 15 percent from the same period in 2014, while cobalt production jumped 17 percent and gold more than 37 percent.

Amid global price slumps for many metals, the country’s miners are trying to forestall a revision of the 2002 mining code that would increase mineral royalties and taxes and remove several tax exemptions. While legislative debate on the revisions was originally scheduled in the parliamentary calendar for the session ending in June, Congolese Mines Minister Martin Kabwelulu said Thursday no date had been set.

Chamber reveals plan to get South Africa’s ‘great mining industry’ back on front foot – by Martin Creamer (MiningWeekly.com – May 20, 2015)

May 22, 2015

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

JOHANNESBURG (miningweekly.com) – The Chamber of Mines of South Africa on Wednesday revealed a strategic plan to get South Africa’s “great mining industry” back on the front foot.

Speaking at the well-attended 125th annual general meeting (AGM) of the historic organisation, chamber president Mike Teke – who was re-elected for a second term with Harmony Gold CEO Graham Briggs and Impala Platinum executive director Andile Sangqu as his vice presidents – lifted the veil on a council-approved strategic plan aimed at doubling real investment in mining by 2030.

In order to get this investment, South Africa needed to create a stable, competitive and predictable policy, legislative and operating environment that would unlock optimum value from its vast mineral resources.

He urged Parliament to deal with the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill on an expeditious basis and to ensure that the outcome supported a vibrant and competitive mining sector.

Trying to force mining companies to sell minerals in the domestic market at developmental prices would damage the already strained mining sector, and probably do little to help the downstream sectors.

RPT-UPDATE 2-U.S. SEC fines BHP Billiton $25 mln in 2008 Olympics bribery probe – by Jonathan Stempel (Reuters U.K. – May 20, 2015)

May 21, 2015

http://uk.reuters.com/

BHP Billiton Plc will pay $25 million to settle charges that it violated a U.S. anti-bribery law by failing to properly monitor a program under which it paid for dozens of foreign government officials to attend the 2008 Summer Olympics in Beijing.

The accord resolves U.S. Securities and Exchange Commission charges that BHP, one of the world’s biggest mining companies, violated the Foreign Corrupt Practices Act when it sponsored the attendance of officials who were “directly involved with, or in a position to influence” its business and regulatory affairs.

BHP, which has offices in London and Melbourne, Australia, neither admitted nor denied wrongdoing in agreeing on Wednesday to settle the civil case. It also said the U.S. Department of Justice ended a related criminal probe without taking action, and that all U.S. investigations into the matter are complete.

The SEC said BHP invited 176 government officials to attend the Olympics at company expense, including 98 who worked for state-owned enterprises that were customers or suppliers, under a “global hospitality” program tied to its sponsorship of the games.

Tony Abbott and Joe Hockey lose their way on iron ore – by Jennifer Hewett (Australian Financial Review – May 21, 2015)

May 21, 2015

http://www.afr.com/

Pick your dollar-per-tonne figure. After a minor recovery from recent lows, the iron ore price seems to be at risk of falling back again. Certainly, there’s no sustained improvement in sight. Pick your reason.

The inevitable volatility of a global commodities market? Or Chinese futures traders relying on sentiment about oversupply, thanks to Rio Tinto and BHP Billiton’s statements about future production? Or Brazil’s iron ore industry receiving new assistance from the Chinese government? Or the big miners’ success beating back Andrew Forrest’s complaints and initial prime ministerial enthusiasm for an iron ore inquiry? Or a combination?

Australia’s most senior politicians are obviously confused about the right answer. The government’s formal backing away from an inquiry on Thursday just confirmed a belated and clumsy attempt by Tony Abbott and Joe Hockey to extricate themselves from a political contradiction. They had backed an inquiry after being persuaded by a powerful combination of forces, ranging from Forrest himself, to a ravaged budget, to radio broadcaster Alan Jones criticising the damage to the national interest.

At the time, they also thought a government-led inquiry would be better managed than the prospect of another Senate inquisition dominated by Labor and independents.

A note on the historical accuracy of this [Iron Range] novel – by Megan Marsnik (Minneapolis Star Tribune – May 20, 2015)

May 21, 2015

http://www.startribune.com/

“Under Ground” is a work of fiction based on actual events that occurred in northern Minnesota during the tumultuous iron mining strike of 1916.

All of the local characters are fictional. Although some were inspired by actual Iron Range natives, their lives and words as portrayed in this novel are imagined, placed in historical context of the times. For example, fictional character Milo Blatnik was inspired by two miners: Joe Greeni and John Alar. On June 2, 1916, Greeni led the strike walkout at the St. James mine and was followed by more than 20,000 men.

On June 22, Alar, a husband and father of three, was fatally shot in the yard of his Hibbing home as picketers marched nearby. As with the fictional character Milo, Alar’s funeral procession followed a black banner that read “Murdered by Oliver Gunmen,” photographs of which are available at the Iron Range Research Center in Chisholm, Minn. Thousands attended and his death marked a turning point in the uprising.

The “What we want is more pork chops” speech delivered in the novel by fictional character Andre Kristeva was a real speech delivered June 22, 1916, by mining clerical worker George Andreytchine.

Controversial UK potash project nears decision day – by Rod Nickel (Reuters U.S. – May 20, 2015)

May 21, 2015

http://www.reuters.com/

NEW YORK – Sirius Minerals PLC, the British company behind a controversial proposed potash mine, said it hopes to win a key regulatory approval this summer that could lead to production within four years.

Sirius aims to be the biggest producer of granulated polyhalite, which contains multiple crop nutrients such as potash, sulfur and calcium.

The company is also awaiting results of a feasibility study this summer before proceeding with the mine in England’s North York Moors National Park.

Polyhalite, unlike conventional muriate of potash (MOP), contains little chloride that is harmful to fruit crops. The company expects to sell it at a huge premium over MOP, of which there is excess global mining capacity.

“We’ve got a product that is better for the environment and better for food productivity,” said Chief Executive Chris Fraser on Wednesday on the sidelines of a BMO investor conference in New York.

There is no reason to delay the project just because there is a surplus of the conventional potash form, he said.

Westpac eyes China, India for commodities trade growth – executive – by Melanie Burton (Reuters U.S. – May 21, 2015)

May 21, 2015

http://www.reuters.com/

HONG KONG – A recent entrant in Asia’s commodities markets, Australia’s Westpac Banking Corp is ramping up to take advantage of a commodities “supercycle” that it says has at least another 30 years to run.

While some global banks have exited commodities due to more stringent regulations, Westpac is setting itself to support a deeper push into the region by its corporate customers, a senior executive told Reuters.

“The commodity cycle is still in the supercycle phase. The urbanization of Asia has not stopped – all we’re getting at the minute is a correction,” said Paul Gardner, the bank’s Singapore-based Global Head of Structured Commodity Finance.

“When you’re dealing with a 30-40 year window (of a bull cycle), are you really late, or are you just coming to the party at the right time? There were some major players who were in very early and who are already gone.”

Australia’s No. 2 lender by market value has been setting up a commodity trading desk in Singapore over the past 18 months, to focus mainly on lending in metals, as its customers tap Asia’s construction boom.