Archive | International Media Resource Articles

Another gold CEO bites the dust – this time at African Barrick – by Lawrence Williams (Mineweb.com – August 21, 2013)

http://www.mineweb.com/

African Barrick Gold’s CEO Greg Hawkins has resigned and has been replaced by Bradley Gordon, formerly with Intrepid Mines, to try and improve the fortunes of the African gold miner.

LONDON (MINEWEB) – African Barrick Gold (ABG), which has seldom seemed able to meet its operating objectives since its spin-off from parent Barrick Gold and listing on the London Stock Exchange three years ago, has announced the resignation of its Chief Executive Officer, Greg Hawkins ‘to pursue other opportunities’, and his replacement by Australian Bradley Gordon who takes over with immediate effect. Gordon resigned from his previous position as CEO of Intrepid Mines last month – presumably with the ABG appointment already settled.

Thus, Hawkins is the latest gold mining company CEO to be ousted, in this case to see if new blood can revitalise the ailing African gold miner. African Barrick stock has lost 73% of its value since its launch in 2010 and, although part of this fall is attributable to the plunging gold price and so outside management control, Hawkins is seemingly carrying the can for the company’s continual underperformance.

ABG operates three mines in Tanzania and is that country’s largest gold miner. The flagship mine is the Bulyanhulu underground operation and the others are Buzwagi (open pit) and North Mara, also an open pit operation. A fourth mine, Tulawaka, was closed down earlier this year as it was uneconomic. Continue Reading →

Amplats to cut 7,000 South African jobs, union ‘shocked’ – by Sherilee Lakmidas and Ed Stoddard (Reuters U.S. – August 19, 2013)

http://www.reuters.com/ 

JOHANNESBURG – (Reuters) – Anglo American Platinum (Amplats) said it planned almost 7,000 job cuts at its South African operations including thousands of compulsory lay-offs, drawing an angry response from a labor union and raising the risk of renewed unrest at its mines.

Amplats (AMSJ.J), the world’s top platinum producer and a unit of Anglo American (AAL.L), had aimed for 14,000 job cuts after posting its first loss last year, but lowered the target after a backlash from the government and the unions, which organized a series of strikes.

After months of consultations with government officials and worker representatives, the company said 6,000 mining jobs would go and that “approximately 900 corporate and overhead employees will also be affected”.

The addition of white-collar job cuts might alleviate some criticism of the lay-off plan, since not only blue-collar workers would be affected. But at least one union saw the decision by Amplats as a betrayal, saying the company had committed only last week to avoiding forced lay-offs.

“We are shocked. Our agreement with Amplats was to cut 3,000 jobs and those jobs would not be forced retrenchments but voluntary severance packages. Continue Reading →

UPDATE 2-Glencore seeks fresh start with $7.7 bln hit to Xstrata mines – by Clara Ferreira-Marques (Reuters India – August 20, 2013)

http://in.reuters.com/

LONDON, Aug 20 (Reuters) – Glencore Xstrata took a $7.7 billion hit on Xstrata’s mining assets on Tuesday, drastically reducing the value of early-stage projects after falling prices dragged down first-half profit.

The mining industry has been pummelled by billions of dollars in writedowns since the start of the year, with cooling prices and demand prospects denting the value of mining projects.

Glencore had been expected to follow suit once it completed the acquisition of Xstrata, and in its first post-takeover results on Tuesday it announced the figure alongside a 9 percent drop in core profit.

In absorbing the impact of a drop in commodity prices during the time it took to close the marathon takeover, Glencore wiped out all the goodwill value it had provisionally allocated to Xstrata’s mines at the time of the merger.

“We just had to value the business with a blank sheet of paper,” Chief Financial Officer Steven Kalmin said. Continue Reading →

BHP delays $14 billion Canada potash push as profit drops – by Sonali Paul (Reuters U.K. – August 20, 2013)

http://uk.reuters.com/

MELBOURNE – (Reuters) – BHP Billiton’s new chief has put his stamp on the top global miner, mapping out a cautious approach to expanding into the potash market, which it sees as its next big growth business beyond 2020.

CEO Andrew Mackenzie outlined the low-risk course as he handed down his first results, reporting a 15 percent drop in half-year profit before one-offs, which missed forecasts largely due to Australian mining tax adjustments and other non-operational items.

BHP and Glencore Xstrata wrapped up the results season for the world’s big five miners, with BHP holding up slightly better than its peers as it stepped up output of iron ore, copper, coal and oil and slashed $2.7 billion in costs in the face of sliding commodity prices.

Major miners have come under pressure to rein in spending, sell off underperforming assets and tackle debt after years of rampant spending on new mines and acquisitions as commodity prices soared. Reflecting the austerity drive, BHP said it plans to invest $2.6 billion over the next four years digging shafts at the Jansen potash project, delaying production at least until 2020 from its original 2015 target, while inviting offers for stakes in the mine. Continue Reading →

Glencore expected to writedown billions – by Reuters/Star Staff (Sudbury Star – August 20, 2013)

http://www.thesudburystar.com/

Glencore Xstrata is expected to write down the value of assets inherited from Xstrata by as much as $7 billion when it reports first-half earnings on Tuesday — the first full set of results since the takeover that created the mining giant in May.

Glencore’s management, no strangers to Xstrata given the trader’s 34% stake in the miner, have been reviewing Xstrata’s assets as owners over the past three months and they had been expected to book a hit alongside maiden results.

Analysts and an industry source said the group writedown, mostly on the value of former Xstrata assets, would likely amount to $5 billion to $7 billion.

Nickel assets — including Xstrata’s $5 billion Koniambo operation in New Caledonia — are likely to take the brunt of the pain as nickel prices languish at less than a third of their 2007 highs and supply continues to exceed demand.

Glencore’s local operations, now officially known as the Sudbury Integrated Nickel Operations, include Fraser Mine and Nickel Rim South Mine, Strathcona Mill and the Sudbury smelter. Nickel and copper are its main products. Continue Reading →

BHP reveals corruption probes by U.S., Australian authorities – by Dorothy Kosich (Mineweb.com – August 19, 2013)

http://www.mineweb.com/

A slow-moving investigation of BHP Billiton’s business practices, which began in 2009, is heating up.

RENO (MINEWEB) – U.S. and Australian authorities are cooperating on an investigation into “possible corruption” within Australian über miner BHP Billiton, stepping up a probe that began four years ago concerning BHP’s Olympic sponsorship, hospitality and gifts given to top Chinese officials, and now reportedly involves the company’s attempts to secure a bauxite project in Cambodia.

The allegations are being investigated by the U.S. Department of Justice and the Australian Federal Police as well as the U.S. Securities and Exchange Commission.

In a statement released on Friday by BHP Billiton, the company disclosed it had commenced an internal investigation when it received a request for information in August 2009 from the SEC. “As a result, the Group commence an internal investigation and disclosed to relevant authorities including the U.S. Department of Justice (DOJ) evidence that it uncovered regarding possible violations of applicable anti-corruption laws involving interactions with foreign government officials,” the company said.

“As has been publicly reported, the Australian Federal Police has indicated that it has commenced an investigation,” the company confirmed. Continue Reading →

Gold Bears Retreat as Prices Reach Two-Month High: Commodities – by Tony C. Dreibus (Bloomberg News – August 19, 2013)

http://www.bloomberg.com/ 

Speculators cut bullish and bearish bets on gold simultaneously for the first time in two months as prices advanced to the highest since mid-June on signs of strengthening physical demand.

The net-bullish position rose 18 percent to 56,604 futures and options by Aug. 13, as the 17 percent contraction in short bets exceeded the 3 percent drop in long wagers, U.S. Commodity Futures Trading Commission data show. Net-long holdings across 18 U.S.-traded commodities expanded 23 percent as the position in silver more than doubled and investors turned positive on copper for the first time since February.

Gold tumbled a record 23 percent last quarter as some investors lost faith in the metal as a store of value. The rout spurred losses for billionaire John Paulson, who joined George Soros in selling bullion holdings in three months ended June 30, government filings showed last week. Lower prices spurred demand in India and China, the top buyers, driving global coin and bar purchases to record in the second quarter and jewelry purchases to the highest since 2008, the World Gold Council said Aug. 15.

“People became more interested in holding gold as the price dropped,’ said Tom Stringfellow, the president of San Antonio-based Frost Investment Advisors LLC, which manages about $9 billion. Continue Reading →

COLUMN-Mongolia, Rio Tinto playing high stakes on copper mine – by Clyde Russell (Reuters U.S. – August 19, 2013)

http://www.reuters.com/ 

Aug 19 (Reuters) – Is Rio Tinto’s dispute with the Mongolian government over the expansion of the Oyu Tolgoi copper and gold mine the signal that the nation’s commodity boom is over, or is it just a hiccup?

Certainly, Mongolia’s reputation as a desirable investment destination and one of the few remaining countries ripe for developing natural resources has taken a battering recently.

Rio Tinto, the world’s second-largest mining company, said on Aug. 14 that it will cut 1,700 jobs at Oyu Tolgoi after a $5 billion expansion of the project was put on hold last month.

The dispute is over how the expansion gets financed, and the Mongolian parliament has been recalled from its summer recess for an emergency session to try and deal with the matter.

But the real issue is how long it will take for Mongolia to get significant amounts of money from the mine, which is slated to boost the economy by 35 percent by 2020.  Continue Reading →

Potash: growth market in a changing economy – by Emma Rowley (The Telegraph – August 17, 2013)

http://www.telegraph.co.uk/ 

Investors are betting big on fertiliser amid soaring global demand for crops.

Nearly half a kilometre under a nondescript industrial site in the Russian region of Perm, machines are gobbling up rock. Boring through the Earth’s crust, their teeth leave great whorls scraped on the freshly-dug walls, striated pink and white.

Throughout the vast web of tunnels that expands day by day, conveyor belts carry tonnes of ore to a cathedral-sized underground warehouse before the rock is taken to the surface.

These underground stores represent the fruits of an industry many believe could be of huge importance to the world economy in years to come. The piled pyramids are rich in potassium salts and, through simple processing, will be used as the fertiliser potash, the name given to these salts.

The company behind the mine, Uralkali, is far from a household name. Yet, last year it was the world’s biggest potash producer, with 9.1m tonnes.  Continue Reading →

Mining projects on Range can be safe, profitable – by Rolf Westgard (St. Cloud Times – August 17, 2013)

http://www.sctimes.com/ 

This is the opinion of Rolf Westgard, a professional member of the Geological Society of America. He teaches classes on energy subjects for the University of Minnesota Lifelong Learning program.

In 2011, we humans extracted and burned some 15 billion tons of coal, oil and natural gas, or 4,000 pounds for everyone on Earth. That put more than 30 billion tons of greenhouse gases into the atmosphere.

Nature passed over Minnesota on its way to states such as North Dakota and Texas where it placed the sedimentary basins in which fossil fuels such as oil formed. Minnesota was not totally forgotten, and we got minerals such as iron ore and the non-ferrous group of copper, nickel, cobalt, palladium, platinum, etc. We’ve dug up most of the iron. But nestled in a wide band, meandering along the Archean granite of the Iron Range, is a world-class deposit of non-ferrous metals worth billions of dollars and thousands of jobs.

Total world annual production of those metals is just 30 pounds or so per person, and their demand and price is rising. Manufacturing wind turbines, solar panels, electric vehicles, catalytic converters and smart grid power lines requires copper, nickel, cobalt, palladium and platinum.  Continue Reading →

Don’t allow sulfide mining without answers to concerns – by Paul Austin, Paul Dancic and Scott Strand (Duluth News Tribune – August 18, 2013)

http://www.duluthnewstribune.com/ 

Paul Austin of Minneapolis is executive director of Conservation Minnesota, Paul Danicic of Minneapolis is executive director of Friends of the Boundary Waters Wilderness and Scott Strand of St. Paul is executive director of the Minnesota Center for Environmental Advocacy. They wrote this for the News Tribune on behalf of the grass-roots group Mining Truth (miningtruth.org), which is promoting the four questions discussed in the commentary.

Water is written into our state’s identity: We are the Land of 10,000 Lakes. What we do to protect Minnesota’s lakes and rivers today will determine what future we leave for our children and grandchildren.

Later this summer, Gov. Mark Dayton and the Department of Natural Resources will be faced with an important decision about the future of Minnesota’s lakes and rivers. The new draft environmental impact statement for the PolyMet mining project near Hoyt Lakes is expected to be released, and the Dayton administration will have to decide how or whether the project should proceed.

The PolyMet project is the first proposed sulfide mine in Minnesota, located near waters that flow into Lake Superior. Another proposed mine by Twin Metals would operate next to the Boundary Waters Canoe Area Wilderness. Sulfide mining is different from our traditional iron mining and holds the potential for long-lasting toxic pollution.  Continue Reading →

Rigorous standards will ensure clean mines – by Frank Ongaro (Duluth News Tribune – August 18, 2013)

http://www.duluthnewstribune.com/

Frank Ongaro is executive director of Duluth-based MiningMinnesota (miningminnesota.com), which supports the development of metals mining in the state.

From President Obama to Gov. Mark Dayton, elected officials have made jobs a top priority. In Minnesota, one thing is certain: There is no better opportunity for creating thousands of great-paying jobs, providing millions of dollars in tax revenue for local governments and generating more than $2 billion in royalties for our schools than the proposed copper/nickel strategic metals mineral development projects.

Mining already represents 30 percent of our region’s Gross Domestic Product (tourism is 11 percent). And, with the development of these strategic metals projects, we easily can double the size and benefit of the overall mining industry in Minnesota.

Fortunately, we can have these jobs and the spin-off economic benefits they bring — and an environment with clean air and water. There is no debate. We all want the same thing: clean air and clean water.  Continue Reading →

Shift from ‘blame seeking’ will aid efforts to tackle SA’s AMD challenge – by Leandi Kolver (MiningWeekly.com – August 16, 2013)

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

JOHANNESBURG (miningweekly.com) – Current mining industry players are faced with the challenge of who should be responsible for and deal with the subsequent financial impact of the legacy issue of acid mine drainage (AMD).

The mining industry has been a significant driver of the country’s economy, dating back many years; however, as many of the mining houses that pioneered the industry in South Africa have moved on to other areas, or have evolved into other companies or consortiums, the challenge of assigning responsibility for current issues is a real concern, says minerals industry consultancy Venmyn Deloitte environmental industry adviser Sarah Dyke.

As South Africa’s water systems are interconnected, AMD, if not treated, could potentially decrease the country’s water supply quality, which will impact on industries, such as agriculture and manufacturing, Deloitte strategy and innovation consultant Sabatha Mhlanga says.

Out of the 120 mining companies that once mined in the Witwatersrand, only six remain, and there are about 6 000 ownerless and abandoned mines, as well as about 270 tailings dams in the area containing six-billion tons of pyrite – a catalyst for AMD. Continue Reading →

China and India may not be enough to rescue gold – by Clyde Russell (Reuters India – August 16, 2013)

http://in.reuters.com/

LAUNCESTON, Australia – (Reuters) – With gold demand slumping to the lowest in four years in the second quarter, bulls are grasping to hold on to anything positive and right now that means India and China.

If there was a bright spot in the World Gold Council’s (WGC)quarterly report, it was that demand in the world’s top two consumers surged.

India regained its lead over China by buying 310 tonnes in the second quarter, up 71 percent from the same period in 2012 and 21 percent above first quarter purchases.

China bought 275.7 tonnes in the second quarter, a jump of 87 percent from the same period last year, but 6 percent below the first quarter’s demand.

But even the strong demand in the Asian giants wasn’t enough to offset the dramatic outflows from exchange-traded funds (ETFs), which saw 402.2 tonnes of sales, more than double the 176.5 tonnes that flowed out in the first quarter. Continue Reading →

Iron ore prices moving higher as China steel production rises – by Lawrence Williams (Mineweb.com – August 15, 2013)

http://www.mineweb.com/

After a bit of a dip, iron ore prices are on the rise as Chinese steel production begins to increase again and the world’s top diversified miners will be the likely principal beneficiaries.

LONDON (MINEWEB)  – It should not have escaped anyone who follows the global mining sector’s attention that the world’s three biggest mining companies by a long way, BHP, Rio Tinto and Vale, are also the three biggest miners of high grade iron ore.

There had been much discussion of how these would fare in a Chinese downturn, given that China is by far the world’s largest importer of iron ore and there was comment that iron ore prices would fall dramatically, thus decimating the big three’s revenues and profits – exacerbated perhaps by the fact that they are all growing production with the inevitable additional costs that involves.

What the observers seemed to have failed to take into account is that China, in a recession, is still the equivalent of anyone else in a mega growth phase! Growth falling perhaps from 10% plus per annum to maybe 6 or 7% – figures western economies would give their eye teeth for! Continue Reading →