International Media Resource Articles – Page 691

UPDATE: World top 10 gold producers – countries and miners – by Lawrence Williams (Mineweb.com – February 3, 2015)

February 4, 2015

http://www.mineweb.com/

The last year has seen some changes in global gold production rankings, both by country and by company.

It is interesting to see how the major producers of gold are faring in the grand scheme of things – both nationally and by company, given the continuing lowish gold prices pertaining over the past two to three years.

While one may sometimes argue with the methodology, and findings, of GFMS’ global gold supply/demand statistics the consultancy’s latest report on gold includes its estimates of the world’s top gold producing nations and companies which are not so controversial and there are some changes in position and outputs which are certainly worth noting.

We last produced a similar listing based on 2012/2013 figures from rival precious metals consultancy, Metals Focus, last May and while some of the GFMS statistics may vary a little from those of Metals Focus they broadly follow the same pattern and the overall figures are comparable – perhaps not too surprising given that Metals Focus was started by ex GFMS analysts and marketers.

Notably here, according to the GFMS estimates, China has continued to see increased gold output and remains comfortably the World No. 1. But the No.2 position is now occupied by Russia, which appears to have leapfrogged over Australia to attain this ranking with 9% output growth last year.

China reaching “peak steel” isn’t all bad news – by Clyde Russell (Reuters U.S. – February 4, 2015)

February 4, 2015

http://www.reuters.com/

Feb 4 (Reuters) – A term gaining currency among China commodity watchers is “peak steel”, something that sounds ominous, especially to iron ore and metallurgical coal miners. The increasing market consensus is that China is at, or close to, reaching the maximum level of steel output and demand.

If this is the case, it means China’s steel consumption will peak at levels well below what many in the market had expected only a few short years ago. China produced a record 822.7 million tonnes of steel in 2014, roughly half of global output, according to data from the National Bureau of Statistics.

However, this was only 0.9 percent higher than the previous year, representing the slowest annual growth rate in 33 years. Even this modest increase in output was only achieved on the back of a surge in exports of steel products, which jumped 50.5 percent in 2014 to 79.35 million tonnes.

Apparent steel demand in China dropped 3.4 percent to 738 million tonnes, according to the China Iron and Steel Association (CISA).

These figures suggest that the “peak steel” proponents are probably on the right track, especially since a strong rebound in steel demand in 2015 is viewed as unlikely, given expectations of economic growth of around 7 percent and ongoing problems of oversupply in residential housing.

Joins Steelmakers in Filing Complaint with U.S. Government – by John Miller (Wall Street Journal – February 3, 2015)

February 4, 2015

http://online.wsj.com/home-page

Cliffs Natural Resources Inc. plans to join steelmakers in filing complaints over steel imported into the U.S., its chief executive said, a move that could increase pressure on the U.S. government to add more tariffs on steel products.

Under chief executive Lourenco Goncalves, who took over last August, Cliffs has been restructuring to focus on five profitable iron ore mines in Minnesota and Michigan that sell exclusively to U.S. Steel , ArcelorMittal and other steelmakers with U.S. mills.

Those mines are now vulnerable to the sudden slide in steel prices. Most steel experts have attributed, principally, to the collapse in oil prices. As energy companies have pulled back, they have canceled orders for steel pipe.

But Mr. Goncalves said in an interview that a rise in steel imports is the biggest factor in depressing prices. Steel imports rose 34% to 41.5 million during the first 11 months of 2014, according to Global Trade Information Services. “The collapse of the steel price is not about the oil price,” Mr. Goncalves said. “The reason is the avalanche of imports.”

Adopting an aggressive trade stance is the latest move in the Cleveland-based iron-ore and coal miner’s struggle to return to profitability amid falling steel, iron ore and oil prices.

[Minnesota] Copper/nickel hearing passionate – by Julia Van Susteren (Mesabi Daily News – February 3, 2015)

February 4, 2015

http://www.virginiamn.com/

Iron Range nonferrous mining issue in St. Paul

ST. PAUL — Proposed copper/nickel/precious mining on the Iron Range, always controversial and stirring strong passions on both sides, once again visited the State Capitol on Tuesday.

Citizens and mining industry supporters all had their say at a Mining and Outdoor Recreation Policy Committee hearing in the Senate Office Building. The small meeting room was crowded wall-to-wall with attendees, including many anti-mining advocates, supporters of nonferrous projects, and even a few interested lawmakers.

Executive Director of MiningMinnesota Frank Ongaro opened the meeting by citing various economic and long-term environmental benefits mining contribute to the state, local communities and the world.

Representatives from PolyMet, which is in the environmental impact statement process in advance of permitting for its project at the former LTV Mining Co. site near Hoyt Lakes, and Twin Metals Minnesota, which is not as far along for their projects near Ely and Babbitt, further testified about the importance of their ventures.

Representatives of various citizens’ groups argued passionately against the proposed mining projects, citing loss of tourism interest, contamination of pristine environments, and loss of personal property.

Exclusive – The FAA: regulating business on the moon – by Irene Klotz (Reuters India – February 3, 2015)

February 3, 2015

http://in.reuters.com/

CAPE CANAVERAL, Fla. – (Reuters) – The United States government has taken a new, though preliminary, step to encourage commercial development of the moon.

According to documents obtained by Reuters, U.S. companies can stake claims to lunar territory through an existing licensing process for space launches.

The Federal Aviation Administration, in a previously undisclosed late-December letter to Bigelow Aerospace, said the agency intends to “leverage the FAA’s existing launch licensing authority to encourage private sector investments in space systems by ensuring that commercial activities can be conducted on a non-interference basis.”

In other words, experts said, Bigelow could set up one of its proposed inflatable habitats on the moon, and expect to have exclusive rights to that territory – as well as related areas that might be tapped for mining, exploration and other activities.

However, the FAA letter noted a concern flagged by the U.S. State Department that “the national regulatory framework, in its present form, is ill-equipped to enable the U.S. government to fulfill its obligations” under a 1967 United Nations treaty, which, in part, governs activities on the moon.

Cliffs highlights huge downsizing in 2014 – by John Myers (Duluth News Tribune – February 2, 2015)

February 3, 2015

http://www.duluthnewstribune.com/

Cliffs Natural Resources officially highlighted its massive 2014 sell-off on Monday, releasing the company’s fourth quarter and year-end results that show millions of dollars lost as it shuttered and sold large swathes of its holdings.

Cliffs recorded a net loss of $7.2 billion in 2014, or $47.29 per diluted share, thanks largely to selling U.S. coal mining operations at a loss and then declaring bankruptcy at its Bloom Lake Canadian iron ore operations.

Fourth-quarter 2014 consolidated revenues of $1.3 billion were down 15 percent from 2013. The company said the decline was driven by lower revenues from the Asia Pacific Iron Ore and Eastern Canadian Iron Ore segments hit hard by a 45 percent drop in the price of seaborne iron ore as a worldwide oversupply develops.

There was good news from the company’s U.S. iron ore operations, however, as the company moves toward becoming an all-U.S., all-iron ore business.

U.S. Iron Ore’s pellet sales volume in the fourth quarter of 2014 hit 7.8 million tons, a 26 percent increase when compared with 6.2 million tons sold in the fourth quarter of 2013.

[Indonesia] House pushes for Freeport smelter location in Papua – by Ina Parlina and Raras Cahyafitri (Jakarta Post – February 3, 2015)

February 3, 2015

http://www.thejakartapost.com/

The House of Representatives is pushing the government to make copper giant PT Freeport Indonesia establish its smelter in Papua, increasing concerns over whether the company will be able to complete development by 2017 when a full ban on ore exports will be implemented.

The House’s leaders brought up the Papua smelter issue during a meeting with President Joko “Jokowi” Widodo on Monday.

The House’s deputy speaker, Agus Hermanto, claimed that the President had agreed that Freeport Indonesia should build its smelter close to its mine in Papua instead of following its plan to build in Gresik, East Java. “I say many problems will arise if the smelter is built in Gresik,” Agus said after the meeting, without elaborating.

Freeport Indonesia, a subsidiary of US-based giant miner Freeport-McMoRan Inc., is required to build a copper smelter in the country as a consequence of the 2009 Mining Law that requires mining firms to process and refine their minerals in domestic facilities.

Recently, the company said that it had signed a memorandum of understanding (MoU) to lease 80 hectares of land belonging to PT Petrokimia Gresik, located adjacent to the only copper smelter in the country, operated by PT Smelting Gresik.

Iron ore family embroiled in will dispute – by Ben Hagemann (Australian Mining – February 3, 2015)

February 3, 2015

http://www.miningaustralia.com.au/home

The daughter of late iron ore magnate Michael Wright has issued a wish list of bizarre and extravagant “needs” to increase her claim on his estate.

Michael Wright died in 2012 with an estimated worth of $2.7 billion (as reported by The West Australian; $1.5 according to The Australian), which was built thanks to mining royalties inherited from his father Peter Wright, who was a business partner with Lang Hancock.

Olivia Mead, 19, the youngest child fathered by Wright has lodged claim against the Wright estate that the $3 million trust fund (only to be accessed when she turns 30) was not adequate.

Wright’s other two daughters Leonie Baldock and Alexandra Burton have been directors of Wright Prospecting, which in 2013 won a legal dispute against Hancock Prospecting over a 25 per cent stake in the Rhodes Ridge iron ore deposit.

Mead said in the WA Supreme Court on Monday she did not have a close relationship with her father “overall”, but that she visited him at least once a week in 2012 prior to his death in April. She said Wright told her he wanted to leave property for her, but property was not bequeathed to her in the will.

How Dodd-Frank Is Failing Congo – by Lauren Wolfe (Foreign Policy – February 2, 2015)

February 3, 2015

https://foreignpolicy.com/

The campaign to stop conflict minerals is supposed to be protecting people’s lives in one of the most fragile parts of Africa. In fact, it seems to be doing the opposite.

Minerals are ruining lives. For several years now, in conversations about conflict and crisis in the Democratic Republic of Congo, this has been a common refrain.

About $24 trillion worth of gold, tantalum, tin, and tungsten are estimated to be in Congo’s eastern hills. They are dug from the fertile, brown mud there through exploitation: Kilos upon kilos of rocks and water are lifted and filtered each day for a few dollars per laborer. Minerals are smuggled, too, and help to line the pockets of the security guards, militias, and Congolese soldiers who lord over mining sites, wielding weapons and perpetrating sexualized violence against women.

By extension, the advocacy message goes, the “conflict minerals” from Congo that wind up in devices like iPhones cause rape. U.S. electronics and other expensive, shiny things fuel war. Individuals and companies must not buy dirty minerals, because exposing and cleaning up supply chains will reduce the stranglehold armed groups have on Congo’s mines.

Battered Anglo facing downgrade to junk – by Danny Fortson (The Australian – February 2, 2015)

February 3, 2015

http://www.theaustralian.com.au/

MINING giant Anglo American risks a downgrade to “junk” status as it faces billions of dollars of writedowns and plunging profits as commodity prices tumble.

It is understood that the ratings agency Standard & Poor’s is finalising a review of leading miners following the slide in commodities, including copper, coal, iron ore and platinum.

Anglo American, which controls the De Beers diamond group, is considered particularly vulnerable among the biggest ¬diversified resource companies. It is rated BBB, which is two notches above BB+, considered “sub-investment grade” or junk.

Analysts expect Anglo to be knocked down at least one notch after the price of copper, one of its key products, fell 16 per cent last month. Standard & Poor’s could take a more aggressive stance, -depending on the agency’s view on long-term commodity prices.

Any downgrade would heap pressure on Mark Cutifani, the Australian who became chief executive nearly two years ago with a mandate to revive the foundering company.

Sumitomo sees first nickel deficit in 5 years – by Aya Takada & Ichiro Suzuki (Mineweb.com/Bloomberg – February 2, 2015)

February 2, 2015

http://www.mineweb.com/

Demand will exceed production by 12,000 metric tons, compared with a 36,000-ton surplus last year. Sumitomo Metal Mining Co., Japan’s biggest nickel producer, expects global output of the metal to fall short of demand in 2015 for the first time in five years as supply from China drops.

Demand will exceed production by 12,000 metric tons, compared with a 36,000-ton surplus last year, according to Hiroshi Sueta, general manager at the Tokyo-based company’s nickel sales and raw materials department. China’s production of nickel pig iron, a cheaper alternative to the refined metal, may drop 15 percent from a year earlier to 365,000 tons, he said.

“Ore stockpiled in China will be probably exhausted by around the middle of this year,” Sueta said in a Jan. 30 interview in Tokyo. “They must review their NPI production for the latter half of this year.”

The forecast deficit represents 0.6 percent of global nickel production this year, and will help London Metal Exchange prices stabilize above the current level, he said. Output is forecast to expand 1.5 percent to 1.99 million tons.

Nickel advanced 9 percent last year, the most among the six main metals on the LME, as Indonesia, the world’s biggest producer from mines, barred unprocessed ore exports in January. The metal for delivery in three months on the LME rose 1.8 percent to $15,165 a ton on Jan. 30.

Zambia, the copperbelt under pressure – by Christopher Mwambazi (The Africa Report – January 30, 2015)

February 2, 2015

http://www.theafricareport.com/

Lusaka – The Zambian government and mining companies are at loggerheads over plans to increase mine royalties, while the people complain they are seeing no benefits.

The Zambian government plans to revise the tax system and raise royalties to triple revenue from the mining sector by 2017 and prevent tax evasion. Some mining firms have already frozen their activities over tax disputes, and others say the new reforms will lead to the closing of mines.

For their part, residents from the Copperbelt say that mining has not led to an improvement in infrastructure and services.

In the 2015 national budget, finance minister Alexander Chikwanda proposed to redesign the fiscal regime by replacing the current two-tier system with a simplified structure resulting in an increase of mineral royalty to 8% for underground mining operations and 20% for opencast mining.

The government would then eliminate the 30% corporate income tax for mining firms. Treasury sources say the new tax formula would help the government to recoup some of the nearly $2bn it believes is lost from the mining sector each year. The proposal is part of a plan to treble revenue collection from the mining sector to $1.5bn by 2017.

CORRECTED-Report criticises secrecy in Congo’s mining sector – by Aaron Ross (Reuters India – February 2, 2015)

February 2, 2015

http://in.reuters.com/

Feb 2 (Reuters) – Scores of mining contracts in Democratic Republic of Congo have not been made fully public more than six months after it joined a global resource transparency body, non-governmental organisations (NGOs) said in a report on Monday.

U.S. democracy watchdog the Carter Center and three Congolese NGOs identified 62 contractual documents for the 17 mining projects it reviewed that were not made fully available to the public even though the ministry of mines is required by law to publish them.

Congo, which competes with Zambia to be Africa’s top copper producer and is home to about half the world’s cobalt reserves, has more than 100 industrial mining projects. Investors include Glencore and Randgold.

Among the projects mentioned in the report were Mutanda Mining, a copper and cobalt project in southeastern Congo owned by Glencore and Israeli billionaire Dan Gertler’s Fleurette Group. Three amendments to Mutanda’s original contract were not published, it said.

Pieter Deboutte, who sits on the Mutanda board, said it was the responsibility of the government to publish the contracts. A senior official at the ministry of mines who was provided with an advanced copy of the report was not available to comment.

Eurasian Natural Resources Corporation and Hong Kong-listed MMG Limited were also mentioned but did not respond to requests for comment.

Commodity prices tumble as gold rallies – Scotiabank – by Dorothy Kosich (Mineweb.com – January 30, 2015)

February 2, 2015

http://www.mineweb.com/

Scotiabank has revised the gold price forecast to an average US$1,250-1,275 for 2015-16.

A safe-haven bid has re-emerged for gold, lifting TSX gold stocks, Scotiabank economist Pat Mohr noted in her latest edition of the Scotiabank Commodity Price Index published Thursday.

“After retreating to quite low levels, silver prices have also firmed up to US$17-18 per ounce, a positive development for the world’s major producers in Mexico (Peñoles, Frisco) and Peru (Buenaventura, Antamina, Volcan, Hochschild and Milpo,” she added.

However, Mohr observed, “The sharp drop in oil prices noticeably sideswiped base metals and other commodities,” as “ongoing jitters over a slowdown in China also pulled down industrial minerals prices.”

In her analysis, Mohr said, “A fight for market share in international oil and iron ore markets as well as general unease over lackluster global economic conditions and an almost ‘deflationary’ environment—particularly in the euro zone and Japan—contributed to widespread softness in commodity prices.”

With the U.S. economy among one of the few major economics expected to have a brighter outlook this year, “the recent upward spike in the U.S. dollar has created headwinds for many dollar-dominated economies and, in some cases, may even be pulling prices down,” she suggested.

Russia’s biggest miner faces Arctic prices challenge – by Polina Devitt (Reuters India – January 30, 2015)

January 30, 2015

http://in.reuters.com/

NORILSK, Russia – Reuters) – Russia’s financial crisis is posing a stark challenge to the country’s largest mining company. How can Norilsk Nickel protect the living standards of thousands of workers cut off inside the inhospitable Arctic while also satisfying its shareholders?

The slump in the ruble and a resulting rise in inflation could have an outsize effect in Norilsk, a town 300 km inside the Arctic Circle where more than a quarter of the 220,000 population work for the company, and it’s hard to shop around.

Winter temperatures in Norilsk plunge to levels that visitors can find distinctly uncomfortable, but for the isolated workers who live there any hint of a rise in the cost of living is equally unwelcome.

With the rouble down 50 percent against the dollar since early last year and Russian food inflation above 15 percent, it falls partly to the company to bear the cost of holding down prices in the grimy industrial city where it is based.

Norilsk Nickel, the world’s largest producer of nickel and palladium, owns a loss-making chain of seven shops called “Sunflower”, which have sold staples such as milk and bread more cheaply than other stores in the city since 2011.

The company also helps other retailers bring food supplies to the city and subsidizes their transport costs. It increased its workers’ salaries on Jan. 1 and plans another review on April 1, said Vladimir Potanin, chief executive and co-owner.