International Media Resource Articles – Page 697

Chilean mining firms nervous about impending labor reforms – by Fabian Cambero (Reuters U.S. – December 22, 2014)

December 22, 2014

http://www.reuters.com/

SANTIAGO – Dec 22 (Reuters) – Mining firms in Chile, the world’s top copper producer, say the government has left them in the dark over a new labor bill to be delivered to Congress this month, undermining the confidence of investors grappling with low metal prices.

President Michelle Bachelet’s socialist government says it wants to modernize collective contract negotiations and strengthen unions, though it has been vague on details. Senators close to the government have said it could seek to limit mining companies’ ability to replace workers during strikes.

The labor reform is part of a battery of measures aimed at reducing Chile’s gaping wealth gap, and Bachelet faces a tricky balancing act as mining accounts for half of Chile’s exports.

Mining companies fret the reforms will jack up labor costs and increase the power of unions in a country where strikes are relatively uncommon.

“It’s not the moment to implement a radical labor reform because we have had too many changes and each change creates uncertainty,” said Diego Hernandez, president of Antofagasta Minerals.

State-run Codelco and private firms like BHP Billiton, Anglo American, Glencore, and Antofagasta are all juggling weak copper prices, due to slacker demand from China, and surging costs.

Iron Ore Extends Drop to Five-Year Low as China Economy Weakens – by Jasmine Ng (Bloomberg News – December 22, 2014)

December 22, 2014

http://www.bloomberg.com/

Iron ore sank to the lowest level since 2009 as supply exceeds demand and China, the biggest user, contends with its weakest expansion in almost a quarter century.

Ore with 62 percent content delivered to Qingdao, China, retreated 1.8 percent to $67.90 a dry metric ton, data compiled by Metal Bulletin Ltd. showed. That’s the lowest since June 3, 2009, and extends this year’s slump to 50 percent.

The steel-making raw material is headed for the biggest annual loss in at least five years as BHP Billiton Ltd. (BHP), Rio Tinto Group and Vale SA (VALE5) expanded output, betting increased production will boost revenue and force less competitive mines worldwide to close. Gripped by a property downturn and excess capacity, China is set to grow 7.4 percent this year, the slowest full-year expansion since 1990. Australia cut its price estimate for next year by 33 percent as a surplus builds.

“The falling price this year has been far deeper than anyone anticipated,” Andrew Hodge, an analyst at Wood Mackenzie Ltd. in Sydney, said before today’s prices were released. “China has had weaker than expected demand from its own residential property sector. For the big three, they have the lowest cost operations so there’s no reason to stop producing,” he said, referring to BHP, Rio and Vale.

The market needs to absorb a surplus of about 110 million tons next year, almost double the 60 million tons in 2014, Goldman Sachs Group Inc. estimated in October. The bank forecasts a price of $80 next year.

Obama signs mining land swap measures into law – by Dorothy Kosich (Mineweb.com – December 22, 2014)

December 22, 2014

http://www.mineweb.com/

Two copper projects in Arizona and Nevada will now advance to the next stage as the National Defense Authorization Act has now become law.

The NDAA includes land swaps that benefit the Resolution Copper Project in Arizona. Rio Tinto Copper’s CEO says the passage of the land exchange at Resolution will help it establish the full potential of the resource and provides a clear road map to commercial development.

President Barak Obama has signed the National Defense Authorization Act (NDAA) into law, which includes riders containing the largest public lands package since 2009, which includes land swaps that benefit the Resolution Copper Project in Arizona and the Pumpkin Hollow Copper Project in Nevada.

A joint venture of Rio Tinto and BHP Billiton allows for the exchange of 2,400 acres of federal land at Oak Flat around the deposit for 5,400 privately owned acres of land held by Resolution Copper including riparian habitat on the lower San Pedro River.

The high-value conservations land were identified through the input from the U.S. Forest Service, the Bureau of Land Management, the Audubon Society and others. The swap consolidates ownership of the land where the mine will be developed and operated.

Turning point for coal? Japanese trading firms snap up coal assets – by Yuka Obayashi and Sonali Paul (Reuters India – December 22, 2014)

December 22, 2014

http://in.reuters.com/

TOKYO/MELBOURNE, Dec 22 (Reuters) – Only a few months ago, a potential buyer said Japanese trading house Marubeni Corp was prepared to sell a costly stake in a Canadian coal mine for as little as $1.

But a flurry of acquisitions of high-quality coal assets by Japanese firms in recent weeks signals that some trading houses at least are betting a depressed coal market where prices have halved in three years may be bottoming out.

This vote of confidence comes amid signs that coal demand in Japan and emerging markets such as India is holding up well despite weaker demand in markets such as China, where coal imports in the first 11 months fell nearly a tenth.

Japan is the world’s second-biggest coal importer behind China, importing almost 200 million tonnes a year.

Recent acquisitions include the first coal investment by Mitsui & Co in 10 years. It is purchasing a stake in a Mozambique mine operated by Brazil’s Vale, in which the trading firm has an indirect stake.

“The biggest reason for participating in the Moatize project is to retain excellent quality metallurgical coal that is scarce globally,” Tetsuya Fukuda, general manager of Mitsui’s coal division, said. “With the resource supercycle, we had been not able to buy any assets.”

Nickel Shortage Propels Philippines Mining Boom: Southeast Asia – by Ian Sayson (Bloomberg News – December 21, 2014)

December 22, 2014

http://www.businessweek.com/

Michael Defensor is racing to mine and ship nickel from projects across the Philippines to plug the gap in global supplies left by Indonesia’s ore-export curbs.

“Indonesia’s ban affected us positively,” said Defensor, chairman of Pax Libera Mining Inc. and the nation’s environment secretary from 2004 to 2006. He’s preparing four new sites for next year after opening two in the past two years. “We will maximize this window and ship as much as we can.”

The Indonesian curbs, designed to promote local processing, started in January and were upheld in court this month. The ban initially drove prices to a two-year high in May, before larger-than expected Philippine exports and slowing Chinese growth reversed the rally. Citigroup Inc. says it’s still bullish on nickel because the country won’t be able to expand supply much more and a global shortage will emerge.

Futures on the London Metal Exchange, the global benchmark for the metal used to make stainless steel, traded at $15,550 a metric ton on Dec. 19, from this year’s high of $21,625 in May. The price is still 12 percent higher for the year, making nickel the best performing industrial metal on the LME.

“Everyone will try to max out their permit,” said Ramon Adviento, a mining analyst at Maybank ATR Kim Eng Securities in Manila. “The low-hanging fruit has already been harvested even before the ban, so there is probability that the Philippines won’t meet the gap” left by Indonesia, he said.

Mining company says it’s committed to Superior’s success – by Emily Bregel (Arizona Daily Star – December 21, 2014)

December 22, 2014

http://tucson.com/

The mining company seeking to acquire a copper deposit just outside Superior wants to help the town prepare for life after the ore body is depleted and the mine shuts down.

“We want to help them be sustainable and self-sustaining,” said Vicky Peacey, Resolution Copper Mining’s senior manager for environment, permitting and community. She notes that the mine has contributed to the town’s efforts to revitalize and has supported the chamber of commerce, local schools and recreation groups. “It’s not just about mining. It’s about diversifying.”

Leaders in the mining town of Superior — who voted last year to revoke the town’s written support for the Resolution mine — agree with the company on that point, at least.

Town attorney Steve Cooper said Superior could become a tourist destination, based in part on the outdoor recreation and natural beauty surrounding the mining town.

“The area in and around Superior is beautiful,” he said, describing a plan to build a trail along Queen Creek from the Oak Flat campground to the Boyce Thompson Arboretum to the west. “We want to basically try to make the town a multi-business community, versus having a one-employer town.”

‘No hope for Harlan’: Deep in coal country, pondering future without it – by Allen G. Breed (The Associated Press – December 20, 2014)

December 22, 2014

http://www.middletownpress.com/

HARLAN, Ky. – The rest of the house is just waking as Scottie Sizemore plops down in a rocking chair on his front porch with a cup of coffee. The sun has yet to crest the ridge above, where mist clings like clouds that couldn’t quite make it over.

Sizemore is the fourth generation of his family to mine coal in Harlan County. He knows he’ll probably be the last.

For over a century, life in Central Appalachia has been largely defined by the ups and downs of the coal industry. Through all the bust years, there was always the promise of another boom. Until now.

There is a growing sense in these mountains that this downturn is different, deeper. That for a variety of reasons — economic, environmental, political — coal mining will not rebound this time.

State and federal initiatives are exploring everything from ecotourism and small farmer loans to regional tax incentives for job creators. Some here pray for a regulatory climate change that would breathe new life into the region’s mines. For Sizemore and his wife, Madonna, the answer is simple, if painful. They’re leaving.

Good environment, good jobs: We can have both – by Frank Ongaro (Mesabi Daily News – December 20, 2014)

December 22, 2014

http://www.virginiamn.com/

Frank Ongaro is executive director of Mining Minnesota, which is a group working with local citizens, businesses and other organizations to bring growth and job creation to the state through responsible development of natural resources.

But this simply isn’t a fair or accurate portrayal of the issues at hand. We are all environmentalists and we all enjoy the beauty and serenity of Minnesota’s wilderness. Our state has a lot to offer outdoor enthusiasts, and with a population above 3.5 million, there are many people who call Minnesota home who have an interest in protecting the outdoors for future generations.

A majority of these 3.5 million individuals also need jobs — jobs that support their families and provide opportunities for future generations of Minnesotans. Thankfully, we can have both — the environment and mining have coexisted for more than 130 years and with modern technologies, will continue to do so as we expand the state’s rich mining tradition.

Mining copper, nickel, platinum and palladium from one of the world’s largest, untapped source of these strategic metals in Minnesota’s Duluth Complex will provide thousands of high-quality jobs in a range of sectors, as well as the metals we all need for the growing green economy. Wind turbines and solar equipment require copper. Electric cars and rechargeable batteries use nickel and copper. The autocatalysts in cars require platinum and palladium.

Israeli billionaire fails to silence critic over mine deal – by Henry Mance (Financial Times – December 21, 2014)

December 22, 2014

http://www.ft.com/home/us

An Israeli diamond billionaire is facing defeat in an audacious attempt to use data protection laws to stifle one of his loudest critics.

Beny Steinmetz is engaged in a long-running legal battle with Global Witness, a campaign group that has raised “corruption concerns” about how BSG Resources, the mining arm of his family conglomerate, acquired rights to Africa’s largest iron ore project. Both Mr Steinmetz and BSG Resources deny wrongdoing in relation to the Simandou concession in Guinea.

Lawyers for Mr Steinmetz and three BSGR directors had tried to invoke the UK’s Data Protection Act to force Global Witness to reveal what data it held in relation to them and, if necessary, to destroy it. That move, which Global Witness said would compromise its confidential sources, was the first time privacy laws had been used in such a manner.

Last week, the Information Commissioner’s Office (ICO) rejected Mr Steinmetz’s request, saying Global Witness’s activities were exempt from data protection requirements because they were “for the purposes of journalism”. Global Witness says on its website that it campaigns “to stop elites getting away with looting entire states . . . and for an end to the exploitation of our environment”.

The case has been keenly watched by lawyers at news organisations, who foresaw a significant impact on investigative journalism had the lawsuit succeeded.

Western firms reduce Eritrean miners to ‘abject slavery’, UK MPs say – by Mark Anderson (The Guardian – December 19, 2014)

December 19, 2014

http://www.theguardian.com/uk

Early day motion slams mining companies for using forced labour in collusion with repressive Eritrean government and adding to the country’s human exodus

Western mining companies operating in Eritrea are reducing workers to “abject slavery” at their mines and worsening a human exodus that is driving more than 5,000 people out of the country every month, a group of British MPs has said.

An early day motion, signed by 41 MPs, blasts Eritrea’s poor human rights record, condemning “arbitrary arrest and detention and compulsory military service” carried out by the government.

The bill “notes with concern the collusion between the government of Eritrea and the international mining companies from the UK, Canada and Australia, which is using the forced labour of Eritreans for work in extractive industries in conditions which have been described as abject slavery”.

MPs called on the Eritrean government to allow Sheila Keetharuth, the UN’s special rapporteur on human rights in Eritrea, to travel to the country and assess claims of widespread rights violations. Keetharuth has not been allowed to enter the secretive country since her appointment in 2012.

Uralkali Gains Most in 5 Years on Output Goal, Share-Deal Delay – by Yuliya Fedorinova (Bloomberg News – December 18, 2014)

December 19, 2014

http://www.businessweek.com/

OAO Uralkali jumped the most more than five years in Moscow as the largest potash company raised its output goal even after one mine was halted by flooding and it delayed a share deal that would have left it less room to pay dividends.

“With increased capacity utilization at other mines, we intend to produce 12 million tons of potash this year to meet strong demand from our customers,” Chief Executive Officer Dmitry Osipov said in a statement. In August, Uralkali estimated annual output of the fertilizer of 11.5 million metric tons.

The potash producer advanced 14 percent, the biggest gain since May 2009, to 141.50 rubles by the close in Moscow trading, paring its loss for the year to 18 percent.

Uralkali is monitoring the Solikamsk-2 mine in Russia’s Perm region after water poured into the site last month. A sinkhole that has widened to 54 meters (177 feet) by 83 meters opened near the mine, swallowing up summer homes. Uralkali sees a high risk the mine will be completely flooded, forcing it to abandon a site contributing almost 18 percent of its capacity.

“We expect the accident to have an insignificant impact on our 2014 full-year output target,” Osipov said today.

Vale SA: Overview of the world’s largest iron ore company – by Annie Gilroy (Market Realist – December 17, 2014)

December 19, 2014

http://marketrealist.com/

Operations

Vale SA (VALE) is a Brazilian multinational diversified metals and mining company. It is the world’s largest producer of iron ore and iron ore pellets and the world’s second-largest producer of nickel. It also produces manganese ore, ferroalloys, coal, copper, PGMs (platinum group metals), gold, silver, cobalt, potash, phosphates, and other fertilizer nutrients.

Vale has mineral exploration operations in 11 countries around the globe. It operates infrastructure systems in Brazil and other regions of the world, including railroads, maritime terminals, and ports that are integrated with its mining operations.

Its main operations are divided into four main lines of business:

Bulk materials – iron ore and pellets, manganese, ferroalloys, and coal
Base metals – nickel, cobalt, copper, PGMs and other precious metals
Fertilizer nutrients – potash, phosphate, and nitrogen fertilizers
Logistics infrastructure – railroads, maritime terminals, distribution centers, and ports
We’ll discuss these in detail in subsequent parts of this series.

Will Cliffs Natural Resources Inc (CLF) Go Bankrupt? – by Troy Kuhn (Bidnessetc.com – December 19, 2014)

December 19, 2014

http://www.bidnessetc.com/

Cliffs Naturals Resources Inc stock has plunged over the last year, and its weak balance sheet points to a grim future

Cliffs Natural Resources Inc (NYSE:CLF) has had a miserable year.

The company has lost around three-quarters of its market capitalization, and Credit Suisse recently downgraded the iron miner’s price target to $1. Cliffs stock has been targeted by investors and traders as a prime candidate for a short sell, as falling iron-ore prices continue to take a toll on the miner’s earnings.

Cliffs generates 83.7% of its revenue from iron-ore sales, and iron-ore assets represent 85.8% of its overall assets. Cliffs has been in trouble for a couple of years now.

Casablanca Capital LLC recently won a proxy fight against Cliffs, which forced several changes to the miner’s board. Cliffs’ CEO and chairman Lourenco Goncalves took over the company’s management after the proxy fight.

Casablanca was of the view Cliffs should sell off its Bloom Lake mine, along with its US coal operations and Australian mines. In August, Mr. Goncalves announced a share repurchase program of $200 million, and sold a minority holding in a graphite mining company.

Vale Loses Bid to Toss Rio Tinto Suit Over Guinea Mining – by Patricia Hurtado (Bloomberg News – December 17, 2014)

December 18, 2014

http://www.bloomberg.com/

Vale SA lost a bid to dismiss Rio Tinto Plc (RIO)’s suit alleging it conspired with Israeli billionaire Beny Steinmetz and his BSG Resources Ltd. to steal rights to the world’s biggest untapped iron-ore deposit by bribing officials in Guinea.

Rio Tinto accused Vale of passing confidential information it obtained during discussions the two companies had about Vale buying a stake in the Guinea property to Steinmetz and BSGR. Steinmetz, BSGR and Vale used that information to advance their own bid for the mining rights, Rio Tinto said in a complaint filed last year in federal court in New York.

U.S. District Judge Richard Berman in Manhattan today rejected Vale’s argument that the suit should have been brought in the U.K. because the two companies had agreed to take any dispute to an English court.

The judge cited “legitimate reasons” for keeping the case in the U.S., including Rio de Janeiro-based Vale’s alleged conduct in furtherance of the racketeering conspiracy, such as meetings between the company and London-based Rio Tinto that occurred in New York.

Berman also pointed to an existing federal investigation by Manhattan U.S. Attorney Preet Bharara relating to whether there was a scheme to siphon off Guinea’s mineral wealth.

Despite rulemaking ban, US DOI will continue sage grouse fight – by Dorothy Kosich (Mineweb.com – December 18, 2014)

December 18, 2014

http://www.mineweb.com/

New Consolidated and Further Continuing Appropriations Act gives U.S. miners some breathing room from ESA and “Waters of the U.S.” designations.

RENO (MINEWEB) – After President Obama signed a $1.1 trillion omnibus bill into law, Interior Secretary Sally Jewell Wednesday attacked the rider that prohibits the U.S. Fish & Wildlife Service from writing and issuing rules related to the sage grouse, which could stymie new mining development and expansion of current mining operations in 11 Western states.

The rider for the Consolidated and Further Continuing Appropriations Act of 2015 imposes a one-year ban on new Endangered Species Act protection for the sage grouse. The rider was introduced by Rep. Mark Amodei, R-Nevada, and former president of the Nevada Mining Association, which includes a number of major U.S. gold mines within its membership.

Jewell declared, “It is disappointing that some members of Congress are more interested in political posturing than finding solutions to conserve the sagebrush landscape and the western way of life. Rather than helping the communities they profess to benefit, these members will only create uncertainty, encourage conflict and undermine the unprecedented progress that is happening through the West.”

“The consequence of this rider is that it prevents the Service from finalizing a rule that would provide certainty to landowners, giving them assurance that they can continue economic activities compatible with the conservation of the species, such as properly managed livestock and ranging activities,” said Jewell’s statement.