‘Deep Down Dark,’ by Héctor Tobar – by Mac McClelland (New York Times – November 20, 2014)

http://www.nytimes.com/

In 1987, a toddler who became known to the world as Baby Jessica fell into an abandoned well in a backyard in Midland, Tex., where she was stuck for 58 hours. Watching the coverage as a 7-year-old, I couldn’t get an answer from the newscasters or my parents that explained why it was taking so long for so many smart grown-ups to solve such a simple problem. Even now, I find it hard to believe that the human race can be outmatched by such a primitive adversary as a hole in the ground.

Crises of faith are the dominant theme of Héctor Tobar’s “Deep Down Dark,” the story of 33 men who were buried for 69 days in a collapsed Chilean mine in 2010. With his exclusive access to the survivors, Tobar, a Pulitzer Prize-­winning journalist, graphically recounts the quandaries that beset the men as well as their families — camped out at the mine’s entrance — the officials and rescue crews as a worldwide audience watched. There is weeping.

There is acceptance of death. There is the miners’ terror, every time the rescue drill stops, that they have been given up for dead. “The silence just destroyed us,” one man told Tobar. “Without a positive sign, your faith collapses. Because faith isn’t totally blind.” Some men find a stronger connection to God (“Omar realizes that the improbable fact of their survival also carries a hint of the divine. To be alive in this hole, against all odds, speaks to Omar of the existence of a higher power with some sort of plan for these still-living men”). Others struggle with whether to pray or to succumb to the darkness and lie down to die.

The hierarchy that gave the miners order in their workday routine is destroyed almost instantaneously. The shift supervisor buckles under the realities of the collapse and abdicates his authority.

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HISTORY: Workers at biblical copper mines ate quite well – by By Megan Gannon (Fox News.com – November 28, 2014)

http://www.foxnews.com/

LiveScience – Metalworkers who did skilled labor at biblical-era copper mines in modern-day Israel were rewarded for their efforts with well-rounded meals, new research suggests.

The metalworkers’ diet included good cuts of sheep and goat, as well as pistachios, grapes and fish brought to the middle of the desert from the Mediterranean, according to an analysis of ancient leftovers at “Slaves’ Hill,” a mining camp in Israel’s Timna Valley.

The findings imply that “Slaves’ Hill” might be a misnomer; the people who manned the furnaces probably weren’t slaves, but rather, they held a higher status because of their craft, archaeologists say. [The Holy Land: 7 Amazing Archaeological Finds]

Not-exactly ‘Slaves’ Hill’

“Somebody took care that these people were eating well,” said Erez Ben-Yosef, an archaeologist from Tel Aviv University.

Since 2012, Ben-Yosef has been leading an archaeological expedition in the heart of Timna Valley, the second biggest source of copper in the southern Levant region. (The biggest is Faynan, farther north in Jordan.) People have taken advantage of the copper deposits at Timna for millennia. There are dozens of smelting sites and thousands of primitive mining pits clearly visible in the region today. And the area is still used for copper production; the Mexican mining giant AHMSA has a stake in the region.

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COLUMN-Sliding investment, cost-cutting shows commodity boom-bust lives – by Clyde Russell (Reuters U.S. – November 28, 2014)

http://www.reuters.com/

LAUNCESTON, Australia, Nov 27 (Reuters) – Anybody who still has lingering doubts that the commodity cycle has turned bearish need only delve into two reports released this week on Australia’s resources sector.

The half-yearly report from the Bureau of Resources and Energy Economics (BREE), the government’s forecaster, showed only three projects, worth a total A$597 million ($507 million), reached a positive final investment decision (FID) in the six months to October.

This is not only the lowest number, but the lowest value for more than a decade, and is conclusive proof that investment in projects is waning under the burden of low prices and more muted demand forecasts as growth in top buyer China slows.

The other report released this week came from consultants PwC, with their annual review of mid-tier Australian miners showing companies are now trying to maximise productivity by boosting output while cutting costs.

The problem is so far these efforts aren’t bearing fruit, as prices fall faster than the companies can make improvements. “In fact, the worst may be yet to come, at least for iron ore and coal miners,” PwC said in the Nov. 25 release.

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Central bankers’ love-hate gold relationship – by Lawrence Williams (Mineweb.com – November 28, 2014)

http://www.mineweb.com/

Why are most central bankers so keen not to proceed with gold repatriation? What is the true picture for gold held in official vaults?

LONDON (MINEWEB) – One senses a bit of a momentum growing in the precious metals sector. Is this just wishful thinking from someone who is something of a long-term believer in gold and silver, or is there some substance behind the feeling? After all gold is having trouble making any kind of decisive move above $1,200, being knocked back every time it sticks its head above the 1,200 parapet. But then, despite the knockbacks, it still seems to be clinging on, just about, to the $1180s and 90s with the occasional foray down a few dollars.

On the negative side the Swiss gold referendum looks to be going to come up with a No vote after unprecedented lobbying and scaremongering from the Swiss establishment. Even so the fact that this referendum is even taking place reflects the obvious unease which is running through sectors of the European financial community regarding the true levels of physical gold held on their behalf in the US in particular.

This suggests the beginnings of a growing lack of trust in the political and financial establishment. If this trust evaporates much further then government attempts to prop up their fiat currencies, which might otherwise be failing, will be called further into question as will government statistics purporting to show things are getting better the whole time while most of the people are not seeing the fruits of the so-called financial recovery.

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Mining, independence at stake as Greenland goes to the polls – by Katja Vahl and Sabina Zawadzki (Reuters India – November 28, 2014)

http://in.reuters.com/

NUUK/COPENHAGEN – Nov 28 (Reuters) – Greenlanders go to the polls on Friday with hopes for a mineral-rich independence from Denmark foundering on the reality of a tiny, shrinking economy.

The fall of premier Aleqa Hammond last month in an expense scandal has muted the nationalist rhetoric that promised independence based on wealth from some of the largest mineral deposits on earth.

With major mining projects in limbo due to low commodity prices, regulatory instability and the bankruptcy of the owner of the most promising prospect in the country, politicians of all hues have focused on the ailing subsidised economy.

The campaign appears neck and neck. For weeks, polls showed opposition party Inuit Ataqatigiit, led by 36-year-old Sara Olsvig, would win for only the second time since 1979.

But the ruling Siumut party, now led by former policeman Kim Kielsen, is managing to distance itself from former premier Hammond’s expenses scandal. At least one poll in the past week shows Kielsen in the lead.

“Hammond accentuated all the differences between Denmark and Greenland.

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Iron-Ore Giant Vale Sees Rebound as Glut Squeezes Mines – by Juan Pablo Spinetto and Peter Millard (Bloomberg News – November 27, 2014)

 http://www.bloomberg.com/

Iron-ore prices are poised to rebound from five-year lows as Asian infrastructure demand improves and high-cost mines close, according to the top producer Vale SA. (VALE5)

The steelmaking raw material, which slumped 49 percent this year to $68.49 a dry metric ton yesterday, will return to an average range of $85 to $90 next year, Chief Executive Officer Murilo Ferreira said in an interview. Prices jumped 2.2 percent today, the most in seven weeks. Vale isn’t considering slowing its expansions because of slumping prices and is pressing ahead with the $19.7 billion Serra Sul S11D mine and logistics project, the industry’s biggest, he said.

“There was a lot of volatility in prices this year and the market is undershooting at the moment and this will bring about a correction,” Ferreira, 61, said at the company’s headquarters in Rio de Janeiro yesterday. “This correction will come through the closure of many inefficient miners of high cost and poor quality iron ore.”

Vale, Rio Tinto Group (RIO) and BHP Billiton Ltd. are maintaining their expansions betting that higher-cost producers will be squeezed out of the market. The price plunge, including a 20 percent drop in the past three months, is prompting speculation China will close inefficient mines, while Cliffs Natural Resources Inc. is considering shutting a mine in Canada.

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God didn’t make salmon streams for strip mining – by Judy Heilman (Alaska Dispatch – November 27, 2014)

http://www.adn.com/

This week I woke to yet another front-page story about a mining company destroying a salmon stream. This time it’s the Australian mining company XS Platinum Inc. that got caught turning the Salmon River in Southwest Alaska into a river of mine waste.

With mining disasters more and more common in the pages of Alaskan newspapers, it’s time to stop blindly trusting Outside mining companies with Alaska’s wild salmon streams. When XS Platinum applied for its permit to mine near the Salmon River, it promised Alaskans a “zero discharge” mine.

Instead, XS Platinum knowingly dumped enough pollution to turn the clear river into a filthy mess — so muddy that fisheries biologists couldn’t count the salmon from above.

But this mine isn’t alone. Another mine — heralded by the mining industry as an example of how mining and salmon can successfully co-exist — failed late this summer, sending billions of gallons of toxic mine waste into one of North America’s premier salmon streams.

The Mount Polley mine along the Fraser River in British Columbia is just the latest example how “state of the art” mining technology cannot stop the harm caused by massive dredging operations in and around sensitive salmon habitat.

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Iron Ore Caps Monthly Decline as Seaborne Supplies Increase – by Jasmine Ng (Bloomberg News – November 28, 2014)

http://www.businessweek.com/

Iron ore completed a monthly loss as Goldman Sachs Group Inc. said it may cut its forecast of $80 a metric ton for 2015 amid competition among seaborne producers.

Ore with 62 percent content delivered to Qingdao in China slumped 10.4 percent this month after reaching $68.49 a dry ton on Nov. 26, the lowest level since June 2009, according to data compiled by Metal Bulletin Ltd. Prices advanced 1.9 percent to $71.32 today, posting the first weekly gain in six.

The steel-making raw material has plunged 47 percent in 2014 as BHP Billiton Ltd. (BHP), Rio Tinto Group (RIO) and Vale SA expand output in Australia and Brazil, betting the increase will offset slumping prices and force less competitive mines worldwide to close. A property slump and slowdown in investment growth has set China, the biggest buyer, on course for the weakest full-year growth since 1990.

“We believe the risks are clearly skewed to the downside,” Goldman analysts Christian Lelong and Amber Cai wrote in a report e-mailed today. The New York-based bank has kept its prediction unchanged since March 2013. The raw material averaged $99.73 this year.

For now, the bank said it was keeping its average price forecasts unchanged partly because of the uncertainty related to recent Chinese statistics.

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Whatever happened to the Brics economies? – by Andrew Walker (BBC.com – November 26, 2014)

http://www.bbc.com/news/

Remember the Brics – Brazil, Russia, India, China and South Africa, the nations that were set to reshape the world economy? Two of them, China and Russia have the potential to cause some serious and rather unwelcome reshaping in the near future.

In China’s case it’s the risk that an economic slowdown could turn into something more damaging. With Russia, it’s the possible economic fallout from the conflict in Ukraine.

Four of these five countries – South Africa is the exception – were identified in 2001 as large and fast-growing economies that would have increasingly influential global roles in the future.

Today it’s China and Russia that are potentially the most troubling for the rest of the world in the near term. China’s story is one that we would inevitably have had to face sooner or later. Indeed you might say it is remarkable that it hasn’t come sooner.

China has recorded extraordinary rates of economic growth for a very long time – an average of 10% a year for three decades. But there are weaknesses. It’s based on very high rates of investment, currently running at 48% of national income or GDP.

When it’s so high there’s always a danger that many projects will turn out to be wasteful or unprofitable, undermining the finances of the investors themselves and anybody who has lent them money.

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Barrick Gold considers asset sales – by James Wilson (Financial Times – November  27, 2014)

http://www.ft.com/intl/companies/mining

Barrick Gold is open to selling a wide range of assets as the world’s largest gold miner by output tries to cut its debts after a sharp fall in the gold price, according to one of its most senior executives.

However, co-president Kelvin Dushnisky said Barrick would not sell at any cost and made clear the miner was placing faith in a reshuffled management team and the productivity of its largest mines to try to ride out the storm engulfing the sector.

Gold miners across the world are eyeing more cost-cutting and restructuring after the price of the precious metal sank to four-year lows below $1,200 per ounce this month, leaving some companies haemorrhaging cash and investor support. Barrick’s share price has retreated to levels last seen two decades ago.

The gold price fall – from $1,900/oz in 2011 – has left many miners with lossmaking operations and sparked expectations of consolidation in the sector. This year Barrick and Newmont Mining, the second-largest producer, aborted advanced talks on a potential merger.

While many analysts have speculated that Barrick could return to talks with its US rival, Mr Dushnisky said discussions were “off the table”. He also accepted that Barrick would have little investor backing to try to acquire more mines from struggling rivals.

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Turkey’s miners pay a deadly price for cheap coal – by Piotr Zalewski (Financial Times – November 27, 2014)

http://www.ft.com/intl/companies/mining

In parts of Istanbul, as in most Turkish cities, you can smell the coming of winter before you properly feel it. Just as the first cold spell arrives, a woolly, sour blanket of smoke, pumped into the air from coal-fired furnaces, settles over the city’s poor neighbourhoods.

Turks are noticeably better off than a decade ago, but with the prospect of high natural gas bills, many still rely on coal to heat their homes. More than 2m families rely on the state to provide it for free.

Under a programme launched by the ruling Justice and Development (AK) party in 2003, a government agency hands out about 2m tons of coal to underprivileged families each year.

For a country that depends on imports for roughly 70 per cent of its rapidly growing energy needs, coal appears to be both part of the solution and part of the problem.

Over the next decade, Turkey’s government plans to increase the share of coal in electricity production, from 25 to 30 per cent. To help meet its goal of total installed capacity of 120,000MWs by 2023, it also plans to tap into all the country’s coal reserves.

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Finland exploring rail connections to Arctic Sea – by by Juhani Niinisto (Shanghai Daily – November 27, 2014)

http://shanghaidaily.com/

HELSINKI, Nov. 26 (Xinhua) — Finland has one third of its territory inside the Arctic Circle, but is the only Nordic country without any seaport by the Arctic Sea.

Opportunities of seafaring courses have triggered long-term consideration of how to establish rail connections to the Arctic Sea further north beyond the Norwegian border.

The main idea so far has been to build tracks from the western part of Finnish Lapland via Sweden and Norway.

A connection via Russia remains a less likely option, but it became slightly more feasible on Tuesday when the Finnish government chose to support railroad links to a potential mine in Eastern Lapland near the Russian border.

So far, tracks towards the Artic Sea only reach the Western Lapland mining town of Kolari. Development of rail connections in Eastern Lapland moved forward on Tuesday as the government preferred rail links over road transit in arranging services for a mining project at Sokli in the east.

The owners of the potential phosphate mines, Norway’s Yara, has set public transport input as a condition for the project. The investment would extend Finnish heavy duty rail tracks to just 60 km away from the Russian border.

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Cheap energy is the new cheap labour – by John Gapper (Financial Times – November 26, 2014)

http://www.ft.com/intl/companies/mining

For companies wondering where to locate, the world has turned upside down

The price of oil keeps on falling; the shale gas boom has reduced the price of natural gas in the US to a third of that in France; Germany has appealed to Sweden for its support in expanding two coal mines; and the EU’s effort to switch to clean energy is troubled. For companies wondering where to locate, the world has turned upside down.

Cheap energy is the new cheap labour. For two decades, the biggest driving force in industrial globalisation was the gap in the price of labour between the developed world and China. That induced many industries – textiles, electronics and others – to shift production from high-cost factories in the US and Europe to places where people would work for a fraction of the cost.

Now, as the wage arbitrage between the north and south narrows, the energy gap is widening. Wage rates adjusted for productivity in China have risen to more than half the level in the US, according to Boston Consulting Group. Meanwhile, energy prices have been falling and the Opec oil-producing countries have failed to halt the decline. Some fortunate countries, especially the US, are gaining from both of these trends at once.

Although cheap fuel theoretically helps every energy-dependent country, the gains are distributed unevenly. The big beneficiary, thanks to shale natural gas, is the US. Not only is it helped by companies bringing manufacturing home but it is also an oasis of cheap gas. That is luring energy-intensive industries such as chemicals, petrochemicals, aluminium and steel.

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UPDATE 1-Former African Barrick Gold to go underground at North Mara – by Roshni Menon (Reuters India – November 27, 2014)

http://in.reuters.com/

Nov 27 (Reuters) – Acacia Mining Ltd, formerly African Barrick Gold Plc, said on Thursday it planned to start underground mining at its North Mara mine in Tanzania in the first half of 2015.

The open pit North Mara mine has a chequered past, with villagers illegally entering the site to scour tailings that may contain small quantities of gold, and some have been killed or injured by mine security guards and police.

“The North Mara decision to go underground … minimises our impact on the community, reduces the opportunity for illegal miners to enter that operation, and reduces our footprint with respect to needing land to dump waste,” Chief Executive Brad Gordon told Reuters on Thursday.

Acacia has been cutting mining costs, reducing its workforce and increasing output to counter the sharp drop in gold prices that has forced many gold and silver miners to shelve projects.

The company, unveiling its long-term strategy at an investor meeting in London, said the underground expansion was expected to produce 450,000 ounces of gold over a five-year mine life at an all-in sustaining cost (AISC) of under $750 per ounce.

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Rio Invests $350 Million in Diamond Project After Walsh Backing – by David Stringer (Blomberg News – November 26, 2014)

http://www.bloomberg.com/

Rio Tinto Group (RIO), the world’s second biggest mining company, approved a $350 million project to expand a diamond mine in northwestern Canada, weeks after Chief Executive Officer Sam Walsh flagged an investment.

Construction of the A21 kimberlite pipe at the Diavik mine, 220 kilometers (140 miles) south of the Arctic Circle, will start next year, London-based Rio Tinto said today in a statement. Rio owns 60 percent of the mine, with Dominion Diamond Corp. (DDC) holding the remainder.

The investment comes after Walsh said in an interview this month that there were “seriously good” opportunities in diamonds, a unit that had been put up for sale by former CEO Tom Albanese. Demand globally will probably rise 4 percent to 4.5 percent this year with U.S. consumption increasing as much as 6 percent, according to De Beers, the biggest producer.

“I love diamonds,” Walsh said in an interview on Nov. 10 with Bloomberg Television in Beijing, when he flagged an expansion at its Canadian diamond operation. “I think it’s a seriously good business.”

Production from the pipe is expected to start from late 2018. The expansion will ensure output at Diavik continues at existing levels, Rio Tinto said. The mine’s current production plan has output continuing until 2023, it said.

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