International Media Resource Articles – Page 715

INTERVIEW-RPT-Indonesia’s new president says he will sit down with miners – by Randy Fabi and Wilda Asmarini (Reuters India – July 23, 2014)

July 23, 2014

http://in.reuters.com/

(Reuters) – Indonesia’s new president Joko “Jokowi” Widodo said he wants to sit down with mining companies and other parties in a bid to resolve a row over mining policies that has halted $500 million of metal exports a month in Southeast Asia’s biggest economy.

The comment by the former Jakarta governor, who has a reputation for tackling entrenched interests, appeared to be a positive sign after an increasingly bitter dispute between the mining sector and the outgoing government.

Until this year, Indonesia was the world’s top exporter of nickel ore and a major supplier of copper, iron ore and bauxite. But a ban in January on exporting unprocessed ore and an escalating tax on metal concentrates have paralysed shipments.

“First, I want to sit down with stakeholders, investors, regulators and with the people to know the problem and find a good solution for them. I want to know the details,” Jokowi said in an interview at his residence in Jakarta on Saturday, before he was declared winner of the presidential election on Tuesday.

Jokowi did not say specifically how he would handle the row over the ore ban, and when pressed on the issue an aide stepped in to say “too much detail”. But mining companies will be hoping the new president can help reanimate negotiations, which had run into trouble with the administration of outgoing President Susilo Bambang Yudhyono.

RPT-COLUMN-China aluminium surplus likely to cap price rally – by Clyde Russell (Reuters India – July 22, 2014)

July 22, 2014

http://in.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, July 22 (Reuters) – Rising Chinese output is likely to act as a brake on aluminium’s 15 percent rally since May, even as the global outlook for the industrial metal improves.

It’s no secret that much of Chinese aluminium smelting capacity operates at a loss and is reliant on subsidies from local and regional governments to survive.

But the price gain in the second quarter resulted in capacity that was either idled, or about to be shut, remaining in operation, according to a July 17 report from Beijing-based consultants AZ China.

This is despite some 80 percent of Chinese smelters, representing some 20 million tonnes of annual capacity, operating at a theoretical loss, AZ China said.

The average cash cost for a Chinese aluminium smelter in the second quarter was 14,161 yuan ($2,282) a tonne, above the Shanghai Futures Exchange (SHFE) spot price of 13,435 yuan, the report said.

Still, the average cash cost for Chinese smelters was 2 percent lower in the second quarter than the first as inputs such as electricity and alumina decreased in price, allowing plants to remain in business.

Tanzania: Red Tape Dogs Tanzania’s Leading Gold Mining Firm – by Henry Lyimo (All Africa.com – July 22, 2014)

July 22, 2014

http://allafrica.com/

African Barrick Gold (ABG) is negotiating with the government to recover a whopping US$ 65 million (about 107.9bn/) as Value Added Tax (VAT) refunds accumulated over years due to overly bureaucratic procedures for refunding.

The firm enjoys special VAT relief as part of various tax incentives and exemptions extended to investors in the mining sector. ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa.

It currently operates three producing mines in the country — Bulyanhulu, Buzwagi and North Mara, as well as several exploration projects at various stages of development in Tanzania and Kenya.

The company listed on the London Stock Exchange and Dar es Salaam Stock Exchange (DSE) and is a constituent of the FTSE 250 Index. ABG is a unit of Barrick Gold Corporation, the largest gold mining company in the world, with its headquarters in Toronto, Ontario, Canada.

Tanzania is currently the fourth largest gold producer after South Africa, Ghana and Mali. The ABG Chief Executive Officer, Brad Gordon said they were in negotiations with the government to address the problem that is making procurement of local supplies expensive.

“The amount accumulated is very high and it seems its recovery would take long time.

Australia could start uranium sales to India – by Shivom Seth (Mineweb.com – July 22, 2014)

July 22, 2014

http://www.mineweb.com/

Australian Trade Minister Andrew Robb told newspersons that Australian uranium sales to India were very close.

MUMBAI (MINEWEB) – With the International Energy Agency forecasting a doubling of nuclear power generation out to 2035, Australia has said it could soon start exporting uranium to India.

Australia holds about a third of the world’s recoverable uranium resources, and exports nearly 7,000 tonnes a year. Energy starved India is looking to nuclear power to supplement its existing options to fuel economic growth.

Australian Trade Minister Andrew Robb told newspersons that Australian uranium sales to India were very close, after he attended a G20 trade ministers meeting in Sydney last week, and held talks with an Indian trade delegation.

Prime Minister Julia Gillard had started talks on supplying uranium to India during a three day official visit to the country in 2012. Gillard had reversed the ban in 2011.

With a new government at the helm in Canberra in 2013, India and Australia were aiming to complete negotiations on a civil nuclear agreement for uranium supplies by the end of the year.

Metal ETFs Lure Investors at Fastest Pace in Five Years – by Agnieszka Troszkiewicz and Luzi Ann Javier (Bloomberg News – July 22, 2014)

July 22, 2014

http://www.bloomberg.com/

Investors are buying metals from zinc to aluminum at the fastest pace since 2009, betting demand gains will tighten supply, just as Citigroup Inc. and Macquarie Group Ltd. predict this year’s rallies will end.

Exchange-traded funds in the U.S. backed by base metals took in new money this year equal to 18 percent of their market capitalization, more than any commodity group, data compiled by Bloomberg show. Hedge funds are the most bullish on copper in at least eight years, after spending March and most of April betting prices would drop. The Bloomberg Industrial Metals Subindex is heading for its biggest annual gain since 2010.

Pickups in global manufacturing and auto sales, and gains in U.S. housing, improved prospects for metals used in everything from appliances to building materials. While Citigroup and Macquarie say rising output of some metals and weaker Chinese demand may undercut prices, the biggest gains among 22 raw materials tracked by the Bloomberg Commodity Index since March have been nickel, zinc and aluminum.

“Base metals seem to have caught investors’ attention once again,” Vivienne Lloyd, an analyst at Macquarie in London, said in a telephone interview. “Probably the most eye-catching story has to be nickel. It’s got people talking, and the appearance of deficit has been bounded around the concept of deficit in several markets.”

Shaping the agenda for a sustainable mining industry – by Nigel Court (Australian Mining – July 22, 2014)

July 22, 2014

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

According to the UN Global Compact-Accenture CEO Study on Sustainability, 63 per cent of chief executives expect sustainability to transform their industry within the next five years. Mining and metals companies, in particular, have an important role to play in the evolution to a more sustainable world.

With operations on almost every continent, and materials integrated into most products and services, the sector is uniquely positioned to contribute to and influence this transition.

To successfully navigate this shift though, bold thinking is required, and those that look to shape the outcome rather than react to it will be best positioned for success.

But what defines “sustainability”? According to the World Economic Forum (WEF) Scoping Paper: Mining and Metals in a Sustainable World, developed in partnership with Accenture, a sustainable world will require the mining and metals sector to reliably and responsibly provide materials and products to global economies and communities.

By 2050, alternative measures of success will exist beyond profit and loss, where environmental and social costs, as well as their impacts, are considered and accounted for. The mining and metals sector has an opportunity now to strategically consider how these trends could affect both the demand for products and the means of providing sufficient supply.

Eastern Promise: Is Kazakhstan our new mining hotspot? – by Cole Latimer (Australian Mining – July 22, 2014)

July 22, 2014

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

Mining is full of quiet achievers; be it individuals, companies, or even countries.

Globally speaking Australia, Canada, South Africa, China, India and the US are in focus every day, but what about the countries that are the quiet achievers?

What about Chile, Ghana, Kazakhstan? Kazakhstan has been touted as one of world’s best endowed states when it comes to high class deposits, if perhaps one of the world’s most overlooked.

It is the world’s largest uranium producer under IAEA standards, the fourth largest copper producer (with 40 million tonnes in proven reserves), has the world’s ninth largest proven gold reserve and almost the same levels of zinc, but often fails to rate a mention.

As Austrade states “Kazakhstan is one of the world’s most promising emerging markets for natural resources”, and importantly for Australian operators it is looking to double mineral production within the next five years. Kazakh president Nazarbayev outlined a gold production goal of 70 million tonnes per year before 2015.

This has created a high potential for Australian operators, with the potential to rate as highly as China, after it rated ahead of the major Australian trade partner, ranked at 59th according to the World Bank’s 2010 ‘Doing Business’ survey.

UPDATE 1-UK watchdog upholds $770,000 fine on “king of mining” banker – by Kirstin Ridley (Reuters India – July 22, 2014)

July 22, 2014

http://in.reuters.com/

LONDON, July 22 (Reuters) – Britain’s financial watchdog has upheld a 450,000 pound ($768,000) fine on former JPMorgan banker Ian Hannam – a prominent dealmaker once dubbed the “king of mining” – for market abuse after a protracted court battle.

In an effort to clear his name, Hannam had fought to overturn the Financial Conduct Authority’s (FCA) initial findings and fine of 2012. But in May, he lost his appeal in a landmark case that fuelled a high-level debate about how confidential information should be treated during deals.

The former soldier, who became one of London’s most prominent investment bankers renowned for his bulging contacts book and knack for a new idea, was awaiting news about whether the original FCA fine would be upheld – one of the largest levied against an individual in Britain.

Imposing the penalty, the head of the FCA’s enforcement and financial crime division Tracey McDermott urged all financial professionals to pay close attention to a judgment that did not question Hannam’s integrity, but sought to bring clarity to the grey area of what constitutes acceptable business conduct.

“It (the Tribunal judgment) should leave market participants in no doubt that casual and uncontrolled distribution of inside information is not acceptable in today’s markets,” she said on Tuesday.

Atlas Copco, Sandvik Chiefs Signal End to Mining-Equipment Woes – by Niclas Rolander (Bloomberg News – July 18, 2014)

July 22, 2014

http://www.bloomberg.com/

Upbeat comments from Swedish mining-equipment makers Atlas Copco AB (ATCOA) and Sandvik AB (SAND) may be an early sign of a recovery for a business that’s been in a two-year decline as customers postponed investments amid slumping commodity prices.

“The downward pressure that we have experienced for quite some time is not there in the same way,” Sandvik Chief Executive Officer Olof Faxander said on a conference call with journalists yesterday. “There is stability at the current level, and that is a positive change.”

Faxander’s comments echo those of Ronnie Leten, CEO of Stockholm crosstown rival Atlas Copco, who said on July 16 he’s seen an improvement in demand for mining products late in the second quarter.

After a surge in mining investments, fueled by a decade-long boom in metal prices, BHP Billiton Plc (BLT), Rio Tinto Plc (RIO) and Vale SA (VALE3) are cutting investments, favoring cash handouts to shareholders instead. BHP, the world’s largest mining company, expects spending on new projects and exploration to have been $16.1 billion in fiscal 2014, 25 percent lower than in the previous year, and Rio Tinto last year lowered its capital expenditure by 26 percent to $12.9 billion.

“The fact that both CEOs feel a bit happier talking about it as a little more positive trend is clearly helpful, and it’s probably a bit earlier than I thought,” Alexander Virgo, an analyst at Berenberg in London, said in an interview. “We ought to be somewhere near the trough.”

Wary investors slow to warm to Barrick Gold’s latest shakeup – by Euan Rocha (Reuters U.S. – July 21, 2014)

July 21, 2014

http://www.reuters.com/

(Reuters) – Worried they are being given the cold shoulder by an imperious leadership, shareholders of Barrick Gold Corp, the world’s biggest gold miner, are taking a “show me” approach to the company’s latest management shakeup.

Barrick said last week that Chief Executive Jamie Sokalsky will leave the company in September. He will be replaced by two co-presidents, a move that concentrates power in the hands of Executive Chairman John Thornton, a man handpicked for the job by Peter Munk, who founded the company and ran it his way for decades.

“The concern in this situation is that the person setting the strategy does not listen to the shareholders, who are the real owners of the company,” said Chris Mancini, an analyst at Gabelli Gold Fund, which owns more than 2.4 million shares in Barrick according to Thomson Reuters data.

“There was a concern within the market that Mr. Munk was not listening to shareholders…And so if Mr. Thornton also doesn’t listen to shareholders that could be a problem again.”

Munk stepped down as chairman in April in the face of investor criticism, and with the exit of Sokalsky, Thornton is now both more free and under greater pressure to map out a clear strategy to cut Barrick’s lofty debt levels, boost profits and eventually raise dividends.

Mozambique trying to ease coal companies’ pain, but no tax breaks – by Pascal Fletcher (Reuters Africa – July 21, 2014)

July 21, 2014

http://af.reuters.com/

MAPUTO (Reuters) – Mozambique is discussing with its foreign coal mining partners ways to help them ride out depressed markets but will not be offering special tax breaks to ease the pain, its mineral resources minister said on Monday.

Esperanca Bias told Reuters the government understood that companies such as Vale of Brazil and Rio Tinto, which helped Mozambique to start up in 2011 as a coal producer and exporter, were feeling the pain of depressed global prices for coal used in steelmaking and generating power.

The southern African nation, which still bears the scars of a 1975-1992 civil war, has the world’s fourth-largest untapped recoverable coal reserves, estimated at over two billion tonnes.

Vale is investing billions of dollars on rail and port networks to bring greater volumes of coal to the market, up from a current export capacity of five million tonnes per year. It is targeting 22 million tonnes by 2017/2018.

But Vale, which announced an accumulated loss of $44 million for Mozambique operations in the first quarter, says it urgently needs to cut operating costs to remain competitive.

“We’re studying this,” Bias said on the sidelines of the 5th Mozambique Coal Conference in Maputo. “We are working on it to see what can be done from our side.” she added.

Gold Diggers Revive French Exploration as Prices Drive Hunt – by Francois de Beaupuy (Bloomberg News – July 21, 2014)

July 21, 2014

http://www.businessweek.com/

In a field near Saint-Pierre-Montlimart, a small hamlet with a turreted church in western France, Jack Testard and Patrick Lebret dig up some earth with an agronomic drill and put it in a plastic bag.

The president and the chief geologist of a French mining exploration startup owned by Australia’s Variscan Mines Ltd will send dirt samples from the field, which is in an area that was home to a gold mine until 1952, to a laboratory in southern France to look for “mineral anomalies” the company is betting will show evidence of the precious metal.

“There are a lot of attractive points to prospect in France,” Testard says, as he points to a map with yellow dots representing areas where traces of the metal have been found. “It’s a really interesting time to prospect gold because the price is higher than before” and extraction technologies “are much more modern.”

Although France hasn’t historically been a large producer of gold, soaring prices of the metal are bringing companies to its door. By granting the first exploration licenses in mainland France in more than two decades to Variscan, Economy Minister Arnaud Montebourg is trying to revamp the country’s mining industry and cut reliance on imports of metals such as rare earths critical for military equipment and renewable energy.

The French exploration push comes even as mining companies extend cuts in spending for a second year.

EPA’s new Pebble battle plan stokes fears of wider impact – by Dorothy Kosich (Mineweb.com – July 21, 2014)

July 21, 2014

http://www.mineweb.com/

U.S. EPA rejects its proposed veto of the Pebble Project in favor of ratcheting down how many miles of streams and acres of wetlands can be disturbed by the mine.

RENO (MINEWEB) – Alaska’s Congressional delegation has expressed concerns that the Environmental Protection Agency’s latest plan to stop the development of the Pebble Mine in Alaska will go far beyond the Pebble project.

Instead of issuing a blanket prohibition of developing Pebble to protect the Bristol Bay watershed, based on EPA’s effort to broaden the scope of its Clean Water Act section 404(c) authority, EPA now is trying to restrict fill activities at the project by proposing caps on how many miles of streams and acres of wetlands could be lost, which may severely impact the Bristol Bay fishery.

The Bristol Bay watershed produces half of the world’s wild sockeye salmon

In a news release issued Friday, EPA asserted that the mine waste produced by the Pebble copper-gold-molybdenum project would fill a major football stadium up to 3,900 miles, while its “massive mine tailings impounds…would cover 19 square miles.” The agency suggested Pebble would fill in 1,100 or more acres of wetlands and re-route streams to more than 20% of daily flow.

The Clean Water Act requires a section 404(c) permit from the U.S. Army Corps of Engineers before any person can place dredged or fill material into streams, wetlands, lakes and ponds.

How the mining zombies found a future in technology – by Tess Ingram (Australian Financial Review – July 21, 2014)

July 21, 2014

http://www.afr.com/

Failed listed resources companies are finding a profitable future above ground – in technology.

Since January, at least eight struggling resources companies, including Latin Gold and Macro Energy, have merged with technology companies. Start-ups and companies looking for alternative capital raising mechanisms are using the “zombie” companies as shell vehicles for backdoor listings on the Australian Securities Exchange.

Last week, Perth-based Intercept Minerals announced plans to acquire US online streaming business xTV for $12.5 million.

Operating conditions are difficult for the small end of the resources sector. The median spend on exploration activity fell 27 per cent in the first quarter, BDO’s March Explorer Quarterly Cash Update said, noting that it was the biggest such decrease since it started looking at the trends.

Perth-based analyst Peter Strachan estimates that more than two thirds of listed resources companies have less than $2 million net cash.

“Over the last few years there has been a capital strike,” Mr Strachan said. “A lot of exploration companies are sitting around watching the paint dry and thinking about how to make some money.”

Phosphate: Morocco’s White Gold (Bloomberg News – November 04, 2010)

July 21, 2014

http://www.businessweek.com/

(Please note, this article was published in November 2010.)

In May 2009 a petite brunette from Paris wearing black heels scrambled up a pile of mine tailings on the outskirts of the Moroccan town of Khouribga. From up there, Béatrice Montagnier, a hotel specialist with the hospitality consulting firm Horwath, took in the view: parched plains scoured by bulldozers; an old warehouse baking in the sun; a jumble of two-story concrete block homes with a rectangular minaret beyond them.

She spun around 360 degrees snapping photos with her pink cell phone and imagining the future: a planned 800-acre resort project that would attract visitors from around the world. How many hotel rooms would they need? she wondered. Should it be three stars or four? And where would the museum be going? There was one issue—project funding—about which Montagnier had no questions. The estimated $1 billion needed to build the resort would come from the ground beneath her feet.

Miners have been working in Khouribga for almost a century, but only now is the area poised to become central to the global economy. Back in the 1920s pioneers started tunneling through the earth here, digging through layers of sediment formed under an ancient sea, looking for phosphate-rich rock and occasionally plucking out the tooth of a 30-million-year-old shark. The phosphate extracted from the rock, used in fertilizer, detergent, food additives, and more recently lithium-ion batteries, sold for decades in its raw state for less than $40 per metric ton. Those days are gone. It’s currently trading at about $130.