International Media Resource Articles – Page 717

UPDATE 1-Iron ore at 7-week high, closes in on $100 as steel strengthens – by Manolo Serapio Jr (Reuters India – July 15, 2014)

July 15, 2014

http://in.reuters.com/

SINGAPORE, July 15 (Reuters) – Iron ore climbed to its highest level in almost seven weeks, moving closer to $100 a tonne, as firmer steel prices in top market China spurred buying interest in the raw material.

China’s bid to push infrastructure spending to boost its economy lifted steel futures in Shanghai on Tuesday to their highest since late May. That has helped increase purchases of spot iron ore cargoes, raising chances that prices will bounce back to $100 per tonne after falling nearly 30 percent this year.

Iron ore has risen 10 percent since dropping to a 21-month low of $89 in mid-June, so far the trough this year for prices that dropped below the $100 support level in May.

Benchmark 62-percent grade iron ore for immediate delivery to China .IO62-CNI=SI rose 1 percent to $97.90 a tonne on Monday, the highest since May 27, based on data compiled by Steel Index.

“There’s a chance that the momentum can be sustained because steel prices are moving up. Definitely the government is going to help infrastructure spending and that should lend more support to steel prices, and also iron ore,” said a trader in Shanghai.

New company buys into proposed copper mine in northeast Minnesota – by John Myers (Twincities.com – July 14, 2014)

July 15, 2014

http://www.twincities.com/

TAMARACK, Minn. — A proposed copper mine in northeast Minnesota appears to have fresh legs with a new company buying into the project.

Talon Metals Corp. is buying at least 30 percent of the Tamarack project from Kennecott Mining to develop the copper-nickel-platinum mine near the small town of Tamarack along the Aitkin-Carlton county line.

Talon said it also has a “potential pathway” to take over 100 percent of the project if Kennecott chooses not to develop the mine. Talon will pay $7.5 million for the initial 30 percent stake in the Tamarack project and has agreed to spend another $30 million for additional exploration during the next three years.

Utah-based Kennecott has spent the past 14 years obtaining mineral rights and drilling test borings across the boggy terrain located about 45 miles west of Duluth, but the project had been on the back burner for several years with little or no activity.

It’s not clear what Talon’s entry will mean for the project, which is still in the exploratory stage, but additional test drilling is set to start later this month.

Officials with British Virgin Island-based Talon recently said some 124,700 feet, or 23.7 miles, of drill core samples from the area have been analyzed with geologists estimating more than 10 million tons of mineable ore below.

Ivanhoe Mines reports ‘exceptional’ grades from first Kipushi assays – by Henry Lazenby (MiningWeekly.com – July 14, 2014)

July 15, 2014

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

TORONTO (miningweekly.com) – Africa-focused project developer Ivanhoe Mines on Monday reported that the first batch of assay results from the company’s underground diamond-drilling programme at the Kipushi copper/zinc/germanium/lead and precious-metals mine, in the Democratic Republic of Congo, had confirmed initial visual estimates of high-grade zinc and copper mineralisation in both the Big Zinc and copper-rich Serie Recurrente zones.

Among the first significant results were three holes drilled to validate historical models of the down-plunge continuity of Big Zinc mineralisation, which returned zinc grades of 40.9% over 348.5 m, 44.8% over 339.4 m and 33.3% over 305.8 m.

The Canadian firm said the down-plunge geometry of the holes did not allow it to estimate the true widths of the deposits.

The exploration programme found that internal zones of exceptionally rich mineralisation in the first two holes, KPU001 and KPU002, returned zinc grades of 60.4% over 35.1 m, 56.3% over 18 m and 56.6% over 71 m. These internal zones also returned germanium grades of 87.2 g/t, 120.4 g/t and 111.9 g/t respectively.

An internal copper/silver/germanium-rich zone in the third hole, KPU003, graded 6.1% copper, 44.5% zinc, 144 g/t silver and 66.9 g/t germanium over 31 m from 197 m. Historical resource estimates at Kipushi excluded silver and germanium.

KPU003 also discovered a zone grading 58.6% zinc and 293.8 g/t germanium over 22.3 m, about 180 m below the historical measured and indicated resources.

Gold Has Biggest Loss of 2014 as Portugal Concerns Ease – by Luzi Ann Javier (Bloomberg News – July 14, 2014)

July 14, 2014

http://www.bloomberg.com/

Gold futures posted the biggest decline in almost seven months as Portuguese banking concerns eased and equities gained, diminishing demand for haven assets.

Portuguese 10-year government bonds were set for the biggest two-day advance in a month on speculation that Portugal would contain financial woes at one of its banking groups. The Standard & Poor’s 500 Index added as much as 0.6 percent after Citigroup Inc. reported profit that topped analysts’ estimates.

The drop comes after gold capped the longest run of weekly gains since 2011, partly as missed payments on notes by a parent company of Portugal’s second-biggest bank renewed concern that Europe hasn’t resolved its debt crisis. EU spokesman Simon O’Connor said July 11 that the country has taken steps to shore up its financial system. Goldman Sachs Group Inc.’s Jeffrey Currie reiterated his outlook for lower bullion prices as confidence increases in the economic recovery and inflation remains tame.

“A strong stock market and some stability in the EU” are pressuring gold, Peter Thomas, a senior vice president at Zaner Group LLC in Chicago, said in a telephone interview. “A lot of people were looking at Portugal as a domino effect, and as we saw, O’Connor prevailed and it didn’t have a significant impact.”

Why the Resource ‘Super-Cycle’ is Still Intact – by Rick Rule (MoneyMorning.com.au – July 13, 2014)

July 14, 2014

http://countingpips.com/

Rick Rule is Chairman of Sprott Global Resource Investments

I believe we are still in a resource ‘super-cycle’ — a long period of increasing commodity prices in both nominal and real terms.

The market conditions of the past two years have made many observers doubt this assertion. But I believe the current cyclical decline is a normal and healthy part of the ongoing secular bull market.

The most striking analogy to the current situation occurred in the epic gold bull market in the 1970s. You may recall that gold prices advanced from US$35 per ounce to $850 per ounce over the course of that decade.

You may also recall that, in 1975 and 1976, a cyclical decline saw the price of gold decline by 50% — from about $200 per ounce down to about $100 per ounce. It then rebounded over the next six years to $850 per ounce.

Investors who lacked the conviction to maintain their positions missed an 850% move over six short years. The current gold bull market, since its inception in 2000, has experienced eight declines of 10% or greater, and three declines, including the present one, of more than 20%.

This volatility need not threaten the investor that has the intellectual and financial resources to exploit it.

Newmont Gives Glittering Opportunities for Ghana’s Talent – by Joe Kirschke (Engineering and Mining Journal – July 3, 2014)

July 14, 2014

http://www.e-mj.com/

Since Portuguese navigators first arrived in the 15th century, mining, production and export of gold have been integral to Ghana’s history. Through the later christening of a “Gold Coast” by British colonialists and the emergence of sub-Saharan Africa’s first sovereign nation in 1957, Ghana today also hosts the continent’s No. 2 reserves of the ore.

Yet as in all too many developing nations, Ghana’s gold mining business, representing 90% of 2011 mineral exports—and $2.7 billion by Q3 2013—is not always a kind one. Fatalities from artisanal mining have been toxic as its mercury, while unrest involving illegal Chinese miners culminated in 169 deportations to their mainland last year. “Gold is a curse to this nation!” thundered a columnist in The Chronicle, a local newspaper, shortly thereafter.

But many elements of Ghana’s mining culture—in particular Accra’s ratification of U.N. International Labor Organization (ILO) standards—reflect positive clarity, too. Others include worker apprenticeship programs at Newmont Mining Corp.’s Ahafo and Akyem projects—samples of how, via smart Corporate Social Responsibility (CSR), profits and prosperity are sparkling hand-in-hand in one of Africa’s most mature democracies.

The apprenticeships date back to 2004 when 722 local men and women joined the construction phase of the Ahafo mine ahead of Q3 2006’s first production, said Adiki Ayitevie, communications director for Newmont Africa. The program was soon upgraded to a “Semi-Skilled Metals Construction Labor Program,” wherein 324 young men and women were trained in metal working and safety; the World Bank’s International Finance Corp. (IFC) investment wing noted Ahafo was already ahead of schedule, given strong community engagement.

In search of yield – by Allan Seccombe (Miningmx.com – July 14, 2014)

July 14, 2014

http://www.miningmx.com/

[miningmx.com] – NEAL Froneman can always be relied upon to spring a surprise. Whilst head of Uranium One in 2007, he took the company into a partnership with former Soviet assets owned by Kazakhstan. It’s what you might call ballsy.

Now, as the leader of Sibanye Gold, South Africa’s largest gold producer, he is considering a foray into platinum – a move his critics think is full of potential potholes. At Uranium One, the goal was market share; at Sibanye Gold, it’s dividends, or in investment-speak, yield.

Froneman has the backing of key shareholders for such a strategy, but it could be risky, especially if he doesn’t get exactly the right project. Yet, if the gamble pays off it will cement Sibanye as a must-have share for investors attracted to dividend flows.

“When you are a yield player, the sustainability of your yield is actually very important from a valuation point of view,” Froneman said in an interview at his offices, formerly a hospital for Libanon mine, the west Rand mine Sibanye Gold owns.

“We’ve been engaging our shareholders on a very high level on the strategy of the company. We’ve brought them into the company based on free cash and dividend yield.

They’ve made it very clear that provided as it’s along the lines we discussed earlier, they would be supportive in principle, but it will depend on the particular transaction.

Nova asset ‘world class’, says Sirius as it publishes DFS – by Esmarie Swanepoel (MiningWeekly.com – July 14, 2014)

July 14, 2014

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

PERTH (miningweekly.com) – A definitive feasibility study (DFS) into nickel developer Sirius Resources’ Nova project, in Western Australia, has confirmed that the project’s low cash cost would allow it to fall in the lowest quartile of nickel producers globally.

Sirius reported on Monday that the Nova project was expected to generate net cash flow of A$2.74-billion from a nickel revenue of some A$4.53-billion, over the project’s ten-year mine life.

C1 cash operating costs after by-product credits were forecast to be A$1.66/lb nickel in concentrate, which was better than the 2013 scoping study estimates.

The DFS slightly increased the expected capital expenditure for the project to A$473-million, up from the A$471-million estimated in the scoping study, with the capital cost now including extra risk mitigating measures.

The DFS was based on a processing rate of 1.5-million tonnes a year, to deliver about 26 000 t/y of nickel, 11 500 t/y of copper and 850 t/y of cobalt over a ten-year mine life.

The study was based on a maiden probable ore reserve of 13.1-million tonnes, grading 2.1% nickel, 0.9% copper and 0.07% cobalt, for 273 000 t of nickel, 112 000 t of copper and 9 000 t of cobalt.

Are we due for another massive gold and silver price smash? – by Lawrence Williams (Mineweb.com – July 14, 2014)

July 14, 2014

http://www.mineweb.com/

A big rise in gold and silver shorts held by the big commercial banks not seen since the 2013 gold price smashdown, could suggest a repeat is in the offing.

LONDON (MINEWEB) – The signs are all there. The big investment banks – JPMorgan in particular – which have the financial clout to move the markets on their own through massive paper sales in the futures markets have, it is reported, been building short positions in gold and silver to a level not seen since just ahead of the big gold price smashdown of April last year.

Is history about to repeat itself? If we get another high profile bank analyst issuing a strong ‘sell short, or ‘slam dunk sell’ gold recommendation in the next few days then it may presage another attempt to knock the gold price, and the silver price, down very sharply. As was shown last April, such a move could negate any gold price gains so far this year – and more.

As Ed Steer commented in his most recent newsletter in an analysis of the latest COT report which showed that the Commercial net short position on COMEX increased by 5,548 contracts, or 554,800 troy ounces. The Commercial net short position now stands at 16.6 million troy ounces. “You’d have to go back to March of 2013 to see the Commercials holding this big a net short position in gold.

It was from that point in March of last year where gold got clocked for $400 the ounce by the end of July.

BHP sell-off could undo Billiton deal – by Danny Fortson (The Australian – July 14, 2014)

July 14, 2014

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

The Sunday Times – A FEW days after Paul Anderson unveiled the largest merger in the history of the mining industry, the American boss of BHP went on a Sunday talk show to put politicians’ minds at rest. They were concerned that BHP, the 116-year-old national champion known as “the Big Australian”, was about to be lost to London.

Mr Anderson and Brian Gilbertson, head of smaller rival Billiton, had just announced a $US28 billion tie-up that would create a new natural resources Goliath.

Billiton was already listed in London. BHP, meanwhile, ran its giant oil operation from London. A relocation of the group headquarters from Melbourne seemed a distinct possibility. After all, the combined group would stretch across five continents and produce everything from diamonds and oil to nickel and iron. Why not run it from Europe’s financial capital?

The fears, Mr Anderson assured, were misplaced.

He said the merger was “a win-win”. There would be housekeeping to be done but a headquarters move would not be part of it. “I’m sure there will be two or three things in the portfolio that we will want to sell off … once we put the companies together,” he said.

Infrastructure deficit thwarting investment [Africa] – by Pimani Baloyi (MiningWeekly.com – July 11, 2014)

July 11, 2014

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

A lack of infrastructure in several African countries continues to hinder investment in new mining projects and efficient operations at existing mining operations, says multidisciplinary mining and engineering consulting firm SRK Consulting.

Company chairperson and corporate consultant Roger Dixon tells Mining Weekly that the lack of infrastructure on the continent has affected the start-up of several coal and iron-ore projects, as mining companies consider effective materials-handling infrastructure as an imperative precondition for the viability of mine operations.

“When mining companies consider whether to start a mining operation, the cost of a rail line and a port to transport . . . will often outweigh the cost of the mine itself.

“For mines that have been established despite inadequate infrastructure – that is, when a mine has to generate its own electricity or transport its ore by road instead of rail – operating costs are usually much higher than what they would have been, had there been adequate, well-run infrastructure,” Dixon explains.

This exposes mining operations in Africa to economic risk and reduces the operations’ expansion opportunities, as well as their opportunities to impact on the economies of their host countries. Dixon adds that host communities and governments expect mining companies to improve the socioeconomic conditions of host communities.

Geologists seek work – any work – as mining boom goes bust – by James Regan (July 11, 2014)

July 11, 2014

http://www.reuters.com/

SYDNEY – (Reuters) – After 25 years working around the world as a highly paid geologist earning a six-digit salary, Phil Scheimer is back in Australia weighing up his future prospects: day labourer or pizza delivery man.

The collapse of the global mining boom is decimating the ranks of working geologists. With little chance of employment, many are being forced into unwanted career changes to pay the bills.

“I just want the phone to ring and for someone to say we’ve got work for you, any work,” says Scheimer from his home in Perth, a city in western Australia that rode the mining boom over the past decade but is now facing tens of thousands of people returning from mining camps jobless.

While scores of truck drivers, equipment operators, mechanics and other mining staff have also seen their numbers pared, geologists are among the hardest hit as companies abandon exploration and concentrate on working existing mines.

“Times are dire,” said Perth-based geology consultant Wendy Corbett. “I have been in the exploration industry for 41 years and this is the worst I have ever seen it.”

A second unemployed geologist, who has explored for nickel in Australia and Africa, said he had recently completed a three-day barista’s course and hoped for a steady paycheck after interviewing with a Sydney coffee house.

EDITORIAL: Gloomy outlook for SA economy (Business Day – July 11, 2014)

July 11, 2014

http://www.bdlive.co.za/

THE real economy is limping along, if Thursday’s mining and manufacturing numbers are anything to go by.

That doesn’t necessarily mean we are in a recession, technically speaking. But it does confirm that economic growth is likely to be extremely weak this year.

It suggests, too, that the Reserve Bank’s monetary policy committee will have an interesting time (as always) when it meets next week. That is especially so given the latest set of minutes from the US Federal Reserve, which confirm that “tapering” will end in October — but don’t provide clear signals on the big question of when exactly the Fed will start hiking interest rates.

It’s an important issue for our central bankers because if they are looking to ensure SA is not behind the curve on interest rates, it would be good to have a notion of what that US curve might look like.

But the data on SA’s economic performance are likely to weigh more heavily. The latest monthly figures show a picture of the production side of the economy that is gloomier than expected — and the platinum strike was by no means the only culprit. After the economy went negative in the first quarter, the market has been looking closely at the monthly figures to try to predict how the second quarter might turn out. April’s data had been stronger than expected, but that was not the case in May, when mining output fell 3.1% from April, worse than the consensus forecast of a 1.7% decline.

Aboriginal title ruling ‘all but guarantees uncertainty’ for CA mining projects – by Dorothy Kosich (Mineweb.com – July 11, 2014)

July 11, 2014

http://www.mineweb.com/

“Future natural resources projects may be scuttled, and existing projects may be halted or shut down,” said Ravina Bains of the Fraser Institute.

RENO (MINEWEB) – In a briefing published Thursday, British Columbia’s Fraser Institute’s Centre for Aboriginal Policy Studies warned that a recent Canadian Supreme Court ruling granting a group of six B.C. First Nations title to a large piece of land outside their reserves “will likely stunt economic development across Canada”.

“This court ruling all but guarantees uncertainty for natural resource projects in Canada and a potential increase in cost for economic development across the country,” said Ravina Bains, associate director of Aboriginal policy studies at the Fraser Institute.”

Unlike previous court rulings, the Tsilhqot-in Nation v. British Columbia judgment states that Aboriginal title can extend to all traditional territories and is not limited to specific villages. “This is particularly important in B.C. where one-third of the country’s First Nations reserves reside and where outstanding claims involve more than 100% of the province’s land,” said the Frasier Institute study.

PRECIOUS-Gold steadies near 3-1/2-month high, set for 6th weekly gain – by Jan Harvey (Reuters U.S. – July 11, 2014)

July 11, 2014

http://www.reuters.com/

LONDON, July 11 (Reuters) – Gold steadied near 3-1/2-month highs on Friday as stock markets recovered from the selloff seen in the previous session on concerns over the health of Portugal’s biggest bank, with the metal still on track for a sixth week of gains.

European shares recovered following Thursday’s slide, taking some upward pressure off gold, but investors remained cautious as Banco Espirito Santo attempted to reassure the market after trading in its shares was suspended.

Concerns over the financial stability of the euro zone have driven gold prices sharply higher in previous years, as investors bought the metal as a safe store of value.

Spot gold was at $1,337.50 an ounce by 1204 GMT, up 0.2 percent but off the previous day’s peak of $1,345, its highest since mid-March. U.S. gold futures for August delivery were down 20 cents an ounce at $1,339.00.

“Geopolitical uncertainty and concerns of any potential contagion into Portugal’s wider banking sector and indeed the euro zone’s wider banking sector were clearly supporting gold yesterday,” Mitsubishi analyst Jonathan Butler said.

“The longer-term trend since early June shows that there is still underlying strength in gold.”