Turkey’s Preventable Tragedy – by Ozgur Ozelmay (New York Times – May 20, 2014)

http://www.nytimes.com/

Ozgur Ozel is a Republican People’s Party deputy representing the Soma-Manisa district in Turkey’s Parliament. This essay was translated by Zeynep Tufekci from the Turkish.

MANISA, Turkey — On the morning of May 13, Turkey finally woke up from its deep slumber on workplace safety — but at the cost of 301 lives. The subterranean fire last week at the Soma coal mine in western Turkey was the worst mining disaster in the country’s history. Hundreds of hardworking men in the district I represent are dead. And sadly, their deaths could have been prevented.

As early as last September, I had petitioned the Turkish Parliament to create a commission of inquiry, which is one way that the legislature can use its powers to oversee industry in Turkey. Ever since the Soma mine was privatized in 2005, the price of extracting coal has gone down dramatically — and so have safety conditions for workers.

My proposal merely called for research on previous mining accidents in Soma, inspections of the mine, and finding solutions. Along with other members of Parliament, I also urged Turkey to ratify the International Labor Organization’s convention on mine safety; if Turkey had signed the I.L.O. convention, there would have been mandatory alternative exits from the mine that could have saved lives.

Read more

Platinum industry: Golden goose – or dying duck? – by Lisa Steyn (Mail and Guardian – May 16, 2014)

http://mg.co.za/

Platinum producers have oversupplied the market to such an extent that, even if nothing was mined for an entire year, global demand would still be more than satisfied.

This has been the case for several years now, with the industry producing more than what the market requires. Analysts say the over-production is the result of overly optimistic predictions of demand for platinum, mainly used in the manufacture of autocatalysts, which date as far back as a decade ago.

But the forecasts have proved incorrect, and efficiencies such as recycling technologies have muted the need for new platinum production.

Still, platinum mining companies have continued to pile up the precious metal, meaning that the commodity price has been under pressure. Despite limited or no production from the major mining houses as the strike persisted over the past four months, the oversupply of platinum is so substantial that the metal price – staying around the level of $1 450 an ounce – has failed to respond notably to the developments.

Read more

Mine Disaster Casts Harsh Light on Turkey’s Premier – by TIM ARANGO, KAREEM FAHIM and SEBNEM ARSUMAY (New York Times – May 16, 2014)

http://www.nytimes.com/

SOMA, Turkey — There was no one to treat in the first aid tents near the entrance to the mine, where nearby an old woman wailed, “Our children are burning!” A man and his wife, dazed from a lack of sleep, walked the muddy grounds, looking for information that no one in the government could provide.

“This is how they steal people’s lives,” said the grieving father, Bayram Uckun, who like many here has become increasingly angry with the government for its response to the disaster. “This government is taking our country back 90 years.”

The body of Mr. Uckun’s son, and those of at least 17 other men, was almost certainly still trapped underground, after the deadliest industrial accident in Turkey’s modern history. But with the death toll from Tuesday’s accident expected to rise above 300, this disaster has quickly metastasized from a local tragedy into a new political crisis for the Islamist prime minister, Recep Tayyip Erdogan.

Relatives wept during a funeral service on Thursday in Soma, Turkey. Officials have confirmed 284 deaths in the mining accident, Turkey’s worst.Public Discontent Rises as Families Gather to Bury Victims of Turkish Mine DisasterMAY 15, 2014
Labor unions staged a one-day national strike on Friday as security forces shot tear gas and water cannons at protesters in Soma, in the capital, Ankara, and in Istanbul.

Read more

Pro-business Modi storms to historic election win – by RAJESH KUMAR SINGH AND ADITI SHAH (Reuters India – May 16, 2014)

http://in.reuters.com/

(Reuters) – Narendra Modi thundered to victory on Friday in election, trouncing the ruling Nehru-Gandhi dynasty in a seismic political shift that gives the Hindu nationalist and his party a mandate for sweeping economic reform.

Modi’s landslide, the most resounding election victory India has seen in 30 years, was welcomed with a blistering rally on India’s stock markets and raucous celebrations at offices across the country of his Bharatiya Janata Party (BJP), where supporters danced, let off fireworks and handed out sweets.

The BJP looked certain of a parliamentary majority, giving the 63-year-old former tea-seller ample room to advance reforms started 23 years ago by current Prime Minister Manmohan Singh but which stalled in recent years.

Speaking to a sea of people dressed in the party’s official orange colours and chanting his name in his home state of Gujarat, Modi thanked the nation, and immediately addressed concerns his pro-Hindu leanings would sideline minorities.

“The age of divisive politics has ended, from today onwards the politics of uniting people will begin,” Modi said. “We want more strength for the wellbeing of the country … I see a glorious and prosperous India.”

Read more

Moving Kiruna: what does it take to relocate a city? – by Rhys Thomas (World Finance – April 9, 2014)

http://www.worldfinance.com/

The irresistible call of the world’s biggest [underground] deposit of iron ore is forcing the Swedish city of Kiruna to move two miles east, signalling a new beginning for its citizens. But can this groundbreaking project succeed with so much at stake?

As the northernmost city in Sweden, Kiruna is used to seemingly endless winters, short, cold summers, and relative isolation in the vast expanse of Swedish Lapland. Its population, just shy of 20,000, has learned to expect adverse weather and the long dark night that descends on the city between December and January – all things that are part and parcel of living some 90 miles above the Arctic Circle. They could not have expected the gravity of the newest challenge that the city faces – a problem that simply must be overcome, before it swallows it whole.

When state-owned Luossavaara-Kiirunavaara Aktiebolag (LKAB) – one of Sweden’s biggest mining companies – told the residents of Kiruna it needed to dig deeper into the mountain near the city to extract more iron ore, some eyebrows might have been raised. Veterans of the city would remember that in the 1970s rampant expansion forced the city’s Ön district to be vacated and the residents moved elsewhere.

What they probably didn’t realise was the scale of what would have to happen this time. LKAB didn’t want one district to be vacated.

Read more

In The Amazon, A New Mining Frontier For Iron Ore – by Marina Amaral (Huffington Post/Angencia Publica – March 4, 2014)

http://www.huffingtonpost.com/theworldpost/

Meet Canaã dos Carajás, the new frontier of iron ore mining. It’s in the South of Brazil’s Para, where jobs and mining royalties did not bring as much progress as expected.

Between 1982 and 1985, Brazil’s last military ruler, João Figueiredo, settled 1,551 families through colonization projects around the mining area of the Carajás Forest, in the south of Para state in the Amazon. The project to exploit the world’s biggest high-grade iron ore, discovered in 1967, started to get momentum after the first mine in Serra de Carajás (Carajas Hills) was opened. Today it is a complex that produces about $13 billion worth of iron ore per year, most of which is exported.

The early settlers, however, had no idea that they were going to live on top of the “biggest project ever” of Vale — the world’s second mining corporation.

The goal of the military government was to reduce land conflicts in the Bico de Papagaio (“Parrot’s Beak”) region. The region was the center of the Araguaia guerrilla in the 1970s and is mainly situated around reserves holding an estimated 18 billion tons of iron ore, as well as deposits of manganese, copper, nickel, and gold.

Today, Vale digs 110 million tons of iron ore from the North Hills of Carajás. With the new project, called S11D, the company aims to double the production by exploring the South Hills of Serra dos Carajás until 2016.

Read more

What does Modi’s victory mean for gold in India? – by Lawrence Williams (Mineweb.com – May 16, 2014)

http://www.mineweb.com/

While Narendra Modi may be pro-gold in principle, there are doubts whether there will be any quick major gold policy changes following his BJP party’s Indian election victory.

LONDON (MINEWEB) – As I write it has become apparent that Narendra Modi’s Bharatiya Janata Party (BJP) party has won the Indian election with what in Indian terms looks like being a landslide victory. The ruling Congress party has conceded defeat. The only unknown as I write is whether the BJP will have won enough seats in India’s parliament to rule on its own without the support of its potential coalition partners or not.

It is widely believed that Modi is favourably inclined towards gold and one suspects the very big Indian gold fabrication and trading sector will have voted en masse for the BJP in the hope that the import restrictions on gold will be eased at the very least.

This will have followed on in particular from Modi’s address at a Bombay Bullion Association meeting last October where he expressed sympathy for the plight of the Indian gold sector and poured scorn on the then government’s gold policies to try and reduce the country’s balance of payments problems. However it should be recognised that Modi is an astute politician and he would have been in full pre-election mode addressing a sector with a potentially significant electoral impact given India’s love affair with gold.

He did say at the beginning of his address that he personally had little connection with gold but did comment: “We have not seen gold just as money, it is related with all aspects of our social life.

Read more

Nickel’s Roller-Coaster Tumble Seen Extending to Goldman (2) – by Maria Kolesnikova and Luzi Ann Javier (Bloomberg News – May 15, 2014)

http://www.bloomberg.com/news/

Nickel’s roller-coaster ride this year isn’t over, according to Goldman Sachs Group Inc., which expects the highest prices in two years to prompt expanded capacity for smelting and discourage purchases by steelmakers.

Prices plunged 11 percent the previous two days, and probably will fall 15 percent further in 12 months to $16,000 a metric ton, Goldman forecasts. Nickel had surged this year following a January ban on ore exports by Indonesia, the world’s largest supplier from mines, and as threats increased for economic sanctions against Russia, home to OAO GMK Norilsk Nickel, the biggest producer of refined metal.

Instead, exchange-tracked inventories rose, prompting some investors to judge the rally was exaggerated. China will “aggressively” build blast-furnace capacity in Indonesia to produce nickel pig iron, a low-grade alternative to refined metal, Goldman said in a report dated May 14 and e-mailed yesterday. Waning demand for the metal from makers of stainless steel is another “downside risk” for prices, the bank said.

“High prices will incentivize a substantial build out of blast furnace and other smelting capacity in Indonesia,” Goldman analysts Roger Yuan, Max Layton and Jeffrey Currie wrote in the report. “Demand destruction could also help to balance the global market in 2015 if the ban is not relaxed during the smelter construction period.”

Read more

Nickel, aluminium show signs of revival – by Peter Ker (Sydney Morning Herald – May 16, 2014)

http://www.smh.com.au/

They’ve been the dregs at the bottom of the diversified miners’ bottle for years, but nickel and aluminium are starting to show signs of life.

The two commodities have been bywords for poor performance over recent years, having dealt financial losses and multi-billion dollar impairments on their hapless owners at the big end of the mining industry.

But evolving attitudes in the developing world seem to be changing the rules of engagement in both industries, and tempting investors to think again. The nickel resurgence is more advanced and better understood.

Prices for the metal – used to create stainless steel – soared 56 per cent after January 10 when the Indonesian government placed a ban on certain raw metal exports.

The decision was designed to create jobs by forcing exporters to build processing plants on Indonesian soil, rather than exporting their raw ores overseas. As the world’s biggest nickel exporter, Indonesia’s removal from global trade has led to expectations of a shortage and price rises.

Read more

Narendra Modi’s manufacturing push cheers steel makers – by Krishna N Das (Reuters India – May 9, 2014)

http://in.reuters.com/

NEW DELHI – (Reuters) – When prime ministerial hopeful Narendra Modi asked at an election rally if anyone knew of a country that exported wheat but imported bread, steelmakers joined his followers to cheer.

For steel executives, it was just what they wanted to hear: their calls to restrict exports of iron ore further will be met if Modi’s Bharatiya Janata Party (BJP) wins the election.

While the move would mean a captive supply of iron ore for steelmakers, it would further dim the prospect of Indian iron ore returning in a big way to the world market. A steep drop in Indian shipments in the past two years has given Australia and Brazilian miners a bigger share of top market China.

“The government in Delhi is such that it exports iron ore but imports steel,” Modi said at the rally in the steel city of Jamshedpur last month. “If you run your business like this, how will the country’s steel industry survive?”

One of Modi’s main election planks is to crank up manufacturing to create millions of jobs by focusing on exporting steel, not iron ore; textiles not cotton. Results of the five-week election are due on May 16.

Read more

SA is committing economic suicide with platinum strike – by Mike Schüssler (Mineweb.com – May 15, 2014)

http://www.mineweb.com/

A shocking 1.4 million people stand to be affected in some way by the ongoing platinum strike in Rustenburg, now in its 16th week.

JOHANNESBURG – A shocking 1.4 million people stand to be affected in some way by the ongoing platinum strike in Rustenburg, now in its 16th week.

According to the Department of Mineral Resources the mineral economy makes up 9% of the gross domestic product (GDP). The sector also employs 525 000 people and a further 841 000 are employed in sub sectors supplying goods and services to the industry.

Platinum group metals (PGMs) make up nearly a quarter of mining production and is the largest sub-sector in mining. The latest statistics suggest that this subsector employs 196 000 people and highlights that PGMs is probably the most important in the mining sector, as it relies more on labour intensive methods than mechanisation.

However the 70 000 workers on strike have affected many more people. Firstly the mines involved employ 125 000 workers in the sector (including contractors) which is nearly 64% of all those working in the platinum industry.

Read more

The Astonishing Nickel Eating Plant That Could Radically Change Mining – by Tim Worstall (Forbes Magazine – May 13, 2014)

http://www.forbes.com/

There’s been a discovery of a new species of “metal-munching” plant that has the possibility of radically changing how we go about mining for metals. Or at least, how we go about mining for certain metals. We’ve long known that certain plants concentrate certain metals in their tissues: for example, that coal has elevated levels of germanium in it is simply the result of the fact that those plant tissues the coal was made from contained Ge. But this latest finding concentrates metals, in this case nickel, to such an extent that it could radically change the way that we go mining for certain metals.

A report is here and this is the most amazing line:

“Professor Fernando said that the Rinorea niccolifera’s leaves can take in up to 18,000 parts per million of nickel. This is a thousand times more than what any other known plant species can safely absorb.”

It’s that thousand times which is the astonishing part. And it’s so astonishing that it completely changes the economics of the matter.

18,000 ppm is also known as 1.8%. So, for one tonne of the leaves of this plant we would have 18 kilogrammes of nickel contained. Well, OK, we would if it had been growing on highly nickel contaminated soil.

Read more

Regulators Couldn’t Close U.S. Mine Despite Poor Safety Record – by HOWARD BERKES & ANNA BOIKO-WEYRAUCH (Texas Public Radio – May 14, 2014)

http://tpr.org/

The West Virginia mine where two workers were fatally injured on Monday consistently violated federal mine safety laws, but federal regulators say they were unable to shut it down completely.

The Mine Safety and Health Administration confirmed that two workers were killed on May 12 when coal and rocks burst from mine walls at Patriot Coal’s Brody No. 1 mine in Boone County, W.Va.

MSHA says one victim was operating a mining machine and the other was drilling bolts into the roof of the mine, a process that prevents rockfalls. But MSHA and Patriot both say the miners were engaged in “retreat mining” at the time, a dangerous practice that involves cutting the coal pillars that hold up the mine roof, yielding the last loads of coal after a coal seam has been fully mined.

Federal data reviewed and analyzed by NPR show serious safety problems at the mine going back to 2007. The threat to miners was so serious and persistent that MSHA responded with one of its toughest enforcement actions. In October of last year, the Brody mine was designated a “pattern violator” and received extra regulatory scrutiny.

Patriot objected, blaming the troubled safety record and pattern of violations on a previous owner. NPR’s review of data from MSHA reveals serious safety issues under Patriot management that put miners at risk of injury or death.

Read more

UPDATE 2-Mass funerals, mounting anger as Turkey mourns mine workers – by Ece Toksabay (Reuters India – May 15, 2014)

http://in.reuters.com/

SOMA, Turkey, May 15 (Reuters) – Loudspeakers broadcast the names of the dead and excavators dug mass graves in this close-knit Turkish mining town on Thursday, while protesters gathered in major cities as grief turned to anger following the country’s deadliest industrial disaster.

Rescuers were still trying to reach parts of the coal mine in Soma, 480 km (300 miles) southwest of Istanbul, almost 48 hours after fire knocked out power and shut down the ventilation shafts and elevators, trapping hundreds underground.

At least 282 people have been confirmed dead, mostly from carbon monoxide poisoning, and hopes are fading of pulling out any more alive of the 100 or so still thought to be inside.

Anger has swept a country that has boasted a decade of rapid economic growth under Prime Minister Tayyip Erdogan’s Islamist-rooted government but which still suffers from one of the world’s worst workplace safety standards.

Furious residents heckled Erdogan and jostled his entourage on Wednesday as he toured the town, angry at what they see as the government’s cosiness with mining tycoons, its failure to ensure safety and a lack of information on the rescue effort.

Read more

Mining the green gold of Ethiopia’s Danakil – by Elissa Jobson in Addis Ababa (The Africa Report – May 14, 2014)

http://www.theafricareport.com/

As companies rush to secure their claim on Ethiopia’s mineral riches, the government is keen to show it supports international transparency measures. Ethiopia is in the midst of a gold, oil, mineral and gemstone rush. More than 250 companies are currently scouring the territory hoping to strike it rich.

here is a diversity of geology,” says Tolesa Shagi, the minister of mines. “There is huge potential for different minerals – that is what we understood after we invited foreign mining companies.”

Just over half of the country has been surveyed so far and it already appears that there are significant reserves of gold, oil and potash as well as valuable deposits of coal, tantalum, copper, platinum, opals, rubies and other gemstones.

The mining sector currently accounts for around 1% of the Ethiopian economy, but the government expects that in 10 years’ time it will represent 10% of GDP. Potash is likely to be one of the first commodities to contribute to this growth.

In the remote and arid Danakil Depression, in northeast Ethiopia, lies the world’s largest potash deposit.

Read more