International Media Resource Articles – Page 730

Engineers hurl scandalous accusations after Turkish mine fire kills hundreds – by Ben Brumfield, Gul Tuysuz and Diana Magnay (CNN.com – May 15, 2014)

May 15, 2014

http://www.cnn.com/WORLD/

Soma, Turkey (CNN) — Turkey’s President spoke words of comfort to loved-ones of the nearly 300 miners who have died in a mine fire, a day after the Prime Minister was blasted over comments seen as insensitive.

The deadly mine fire in Turkey is a “sorrow for the whole Turkish nation,” President Abdullah Gul told reporters Thursday. He offered his condolences to the victims’ families.

Onlookers listened silently until a man interrupted Gul with shouts: “Please, president! Help us, please!” An investigation into the deadly Turkey mine disaster has begun, Gul said. “I’m sure this will shed light” on what regulations are needed. “Whatever is necessary will be done,” he said.

He commended mining as a precious profession. “There’s no doubt that mining and working … to earn your bread underground perhaps is the most sacred” of undertakings, he told reporters. Gul had entered the mine site with an entourage of many dozens of people — mostly men in dark suits — walking through a crowd of rescue workers who were standing behind loosely assembled police barricades.

Cleaning Up Coal in India (New York Times Editorial – May 12, 2014)

May 15, 2014

http://www.nytimes.com/

India’s Enforcement Directorate has filed charges of money laundering against a former minister of state for coal, Dasari Narayana Rao, and Naveen Jindal, a member of Parliament who also happens to be chairman of Jindal Steel and Power. This is the latest turn in a major corruption scandal in India, known as Coalgate, in which the coal ministry awarded a handful of companies lucrative mining rights on a noncompetitive basis. The charges are a hopeful sign that India is ready to clean up its coal industry. But much more needs to be done.

Coal mining has long enjoyed sweetheart status in India, whatever the social and environmental costs. An 1894 land acquisition law that became an instrument of abuse, eventually fueling a Maoist insurgency, was finally replaced this year by a statute promising transparency and fair compensation.

Even so, activists are regularly harassed and even assassinated by thugs paid by powerful business interests to force people from their land. Ramesh Agrawal, who used India’s Right to Information Act to expose an illegal coal-mining venture by Jindal Steel and Power in Chhattisgarh, was shot and left for dead after he refused to back off. He accuses Mr. Jindal of ordering the attack. Mr. Agrawal was honored with a 2014 Goldman Environmental Prize for his fight for the communities threatened by the venture.

Hopes fade for survivors after Turkish mine fire kills At least 245 – by Ece Toksabay (Reuters U.K. – May 14, 2014)

May 14, 2014

http://uk.reuters.com/

SOMA, Turkey – (Reuters) – Hopes faded of finding more survivors in a coal mine in western Turkey on Wednesday, where 245 workers were confirmed killed and around 120 still feared to be trapped in what is likely to prove the nation’s worst ever industrial disaster.

Anger over the deadly fire at the mine about 480 km (300 miles) southwest of Istanbul echoed across a country that has seen a decade of rapid economic growth but still suffers from one of the world’s worst workplace safety records. Opponents blamed Prime Minister Tayyip Erdogan’s government for privatising the country’s mines and ignoring repeated warnings about their safety.

“We as a nation of 77 million are experiencing a very great pain,” Erdogan told a news conference after visiting the site. But he appeared to turn defensive when asked whether sufficient precautions had been in place at the mine. “Explosions like this in these mines happen all the time. It’s not like these don’t happen elsewhere in the world,” he said, reeling off a list of global mining accidents since 1862.

Fire knocked out power and shut down ventilation shafts and elevators shortly after 3 pm (1 p.m.BST) on Tuesday. Emergency workers pumped oxygen into the mine to try to keep those trapped alive during a rescue effort that lasted through the night.

UPDATE 4-S.African police vow to crack down on strike intimidation [South African platinum belt] – by Zandi Shabalala (Reuters U.S. – May 14, 2014)

May 14, 2014

http://www.reuters.com/

MARIKANA, South Africa, May 14 (Reuters) – South Africa’s police minister vowed to crack down on violence against platinum miners who were trying to return to work and arrest “within hours” strikers he said were behind a campaign of intimidation. South Africa’s longest and costliest strike ever, has taken a violent turn in recent days, with four miners killed as more employees try to report for work at the world’s top platinum producers.

Earlier on Wednesday, striking members of the main Association of Mineworkers and Construction Union (AMCU) prevented other workers from returning to platinum producer Lonmin’s shafts, thwarting the company’s efforts to end the 16-week strike.

“In South Africa, the rule of law reigns … Anarchy is not what is going to be accepted,” minister Nathi Mthethwa told a news conference later. Anglo American Platinum and Impala Platinum have also been hit by the strike, which has brought to a halt 40 percent of global production of the precious metal used for catalytic-converters in automobiles.

Lonmin had been aiming on Wednesday for a “mass return” of workers but a spokesman said “a very low number” had showed up. The producers have said many of the strikers have signalled a willingness to accept the latest pay.

COLUMN-China the hidden culprit behind Australia’s tough budget – by Clyde Russell (Reuters U.K. – May 14, 2014)

May 14, 2014

http://uk.reuters.com/

(The opinions expressed here are those of the author, a columnist for Reuters.)

May 14 (Reuters) – Many Australians will castigate the country’s new conservative government for a tough first budget that saw cuts to welfare and hikes to taxes, but some of the blame lies with China.

Just as China’s rapid growth of the past decade fuelled a commodity boom in Australia, the slowing of the Chinese economy and its uncomfortable transition to a more consumer-led model means the end of the resource bonanza down under.

While the headlines from the Liberal/National coalition’s federal budget on Tuesday focused on Treasurer Joe Hockey’s cuts to family payments and health, and tax increases for the wealthy, much of the underlying story was contained in the economic forecasts.

Australia’s two biggest export earners are iron ore and coal, and they will be joined by liquefied natural gas (LNG) once the seven projects currently under construction are operating. The last is slated to come onstream by 2018.

China is Australia’s biggest trading partner, accounting for about 36.7 percent of exports. The government’s budget papers paint a picture of muted prices for these commodities, which will impact on the collection of royalties and taxes.

BHP Says in Talks for Nickel Unit Sale as Metal Price Rockets – by Elisabeth Behrmann and David Stringer ( Bloomberg News – May 14, 2014)

May 14, 2014

http://www.businessweek.com/

BHP Billiton Ltd. (BHP), the world’s biggest mining company, is holding talks for the sale of all or part of its Australian nickel unit as prices rose to two-year highs.

“The review is considering all options for the long-term future of Nickel West, including the potential sale of all or parts of the business, Melbourne-based BHP said today in an e-mailed statement. Talks with interested parties have begun, spokeswoman Eleanor Nichols said by phone.

The sale announcement comes as nickel surged 10 percent in the past week and follows comments from BHP Chief Executive Officer Andrew Mackenzie that he wants to run a smaller collection of assets. Glencore Xstrata Plc (GLEN), the global commodities trading and mining group, said in March it was assessing a bid for the assets, which could fetch about $800 million according to a report by RBC Capital Markets.

‘‘For BHP, it’s something that doesn’t move the needle any more,” Chris Drew, an analyst in Sydney with RBC, said today. “The overall size of the business means it’s not material enough for them to justify maintaining or potentially putting capital into, so it’s better off in someone else’s hands.”

Turkish coal mine disaster cranks up pressure on miners, utilities – by Henning Gloystein (Reuters India – May 14, 2014)

May 14, 2014

http://in.reuters.com/

LONDON, May 14 (Reuters) – A coal mine explosion and fire that has killed over 200 people in Turkey coincides with increased pressure on miners and utilities to drastically improve safety and environmental standards for miners risking their lives.

Coal mining is responsible for more fatalities than the production of any other energy source due to poor working conditions in producing countries such as China, Turkey, South Africa, Indonesia and Colombia. It is also a major world polluter.

The disaster in western Turkey, likely to be the country’s deadliest, is still unfolding with hundreds believed to be trapped underground. It’s also the worst in a series of incidents in a sector that has seen 30,000 die since 1970.

A coal mine collapse in the U.S. state of West Virginia killed two workers this week at a facility that had “chronic compliance issues” and received numerous citations from inspectors last year.

Last month, two more workers were killed in Australia after a supporting wall in a coal mine about 240 kilometres (150 miles) west of Sydney gave way, trapping the two men about 500 metres (1,640 feet) below the surface.

Will a Goa-type crisis befall Odisha iron ore mines? – by Kunal Bose (Business Standard – May 12, 2014)

May 13, 2014

http://www.business-standard.com/ [India]

Unlike India, China is becoming increasingly dependent on iron ore imports to sustain its ever-rising steel production

When he was chairman of Steel Authority of India Ltd (SAIL), Sushil Kumar Roongta had a major role in convincing New Delhi that India was advantageously placed to become the world’s second-largest steelmaker. He argued the rich deposits of iron ore here, if properly harnessed, would enhance India’s steel capacity to 300 million tonnes (mt). This is despite our growing dependence on coking coal imports which in 2013-14, stood at 33.3 mt.

Roongta said while the blast furnace would remain the principal steelmaking route for India, technology breakthroughs such as Finex, developed by South Korean company Posco, would allow us to make steel with iron ore fines and non-coking coal, local deposits of which are 295 billion tonnes (bt). India has iron ore resources of 30 bt and these are to rise 5-10 bt as the cut-off point of iron content in ore is reduced from 55 per cent to 45 per cent. So, the country’s long-term self-reliance in this critical steel input is not to be doubted.

India’s high ore imports in recent times have resulted from significant dislocations in mining in more than one state. Unlike India, China is becoming increasingly dependent on iron ore imports to sustain its ever-rising steel production. In 2013, as China raised its share of world crude steel production to 48.5 per cent, with production of 779 mt, it also imported a record 820 mt to supplement domestic supplies.

To the dismay of our steel, sponge iron and pellet producers, dark clouds have started gathering over the iron ore sector in Odisha. The mineral produced in Odisha has a strategic bearing on the steel sector in eastern states, which account for 60 per cent of the country’s 80-mt annual metal output.

UPDATE 2-Japan’s Sumitomo Metal sees rising risk of ferronickel output cut – by Yuka Obayashi (Reuters India – May 13, 2014)

May 13, 2014

http://in.reuters.com/

TOKYO, May 13 (Reuters) – Sumitomo Metal Mining Co Ltd , Japan’s biggest nickel smelter, said there was an increasing risk it could cut production of key stainless steel ingredient ferronickel, amid growing concerns about ore shortages.

But for now the firm is still aiming to produce 21,400 tonnes of ferronickel in the year through March 2015, Toru Higo, general manager of nickel sales and raw materials at Sumitomo Metal, told Reuters on Tuesday.

Any cut in ferronickel output could tighten supplies for stainless steel producers in Japan and overseas as they grapple with a cut in the growth outlook in formerly fast-growing developing economies.

Ferronickel smelters have been hit by Indonesian bans on exports of unprocessed mineral ores that took effect in January, with Japan importing around half its ferronickel materials from the Southeast Asian nation in 2013. That ban has fuelled a rise in ore prices and driven up benchmark prices for refined nickel by more than 50 percent so far this year.

“The risk of a cut in production is rising,” Higo said, “It is getting harder to get the kind of ores we want when we want.” Sumitomo Metal has enough contracted supplies of nickel ore for the financial year through March, but is facing quality issues and delivery holdups after a switch to suppliers in the Philippines, he said.

Aluminium’s day dawns as iron ore dims – by Matt Chambers (The Australian – May 12, 2014)

May 12, 2014

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

Tinto’s much-maligned aluminium business could be a surprise saving grace for the miner as iron ore prices soften, with the company’s cost-cutting drive set to produce strong cashflows and boost the chance of big returns to shareholders.

The turnaround in aluminium, which Deutsche Bank is forecasting will contribute $US2 billion ($2.1bn) of annual free cashflow to Rio by 2017, comes as chief executive Sam Walsh predicts an end to the Chinese overcapacity that has hobbled the industry in recent years.

While there is no hope of recovering the $US25bn of value wiped from the aluminium unit’s book value since Rio paid $US40bn in cash for Alcan just before the global financial crisis, some investors are positioning themselves for a rebound.

“We have shareholders on our portfolio because they believe our aluminium business is going to be very prospective,” Mr Walsh told the company’s annual meeting in Melbourne last week. “That’s their call, but it is an indication that people expect there will be improvement in the business.”

Deutsche Bank analysts also sense a change.

Nine Nickel Smelters Seen in Indonesia This Yr After Ban – by Yoga Rusmana and Eko Listiyorini (Bloomberg News – May 12, 2014)

May 12, 2014

http://www.bloomberg.com/

Indonesia forecasts that nine nickel-processing plants may be completed this year after the largest mined producer banned raw ore exports in January, spurring a rally in refined prices to the highest level since 2012.

The plants comprise two ferronickel and seven nickel-pig-iron smelters, according to data from the Energy and Mineral Resources Ministry. One chemical-grade alumina plant is also scheduled to be completed this year, the data showed.

Southeast Asia’s largest economy is seeking to force a move toward processed commodities, betting that repercussions from the ban such as job losses will be offset by investment in new plants and output of higher-value products. The metal used in stainless steel is the biggest gainer this year among the six main metals traded on the London Metal Exchange amid concern that the ban will raise costs and spur a global deficit.

“Greenfield smelters are horribly expensive and drag down the profitability of even the best ore-mining operations,” said Xavier Jean, a credit analyst at Standard & Poor’s in Singapore. The prospects for completions this year are unrealistic, Jean said in an interview.

Vedanta shelves Odisha bauxite plan pending local approval – by Karen Rebelo (Reuters India – May 9, 2014)

May 12, 2014

http://in.reuters.com/

REUTERS – Vedanta Resources Plc said on Friday it would not mine bauxite at a controversial project in Odisha until it can win over local communities opposed to its plan.

The Environment Ministry had already rejected Vedanta’s request to mine in the Niyamgiri hills of Odisha following persistent protests from local communities that consider the region sacred..

While Vedanta stopped short of saying it had abandoned the project, its decision to await the consent of local communities will require it to look elsewhere for the raw material to feed its alumina refinery in the same state.

Analysts said Vedanta’s announcement is an early hint of plans by Tom Albanese, the former Rio Tinto head who became Vedanta’s chief executive last month, to make the London-listed company a more attractive sell to international investors.

Vedanta, a company with a market capitalisation of $4.2 billion and base metal mines in several countries, relies on aluminium production – exclusively in India – for about 12 percent of its revenue.

China, Japan scramble for nickel after Indonesian ban – by Polly Yam and Yuka Obayashi (Reuters U.S. – May 8, 2014)

May 12, 2014

http://www.reuters.com/

HONG KONG/TOKYO, May 8 (Reuters) – Nickel buyers in China and Japan are scrambling to secure supplies as soaring prices and a fear of shortages boosts demand for both refined metal and long-term ore contracts.

The price of nickel ore from the Philippines has more than doubled since late February, as supplies have dried up from rival producer Indonesia, previously the world’s biggest exporter.

China, the world’s largest nickel consumer, has recently increased imports of refined metal to help meet higher seasonal demand, say trader and importers, as the price of commonly used alternative nickel pig iron has soared since the Indonesian ban took effect in mid-January.

Nickel demand may get a further boost from stockpiling by China, with refined imports due to start arriving at State Reserves Bureau warehouses before the end of June, sources with knowledge of the matter said.

“Everybody in China is bullish nickel and everybody is hoarding nickel of any kind,” commodities strategist Ivan Szpakowski of Citi in Shanghai said. China, the world’s largest steelmaker, has turned to laterite nickel ores in recent years to produce nickel pig iron, a cheap, low-grade ferro-nickel – an alloy of iron and nickel – used in stainless steel.

Queensland Government announces $16b coal mine in Galilee Basin, subject to Federal approval – by Melinda Howells (Australian Broadcasting Corporation – May 9, 2014)

May 9, 2014

http://www.abc.net.au/news/

The Queensland Government has signed off on a $16 billion coal development in the Galilee Basin in the state’s central region that could become the largest coal mine in Australia.

The Carmichael Coal Mine north-west of Clermont will produce up to 60 million tonnes of coal each year and includes a 189-kilometre rail line. The project, which is being run by Adani Mining, a wholly owned subsidiary of India’s Adani Group, now goes to the Federal Government for final approval.

Deputy Premier Jeff Seeney says a processing plant, workers’ accommodation and an airport will also be built. “The coordinator-general has approved the project subject to an extensive list of environmental and social conditions,” he said. “If it proceeds, the Carmichael project would not only be the largest coal mine in Australia but one of the largest in the world.

“But it would also be a vital project in opening up the hugely significant Galilee Basin.” He says the coordinator-general had “worked closely” with the Commonwealth Department of Environment in finalising the report.

Bauxite: Will Australia fill Indonesia’s shoes? – by Oliver Probert (Australian Journal of Mining – May 07, 2014)

May 9, 2014

http://www.theajmonline.com.au/

Indonesia’s move to ban the export of mineral ores has left analyst Wood Mackenzie asking the question: where will China look to satisfy its growing appetite for bauxite?

The analyst’s most recent forecasts indicate that global alumina refinery production will rise to almost 140mt by 2018, which means we’ll see bauxite demand rise by almost 80mt to 350mt. China is the main global player in the aluminium market. It represents 40% of global supply, and 60% of global demand for the metal.

With China’s alumina refinery production forecast to rise by almost 17mtpa by 2018 and a further 40mt by 2030, Wood Mackenzie estimates the Asian giant will consume as much as 240mt of bauxite by 2030.

Until recently, Indonesia was the main supplier of bauxite to China, accounting for around 65% of overall supply last year. But in an attempt to create jobs by encouraging producers to build refineries on mainland Indonesia, the government enforced a ban on mineral ore exports in January.

The ban has created a significant supply gap for China to fill, and while swollen stockpiles and source diversification will soften the blow in the short to medium term, Wood Mackenzie believes the ban could be transformative to the global bauxite market in the longer term.