International Media Resource Articles – Page 732

The Brics have a $100bn bank. Can the West start taking them seriously now? – by Jim O’Neill (The Telegraph – July 25, 2014)

July 28, 2014

http://www.telegraph.co.uk/

Before this decade is over, there is a reasonable chance that India and Brazil will be larger than the UK

Earlier this month, the political leaders of the so-called Brics countries, who were meeting in the city of Fortaleza in northern Brazil, announced plans to set up a joint development bank. The new institution will be headquartered in Shanghai, run by an Indian president, and backed by $100bn (£59bn) of capital.

It is two years since this idea was first mooted. If nothing else the plans demonstrate that these extremely diverse countries can agree on something quite specific if they put their minds to it. It is a development that I have more than a passing interest in, having coined the BRIC acronym – for Brazil, Russia, India and China – back in 2001. So how significant is the launch of this new institution?

Some have suggested that it will start vying for influence with the World Bank and could mark the beginning of the demise of the global order that has existed since the end of the Second World War. Well, maybe. Much will depend on the remit of the Brics bank and how the World Bank and the International Monetary Fund respond. It is worth noting that the IMF issued a statement welcoming the new organisation. I suspect that neither it nor the World Bank will see the Brics bank as direct competition. After all, there are already the Asian and African development banks, and many countries have their own versions – the BRICS countries included.

The first article I wrote that included the Bric acronym (South Africa has since been added to make it Brics but the country was never part of my economic vision) was called “The World Needs Better Economic Brics”.

Surface mining’s price – by Rebecca Schmoyer (Albany Times Union – July 26, 2014)

July 28, 2014

http://www.timesunion.com/

Mountaintop coal removal leaves environmental and health impacts

A few weeks ago, I stood on top of Armstrong Mountain. The day was clear and the valley below filled with spruce, fir and hardwood forest. Unbroken ridges extended into the distance. As my final summit of the 46 Adirondack High Peaks, it was a moment of accomplishment. But while I took in the view, I was troubled by a somber national milestone.

As of this year, over 500 of the Appalachian Mountains have been destroyed by mountaintop removal coal mining. It’s time for New York state to divest from this industry.

According to the Office of State Comptroller’s 2013 asset report, the state has millions invested in companies that practice what the industry decorously calls “surface mining.” But the impact of mountaintop removal mining on the people and landscape of central Appalachia is far from superficial. The U.S. Environmental Protection Agency estimates the industry has left 1.2 million acres, or over 2,000 square miles, of barren, scarred land — an area bigger than the state of Delaware. And the devastation continues.

A few days later, Vernon Haltom and I are standing on a flattened ridge in southwestern West Virginia. Here, in the dust above Coal River Valley, summertime means blasting.

“They’re at it six days a week,” says Haltom, executive director of Naoma, W.Va.-based Coal River Mountain Watch.

Anglo warns of ore price torpor – by Matt Chambers (The Australian – July 26, 2014)

July 25, 2014

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

MINING giant Anglo American says iron ore prices are set to remain depressed for the rest of the year as growing supply exceeds demand that is being tempered by a fragile Chinese housing market.

But the outlook is better for coking coal, with the British miner’s Wollongong-born chief executive Mark Cutifani expecting contract prices to rise from six-year lows of $US120 a tonne and change the fortunes of the company’s metallurgical coal unit, where first-half profits fell 86 per cent.

Anglo released first-half earnings last night, reporting a $US2.9 billion ($3.08bn) profit, in line with expectations. Net debt of $US11.5bn was lower than forecasts of $US12bn because of lower capital expenditure.

Anglo is the first of the big miners to deliver its June-half profit report and the first to offer its assessment of the global markets, with Rio Tinto and BHP Billiton both having stopped giving their views on economics and fundamentals in quarterly production reports.

“Uncertainty is likely to persist for the balance of 2014, though there are some encouraging signs that activity is strengthening in our key markets,” Mr Cutifani said. “Over the long term, we expect new supply to be constrained and to see tightening market fundamentals and a recovery in price performance.”

Life reflected in BHP’s figures – by Terry McCrann (The Australian – July 26, 2014)

July 25, 2014

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

BHP Billiton’s production figures effectively fired the starter’s gun for the annual profit season. They also neatly captured in microcosm the big questions about the future course of the overall economy.

Indeed, they were a much better guide to the future and its uncertainties than the June quarter CPI figures, released on the same day, which sent sections of the economentariat into a frenzy of hyperventilating certainty.

That’s a certainty that will no doubt last until some other statistic sends them hyperventilating in the opposite direction.

There’s no great surprise in the significance of BHPB’s numbers — oh for the day when it returns to the simplified BHP, sloughing off the second “B” along with all the rubbish it bought with Billiton.

BHPB remains our biggest company by far. While it won’t generate a profit this year all-but equal to the profits of all the four big banks combined, as it did a few years ago, it will still post a 2013-14 profit which will put any individual bank profit in the shade.

BHPB is not just the resources boom in miniature, it all but is the resources boom. OK, perhaps in combination with Rio Tinto, given the latter’s edge in iron ore, the resource that really “is” the boom, both in terms of dollars generated and its dominant centrality in our role in the China story.

Then perhaps we should add Twiggy Forrest’s Fortescue as not just the third iron ore major but also more directly representative of the “boom” aspect of the “resources boom”.

EPA moves to block Pebble as House moves to block EPA – by Elwood Brehmer (Alaska Journal of Commerce – July 24, 2014)

July 25, 2014

http://www.alaskajournal.com/

The Environmental Protection Agency is continuing its push to block the potential Pebble copper and gold mine.

EPA Region 10 Administrator Dennis McLerran said in a formal statement July 18 that the agency is moving to protect the robust salmon stocks of Bristol Bay from the possible impacts of a large mine in the region.

The 214-page proposed determination document calls for a ban of large-scale mining in the area of the Koktuli River and Upper Talarik Creek watersheds north and west of Iliamna, where the Pebble deposit is located. The watersheds are part of the larger Kvichak River and Nushagak River watersheds — the Pebble deposit sits nearly on the border of the two — which support some of the largest returns of sockeye salmon in the world each year.

“The science is clear that mining the Pebble deposit would cause irreversible damage to one of the world’s last intact salmon ecosystems. Bristol Bay’s exceptional fisheries deserve exceptional protection,” McLerran said. “We are doing this now because we’ve heard from concerned tribes, the fishing industry, Alaskans and many others who have lived and worked for more than a decade under the uncertainty posed by this potentially destructive mine.”

If developed, it is believed the Pebble mine would be one of the world’s largest surface copper and gold mines. Alaska U.S. Rep. Don Young called the determination a “jurisdictional power grab.”

During a July 16 House Transportation and Infrastructure Committee hearing on legislation to limit the EPA’s Clean Water Act authority, Young delivered a heated monologue in which he condemned the agency’s actions and called the Obama administration a “monarchy.”

Red Dog lead, zinc mine marks 25 years, $1B in royalties – by Tim Bradner (Alaska Journal of Commerce – July 24, 2014)

July 25, 2014

http://www.alaskajournal.com/

The Red Dog Mine in Northwest Alaska turned 25 years old July 17 after producing since 1989 and paying about $1 billion in royalties to NANA Regional Corp., the landowner.

NANA paid $608 million of that to other Alaska Native corporations under revenue-sharing provisions of the Alaska Native Claims Settlement Act and $199 million in dividends to its own shareholders.

The remaining $103 million was retained by NANA to help pay operations and for investments in other business, which has now helped NANA grow a diversified portfolio of assets that earned the corporation $1.7 billion in revenues last year.

To celebrate the July 17 anniversary, NANA invited guests to the mine including including former Gov. Bill Sheffield and Willie Hensley, NANA leaders and former legislators who played key roles in the original mine development.

Teck president and CEO Don Lindsay also attended. The mine is operated by Teck Alaska Inc. Teck Alaska’s parent, Canada-based Teck Resources, purchased Cominco, the Canadian company that developed Red Dog with NANA in the mid-1980s.

Red Dog is a surface mine that is one of the world’s largest zinc mines, producing 551,300 tonnes of zinc concentrates in 2013 (a tonne is approximately 2,200 pounds). The mine earned $874 million in total revenues that year, according to Teck.

African Barrick Gold: Better as she goes! – by Lawrence Williams (Mineweb.com – July 25, 2014)

July 25, 2014

http://www.mineweb.com/

African Barrick has achieved a seventh successive quarterly fall in AISC and has improved its guidance on both gold output and costs after another positive quarter’s financial and operating results.

LONDON (MINEWEB) – The measures being taken to bring African Barrick Gold (ABG) – Barrick Gold’s London quoted African gold mining arm – back towards decent profitability seem to be working and while there are still some hiccups – notably a fall in grades at its flagship Bulyanhulu gold mine – its Q2 production results showed substantial further improvement beating most analysts’ consensus with gold output of 178,000 ounces at all in sustaining costs (AISC) of US$1105 an ounce.

This compares with production of 168,000 ounces in Q1 and 164,000 ounces in Q2 2013 – while AISC have shown the best improvements down from $1404 an ounce a year earlier. Consequently it is upping its production guidance for the year and maintaining its guidance on cash and all in sustaining costs.

CEO Brad Gordon was obviously pleased with the latest figures, commenting “We are pleased to report strong results for H1 2014, with increased production and continued cost discipline enabling the business to return to cash generation.. We have now delivered our seventh successive reduction in quarterly all-in sustaining costs (AISC) as we continue to drive operational improvements through the business”.

India’s Uranium Boss Says Deformed Children May Be ‘Imported’ – by Rakteem Katakey and Tom Lasseter (Bloomberg News – July 23, 2014)

July 25, 2014

http://www.businessweek.com/

Confronted with reports villages near Uranium Corp. of India Ltd.’s mines have unusually high numbers of physically deformed people, Chairman Diwakar Acharya said: “I wouldn’t be surprised if a lot of those guys are imported from elsewhere, ok?”

A Bloomberg News report on July 9 highlighted the struggles of the locals with disease and early deaths — and the suspicion they shared with some environmental activists that the health conditions are linked to mining waste.

Acharya dismissed as biased any findings of a correlation between the mines and deformities in nearby villages.

Activists and doctors come with an agenda to Jadugora, a town of about 19,500 people in eastern Jharkhand state that’s home to the company’s main operations, he said in a July 14 interview.

“See, what happens is, you say you are a specialist and you’ll come and treat,” Acharya said at Uranium Corp.’s headquarters. “But all you do is, you are convinced UCIL is evil and you have come here only with the sole motive of finding reasons which would validate your preconceived notions.”

Uranium Corp. sends its security officers to monitor attempts by outsiders to examine villagers, Acharya said, explaining it was a necessary step for collecting information about alleged health problems.

Coal India undermined by basic equipment flaws – by Krishna N Das (Reuters India – July 25, 2014)

July 25, 2014

http://in.reuters.com/

NEW DELHI – (Reuters) – As Prime Minister Narendra Modi’s government looks to shape up Coal India Ltd (COAL.NS) for a potential major restructuring, the world’s biggest coal miner still faces basic problems: it does not have enough mechanical shovels, dumpers and explosives.

The new government, which has a 90 percent stake in the company whose total market value is about $40 billion, is exploring a break up and opening up the sector to foreign investment to boost output and cut imports, sources have said.

But the firm, which accounts for more than 80 percent of India’s production and employs 350,000, has not met its output target for years, ensuring the country remains the world’s third-largest coal importer despite sitting on huge reserves.

A failure to boost efficiency could threaten long-run plans to spin off some of the seven units of the coal miner, a vital part of the government’s reform strategy. [ID:nL3N0O6458]

Two units produced less in the last fiscal year than a year ago, partly due to lack of basic equipment and ageing machinery, Power and Coal Minister Piyush Goyal told parliament this week.

The minister did not provide data but according to a top official at one Coal India unit this issue could be cutting Coal India’s annual output by more than 10 percent. The official declined to be identified due to its policy on talking to media.

UPDATE 2-Brazil’s Vale hits iron ore record, base metals output lags – by Stephen Eisenhammer (Reuters U.K. – July 24, 2014)

July 25, 2014

http://uk.reuters.com/

(Reuters) – Brazil’s Vale SA produced record amounts of iron ore in its latest second quarter, rising to the task of battling Australian rivals for market share, but weaker performance at other divisions fanned some concern ahead of results next week.

Iron ore production rose 12.6 percent to 79.45 million tonnes from a year earlier, Vale said on Thursday, as better weather conditions combined with ramp ups at its two main mine sites in Brazil. The Brazilian company is the world’s largest producer of the mineral.

Vale is expected to post an annual decline in second-quarter net income of more than 40 percent when it reports on July 31, according to an average of analyst forecasts compiled by Reuters.

Giants Vale, Rio Tinto Plc and BHP Billiton Plc are all increasing iron ore capacity in a move expected to squeeze higher-cost producers out of the market. But with iron ore prices .IO62-CNI=SI languishing near 22-month lows during the period, analysts had been looking to Vale’s nickel division to pick up some of the slack.

Some of those analysts were subsequently disappointed as nickel production fell 5.2 percent to 61,700 tonnes due to maintenance at the Sudbury mine in Canada. Its VNC project on the French Pacific island of New Caledonia also suspended operations after an acid spill in May.

What’s Behind Canada’s Troubled Relationship With Its Aboriginal Peoples –by Jake Flanagin (New York Times – July 24, 2014)

July 25, 2014

https://news.vice.com/

http://www.nytimes.com/

They call it “Murderpeg.” With 6,222 instances of violent crime reported in 2012, the city of Winnipeg, Manitoba consistently ranks among the most violent cities in Canada.

It’s also host to one of the highest concentrations of Aboriginal peoples (indigenous North Americans) in the country – 11.7 percent and growing faster than any other area in Canada, according to the Canadian National Household Survey.

Aboriginal Canadians – First Nations, Inuits, and the Métis (descended from mixed marriages between Europeans and indigenous peoples) – are arguably the most underserved segment of Canadian society. “One in five Aboriginal Canadians live in dilapidated and often overcrowded homes,” reports Nilo Tabrizy for Vice News. Those in Winnipeg are no exception.

Ms. Tabrizy traveled to Winnipeg to shoot a documentary for Vice, highlighting the plight of the city’s Aboriginal population, and unpacking the seedy history of Canada’s relationship with its indigenous communities.

Brazil’s Vale Posts Record Iron-Ore Output – by Paul Kiernan (Wall Street Journal – July 24, 2014)

July 24, 2014

http://online.wsj.com/home-page

Mining Company Says Output at New Plant at its Carajas Complex Is the Main Reason for the Increase

RIO DE JANEIRO—Brazilian mining company Vale SA said Thursday it churned out a record amount of iron ore in the second quarter, as expansion projects at its Carajas complex in the Amazon began to bear fruit.

Vale, the world’s largest producer of iron ore, said its output of the steelmaking material surged 13% from a year earlier to 79.4 million metric tons, the most ever for the April-to-June period.

Scant rainfall, the result of a drought that has hurt other sectors of the Brazilian economy, allowed Vale to maximize its production. But the ramp-up of output at a new plant at Carajas—where Vale is carrying out a nearly $20 billion expansion plan to supply the Chinese steel industry—was the main reason for the increase.

Production of iron-ore pellets rose 2.4% to 9.95 million tons, Vale said. Other segments of Vale’s business didn’t perform as well during the second quarter.

Output of nickel, of which Vale is the world’s No. 2 producer, fell 5.2% to 61,700 tons, as the company was forced to suspend its Copper Cliff smelter in Sudbury, Canada, due to a worker fatality. An environmental accident at Vale’s nickel operation in New Caledonia caused production to fall there, as well.

Will Cutifani answer call for Anglo change? – by David McKay (Miningmx.com – July 24, 2014)

July 24, 2014

http://www.miningmx.com/

[miningmx.com] – A YEAR ago, at Anglo American’s 2013 interim results presentation, the group’s then relatively new CEO, Mark Cutifani, set out the broadest of blue-prints for winning back investor interest.

Return on Capital Employed (ROCE) needed to be 15%, not the 11% that had been previously achieved; the project pipeline, described by Cutifani as ‘constipated’, had to be – for want of a better word – loosened; and any under-performing assets would be culled from the group.

At the time, a mere 11% of the group’s 90-odd assets had met operational targets to which Cutifani provided the gloss: “We have to get our arses into gear”.

The question at the time was how a change in gear would be achieved, and whether Cutifani would be bold and quick enough? A year on, and the answer is becoming clearer.

As with its peer, BHP Billiton, Anglo is taking the scalpel to some of its South African assets starting with the less profitable platinum mines held in the 80%-controlled Anglo American Platinum (Amplats).

“He has made it absolutely, abundantly clear that the Rustenburg and Union assets in Amplats are not priorities for the group’s capital,” said a Johannesburg-based analyst.

COLUMN-New Indonesian president can bring certainty, consistency to mining: Russell – by Clyde Russell (Reuters India – July 24, 2014)

July 24, 2014

http://in.reuters.com/

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

LAUNCESTON, Australia, July 24 (Reuters) – The election of reformist Joko “Jokowi” Widodo as Indonesia’s new president has spurred hopes of a rapprochement with global miners and the scaling back of some of the nationalistic resource policies.

Certainly the new leader of the world’s fourth-most populous nation is making the right noises, telling Reuters in an interview published July 22 that he wants to sit down with mining companies and resolve differences.

And indeed this was followed by Freeport-McMoRan, which owns the giant Grasberg copper mine, saying it expects to “imminently” sign an agreement with Indonesia that will allow for the resumption of exports of copper concentrate.

Newmont Mining Corp also said it was close to a memorandum of understanding with the government that would allow it to resume exports of copper concentrate and re-open its Batu Hijau mine.

These negotiations with the two U.S. mining giants, which account for 97 percent of Indonesia’s copper output, have been ongoing for months, so it’s not clear that Jokowi had any influence on the talks, but equally his election victory may have provided momentum to the talks.

Central America’s biggest nickel mine reopens amid violent clashes – by David Hill (The Guardian – July 24, 2014)

July 24, 2014

http://www.theguardian.com/uk

Guatemala’s Fenix mine, closed for 30 years, faces disputes over land ownership and lawsuits for gang-rape and murder

Fenix, Guatemala – The biggest nickel mine in Central America has restarted operations amid violent clashes between indigenous people and security forces, disputes over land ownership, and ongoing lawsuits for gang-rape and murder.
The Fenix mine in Guatemala had been closed for 30 years, and was inaugurated by a recent visit to the site by president Otto Pérez, who called it the biggest investment in the history of the country.

But just one week later a community bordering Fenix known as Lot 8 Chacpayla, who are part of the predominant Maya Q’eqchi’ group in the region, say there were invaded by private security forces working for the firm which runs the mine, Compañía Guatemalteca de Níquel, now a subsidiary of the Cyprus-based Solway Investment Group.

Residents of Lot 8, where large nickel ore deposits are believed to lie, and the neighbouring community, Lot 9 Agua Caliente, told the Guardian that about 10 men turned up unannounced, “armed to the teeth”, intent on preventing a meeting from taking place.

“When we asked why they were there, they said they had been asked to protect the lands of the company,” says Lot 9’s Rodrigo Tot. “They said they wouldn’t leave and assumed a position to shoot. They were out in the corridor, but pointed their weapons at us.”