International Media Resource Articles – Page 737

Rio set for potash push – by Matt Chambers (The Australian – March 24, 2014)

March 25, 2014

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

Rio Tinto could start building a Canadian potash project within three years, according to its joint venture partner, as the big miner chases a fertiliser push by BHP Billiton to position itself at the forefront of a global food boom.

There is also growing speculation Rio will make a bigger plunge into the sector through an acquisition or joint venture of neighbouring junior Western Potash, or even by joining BHP.

Last week, Rio revealed it had made a “tier-one” potash discovery at its KP405 lease near Regina, in Saskatchewan’s Elk Point Basin. This is the basin where BHP is spending $US3.8 billion ($4.2bn) sinking big mine shafts and building associated infrastructure about 200km to the north to be ready for expected growth in global demand for the crop fertiliser.

Rio’s Russian partner, Acron, has called the find “massive” and, based on a Rio report, capable of supporting a long-life, low-cost potash mine. Still, KP405 is lower grade, has been proved up to a fraction of the certainty and is less than a third the size of the resource BHP is targeting. It is also nearly twice as deep, meaning mining methods will be different and probably more expensive.

Miners target funds to spread the message on coal – by Annabel Hepworth (The Australian – March 24, 2014)

March 24, 2014

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

MINING giants are targeting Australia’s most influential superannuation funds to convince them that coal is here to stay in a dramatic escalation of a strike against environmentalists campaigning for the divestment of fossil fuel assets.

The Australian can reveal that the Minerals Council of Australia — whose members include BHP Billiton, Rio Tinto and Glencore — has been pitching the case for coal to more than 1000 powerbrokers at big investors.

As well as industry funds including Australian Super and Uni Super, the campaign has targeted investment managers Colonial First State, investment bank Goldman Sachs and the Australian arm of the world’s biggest asset manager BlackRock, as well as ratings agencies.

The move is an escalation of the industry’s plans to take on the fossil fuel divestment campaign, where green groups are pushing investors to dump their holdings in coal companies. The approach is modelled heavily on the South African divestment campaign against apartheid. The Greens have been demanding that the $96.6 billion Future Fund get out of coal.

Philippine finance minister says government must get more revenue from mining – by Rosemarie Francisco and Erik dela Cruz (Reuters India – March 24, 2014)

March 24, 2014

http://in.reuters.com/

MANILA – (Reuters) – The Philippine finance minister said he will push mining companies to pay bigger shares of their revenue to the government even though the industry maintains that taxes are already too high and higher ones could kill the business.

Taxation of Philippine miners is a thorny issue that has delayed development of the country’s vast mineral resources. President Benigno Aquino, seeking to raise revenue from mining, has met stiff resistance.

Philippine Finance Secretary Cesar Purisima told the Reuters ASEAN Summit on Monday that the government should be getting one-half of gross revenue from mining. Last year, according to a government agency, direct state revenue from mining was worth only 2 percent of total output, though miners also pay corporate income tax of 32 percent and other fees to different agencies.

“Where I start is 50-50,” Purisima told the summit, held at the Reuters office in Manila. “The return of the government must be two-fold — as owner of the mineral, and two, as a taxing authority.”

Still, Purisima said it is the Philippine Congress that will decide the revenue-sharing formula, taking into account the industry’s position.

Investors return to Indonesia, but World Bank warns of challenges – by Peter Alford (The Australian – March 24, 2014)

March 24, 2014

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

WHILE a resumption of strong portfolio flows so far this year suggests the Indonesia story is getting renewed and favourable consideration from foreign investors, the World Bank has warned the country faces a highly challenging 2014.

The bank’s new Indonesian Economic Quarterly, pointedly titled Investment in Flux, appears as investment confidence, domestic and foreign, has got another lift from the confirmation of Jakarta governor Joko Widodo will contest, and most likely win, the 2014 presidential race.

The decision by Indonesian Democratic Party of Struggle doyenne Megawati Sukarnoputri that “Jokowi” — not she — would carry the party’s banner in July lifted the Jakarta stockmarket 4 per cent in the final two hours of trade on Friday, while the currency strengthened nearly 2 per cent against the US dollar.

The 52-year-old former small businessman from Jogjakarta is perceived by investors, domestic and foreign, as by far the most market rationalist of the main candidates. A Jokowi administration is expected to promote public-private investment in critically underfunded sectors like transport infrastructure and healthcare.

The Jokowi effect reinforces strengthening sentiment about Indonesia apparent since late January, which in turn reflects significant improvements in current account deficit, government fiscal deficit and inflation outlook since the third quarter of last year.

[Yellowknife] Giant Mine bomber now seeking day parole – by Dorothy Kosich (Mineweb.com – March 24, 2014)

March 24, 2014

http://www.mineweb.com/

Convicted of the deaths of nine miners during a bitter strike at a Yellowknife gold mine, a former miner has applied for day parole for the first time, despite being eligible since 2010.

RENO (MINEWEB) – A former miner convicted of committing one of Canada’s worst mass murders during one of the most violent mining strikes in the nation’s history is seeking day parole.

Roger Warren, who confessed and was convicted in 1995 of nine counts of second-degree murder in connection to the 1992 bombing at Yellowknife’s Giant Mine, is serving a life sentence.

The September 18, 1992, blast set by Warren exploded when a rail car transporting mining replacement workers hit a trip wire. Between 1948 and 2004, the Giant Mine was a major economic driver for Yellowknife and the Northwest Territories.

Royal Oak bought the Giant Mine in 1990 when the price of gold dropped below mining costs. Then-mining CEO, Margaret Witte, slashed costs and increased production although the union complained that mine safety was comprised. The union went on strike in May 1992 with the strike lasting 18 months.

The next age of mining? – by Cole Latimer (Australian Mining – March 21, 2014)

March 24, 2014

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

Are we entering the last age of the open cut mine? Is the end of open pit mining near? Speaking to a number of sources, the answer is clearly no, but as grades decrease and deposits become deeper, the increase of underground mining will continue apace as older open cut mines are worked out and new, deeper deposits are discovered.

Underground mining will soon count for a much larger proportion of total mining. According to a Rio Tinto seminar in 2010, in 2009 underground operations accounted for 26 per cent of all copper production, however Rio forecast that by 2025 underground operations would account for 40 per cent of global copper production.

This included major copper producers such as Chile and Australia, where massive open cut pits are the norm. But this is not to say open cut mining has been uneconomical. Surface mining has been, for some time, the most economical form of mining in Australia.

Underground contract mining specialist Pybar’s group business development manager David Noort told Australian Mining “open cut mines have been, economically, the most viable, which has been due to relatively near surface expressions”.

With wide open spaces and often remote locations, it has been the more cost effective form of mining, but globally it has already started coming to an end, with Noort explaining that “many of these higher grade expressions close to the surface have already been discovered, so we are left chasing ore down”.

INSIGHT-Russia’s leading role in the Indonesian mining revolution – by Randy Fabi and Fergus Jensen (Reuters U.S. – March 23, 2014)

March 24, 2014

http://www.reuters.com/

JAKARTA, March 24 (Reuters) – Russia’s two metal giants have emerged as big winners from Indonesia’s new mining law, after leading a drive to get Jakarta to stick to its controversial mineral ore export ban in the face of opposition from miners and Asian buyers.

In its six-month lobbying campaign last year, United Company Rusal and Norilsk Nickel delivered a blunt message to Indonesian officials: We will only invest billions of dollars in smelters if you ban bauxite and nickel ore exports.

The effort seemed to have paid off, despite a denial by Indonesia that it was influenced. When the law came into effect this year, Indonesia enforced a water-tight export ban for only two major minerals – nickel ore and bauxite.

The halting of $3 billion of annual nickel ore and bauxite exports has already lifted the price of nickel and helped support aluminium, boosting the fortunes of Rusal and Norilsk, the world’s top aluminium and nickel producers, respectively.

At the same time, it has strengthened the case for the pair to invest billions of dollars in Indonesia to build smelters to replace costly capacity in Russia, a key part of a recovery plan for struggling Rusal and in line with Indonesia’s own aims to earn more from its minerals resources.

Multicommodity projects rolling out on Bushveld’s rich northern limb – by Martin Creamer (MiningWeekly.com – March 20, 2014)

March 21, 2014

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

JOHANNESBURG (miningweekly.com) – Multicommodity-focused projects embracing iron-ore, vanadium, titanium and phosphate are rolling out on the rich northern limb of South Africa’s Bushveld Complex, a huge mineral repository best known for its world-leading platinum and chrome endowment.

Currently some of the Bushveld’s least-mined metals and minerals are beginning to come to the fore as experienced South African geologists prove up the area as a new iron-ore province with strong titanium and vanadium by-products.

The Council for Geoscience estimates that the Bushveld hosts between 25-billion tons and 27-billion tons of iron-ore and the metallurgical impediments that have stood in the way of easy exploitation have been steadily removed.

In addition, the Bushveld granites contain tin, as well as fluoride, uranium, base metals and rare earths. “All of a sudden, if you look at the area, it’s probably the richest piece of real estate on the planet,” Bushveld Minerals technical director, Professor Richard Viljoen, formerly of the University of the Witwatersrand, tells Mining Weekly Online in a video interview (see attached).

UPDATE 3-Australia’s Rinehart seals funding for $10 bln iron ore project – by Sonali Paul (Reuters India – March 21, 2014)

March 21, 2014

http://in.reuters.com/

MELBOURNE, March 21 (Reuters) – Australian billionaire Gina Rinehart has secured $7.2 billion in debt for her Roy Hill iron ore mining project, completing all the funding for a giant mine in Western Australia due to start exporting in late 2015.

The 55-million-tonnes a year mine will make Roy Hill Australia’s fourth largest iron ore producer, adding to a looming supply glut built up by bigger rivals Rio Tinto , BHP Billiton and Fortescue Metals Group. “We look forward to becoming a major iron ore producer on an international scale,” Rinehart, chairman of Roy Hill and Asia’s richest woman, said in a statement.

The $10 billion project is already 30 percent built, the company said, including dredging for two deepwater port berths, an airport with a runway big enough for a Boeing 737 plane and villages to house 3,600 construction workers and 2,000 operational staff on site and at Port Hedland.

The debt financing, the biggest ever provided for a mining project, is made up of loans and guarantees from five Export Credit Agencies from Japan, South Korea and the United States and 19 commercial banks from Australia, Japan, Europe, China, Korea and Singapore.

Glencore Xstrata: A controversial colossus – by Lisa Steyn (Mail and Guardian – March 20, 2014)

March 21, 2014

http://mg.co.za/

You probably don’t know it, but almost everyday is a Glencore Xstrata day.

With global sales of $239-billion last year, as reported in its 2013 annual report released on March 18, the commodities colossus straddles markets from chrome and copper to cotton and corn. Its reach is so pervasive that it’s quite likely that the appliances you use or food items you consume each day have in some way been touched by Glencore Xstrata.

The company, based in the low-tax jurisdiction of Switzerland, made collective dividend payments to its seven directors, the largest shareholders, of $500-million during the past financial year. Johannesburg-born Ivan Glasenberg, the Glencore Xstrata chief executive who owns 8.4%, the largest share of the company, received dividend payments of $173-million in 2012 and $182-million last year.

When Glencore listed in 2011 it was owned by just 480 people, all employees. The company, which operates in 50 countries, emerged from obscurity in 2011 when Glencore first listed on the London Stock Exchange. In 2013 it merged with Xstrata in the largest takeover ever seen in the mining industry, at a cost of $46?billion. When it listed on the JSE in November 2013, it was instantly the third largest listing.

Rio Tinto Puts Indian Women in the Driver’s Seat – by Joe Kirschke (Engineering and Mining Journal – March 19, 2014)

March 21, 2014

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

India is no easy place to be a woman. Despite comprising a workforce majority in the teeming nation of 1.2 billion with equal rights under a 1949 constitution, India’s women are almost universally exploited while often denied access to health, education and other basic needs. Worse, the world’s second most populous nation looms among the most dangerous places for gender-based violence.

Madhya Pradesh, one of India’s poorest regions and home to Rio Tinto’s Bunder Diamond Project, is emblematic: In 2011, the National Crime Bureau recorded 3,406 assaults against women—surely a conservative figure, and the highest rate nationwide. But while meeting local women pending development of India’s No. 1 diamond resource the year before, Rio officials noticed another grouping: dozens of raised hands at a community meeting—all hoping for driving skills.

The diversified Anglo-Australian giant is now beating the curve in empowering women in a deeply tribal, hardscrabble land booming India has long since forgotten. Through community development, moreover, Rio Tinto is bringing a Corporate Social Responsibility (CSR) win-win for women in a trajectory where half marry before 18, and 60% of whom give birth within a year amid one of the highest infant mortality rates worldwide.

The story surrounding Rio’s CSR footprint in the 15 villages of 15,000 inhabitants each surrounding its Bunder site dates to 2006, two years after the discovery of porous volcanic outcroppings revealed the deposit.

Sulfate discussion: Wild rice and iron mining can coexist in Minnesota – by Chris Masciantonio and John Rebrovich (Minneapolis Star Tribune – March 19, 2014)

March 20, 2014

http://www.startribune.com/

A reasonable, science-based sulfate standard is the key.

The United Steelworkers and United States Steel have a long history of working together on issues that affect Minnesota’s cherished lakes and countryside, while keeping in mind the importance of preserving the state’s century-long tradition of iron mining. In recent weeks, Minnesotans have heard about multiyear, state-funded scientific research initiated by the Minnesota Pollution Control Agency on the effects of sulfate on wild rice production. The MPCA is soon expected to recommend a standard for sulfate levels in waters used for the production of wild rice.

We support science-based evidence to help Minnesota protect its important natural resource of wild rice. The state-funded research clearly shows that the current wild rice sulfate standard of 10 milligrams per liter — which has never been enforced — is not scientifically supported. This standard was enacted in the 1970s based on observational data from the 1940s. Not only is imposing this 40-year-old standard unnecessary, but it places at risk the future of a healthy taconite mining industry in Minnesota.

Most Minnesotans know United States Steel’s Minnesota ore operations for producing an abundance of the iron ore required by the North American steel industry. We are where steelmaking begins, and we are the reason for the name “Iron Range.”

Ivanhoe Mines finds thick high-grades at Flatreef discovery – by Henry Lazenby (MiningWeekly.com – March 19, 2014)

March 20, 2014

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

TORONTO (miningweekly.com) – Africa-focused project-development firm Ivanhoe Mines on Wednesday revealed that it had uncovered new thick high-grade mineralisation in an area that had become a new extension of the Flatreef platinum/palladium/nickel/copper/gold/rhodium discovery at the company’s Platreef project, on the northern limb of South Africa’s Bushveld Igneous Complex.

The TSX-listed firm reported that drill hole UMT400, recently bored in the Ga-Madiba extension zone on the eastern flank of the Flatreef extension, intersected 48.6 m that contained 4.63 g/t of platinum, palladium and gold (3PE), and 0.30% nickel and 0.13% copper, at a cutoff of 1 g/t of 3PE.

The ratio of platinum to palladium was found to be about 1:1 in the mineralised intercept, while rhodium assays were still pending. The vertical intersection had a true thickness of about 34.4 m when adjusted for the dip of the mineralised zone.

The Ga-Madiba zone, covering about 3.7 km2, adjoins and stretches to the south from the established area of Canadian National Instrument 43-101-compliant inferred resources, which, in turn, surrounds the area of indicated resources that lay at the heart of the Flatreef discovery, and where Ivanhoe is planning to develop an underground mine.

Battle over Essar-led project reflects India’s new mining pains – by Nita Bhalla (Reuters India – March 20, 2014)

March 20, 2014

http://in.reuters.com/

MAHAN FOREST, India (Thomson Reuters Foundation) – With an axe on one shoulder and lugging a large log over the other, Bhajandhari Kushwaha emerges from the dense Mahan forest in central India with his dog by his side after a day of foraging and wood cutting.

For Kushwaha, the timber, leaves and seeds of this centuries-old forest not only sustain his family of five, they represent a vital part of his community’s cultural identity that has suddenly come under threat from two of India’s largest mining companies.

“This forest is our life. We get everything from it,” says the 45-year-old, vowing to fight plans by Mahan Coal Ltd (MCL) – jointly owned by London-listed Essar Energy Plc (ESSR.L) and the Aditya Birla-owned Hindalco Industries Ltd (HALC.NS) – to mine part of the 1,000-square-km (385-square-mile) woods for coal. “Whatever compensation the company is offering us, we do not want it. We will fight until we die, if that’s what it takes.”

It is a sentiment shared by many villagers in this dusty corner of Madhya Pradesh, a sign of growing popular resistance spurred by a new forest law that gives people a greater say over how natural resources are exploited.

Mine strike hits the micro and macro in S.African economy – by Ed Stoddard (Reuters India – March 20, 2014)

March 20, 2014

http://in.reuters.com/

RUSTENBURG, South Africa, March 20 (Reuters) – As South Africa’s biggest post-apartheid mine strike marks its eighth week on Thursday, it is already denting growth and export earnings, and many of those affected are having to sell their most prized possessions to make ends meet.

In an informal bar near the platinum belt city of Rustenburg, striking miner Oupa Majodina holds up his cell phone to show a photo of his pride and joy: his cattle. “I own 11, but I will have to sell some of them. What can I do? I need the cash,” he said glumly as he nursed a beer.

No talks are scheduled between the two sides to the strike, the Association of Mineworkers and Construction Union (AMCU) and the world’s top platinum producers, Anglo American Platinum , Impala Platinum and Lonmin, and they remain poles apart on the issue of wages.

That means the misery will only spread, making an even bigger headache for President Jacob Zuma and the ruling African National Congress on the run-in to May 7 general elections.