THE LUDLOW MASSACRE STILL MATTERS – by Ben Mauk (The New Yorker – April 19, 2014)

http://www.newyorker.com/

On April 20, 1914, members of the Colorado National Guard opened fire on a group of armed coal miners and set fire to a makeshift settlement in Ludlow, Colorado, where more than a thousand striking workers and their families were camped out. Today, the Ludlow massacre, which Caleb Crain wrote about in The New Yorker in 2009, remains one of the bloodiest episodes in the history of American industrial enterprise; at least sixty-six men, women, and children were killed in the attack and the days of rioting that followed, according to most historical accounts.

Although it is less well-remembered today than other dark episodes in American labor history, such as the Triangle Shirtwaist Factory fire that claimed a hundred and forty-six lives, the Ludlow massacre—which Wallace Stegner once called “one of the bleakest and blackest episodes of American labor history”—changed the nation’s attitude toward labor and capital for the next several decades. Its memory continues to reverberate in contemporary political discourse.

In the summer of 1913, United Mine Workers began to organize the eleven thousand coal miners employed by the Rockefeller-owned Colorado Fuel & Iron Company. Most of the workers were first-generation immigrants from Italy, Greece, and Serbia; many had been hired, a decade prior, to replace workers who had gone on strike. In August, the union extended invitations to company representatives to meet about their grievances—including low pay, long and unregulated hours, and management practices they felt were corrupt—but they were rebuffed.

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Australia’s big three miners look to tighten their iron grip – by Jamie Smyth (Financial Times – July 8, 2014)

 

http://www.ft.com/intl/companies/mining

Port Hedland – The man who made a US$10bn bet on the global iron ore market is predicting Australia’s big three miners will tighten their grip on the global industry over the next few years as higher cost producers fall victim to lower iron ore prices.

Andrew “Twiggy” Forrest, founder and chairman of Fortescue Metals Group, says the sharp fall in iron ore prices since the start of the year is causing some smaller Australian producers and overseas competitors to exit the industry.

“Because you have incredibly low operating costs with the big Australian producers we are seeing more substitution take place from China and India as competitors switch off production,” says Mr Forrest, who owns one-third of Fortescue shares.

“The wholesale shutting down of iron ore production industries basically happens in other countries. The Pilbara [in Western Australia] has always been historically the big player.”

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Alcoa pledges finished products push as results beat Wall Street – by Nicole Mordant (Reuters U.S. – July 8, 2014)

http://www.reuters.com/

(Reuters) – Alcoa Inc’s (AA.N) chief executive officer said on Tuesday the aluminum company would push deeper into the market for more profitable finished products like truck wheels and aircraft fuselages as it reported quarterly results that beat analysts’ expectations.

At the same time, CEO Klaus Kleinfeld said Alcoa was focused on cutting costs and improving the performance of its traditional commodity business, which has been hit by weaker aluminum prices.

Alcoa’s shares rose as much as 2 percent in after-hours trading. The company’s stock price is up nearly 40 percent this year.

“The transformation of Alcoa truly is in high gear and the results show this. Our strategy is working,” Kleinfeld said on a conference call.

Alcoa’s strategy to boost value-added fabricated product output and broaden its footprint in other light-weight materials like nickel, titanium and lithium has partially offset the pain of prolonged weak underlying primary aluminum prices on the London Metal Exchange CMAL3, which have been close to or below breakeven for many smelters over the past year.

Alcoa has idled or permanently closed loss-making smelting capacity as it ramps up its smelter complex in Saudi Arabia, which will be the world’s lowest-cost.

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The Ring of Fire’s slow burn (Global Business Reports – July 2014)

Global Business Reports is an international provider of industry specific reports to the global trade and investment community. This article is from a profile about Ontario mining for Engineering & Mining Journal.

http://gbreports.com/industry.php?i=2

Making progress in the mineral-rich region despite setbacks

Development of the Ring of Fire has experienced its share of setbacks recently. In November 2013, Cliffs Natural Resources decided to halt its Big Daddy chromite project, citing risks associated with developing infrastructure in the frontier area of northern Ontario. Companies in the mineral-rich area are dependent upon getting federal and provincial support to fund badly needed infrastructure to the region.

“Obviously, having an industry participant leave the region is never a positive development but we are hoping that there is a
silver lining and this event will underline the need for more timely- decision making regarding key issues such as environmental permitting and infrastructure,” said Alan Coutts, president and CEO of Noront Resources Ltd., whose Eagle’s Nest project is the most advanced in the Ring of Fire.

A number of developments in early 2014 may be the starting point to solving the dilemmas that caused Cliffs to suspend its operations. First, the province of Ontario announced the formation of the Ring of Fire Development Corp. to assess various possibilities to fund infrastructure development and engage with First Nations communities affected by development in the region. The Liberal government went even further, announcing a C$1 billion investment to fund a transportation solution.

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Frustration Builds for Newmont Investors – by ALISTAIR MACDONALD and JOHN W. MILLER (Wall Street Journal – July 9, 2014)

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

Shareholders Lose Patience, Urge Gold Miner to Break Itself Up or Revive Deal With Barrick

In the lobby of the local Elko, Nev., office of Newmont Mining Corp. NEM +2.42% , the world’s second-biggest gold miner by production, a series of posters celebrate almost a century of mining, exploration—and fighting takeovers.

But after another attempt to take over the company failed in April, many investors have lost patience. They are urging the miner to either rekindle this year’s aborted deal with No. 1 Barrick Gold ABX.T +0.35% Corp., or break itself up.

All gold miners are facing a lengthy list of problems—lower gold prices, high costs and declining accessible gold grades. Newmont, based in Greenwood Village, Colo., posted a loss of $2.5 billion last year, the biggest in its history, and its share price has fallen by half since 2011, making it one of the worst performers in the S&P 500.

Investors “are frustrated because they wanted something to happen, after being bruised and battered for the past 18 months,” said Dan Denbow, a portfolio manager for the San Antonio-based United Services Automobile Association, a Newmont shareholder.

Newmont “hasn’t communicated the specifics of what they’re doing,” he said. Now, as many Newmont shareholders clamor for action, the question is: what kind of change do they want?

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India needs to restructure Coal India to raise output -govt report – by Krishna N Das (Reuters India – July 9, 2014)

http://in.reuters.com/

(Reuters) – India needs to restructure state behemoth Coal India Ltd quickly to raise output to feed fuel-starved power plants, the finance ministry said in a report, as the country grapples with rising imports amid a push for electricity to all.

Coal India (CIL), the world’s largest coal miner, accounts for about 80 percent of India’s production of the black rock but has failed to meet its output targets for years due to delays in obtaining environmental approvals to expand mines and what critics say are inefficiencies owing to its size.

Millions go without power in India and blackouts are common. “The process of restructuring CIL needs to be pushed through swiftly to boost coal production,” said the finance ministry in the Economic Survey report presented to parliament on Wednesday.

The report – submitted a day before Finance Minister Arun Jaitley delivers his maiden budget – did not say what kind of restructuring it was recommending for CIL.

Reuters reported in May that newly elected Prime Minister Narendra Modi could explore breaking up some of CIL’s eight local units and making state governments equity holders to help speed land acquisition and other such processes.

The government should also allow commercial mining by private companies, said the ministry’s report.

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Diamonds Regain Their Sparkle for Miners on Rising Demand and Prices – by Alexis Flynn (Wall Street Journal – July 8, 2014)

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

Sector Now Delivering Some of the Healthiest Returns in the Mining World

LONDON—Diamonds, it turns out, may not be forever. There hasn’t been a major new diamond lode discovered for years. Along with rising demand from new consumers in the East, that is good for mining companies whose profits are rising at the most lucrative part of the business: the rock face.

The industry’s shifting dynamics have prompted a rethink by some the world’s biggest mining companies, including Rio Tinto and Anglo American.

For years, falling commodity prices and rising costs made many of them question whether it was worth staying in the diamond business. But now, diamonds have regained their sparkle.

“We expect the demand requirements to grow around 6% per annum for the course of the decade,” said Alan Davies, head of the diamond unit for Rio Tinto, the world’s third-largest diamond producer. “And when you look at the supply response there hasn’t been a major find brought on for a long time.”

Just 18 months ago, BHP Billiton and Rio Tinto each had their diamond units on the block. In 2012, BHP sold its Ekati mine in Canada to jewelry maker Harry Winston Co. for $500 million.

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Zinc Scales The $1 A Pound Barrier And Keeps Going – by Tim Treadgold (Forbes Magazine – July 8, 2014)

http://www.forbes.com/

Last week a 5% rise in the price of zinc over the previous two weeks was considered sufficiently newsworthy to earn a report into what seemed to be the start of a revival in a sector of the mining market known as base metals, which makes it hard to ignore the fact that zinc has just gone up by another 5%.

The latest rise takes zinc, which is largely used to galvanize (rust-proof) steel, over the $1 per pound mark to $1.03, its highest in three years.

Other base metals, including nickel and copper, are also performing strongly as global industrial production continues its slow recovery and mine development continues to suffer from a capital drought.

But, while many investors favor stories from the technology sector early-bird speculators playing the small end of the mining market are making a killing.

Thanks in part to heavy selling over the past three years which has trashed their share prices mineral exploration stocks have been consigned to the bargain basement, though it is getting hard to ignore stocks which double in a matter of days.

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Gold Shines Again as Hedge Funds Boost Wagers on Advance – by Marvin G. Perez (Bloomberg News – July 8, 2014)

http://www.bloomberg.com/

Gold is precious again. After investors sent bullion tumbling in 2013 by the most in three decades and kept dumping the metal earlier this year, demand is now up and prices are defying bearish forecasts. Money managers increased net-long positions for a fourth straight week through July 1 and holdings in exchange-traded products are climbing at the fastest pace since 2012.

“Gold’s performance has proven the bears wrong so far this year,” John Kinsey, who helps manage about C$1 billion ($935 million) at Caldwell Securities Ltd. in Toronto, said in a telephone interview yesterday. “We look for further strength through the balance of the year.”

While the latest government data point to an improved U.S. economy and Goldman Sachs Group Inc. and Societe Generale SA predict prices will retreat by year-end, inflation concerns and pockets of unrest are sending investors into gold as a haven. Prices extended gains after the Federal Reserve signaled earlier this month that it will keep interest rates near record lows and violence spread in Iraq and Ukraine.

The bulls are being rewarded. The value of the gold funds rose by $4.6 billion this year as prices rallied 9.5 percent. The metal has rebounded from last year’s 28 percent plunge that was triggered by muted inflation and as investors shunned the metal in favor of equities.

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Amplats’ Griffith convinced of Rustenburg sale – by Allan Seccombe (Miningmx.com – July 8, 2014)

http://www.miningmx.com/

[miningmx.com] – THE longest mining strike in South Africa’s history has forced the country’s platinum producers to consider accelerating plans to move to smaller, more productive workforces.

According to them, there’s simply no other way of coping with a volatile, unpredictable labour environment, a business restraint which is compounded by the increasingly complicated market for their metals.

Anglo American Platinum (Amplats), the world’s largest primary producer of platinum, has been the most outspoken on its plans. After spending most of 2012/13 trying to restructure its Rustenburg assets, it is now in the throes of a company-changing review.

The outcome is largely expected to see it cast off the deep-level, labour-intensive mines where the sweetest parts of the orebody have been mined out.

“Amplats’ non-core Western Limb assets, Union, and some of its marginal Rustenburg shafts may well be divested by the group in time,” JP Morgan Cazenove’s Allan Cooke and Steve Shepherd said in a recent report.

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Australian nickel projects on sale – by Lawrence Williams (Mineweb.com – July 7, 2014)

http://www.mineweb.com/

Western Australian nickel assets owned by two of the world’s largest producers of the metal have been sold or are currently up for sale and attracting much interest.

LONDON (MINEWEB) – Australian nickel projects, presumably deemed non-core businesses, by mining majors BHP Billiton, and Norilsk Nickel are either reportedly up for sale, or sales have been agreed, which will see some of the country’s nickel production, or potential output move into the hands of new ownership. Australia was the world’s fourth largest nickel producer (after the Philippines, Indonesia and Russia) in 2012.

BHP Billiton, which had previously sold off its Ravensthorpe nickel mine and metallurgical plant to First Quantum back in December 2009 for $340 million – having cost over $2 billion to build – is now looking to sell the rest of its Western Australian nickel operations which come under its Nickel West banner, comprising the Mount Keith Nickel mine, Leinster Nickel mine, Kambalda Nickel concentrator, Kalgoorlie Nickel rmelter and Kwinana Nickel refinery.

There are reportedly six major potential suitors for the package, including Mick Davis’ X2 Resources. BHP inherited its nickel mining operations through the take-over of Western Mining in 2005.

Simultaneously, Norilsk Nickel the world’s largest nickel producer, has announced that through its Australian subsidiaries, MPI Nickel and Black Swan Nickel it has agreed to sell its Black Swan/Silver Swan assets, also located in Western Australia and currently under care and maintenance, to Poseidon Nickel. Norilsk had been reported as planning to sell all of its Australian assets back in May.

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U.S. Seen as Biggest Oil Producer After Overtaking Saudi Arabia – by Grant Smith (Bloomberg News – July 4, 2014)

http://www.bloomberg.com/

The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said.

U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report today. The country became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids.

“The U.S. increase in supply is a very meaningful chunk of oil,” Francisco Blanch, the bank’s head of commodities research, said by phone from New York. “The shale boom is playing a key role in the U.S. recovery. If the U.S. didn’t have this energy supply, prices at the pump would be completely unaffordable.”

Oil extraction is soaring at shale formations in Texas and North Dakota as companies split rocks using high-pressure liquid, a process known as hydraulic fracturing, or fracking. The surge in supply combined with restrictions on exporting crude is curbing the price of West Texas Intermediate, America’s oil benchmark. The U.S., the world’s largest oil consumer, still imported an average of 7.5 million barrels a day of crude in April, according to the Department of Energy’s statistical arm.

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BHP Billiton looks to catch up to Rio Tinto in ironman contest – by Amanda Saunders (The Age – July 7, 2014)

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

Miner BHP Billiton is confident it can ”close the gap” with iron ore arch-rival Rio Tinto on margin per tonne within a few years.

And it is likely to develop the $20 billion outer-harbour project at Port Hedland rather than expand its inner-harbour operation if it moves to produce beyond its current annual run rate target of 270 million tonnes. BHP president of iron ore Jimmy Wilson says the miner is trailing Rio on margin per tonne, and ”our desire absolutely is to close that gap”.

He said the miner would never be in a competition with Rio on volumes but stressed ”where we would like to compete is on the cost of production side, more importantly, the margin per tonne that we make”.

”While we are marginally behind Rio at the moment, we’ve got to back the fact that we are going to eliminate that gap in the foreseeable future,” he says.

”What is the foreseeable future? I’d be disappointed if it took more than a couple of years. ”I do respect our competitors – Rio, Fortescue, Vale – [and] none of them is standing still either. So, I think, at the end of the day, you are going to see an improvement come through for all of those businesses.”

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How politics nearly ruined deal to end South Africa’s longest strike – by ED CROPLEY, JOE BROCK AND ZANDI SHABALALA (Reuters India – July 7, 2014)

http://in.reuters.com/

JOHANNESBURG – (Reuters) – Forty-eight hours after talks to end South Africa’s longest strike hit a brick wall when the mining minister suddenly pulled out, a bishop and an anti-establishment corporate lawyer engineered a deal at a secret meeting in a ritzy hotel.

The events, revealed by interviews with key players in the five-month platinum strike, expose the impotence of the bargaining structures that have underpinned labour relations since the end of white-minority rule in 1994.

They also cast a shadow over the ruling African National Congress (ANC), which admonished the minister for inviting the lawyer to the talks after he had left the ANC to be elected to parliament for the ultra-leftist Economic Freedom Fighters (EFF).

The chastened minister then withdrew from the negotiations, almost scuppering an agreement between the world’s three biggest platinum firms and the striking Association of Mineworkers and Construction Union (AMCU), which has informal ties to the EFF.

“They did not tell me how to withdraw,” the minister, Ngoako Ramatlhodi, told Reuters. “They just told me: ‘We think you have done enough. We want you to go slow on this.'”

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Trafigura Among Six to Enter BHP Nickel Sale, Review Says – by Ben Sharples (Bloomberg News – July 06, 2014)

http://www.businessweek.com/

Trafigura Beheer BV and Sherritt International Corp. (S) are among six companies to enter the sale process for BHP Billiton Ltd.’s Australian nickel unit, according to a report from the Australian Financial Review.

Glencore Plc, X2 Resources, Jinchuan Group Co. and MMG Ltd., a unit of China Minmetals Corp., are also among bidders that have started due diligence on BHP’s Nickel West business, the newspaper reported today, without saying where it got the information. Emily Perry, a Melbourne-based spokeswoman for BHP, declined to comment in an e-mailed response.

BHP said in May it’s considering selling all or part of its Australian nickel unit as prices surge amid an Indonesian export ban on the steel hardening agent. The due diligence process may take months and BHP is keen to finalize a deal by the end of the year, the newspaper said. The business may be worth more than A$800 million ($749 million), according to the newspaper.

Michael Oke, a spokesman for London-based X2 Resources, Francis de Rosa, a Sydney-based spokesman for Glencore, and Kathleen Kawecki, a Melbourne-based spokeswoman for MMG, didn’t immediately respond to e-mails sent outside of normal business hours seeking comment on the sale process. Three calls to Gao Tianpeng, the general manager of Jinchuan’s asset operation department, went unanswered.

Amsterdam-based Trafigura and Toronto-based Sherritt didn’t immediately respond to e-mails seeking comment.

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