International Media Resource Articles – Page 739

The Mines Have Shut Down. The Miners Haven’t.- by Danny Hakimmarch (New York Times – March 29, 2014)

March 31, 2014

http://www.nytimes.com/

Down a homemade mine shaft in southwestern Poland, a would-be comedian sang in the faint glowing light. The strains of “Ob-La-Di, Ob-La-Da,” in rhythm with a pick ax, rose up from eight yards underground. The song stopped.

“A huge chunk of coal has fallen on my finger!” the miner yelled up the shaft. “Now I can’t pick my nose!”

The sky was black and the stars blazed, especially the constellation Orion. In the nearby city of Walbrzych, the bells had just tolled. It was 9 p.m., the temperature was below freezing, the wind bitter. But for many miners here, in a region known as Lower Silesia, work was just beginning.

The practice of digging coal illegally is often called “rathole mining.” It is better known in places like India, or in South Africa, where illegal mining accidents recently killed five men. But it’s also common in Lower Silesia, near the Czech border.

Poland is Europe’s largest producer of hard coal, and both black and brown coal mines flourish in other parts of the country, from abundant mines in Upper Silesia to the north, to the giant open pit mine in Belchatow, in the east.

The Fight for Wisconsin’s Soul [iron ore mining] – by Dan Kaufman (New York Times – March 29, 2014)

March 31, 2014

http://www.nytimes.com/

WISCONSIN has been an environmental leader since 1910, when the state’s voters approved a constitutional amendment promoting forest and water conservation. Decades later, pioneering local environmentalists like Aldo Leopold and Senator Gaylord Nelson, who founded Earth Day in 1970, helped forge the nation’s ecological conscience.

But now, after the recent passage of a bill that would allow for the construction of what could be the world’s largest open-pit iron ore mine, Wisconsin’s admirable history of environmental stewardship is under attack.

The mine, to be built by Gogebic Taconite (GTac), owned by the coal magnate Chris Cline, would be in the Penokee Hills, in the state’s far north — part of a vast, water-rich ecosystem that President John F. Kennedy described in 1963, in a speech he delivered in the area, as “a central and significant portion of the freshwater assets of this country.”

The $1.5 billion mine would initially be close to four miles long, up to a half-mile wide and nearly 1,000 feet deep, but it could be extended as long as 21 miles. In its footprint lie the headwaters of the Bad River, which flows into Lake Superior, the largest freshwater lake in the world and by far the cleanest of the Great Lakes. Six miles downstream from the site is the reservation of the Bad River Band of Lake Superior Chippewa, whose livelihood is threatened by the mine.

Raoghat mines in Bastar: Iron in their souls – by Paramita Ghosh (Hindustan Times – March 29, 2014)

March 31, 2014

http://www.hindustantimes.com/

Hills can be unkind, if you are climbing them, or even if you are trying to save them. They have no properly marked-out roads, the clock here is meaningless, but there is shade, and the trees here are everything. The trees point to the sky like compasses; they pelt down flowers, sour-sweet fruits; their leaves are eaten by cows and men; they house the gods, and gods here are like relatives – so why can’t the people keep them?

The nearby Bhilai Steel Plant (BSP) iron-ore mine had led to massive deforestation in Dalli-Rajhara, destroyed fields of grain and corn, led to land seizure, so would its mine at Raoghat be any different? For over 10 years, Badri Gawde, 38, a social worker from Antagarh, a tribal-dominated no-frills town, 20 km from the Raoghat hills and 80 from Kanker city, had been asking himself this question. Lately, he had begun to ask it a little more insistently, holding public meetings, facilitating study trips for academics, tying-up with Chhattisgarh’s unruly bunch, the mine workers, and the state’s two-bit village officials, the sarpanches, and thinking himself up into a leader. Why not say he was a Maoist? And they did.

Gawde’s political pedigree is mixed. Ever since January 24, 2014, when he was picked up at Antagarh, and held in Raipur’s Central Jail under the draconian Public Security Act, he has become, like Lalgarh’s Chhattradhar Mahato, nobody’s man. Naresh Thakur, a Kanker Congress leader, admits Gawde was “with the party”, the state Congress chief, Bhupesh Baghel, said he was a BJP man.

It Is Staggering How Much Australia’s Mining Boom Has Changed Perth And Its People – by Chris Pash (Business Insider Australia March 28, 2014)

March 28, 2014

http://www.businessinsider.com/

Imagine this horror: your child has just reached dating age, and their first crush is on the son or daughter of someone you went out with in your youth, a relationship that ended disastrously.

It was once a common story in Perth, Western Australia, but less so now as the state continues to grow faster than any other in Australia, in both population and its economy.

That comfortable big-country-town feeling is fading, as fast as the red dust of the North West is being shifted to get at the valuable minerals beneath it.

The mining boom of the last decade has done many things for the state and for Australia, most notably being the economic factor that stopped Australia dipping into negative economic growth during the Global Financial Crisis. China is the biggest recipient of Australia’s exports. About half those exports are iron ore from Western Australia. Ten years ago, it was only 16%.

Back in the 1970s, about 1 million tonnes of iron ore was being shoveled from the ground each week. Now it’s about 1.5 million tonnes a day. Visitors from the east say the same things. “Great place, beautiful beaches, bloody expensive. You won’t believe what I paid for bacon and eggs. And the coffee at $5 is rubbish.”

Coal Mines Face ‘Crunch Time’ as ARMS Mulls Closing Mine – by Jesse Riseborough (Bloomberg News – March 28, 2014)

March 28, 2014

http://www.businessweek.com/

A slump in coal prices to a four-year low means the biggest producers are facing tough decisions to shutter unprofitable mines, Asia Resource Minerals Plc (ARMS) Chief Executive Officer Nick von Schirnding said.

His company, Indonesia’s fifth-biggest exporter of the power-station fuel, is considering closing its largest pit where almost half its production last year was sourced. The world’s biggest exporters, Glencore Xstrata Plc, Rio Tinto Group and BHP Billiton Ltd., have either halted coal operations or shelved expansion plans amid the price decline.

“This is crunch time for our business and the coal industry,” Von Schirnding said today. “Our most challenged pit is Lati, and that we are looking at very, very carefully. Clearly if thermal-coal prices continue at this level for a significant time, we are, as others are, going to be very challenged.”

Prices last week dropped to about $73 a metric ton, the lowest since November 2009, amid a supply glut that’s projected by UBS AG to be the equivalent of 4 percent of annual seaborne trade this year. Asia Resource Minerals today reported a wider full-year underlying loss of $173 million after selling coal for 16 percent less than in 2012.

Stars Aligned for Nickel Bull Market – by Tim Maverick (Wall Street Daily – March 27, 2014)

March 28, 2014

http://www.wallstreetdaily.com/

Russian President Vladimir Putin’s actions have certainly stirred the pot in the energy market, as our Investment Director, Karim Rahemtulla, recently pointed out. And now, the ripples have spread far beyond the energy market to other commodity markets.

You see, the threat of Western sanctions against Russia has put renewed focus on a base metal that’s been in the doldrums for years… nickel.

That’s because the world’s largest producer of the metal, which is used to make stainless steel and nonferrous alloys, happens to be Mother Russia’s Norilsk Nickel (NILSY). NILSY mines a whopping 17% of the world’s nickel each year. Sanctions against such a huge source of nickel would indeed be a big deal, and share prices are reacting accordingly.

Nickel is suddenly in bull market mode, and prices recently hit their highest level since April at $16,230 per metric ton on the London Metals Exchange (LME). That represents a gain of more than 20% since nickel’s low on January 9, at $13,334 per ton, and meets the technical definition of a bull market.

Ivanhoe PEA provides glimpse of SA’s potential platinum future – by Jeff Candy (Mineweb.com – March 28, 2014)

March 28, 2014

http://www.mineweb.com/mineweb/

The miner is planning to have an 8 million t/y platinum operation up by 2024, at costs of under $500 an ounce excluding by-product credits.

GRONINGEN (MINEWEB) – Ivanhoe Mines’ preliminary economic assessment of its Platreef PGM project in South Africa is some welcome good news for a sector that has had more than its fair share of bad.

As the world’s three largest platinum miners continue to bleed in the wake of a strike that has cost them and their workers billions of rands, Ivanhoe’s PEA, released yesterday, confirms the size and scope of a project that not only has the benefit of significant base metal credits, but also ore veins that are wide enough to accommodate mechanised mining.

Driving home the difference between Platreef and its deep, thin-veined peers, CEO, Robert Friedland commented, “We’re looking forward to working with all of our stakeholders to advance the Platreef Project to production, to create valued and skilled jobs and to significantly contribute to the socio-economic development of the people of area communities who will have a voice in decision making and a direct share in our success through our responsively structured, broad-based, black economic empowerment partner.”

China’s ‘airpocalypse’ good news for commodities – by Howard Winn (South China Morning Post – March 27, 2014)

March 27, 2014

http://www.scmp.com/news

The mining industry may be in the doldrums but Robert Friedland, the executive chairman and founder of Ivanhoe Mines, remains undaunted and sees commodity prices bouncing back in two or three years, as he told the Mines & Money conference in Hong Kong earlier this week.

We make no apologies for giving you yet more of him, as he tells the best stories in the sector. Of hard and soft rocks, mineral grades and so on, he gives you all that, but tells you why it is important, and where this stuff is being used.

Naturally he has an interest in telling these stories since Ivanhoe is developing some of the world’s most significant finds in copper, zinc and gold in Africa. His big themes this week include copper. So why zinc? The metal is now recognised, along with potash, as one of the most intense organic fertilisers.

Some 60 per cent of soils in China and India have been depleted of zinc. Agricultural productivity increases significantly when added to the land as fertiliser.

COLUMN-Indonesia nickel, bauxite ban yet to hit China – by Clyde Russell (Reuters U.S. – March 27, 2014)

March 27, 2014

http://www.reuters.com/

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

(Reuters) – Indonesia’s ban on exporting unprocessed nickel and bauxite has been in force for more than two months, but the impact has yet to fully show up in Chinese imports.

China’s trade data for February shows nickel ore imports from Indonesia were about 3.1 million tonnes, down only 2.5 percent from the same month a year earlier.

Indonesia’s ban on exporting unprocessed minerals took effect on Jan. 12, and while there have been some moves to relax restrictions on copper and other ores, the total ban on nickel and bauxite remains.

Nonetheless, Indonesia’s share of China’s total nickel imports in February was 87 percent, showing the world’s biggest buyer of commodities hasn’t made a marked shift as yet to alternative suppliers.

In the first two months of the year China imported 9.2 million tonnes of nickel ore from Indonesia, a 29.1 percent jump over the same period in 2013.

Cliffs Natural Resources Booted From S&P 500, To Be Replaced By Essex Property Trust – by Maggie McGrath (Forbes Magazine – March 26, 2014)

March 27, 2014

http://www.forbes.com/

Cliffs Natural Resources CLF +1.25% has had a rough go of it recently: after posting a 32.5% loss in 2013, the struggling iron ore producer has continued to take a beating in 2014 trading. And now, its near-24% year-to-date decline has not only secured its title as one of the worst performing S&P 500 stocks over the past 12 months, but it has also gotten Cliffs booted out of the S&P 500 and into the S&P midcap 400.

The S&P Dow Jones Indices announced Wednesday evening that effective April 1, Cliffs will no longer be a member of the S&P 500. In its place will be Essex Property Trust, a REIT that is currently a member of the S&P midcap 400. In addition to moving up to the S&P 500, Essex will also acquire BRE Properties in a deal that is expected to be completed after the markets close on April 1.

As BRE currently resides on the S&P 400, its departure leaves room on the midcap index for the Fei FEIC +3.63% Company, an Oregon-based supplier of scientific instruments that is currently listed on the S&P Smallcap 600.

“Cliffs Natural Resources and FEI have market capitalizations that are more representative of the mid-cap market space,” the S&P Dow Jones Indices said, explaining the switch.

New Mexican miners commemorate “Salt of the Earth” – by Roberta Wood (People’s World – March 26, 2014)

March 27, 2014

http://peoplesworld.org/

GRANT COUNTY, N.M. – “Where is Anita Torrez?” growled the sheriff’s deputy at the young pregnant woman sitting at a table stuffing envelopes inside the union hall’s doorway.

“I really have no idea,” answered Anita Torrez with a good show of calm. The deputy had come on the sheriff’s orders to round up those on a “wanted list” of union wives. The frustrated deputy finally went on his way and the women laughed heartily. But it didn’t take away the fear.

More than 60 years later, Torrez is still iron-willed but soft-spoken, so she is reluctant to talk about herself and didn’t tell that story when she spoke on Mar. 15 at the University of Western New Mexico on a panel titled “From Women’s Auxiliary to Women of Steel.” But she did eagerly share it with family and comrades over a plate of carne asada, beans, rice, and plate-sized flour tortillas. The meal preceded the panel and was prepared by brothers from a steelworker local in nearby Tucson using a portable grill outside the same local hall where Torrez outwitted the sheriff’s deputy.

The confrontation took place in 1951 during a miners strike here. The strike was marked by government and company intimidation and violence and a new role for women. The story of the courage of the women led to the making of a unique movie, “Salt of the Earth” whose 60th anniversary was commemorated last weekend.

Fear of deadly reprisal, hunger, in Rustenburg as SA platinum strike marches on – by Ayanda Mdluli (Mineweb.com – March 27, 2014)

March 27, 2014

http://www.mineweb.com/

Mineweb correspondents investigate conditions and perspectives in Rustenburg – the town at the heart of a strike in South Africa’s platinum sector.

RUSTENBURG (MINEWEB) – When workers sell their hard earned possessions to buy food in the platinum belt of Rustenburg for lack of earnings after nine weeks of a brutal strike one can conclude bread-and-butter politics truly have the region in its grip.

Many stores are shuttered, except pawn shops, which are overflowing with household items that have been sold for next to nothing. In Rustenburg homes, cooking pots once filled with solid chicken cuts now swim with chicken heads and feet instead.

“I would love to talk to you about what is going on but the problem is that I am just too hungry and I need to look for something to eat. The problem is here,” says a middle-aged man, pointing to his abdomen.

His point made, the man, who claims to be a worker in the Karee Mine at Lonmin in Marikana, Rustenburg, South Africa, walks slowly away down the dusty street.

Congo’s mining tax increase plan rattles investors – by Peter Jones (Reuters U.S. – March 26, 2014)

March 26, 2014

http://www.reuters.com/

GOMA, Democratic Republic of Congo, March 26 (Reuters) – D emocratic Republic of Congo aims to double tax revenues from minerals but investors warned that an overhaul of the mining code could remove incentives to invest there.

Prime Minister Augustin Matata Ponyo told a mining conference in the eastern city of Goma that the government intends to increase tax revenues from mining to 25 percent of the national budget by 2016, from 14.5 percent at present.

“Exploitation of natural resources is key to our ambition of becoming an emerging market country by 2030,” he said.

Congo produced a record 943,000 tons of copper last year, making it Africa’s largest producer and driving economic growth of 8.5 percent. Mismanagement, corruption and two decades of violence in eastern Congo have hampered development of other minerals, including diamonds, gold, cassiterite and coltan. Mining executives warned the government’s ongoing revision of the 2002 mining code risked deterring much-needed investment.

“We need a mining code that is sufficiently incentivising,” said Louis Watum, general manager of Randgold’s giant Kibali mine in Congo’s remote northeastern Orientale Province, which poured its first gold in September.

Jim O’Neill: BRICs, MINTs strong despite emerging market wobbles – by Tim Cocks (Reuters India – March 25, 2014)

March 26, 2014

http://in.reuters.com/

LAGOS – (Reuters) – The large, fast-growing emerging market countries dubbed the BRICs and MINTs are still likely to be the most promising investment destinations over the next decade, despite emerging market turbulence, Jim O’Neill, who coined the terms, said.

Former Goldman Sachs economist O’Neill came up with the name BRIC in 2001 to group Brazil, Russia, India and China as countries whose growth will shape the world economy in the coming decades.

This year, in a series on BBC radio, he championed the MINT group of countries, similarly blessed with fast economic growth and large, young populations – Mexico, Indonesia, Nigeria, Turkey – as the next economic giants after the BRICs.

“The BRIC and the MINT countries, if I’m right, over the next decade will … shape the world economy’s development,” O’Neill told Reuters on Tuesday on the sidelines of an Africa Finance Corporation conference in Nigeria’s commercial hub of Lagos. “And if that’s the case, they will be the most successful places in terms of investments too.”