International Media Resource Articles – Page 752

UPDATE 2-Glencore names ex-BP boss Tony Hayward as chairman – by Silvia Antonioli and Karolin Schaps (Reuters India – May 8, 2014)

May 8, 2014

http://in.reuters.com/

LONDON, May 8 (Reuters) – Glencore Xstrata named Tony Hayward, the ex-BP chief severely criticised for his role in the Gulf of Mexico oil spill, as permanent chairman of the mining and commodities trading group, ending a year-long search.

Hayward, who has been Glencore Xstrata’s interim chairman since Sir John Bond was ousted by shareholders last year, is also chief executive of London-listed oil company Genel Energy Plc.

His confirmation as chairman of one of the world’s largest mining groups completes Hayward’s return to the top of the corporate world after he was forced out of BP following the catastrophic 2010 Deepwater Horizon oil spill.

Hayward is expected to eventually step down as chief executive of Genel, the oil and gas explorer he has invested in alongside British-born financier Nat Rothschild, a source close to the matter said.

Genel, which focuses on producing oil in the autonomous Iraqi region of Kurdistan, declined to comment on whether Hayward would leave.

Gold Fields CEO Sees South Deep Mine Ready by End 2017 – by Kevin Crowley (Bloomberg News – May 8, 2014)

May 8, 2014

http://www.bloomberg.com/

Gold Fields Ltd. (GFI)’s South Deep mine, plagued by delays since it was bought for $3 billion in 2006, will underpin long-term growth and be ready for full output by 2017, Chief Executive Officer Nick Holland said.

The company’s only South African asset, and the world’s second-biggest gold deposit, will produce 650,000 to 700,000 ounces a year at about $900 an ounce by the end of 2017 even with disruptions in the first quarter, he said.

“The build-up in production is going to come with a commensurate reduction in the cost base,” Holland said in an interview. “We’ve got all the infrastructure already built.”

Gold Fields needs South Deep to help reverse a 54 percent slump in its stock since spinning off three South African mines to create Sibanye Gold Ltd. (SGL) in February last year. The mine cost Gold Fields about $4 billion, including the purchase price, and is seen producing 700,000 ounces a year until at least 2075.

South Deep “is going to fundamentally change the group’s margin delivery and performance,” Holland said.

UPDATE 1-Stanford University ending investments in coal companies – by Rory Carroll (Reuters India – May 7, 2014)

May 7, 2014

http://in.reuters.com/

May 7 (Reuters) – Stanford University said on Tuesday it will no longer use any of its $18.7 billion endowment to invest in coal mining companies, a move aimed at combating climate change that could influence college administrations elsewhere.

The university’s board of trustees agreed with recommendations from a panel of students, faculty, staff and alumni that found investments in alternatives to coal would be less harmful to the environment. The burning of coal for electricity is a major contributor to the output of heat-trapping greenhouse gas emissions globally.

The Stanford announcement is the most significant to date from a major, well-endowed college or university in the United States amid a growing movement by students around the country to pressure their institutions to divest from fossil fuels.

“The university’s review has concluded that coal is one of the most carbon-intensive methods of energy generation and that other sources can be readily substituted for it,” said Stanford President John Hennessy.

It was announced on the same day the White House released a report warning that climate change was already affecting the United States in the form of more severe droughts in some areas and more intense storms in others.

In waste rock, mining companies find opportunity and create jobs [Minnesotta iron range] – by Dan Kraker (Minnesota Public Radio – May 4, 2014)

May 7, 2014

http://minnesota.publicradio.org/features/

The rising price of iron ore and other metals in the last decade has led mining companies to an important discovery: There’s money to be made in what was once considered waste.

Minnesota’s Iron Range is littered with the legacy of 130 years of iron mining. Mine pits, enormous waste rock piles and tailings basins dot the landscape.

A newfound interest in the leftover rock is leading to a resurgence of mining on the western edge of the Iron Range, between Grand Rapids and Hibbing.

At the forefront is a company called Magnetation, which is building its fourth plant outside Grand Rapids. In what old mining companies considered junk rock, Matt Lehtinen, the company’s 32-year-old president, sees opportunity.

“Behind me here is actually a stockpile of waste iron ore called coarse tailings, about 400,000 tons of high grade waste, that 50 years ago was waste, but now is actually considered high grade feed for us for this plant,” he said.

COLUMN-Bulls lose patience with zinc’s slow-burn story – by Andy Home (Reuters U.S. – May 7, 2014)

May 7, 2014

http://www.reuters.com/

Andy Home is a Reuters columnist. The opinions expressed are his own.

May 7 (Reuters) – Markets are fickle things. A few months ago zinc was the only game in town among the base metals traded on the London Metal Exchange (LME). The market was chasing a bullish story of pending supply shortfall as some of the world’s largest mines reach the end of their natural lives.

Now, however, metal bulls are shunning the zinc market, turning their attentions to nickel with its equally compelling story-line of mine shortfall after the January imposition of a ban on nickel ore exports by Indonesia.

LME three-month nickel has gained 30 percent, while three-month zinc has fallen by 2 percent since the start of this year. So what has changed to explain zinc’s fall from bullish favour? Nothing, according to Canadian producer Teck Resources , which in its Q1 2014 results reiterated the bull argument for zinc.

“We believe the outlook for zinc is the most favourable of the base metals. With recent and expected closures of a number of zinc mines, we believe that approximately 1.5 million tonnes of current zinc mine production will be closed by the end of 2016 in a 13 million tonne per year market.”

Glencore Xstrata plumbs new depths at nickel mine – by Neil Hume and James Wilson (Financial Times – May 6, 2014)

May 7, 2014

http://www.ft.com/home/us

Glencore Xstrata has revealed further problems with one of the “greenfield” projects it inherited through its takeover of rival mining group Xstrata, underlining the difficulties of developing large mines from scratch in far-flung locations.

Koniambo, a nickel mine on the Pacific island of New Caledonia, has been dogged by cost overruns and delays since it was approved by Xstrata seven years ago.

The budget has risen from $3.8bn to more than $6bn, and production forecasts have been revised several times.
Glencore had expected output to reach 26,000 tonnes of nickel this year, rising to 55,000 tonnes in 2015.

But in a trading statement released on Tuesday, the Swiss-based company said Koniambo had produced just 1,000 tonnes of nickel in the first quarter of 2014 because of problems with power supplies and maintenance. “Forecast full-year production levels are being reviewed in light of the quarterly operational performance and the start-up experiences to date,” Glencore said in a statement.

Koniambo is one of several instances where Glencore has had to revise the engineering plans left by the previous Xstrata management team.

New documentary explores South Africa mine shootings – by Nomatter Ndebele (Reuters India – May 6, 2014)

April 5, 2015May 7, 2014

http://in.reuters.com/

JOHANNESBURG, May 6 (Reuters) – It was like a scene from the darkest days of apartheid: South African police opening fire with live ammunition, killing 34 striking black miners demanding a “living wage” from an international firm rich in capital.

But the killings outside of the Marikana mine of platinum company Lonmin happened on August 16, 2012, almost two decades after Nelson Mandela’s “Rainbow Nation” exchanged white-minority rule for multi-racial democracy.

A new documentary “Miners Shot Down”, by South African filmmaker Rehad Desai, explores the events leading up to what has been dubbed “the Marikana Massacre”.

The film has a special resonance at the moment because most of the country’s platinum miners have been on strike for a “living wage” of 12,500 rand ($1,200) a month for the past 15 weeks and a general election will be held on Wednesday.

Fortescue Metals to diversify beyond China – by Jamie Smyth (Financial Times – May 6, 2014)

May 6, 2014

http://www.ft.com/home/us

Fortescue Metals Group, one of the “big three” Australian iron ore miners, is expanding its customer base beyond China as global investors fret over how a slowdown in Chinese economic growth will affect steel demand.

Nev Power, Fortescue’s chief executive, said the company was supplying some customers in South Korea, and wanted to trial iron ore sales to Japan and across Asia.

“We will keep an open mind as other economies such as India develop. The Taiwanese are developing a steel mill in Vietnam so there is starting to be diversification. I think there are opportunities for us,” he said.

The price of iron ore – used in steelmaking – suffered one of its biggest one-day falls in March over fears that a cooling Chinese economy would damp demand for the raw material at a time when production reached record highs.

Iron ore prices fell again last week following a warning by Vale, the Brazilian miner, that supply had outstripped demand for the first time in a decade due to softening China demand. Mr Power said price volatility was being driven by the rundown of high stock levels at Chinese ports, and Beijing’s recent crackdown on iron ore import loans.

Why Ukraine Crisis Could Drive Nickel To $25,000/Tonne – by (Forbes Magazine – May 5, 2014)

May 6, 2014

http://www.forbes.com/

Nickel has enjoyed a solid price spurt in recent months, fuelled by fears over heavy supply disruptions after Indonesia — home to around a fifth of total nickel production — placed an export ban on nickel ore back in January.

The move was prompted by a 2009 law calling for more domestic refined output, a situation which is significantly hampering Chinese production of nickel pig iron (NPI) as ore shipments dry up. As Indonesian refining capacity could be described as inadequate at best, nickel prices have shot 35% higher since the turn of the year, striking 14-month peaks above $18,700 per tonne in the process and looking poised for another move skywards.

Meanwhile, the evolving political situation in Ukraine is also adding pressure to the nickel market, and analysts reckon that a backdrop of escalating trade restrictions on Moscow from the West could add fresh ammunition for the metal to surge still higher.

Indeed, Bank of America-Merrill Lynch upped its price forecasts in recent weeks in anticipation of lingering output issues worldwide, and fully expects the metal to strike $25,000 within the next 12 months.

The institution reckons that issues in Indonesia are set to push the nickel market into deficit next year, while the possibility of curbs on Russian shipments could drive stocks to critically low levels in coming months.

Banks Sued on Claims of Fixing Price of Gold – by Alan Feuer (New York Times – May 5, 2014)

May 6, 2014

http://www.nytimes.com/

Frustrated traders and offbeat activists have complained for years in whispers and in online screeds that the price of gold has been subject to collusion. On Monday, these accusations of manipulation found a more august arena for expression: the federal courts.

At a 40-minute hearing, lawyers for more than 20 plaintiffs gathered in Federal District Court in Manhattan to coordinate their linked lawsuits against the five banks that make up what is known as the London gold fix. The suits, filed by hedge funds, private citizens and public investors like the Alaska Electrical Pension Fund, contend that the banks have used their privileged positions as market makers to rig the price of gold to their benefit.

The lawsuits — the first of which was filed in March — question the integrity of the gold fix, which dates to 1919, when a handful of bankers began to meet in the wood-paneled offices of N. M. Rothschild & Sons in London. The purpose of the fix is to set a benchmark price for gold, which is subsequently used by dealers, central banks and mining firms to buy and sell the precious metal and its various derivatives.

These days, the fix takes place by phone twice a day — at 10:30 a.m. London time and again at 3 p.m. — and generally lasts 10 minutes to an hour. According to one of the suits, “The ‘great flaw’ of the gold fixing process is that the member banks trade on the information exchanged during the call to manipulate the price of gold and gold derivatives before publication of the gold fix to the wider market.”

China’s Baosteel in $1 billion bid to revive Australia iron ore project – by Sonali Paul (Reuters U.S. – May 5, 2014)

May 6, 2014

http://www.reuters.com/

SYDNEY – (Reuters) – Chinese steel giant Baosteel Resources and an Australian partner launched a $1 billion takeover bid for Australian explorer Aquila Resources in a move that could help break the grip of mega iron ore exporters Rio Tinto and BHP Billiton.

Monday’s unsolicited A$1.14 billion ($1.06 billion) offer to take over Aquila Resources Ltd (AQA.AX) could open up a new Australian iron ore export region to supply Asian steelmakers, by jumpstarting the $7 billion West Pilbara Iron Ore project (WPIO), half-owned by Aquila.

State-owned Baosteel’s move would be the biggest foray into an undeveloped iron ore project in Australia by a Chinese investor since CITIC Pacific’s (0267.HK) $10 billion Sino Iron project, which began producing last year after massive cost blowouts and delays.

Baosteel, which already has a 20 percent stake in Aquila, said it first invested in the company back in 2009 to help it fund the iron ore project and a separate coking coal mine.

“But after five years we haven’t seen any projects being started. So we have been very patient, but we’ve become frustrated,” chief financial officer Wu Yiming told reporters on a conference call from Sydney.

Famed Gold Rush era shipwreck yields more treasure – by Dorothy Kosich (Mineweb.com – May 6, 2014)

May 6, 2014

http://www.mineweb.com/

One of the U.S’s most famous shipwrecks – and the millions of dollars in gold that it carried when it went down 4 years before the U.S. Civil War – is being re-explored after 23 years.

RENO (MINEWEB) – Nearly 1,000 gold ounces (28 kilograms) have been recovered during the first reconnaissance dive since 1991 to the SS Central America shipwreck site deep in the ocean east of Charleston, South Carolina.

Launched in 1853, the SS Central America is an 85-meter (280 foot) wooden-hulled, three-masted side-wheel steamship that operated during the California Gold Rush era, making 43 round trips between New York City and Panama.

On August 20, 1857, the mail steamer Sonora left San Francisco harbor carrying about 600 passengers and crew, as well as 10 tonnes of gold ingots, freshly-minted U.S. $20 Double Eagle coins, nuggets and gold dust mined in the California Gold Rush.

It also carried the largest Gold Rush relic, the Eureka Bar, which weighed 933.94 troy ounces, and was valued at $17,433 in 1857. The Eureka gold bar was scheduled to be melted and turned into coinage at the Philadelphia Mint.

UPDATE 2-S.Africa’s Harmony Gold scales back Papua-New Guinea project – by Ed Stoddard (Reuters India – May 6, 2014)

May 6, 2014

http://in.reuters.com/

JOHANNESBURG, May 5 (Reuters) – South Africa’s Harmony Gold has scaled back the size and expenditure on building its Papua New Guinea Wafi-Golpu mine, enabling it to raise funding for the project, its chief executive said.

The gold and copper project, a joint venture with Newcrest Mining, sits on deposits with a metal content estimated to be worth $85 billion at current prices. The plans unveiled in 2012 called for spending of almost $6 billion to develop it.

The mining firm is now looking at a “significantly lower capex, something that will be well within our reach to fund”, CEO Graham Briggs told Reuters on Tuesday, after Harmony released its results for the March quarter.

“August is the time when we will be able to release more information on that,” he added. Harmony has scaled back its original plans as mining investors globally have shied away from big capital expenditures on projects in the face of rising costs and falling prices.

“The timing of big builds and the raising of that sort of money, and debt levels and shareholder views changed our minds, and now we are talking about a significantly smaller mine,” Briggs said.

Australian coal mining is entering ‘structural decline’, reports claims – by Oliver Milman (The Guardian – May 5, 2014)

May 5, 2014

http://www.theguardian.com/uk

Demand from India and China predicted to falter due to higher uptake of renewables and make huge coal mining projects commercially unattractive

Coal mining in Australia is entering a “structural decline”, with projects set to become unviable due to unrealistic expectations over the potential to export the fossil fuels to China and India, according to a new report.

The study, by the US-based Institute for Energy Economics and Financial Analysis, suggests that two huge coal mining projects in central Queensland, backed by Indian cash, “are likely to prove uncommercial” due to unfavourable market conditions.

The projects, backed by Adani and GVK, which bought its coal assets from Gina Rinehart in 2011, will attempt to open up vast deposits of coal buried in the Galilee Basin region. Clive Palmer’s China First mine is also slated for completion by 2017, removing a projected 40m tonnes of coal a year for export.

But the IEEFA analysis shows that the wholesale cost of electricity in India, a key export market, is half that of Galilee coal-fired power, making it financially unattractive for the Indian government.

RPT-UPDATE 3-S.Africa’s Zuma slams striking union for risking mining jobs – by Ed Stoddard (Reuters India – May 5, 2014)

May 5, 2014

http://in.reuters.com/

JOHANNESBURG, May 5 (Reuters) – South African President Jacob Zuma has accused the AMCU union of irresponsibility for dragging out a wage strike in the platinum sector for almost four months, telling reporters there was a risk of workers losing their jobs because of the dispute.

Zuma, who has made little previous direct comment about the strike, took aim at the Association of Mineworkers and Construction Union (AMCU) on Monday, underscoring political concerns about the stoppage and its impact on Africa’s most advanced economy, ahead of general elections on Wednesday.

“The union leaders have a responsibility … to ensure workers are protected so they don’t lose their jobs. You can’t get into a strike that at the end the workers lose their jobs. That’s your responsibility,” Zuma told a news conference.

Mining companies joined the attack on AMCU, saying intimidation was being used to keep its members in line and they would continue with their strategy of putting their offer directly to employees to bypass the union’s leadership. But using typically combative language and evoking class warfare, AMCU President Joseph Mathunjwa lashed out at the “platinum cabal” and its “exploitation of workers.”