International Media Resource Articles – Page 755

Florence [Arizona] scoffs at mining company’s claim – by Christina Sampson (Casa Grande Dispatch – December 13, 2013)

December 13, 2013

http://www.trivalleycentral.com/casa_grande_dispatch/

Town manager calls Florence Copper’s filing ‘grandstanding’

FLORENCE — A claim for $403 million by Florence Copper, the company that wants to build an in-situ copper mine on 1,182 acres it owns off Hunt Highway, was termed “grandstanding” by Assistant Town Manager Jess Knudson in a Tuesday press release.

“The only reason to file a $403 million notice of claim to say you have a right to compensation in that amount is to grab a headline,” Knudson said in the statement.

In October, Florence filed a lawsuit in Pinal County Superior Court seeking a declaratory judgment that Florence Copper has no historic right to mine the land. Florence Copper responded to the town’s action by filing a compensation claim for the fair market value of the land based on an appraisal by Deloitte LLP, a third-party accounting and financial firm.

If the court rules that a historic right to mine does exist on the land, the town plans to condemn the land and take it by eminent domain. However, should that occur the town would have to pay just compensation for the land as determined in court.

Now is the time to be focusing on exploration – McEwen – by (Mineweb.com – December 13, 2013)

December 13, 2013

http://www.mineweb.com/

In an interview with Tekoa Da Silva, McEwen Mining CEO, Rob McEwen, discusses the current state of the market and how one should be approaching it.

BULLMARKETTHINKING.COM – During a time of continued stagnation in both share prices and sentiment in the mining sector, Rob McEwen, Chairman and Chief Owner of McEwen Mining, was kind enough to share a few comments.

Of particular interest to investors, Rob noted that the next move higher for the sector will likely be driven by a combination of rising gold prices, combined with new discoveries. The mantra of “growth for growth’s sake” is still alive according to Rob, but the companies who implement “big data” within their operations will likely generate better returns for investors going forward.

Here is his full interview commentary with Bull Market Thinking’s Tekoa Da Silva:

Tekoa Da Silva: Rob, I remember during the summer months the team there at McEwen Mining began adding language into company statements which basically read, “We’re looking to put together smart deals with other companies and if you’ve got something in mind, give us a call.”

Cutifani vows to restore Anglo American’s iconic status – by Martin Creamer (MiningWeekly.com – December 12, 2013)

December 13, 2013

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

JOHANNESBURG (miningweekly.com) – Anglo American CEO Mark Cutifani, who this week charted the company’s progress and pathway forward, has vowed to restore its iconic status.

“Anglo American in my 37 years in this industry has been an icon. We intend to put it right back up there,” he said in a media conference call from London.

On Thursday, the the day of the company’s major investor update, Anglo American opened at a higher £13.08 a share on the London Stock Exchange, after investment banker Canadian Imperial Bank of Commerce set a “sector outperform” rating on the shares the day before and investment management company Sanford C Bernstein reiterated the “outperform” rating the next day, American Banking & Market News reported.

Analysts at Deutsche Bank last week reiterated a “buy” rating on the stock in a research note to investors, Analyst RN reported. Hosting a presentation to update investors on the London- and Johannesburg-listed company’s strategy, Cutifani said he knew of no other mining major that was in the process of doubling its earnings before interest and taxation (Ebit).

Tech could change face of mining jobs at Resolution Copper – by Jack Fitzpatrick (Tucson Sentinel – December 12, 2013)

December 12, 2013

http://www.tucsonsentinel.com/

Cronkite News Service – The small town of Superior has pinned its livelihood to copper, silver and gold mines for more than a century, but never has it had a prospect like this.

The proposed Resolution Copper mine near this struggling town could be the most productive copper mine in North America, promising $61.4 billion in economic activity over its nearly 60-year life and 1,400 mining jobs at the peak of production.

But those jobs are not likely to be the jobs that built Superior and other towns in Arizona’s historic Copper Corridor, where culture and economies are closely tied to the copper-mining industry. The generations of traditional mining experience in Superior may not be of much use as Resolution, like mines around the world, turns to robotics.

“We’ve reached a new world when it comes to mining,” said Thomas Power, an economics professor at the University of Montana who wrote a report for opponents of the mine.

Arizona is part of that new world, with the copper industry becoming markedly less labor-intensive in recent decades.

Rio Tinto on track to save $3bn in costs – by Alex MacDonald (The Australian – December 12, 2013)

December 12, 2013

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

MINING titan Rio Tinto says it has already exceeded its target of cutting $2 billion in operating costs by the end of the year and said it will prioritise paying down debt next year.

Major resources companies such as Rio Tinto are moving to bolster their balance sheets and profits in the face of subdued prices for many commodities, as a decade-long mining boom cools.

Rio Tinto already announced plans to more than halve its capital expenditure to less than $8 billion by 2015 from last year’s level while its peer BHP Billiton announced plans to cut its capital spend below $15 billion in the future from $21.7 billion in the last financial year.

In an effort to boost profitability, mining companies are also slashing operating costs by reducing headcount, increasing production capacity at its operations, and revising supply contract agreements among other things. Rio Tinto announced in February plans to cut operating costs by $2 billion through such measures by the end of the year.

COLUMN-Might China spoil Indonesia’s tin party? – by Andy Home (Reuters U.K. – December 11, 2013)

December 12, 2013

http://uk.finance.yahoo.com/

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

LONDON, Dec 11 (Reuters) – Tin has been the best relative performer of the London Metal Exchange (LME) base metals pack so far this year. And it’s a fair bet that analysts are going to pick it again as a likely out-performer next year when the annual polls are compiled.

Against a backdrop of improving metals demand, relative price performance is increasingly a reflection of each metal’s supply dynamics. Which is why tin’s bull credentials are unarguably the strongest of the lot.

THE BULL CASE

This is a market still characterised by structural supply shortfall, unlike, say copper, where heavy investment in new mine capacity is finally closing the gap with demand.

There has been no such investment splurge in tin. Nor is there likely to be any time soon. The bull case was recently spelt out by Peter Kettle, markets manager for tin industry association ITRI.

Africa’s local banks offer mining lifeline where others fear to tread – by Stephen Eisenhammer (Reuters India – December 12, 2013)

December 12, 2013

http://in.reuters.com/

LONDON, Dec 12 (Reuters) – African banks are playing an increasingly significant role in the continent’s new generation of mines, providing cash for projects considered too risky or expensive for rattled markets and cautious international lenders.

Central and West Africa is home to some of the world’s largest untapped deposits of gold, iron ore and other minerals, but the promising mine projects often require billions of dollars to be spent on bridges, roads, railways and ports.

That level of investment, combined with the perceived risks of corruption and political uncertainty in Africa, is proving too much for under-pressure equity and debt markets and twitchy overseas banks undergoing enforced belt-tightening since the financial crisis.

A solution, however, appears to be on the mining companies’ own doorsteps, with recent deals suggesting that local banks could provide a lifeline for the region’s junior miners.

In West Africa, banks such as Togo-based Ecobank and Ivory Coast’s Banque Atlantique are moving in on mining projects, emboldened by the expert local knowledge gained from their extensive branch networks.

The Rise of the Resource Curse – by William Pesek (Bloomberg News – December 12, 2013)

December 12, 2013

http://www.bloomberg.com/

In many ways Mongolia is an outlier — an exotic tourist destination filled with windswept deserts, nomads and yurts. It might also be a vision of the world’s future.

With a tiny $10 billion economy and less than 3 million people, Mongolia is fantastically resource-rich. And with borders touching China, Russia and Central Asia, the landlocked nation seems to have won a geographic lottery ticket. It doesn’t need to go far to find enthusiastic customers for its immense endowment of copper, gold and other minerals.

That also means that Mongolia sits on the precipice of the so-called resources curse, in which citizens in countries such as Nigeria and Indonesia have not prospered from the treasure sitting under their land and seas. As politicians and cronies make millions, there’s little incentive to create other industries to employ the masses.

Mongolia’s challenge will soon be the world’s. That’s the upshot of a new report from Richard Dobbs and his team at McKinsey, in which they predict a $17 trillion investment bonanza by 2030 to keep up with demand for oil, gas and other materials. That’s an amount greater than the annual output of the U.S. economy and more than four times Germany’s. It’s not just the kind of money that changes people or even nations. It’s the kind that changes the world — and probably not for the better.

COLUMN-Investors may be buying BHP, Rio cost-cutting story – by Clyde Russell (Reuters India – December 11, 2013)

December 11, 2013

http://in.reuters.com/

Dec 11 (Reuters) – It’s taken some time but there are signs that the cost-cutting efforts by major commodity producers such as BHP Billiton and Rio Tinto are starting to convince investors.

“My principle aim is to create value and free cash flow,” Andrew Mackenzie, the chief executive of BHP , said at an investor briefing on Dec. 10.

To this end he confirmed that capital expenditure at the world’s largest mining company has been too high in recent years, with the $23.3 billion spent last year poised to shrink by 25 percent in the 2013 fiscal year, and again in subsequent years. The presentation slides anticipate capital expenditure for major projects being a quarter of the 2013 level by 2016.

Rio Tinto , the world’s second-biggest miner, is also slashing spending, announcing plans to halve capital expenditure and slash debt.

Rio Tinto said on Dec. 3 that it will cut spending to $11 billion in 2014 from just under $14 billion this year, and sees capital spending at $8 billion in 2015, which would be less than half what it was in 2012.

Return of fourth player shakes EU stainless steel recovery hopes – by Silvia Antonioli, Maytaal Angel and Tom Käckenhoff (Reuters U.S. – December 11, 2013)

December 11, 2013

http://www.reuters.com/

LONDON/DUESSELDORF, Dec 11 (Reuters) – Just as long-awaited consolidation in Europe’s stainless steel sector seemed to offer hope of recovery in prices and profits, Finnish producer Outokumpu’s surprise sale of two plants back to ThyssenKrupp threatens to undo such gains.

Outokumpu last month announced the sale of large Italian stainless steel mill Acciai Speciali Terni and of specialty high-performance alloy unit VDM to ThyssenKrupp , their previous owner.

The deal, part of a package of measures dictated mostly by Outokumpu’s financial needs, partially reverses its acquisition of Thyssenkrupp’s stainless steel business Inoxum in 2012, a move that gave a fillip to all major European producers’ shares.

It raises the number of major European players in the loss-making industry back to four from three, which is likely to create an even tougher market environment for them as they face low prices, heavy overcapacity and competition from determined Asian exporters.

While a big player like Outokumpu can cut capacity or mothball the least efficient of several operations, ThyssenKrupp, with only two plants in the stainless sector, is likely to make use of them to keep its foothold in the market.

Indonesia’s president to weigh into mineral export confusion (Reuters U.S. – December 11, 2013)

December 11, 2013

http://www.reuters.com/

JAKARTA – Dec 11 (Reuters) – Indonesia’s president will make the final decision in a furious debate over next month’s scheduled ban on the export of unprocessed metal ore, an issue that pits nationalist-minded lawmakers against officials desperate not to lose revenue.

From next month, mining companies must process their ore before shipping it overseas, in a measure that aims to boost the value of exports from Indonesia, the world’s top exporter of nickel ore, thermal coal and refined tin. But smelting capacity is nowhere near ready, which means much of Indonesia’s output of metal ore will grind to a halt unless the processing requirements are relaxed.

And the law is kicking in just as a yawning current account deficit, exacerbated by waning global demand for commodities, is undermining investor confidence, leading to a drop this year of nearly a quarter in the rupiah’s value against the dollar.

“The president will decide it,” Trade Minister Gita Wirjawan told reporters on Wednesday, noting that Yudhoyono would make an announcement after consultations with the chief economic minister, the energy and mineral resources minister, the trade minister, the industry minister and parliament.

Companies Need to Step Up to Meet New Conflict-Minerals Reporting Rule – by Robert Bowman (Forbes Magazine – December 10, 2013)

December 11, 2013

http://www.forbes.com/

Time is running out for manufacturers to begin reporting on the presence of conflict minerals from the Democratic Republic of the Congo in their supply chains.

Beginning May 31, 2014, publicly traded companies will be required to declare to the U.S. Securities & Exchange Commission whether or not their products or components contain tin, tungsten, tantalum or gold — dubbed “3TG” materials — from mines in the DRC that are engaged in human rights abuses.

The requirement was included in the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama in July of 2010. It has taken nearly four years, however, for the SEC to gather public comments and clarify the rule. And the May 31 deadline is just the beginning of a two-year phase-in.

Nevertheless, many businesses have been dragging their feet on preparations for complying. According to a survey conducted by PricewaterhouseCoopers LLC in the spring of 2013, at least a third of executives were still unsure as to whether it applied to their operations.

Our view: Input critical to ensure safe mining – Duluth News Tribune Editorial (December 10, 2013)

December 11, 2013

http://www.duluthnewstribune.com/

The last time a massive report dropped to detail just how copper-nickel mining could be done on the Iron Range in accordance with strict state and federal environmental laws and standards, it got blasted. The largest environmental agency in the land, the U.S. Environmental Protection Agency, led the way, saying PolyMet’s plans for a type of mining with a less-than-stellar track record could lead to “adverse environmental impacts” on Northeastern Minnesota. Others weren’t as kind with their language or criticism.

So what was called a “Draft Environmental Impact Statement,” or DEIS, went back for more work, more thought, and better, safer plans — just as it should have. The lengthy environmental-review process was working and working well, helping to ensure, in the end, a project that’s safe, lawful and sensitive to the environment and an industry with hundreds of good-paying jobs and a multibillion-dollar boon for our region.

Nearly three years later, another massive report has dropped, an updated report, this one called a “Supplemental Draft Environmental Impact Statement, or SDEIS.

At summit, Eastern Kentucky leaders look to Minnesota for ideas to renew economy – by Bill Estep and John Cheves (Lexington Herald-Leader – December 9, 2013)

December 10, 2013

http://www.kentucky.com/

PIKEVILLE — Leaders grappling with a painful downturn in coal jobs in Eastern Kentucky got a primer Monday on how another state dealt with a similar collapse in its mining region.

The situation 30 years ago in the iron-ore belt in northeastern Minnesota was dire. Mining jobs dropped by more than 60 percent in 18 months and people started moving out, at times stopping by the bank on the way out of town to drop off keys to houses and cars they couldn’t pay for, said Joe Sertich, a former community-college president in the region known as the Iron Range.

The Eastern Kentucky coalfield has been similarly battered by layoffs. The coal industry has cut 6,000 jobs since mid-2011, with some counties losing more than half the jobs that were once the bulwark of their economy.

Sertich spoke Monday at a daylong summit in Pikeville called Shaping Our Appalachia Region, or SOAR. U.S. Rep Hal Rogers, R-Somerset, and Gov. Steve Beshear, a Democrat, set up the summit to generate ideas to diversify the economy of Eastern Kentucky.