International Media Resource Articles – Page 762

SA GDP could have gained if mining had grown like peers – Cutifani – by Forecaster Ecosa (Mineweb.com – November 1, 2013)

November 1, 2013

http://www.mineweb.com/

Mining should have raised South Africa’s GDP annual growth rate by 1% if it had grown at the same rate as its peers, says Mark Cutifani.

JOHANNESBURG, SOUTH AFRICA – Mining should have raised SA GDP annual growth rate by 1% if we had grown at the same rate as our mining peers, Anglo American CEO Mark Cutifani said on Thursday at the Fourth Enterprise Development Conference in Midrand.

“If mining had grown over the last seven years like our peers, instead of contracting, we would be heading the country towards the 5,4% growth target of the National Development Plan (NDP). A growing mining industry will be vital in creating an environment for sustainable employment growth and rising living standards, inclusive economic development and improving the country’s competitiveness. Mining has been, and remains, the bedrock of the South African economy, but we want to make it once again the engine of the South African economy,” he said.

Real value added in the mining sector peaked in 2005 on an annual basis, but then dropped by 9.8% in the subsequent seven years. In the second quarter 2013 it contracted by 5.6% compared with the first quarter on seasonally adjusted annualised basis.

South African mine strikes doing little to lift platinum – by Jan Harvey (Reuters – November 1, 2013)

November 1, 2013

http://ca.news.yahoo.com/

LONDON (Reuters) – Given that South Africa is the source of 75 percent of the world’s platinum supply, the fact that prices have responded so little to strike action there this year has surprised investors.

Prices barely reacted to news on Thursday that the hardline AMCU union had declared a wage dispute with Lonmin, raising the possibility of an industry-wide strike that could hit half of global output.

Five years ago, the threat of production cuts in South Africa was the primary force driving platinum prices to record highs at $2,290 an ounce. But times have changed. Even after last year’s deadly wildcat strikes, when more than 50 people were killed in the platinum sector, prices rose only briefly. The following quarter, they fell nearly 15 percent.

Earlier this year, a two-week strike at major producers Anglo American Platinum, which the company said cost it 44,000 ounces of lost output, was accompanied by a 2 percent drop in platinum prices.

AFRICA INVESTMENT-OPEC-style platinum cartel a pipe-dream – by Ed Stoddard (Reuters U.S. – May 16, 2013)

November 1, 2013

http://www.reuters.com/

(PLEASE NOTE DATE OF THIS POSTING!)

JOHANNESBURG – May 16 (Reuters) – South Africa is the Saudi Arabia of platinum with steroids thrown in.

But Pretoria could never manipulate the platinum price the way the Middle Eastern kingdom can influence oil’s and talk of a platinum cartel, perhaps along the lines of the Organization of the Petroleum Exporting Countries (OPEC), is a pipe-dream.

The world’s top platinum producers, South Africa and Russia, agreed to attempt to cope with excess supplies of the metal through a memorandum of understanding signed in March during the BRICS emerging market powers meeting in Durban.

South Africa’s mines minister Susan Shabangu spoke of “balancing” rather than “controlling the market” while still expressing concern about oversupply and prices. Confusingly, Russian officials said influencing prices was not the aim.

If not, then what would be the ultimate aim of cooperation between the platinum powerhouses, especially if one of the parties’ stated goals is to “balance” the market?

Klobuchar, Franken co-sponsor ‘critical minerals’ bill in Senate – by John Myers (Duluth News Tribune – October 31, 2013)

October 31, 2013

http://www.duluthnewstribune.com/

WASHINGTON — U.S. Sens. Amy Klobuchar and Al Franken joined 15 of their colleagues Tuesday introducing legislation to encourage mining of “critical minerals” across the U.S.

The Minnesota Democrats joined senators on both sides of the aisle, all from mining states, on the bill called the “Critical Minerals policy Act of 2013.”

The Senate bill requires the Interior Secretary to maintain a list of 20 minerals and elements designated as critical to the nation. It would amend the National Materials and Minerals Policy, Research and Development Act of 1980 to establish a method of tracking and forecasting the nation’s “critical mineral demand, supply and other market dynamics” to allow “informed actions to be taken to avoid supply shortages, mitigate price volatility and prepare for demand growth and other market shifts.”

The 40-page bill stops short of identifying what specific critical minerals might be. Klobuchar said her support comes from doing what is best for the state and country regarding the mineral supply.

Barrick to Suspend Work on Pascua-Lama to Conserve Cash – by Liezel Hill (Bloomberg News – October 31, 2013)

October 31, 2013

http://www.bloomberg.com/

Barrick Gold Corp. (ABX) will temporarily suspend construction at its $8.5 billion Pascua-Lama mine on the Argentina-Chile border as the world’s largest producer of the metal tries to conserve cash after prices slumped.

Work on the project, located more than 12,000 feet (3,657 meters) up in the Andes mountains, was already partially halted amid a water dispute. All activity except that needed for environmental protection and regulatory compliance will cease, Barrick said today in a statement. It said a restart depends on future costs, gold prices and the regulatory and legal outlook.

Barrick has come under pressure after gold prices fell 21 percent this year and its debt increased. The Toronto-based company, led by Chief Executive Officer Jamie Sokalsky, has explored cash-raising options ranging from a strategic equity investment to a sale of a stake in its copper business, people with knowledge of the matter said yesterday.

The company also has considered the sale of an equity stake or an interest in Pascua-Lama to state-backed Chinese investors, the people said. Barrick has struggled with the mine, its sole mine-construction project, amid ballooning costs, delays and environmental challenges.

Zimbabwe eyed as heir to platinum throne as SA loses grip – SFA Oxford – by Martin Creamer (MiningWeekly.com – October 31, 2013)

October 31, 2013

miningweekly.com

JOHANNESBURG (miningweekly.com) – With South Africa’s once mighty grip on the world platinum market slipping, exasperated end-users are eyeing Zimbabwe as the heir to the platinum throne, top global platinum consultant Stephen Forrest said on Thursday.

Forrest, in South Africa for the Joburg 2013 Investing in Resources and Mining in Africa conference attended by South African mining’s who’s who, told Mining Weekly Online in an exclusive interview in Johannesburg that invested parties across the platinum value chain were viewing South Africa’s diminishing influence with concern.

Zimbabwe, Russia and North America had lower platinum group metal (PGM) ounce cash costs and received substantially higher by-product credits than South Africa, SFA Oxford’s director and principal consultant revealed.

Since 2009, there had been a fourfold increase in platinum recycling, from 500 000 oz in 2000 to more than two-million ounces a year. “Put simply, recycling is now offering the industry Lonmin-sized output incrementally every five years,” Forrest’s research showed.

Having a [mining] blast – by Kelly Grinsteinner (Hibbing Daily Tribune – October 30, 2013)

October 31, 2013

http://www.hibbingmn.com/

EVELETH — Do not call mine blasting an art. Mike Indihar will tell you that it’s not, and give you several reasons why.
“The public thinks that what we do today is the same way we did it 30 years ago, but that’s not true,” said Indihar, senior mine engineer at Cliffs Natural Resources’ United Taconite in Eveleth. “It is so different today.”

And he’d know.

Indihar has been in the mining industry since 1979, and worked in various capacities within both operations and engineering. He’s been at United Taconite since 2006, and from that time on has focused solely on drilling and blasting.
The 56 year old calls himself a geek, and admits the job is still fun.

“I’m still challenged every day, and that’s what makes it exciting,” said Indihar. For those who like status quo, mining isn’t the ideal industry. “What’s really fun in engineering in mining is that it’s always changing,” he said. “You do a blast, and then it’s gone. Now you do a different one. You build a road, mine it down and then move on to build a new road. Things change all the time.”

E&Y sees AIM junior mining index flattening – perhaps bottoming? – by Lawrence Williams (Mineweb.com – October 31, 2013)

October 31, 2013

http://www.mineweb.com/

A flattening of Ernst & Young’s Mining Eye Index, which tracks LSE AIM listed junior miners and explorers, after several quarters of decline, could be a sign sentiment is improving.

LONDON (MINEWEB) – After a number of successive quarters of decline in Ernst & Young’s Mining Eye index (which tracks the London Stock Market’s AIM-listed junior miners), the latest quarter is flat to positive leading E&Y’s Global Mining Transactions Leader, Lee Downham to see light at the end of the tunnel for the sector.

Downham notes, on the issuing of the latest edition of Mining Eye, “Another subdued performance by the Mining Eye reflects ongoing funding challenges for AIM’s junior miners. However, as we look to the final quarter of an extremely challenging year, there are reasons to take the optimistic view that sentiment is turning. A relatively flat performance by the Mining Eye represents a welcome improvement from the last four quarters of consecutive declines.”

Indeed, deeper analysis of the figures shows that the quarter actually showed a 6% upturn in the index, largely helped by a significant capital raising success for African Minerals for its big Tonkolili iron ore project in Sierra Leone, and Archipelago Resources, which saw a £338 million cash offer for the company from its major Indonesian shareholder.

Duluth [nickel mining] Complex – by Charles Ramsay (Mesabi Daily News – October 31, 2013)

October 31, 2013

http://www.hibbingmn.com/

DULUTH — By any method that the Duluth Complex is rated, several experts say the nonferrous potential embedded in the geologic region makes it the largest mineral deposits ever.

The complex stretches from near Duluth northeast and north to near the Canadian border. Copper, nickel and precious metals group elements (platinum-palladium) are a major part of minerals in the complex. Two companies, PolyMet and Twin Metals, are preparing for production or getting near that goal after environmental review and permits are obtained. More companies are busy exploring other locations for deposits.

“I have no doubt this will prove to be the biggest undeveloped deposit,” said Jim Miller, a geology professor at the University of Minnesota Duluth.

Another researcher, George Hudak, minerals division director at the Natural Resources Research Institute in Duluth, agreed. “This is the largest untapped copper-nickel deposit in the world,” he said.

‘Ghost Mine’: Portlander Patrick Doyle talks about Season 2 of Syfy series – by Kristi Turnquist (The Oregonian – September 4, 2013) [RepublicOfMining.com – Halloween Theme]

April 5, 2015October 31, 2013

http://www.oregonlive.com/

Click here for Ghost Mine episodes: http://www.space.ca/GhostMine.aspx

When he’s confronted by skeptics who doubt the possibility of ghosts, Patrick Doyle has a ready response. “I’m very much a skeptic as well,” says Doyle, who is one of two paranormal investigators featured on the Syfy series, “Ghost Mine.”

“I think you have to be honest with yourself and be a skeptic to be in the paranormal field,” says the 42-year-old. “You’re always questioning.” But for those who scoff at the concept of paranormal activity, Doyle says this: “I’d ask them first, have you had something that happened to you, heard something, seen something, that you can’t explain?”

Doyle has, and it’s those experiences that led him to his fascination with eerie phenomena. He continues to pursue his passion in Season 2 of “Ghost Mine,” which premieres tonight on Syfy.

US resources investor Rick Rule says most mining minnows worthless – by Matt Chambers (The Australian – October 30, 2013)

October 30, 2013

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

LONG-TIME US resources investor Rick Rule is in Australia to take advantage of what he sees as a once-in-a-decade opportunity to pick up stocks in struggling mining companies.

But the Sprott Global Resource Investments chairman has a stark message for the junior sector and its investors: most of the more than 800 junior miners listed on the Australian Securities Exchange are worthless.

“In the good times, from 2003 to 2011, the excesses here and in Canada and on (London’s secondary exchange) AIM were legendary,” said Mr Rule, in Melbourne to deliver the opening speech at today’s Mines and Money conference.

“We need to exorcise all of those sins from the system, which is a different way of saying perhaps 60 or 70 per cent of the junior listings here are truly valueless.

“One would hope that those (equity) issuers ultimately go to their intrinsic value, which is zero, and open up more space for the best 30 per cent of your issuers, the best of which are truly world class.”

Rio Tinto’s former boss says miners were ‘too slow’ to react – by Clara Ferreira-Marques (Reuters U.S. – October 29, 2013)

October 30, 2013

http://www.reuters.com/

LONDON – (Reuters) – Mining companies were too slow to respond to changing investor demands from mid-2011 as sentiment deteriorated, failing to spot the wave of change which eventually swept out a generation of executives, the former boss of miner Rio Tinto said on Tuesday.

“We didn’t react fast enough,” said Tom Albanese, chief executive of Rio Tinto (RIO.L) (RIO.AX) until he was ousted in January – one of a string of executives toppled by writedowns at the world’s largest mining firms, as boom-year deals soured.

Recalling Rio’s half-year earnings, released in August 2011, Albanese told an industry gathering that the company had felt at the time that it was announcing positive numbers. Indeed, it reported record cash flow and record profits.

Investors, though, were watching screens “filled with red”, he said, and the mining group’s shares fell. Instead of demanding more growth, investors had begun to feel nervous.

“It felt like panic was setting in… We said this is not us, this is not our problem. We should have said this is us, this is our problem,” the U.S.-born mining veteran said, in one of his first public appearances since his departure from Rio.

Friedland wows City of Gold with his knockout platinum story – by Martin Creamer (MiningWeekly.com – October 29, 2013)

October 30, 2013

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

JOHANNESBURG (miningweekly.com) – Mining entrepreneur extraordinaire Robert Friedland came to the City of Gold on Tuesday and wowed his audience with a stirring story of the richness of South African platinum endowment.

The geological marketing wizard, whose name is associated with the Voisey’s Bay nickel deposit in Canada and Oyu Tolgoi copper deposit in the Mongolia’s Gobi desert, delivered an hour-long key note presentation in which he rolled out plans to build a promising platinum mine in the rich Platreef close to the Mogalakwena mine, South Africa’s richest platinum operation owned by Anglo American Platinum.

The Toronto Stock Exchange-listed Ivanhoe Mines, which submitted an application for a mining licence to the Department of Mineral Resources five months ago, has well advanced plans for a secondary listing on the Johannesburg Stock Exchange.

Friedland gave his presentation on day-one of the Joburg 2013 Investing in Resources and Mining in Africa conference attended by the who’s who of the South African mining industry. “Africa is potentially one of the most rewarding places to be operating on the planet,” said Friedland, whose Ivanhoe is also developing the Kamoa copper mine in the Democratic Republic of Congo (DRC).

BHP Billiton defends its track record on assisting black mines – by Brendan Ryan (Business Day – October 28, 2013)

October 30, 2013

http://www.bdlive.co.za/ [South Africa]

IN AN unusually public and hard-hitting statement, mining resources giant BHP Billiton has disputed claims by Transnet CEO Brian Molefe that the miner is not doing enough to promote black economic empowerment (BEE) in South Africa’s coal-mining export industry.

BHP Billiton described Mr Molefe’s statements as being “far from the truth” on Friday and criticised Transnet Freight Rail’s underperformance in matching its capacity to rail coal to Richards Bay Coal Terminal’s (RBCT’s) expanded capacity.

Previously, individual coal exporters have avoided criticising Transnet “on the record” apparently because of fears that the utility, which runs the all-important coal line from Emalahleni to Richards Bay, would penalise them in terms of availability of trains required to haul coal to RBCT for export.

On the rare occasions when the industry has criticised Transnet, it has come from RBCT, whose members include the country’s most important coal-mining and exporting companies.

Responding to questions last week after his presentation of Transnet’s interim results for the six months to end-September, Mr Molefe accused RBCT members of denying access to the export market to small black-owned coal companies.

Toward Electronics Free of Conflict Minerals – by Wasima Khan (Huffington Post – October 28, 2013)

October 29, 2013

http://www.huffingtonpost.ca/

Wasima Khan is a PhD Candidate in Corporate Law, Erasmus University – Rotterdam.

With the acquisition of conflict minerals for their manufacturing, the electronics industry is involved in an ongoing humanitarian crisis in eastern Democratic Republic of Congo. Recent law reforms for US listed companies have so far failed to incentivize investors to change corporations’ “bad” practices. Can social enterprises like Fairphone can help achieve a world free of conflict mineral products?

One of the world’s deadliest wars continues to wrack the eastern Democratic Republic of Congo (DR Congo) and it is partly financed and sustained by the electronics industry. Electronics-makers seek a variety of natural resources for the production of their products in DR Congo. Yet armed militia have taken over the natural resource mines in this region and commit severe human rights abuses.

As the corporations are forced to reckon with these armed groups to acquire natural resources, the latter have effectively become a part of the electronics industry’s supply chain. As a result, aggressive militia, violating human rights, are profiting from the exploitation of raw material resources.

So how do big legal sticks force corporations to remove themselves from this ugly situation? In order to address DR Congo’s humanitarian crisis, law reforms have recently taken place in the United States specifically targeting electronics corporations.