International Media Resource Articles – Page 765

South Africa’s role in shaping the platinum market wanes – by Allan Seccombe (Business Day – November 20, 2013)

November 20, 2013

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

SOUTH Africa, the world’s largest source of primary platinum, does not exert the influence it once did over the platinum market as alternative supplies become more available, and the country needs to address cost reductions for its production as a matter of urgency.

Speaking at a recent mining conference, Stephen Forrest, a director and chairman of SFA Oxford, warned of growing metal supply from recycling and countries with excess inventory.

Johnson Matthey said South African platinum supplies would rise less than 1% to 4.12-million ounces this year because of industrial action and safety stoppages. Zimbabwe, while a long way behind South Africa, was showing rapid growth, with output shooting up 15% this year to 400,000oz, a record high, it said.

South Africa provides three-quarters of the world’s platinum, but its role in shaping the market is diminishing, Mr Forrest said. “You’d think such concentrated supply would be enough to secure a significant influence on price, but look closer and it’s clear that South Africa’s mighty market grasp is slipping.”

Coal Seen as New Tobacco Sparking Investor Backlash: Commodities – by Jesse Riseborough & Thomas Biesheuvel (Bloomberg News – November 20, 2013)

November 20, 2013

http://www.bloomberg.com/

About $8 trillion of known coal reserves lie beneath the earth’s surface. The companies planning to mine and burn them are being targeted by a growing group of investors concerned with the greenhouse gases that will be made.

Storebrand ASA (STB), which manages $74 billion of assets from Norway, sold out of 24 coal and oil-sands companies since July including Peabody Energy Corp. (BTU), the largest U.S. coal producer, citing a desire to cut fossil-fuel industry holdings. This month Norway’s opposition Labour Party proposed banning the country’s $800 billion sovereign wealth fund from coal investments.

“Maybe we’ve hit some kind of nerve in the debate,” Christine Torklep Meisingset, Storebrand’s head of sustainable investments in Oslo, said by telephone. “Hopefully, other investors will be acting along the same lines. There could be an interesting parallel to tobacco.”

The movement is an offshoot of a campaign by more than 70 investors to pressure all fossil-fuel industries on climate change. It harks to the 1990s anti-tobacco push and is gaining help from unlikely partners.

China’s $100,000 aid ‘measly,’ judged by its Philippine mining take – by Jarius Bondoc (The Philippine Star – November 20, 2013)

November 20, 2013

http://www.philstar.com/

Talk about fair-weather friend. “As hundreds of thousands of Filipinos struggled to find food, water, shelter and the bodies of loved ones in the wake of Typhoon Haiyan, China quickly dipped into its world-leading $3.7 trillion of currency reserves and came up with … all of $100,000.” That Bloomberg news lead captured the general recoil at how the world’s second-largest economy treats an Asian neighbor. Other headlines stated “cheapskate,” “paltry,” “miserly” and, in one mainland-Chinese daily, “ungenerous.”

Beijing could not have missed the effects of history’s strongest ever typhoon to make landfall. Global networks had tracked Haiyan’s ruin of the Philippines, where three-fourths of families have Chinese blood. Undeterred by Philippine mountain ranges, the storm crossed over the sea to hit China. One drowned and seven went missing in Hainan, and many areas were flooded in Guangxi provinces. Beijing came upon a chance to show amity and soft power. Yet it chose to be petty, due to sea disputes with Manila. With trade overshooting $36 billion in 2012, China often calls the Philippines “partner.”

In the first hours of Filipinos’ distress, the world sprang to the rescue. The US rushed in an aircraft carrier group laden with emergency crews and $20-million relief. Britain, Japan, and Korea sent trucks, food, and cash of, in turn, $16 million, $10 million, and $5 million. Donations poured in from Australia, $28 million; European Union, $17 million; Vatican, $4 million; Indonesia, $2 million; and Taiwan, which China labels its province, $200,000.

COLUMN-China’s single-handed gold support act may not last – by Clyde Russell (Reuters U.S. – November 19, 2013)

November 19, 2013

http://www.reuters.com/

Clyde Russell is a Reuters market analyst. The views expressed are his own.

LAUNCESTON, Australia, Nov 19 (Reuters) – The most frightening concept for a gold miner or trader currently would be to contemplate a world without China.

Global gold demand fell to the lowest in four years in the third quarter, according to the World Gold Council, and the 21 percent drop from the same quarter in 2012 would have been far worse if it wasn’t for China. China is set to overtake India as the top gold consumer this year, and is already ahead on a rolling four-quarter basis.

Demand in China rose to 209.6 tonnes in the third quarter, up from 177 tonnes in the same quarter last year, largely driven by a 29 percent jump in jewellery demand.

In contrast, India’s consumption slumped 32 percent to 148.2 tonnes in the third quarter from the same period in 2012, as the government’s efforts to restrict imports became more effective.

Indonesia Weighs Ore Ban as Citigroup Increases Nickel Forecast – by Yoga Rusmana & Eko Listiyorini (Bloomberg News – November 19, 2013)

November 19, 2013

http://www.bloomberg.com/

Indonesia will press on with a ban on raw-mineral exports next year, while signaling the curbs may be amended in practice, according to two officials who addressed a conference in the largest mined nickel producer. Prices rose.

“If we look at the existing law, yes by 2014 we are sure to implement this, but we also consider the effect and discuss it with parliament, how to deal with this,” said Bambang Adi, deputy to the coordinating minister for economic affairs.

Dede Suhendra, director of mining at the Energy and Mineral Resources Ministry, told the gathering: “We have to appreciate companies that are serious about building smelters.”

Indonesia is seeking to boost the value of commodity sales, and while a blanket ban is mandated by the 2009 Mining Law, the government may exempt companies that are operating or planning to build processing plants. Nickel is this year’s worst base-metal performer on the London Metal Exchange amid record stockpiles. Citigroup Inc. raised its nickel forecast yesterday, saying the proposed curbs are being mispriced by the market.

Samsung seeks rare earth alternative, in list of future tech investments – by Ryan Huang (ZDnet.com – November 18, 2013)

November 19, 2013

http://www.zdnet.com/

Summary: The conglomerate unveils the first 27 projects under its US$1.4 billion 10-year research drive, which includes finding a substitute for rare earth material, neuromorphic processors and hybrid holographic 3D displays.

South Korean conglomerate Samsung will invest in the search for alternatives to rare earth materials, as part of its major research drive for new technologies.

Last week, it unveiled the first 27 projects under its Future Technology Cultivation Project, which will be backed with funding of 1.5 trillion (US$1.41 billion) of funding over the next 10 years, according to Joongang Daily. This is part of a wider push by South Korea announced in May to develop new growth engines for a creative economy.

There will be 7 areas of research for new materials This includes a project to develop optoelectronics materials that can substitute the use of rare earth materials, which is essential for making TVs, smartphones and other electronics. The supply of the material is currently dominated by China, and is subject to its export quotas.

Copper-Rich Congo Province Sees More Cash After Rebel Defeat – by Michael J. Kavanagh (Bloomberg News – November 18, 2013)

November 18, 2013

http://www.bloomberg.com/

The Democratic Republic of Congo’s provincial governments expect a windfall of reconstruction and development funds after an insurgency by M23 rebels ended, said Moise Katumbi, governor of the copper-rich Katanga province.

Congo’s government diverted cash meant for the provinces to pay for its fight against the M23 insurgents in the east of the country, Katumbi, 48, said in an interview in Lubumbashi, Katanga’s capital. The rebels ended their 20-month rebellion on Nov. 5 after Congo’s army seized key positions, including the rebel stronghold of Bunagana.

“Our budget for reconstruction has been blocked by the central government because of the war,” Katumbi said on Nov. 11. “Without this war, there will be more money.” Congo’s provinces have complained that the central government in Kinshasa keeps too much of their revenue. The state is required by law to send 40 percent of a province’s revenue back to the provincial government in a process called retrocession.

Last year, when M23 began its rebellion, the government provided only 43 percent of $1.06 billion it budgeted for retrocession to Congo’s 11 provinces, according to documents on the Budget Ministry’s website.

The Commodities Supercycle and Your Grocery Bill – by Moises Naimnov (The Atlantic – November 18, 2013)

November 18, 2013

http://www.theatlantic.com/

From the cost of coffee to global power shifts, how commodity prices shape our world.

As you shop for Thanksgiving dinner this year, you may long for the good old days when food was cheaper. This isn’t just your nostalgia speaking. Over the past decade, food prices have increased at a very fast clip. According to the U.N.’s Food and Agriculture Organization, the global food price index has increased by 125 percent since 2000.

To understand why, consider the seemingly intractable prices of global commodities markets—your standard agricultural goods like coffee, sugar, and wheat, or resources like crude oil and coal that are used to produce or transport those goods. Not only do these complex commodities markets determine the cost of what we eat, but their high prices can fuel the kind of social unrest that in some countries has toppled governments.

These markets are as volatile and hard to forecast as the effects of their swings are contradictory. Commodities are both the origin of major fortunes as well as the reason behind financial crashes. Their gyrations also drive major shifts in geopolitical power—they can boost the influence of some countries while weakening others.

Two miners dead in Colorado, 20 others injured after Ouray blast – by Joey Bunch and Tom McGhee (Denver Post – November 17, 2013)

November 18, 2013

http://www.denverpost.com/

The two miners who were killed Sunday in Ouray died from carbon monoxide poisoning, authorities said. An explosion was ruled out as the immediate cause of the incident that sent 20 other miners to Western Slope hospitals.

The source of the poisonous gas, however, is under investigation. At a press conference Sunday night authorities said they were are looking at whether a small explosion in the mining process on Saturday might have been the source of the carbon monoxide.

The miners who were killed were identified as 34-year-old Nick Cappano of Montrose and Rick Williams, 59, of Durango. The other miners were expected to be OK, said Rory Williams, the operations manager for Denver-based Star Mine LLC.

“I knew both of these individuals personally,” said Williams, who said he is no relation to Rick Williams. “They were hard-working men. They were great men. They will be remembered indeed.” Williams said all of the men are required to wear personal respirators and the two who died had them. “As far as we can tell it doesn’t appear to be an equipment malfunction,” he said.

COLUMN-China reforms to extend commodity boom, boost competition – by Clyde Russell (Reuters India – November 18, 2013)

November 18, 2013

http://in.reuters.com/

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

Nov 18 (Reuters) – China’s planned economic and social reforms should have the effect of extending the decade-long boom in demand for commodities, while at the same time making that demand more price sensitive.

While the 60-point reform plan still needs to be fleshed out, initial indications are that the appetite for resources by the world’s biggest commodity buyer is far from finished. From a longer-term perspective the most important parts of the plan include lifting the restrictions on rural migration to smaller cities and easing them for medium-sized cities.

This alone should ensure that China’s demand for iron ore, copper and other base metals remains robust as housing and infrastructure is created across the country to cater for rising urbanisation.

Much of this activity will also fly beneath the radar, as it will take place away from the mega-cities such as Beijing and Shanghai, but this doesn’t mean the commodity demand will be any less real.

COLUMN-Is there any future for coal? – by John Kemp (Reuters India – November 18, 2013)

November 18, 2013

http://in.reuters.com/

(John Kemp is a Reuters market analyst. The views expressed are his own)

Nov 18 (Reuters) – Climate campaigners reserve a special scorn for coal-fired power generation. Coal has replaced nuclear as the form of energy that environmentalists most love to hate.

“The world needs to turn its back on the fossil fuels of the past, like coal, which have helped to create today’s climate and instead look to the clean, renewable energy sources of the future,” the UK charity Christian Aid said on Monday.

“If we are to avoid dangerous climate change we must leave most of the remaining coal reserves in the ground,” the charity warned. Christian Aid branded the decision to host a meeting of coal producers in Poland at the same time as the UN climate summit in Warsaw “perverse”. Governments have been less dogmatic. But at least in the advanced economies, policymakers see little positive role for coal-fired power generation in future if the world is to meet a target of limiting global warming to no more than 2 degrees by 2050.

Miners hope Czech election will end gold extraction moratorium – by Jan Marchal (Business Day – November 18, 2013)

November 18, 2013

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

CZECH gold deposits are whetting the appetites of foreign prospectors hoping to see the new government lift a mining moratorium in the aftermath of snap elections.

But rather than a dream come true, the prospect of a gold rush is a nightmare for environmentalists and residents of the hilly region south of the capital, Prague, a popular resort area that holds the biggest deposit.

“No one wants an open-cast mine here, in this wonderful natural setting near the Vltava River,” says Jiri Stastka, mayor of the village of Chotilsko. A few hundred metres from the village, the Vesely Vrch wooded hill and its surroundings conceal about 140 tonnes of the metal worth an estimated 100-billion koruna ($5bn ).

Known as the Mokrsko deposit, this is just more than a quarter of the Czech Republic’s estimated 380-400 tonnes of gold, which is about 1% of the globe’s deposits. But locals fear irreversible environmental damage, particularly the pollution of groundwater since toxic cyanide is used in the extraction of gold.

Anaconda Co. dominated state economy: With top industrial wages, workers could buy homes, pay for children’s college – by Peter Johnson (Great Falls Tribune – November 16, 2013)

November 18, 2013

http://www.greatfallstribune.com/ [Montana]

It would be hard to overestimate the economic importance that the Anaconda Co. played in Montana for decades, says retired University of Montana history professor David Emmons.

“It was the fourth-largest corporation in America, and it employed probably 25,000 to 30,000 Montanans at its peak” in copper mining, smelting and refining, railroad operations, logging and wood products and even operating four of the state’s five largest newspapers, he said.

“At one time probably one-third of the paychecks that went out in the state were written on Anaconda Co. accounts,” he said. “The company’s significance in Montana was enormous. I don’t know of any other state where a single company was that dominate economically.”

The Anaconda Co. and its predecessor, Amalgamated Copper Mining Co., produced a huge amount of copper in Montana — 3 billion pounds between 1880 and 1980, Emmons said.

[Australia’s] Port Hedland growth faces difficult berth – by Paul Garvey (The Australian – November 15, 2013)

November 15, 2013

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

IT MUST surely represent one of the most valuable pieces of undeveloped port real estate anywhere in Australia – an otherwise non-descript stretch of mangroves that stand to generate more than $US12 billion a year in revenues.

South West Creek has been earmarked as the site of two new berths at Port Hedland, Australia’s key iron ore export hub. Spare capacity at the port is becoming more and more scarce, and the South West Creek site represents one of the last remaining locations capable of squeezing in new berths.

Each berth is expected to allow for some 50 million tonnes of iron ore exports. With the benchmark price of iron ore currently sitting comfortably above $US120 a tonne, that’s a huge potential source of income for both the miners allocated capacity at the site, and the state government hungry to grow its pie of iron ore royalties even further.

But the will of both the state government and the parties allocated the space far from guarantees the development of the strategically important site. Despite iron ore prices continuing to dangle a very lucrative carrot for the parties, finding a path to the port’s development remains a major challenge.

Republicans Asserting Reliance on Gold as World Loses Faith – by David J. Lynch & Peter Robison (Bloomberg News – November 14, 2013)

November 15, 2013

http://www.bloomberg.com/

As the price of gold hit new highs following the 2008 financial crisis, Republicans saw the yellow metal’s steady ascent as a sign of trouble ahead.

To Representative Paul Ryan of Wisconsin, record gold prices in 2010 heralded “a lower standard of living for many Americans.” Representative Ted Poe of Texas foresaw “a blast of inflation that will crush the middle class” adding: “Where gold prices go, other prices follow.” Fellow Texas Representative Ron Paul, a perennial critic of the Federal Reserve, warned that “confidence is being lost in the entire fiat monetary system,” a reference to money created by central banks.

The Republicans’ confidence in gold as an economic and financial barometer proved ill-founded. Five years after the crisis, the dollar’s value measured against the currencies of major U.S. trading partners is little changed. Prices have risen at an annual 1.4 percent rate, less than half the 50-year average and lower than the Fed’s 2 percent target.

By July, gold had slid 36 percent from its September 2011 high of more than $1,900 an ounce, the steepest percentage decline since prices plunged by 58 percent over 21 months ending in June 1982.