International Media Resource Articles – Page 768

Mining benefits 8 in 10 South Africans ‘directly, literally’ – Cutifani – by Martin Creamer (November 5, 2013)

November 6, 2013

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

JOHANNESBURG (miningweekly.com) – Eight out of every ten South Africans benefited “directly and literally” from mining, outgoing Chamber of Mines of South Africa president Mark Cutifani said on Tuesday.

Cutifani, who is also Anglo American CEO, told the chamber’s 123rd annual general meeting (AGM) in Johannesburg that the mining industry was South Africa’s best chance of eradicating poverty. “In the end, we are an industry for the people,” he said.

The National Development Plan (NDP), which was endorsed by most constituencies, clearly reasserted the conviction that the mining sector was at the epicentre of the economic growth strategy and it was critical that all South Africans understood that they were actually the owners of the South African mining industry.

For example, more than 60% of Anglo American’s operating South Africa assets in coal, platinum, iron-ore, diamonds and manganese were held by the historically disadvantaged – “a massive transformation of ownership”.

Mine Tales: Copper isn’t the only mineral common in Arizona – by William Ascarza (Arizona Daily Star – November 4, 2013)

November 5, 2013

http://azstarnet.com/

In 2012, Arizona produced more than $2 billion in nonfuel mineral commodities. While Arizona leads the nation in copper production, additional minerals ranked according to value include molybdenum concentrates, sand and gravel (construction), cement (portland) and silver.

Industrial minerals found in Arizona include sand, gravel, limestone, clay, marble, gypsum, asbestos, perlite, talc, zeolites and landscape rock.

Industrial minerals mined in Arizona such as sand and gravel produced from flood plains, washes and alluvial fans are used in the construction of highways, airports, buildings, dams and bridges.

Gravel and aggregate (a combination of rocks and sand used in the manufacture of concrete) are the most common industrial minerals in Arizona. One hundred tons of sand and gravel are needed in the construction of a standard 1,600-square-foot house.

Iron ore rally boosts miners – by Peter Ker and Brian Robins (Sydney Morning Herald – November 6, 2013)

November 5, 2013

http://www.smh.com.au/

The four-month rally in iron ore stocks shows no sign of abating, with some miners hitting their highest share prices in more than a year this week.

Shares in BHP Billiton and Rio Tinto were on Monday fetching their highest prices since February and March respectively, while Fortescue Metals Group has not been this valuable since May 2012.

The strong rally in the sector has come after a four-month period that was supposed to be its weakest of 2013, yet saw the benchmark iron ore price refuse to slip below $US130 per tonne.

A further rise in the benchmark price to $US135 per tonne over the past 48 hours fuelled further buying on Tuesday, and pushed Fortescue shares to $5.53 for the first time in 18 months.

Fortescue shares have rallied so strongly since they were below $3 in late June that Deutsche analyst Paul Young downgraded the stock to a sell last week on the basis that it had become over-valued, particularly when compared with BHP and Rio.

China to further open its mining industry – by Du Juan (Xinhuanet – November 4, 2013)

November 5, 2013

http://www.xinhuanet.com/english/

BEIJING, Nov. 4 (Xinhuanet) — China will further open its mining sector to overseas investors and encourage them to participate in resource exploration and utilization and the development of shale gas, said a senior official on Sunday.

“The Chinese government has attached great importance to the mining industry’s contribution to the country’s economic growth,” said Jiang Daming, minister for land and resources, at the 2013 China Mining Expo in Tianjin.

He said the establishment of the China (Shanghai) Pilot Free Trade Zone signifies that China has stepped into a new stage of openness.

The government will simplify the approval process and management of mining resources, with the aim of improving the convenience and efficiency of investment in the sector, according to Jiang.

At present, social capital accounts for up to 70 percent of mining exploration investments in China, as investors have grown increasingly diversified.

Betting on end to glut, miners hunt for new zinc deposits – by James Regan (Reuters U.S. – November 4, 2013)

November 5, 2013

http://www.reuters.com/

SYDNEY – (Reuters) – A global hunt is on to find new deposits of zinc as China buys more of the metal to rust-proof new cars and coat steel used to build bridges and skyscrapers.

Multinationals such as Swiss-based Glencore Xstrata (GLEN.L), Belgium’s Nyrstar (NYR.BR) and China’s MMG (1208.HK) are funding new mines from Africa to the Yukon on expectations that an oversupply of zinc will turn into a deficit.

Along with mining veterans such as former Newmont (NEM.N) head Pierre Lassonde, who holds a stake in Canada’s Foran Mining (FOM.V), they are also investing just as ageing mines accounting for a tenth of world consumption start to shut.

Even old workings are being rehabilitated, including silver-zinc mines built by Hunt brothers Nelson and William in Canada in the 1970s. The Texan duo famously hoarded silver to corner the market and control global prices, only to go bust when silver prices crashed in 1980.

UPDATE 1-China’s gold consumption to cool after surge this year -producer – by Judy Hua and David Stanway (Reuters India – November 4, 2013)

November 4, 2013

http://in.reuters.com/

TIANJIN, China, Nov 4 (Reuters) – China’s gold consumption is expected to climb to more than 1,000 tonnes this year, though the trend is not sustainable and could drop below this level from 2014, the country’s biggest gold producer said on Monday.

Meanwhile, gold output this year from China, the world’s top producer, is set to climb about 7 percent to another record high of 430 tonnes, Du Haiqing, vice general manager at China Gold Group Corp, said at an industry conference held in the northern city of Tianjin.

Gold demand from China has surged by more than half in the first six months of the year as sliding prices of the precious metal lured buyers, reinforcing expectations that China will overtake India as the top consumer this year.

Gold consumption in 2012 was 832.18 tonnes, according to data from the China Gold Association. Demand growth has dramatically outpaced production, causing imports from Hong Kong to surge and hover at more than 100 tonnes for five straight months up to September.

But this year’s consumption was “abnormal”, as a sharp drop in prices in April has sparked a buying frenzy, said Du.

Poland, Wedded to Coal, Spurns Europe on Clean Energy Targets – by Danny Hakim and Mateusz (New York Times – October 31, 2013)

November 4, 2013

http://www.nytimes.com/

BELCHATOW, Poland — They call it Poland’s biggest hole in the ground. The coal mine here is more than eight-and-a-half miles long, nearly two miles wide and as deep in parts as three football fields. Enough coal comes out of it to fuel Europe’s largest coal-fired utility plant, whose chimneys loom in the distance.

“The entire world population could fit in this hole,” Tomasz Tarnowski, an administrator here, said in a bit of proud hyperbole as he led a group of reporters on a walk near a towering mound of brown coal about halfway into the mine.

Poland is Europe’s coal colossus. More than 88 percent of its electricity comes from coal. Belchatow is one of its huge sources and the largest carbon emitter in Europe. (There’s no “belch” in Belchatow — it is pronounced bel-HOT-oof.)

This month, a United Nations conference on climate change will be held in Poland, a location many environmental activists consider the least appropriate choice they could imagine. And while the European Union has mapped out ambitious clean-energy goals intended to reduce the greenhouse gases linked to global warming, Poland has been its fossil-fuels holdout.

Rio Tinto in Mozambique withdraws expatriate families over safety – by Manuel Mucari (Reuters U.K. – November 1, 2013)

November 4, 2013

http://uk.reuters.com/

MAPUTO – (Reuters) – Mining company Rio Tinto is withdrawing expatriate employees’ families from Mozambique for their safety in a sign that an upsurge in kidnappings and violence is worrying investors.

Other major companies developing big coal and gas reserves in the former Portuguese colony, Brazil’s Vale, U.S. oil company Anadarko and Italian oil and gas group Eni, said they were closely following political developments there, after clashes between the government army and opposition Renamo guerrillas.

London-listed Rio Tinto, which mines and exports coal from northwest Tete province, said in a statement it was arranging to send home the families of foreign employees.

It announced the move a day after tens of thousands of Mozambicans marched in the capital Maputo and two other cities to protest against the threat of armed conflict and a recent spate of kidnappings by criminals.

Vale’s Earnings Surge on Output – by Francezka Nangoy (Jakarta Globe – November 1, 2013)

November 1, 2013

http://www.thejakartaglobe.com/

Vale Indonesia, the country’s biggest nickel miner, posted a 64 percent increase in profit in the first nine months of this year on the back of rising production and improving operations.

In a statement released on Thursday, the company said that its net income jumped to $47.28 million in the January-September period from $28.94 million in the corresponding period last year. Revenue rose to $721.07 million from $693.69 million.

Vale said in the statement that its success in improving its cost competitiveness helped its financial performance “even in these challenging market conditions.”

The company, controlled by Brazilian iron ore giant Vale, is currently shifting to fueling its dryers with coal rather than the more expensive high-sulphur fuel oil. The conversion began in the middle of the third quarter. Vale consumed 608,058 barrels of HSFO at an average cost of $99.65 per barrel throughout the quarter.

That compares with 679,306 barrels of consumption in the second quarter at $100.76 average cost per barrel.

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.