Latin America Mining – Page 74

Codelco’s lithium assets lure big sector companies: CEO – by Nicole Mordant (Reuters U.S. – March 1, 2017)

March 2, 2017

http://www.reuters.com/

HOLLYWOOD, FLA. – International and domestic companies have expressed interest in partnering with Codelco, the world’s biggest copper producer, to develop its lithium assets, the Chilean state-owned company’s chief executive said on Tuesday.

In a wide-ranging interview, CEO Nelson Pizarro said Codelco was sticking to a shrunken capital expenditure program to revive and expand its copper assets unveiled last year amid weak copper prices, despite a rebound in prices by nearly a third since November.

Pizarro also said he expected “more difficult” labor negotiations at Codelco’s flagship El Teniente mine early next year as workers’ demands for higher wages and benefits clashed with the company’s need to invest in its aging mines.

Escondida strike turns violent as protesters block roads, battle police (Reuters U.S. March 1, 2017)

March 1, 2017

http://www.reuters.com/

The three-week-long strike at Chile’s Escondida, the world’s biggest copper mine, turned ugly on Wednesday when a group of protesters blocked a highway, provoking confrontations with the police.

Escondida’s approximately 2,500 unionized workers began a strike on Feb. 9 after contract talks with mine owner BHP Billiton failed, boosting global copper prices on expectations of tighter supply.

Early Wednesday morning, dozens of protesters, some with shirts, caps and flags bearing the union’s emblem, illegally barricaded the main road that connects the regional city of Antofagasta with the mine.

Escondida Deal Hopes Fade as Sides Give Contradicting Views – by Danielle Bochove, Laura Millan Lombrana and David Stringer (Bloomberg News – February 27, 2017)

February 27, 2017

https://www.bloomberg.com/

Copper traders were left confused over the state of play at the world’s top copper mine: the owner said wage talks had resumed, while the union said striking workers have had no contact with management for a week.

“The good news is that we are back around the table and things are starting to come together in some form of a negotiation,” BHP Billiton Ltd. Chief Executive Officer Andrew Mackenzie told Bloomberg TV on Monday. “Let’s wait and see, and others I’m sure will update you on the progress of those talks.”

While BHP-owned Escondida declined to comment further, the union said a meeting last Monday organized by Chilean labor authorities was the last time the two sides have sat down together. Escondida halted output on Feb. 9 after a month of talks failed to produce a wage accord.

Vale CEO Ousted as Brazil Seeks New Blood Before Reorganization – by Sabrina Valle and Peter Millard (Bloomberg News – February 24, 2017)

February 24, 2017

https://www.bloomberg.com/

Brazil is moving to cast off the last shackles of government influence at iron-ore giant Vale SA — but not before replacing the CEO with someone more politically palatable.

Murilo Ferreira’s six-year contract won’t be renewed when it expires in May, the Rio de Janeiro-based company said in a statement Friday. The announcement came days after Vale unveiled a plan to scrap its controlling shareholder pact amid criticism the miner was run like a quasi state company.

While the company didn’t say who decided Ferreira’s fate, analysts including Upside Investor’s Pedro Galdi say politics were involved. He took the CEO job in 2011 as part of a management shakeup driven by then-president Dilma Rousseff. The current government of Michel Temer has sought to distance itself from authorities and executives with perceived allegiances to Rousseff, who was impeached last year.

Copper’s Price Surge Won’t End Soon – by Shelley Goldberg (Bloomberg News – February 23, 2017)

February 24, 2017

https://www.bloomberg.com/

When copper traders hear of an impending mining strike they typically “buy the rumor and sell the fact.” They get in the market and get out, knowing that strikes are often expected in any given year and typically settled, at which point prices and volatility fall back to pre-strike levels.

This was the case leading up to Feb. 9, when miners at Escondida Chile, the world’s largest copper producer, voted to strike after contractual wage talks failed to end in agreement. BHP Billiton Ltd., which holds a 57 percent stake in the mine, decided to stop production and swiftly declared a case of force majeure. That pushed copper to a 20-month high; and there could be room on the upside.

Copper, used for wiring and construction, is considered the bellwether of global market growth. BHP’s Escondida is in the copper-rich Antofagasta region of northern Chile. It produces approximately 5 percent of the world’s copper (1.43 million metric tons in the 12 months that ended Dec. 31), and supports more than 10,000 full-time jobs.

Vale Dusts Off Crystal Ball, Sees $70-$75 ‘Floor’ for Iron Ore – by Paul Kiernan (4-traders.com/Wall Street Journal – February 23, 2017)

February 23, 2017

http://www.4-traders.com/

RIO DE JANEIRO — Brazilian mining company Vale SA is back to forecasting iron-ore prices after a four-month rally in the market injected executives with a level of optimism not seen in years.

Vale’s iron-ore director dusted off his so-called crystal ball Thursday to predict that prices for the commodity will have a “floor” of $70 to $75 and could average above $80 for the year.

“In summary, 2017 is going to be a very strong year,” the executive, Peter Poppinga, said in a conference call. “Steel demand is greater than in 2016. New supply that’s going to come is less than in 2016, and stocks are unbalanced. Therefore, prices will be significantly higher than in 2016.”

Vale to scrap controlling bloc, merge shares in major governance move – by Guillermo Parra-Bernal and Marta Nogueira (Globe and Mail/Reuters – February 20, 2017)

February 21, 2017

http://www.theglobeandmail.com/

Vale SA plans to become a company with no defined controlling shareholder as soon as possible, in a landmark step aimed at enhancing transparency and equal rights for all shareholders in the world’s largest iron ore producer.

Controlling shareholders grouped under holding company Valepar SA agreed to stay together for up to 3-1/2 more years. Under those terms, they will present a proposal soon by which Vale will incorporate Valepar and proceed to merge the company’s several classes of stock into a single, common one by November.

The existing 20-year accord governing Valepar that expires in May will be extended through November to guarantee the transition. Holders of Vale’s Class A preferred shares who join the share conversion voluntarily will receive 0.9342 common stock, as part of the process.

Chile store owners lament end of miners’ bonus culture – by Fabian Cambero (Reuters U.S. – February 17, 2017)

February 17, 2017

http://www.reuters.com/

ANTOFAGASTA, CHILE – In the dusty mining city of Antofagasta in northern Chile, the copper miners are not the only ones lamenting the end of the commodities boom – and the juicy bonuses that went with it.

Businesses in Antofagasta – from retailers of cars and luxury cruises to taxis and restaurants – formerly enjoyed windfalls every time miners renegotiated their contracts, which in Chile typically means a one-off bonus for each worker.

In 2013, workers at BHP Billiton’s Escondida, the world’s biggest copper mine, each received a payment worth $49,000 at the then-exchange rate, the highest ever paid in Chile.Competing for their custom, local shopkeepers put out signs saying “Take it now and pay when you get your bonus”.

Argentina lithium projects seek financing as production seen tripling – by Juliana Castilla (Reuters U.S. – February 8, 2017)

February 9, 2017

http://www.reuters.com/

BUENOS AIRES – Argentina’s lithium carbonate production will triple by 2019, and could grow by even more if companies find financing for various projects they are prepared to launch, industry executives and a government official told Reuters.

Demand for lithium – a crucial material in electric car batteries and mobile phones – is soaring worldwide, prompting miners to lock up new sources of supply. Argentina is already the world’s third largest producer, and forms part of the so-called lithium triangle with Bolivia and Chile that accounts for half the world’s reserves.

Center-right President Mauricio Macri has implemented a number of pro-market reforms in Latin America’s third-largest economy since taking office in December 2015, making Argentina a natural choice for miners looking to boost output.

Workers at BHP Billiton Copper Mine In Chile Go On Strike – by Ryan Dube (Wall Street Journal – February 9, 2017)

February 9, 2017

https://www.wsj.com/

Workers at BHP Billiton Ltd.’s majority-owned Minera Escondida copper mine in Chile went on strike Thursday, a union official said, putting pressure on the country’s sluggish economy and copper prices over fears of shortages.

“People didn’t show up to work,” said Carlos Allendes, a spokesman for Escondida’s largest union, Union No.1. “The strike has begun.” The strike at Escondida, the world’s biggest copper mine, follows unsuccessful talks between the union and management for a new collective agreement.

Escondida, which accounts for about 5% of the metal’s global output, said late Wednesday it would halt operations during the strike to ensure safety. It said the local labor regulator gave it permission to allow 80 employees to continue working to perform critical functions, including maintenance.

Disruptions at top two copper mines threaten global supply – by Wilda Asmarini (Reuters U.S. – February 8, 2017)

February 8, 2017

http://www.reuters.com/

JAKARTA – Disruptions at the world’s two biggest copper mines by strikes and other issues this week are threatening to reduce global supplies of the metal, pushing benchmark prices back towards their highest levels for the year so far.

BHP Billiton said it would halt output in Chile at its Escondida mine, the biggest copper producer, during a strike to begin on Thursday. Freeport-McMoRan Inc warned it will scale back output at its Grasberg mine in Indonesia, the second-biggest, amid a smelter strike and issues over renewal of its mining permit.

Three-month copper on the London Metal Exchange gained more than 2 percent during trading on Wednesday to $5,925 a ton on the supply threat, with analysts noting they had already been expecting tighter supplies this year. [MET/L]

Workers at Chile’s Escondida copper mine to strike Thursday: union – by Fabian Cambero (Reuters U.S. – February 7, 2017)

February 8, 2017

http://www.reuters.com/

ANTOFAGASTA, CHILE – Workers are set to strike on Thursday at BHP Billiton Plc’s Escondida copper mine after contract talks mediated by the Chilean government failed to reach a deal, the main union at the world’s largest copper mine told Reuters.

The union has warned that a strike at the Chilean copper mine could be lengthy, potentially affecting global supplies of a metal used in everything from construction to telecommunications.

BHP Billiton said it planned to halt production during the strike since it could not guarantee the safety of the 80 workers the government had authorized to remain at the mine to perform “critical duties”, such as equipment upkeep and adherence to environmental protocols.

Sherritt’s nickel-price boost capped by debt, ‘confusing’ U.S. signals on Cuba – by Sunny Freeman (Financial Post – February 7, 2017)

February 7, 2017

http://business.financialpost.com/

David Pathe knows what it’s like to be banned from the United States. The chief executive of Toronto-based Sherritt International Corp. received a letter from the U.S. Department of Homeland Security three years ago saying he was no longer welcome in the U.S. because of the miner’s business dealings in Cuba.

“There’s frankly a certain random element to it,” said Pathe, who has been with the company for 10 years and CEO for five.“I tell people that and they’re flabbergasted — a lot of Americans I tell this to can’t believe it.”

Sherritt is a joint owner, along with the Cuban government, of the Moa nickel and cobalt mining, processing and refining operations, and also produces about two-thirds of Cuban oil. The company has been operating under the status quo — including crippling U.S. economic embargo.

RPT-COLUMN-Cornish lithium dreams may die in South America’s salt lakes – by Andy Home (Reuters U.S. – February 6, 2017)

February 6, 2017

http://www.reuters.com/

LONDON, Feb 3 There’s lithium in them there Cornish hills! News that a start-up, Cornish Lithium, is going to explore for the “metal of the future” in Britain’s historic tin-mining region has been greeted with predictable national euphoria.

“Cornwall’s mining industry set for 50bn pound revolution,” proclaimed a headline in The Sun newspaper. Which may be just a little bit premature.

The company, led by Jeremy Wrathall, a graduate of Cornwall’s famous Camborne School of Mines and now a banker with Investec, is currently trying to raise 5 million pounds to start an exploration programme. Any production of lithium is at least five years away.

Canada, Mexico strengthen mining ties – by Henry Lazenby (MiningWeekly.com – February 2, 2017)

February 2, 2017

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Canada’s Natural Resources Minister Jim Carr on Wednesday inked a memorandum of understanding (MoU) with Mexico’s Economy Minister Ildefonso Guajardo Villarreal to solidify the countries’ close bilateral relationship.

The MoU for the mining sector will cover geoscience, clean innovation and corporate social responsibility and will promote sharing best practices in water management and the use of renewable energy.

Carr travelled to Mexico to reaffirm Canada and Mexico’s strong North American partnership and identify areas for further cooperation, including sustainable mineral resource development, energy security and clean energy.