Republic of Mining

Gold Mining: Investment ‘Must Resume’ as Reserves’ Life Shrinks 1/3rd – by Adrian Ash (Bullion Vault.com – September 20, 2017)

September 21, 2017

https://www.bullionvault.com/

GOLD MINING investment in finding new reserves “must resume” if global output isn’t to start falling, according to new analysis from a top consultancy.

Studying 11 of the world’s largest stockmarket-listed gold miners, specialist analysts Metals Focus say that current investment spending on exploration and new projects is “well below” the level needed to sustain current production.

“Without investment, the inventory does become depleted,” says the consultancy’s latest Precious Metals Weekly. While “not yet critical”, the productive life-time of underground reserves amongst today’s leading gold mining companies has sunk by one third from the peak of 27 years hit in 2013 after heavy investment to just 18 years today.

Glencore industrial dispute putting pressure on NSW coal supplies – by Mark Ludlow and Angela Macdonald-Smith (Australian Financial Review – September 20, 2017)

September 21, 2017

http://www.afr.com/

Protracted industrial action at 10 of Glencore’s NSW coal mines and a congested rail network are contributing to supply issues in Australia’s largest state, with fears it could affect the grid’s ability to keep the lights on this summer.

Amid growing concerns about coal-fired power generators being unable to secure enough coal supplies, the Construction, Forestry, Mining and Energy Union has vowed to maintain the industrial unrest at Glencore mines where negotiations have stalled over 10 separate enterprise agreements.

CFMEU national president Tony Maher said the industrial action organised by the unions at about eight mines across the Hunter Valley had had a “material” impact on Glencore’s operations and was affecting their ability to supply coal to customers.

The graphite fix: Inside China’s newest commodity addiction – by Manolo Serapio Jr and Tom Daly (Reuters U.S. – September 21, 2017)

September 21, 2017

https://www.reuters.com/

MANILA/BEIJING (Reuters) – China’s aggressive environmental protection campaign has tightened supplies of graphite electrodes used in steelmaking, boosting the fortunes of big producers like Fangda Carbon as mills search far and wide for a material now in short supply.

Beijing’s campaign for clearer skies has closed thousands of mills and mines producing low-quality steel and coal, and makers of electrodes, particularly those near big cities, have not been spared.

Graphite electrodes are used to melt scrap in electric arc furnaces to produce new steel. Their main ingredient is high-value needle coke – named because of its shape – which is made from either petroleum or coal tar. As China tightened the screws on polluting industrial plants, about 30 percent of its graphite electrode production capacity has been shut and some provinces have restricted output, said Dawn Brooks, a consultant at CRU.

Billionaire Agarwal to Boost Anglo Stake by Up to $2 Billion – by Ruth David and Thomas Biesheuvel (Bloomberg News – September 21, 2017)

September 21, 2017

https://www.bloomberg.com/

Anil Agarwal, an Indian mining billionaire, is buying 1.5 billion pounds ($2 billion) worth of additional Anglo American Plc shares, increasing his stake in the blue-chip British miner that’s benefited from a recovery in commodity prices.

Agarwal said Wednesday the purchase, which is the equivalent of about 9 percent, was a family investment and he doesn’t intend to make a takeover offer for the company, according to a statement. It comes on top of the 12.43 percent stake he’s built since an announcement in March that his Volcan unit was investing in the company.

The Indian tycoon, who is set to become the largest shareholder ahead of South Africa’s Public Investment Corp. after the purchase, offered to merge part of his mining empire with Anglo American last year, only to be rebuffed. The London-based mining group has been seen as a candidate for a potential breakup through splitting some of its South African assets from the global mining business.

Barrier put in mine that sent toxic water into 3 states – by Dan Elliott (Montreal Gazette – September 20, 2017)

September 21, 2017

http://www.montrealgazette.com/

THE ASSOCIATED PRESS – DENVER — The U.S. Environmental Protection Agency is installing a barrier and valve inside an inactive Colorado mine to prevent another surge of wastewater like a 2015 blowout that contaminated rivers in three states.

The 12-inch (30-centimetre) valve will regulate wastewater pouring from the Gold King Mine in the San Juan Mountains of southwestern Colorado, where the EPA inadvertently triggered a wastewater spill while excavating at the mine entrance in August 2015.

That spill released 3 million gallons (11 million litres) of wastewater containing aluminum, iron and other heavy metals and instantly became a major embarrassment for the EPA.

We Must Think Deeply And Profoundly About How We Posit Business As A National Asset – by Bonang Mohale (Huffington Post South Africa – September 20, 2017)

September 21, 2017

http://www.huffingtonpost.co.za/

We need to demonstrate to 55 million South Africans that 23 years of democracy have benefited everybody.

Banking and financial services, in general, are quite a critical and pivotal part of our economy. In fact, since our mining days, this is probably the fastest-growing sector in terms of a percentage of the GDP, but also in terms of a percentage of the number of people that it employs.

So, mining used to be probably our biggest sector at about 18 percent of GDP. South Africa was the number-one goods producer in the world. Manufacturing was 24 percent and now it is sitting at 40 percent. Manufacturing in gold has dropped, but services, in general, have increased, driven mostly by financial services.

This is important because if you want to be internationally competitive, then you want to make sure that your people have absolute access to the 21st-century technology. And banking has done that for us, South Africa’s banking system is among the top five in the world.

Iron Ore Sinks as ‘Peak Steel’ Call, Supply Angst Rattle Market – by Jasmine Ng (Bloomberg News – September 20, 2017)

September 21, 2017

https://www.bloomberg.com/

Iron ore has been dragged back into the $60s after getting hit by a barrage of bad news, with persistent concern about rising global supply, fresh questions about the outlook for demand in China, and a warning from Australia’s central bank that the top buyer may be nearing peak steel.

The benchmark spot price for ore delivered to Qingdao slumped 10 percent in the past four days, ending at $68.85 a dry metric ton on Tuesday, the lowest since July, according to Metal Bulletin Ltd. The sell-off in the commodity, which hit almost $80 in August, took a breather on Wednesday as prices rebounded but remained below the $70 threshold.

“As we get into the fourth quarter, we see demand in China pulling back, demand for steel pulling back,” Paul Butterworth, research manager for steel raw materials at CRU International Ltd., said in an interview in Singapore. “It’s quite likely the steel mills will say ‘well, we’ve got sufficient material on hand at the moment, so we can withdraw from the market for now’.”

‘Toke Mountain’ may have opened door to tailings-based mining – by Jonathon Naylor (Flin Flon Reminder – September 18, 2017)

September 21, 2017

http://www.thereminder.ca/

What if mine waste isn’t waste at all, but another potential source of riches for resource-based communities? That was the enticing question raised by BacTech Mining Corporation upon its arrival in northern Manitoba.

The little-known Toronto-based company was built on the premise that it could process mine waste, known as tailings, for the benefit of both its bottom line and public safety. BacTech’s expertise revolves around bioleaching, a process that employs bacteria to cleanse tailings of their toxic components.

At the same time, bioleaching exposes metals trapped within the tailings, permitting conventional recovery at a potentially significant profit. At least as far back as 2010, BacTech had its sights set on northern Manitoba – and with good reason.

Rally in zinc price raises spectre of substitution – by Eric Onstad (Reuters U.S. – September 19, 2017)

September 21, 2017

https://www.reuters.com/

LONDON, Sept 19 (Reuters) – A sharp rally in zinc prices is posing the threat that industrial users will find ways to substitute the metal with cheaper alternatives or use less, curbing overall consumption.

High prices may also dampen a nascent move by Chinese automakers to use more zinc for galvanising, while the Western car sector could employ thinner coats of zinc alloys to help meet tough emission rules by cutting vehicle weight.

“We expect zinc prices to carry on going up for at least another 12 months, so I think there’s clearly a growing risk of demand destruction in some shape or form,” said analyst Andrew Thomas at consultancy Wood Mackenzie. Benchmark zinc on the London Metal Exchange has doubled since January last year, hitting a peak of $3,231.75 a tonne in late August, the highest in a decade.

Indian billionaire Agarwal to be Anglo American’s top shareholder – by Cecilia Jamasmie (Mining.com – September 20, 2017)

September 20, 2017

http://www.mining.com/

Indian billionaire Anil Agarwal is planning to increase its investment in Anglo American (LON:AAL) by as much as 1.5 billion pounds ($2 billion), which would make him the biggest shareholder in the diversified miner.

The acquisition of further shares will be done through Volcan Investments Ltd., the family trust of Agarwal, who is the founder and chairman of Vedanta (LON:VED), India’s largest mining company.

The move could give Agarwal a commanding voice at Anglo American, the world’s fifth-largest miner by market value, which the businessman described earlier this year as “a great company with excellent assets and a strong board and management team who are executing a focused strategy.”

Iron ore price sheds 3.5pc to dip below $US70 – by Samantha Woodhill (The Australian – September 20, 2017)

September 20, 2017

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

Iron ore spot prices have fallen below $US$70 a tonne for the first time since July, shedding 3.5 per cent overnight. The spot price was today at $US68.30 a tonne, with futures also indicating weak prices.

ANZ senior commodities analyst Daniel Hynes said the fall followed comments by the Reserve Bank of Australia in its September meeting, the minutes of which were released yesterday.

“The weaker sentiment in the market was fuelled by comments from the RBA, which said prices are expected to fall ahead of the ongoing expansion of the global iron ore supply chain,” he said.

Goldplat miner seeks to tame Africa risk – by Barbara Lewis (Reuters U.S. – September 19, 2017)

September 20, 2017

https://www.reuters.com/

LONDON (Reuters) – Upheaval in Tanzania, where the government has made huge tax demands and seized minerals, has triggered changes in neighboring Kenya, which should reassure the industry, said the CEO of Goldplat (GLDP.L), which operates a gold mine there.

Chief Executive Gerard Kisbey-Green said he was nevertheless seeking to diversify his portfolio to cover more African nations and to expand into platinum group metals as he strives to offset African risk.

This year, the mining industry has reeled from South Africa’s proposed new mining charter and changes in Tanzania, where the government is locked in a tax dispute with Barrick Gold (ABX.TO) subsidiary Acacia (ACAA.L).

Implats May Cut 2,500 Jobs to End Losses at Biggest Mine – by Liezel Hill (Bloomberg News – September 19, 2017)

September 20, 2017

https://www.bloombergquint.com/

(Bloomberg) — Impala Platinum Holdings Ltd. may cut at least 2,500 jobs at its Rustenburg mining complex in South Africa as the world’s second-largest producer of the metal seeks to stem losses and adjust to lower prices.

Impala has notified unions and the government to begin a mandated consultation process ahead of proposed cuts and restructuring at its largest operation, the Johannesburg-based company said in a statement Monday. Additional action may be needed in the future, the miner said.

The Rustenburg operations, which employ about 31,000 people, are experiencing “severe financial pressure” after costs rose and as rand-denominated platinum prices remain low, Impala said. Labor productivity and platinum output have also declined in the past few years, it said.

Teck ups Red Dog guidance; outlines significant exploration target for Aktigiruq – by Henry Lazenby (MiningWeekly.com – September 19, 2017)

September 20, 2017

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Canada’s largest diversified miner Teck Resources has added about 50 000 t of zinc output to the full-year guidance for its Red Dog mine, in Alaska.

Vancouver-headquartered Teck advised that improving recoveries in the last few months has prompted the company to lift guidance to a range of 525 000 t to 550 000 t of zinc, up from the most recent guidance range of 475 000 t to 500 000 t of zinc.

The company increased production because of changes in mine sequencing and improved metallurgical recoveries, enabling higher-grade mill feed with a greater percentage of ore from the Qanaiyaq pit in the second half of the year. Meanwhile, Teck expects yearly zinc output at Red Dog over the next five years to range between 475 000 t and 550 000 t of zinc.

Nickel falls toward 1-month lows on fund selling – by Pratima Desai (Reuters U.S. – September 19, 2017)

September 20, 2017

https://www.reuters.com/

LONDON (Reuters) – Nickel prices fell on Tuesday toward the one-month lows hit last week as funds took profits, but concern about supplies from the Philippines and healthy demand, particularly from Chinese stainless steel mills, are expected to lend support.

Benchmark nickel on the London Metal Exchange ended down 0.8 percent at $11,140 a tonne from an earlier $10,875. Last week it touched $10,845, its lowest since Aug. 18.

“Nickel rose about 40 percent between July and early September, overshooting to above $12,000. Speculators are selling,” said Societe Generale analyst Robin Bhar. “We estimate marginal production costs at around $10,400/$10,500, that will be an anchor for the downside. Demand from stainless and non-stainless applications is healthy.”