Twitter

Glencore’s Female Director Marks Mining Industry Progress – by Jesse Riseborough (Bloomberg News – July 17, 2014)

http://www.bloomberg.com/

Mining companies, long laggards in appointing women to their boards, are starting to catch up under pressure from corporate governance groups and activist shareholders.

The latest is Glencore Plc, the Swiss commodity trader, which on June 26 appointed mining executive Patrice Merrin. Prior to her arrival, Glencore was the last company left on the U.K.’s FTSE 100 Index with an all-male board. At the start of last year, five of the seven corporations on the U.K.’s FTSE-100 Index without women board members were mining companies. Now all five have at least one woman director.

“If a board has open spots and open-minded men, finding outstanding women is the easy part,” said Beth Stewart, a former Goldman Sachs Group Inc. investment banker and founder of executive search company Trewstar Corporate Board Services, which focuses on placing women directors.

Merrin’s appointment to the board of Glencore and her public endorsement of a goal of appointing women to a third of all board seats is a milestone for the $80 billion company run by billionaire Ivan Glasenberg and may open opportunities for more women directors.

Glasenberg’s company had been a lightening rod for criticism from activists, shareholders and U.K. business secretary Vince Cable for its all-male board.

Read more

REFILE-Indonesia ends 6-month stoppage of metal concentrate exports – by Wilda Asmarini and Fergus Jensen (Reuters India – July 18, 2014)

http://in.reuters.com/

(Corrects company name in 5th paragraph to “Lumbung Mineral Sentosa” from “Lumbung Mineral Stocks”)

(Reuters) – Indonesia has resumed exports of metal ore concentrates, a mining ministy official said, ending a six-month stoppage resulting from a new policy to improve returns on resources shipped out of southeast Asia’s largest economy.

Indonesia in January banned unprocessed ore exports and levied an escalating tax on metal concentrate exports as part of the policy to force miners to build smelters and process minerals domestically.

Disputes and confusion over the rules halted about $500 million worth of monthly mineral ore and concentrate exports. Prior to the ban, Indonesia was the world’s top exporter of nickel or and a major supplier of iron ore and bauxite.

However, last week shipments of iron ore, lead and zinc concentrate left the country, after two firms agreed to pay a 20 percent export tax, coal and minerals director general Sukhyar told reporters late on Friday.

“There are two firms that have started to export; Sebuku Iron Lateritic Ores (SILO), and Lumbung Mineral Sentosa,” Sukhyar said, adding that SILO had sent two shipments or around 100,000 tonnes of iron ore concentrate and Lumbung had shipped around 8,000 tonnes of lead and zinc concentrate already.

Read more

From Mining Magnates To Beef Barons, The New Focus For Two Australian Billionaires – by Tim Treadgold (Forbes Magazine – July 17, 2014)

http://www.forbes.com/

One billionaire adding beef cattle to their mining interests is a curiosity. Two is a stampede.

In Australia, that’s just what has happened with the country’s richest person, Gina Rinehart, spending an estimate $40 million to buy a half share in two cattle-breeding properties covering 1.1 million acres of the Kimberley region in the country’s north.

Rinehart is following in the footsteps of Andrew Forrest, one of her rivals in the iron ore business, who invested an estimated $30 million in May to buy Harvey Beef which has extensive farming and processing interests in the south of Western Australia.

Both billionaires (Rinehart is worth an estimated $18.2 billion and Forrest $4.4 billion) have most of their fortunes tied up in the production of iron ore, the price of which has been falling thanks to its heavy dependence on demand for steel in China where a construction boom is slowing.

Fading Iron Ore Demand, Rising Food Demand

Neither Rinehart nor Forrest has described their move into farming ventures as a way of trimming their future exposure to iron ore, but that’s a reasonable interpretation thanks to the flattening outlook for iron ore demand.

Read more

We trust farmers, new survey says: Mining not as understood – by Dylan Robertson (Saskatoon StarPhoenix – July 17, 2014)

http://www.thestarphoenix.com/index.html

Canadians love farmers, have split opinions on forestry and don’t understand mining, according to a survey of perceptions of resource industries.

“Western Canadian residents recognize the importance of resources to our economy; they broadly support continued growth of resource industries,” said Len Coad, who directs the Canada West Foundation’s Centre for Natural Resources Policy. “But they have some expectations where they feel a need for improvement.”

For a report published Friday, the foundation had Ipsos Reid survey 600 residents each from British Columbia, Alberta, Saskatchewan, Manitoba and Ontario for their perceptions of four natural-resource sectors. “There’s been a growing awareness across the West in the past several years of the challenges of developing resources, of moving them to market and of meeting the expectations of the public,” said Coad, whose group will now dig down on policy suggestions.

The survey looked at perception, trust and willingness to advocate for the four sectors: energy, forestry, mining and agriculture. Responses were weighted by provincial population, while Ontario results were kept separate to compare attitudes with a region far less dependant on natural resources.

“Ontario was just for comparative purposes, and the range of answers was smaller than we had expected,” Coad said. “Ontario responses were mostly in-line with other provinces.”

Read more

NEWS RELEASE: Strong Investor Interest and Industrial Usage Lead to Sturdy Silver Demand in 2014

(Washington, D.C. – July 17, 2014) – Investor and industrial consumption of silver has advanced at a healthy pace in 2014, reflected in the silver price increasing 5 percent as of July 15 from the beginning of the year.

Building on an impressive 2013, investors continued to boost silver holdings in the first half of 2014. Silver exchange traded funds (ETF) backed by physical silver added 7.0 million ounces (Moz) of silver bullion through June; in contrast, gold ETF holdings dipped by 1.4 Moz ounces over the same time period. Globally, silver bullion coin sales are up 4.5 percent through the 1st quarter of 2014, according to precious metals consultancy Thomson Reuters GFMS. U.S.

Mint sales of American Eagle Silver Bullion coins maintained near record level sales, totaling 24.1 Moz for the first six months of 2014, just shy of the 25.0 Moz sold in the first half of 2013, threatening to overtake the record sales of 42.7 million American Eagle coins acquired by investors last year. Other silver investment products, such as silver bar consumption, appear to be easing so far this year after a strong showing in 2013.

Industrial demand for silver in critical sectors, such as ethylene oxide production, has increased significantly in the first half of the year and is expected to increase 23 percent this year to 8.0 Moz, according to Thomson Reuters GFMS. Ethylene oxide is a vital building block chemical, critical to production of detergents, solvents, plastics and a broad range of organic chemicals, and is an example of the unmatched importance of silver in industry.

Demand for silver in the photovoltaic industry has been driven by a global increase in renewable energy over the past decade, leading to a proliferation of solar module production.

Read more

Family discovers abandoned mine shaft in Sudbury backyard – by Darren MacDonald (Northern Ontario Business – July 17, 2014)  

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. 

A Sudbury family got the shock of their lives last month when they discovered what they thought was a sinkhole in their backyard was actually an abandoned mine shaft.

The family has asked their names not be used to ensure no one looks for their home, located in the Sudbury suburb of Hanmer, violating their privacy and potentially putting themselves in danger.

However, the problem has since been addressed under a Ministry of Northern Development and Mines policy dealing with abandoned mines. The province paid the roughly $70,000 it cost to fix the problem. Much of that solution involved pouring concrete — 5 1/2 loads, to be exact – into the hole until the area was safe.

Lesley Cooper, manager of mine rehabilitation and compliance section with the Ministry of Northern Development and Mines, said the homeowner contacted the ministry on June 11, and staff were sent out the same day. City crews first secured the area with a fence, which was then reinforced by the ministry.

While the property isn’t in its abandoned mines database, Cooper said it’s likely some sort of exploration work had been done there.

“We don’t have any record of it being a mine, but that’s what we believe it to have been,” she said. “It certainly didn’t appear to be a natural occurrence.”

Read more

Australia’s carbon reversal sets new tone for global climate talks – by Shawn McCarthy (Globe and Mail – July 18, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA — Australian Prime Minister Tony Abbott’s move to repeal his country’s carbon tax provides an international boost for the Harper government, which has regularly attacked opponents who propose putting a price on emissions in Canada.

Australia’s reversal on carbon pricing comes at a critical time, just two months prior to a United Nations climate summit to be hosted by secretary-General Ban Ki-Moon, who is looking for countries to commit to post-2020 emission reductions and new policies to achieve those targets.

And it comes as Prime Minister Stephen Harper faces continued pressure to impose some form of carbon pricing in Canada, particularly in the booming oil sands where rising emissions threaten to swamp the government’s commitment to rein in carbon pollution.

Mr. Abbott visited Canada last month, and Mr. Harper commended him for ending the “job-killing carbon tax” as the Australian had pledged during last year’s general election in which he defeated the Labor Party-led coalition government. With their resource-based economies and relatively small populations occupying large land masses, Australia and Canada are among the world’s top per-capita emitters of greenhouse gases (GHGs).

Read more

Chinese arrest of former PetroChina Canadian chief casts shadow over Athabasca Oil projects – by Claudia Cattaneo (National Post – July 17, 2014)

The National Post is Canada’s second largest national paper.

CALGARY – In a move that adds uncertainty to PetroChina’s plans for Canada, Zhiming Li, the PetroChina executive who built and headed the Chinese company’s operations in this country for the past four years, has been arrested by the Chinese government.

According to a July 16 report in Caixin, a Beijing-based financial media news organization, Mr. Li “was taken in for questioning … directly at the airport” as he returned to China last month from Canada.

As reported in the Financial Post July 10, Mr. Li was unexpectedly replaced last month as CEO of Brion Energy Corp., as PetroChina’s subsidiary in Canada is known, by Shudong Chen.

Mr. Chen is still in China as he has not yet received a permit to work in Canada. The Chinese newspaper, which didn’t cite sources, said Yiwu Song, the deputy manager of overseas exploration and development at China National Petroleum Corp., was also taken away last week. The newspaper said the arrests follow a probe into Qiliang Bo, the former chief of PetroChina’s international business.

Mr. Li’s questioning links PetroChina’s Canadian operation to a corruption probe in China that has targeted the country’s top oil companies, has resulted in many arrests and is expected to slow down decisions.

Read more

As Rock Phosphate Runs Out, What is More Important – Food Crops or Fuel Crops? – by Professor Chris Rhodes (Oil Price.com – June 21, 2012)

http://oilprice.com/

(Please note that this article was published in June 2012)

World rock phosphate production is set to peak by 2030. Since the material provides fertilizer for agriculture, the consequences are likely to be severe, and worsened by the increased production of biofuels, including those from algae.

Introduction

The depletion of world rock phosphate reserves will restrict the amount of food that can be grown across the world, a situation that can only be compounded by the production of biofuels, including the potential large-scale generation of biodiesel from algae. The world population has risen to its present number of 7 billion in consequence of cheap fertilizers, pesticides and energy sources, particularly oil.

Almost all modern farming has been engineered to depend on phosphate fertilizers, and those made from natural gas, e.g. ammonium nitrate, and on oil to run farm machinery and to distribute the final produce. A peak in worldwide production of rock phosphate is expected by 2030, which lends fears over how much food the world will be able to grow in the future, against a rising number of mouths to feed. Consensus of opinion is that we are close to the peak in world oil production too.

Phosphorus is an essential element in all living things, along with nitrogen and potassium. These are known collectively as, P, N, K, to describe micronutrients that drive growth in all plants and animal species, including humans.

Read more

UPDATE 3-Indonesia threatens to take over Newmont mine if output stays shut – by Wilda Asmarini and Fergus Jensen (Reuters India – July 18, 2014)

http://in.reuters.com/

JAKARTA, July 17 (Reuters) – Newmont Mining Corp risks its Indonesian mining licence being taken over by a state-owned firm if the U.S. miner does not resume copper production, the Southeast Asian nation warned, escalating a six-month dispute over export rules.

The move represents a hardening of the stance of Indonesia’s outgoing government. The mining ministry earlier this week said it could terminate Newmont’s mining contract in response to the miner stopping production and filing legal arbitration over the export rules.

The developments mark the latest twist in the dispute between Indonesia and U.S. miners Newmont and Freeport-McMoRan Inc that has led to a halt in copper concentrate shipments from Southeast Asia’s biggest economy.

Indonesia plans to soon send a letter to Newmont saying that the company has defaulted on its contract, said Sukhyar, director general of coal and minerals at the mining ministry. “The default is due to the stopping of production, so we can say they are negligent,” Sukhyar told reporters on Thursday.

A Newmont spokesman did not comment on the risk of the company losing its mining licence at its Batu Hijau copper mine but said in an email that the company is eager to resume production as soon as the government issues it an export permit.

Read more

Program trains Aboriginal women in mining – by Lindsay Kelly (Northern Ontario Business – July 16, 2014)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. 

Her official title is job coach, but in her role with the Temiskaming Native Women’s Support Group, Kelly Lamontagne can, on any given day, also serve as a social worker, mover, relationship guru, personal shopper, addictions counsellor, cheerleader and headhunter.

It’s all done in the name of helping Aboriginal women in Temiskaming and Timmins train for work in the mining industry through the two-year program Aboriginal Women in Mining.

“The group’s purpose is to help as many women as we can,” Lamontagne said. “If you’re making strong women who can make strong decisions and have a good career and have good self-esteem, you’re then making stronger children, stronger families, better men.”

Any woman with First Nations, Métis or Inuit heritage within the catchment area is eligible to apply to the program, although it’s targeted primarily to women who have faced serious life challenges such as trauma, poverty or addictions.

Participants start by developing life skills and move into job training, which includes job interview techniques, resume writing and setting up partnerships with employers.

Read more

Barrick Gold CEO Jamie Sokalsky steps down, replaced by co-presidents – by Lisa Wright (Toronto Star – July 17, 2014)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Management shakeup puts new board chairman John Thornton’s stamp on miner following recent departure of company founder Peter Munk.Management shakeup puts new board chairman John Thornton’s stamp on miner following recent departure of company founder Peter Munk

After two years spent overhauling ailing Barrick Gold Corp., president and CEO Jamie Sokalsky will step down in September as part of sweeping changes to the miner’s management structure.

The announcement Wednesday that two co-presidents will soon share the helm comes just 10 weeks after the departure of Barrick founder Peter Munk, and is clearly new board chairman John Thornton’s first big stamp on the leadership of the world’s biggest gold miner, analysts say.

“He was brought in to bring change, and he’s bringing change,” said John Ing, president of Maison Placements Canada.
Eliminating the role of CEO may also leave the door open for the resumption of merger talks with Newmont Mining Corp., Barrick’s biggest rival, said TD Securities mining analyst Greg Barnes in a note to clients.

Read more

Barrick shakeup signals more changes ahead – by Ian McGugan (Globe and Mail – July 17, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The unusual new management structure at Barrick Gold Corp. signals two things – that John Thornton is now clearly in command of the world’s largest gold miner, and that more changes lie ahead.

The company announced Wednesday that president and CEO Jamie Sokalsky will be resigning in September, after only two years in the post. He was a favourite of company founder Peter Munk and his departure suggests that Mr. Thornton, who was named chairman only three months ago, is eager to put his own stamp on the company.

The question is precisely what form that stamp will take. One possibility is that Barrick will attempt to reopen merger talks with Newmont Mining Corp. of Colorado. Discussions between the two mining giants blew up in April, with both sides slinging accusations at each other.

Another possibility is that Barrick will strike a deal in China, a country where Mr. Thornton has extensive contacts from his days as chairman of Goldman Sachs Asia and as a business professor at Tsinghua University in Beijing.

Read more

Congo copper output growth to slow in 2014 -mining chamber- by Peter Jones (Reuters India – July 17, 2014)

http://in.reuters.com/

Kinshasa – (Reuters) – Growth in copper production in Democratic Republic of Congo will slow in 2014 from its rapid pace the previous year due to insufficient energy supply and uncertainty over new mining laws, Congo’s mining chamber said.

Copper production leapt to a record 914,631 tonnes last year from 620,000 tonnes in 2012 as new mining projects and expansion plans came online.

In a report on the first quarter of this year, the mining chamber predicted that copper output in 2014 would inch up to 922,000 tonnes, annual growth of just 0.82 percent compared with the 47 percent leap the year before.

“(Congo) still has the potential to produce over a million tonnes in 2014 and even more in following years, if it controls the parameters that influence investment, notably electricity supply and the revision of the mining code,” the report said.

The mining sector helped drive economic growth of 8.5 percent in Congo in 2013, which is forecast to rise further to 8.7 percent this year.

Congo possesses enormous reserves of gold, diamonds, copper, cobalt and tin, but the majority of its 65 million people live in poverty due to corruption, mismanagement and war.

Read more