September 21, 2012 – Republic of Mining

[South African] Platinum output disruption – It ain’t over yet – by Lawrence Williams (Mineweb.com – september 21, 2012)

September 21, 2012

www.mineweb.com

As the platinum price discount to gold increases again following the Lonmin settlement it may yet be too early to write off the labour problems at the SA mines as being over.

LONDON (MINEWEB) – As the dust begins to settle at Lonmin’s Marikana platinum mine and workers drift back after the killings and walkouts, the platinum price has drifted back to a substantial discount to the gold price again. This morning the price for platinum was some $140 below that of gold, back from a deficit that had fallen to as low as the high $60s at the peak of the Lonmin upheavals.

But perhaps the quick new rise in the gold:platinum price ratio has been overdone given the amount of lost production to date, not just at Lonmin – and at Impala earlier in the year – but also at the other platinum mines in the Rustenburg area which have all been affected to some extent, as well as the potential for further loss of output ahead.

Notably, the world’s largest platinum miner, Anglo American Platinum (Amplats) has itself faced substantial disruption and had to temporarily suspend output for a few days and, perhaps more importantly, is still suffering in the fallout from the Marikana problems with militant miners blockading the streets and creating an atmosphere which is not conducive to their fellows returning to work.

Barrick Gold closes Peruvian mine for one day after violent clashes – by Vanessa Lu (Toronto Star – September 21, 2012)

September 21, 2012

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.

Barrick Gold is resuming operations Friday at its Pierina mine in Peru after violent clashes this week between police and nearby villagers left one person dead and four injured.

In an official statement from its Peruvian unit, Barrick, which is the world’s largest gold producer, said its mine operations were suspended Thursday out of mourning for “the unfortunate event.” The dispute centres on a disruption in the local water supply, which Barrick says is out of its control, blaming drought conditions.

The open-pit mine is high in the Andes in north-central Peru at an altitude of 4,100 metres above sea level. While it was once one of Barrick’s bigger mines, Pierina produced 152,000 ounces of gold in 2011, out of a company-wide total of 7.7 million.

Mining is central to Peru’s economy. The country is a key producer of gold, copper, silver and zinc, but opposition has long existed from locals, who worry about environmental problems and possible contamination of the water supply.

Quebec gas in peril as PQ signals ban – by Sophie Cousineau, Bertrand Marotte and Rheal Seguin (Globe and Mail – September 21, 2012)

September 21, 2012

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.

MONTREAL, QUEBEC CITY — Quebec’s new Natural Resources Minister has signalled she will move to ban hydraulic fracturing even as she ordered a new inquiry into the practice, a position that puts development of the province’s rich resources of natural gas in doubt.

“I cannot see the day when the extraction of natural gas by the fracking method can be done in a safe way,” said Martine Ouellet, as she walked to her first cabinet meeting in Quebec City.

This former Hydro-Québec engineer and long-time defender of the province’s water reserves also reiterated the Parti Québécois’s position on the province’s nascent shale gas industry. “We will impose a sweeping moratorium, both on exploration and on extraction of shale gas,” she said.

Ms. Ouellet’s statements dispel hopes the industry had that the PQ government would tone down its electoral rhetoric against the gas and mining industry. “If her decision is taken even before the studies are completed, it sends a very bad message to investors and developers,” said Yves-Thomas Dorval, president of the Conseil du Patronat du Québec, the province’s lobby for big business.

Foreign suitors circle oil patch as Ottawa weighs Nexen deal – by Jacquie McNish and Carrie Tait (Globe and Mail – September 21, 2012)

September 21, 2012

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.

TORONTO and CALGARY — A number of foreign companies are flocking to Canada’s oil patch in search of acquisitions and investments as Ottawa weighs the $15.1-billion takeover of energy company Nexen Inc. by China’s CNOOC Ltd.

While it is not unusual for companies to circle the oil patch, interviews with a dozen industry sources and deal makers over a month have revealed a picture of an industry set for a massive influx of foreign capital while the window to foreign investment remains open.

Industry executives and advisers say offshore buyers are currently in discussions or touring the operations of a wide variety of Canadian oil sands, conventional petroleum, natural gas, oil service and refining operations.

Some of these potential acquirers include state-owned entities such as Korea National Oil Corp. (KNOC) and others from China, Malaysia and Kuwait, sources said. A handful of private-sector oil and gas giants are also on the hunt, including France-based Total SA. Joining these suitors is a new class of Asian buyers believed to include privately held Chinese companies and one of China’s largest cities, Tsingtau.