INTERVIEW-Norway oil fund may sell out of mines that mistreat workers – by Gwladys Fouche (Reuters India – May 29, 2013)

http://in.reuters.com/

OSLO, May 29 (Reuters) – Norway’s $740-billion sovereign wealth fund, the world’s largest, is examining labour conditions in the mining industry and may sell out of firms that violate workers’ rights, the head of the fund’s ethics council said.

The fund could also divest from companies involved in cattle ranching, if working conditions on farms are exploitative, and from firms implicated in illegal or unregulated fishing.

“Working conditions, slave-like working conditions, … is a very important priority,” said Ola Mestad. “We have been trying to identify different sectors: (one of them) could be mining.”

The fund invests Norway’s revenues from oil and gas production for future generations. It is one of the world’s largest investors with holdings in some 7,500 companies.

It has excluded firms for what it deems to be unethical behaviour based on the advice of its ethics council, an independent body reporting to the finance ministry, which has ultimate responsibility for the fund. The ministry tends to follow the council’s recommendations. The fund also bans investments in some industries – nuclear arms, anti-personnel landmines, cluster bombs and tobacco.

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Despite challenges, mining on track to invest $50B [in Saskatchewan] – by Bruce Johnstone (Regina Leader-Post – May 29, 2013)

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

Demand for food, energy to increase

Despite the postponement of several multibillion-dollar projects, the head of the Saskatchewan Mining Association is confidently holding to his prediction that the industry will invest $50 billion in the province between 2008 and 2028.

“The outlook for the mining market and sector in 2013 remains strong, if mining companies are strategic in their actions,” Steve Fortney, president of the SMA, told a news conference Monday to launch Mining Week in Saskatchewan. “We need to remain aware of the challenges the industry faces, including increased project and operational costs that are not supported by commodity prices, and a tight labour market.”

Fortney, who is senior director of technical projects for PotashCorp in Saskatoon, was referring to recent announcements by mining companies to delay or cancel major capital projects due to softening commodity prices, a weakening global economy and competition for resources.

Earlier this month, Mosaic announced it was delaying, for up to two years, a couple of expansion projects in Saskatchewan, which would have added another two million tonnes of potash production at a cost of $2 billion.

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AFRICA INVESTMENT-South Africa labour strife creating vicious cycle – by Ed Stoddard (Reuters India – May 29, 2013)

http://in.reuters.com/

JOHANNESBURG – May 29 (Reuters) – Labour unrest in South Africa’s mines, which threatens to spread to bigger sectors like manufacturing, is plunging the economy into a vicious cycle that may spiral into stagflation, disinvestment and more social upheaval.

South Africa’s rand has lost 16 percent against the dollar so far in 2013 and hit new four-year lows this week, with mining worries triggering the latest sell-off – which picked up pace on Tuesday when data showed growth in Africa’s top economy slowed to a snail’s pace as manufacturing output shrank.

All of this is spooking investors and sowing the seeds of more social discontent, as data shows a strong correlation between the rand’s performance against the dollar and inflation, with a time-lag of nine months.

Inflation is currently just under six percent and will accelerate, with the biggest exchange-rate impact likely on food and fuel prices, which will hit working-class households hard.

But the full impact of the rand’s current weakness will only be fully felt nine months hence, after the next round of wage agreements in mining and other sectors have been hammered out.

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Shabangu announces gold, platinum rescue plan – by Idéle Esterhuizen (MiningWeekly.com – May 28, 2013)

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

JOHANNESBURG (miningweekly.com) – Mineral Resources Minister Susan Shabangu on Tuesday announced that her department would develop a rescue plan, aimed at placing South Africa’s wrecked platinum and gold sectors on a recovery path.

Delivering her department’s R1.39-billion Budget Vote in the National Assembly, she said Department of Mineral Resources (DMR) officials had been instructed to “urgently” look at a rescue plan for the gold and platinum sectors, focusing on supply- and demand-side interventions.

“The platinum and gold sectors, which are among the largest sectors of our mining industry in terms of employment, investment and revenue generation, are negatively affected by the persistent global economic environment, which has an adverse bearing on their long-term viability,” the Minister said.

Shabangu stated that South Africa’s recently concluded bilateral agreement with Russia, under which the countries agreed to cooperate on platinum group metals (PGMs) initiatives, would contribute to the creation of a suite of interventions necessary to stabilise the platinum industry.

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OMA NEWS RELEASE: Gold is much more than a medium for jewelry and money

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Yes, there is no denying the gold price has taken a beating lately. However, by the pure share of news it receives, there is ample evidence to show that this commodity still mesmerizes mankind. The earliest gold jewelry dates back 6,000 years. By 325 BC, the ancient Greeks were mining gold from all ends of the Mediterranean Sea. Gold fever has sent men on treks around the world to “moil for gold.” In Canada, would we have Robert Service and Pierre Berton as renowned authors if not for this precious metal?

In recent years, gold has been the target of more than 50% of global mineral exploration budgets – in excess of $9 billion was aimed at gold targets in 2011 and more than $10 billion in 2012. Closer to home, in Ontario in 2011, more than 50,600 kilograms of gold were produced with a value of about $2.5 billion. Gold has a historic monetary role. It is used as currency; it backs up currencies and people invest in it with the hopes of making more money.

Jewelry stores and vaults of central banks, financial institutions and investors show that the biggest uses for gold are as items of adornment and for monetary purposes such as coins and bars. While the use of this precious metal, which is number 79 on the periodic table, goes back thousands of years, gold is a metal that because of its valuable properties and characteristics is a metal for the future.

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(Mining Movie) Dead Mine: Hunting Yamashita’s treasure – by Niken Prathivi (Jakarta Post – January 20 2013)

 

http://www.thejakartapost.com/

Four mercenaries escort a group of treasure hunters into an abandoned bunker deep in the jungles of Sulawesi, Indonesia.

Yamashita’s Gold, a legendary hoard of war loot that was stolen in Southeast Asia by Japanese forces during World War II, is a popular topic among ambitious treasure hunters. The treasure was named after Japanese general Tomoyuki Yamashita.

A pushy rich man, Warren Price (Les Loveday), seeks the treasure and sponsors the dangerous voyage. He comes to the island under the protection of mercenaries Capt. Tino Prawa (Ario Bayu), Ario Nando (Mike Lewis), Djoko (Joe Taslim) and Sgt. Papa Ular (Jaitov Tigor).

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Little respite for gold – yet – by Lawrence Williams (Mineweb.com – May 29, 2013)

http://www.mineweb.com/mineweb/

Gold seems rangebound between $1350 and $1400 with no real signs of a breakout up or down, but recent developments in the physical markets may suggest a change ahead.

LONDON (MINEWEB) – Those looking for a sharp upwards reversal in the gold price given the continuing high levels of demand for physical metal, principally from the East and Middle East have so far been disappointed with the yellow metal struggling to retake the $1400 level, so far unsuccessfully. Price setting seems to be remaining well in the hands of North American markets where all that seems to be seen is the continuing offloading of inventory from the big gold ETFs in the light of artificially high stock markets, boosted by siren songs from the politicians and bankers and ever-continuing Quantitative Easing.

There is certainly a degree of continuing nervousness in the precious metals markets with many commentators predicting further falls in gold and silver ahead. What may, however, reverse the trend could be the figures for Chinese gold imports from Hong Kong for April as these may prove to be absolutely enormous.

While purchasing from the Asian markets has steadied a little now, after April’s mega rush, eastern demand mostly remains strong, although that in India has slowed somewhat as the government turns the screws on gold traders, and the farming community – responsible for much of that country’s gold purchasing and hoarding – is now in crop planting mode which tends to reduce demand at this time of year.

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Big Event draws big names in mining – by Benjamin Aubé (Timmins Daily Press – May 29, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Everything’s bigger in Timmins. OK, maybe that’s not exactly how the saying goes. But for this week anyway, it rings true.

True to its name, The Big Event, being held this weekend at the McIntyre Community Centre, has grown to become Canada’s largest annual mining expo.

“It’s a big deal,” said Mark Utting, Lake Shore Gold’s vice-president of investor relations, as the McIntyre Ballroom began to fill up prior to the opening banquet on Tuesday evening. “It started about five years ago around the centennial celebration for the city. It’s great, and this room will be packed. It’s been packed every year.”

Utting was just one of the guest speakers representing some of the more exciting gold mining projects in the region. “It puts a very bright light on the community for a few days,” said Utting. “People outside of Timmins know about it, and it’s just become part of the city.

“I go literally around the world meeting investors and stuff. The first time I ever went to Switzerland, I brought a map to show where Timmins is. They all know where Timmins is. It’s one of the best-known gold camps in the world. It has that reputation anyways, but to have a show like this just puts an exclamation point on it.”

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Good reasons to celebrate mining – by Wayne Snider (Timmins Daily Press – May 29, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – This is a week of celebration in Timmins. No, there hasn’t been a new stat holiday added to the calendar. But there are plenty of reasons for Northerners to show pride.

The Big Event Mining Expo takes over the McIntyre Community Centre and will be the highlight of Mining Week in Timmins.

While cosmopolitan urbanites in southern Ontario may scoff, there are plenty of reasons for the mining community to blow its own horn. While other economic sectors have struggled in recent years, the mining industry has been growing by leaps and bounds.

Consider the follow data provided by the Ontario Mining Association:

• In 2011, mining was a $10.7-billion industry in Ontario, up from $5.9 billion in 2002, representing growth of 80%.

• In 2011, there were more than 330 companies actively exploring minerals in Ontario, spending an estimated $5.4 billion.

• The sector is a big plus for exporting. About 72% of Ontario mining customers are located outside the province. Conversely, the sector is great for local suppliers. An estimated 74% of Ontario’s mine suppliers are based in the province.

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