Asia Mining – Page 100 – Republic of Mining

China’s Australia Coal Deal Snags Access to Energy-Hungry World – by Ben Sharples (Bloomberg News – January 25, 2017)

January 25, 2017

https://www.bloomberg.com/

China isn’t just buying Australia’s coal assets, it’s also expanding access to the limited infrastructure needed to ship it globally.

Yancoal Australia Ltd.’s $2.45 billion purchase of the biggest slice of Rio Tinto Group’s coal operations will double the Chinese-owned miner’s output in the country. The deal also includes a 36.5 percent stake in Port Waratah Coal Services Ltd., the owner of two terminals at the port of Newcastle, Australia’s main conduit for thermal coal. The amount Yancoal will be permitted to ship will double.

“The Rio operations are long life, so they have plenty of reserves, and Yancoal will benefit from increased port capacity at Newcastle,” said Matthew Boyle, a Sydney-based industry consultant at CRU Group. “This is a definite game changer and Yancoal suddenly becomes a rather large player.”

Rough deal: Panna’s biggest diamond auction means nothing for its miners – by Neeraj Santoshi (Hindustan Times – January 25, 2017)

January 25, 2017

http://www.hindustantimes.com/

Panna, India – Gond tribal Jaggu ‘Adivasi’ is not losing his sleep over a 2 carat diamond he found in the gravel of Panna in November last year. It is out of his hands and will be among the diamonds that would go for lakhs of rupees at a government auction in the Panna collectorate on January 30. Jaggu, who seems to be in his 30s but looks much older, has been paid his wages. It is unlikely he will ever know how much the 2 carat (1 carat= 0.2 gram) diamond went for.

The January 30 auction is the biggest in the history of Panna’s shallow diamond mines and bids would be made for nearly 594 rough diamonds weighing around 476 carats. “Normally diamonds worth Rs 40 lakh to Rs 60 lakh are sold at each auction (four such auctions are held in a year).

Though we don’t reveal the price of individual diamonds, collectively we are hoping to get Rs 1 crore in the auction on January 30,” said Ratnesh Dixit, the diamond officer of Panna.

Freeport-McMoRan shares slump on earnings miss, Indonesia woes – by Nicole Mordant (Reuters U.S. – January 25, 2016)

January 25, 2017

http://www.reuters.com/

Freeport-McMoRan Inc (FCX.N), the world’s biggest publicly-listed copper miner, warned on Wednesday that it would need to start slashing output and jobs at its Indonesia mine by mid-February if it fails to get an export permit from the government.

The Phoenix, Arizona-based miner also reported weaker-than-expected fourth-quarter earnings and cut its 2017 copper and gold production forecasts because it expects lower output at its massive Grasberg mine in Indonesia, sending its shares tumbling.

Freeport’s exports of copper concentrate from Indonesia have been halted since Jan. 12 when a ban on shipping semi-processed ore out of the Southeast Asian country came into effect to boost the local smelter industry.

Canada needs a free trade deal with China, says Teck Resources CEO – by Michael McCullough (Canadian Business – January 25, 2017)

January 25, 2017

http://www.canadianbusiness.com/

Amid the uncertainty around Canadian companies’ access to the U.S. market, Teck Resources CEO Don Lindsay has added his voice to those calling for a free trade agreement between Canada and China. Speaking at a mining exploration conference in Vancouver this week, he pointed to Australia’s bilateral pact with China, which came into effect a year ago, as a model.

“Australia has successfully completed a trade deal that has eliminated 95% of trade tariffs between the two countries,” Lindsay said. “Meanwhile we have duties on our coal.”

Whereas U.S. President Donald Trump has proposed spending US$1 trillion on infrastructure over 10 years, Lindsay noted, “China spends a trillion on infrastructure in about 11 months.”

WHY JAKARTA NEEDS TO READ UP ON 15TH-CENTURY ENGLAND – by Tom Holland (South China Morning Post – January 23, 2017)

January 23, 2017

http://www.scmp.com/

Indonesia wants to build processing plants to add value to the nation’s copper, nickel and bauxite resources, but mining companies are not cooperating

Earlier this month the Indonesian government announced it would relax its ban on the export of raw mineral ores. Despite appearances to the contrary, officials claim they are not retreating from their hardline policy of resource nationalism.

Restricting the export of unprocessed commodities, they continue to insist, will create high-value jobs and spur Indonesia’s economic growth. Critics of the policy are less sure.

The reasoning behind the export ban, which was proposed in 2009 and came into partial effect three years ago, is simple enough. Indonesia is rich in deposits of minerals including copper, nickel and bauxite, the ore of aluminium.

China Moly to help BHR acquire stake in Congo’s Tenke copper mine (Reuters U.S. – January 22, 2017)

January 23, 2017

http://www.reuters.com/

China Molybdenum Co Ltd (CMOC) said on Sunday it had signed an agreement with Chinese private equity firm BHR to support BHR’s acquisition of a 24 percent stake in Democratic Republic of Congo’s massive Tenke copper mine.

Congo’s mining minister Martin Kabwelulu, meanwhile, confirmed CMOC had become the majority owner of Tenke after state miner Gecamines dropped its objections to CMOC’s purchase in May of a 56 percent stake from Freeport McMoRan Inc for $2.65 billion.

Gecamines, which holds a 20 percent stake in Tenke, one of the world’s largest copper mines, also dropped its objections to BHR’s purchase of a minority stake from Canada’s Lundin Mining in November for about $1.14 billion, Kabwelulu told Reuters.

COLUMN-Might China come to the rescue of the beleaguered London tin market? – by Andy Home (Reuters U.S. – January 18, 2017)

January 19, 2017

http://www.reuters.com/

LONDON, Jan 18, 2017 – The London tin market remains a tight and crowded space. True, stocks of the soldering metal registered with the London Metal Exchange (LME) have rebuilt from November’s low of 2,895 tonnes to a current 4,160 tonnes.

And true, the tightness in the nearby spread structure appears to have correspondingly eased to the point that the benchmark cash-to-three-months period CMSN0-3 actually flipped into small contango last week for the first time since September.

But stocks are still low by any historical standard and spreads are still stressed, that cash-to-3s period ending Tuesday valued at $10 per tonne backwardation. The underlying problem seems to be a lack of deliverable metal, even with the persistent cash incentive presented by the backwardation, which flexed out as wide as $270 per tonne last month.

China steel, iron ore: A new year, a new bubble – by Clyde Russell (Daily Mail/Reuters – January 17, 2017)

January 18, 2017

http://www.dailymail.co.uk/

LAUNCESTON, Australia, Jan 17 (Reuters) – The new year has started with something familiar from the last – a bubble in Chinese iron ore and steel prices.

The most-traded iron ore contract on the Dalian Commodity Exchange leapt by as much as 8 percent on Monday, in the process reaching a three-year high of 657.5 yuan ($95.29) a tonne.

Its gain so far this year is about 18 percent and the contract is around four times higher than the low reached in July 2015. It’s much the same story with Shanghai steel rebar, the benchmark construction grade, which gained 5.2 percent on Monday and is up about 16 percent since the start of the year.

King Solomon’s mines: Israeli archaeologists say fortified trading post a sign of his wealth, power – by Jamie Seidel (News Corp Australia Network – January 18, 2017)

January 18, 2017

http://www.news.com.au/

ARE these the gates to King Solomon’s mines? Archaeologists in Israel have uncovered a fortified trading post dating to the earliest days of the ancient Jewish state. Researchers from Tel Aviv University have uncovered what they call an ‘advanced’ military fortification in the Timna Valley, in Israel’s south.

It’s a site that’s long been associated with the legend of King Solomon’s mines. Dating techniques indicate the structure, and the cluster of copper smelting camps it protects, is about 3000 years old. That puts it squarely in the era of stories attribute to Solomon’s and King David’s reign.

Biblical archaeologists are elated: “The historical accuracy of the Old Testament accounts is debated, but archeology can no longer be used to contradict them,” says archaeologist Dr Erez Ben-Yosef, one of the research teams’ leaders. “On the contrary, our new discoveries are in complete accordance with the description of military conflicts against a hierarchical and centralised society located south of the Dead Sea.”

Rio Ends Quest for China Mine Riches With Biggest Holder – by David Stringer (Bloomberg News – January 18, 2017)

January 18, 2017

https://www.bloomberg.com/

Rio Tinto Group and its largest shareholder Aluminum Corp. of China have terminated their joint venture established to find copper deposits, as global mining companies tighten exploration budgets.

Chinalco Rio Tinto Exploration Co., a joint venture between Rio and Aluminum Corp., also known as Chinalco, was launched in 2011 to seek out deposits in China and had plans to expand its search to coal and potash.

“The joint venture exploration company has ceased operation and entered the liquidation phase,” Chinalco said in an e-mailed statement.

Philippines cancels permits of four more mining projects in green campaign – by Enrico Dela Cruz (Reuters U.K. – January 18, 2017)

January 18, 2017

http://uk.reuters.com/

MANILA – The Philippines has canceled the environmental permits for four more mining projects, including one planned nickel venture, as the world’s top nickel ore supplier deepens a months-long crackdown on the resources sector.

The Southeast Asian nation has been reviewing hundreds of environmental compliance certificates (ECCs) including those granted to mines. That is separate from an environmental audit of the country’s 41 operating mines whose results are set to be released on Jan. 31.

The four revoked ECCs include one for Norwegian firm Intex Resources’ proposed $2.5-billion nickel mine on Mindoro island in the central Philippines. Environment and Natural Resources Secretary Regina Lopez told a media briefing the project would damage the environment as it would be located on a watershed.

In a Goan village, chillies fight back against iron ore mining. But will they survive? – by Nihar Gokhale (Catch News India – January 15, 2017)

January 16, 2017

http://www.catchnews.com/

There was a time when the road passing through Caurem would be lined with freshly plucked chillies, laid out on sheets by the side to dry in the sun. Later, they would be sold in small roadside shops or packed off in tempo vans to the nearest town market in Quepem, South Goa. And then there was mining.

This road through Caurem also leads to half a dozen iron ore mines. The story of mining in Goa, its rise through the 2000s to peak production in 2008-11, the ban on mining in 2012, and the slow resumption since the ban was lifted in 2014, mirrors the rise, fall and eventual rise of these chillies, which are native to the foothills of Western Ghats.

And now, as mining picks up again, will the Caurem chilly survive? Caurem is settled in an undulating landscape. There are step fields nearer to the road. Away from the road, the land starts climbing steeply, as thick forests of the Western Ghats take over. The chillies come in two varieties – the milder one grown in fields, while the hotter version is grown in the forests of the ghats.

Indonesia won’t flood nickel market: minister – by Fergus Jensen and Eveline Danubrata (Reuters U.S. – January 14, 2017)

January 16, 2017

http://www.reuters.com/

JAKARTA – Indonesia’s abrupt easing of a three-year ban on nickel ore exports will not flood the global market but instead is aimed at balancing the country’s smelters and creating job opportunities at mines, top mining officials said on Saturday.

Indonesian mines may export up to 5.2 million tonnes of nickel ore a year under the country’s new rules, the mining minister said, only a fraction of its shipments when it was once a top global supplier of the stainless steel material.

Energy and Mineral Resources Minister Ignasius Jonan’s comment came after an industry backlash over the government’s decision on Thursday to lift a ban on the export of nickel ore and bauxite under certain conditions.

COLUMN-Indonesia rocks the nickel market (again) – by Andy Home (Reuters U.S. – January 13, 2017)

January 13, 2017

http://www.reuters.com/

Jan 13 Almost exactly three years ago Indonesia rocked the global nickel market by banning the export of unprocessed minerals. At the stroke of a presidential pen the flow of nickel ore feeding China’s massive stainless steel sector was cut off.

Now Indonesia has done it again, this time by part reversing that ban. The London Metal Exchange nickel price initially slumped 5 percent on the news to a four-month low of $9,660 per tonne before recovering to $10,275 at the Thursday close.

The tremors have spread to the equities market with the shares of Australia’s nickel producers and Indonesia’s own PT Vale Indonesia experiencing similar turbulence.

China imported record 1.02b tonnes of iron ore in 2016 – by Ranjeetha Pakiam(Australian Financial Review – January 14, 2017)

January 13, 2017

http://www.afr.com/

Bloomberg – Iron ore imports by China surged to a record above 1 billion tonnes last year as unexpectedly strong steel production and lower local mine output combined to fire up demand in the world’s top buyer for cargoes from Australia and Brazil, supporting a rebound in prices.

Asia’s top economy imported 1.024 billion tonnes in 2016, up 7.5 per cent from a year earlier, according to customs data issued on Friday: that’s about 32 tonnes a second, according to Bloomberg calculations. Purchases last month totalled about 89 million tonnes, compared with 96.3 million tonnes a year earlier.

Iron ore surged more than 80 per cent last year as China added stimulus to sustain economic growth, bolstering steel production, soaking up rising low-cost mine supply and shredding bears’ forecasts.