Asia Mining – Page 103 – Republic of Mining

China slaps new fees on Mongolian exporters amid Dalai Lama row (Reuters U.S. – December 1, 2016)

December 2, 2016

http://www.reuters.com/

A major border crossing between China and Mongolia has imposed new fees on commodity shipments between the two countries, amid a diplomatic row sparked by the visit to Ulaanbaatar of the Tibetan spiritual leader the Dalai Lama last week.

The Dalai Lama is cherished as a spiritual leader in predominantly Buddhist Mongolia, but China regards him as a dangerous separatist and warned the visit could damage bilateral relations.

The crossing at Gashuun Sukhait is used to export copper from the giant Oyu Tolgoi mine run by Rio Tinto, as well as coal from the Tavan Tolgoi mine, which China’s state-owned Shenhua Group is currently in the running to develop.

China Warns of Safety Risks as Rally in Coal Price Spurs Mining – by Chuin -Wei Yap (Wall Street Journal – November 30, 2016)

December 2, 2016

http://www.wsj.com/

BEIJING—A deadly quarry collapse in northeast China this week reflects a surge in dangerous mining activity across the country as coal prices soar, following a government warning that the rally poses increased casualty risks.

The warning, in a report in early November, came as informal data have shown sharp increases in colliery casualties this year, with November the deadliest month so far.

On Tuesday, 22 workers were trapped when a shaft caved in at Qitaihe City Jingyou Coal Mine, a desolate outpost in China’s northeast, state-run Xinhua News Agency quoted rescue workers as saying on Wednesday. The cause wasn’t immediately known, nor was it clear whether any of those trapped had survived.

UPDATE 2-More Philippine mine suspensions on the way in boost for nickel – by Manolo Serapio Jr (Reuters U.S. – December 2, 2016)

December 2, 2016

http://www.reuters.com/

MANILA, Dec 2 The Philippine government will suspend more mines in a fight against environmental degradation, the minister in charge of mining said, a move that could put future supply from the world’s top exporter at risk and lift nickel prices.

Nickel on the London Metal Exchange recovered nearly 1 percent from Friday’s lows on the potential for supply disruption after the minister’s comments.

The Southeast Asian nation has already halted 10 of its 41 mines in a campaign backed by President Rodrigo Duterte against what the government says is irresponsible mining. Twenty more are facing possible suspension and the agency in charge of the review may issue a ruling next week.

Rio seeks iron ore premium from China mills in likely pricing war revival: sources – by Manolo Serapio Jr (Reuters U.S. – November 29, 2016)

November 29, 2016

http://www.reuters.com/

MANILA – Australian miner Rio Tinto is asking Chinese steel mills to pay a premium for its highest grade iron ore product for the first time since an annual pricing system collapsed in 2010, two sources familiar with the situation said.

The demand by the world’s No. 2 iron ore miner comes as Chinese steel producers recover from years of losses, buoying demand for the steelmaking raw material, but could revive tensions between miners and mills over pricing that they seemed to have ditched six years ago.

Rio is seeking up to $1 per ton more than the index price for its Pilbara iron ore product, or PB fines, from Chinese mills on long-term contracts for 2017, the sources said, in a break from a years-long trend of pricing at spot values. Previously, Rio was selling the ore at a premium only to traders.

Not all foreign investment is in Canada’s national interest – by Sean Speer and Shuvaloy Majumdar (Globe and Mail – November 28, 2016)

November 28, 2016

http://www.theglobeandmail.com/

Let us be precise: Chinese SOEs are controlled and influenced by
the Chinese government and are plainly agents of the Chinese state.
Former senior CSIS official Ray Boisvert has said: “state-owned
enterprises have the same marching orders or essentially the same
mandate or mission” as the broader Chinese state. These companies
have non-market objectives including corporate espionage, the
acquisition of strategic resources and geopolitical calculations.

New reports that Ottawa may relax restrictions on foreign investment in previously protected sectors such as broadcasting and telecommunications is welcome news. It’s the type of structural reform that could provide a long-term boost to the Canadian economy. The Trudeau government has already signalled progress on opening up the aviation sector and will deserve considerable credit if it maintains such ambition across other parts of the economy.

But such a liberalization should not be executed unthinkingly. Federal investment policy should be prepared to distinguish between state-owned enterprise (SOE) investment and investment from different sources – and maintain the capacity to exclude investments that aren’t in the national interest.

China’s iron ore imports on track to top 1 billion tonnes; India shipments surge – by Manolo Serapio Jr (Reuters India – November 25, 2016)

November 25, 2016

http://in.reuters.com/

MANILA – China’s iron ore imports from India surged in October and purchases from Australia grew slightly, data showed on Friday, with total shipments to the world’s top buyer of the steelmaking commodity on course to top 1 billion tonnes this year.

Shipments from Australia, which account for nearly two-thirds of China’s imports, rose 3 percent to 49.89 million tonnes last month, according to China’s official customs data. Shipments from No. 2 supplier Brazil increased 17 percent to 17.88 million tonnes.

China’s total iron ore imports were 80.8 million tonnes in October, the lowest since February, but the biggest volume ever for the month of October.

Barrick mulls Kalgoorlie bid of roughly $1.3 billion by China’s Minjar: sources – by John Tilak and Susan Taylor (Reuters Canada – November 24, 2016)

November 25, 2016

http://ca.reuters.com/

TORONTO (Reuters) – Barrick Gold is reviewing the financial backing behind an approximately $1.3 billion bid for its stake in Australia’s Kalgoorlie mine by Minjar Gold, a unit of Shanghai-listed Shandong Tyan Home, two sources told Reuters.

Toronto-based Barrick, the world’s largest gold producer, is studying the offer for the 50 percent stake to ensure Minjar has adequate resources and support to complete the transaction, said the sources, who declined to be identified as the matter is private. Barrick declined to comment.

Little-known Minjar has trumped offers by Australian, Chinese and Canadian companies for the asset, the sources said.Newmont Mining, Barrick’s joint venture partner at Kalgoorlie and mine operator, has said it was interested in buying the remaining stake, but price has been a sticking a point.

UPDATE 2-Indonesia to cut royalty for processed nickel to 2 pct -official – by Wilda Asmarini (Reuters U.S. – November 22, 2016)

November 22, 2016

http://www.reuters.com/

Nov 22, 2016 – Indonesia will cut the royalty charged on sales of processed and refined nickel to 2 percent, a mining ministry official said on Tuesday, part of a revision of government rules on non-tax revenue from the coal and minerals sector.

The revision is needed to encourage more miners to develop smelters, said Coal and Minerals Director General Bambang Gatot, referring to a government drive to develop downstream industries and increase returns from Indonesia’s mineral resources.

The royalty, paid by miners to the government, is currently 4 percent of each sale. “If it’s 4 percent it’s as if it gives no incentive for processing and refining. It gives no stimulus to companies to (build smelters),” Gatot told parliament.

What do Chinese millennials want? De Beers hopes to boost market for N.W.T. diamonds – by Mitch Wiles (CBC News North – November 17, 2016)

November 18, 2016

http://www.cbc.ca/news/canada/north/

With slower economic growth in China and millennials marrying later in life, the diamond industry is looking closer at what millennials want, how they purchase, and why. According to the 2016 Diamond Insight Report from De Beers, total global diamond jewelry sales fell from $81 billion US in 2014, to $79 billion US in 2015.

The report defines millennials as people born between 1981 and 2000. Chinese millennials represented 68 per cent of that country’s total diamond jewelry purchases. There are 421 million millennials living in China.

Tom Ormsby, head of external and corporate affairs for De Beers Canada, highlighted findings of the report in Yellowknife on Tuesday, at the 44th Annual Geoscience Forum. De Beers operates the Gahcho Kue diamond mine 280 kilometres northeast of Yellowknife.

Aluminium in Iran – can the potential be realised? – by Ken Stanford (Aluminum Insider – November 18, 2016)

November 18, 2016

http://aluminiuminsider.com/

Following the relaxation of sanctions, Iran, which has for many years been marred by political issues and civil unrest now has plans for fresh development of its infrastructure and industry – and the country’s aluminium sector in particular has been targeted for key support. However, the prospects for realising the considerable potential will be impacted by various challenges.

Aluminium is the world’s fastest growing industrial metal and Iran has the potential to be a major player in this accelerating, profitable sector, according to a recent presentation made in Iran by the London-based Commodities Research Unit Group (CRU). CRU’s raw materials expert, Michael Insulan, was speaking at a seminar staged at the Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO), headquartered in Tehran.

According to Insulan, demand for aluminium has been growing at a fast pace. In order to consider Iran’s potential, it is useful to take a look at the regional and global context. The metal recorded a nearly 6% compound annual demand growth rate for the 2000-15 period – even topping iron ore, the global commodity market’s most sought-after material.

World’s Top Miner Expects Iron Ore, Coal Price Surge to Cool – by David Stringer (Bloomberg News – November 17, 2016)

November 17, 2016

http://www.bloomberg.com/

BHP Billiton Ltd., the world’s biggest miner, expects soaring prices of iron ore and coking coal to moderate even as China pushes ahead with efforts to restructure its steel sector.

Prices have been supported in recent months by restocking and short-term supply disruptions, Chief Executive Officer Andrew Mackenzie told reporters Thursday in Brisbane following the company’s annual meeting. Iron ore has jumped 66 percent this year to rebound from three straight annual declines, while coking coal has surged about 295 percent.

China’s determination to push through with restructuring in its steel and coal sectors, and the nation’s increasing willingness to favor imports over domestic material, has buoyed prices alongside other short-term catalysts, according to Mackenzie.

How China’s bid to curb coal output has backfired, encouraging production and increasing mining accidents – by Sidney Leng (South China Morning Post – November 16, 2016)

November 16, 2016

http://www.scmp.com/

Government efforts to curb coal production capacity in China have backfired, according to analysts, driving up prices, encouraging production and increasing the risk of mining accidents in the rush to produce more of the fuel.

A rise in electricity production last month, mainly produced by coal-fuelled power stations, is also contributing to the smog smothering much of the north.

The government wants to reduce the amount of coal produced as part of attempts to reduce the economy’s previous reliance on heavy industry and cheap manufacturing in favour of the service and high-technology sectors. The curbs in coal production, however, have led to shortages of the fuel and a rally in prices, encouraging higher production.

Chinese tighten grip on Tenke mine as Lundin agrees to sell stake for $1.14bn – by Cecilia Jamasmie (Mining.com – November 15, 2016)

November 15, 2016

http://www.mining.com/

After weeks of deliberation, Canada’s Lundin Mining (TSX:LUN) said Tuesday it will sell its minority stake in the African copper mine Tenke Fungurume to a Chinese private-equity firm for $1.14 billion in cash.

The deal is a result of the Toronto-based miner’s review of strategic options for its interest in TF Holdings Ltd., the Bermuda holding company that indirectly owns an 80% interest in the massive mine, located in the Democratic Republic of the Congo.

Lundin has an indirect 30% interest in TF Holdings, which translate into the miner owning 24% of Tenke. Congo’s state miner Gecamines owns 20%. The remaining 56% belongs to Freeport-McMoRan (NYSE:FCX), which back in May signed a deal to sell that stake to China Molybdenum (CMOC) for up to $2.65 billion, a crucial part in the Phoenix-based company’s debt reduction plan.

Trump May Give Already Hot Indonesian Miners an Extra Boost – by Harry Suhartono and Fitri Wulandari (Bloomberg News – November 14, 2016)

November 14, 2016

http://www.bloomberg.com/

Already riding a rebound in coal and nickel prices that’s made them some of the hottest stocks in Asia, Indonesian miners may get an extra tailwind from Donald Trump.

A gauge of Indonesian miners has risen 21 percent this quarter, compared with a 4.6 percent decline in the Jakarta Composite Index, as output curbs in China pushed up coal prices and nickel was supported by an environmental crackdown in the Philippines, the world’s top supplier. Mining and agriculture were the only two of nine industry gauges on the JCI to climb on Friday as the measure plunged 4 percent in its biggest drop in three years.

Emerging-market stocks and currencies are taking a beating on speculation the Federal Reserve will have to raise interest rates faster than anticipated to contain inflation if President-elect Trump follows through on pledges to ramp up spending.

Inside India’s mines: Between Jan and June 2016, a death every third day – by Anil Sasi (Indian Express – November 9, 2016)

November 9, 2016

http://indianexpress.com/

New Delhi – * Just after the dawn on May 28, a mining accident at the Turamdih Uranium Mine near Jamshedpur, run by the state-owned Uranium Corporation of India Ltd (UCIL), killed three miners. 24-year-old Sonaram Kisku, a tribal contract worker, 42-year-old safety officer Surya Kant Singh and Milan Karmakar, 35, a general foreman died after they accidentally got buried under the wet radioactive slurry that they were reportedly clearing at a depth of over 250 metre in the Turamdih mine, 6 km from Jamshedpur in Jharkhand.

* Three workers of Singareni Collieries Company Ltd (SCCL) — T Hanmantha Rao and G Posham, both were timbermen, and D Kistaiah, a mason — were crushed to death when a portion of the roof of a structure inside the coal mine collapsed on them when they came in to drink water around mid-day on April 14. Of the four workers at the Shanthikhani main site near Mandamarri, one escaped with minor injuries.

Including the six lives that were lost in the two recent accidents, there were a total of 65 deaths during the first six months of this year in a series of accidents at the country’s coal and non-coal mines — translating into a fatality every three days.