Magnesium Market Update

Magnesium prices have moved down in recent weeks due to a depletion of end-user demand. In China, 99.9 percent min magnesium ingot traded between RMB 17,800 and RMB 18,350 a tonne this past week, compared to prices over RMB 18,500 in August. Low-magnesium, battery-grade mischmetal has also fallen, and is sitting at about RMB 150,00 per tonne compared to the RMB 180,000 to RMB 190,000 per tonne seen in the last two months, reported Metal-Pages. crusher jaw plates in India Magnesium min 99.9 percent also slipped in Europe, trading between 3,150 and 3,200 euros a tonne compared to 3,250 euros a tonne in August. A lack of buyers is responsible for the drop in demand for mischmetal, Metal-Pages quoted a source at a northern Chinese supplier as saying. The magnesium ingot market is also trading thin due to suppliers preferring not to accept the low prices that foreign buyers are offering for the metal. In other market news, Rus Business News reported that East Siberian Metals has passed on an opportunity to build a new magnesium plant. crusher conveyor spare part in India A Chinese company, Chaohu Yunhai, started producing magnesium alloy on a trial basis at its latest plant on October 8. Metal-Pages reported that the plant had an investment of US$158 million and has an annual production of 50,000 tonnes of magnesium alloy.

Magnesium Can Fix Your Injury or Disease, Then Vanish

The vast majority of magnesium is used for die casting in aircraft, military equipment, power tools and bicycle frames. And the automotive industry uses over 70 percent of magnesium alloys to reduce engine weight and as parts of engines, brakes and gear boxes. But magnesium is also gaining attention as a super metal that can swoop in to fix you and then magically disappear when its job is done. 200 tph crusher price list in India It was not that long ago that magnesium was recognized as important to our physical wellbeing. Now, it is being used as an antacid, laxative and antiseptic and can alleviate conditions such as muscle cramps, constipation, hypertension, aggressive behavior and sickle cell disease. It has also become a dietary supplement and is considered as important as vitamins. But recently, magnesium’s role in medical treatment has started to look more like science fiction. John Rogers of the University of Illinois at Urbana-Champaign recently released a study that describes how devices made of magnesium and silicon and wrapped in silk cocoons were inserted into lab mice and left to dissolve. The implants were designed to generate heat to fight infections after surgery. According to Rogers, similar devices could be programmed to monitor the body and release drugs accordingly or produce an electric current to accelerate bone healing. Magnesium Elektron, a UK-based researcher and maker of magnesium products, has also been working on developing bioabsorbable magnesium alloys. “The last decade has seen a significant increase in the amount of research being undertaken across the globe on bioabsorbable materials, particularly in the fields of orthopaedic trauma fixation and vascular intervention, where the use of metallic implants is commonplace,” the company said in March. “Magnesium alloys offer the potential to combine the mechanical property benefits of metallic implants with the bio-absorbable nature of degradable polymers.” The fact that it is the fourth-most abundant material in the human body is what makes it possible to insert magnesium or magnesium alloys into the human body and leave them to be dissolved without adverse effects. “In addition, because it can be eliminated very fast from the body via the kidney or intestine, it is ideal for use in medical treatments and implants,” said Dr. Frank Witte, director of biomaterial research at the Laboratory for Biomechanics and Biomaterials at the Hanover Medical School in Germany. crawler mobile crusher plant manufacturers India “Coronary diseases are most common and would benefit from magnesium stents the most,” Witte said, adding that “bone fractures and bone correction operations could be ideal for the application of magnesium implants.” “The implants based on magnesium or its alloys corrode after implantation and thus serve only for a certain time until the host tissue is healed or regenerated,” Witte commented. So, for example, if the metal is used as bone fixture on an orthopedic injury, you don’t have to remove it when the bone has healed. “It is dissolvable in the human body and can be eliminated by the kidneys and via the intestine.” Witte is also associated with the NSF Engineering Research Center, which is investigating the uses of biodegradable metals. It and other research communities are dedicated to researching metallic biodegradable materials and they meet once a year to discuss their findings. Magnesium-based implants currently being considered are cardiovascular implants such as Berlin-based BIOTRONIK’s “Dreams” implant, a biodegradable vascular stenting device that is currently undergoing clinical trials on 46 patients. Witte said other companies are in preclinical trials for orthopedic implants and those may soon be seen in clinical trials and in clinical applications. While currently no magnesium implants have received regulatory approval, Witte is convinced this will happen “very soon.”

Fracking Takes Center Stage in Quebec Shale Gas Development

crusher plant installation cost in India Quebec’s new natural resources minister has wasted no time in criticizing hydraulic fracturing or “fracking,” the process of extracting natural gas from shale.

Martine Ouellet, part of the province’s new Parti Quebecois (PQ) government, stated less than 24 hours after being named to the new cabinet that she believes fracking cannot be undertaken in a safe manner. Comments that the government is planning to implement a long-term ban on shale-gas exploration and production in Quebec have added to investor concern.

Controversial comments

Ouellet’s position allayed the concerns of those who think fracking might contaminate drinking water — a claim that led to a temporary moratorium on the practice in the province last year. But it is also proving controversial as industry players have noted that the provincial government stands to lose approximately $1 billion in royalties from shale-gas development annually if the practice is banned.

“I don’t foresee a day when there will be technology that will allow safe exploitation (of shale gas),” Ouellet said in Quebec City. “Our position is very clear: we want a complete moratorium, not only on exploitation but also on exploration of shale gas. We haven’t changed our minds.”

Investors will no doubt be assessing what the move could mean for companies operating in the region, as well as for potential future exploration and production opportunities. A complete moratorium on fracking could prove to be a step backward for the province as most other North American regions have opted to improve extraction technology and implement regulations, rather than write the practice off completely.

Moratorium already in place

Former premier Jean Charest imposed a partial moratorium on gas exploration in early 2011 so that a strategic environmental study could be undertaken to evaluate the risks of hydraulic fracturing. The practice involves injecting chemicals and water below ground to free natural gas from rock formations. It has been argued that the practice could contaminate ground water with chemical pollutants. The Strategic Environmental Assessment (SEA) is expected to be completed in 2014 at an estimated cost of $7 million. crusher parts suppliers in India Opposition to shale-gas development has remained fierce in the province even with the assessment underway, with critics labelling the mandate for the SEA as too broad and for not placing enough emphasis on justifying the province’s need for natural gas.

According to the official document outlining the SEA, the assessment will evaluate the environmental risks and impacts associated with this type of exploitation, the impact of eventually developing the shale-gas sector and the socioeconomic desirability of exploiting this resource.

Quebec currently consumes on average approximately 700 million cubic feet (Mcf) a day of natural gas, with volumes surging during winter periods and dropping off in the summer. The province’s Utica shale is estimated to hold approximately 220 trillion cubic feet of gas, which, while significant, remains second tier in comparison to other shale plays found across North America, including the Marcellus or the Montney.

Self-interest at play

In comments to the Financial Post, Ed Kallio, director of gas consulting at Ziff Energy Group, said that the shale-gas ban may in fact have been motivated by self-interest — Quebec owns Hydro-Quebec, the main power utility. Interestingly, prior to entering politics, Ouellet was an official at Hydro-Quebec.

“The last thing Quebec needs is more gas,” Kallio said. If “the gas price goes down, so does the power price. They are really exposed to low gas prices.”

Ouellet’s statements reflect the PQ government’s openly harsh stance on the gas and mining industry leading up to recent elections. During the campaign, the PQ, led by Pauline Marois, confirmed that it plans to reform the province’s mining regime, a move that is expected to be costly for companies and investors.

“Very bad message to investors and developers”

“If her decision is taken even before the studies are completed, it sends a very bad message to investors and developers,” Yves-Thomas Dorval, president of the Conseil du Patronat du Québec, the province’s lobby for big business, told The Globe and Mail.

“At some point, Pauline Marois is going to need revenues, and she is going to realize that she cannot keep on alienating business leaders,” added Lucien Bouchard, a former PQ premier who now presides over the Petroleum and Gas Association of Quebec.

Disappointment amongst industry players

Meanwhile, Michael Binnion, president and CEO of Questerre Energy (TSX:QEC), a company working on the Utica shale-gas play, moved quickly to quash investor concern following Ouellett’s remarks.

crusher machines for concrete mines in India In an open letter Binnion noted, “[w]e were disappointed to hear that the Minister does not believe modern completion techniques can ever be done safely. It is ironic since Quebec imports approximately 0.5 Bcf a day of natural gas from Western Canada that is safely produced using this proven, well-established technology.”

He added, “[w]e were especially disappointed the Minister would prejudge and put undue influence on the results of the existing and future environmental studies. However we were pleased to hear the Premier of Quebec agree that a study is necessary to evaluate all impacts.”

Talisman Energy (TSX:TLM), another firm with shale-gas interests in the province, confirmed that in spite of Ouellet’s comments, it is still hopeful that the PQ government will continue the review process that is already in process and draw up a legislative framework aimed at improving sustainable shale-gas development in Quebec.

“Our hope would be that Quebec continues to consider the process, to study it,” said company spokesperson Phoebe Buckland. “We would encourage Quebec to continue the process it has set out and continue to look at the options of developing shale gas in a way that would be safe and responsible.”

Gas Market Update

US gas futures rose early on Tuesday, lifted by nuclear power plant outages that have boosted near-term demand.

“We are viewing the market’s ability to hold up in the face of mild temperature forecasts and lack of significant storm threat as suggestive of one more price lift that could still carry October futures into the $2.90-2.96 zone prior to tomorrow’s expiry,” said Jim Ritterbusch, president of Ritterbusch and Associates, in a Reuters report.

As of Tuesday morning, front-month October natural gas futures on the New York Mercantile Exchange were at $2.866 per MBtu.

Canada could potentially one day export 9 billion cubic feet (Bcf) per day of LNG to Asia, Natural Resources Minister Joe Oliver told a Japanese audience last week.
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In a speech to the Liquefied Natural Gas Producer-Consumer Conference in Tokyo, Oliver touted Canada as a rising “global energy leader.”

Oliver was visiting Japan and South Korea on a mission to drum up business for Canada’s fledgling LNG industry and is travelling with business executives from AltaGas (TSX:ALA), Encana (TSX:ECA,NYSE:ECA) and Nexen (TSX:NXY,NYSE:ECA).

The US Energy Information Administration last week said domestic gas inventories rose across the week by 67 Bcf to 3.496 trillion cubic feet.

The natural gas rotary rig count, as reported by Baker Hughes on September 14, fell by 4 to 448 active units.

Working natural gas in storage rose last week to 3,496 Bcf, according to the EIA’s Weekly Natural Gas Storage Report. crusher screen manufacturers India An implied storage build of 67 Bcf for the week positioned storage volumes 320 Bcf above levels seen at the same time last year.

Meanwhile, Israel held discussions with the Palestinian Authority (PA) regarding plans to develop a gas field off the coast of the blockaded Gaza Strip.

Prepared for a gathering of donors to the PA, the report, released on Sunday, said initial negotiations on the controversial issue have already begun.

New Cobalt Catalyst Can Split Hydrogen from Water

Researchers at the University of Cambridge have produced hydrogen from water using an inexpensive cobalt catalyst, the university said. The research is gaining attention because hydrogen can be used as a fuel in combination with fuel cells, which are seen as a growing source of green energy. demand for mineral washing and beneficiation plant in India

The scientists’ work is also noteworthy because the cobalt catalyst will work in conditions useful to industry. That means the catalyst uses fresh water, tolerates oxygen in the atmosphere and runs at room temperature.

Hydrogen is currently produced from fossil fuels, creating the greenhouse gas carbon dioxide as a by-product. Hence it is neither renewable nor clean. “A green process such as sunlight-driven water splitting is therefore required to produce ‘green and sustainable [hydrogen],’” the University of Cambridge said in a statement.

The cobalt catalyst comes in handy because until now scientists have had a tough time finding an efficient and inexpensive catalyst that can function under real-world conditions — using pH neutral water, surrounded by oxygen and at room temperature. Currently, highly-efficient catalysts such as platinum are too expensive and cheaper alternatives are inefficient, the researchers said.

“Our research has shown that inexpensive materials such as cobalt are suitable to fulfil this challenging requirement,” Dr. Erwin Reisner, the lead author of the research and head of the Christian Doppler Laboratory at the University of Cambridge, said in a university circular. “Of course, many hurdles such as the rather poor stability of the catalyst remain to be addressed, but our finding provides a first step to produce ‘green hydrogen’ under relevant conditions.”

While it is too early to tell what impact this development will have on demand for cobalt, new applications for cobalt are generally seen as positive for the mineral, which is in oversupply; new uses could boost demand.

Global mine production of cobalt was 98,000 tonnes in 2011, according to the US Geological Survey. With two more mines coming on board in the next few years, London-based CRU has estimated that demand for cobalt will rise to over 100,000 tonnes of refined consumption a year by 2016. The market is expected to remain in oversupply at least until then.

crushing plant parts Indian suppliers The Democratic Republic of the Congo (DRC) sources nearly two-thirds of the world’s cobalt, most of which is refined in China. Zambia, Russia, Australia, Brazil and Canada also produce some cobalt, but the main players are the DRC and China.

The Cambridge researchers, in the meantime, look forward to creating a sunlight-driven hydrogen system.

Fezile Lakadamyali and Masaru Kato, co-authors of the study, told New Energy and Fuel, “[w]e are excited about our results and we are optimistic that we will successfully assemble a sunlight-driven water splitting system soon.” New Energy and Fuel added that it would be a breakthrough if the team “could get the hydrogen ready to store or reconnected to a carbon atom.”

Silver Soars on Aggressive Fed Action

The silver market was volatile ahead of the FOMC meeting. Intraday silver prices made significant moves with the white metal bouncing above $34 and $32. Silver’s fluctuations were widely attributed to a battle between the confident and the second guessers. While some were willing to bet that QE3 was in the cards, others seized the opportunity to cash in on the profits. Still, silver managed to maintain a close over $33 each day.

Wednesday ended with silver down $0.17 at $33.31. For much of Thursday, the metal remained under pressure as selling continued. Then came the announcement of a surprisingly aggressive move from the Fed.

The Fed announced that under a new, open-ended program it will spend $40 billion per month buying mortgage-backed securities. Given the other programs currently in place — such as Operation Twist, which has been extended until the end of 2012 — the Fed will be spending about $85 billion per month on “longer-term securities” through to the end of the year.

Furthermore, the Fed announced, “[i]f the outlook of the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate.”

The close

Another question of skepticism debated ahead of the announcement was whether QE3 would already be priced in. Thursday’s price action speaks for itself: the US floor session ended with December silver on the COMEX up $1.29 at $34.60. The New York spot price ended the day up $1.37 at $34.68.

The accommodative action also gave a boost to silver miners, whose stock prices did not perform overly well this week. Ahead of the announcement on Thursday there was a significant amount of red, but afterwards the bleeding largely stopped and most companies were in the green.

Company news

Apogee Silver (TSXV:APE) reported 86 percent silver recovery from a bulk sample taken from its Pulacayo development project in Bolivia.

“These bulk test results indicate a total silver recovery of 86.08% in lead and zinc concentrates and produced marketable lead and zinc concentrates with high silver grades,” states the company’s press release.china clay mining equipment Canada

Trevali Mining (TSX:TV,LMA:TV,OTCQX:TREVF,FWB:4TI) announced that construction at its Santander zinc-lead-silver mine in Peru is progressing, and commissioning is expected in the fourth quarter.

Based on current development schedules, Trevali anticipates that approximately 95,000 tonnes of mineralized material grading 5.61 percent zinc, 0.65 percent lead and 1.65 oz/t silver will be stockpiled and available for mill commissioning.

There will be a delay in Cream Minerals‘ (TSXV:CMA,OTCBB:CRMXF,FWB:DFL) filing of the NI 43-101 technical report for the updated mineral resource estimate for its Nuevo Milenio silver-gold project in Mexico.

The report was supposed to be filed by September 13, 2012, mining for chrome ore process plant in Canada but Dr. Derek McBride, who is preparing the report, has advised the company that he will not be able to deliver it by the deadline.

Orko Silver (TSXV:OK) commenced a field exploration program at its La Preciosa silver-gold project in Mexico.

Rainbow Resources (TSXV:RBW,OTCQX:RIINF) is now trading on the highest over-the-counter marketplace: the OTCQX.

Gold Pushes Higher on QE3

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US Federal Reserve Chairman Ben Bernanke ended weeks of speculation about the prospect of further monetary stimulus for the United States economy, announcing on Thursday a third round of quantitative easing (QE3).

The Fed said it will start buying $40 billion worth of mortgage debt each month, starting this Friday, as it seeks to boost economic growth and reduce unemployment.

The market’s reaction was swift and overwhelmingly positive, especially for precious metals, which act as a hedge against the inflationary pressure brought about by QE measures, which increase money supply. Gold for December delivery rocketed to a seven-month high of $1,775 an ounce — $240 higher than a 2012 low reached in May. Before the announcement, December gold futures were at $1,727.40, a difference of $47.60. Spot gold reached a high of $1,770.10 before slipping back slightly to close the trading day at $1,767.20 per ounce.

Silver also had a dramatic spike, heading over a dollar higher to $34.46 within minutes of the announcement, against the $33.31/oz spot price close on Wednesday.

Major gold producers enjoyed a significant lift in their stock prices. The NYSE Arca gold producer index rose 4.1 percent, its highest level since February. Goldcorp (NYSE:GG,TSX:G) climbed 5.4 percent to close at $45.41 in New York on double average trading volumes. Number one gold producer Barrick (NYSE:ABX,TSX:ABX) was up 4.8 percent, Yamana Gold (NYSE:AUY,TSX:YRI,LSE:YAU) leapt 6 percent and Newmont Mining (NYSE:NEM) vaulted 5.5 percent.

Issuing a statement at the end of a two-day meeting, the Federal Open Market Committee said it will continue to purchase mortgage-backed securities as long as the labor market does not substantially improve. Bernanke has called the US employment rate, stuck above 8 percent since February, “a grave concern.”

The Fed also said it will extend low interest rates until the middle of 2015 and will continue Operation Twist, a program that involves the Fed swapping $667 billion of short-term debt with longer-term securities in order to lengthen the average maturity of its holdings.

So how high could gold go? Kitco quotes Frank Lesh, a trader and futures analyst at FuturePath Trading, as saying that the Fed move, being inflationary, “is supportive for the gold market” and could keep gold rallying for a while. However, Lesh also believes profit taking could occur soon now that the highly-anticipated QE3, along with the European Central Bank bond purchases announced last week, has occurred.

“There’s been a lot of money made in gold recently. People will take their profits on the move. There will be a pullback at some point. It’s always hard to say exactly when that happens, but it will happen,” Lesh said.

jaw stone crusher design Philippines Labor unrest continues at Gold Fields mine

Labor unrest continues at Gold Fields’ (NYSE:GFI) KDC gold mine in South Africa, with operations suspended due to “an unlawful and unprotected strike” started on Sunday night by the company’s roughly 15,000 employees. The east section of the mine, which was on strike last week, was operating normally, the company said in a press release. The workers are demanding the removal of their local union leadership and are asking for tax-free bonuses, The Australian reported. The prospect of strikes crippling the South African mining sector, which accounts for 20 percent of GDP, was apparent this week with a strike at Lonmin now dragging on for a month and just a handful of platinum miners turning up for work on Monday. The strike turned ugly last month when police fired on workers, killing 34, in what is surely one of the bloodiest incidents in the country since the apartheid era.

China imported more gold this year than ECB

Those who theorize that the Chinese yuan could replace the US dollar as the world’s reserve currency had more credence added to their argument this week with a record amount of gold being imported into the country via Hong Kong. Zero Hedge reported that year to date, China has imported more gold than the European Central Bank’s 502.1 tons of bullion holdings.

Significantly, Zero Hedge notes that for the first time in history, China has imported twice as much gold as it has “imported” [meaning purchased] US Treasuries. That, combined with strong demand for the yuan and less demand for the dollar due to China’s resiliency to the financial crisis compared to the United States, makes a strong case for the idea that the yuan, backed by gold, will replace the dollar. “The financial crisis that started in 2008 has provided China with a good opportunity to promote the yuan as a global currency,” according to the deputy director of the Chinese central bank quoted by Zero Hedge.

Meanwhile, in Russia suspicion that President Vladimir Putin is seeking to use gold as an alternative currency rose after the World Gold Council reported that Russia has doubled its gold reserves over the past five years. Gold purchases by the federation have exceeded 500 tonnes, the largest increase in central bank gold reserves, leading to speculation about how the widely distrusted Putin plans to use the stockpile.

Company news

Great Basin Gold (AMEX:GBG,TSX:GBG) suspended operations Tuesday at its Burnstone mine near Balfour due to an “inability to continue funding the working capital required by Burnstone to achieve cash flow breakeven,” the company stated. Burnstone is seeking an estimated $30 to $40 million in shutdown costs along with $1.2 million per month for care and maintenance.

British miner Cluff Gold (LSE:CLF) said on Wednesday that it has signed an agreement with Samsung Construction & Trading (C&T), whereby the Korean conglomerate will provide US$20 million in funding in exchange for access to Cluff’s gold supply. Samsung will buy gold from Cluff’s mine in Burkina Faso at a 2.25 percent discount to the gold price on the day before delivery.

Onexim Group, which indirectly controls about 37 percent of Polyus Gold International, Russia’s largest gold miner, is rumored to be selling its stake in the company. ”Onexim … confirms that it is in preliminary discussions, regarding a possible sale of some, or all, of its interest in Polyus Gold, with two potential purchasers in respect of an interest of less than 20 percent each in Polyus Gold,” Onexim, run by Russian tycoon Mikhail Prokhorov, said in an email to Reuters.

Junior company news
Helio Resource (TSXV:HRC) released a preliminary economic assessment for three targets at its SMP gold project in Tanzania. The PEA allows for a base case of 500,000 ounces production with a net present value of US$85.7 million, or an upside outcome of 800,000 ounces (NPV of $146.1 million) if a 55-degree pit wall angle is viable. An earlier estimate shows 1.02 million ounces of gold in the measured and indicated category and 240,000 ounces inferred. Helio closed up 28.5 percent on Thursday. placer gold processing mobile plant Canada

Adventure Gold (TSXV:AGE) doubled its land position by acquiring 51 claims near its Val-D’Or East project in Northwestern Quebec, Canada. ”With this acquisition, Adventure Gold secures a very strategic and prospective land position adjacent to the Company’s flagship Pascalis-Colombiere property where we are currently discovering and defining new gold resources around the former Beliveau gold mine,” the company stated on Wednesday.

Paramount Gold and Silver’s (TSX:PZG,NYSE:PZG) Sleeper gold project in Nevada could produce an annual 172,000 ounces of gold and 263,000 ounces of silver, according to the final PEA filed on the project. The report concludes that the open-pit, heap-leach operation would process 81,000 tonnes per day for a minelife of 17 years, with total life-of-mine capital costs estimated at $688 million. Paramount is focused on developing its assets in Nevada and Mexico.