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.

Federal Reserve in the Spotlight

copper ore crusher for Philippines Commodities ended the week higher, adding to last week’s gains after the US Federal Reserve announced on Thursday that it will undertake a third round of quantitative easing. The move was widely expected, especially in the wake of a recent weak jobs report out of the US. It also comes on the heels of the European Central Bank’s bond-buying plan, which was announced September 6.

The Fed now aims to spur US economic growth by purchasing $40 billion of mortgage-backed securities a month from commercial banks. It will continue these purchases until the US labor market shows signs of improvement. Moreover, to encourage businesses and consumers to increase spending, the bank indicated that it will keep interest rates low for the longer term.

In its statement, the Fed said, “the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.”

Stock markets also moved higher on the news, with the Dow Jones Industrial Average surging 206.51 points on Thursday to close at 13,539.86.

The Fed’s move is also drawing a lot of attention because it comes in the runup to the November presidential election. The sputtering US economy is seen as a threat to President Obama’s re-election chances, and Republican candidate Mitt Romney, who favors replacing current Fed Chairman Ben Bernanke when his term is up in early 2014, has said he feels further quantitative easing won’t do much good.

In morning trade Friday, Brent crude is up 1.21 percent at $117.82 a barrel, while copper is up 3.4 percent at $3.84 a pound. Gold is up 0.15 percent at $1,774.70 an ounce.

Gold

Gold soared to a seven-month high on Thursday in the wake of the Fed’s announcement. The yellow metal closed at $1,770 an ounce for a gain of 4 percent in the past week.

Meanwhile, labor unrest in South Africa has spread to the country’s gold sector. On Sunday, 15,000 Gold Fields (NYSE:GFI) workers walked off the job, shutting down the company’s KDC West mine. The illegal strike is now costing Gold Fields 1,400 ounces of production a day.

The striking miners are affiliated with the National Union of Mineworkers. Their demands include the removal of the union’s leadership at the mine and a pay increase to 12,500 rand (US$1,560) a month. In a September 10 press release, Peter Turner, executive vice president and head of Gold Fields’ South African region, called for calm and said the company is talking to the strikers. “It is important that we restore normality in a peaceful manner and as soon as possible,” he said.

small rock crusher Helio Resource (TSXV:HRC) received a preliminary economic assessment for its SMP gold project in Tanzania. The report consists of both a base and an upside case (the latter requires confirmation that the surrounding rock can support a pit wall at a 55 degree angle). The base case envisions a mine producing a total of 510,000 ounces of gold over a nine-year mine life. Under the upside case, that jumps to 803,000 ounces over 10 years.

Oil and gas

The Fed’s move also spurred oil prices to four-month highs. However, inventories in the United States unexpectedly rose. The US government’s Energy Information Administration said on Wednesday that the country’s crude oil stockpiles increased by 2 million barrels, to 359.1 million barrels, in the week ending September 7.

Chesapeake Energy (NYSE:CHK,TSXV:CKG), the second-largest natural gas producer in the US, sold most of its assets in the Permian Basin of Texas and New Mexico to Royal Dutch Shell (NYSE:RDS.A,LSE:RDSA) and Chevron (NYSE:CVX) for $6.9 billion. In the second quarter of 2012, these properties produced about 21,000 barrels of natural gas liquids and 90 million cubic feet of gas per day.

The company has struggled due to low gas prices. As well, its CEO, Aubrey McClendon, has been accused of conflicts of interest surrounding personal loans that he took out. Chesapeake has also faced allegations of collusion with regard to property sales in Michigan in 2009 and 2010. The company will use the cash from the sales to fund its operations and pay down debt.

Copper

The red metal also reached new highs on the Fed’s announcement. COMEX copper rose to a level not seen in four months, and on the London Metal Exchange, copper rose to $8,200.50 after hours on Thursday — its highest level since May 8.

Nevada Copper (TSX:NCU) reported positive results from the latest drilling at its wholly-owned Pumpkin Hollow property in Nevada. Hole NC12-34 targeted the expansion of the main mineralized zone and intersected 690 feet grading 1.17 percent copper, 0.085 grams per tonne of gold and 3.6 grams per tonne of silver. The company says mineralization still remains open in several directions.

Nevada is now working on a feasibility study for Pumpkin Hollow, which contains a measured and indicated resource estimated at 6.8 billion pounds of copper, 1.6 million ounces of gold, 42 million ounces of silver and 129 million tonnes of iron. The company plans to release the study in October 2012.

VMS Ventures (TSXV:VMS) said work on its Reed copper project in Manitoba, Canada, is proceeding on time and on budget. The company owns 30 percent of Reed; rock crushing equipment for sale Hudbay Minerals (TSX:HBM,NYSE:HBM) owns the rest.

The company expects to begin mining at the site in the fourth quarter of 2013, with production ramping up to its full capacity of about 1,300 tonnes per day by the first quarter of 2014.

The World's ten largest gold mines-2

6. Vaal River (South Africa) Another underground gold operation run by Anglogold Ashanti. The operation consists of the Great Noligwa, Kopanang, Moab Khotsong, and various surface operations. It produced 831 000 in 2011. aggregate equipment for sale 


7. West Wits (South Africa) Operated by Anglogold Ashanti, this is the first underground operation to make the list. Located in the West Wits goldfields west of Johannesburg, it consists of the TauTona mine (or Western Deep No.3 Shaft, which is currently the world's deepest mine), the Mponeng, and Savuka operations. As of 2011 it produced 792 000 ounces.

 8. Lagunas Norte (Peru) Another mine owned by Barrick. Located in the north of the country, it lies just over four kilometres above sea leve. In 2011 it produced 763 000 ounces of gold, and is undergoing an expansion project which will increase production as early as 2016.

 9. The Super Pit ( Kalgoorlie-Boulder, WA, Australia) to buy high efficiency three-cylinder rotary dryer machine This massive open cut is one of the main attractions in Kalgoorlie. Run by Kalgoorlie Consolidated Gold Mines ( a joint venture owned by Newmont and Barrick) the operation produces around 850 000 ounces of gold annually and is the largest open pit mine in Australia.


 10. Boddington mine (Boddington, WA, Australia) Run by Newmont, the Boddington gold mine is actually one of Australia's newest gold mines, beginning production in 2009. At the end of 2010 it had reserves of 20 million ounces of gold and 2.4 billion pounds of copper.

The World's ten largest gold mines-1

1. Grasberg Mine (Indonesia) gold panning equipment The world's largest gold mine by size and output, the Grasberg gold mine in Indonesia had an output 1 444 000 last year. It is also the world's third largest copper mine, and has close to 20 000 employees.

 2. Cortez (U.S.A.) Yet another Barrick gold mine in Nevada. As of 2011 it had gold production of 1 421 000. It is made up of the Pipeline and South Pipeline deposits and the Cortez Hills deposit. The Pipeline and South Pipeline are open pit mines, and the Cortez Hills deposit, currently under construction will utilise both underground and open pit mining. Cortez has been open longer than any other gold mine in Nevada, having been in operation since 1862.

 3. Yanacocha (Peru) Peru again makes the list with Newmont's Yanacocha gold mine, located in Cajamarca. It has produced more than US$7 billion worth of gold to date. In 2011 it had an output of 1 293 000 ounces of gold.

 4. Goldstrike (U.S.A.) Sale Stone Breaking Equipment The first American mine to make it into the list. Run by Barrick in Nevada, the mine had an output of 1 088 000 ounces in 2011. According to Barrick it is located on the Carlin Trend, which is the most prolific gold mining district in the Western Hemisphere. The Goldstrike operation includes the Betze-Post open pit mine and the Meikle and Rodeo underground mines which are located just north of the Betze-Post pit, along the same mineralized trend.

 5. Veladero (Argentina) Barrick has again made it into the list with the Veladero gold mine in San Juan, Argentina. It is immediately to the south of Barrick's Pascua-Lama property. It is a conventional open cut operation. It had an output of 957 000 ounces last year, and as of December 31 had reserves of 10.6 million ounces.

Mining megadeals are falling-2

dry washer On a regional basis, Asia and Oceania continued to drive local deal value and volume in the first half of the year with 35 deals of $50 million or more for a total value of $18.55 billion. Seventeen of those deals were based in China. India has also seen four local deals and one cross border deal in the first half of this year. The nation is becoming a major contributor to the local steel industry. It was announced in February that India's Sesa Goa, a 55.1% owned unit of Vedanta Resources, would be acquiring India's Sterlite Industries, a manufacturer of nonferrous metals products in an all-stock $3.91 billion transaction. Meanwhile, also made public in February was the announcement of China's Baoshan Iron and Steel Company that it would sell its unprofitable stainless steel and specialty steel assets to its parent Baosteel Group for $1.02 billion. In January it was announced that a consortium including South Korean steel manufacturer POSCO will buy 30% of the Roy Hill iron ore project in Australia from Hancock Prospecting for $1.5 billion. The investment will give the consortium 16.5 million tons of iron ore per year from the mine. In North America there were six local deals in the first half of the year, three of which, valued at $1 billion, took place in the second quarter. Noting that the dollar has been rising in value recently, particularly against the euro, PwC suggested U.S. acquirers "may be able to pursue relatively cheap acquisitions in the near future." mining equipment component parts Meanwhile, financial investments continued to decline as a percentage of all deals during the second quarter. During the second quarter approximately 93% of transactions worth $50 million or more involved strategic investors, according to PwC. "As noted in the last quarter, strategic investments remain strong, and we are seeing an increase in the volumes of these deals as metals companies (and other strategic investors) seek additional synergies and cost savings opportunities," said the PwC analysis. "For example, strategic investors generally have longer investment horizons, which support their high involvement compared with financial investors," PwC noted. "Also, upstream assets continue to appeal to strategic acquirers." "Strategic acquirers may see upstream acquisitions as a way to gain control over input costs and to ensure a stable, adequate supply of raw materials." gyratory crusher application

Mining megadeals are falling-1

While the second quarter saw declines in both deal volume and value in mergers and acquisitions in the global metals sector, a PwC report made public Thursday revealed that acquirers from emerging and developing economies accounted for 65% of all deal making valued at $50 million or more. The number of deals worth $50 million or more in the global metals sector fell during the second quarter of the year from 41 deals during the second-quarter 2011 to 20 deals with a total deal value of $8.9 billion reported during each quarter. select grind mill Although six mega-deals each valued at $1 billion or more were announced in the first quarter of the year, only one mega-deal was announced during the second quarter. Chongqing Iron & Steel agreed to acquire a new iron and steel production base in the Changshou from corporate parent Chongquin Iron & Steel (Group) Company Limited for $2.8 billion in shares and cash. If the current low levels of M&A activity continue through year-end, PwC warned the global metals sector could experience a year-over-year decline of nearly 20% in deal value. "Unless and until prices and demand improve, the deal environment is likely to remain constrained," cautioned PwC Global Metals Leader Jim Forbes and U.S. Metals Leader Sean Hoover in the publication, "Forging ahead." plaster processing equipment The double-dip recession in the UK and parts of the Eurozone, as well as softness in key end-markets, such as construction contributed to the decline in deal-making in the second quarter, said PwC U.S. Industrial Products Leader, Robert McCutcheon. "Commodities pricing is a potential concern," said PwC. "Prices for base metals are generally expected to continue to decline through the end of 2012." "Overcapacity also remains a problem, as new capacity continues to come online from developing and emerging economies," the report noted.

PNG approves world's first deep sea mining project

construction waste grinding plant The Papua New Guinea Government has given the go-ahead for Nautilus Minerals to start the world's first deep sea mining project. While still facing opposition from local conservationists and fisherman, the Canada-based company will mine gold and copper from hydrothermal vents on the ocean floor. Located off the coast of New Britain, Nautilus says its Solwara 1 project is not in a fishing area and has a much smaller environmental impact compared to mines on the surface. While the Nautilus project is the first of its kind Japan and China have previously expressed interest in making similar developments. There has also been a spike in seabed mining and exploration applications in Australia. construction waste crushing plant The Australian projects focus on waters off the Northern Territory coast, and have faced challenges from local environmentalists and traditional land owners.

Silver Rises Above $28 Resistance, Then Falls

Early-week silver market action likely provided some encouragement for a lot of silver bulls. The metal not only outperformed gold on a number of occasions, but also managed to break through and close above the lingering $28 resistance level. Sale Clinker Breaker In Europe On Monday, the metal’s New York closing price was $28.18 and Tuesday brought a close of $28. But those who missed the action may well doubt that those events ever occurred since by mid-week the market had weakened again. This week was data-heavy, but market participants were mostly concerned with central bank meetings. The anticipated two-day Federal Open Market Committee (FOMC) meeting did not produce any change. The Fed again noted that economic activity has decelerated, employment growth has slowed, and inflation has declined. As in the past, it expressed a commitment to monitor conditions and provide additional accommodation if needed. There was no move toward QE3 or to extend the low interest rate policy beyond 2012. But there was also no major loss of hope for Fed action as many market participants believe more monetary stimulus could be announced in September. On Wednesday, the closing day of the FOMC meeting, silver’s trading range was nearly $1. At one point silver was $28 and a few pennies, but it closed down $0.56 to end at $27.44. It is perhaps surprising that the steepest declines occurred ahead of the news from the Fed.Sale PCL Sand Maker In Europe Silver prices took a major dive early in the US session. The cause of this drop is not completely clear, but speculators believe that it could be due to a number of factors, including action by alleged market manipulator JP Morgan, suspicions that easing would not be forthcoming, or spillover weakness from other falling commodities such as base metals and grains. In any case, silver was trying to recover some ground when the news came from the FOMC meeting. The announcement applied another bout of downward pressure, but silver put up better resistance than gold and closed mid-range. On Thursday, the focus was on a European Central Bank (ECB) meeting. Last week, ECB president Mario Draghi committed to doing whatever is necessary to save the euro. That announcement provided support for silver and gold. It also spurred expectations that Draghi would announce fresh stimulus measures during the press conference after the meeting. This hope paved the way for a second central bank disappointment since he failed to do so. But as with expectations of QE3, many believe the ECB is likely to make a positive announcement regarding stimulus in the near future. With this week’s central bank meetings out of the way, on Friday the markets will be focused on the US jobs report. Non-farm payroll jobs are expected to rise by about 110,000. There still seems to be a division of sentiment between silver futures and silver ETF investors. The latest Commodity Futures Trading Commission report shows that 275.8 tonnes were added to speculative shorts, boosting those positions to 3,477.2 tonnes, a 12-month record. Though the addition of 44.3 tonnes of silver to ETFs was less than a third of what was seen in the previous week, holdings of 18,535.5 tonnes brought ETFs to the year’s highest level. The close September silver on the COMEX trading floor closed near the session low, last down about $0.56 at $26.97. The closing New York spot price was $27.14, down $0.30. Silver mining stocks were a mixed lot throughout the trading day. Company news Sale Combination Crusher In Europe Great Panther Silver ( TSX:GPR,AMEX:GPL) will release its Q2 2012 results on August 13 and will hold a conference call on August 14 at 7 a.m. PDT. Fortuna Silver Mines (TSX:FVI,NYSE:FSM) plans to release its Q2 2012 results on August 8 and will hold a conference call to discuss the results at 9 a.m. PDT on August 9. Junior company news Teras Resources (TSXV:TRA) announced that it now owns 80 acres of private land at its Cahuilla gold-silver project in California. The company may use the land to process ore when mining operations at the site begin. Drill results for the Cahuilla project will be reported in the near future. Vancouver-based Hana Mining (TSXV:HMG) reported that the latest drill results from the Banana Zone at its copper-silver project in Botswana indicate that the site contains high-grade mineralization of both metals. Core length intercepts include 3.63% copper equivalent (3.12% Cu and 35.0 g/t Ag) over 5.8 meters within a wider mineralized interval of 1.81% copper equivalent (1.58% Cu and 16.0 g/t Ag) over 14.3 meters in hole HA-526-D.

Copper Pressured By ECB Inaction, Eyes on US Jobs

Efficient Crushing-Type Mills In Europe Copper is facing downward pressure as Europe takes center stage once again, this time due to the European Central Bank’s disappointing decision to keep interest rates pat following its latest regularly scheduled meeting. The US Federal Reserve’s decision to stay away from new monetary stimulus also dampened appetite for the red metal, as did a decline in China’s manufacturing sector. While ECB president Mario Draghi stated last week that the central bank would take measures to ensure the Eurozone’s stability, the lack of concrete action has put a damper on investor sentiment, including that of copper traders. Granted, the ECB is expected to come up with concrete steps to get the Eurozone back on track for growth, and those steps should include monetary stimulus measures. In the meantime, Draghi’s comment at a news conference following the ECB meeting that “economic growth in the euro area remains weak, with the ongoing tensions in financial markets and heightened uncertainty weighing on confidence and sentiment” added to investor worries. The Fed’s decision not to go through with a third round of quantitative easing, made during its two-day meeting this week, also hurt copper demand. Given that China accounts for over 40 percent of the world’s copper market, a decline in its manufacturing sector has also dampened demand for the metal. The factory purchasing managers’ index fell to 50.1 in July, down from 50.2 the previous month, according to the National Bureau of Statistics. A reading below 50 indicates a contraction in the sector. Late Thursday, COMEX copper for September delivery was down 2.4 percent at $3.29 a pound. Market players will be looking to Friday’s release of the latest US jobs data for further clues on the direction of global commodities demand. Company news High Pressure Grinding Mill In Europe Copper output remains steady, with Chile’s Antofagasta (LSE:ANTO) reporting that its second quarter output rose over 16.5 percent on year to 173,200 metric tons on the back of increased output at its Esperanza mine. For the first six months of the year, copper output surged to 336,000 tons. Antofagasta’s production increase also reflects Chile’s copper output nationwide. The government reported this week that second quarter output increased by 5.6 percent to 452,690 tonnes, while first half output rose by 2.5 percent to 2.64 million tonnes. Chile produces about a third of the world’s total copper supply. Xstrata (LSE:XTA) too is planning to boost copper production, and said it will increase its output in Australia by 140,000 tonnes over the next five years as output at its Mount Margaret mine increases. Yet speculation is growing among industry analysts that BHP Billiton (ASX:BHP,NYSE:BHP,LSE:BLT) may postpone expanding its Olympic Dam copper and uranium mine in South Australia until 2014 amid the lackluster performance of the commodities market and copper in particular. The Congolese government awarded Eurasian Natural Resources (LSE:ENRC) a new mining license for its Frontier project for $101.5 million. Frontier was acquired as part of Eurasian Natural Resources’ acquisition of certain First Quantum Minerals (LSE:FQM) assets earlier in the year for $1.25 billion. As for First Quantum Minerals, the Canadian group reported that even though sales increased, its second quarter profit fell 9 percent from a year ago to $142 million due to lower copper prices coupled with higher production costs. Revenue rose by 9 percent on year to $722.3 million, with copper sales increasing by 11 percent to 72,711 tonnes. Sale Rotary Kiln In Europe Junior company news Canstar Resources (TSXV:ROX) acquired the 50 percent interest held by Freeport-McMoRan’s (NYSE:FCX) Canadian unit in the Mary March mineral properties in Newfoundland and Labrador. Vancouver-based Trevali Mining (OTCQX:TREVF,TSX:TV) said it will fully acquire the past-producing Ruttan copper deposit in northern Manitoba. The company said that the deposit “holds good to excellent exploration potential,” adding that “the majority of the former mine infrastructure remains in place including tailings management facility, water treatment plant, power, road/rail and the town of Leaf Rapids that was built to service the former mine.” Excelsior Mining (TSXV:MIN) CEO Stephen Twyerould said that the final assay results from the company’s Gunnison copper property in Arizona “confirm what we were expecting and provide more evidence that Gunnison is a robust copper deposit.” The Gunnison project has a copper resource of 3.21 billion pounds indicated oxide copper and an additional 0.88 billion pounds inferred oxide copper. Benton Capital (TSXV:BTC) has transferred all of its assets to newly-listed Benton Resources (TSXV:BEX) with the exception of its investment in Coro Mining, $730,000 in working capital, and its Goodchild project in Ontario. Benton Capital will focus on developing the Goodchild copper and nickel project, which is currently being permitted for production. The company also has 42 percent of total shares in Coro Mining (TSX:COP), which concentrates on developing projects in South America.

Gold Fizzles, Kinross Cleans House

Gold fell below the psychologically important $1,600 level Thursday after European Central Bank (ECB) president Mario Draghi failed to announce bold action to contain the Eurozone crisis. Sale Rotary Dryer In Europe Precious metals investors were optimistic that the ECB might resume its bond purchasing program after Draghi said a week ago that the central bank will “do whatever it takes” to preserve the embattled euro. That news helped gold rally to $1,629.10 an ounce, its highest level since the middle of June. On Thursday, however, the precious metal slumped after Draghi indicated that no immediate measures will be taken and that the bank will hold the line on interest rates and defer a decision on any monetary stimulus. At the close of the trading session, spot gold was down just over $1 to close at $1,588.60 an ounce, while US gold futures for December delivery were down $18.30 an ounce at $1,589. It now appears that the ECB will hold off for several weeks on purchasing bonds, a policy designed to hold down borrowing costs on countries like Spain and Italy, peripheral Eurozone nations that are becoming unsustainable. Reuters quoted a senior manager at Danish investment bank Saxo as saying, “Draghi came and failed to deliver. It shows how fragile the situation currently is that people look more towards the central bank for support then their governments.” Meanwhile, inaction was also the prevailing trend in the United States this week. The Federal Open Market Committee (FOMC) signalled that it will not, as gold investors had hoped, pull the trigger on quantitative easing (QE), although expectations that a third round of stimulus will take place next month remain. QE is considered to be bullish for gold because the new money is expected to stimulate demand and cause inflation, which makes commodities, especially precious metals, attractive as an investment vehicle. This week South Korea continued the trend of central banks buying gold to build up their reserves. The Bank of Korea bought 16 metric tons in July for its third purchase of bullion in just over a year. The country bought 15 tons in November and 25 tons in June and July of last year, bringing total reserves to 70.4 tons currently, Bloomberg reported. Company news Small Scale Iron Ore Quarry Equipments Kinross Gold (TSX:K,NYSE:KGC) CEO Tye Burt became the fall guy for the company’s dismal performance this year. The board at Canada’s third-largest gold producer decided Wednesday to dump Burt and promote Paul Rollinson, executive vice president of corporate development, to the top position. The news should come as no surprise to Kinross shareholders, who have been wringing their hands this year over Kinross losing $9 billion in market capitalization as its stock plunged 50 percent. The company has endured a number of setbacks, including a work stoppage at its Tasiast mine in Mauritania and a $2.5-billion writedown in connection with its acquisition of Red Back Mining, led by Burt, in 2010. The pain continued for Kinross on Thursday as its shares slipped 5.62 percent in Toronto. Central Asia-focused miner Centerra Gold (TSX:CG) had a terrible first half, reporting a $69.3 million loss. Centerra said its profits dove 66 percent due to cash costs at its Kumtor gold mine in the Kyrgyz Republic increasing 117 percent. Nevertheless, CEO Ian Atkinson said in a statement that he still expects the company to reach its production guidance of 450,000 to 470,000 ounces of gold this year. More bad news for Barrick Gold (TSX:ABX,NYSE:ABX) came this week in the form of a ratings downgrade from A- to BBB+ from Standard & Poor’s. The move followed last week’s announcement that Barrick, the number one gold producer, is delaying its Pascua-Lama mine in South America due to 60 percent cost overruns. Second-quarter results from most major gold miners have been disappointing, due mostly to lower production numbers and higher costs. Junior company news Small Scale Copper Ore Quarry Equipments Australian junior Alkane Resources (ASX:ALK) saw a 4.09 percent bump in its stock price Thursday after getting its Tomingley gold mine approved by the New South Wales government. The project, consisting of three open-pit mines, is expected to start up in 2013 and produce 50,000 to 60,000 ounces per year, for a mine life of 7.5 years. Yukon-Nevada Gold (TSX:YNG) reported some promising drill results from its Jerritt Canyon project in Nevada. Highlights of the eight-month underground drill program include intersections of 26.23 meters at 11.45 grams per tonne, 3.66 meters at 26.13 g/t, and 10.67 meters at 6.31 g/t.

Weekly Round-Up: Strong US Jobs Data Boosts Commodities-2

Copper Complete Crushing Plant Investors remain hopeful that a rebound in the Chinese economy, particularly through government stimulus policies including monetary easing, will help bolster demand in the world’s largest copper-consuming nation. In the meantime, the price of the red metal is struggling, particularly because Chinese manufacturing struggled in July. According to the National Bureau of Statistics, the factory purchasing managers’ index in the latest month fell to 50.1, down from 50.2 the previous month. Ivanhoe Mines (NYSE:IVN) has changed its name to Turquoise Hill Resources, and starting August 8 it will be trading on the New York, NASDAQ and Toronto stock exchanges under the ticker symbol TRQ. The name change is part of the company’s financing agreement with Rio Tinto (ASX:RIO), which will allow it complete the Oyu Tolgoi copper and gold project in Mongolia. In other Mongolia-related news, Mongolia’s former president, Nambaryn Enkhbayar, has been sent to jail for four years on corruption charges. The political uncertainties highlighted by the sentence are increasing worries about investing in the country’s mines. In the Philippines, Philex Mining (OTC Pink:PXMFF) has suspended operations at its Padcal copper and gold mine due to typhoon flooding. Government authorities reported that discharges were running out of one of the two underground tunnels that drain clear water, and the company said operations will not resume until the matter is resolved. Geologix Explorations (TSX:GIX) completed its $2.5 million private placement, having issued 12.51 million units at 20 cents a unit. The net proceeds will be used to continue exploration of new target areas and will go towards continued development of the company’s Tepal copper and gold project in Mexico, which is its primary focus. Sand Making Plant Gold Kinross Gold (NYSE:KGC) sacked CEO Tye Burt and appointed J. Paul Rollinson, executive vice president of corporate development, as his successor due to the company’s lackluster performance in recent years. Gold Fields (NYSE:GFI) warned that it may be laying off many workers at its South Deep mine in South Africa as it looks to develop a new operating model. The company remains in negotiations with the National Union of Mineworkers. Granite Processing Plant High Desert Gold (TSXV:HDG) President Ralph Fitch said the latest drilling results at its Gold Springs project in Utah “confirm our prediction that we would find new gold mineralization in undrilled areas below outcropping gold mineralization.” The company also increased its interest in the project to 70 percent, and Fitch stated that “[o]ver the year we have added to our land package in the district and with increased ownership we can drive even greater value for our shareholders in an up-and-coming gold district.”

Weekly Round-Up: Strong US Jobs Data Boosts Commodities-1

Better-than-expected US jobs data helped drive up energy and industrial metal prices across the board as investors’ hopes were raised that steady recovery in the world’s largest economy will drive up global demand. Small Scale Nickel Ore Quarry Equipments However, some uncertainties still loom, not least the still-hazy outlook for the Eurozone and continued anxieties about Chinese growth. The US Department of Labor reported Friday that July’s non-farm payrolls increased by 163,000 compared to just 64,000 in June, suggesting that employers are more eager now to hire new workers. Still, caution remains as the unemployment rate inched up one-tenth of a percentage point to 8.3 percent. Investors were rattled earlier in the week when the US Federal Reserve took no monetary stimulus action following its regularly scheduled two-day policy meeting, even though many analysts had expected the Fed to go through with a third round of quantitative easing to boost economic activity. Small Scale Lead Zinc Ore Quarry Equipments The European Central Bank’s (ECB) inaction following its own meeting also gave concern to investors who were expecting more than a verbal commitment that the ECB plans to get the Eurozone back on track. In early morning trade Friday, Brent crude is up 1.5 percent at $107.51 a barrel, while copper is 1.4 percent stronger at $3.33 a pound. Gold is 0.3 percent higher at $1,595.10 an ounce. However, strong US jobs data has decreased speculation that further monetary stimulus — which would encourage gold investors — will be provided by the Fed. Oil and gas Apache (NYSE:APA) reported that its net income for the second quarter plunged 72 percent from a year ago to $356 million. The company secured an average of $97.66 per barrel for crude oil, down 8.1 percent on year, while its North American gas price dropped 35 percent from a year ago to $3.17 per thousand cubic feet. In contrast, SandRidge Energy (NYSE:SD) reported that its second quarter net income rose 45 percent to $809 million from $196 million during the same period a year ago. Its oil and gas revenue rose 38 percent on year to $429.8 million. The company raised its production projection for the full year to 33 million barrels of oil equivalent, up from its previous forecast of 32.3 million barrels. As for offshore drilling group Transocean (NYSE:RIG), it reported a $304 million loss for the second quarter, compared to a profit of $124 million posted a year ago, largely due to the $750 million that it allocated to pay out settlements for the 2010 Gulf oil spill disaster. Nevertheless, revenue increased by 10 percent on year to $2.58 billion.Small Scale Chalcopyrite Ore Quarry Equipments Meanwhile, Canada’s Wavefront Technology Solutions (OTCQX:WFTSF,TSXV:WEE), which develops fluid injection technology to improve oil recovery, reported that its third quarter net loss increased to $1.53 million from a loss of $927,471 during the same period a year ago due to sales and research costs. Revenue, on the other hand, rose 28 percent to nearly $1.4 million.

What’s Next for Lithium Mining in Chile?

Chile, the world’s largest producer of lithium at 43 percent global marketshare, is about to crack open its vast Salar de Atacama lithium deposits to further private investment. Earlier this month, the government announced that it is planning to raise some $350 million over the next 20 years by tendering a special lithium-production contract to the highest bidder. The deadline for submissions is September 12 and a decision is expected to be announced by the fourth quarter.aggregate equipment for sale Lithium Investing News spoke with Daniela Desormeaux, general manager of Chile-based market intelligence firm signumBOX, about the bidding process and how the tender is likely to affect the lithium market. Lithium Investing News: Pablo Wagner, Chile’s deputy mining secretary, recently went to New York to try to drum up investor interest in bidding for contracts to produce lithium in Chile. Media reports say the winner of the bid will be allowed to extract up to 100,000 tonnes of lithium over 20 years. Can you give us an idea of first, which companies are currently producing lithium in Chile, and second, which companies could be in the running to win the bid? Daniela Desormeaux: Currently there are two companies that produce lithium from the brine contained in the Salar de Atacama. SQM (NYSE:SQM), a Chilean company, and Rockwood Holdings, (NYSE:ROC), which is a large US chemical company. They produce lithium carbonate, lithium hydroxide, and lithium chloride here in Chile and north of Chile and export to the rest of world. These two companies have 43 percent of marketshare, which makes Chile the largest lithium producer. The second question, the winner will be the company that offers the highest amount of money. They say the minimum price to participate is $5 million. According to the government, a lot of companies might be interested, but it is hard to know. Some say it could be a large lithium producer like SQM, Rockwood, or FMC Lithium (NYSE:FMC), or a junior company, but I don’t know. It’s just a matter of money. LIN: The government has said that it is estimated that Chile will earn $350 million in royalties from these new projects. But opponents want to take the government to court over the decision to further privatize the industry. Do you think they will succeed? DD: People in Chile say the government is giving the lithium for free to foreign companies, but this is not true. The production of lithium started almost 30 years ago from a foreign company [Rockwood]. Lithium production in Chile is private. The opposition wants the government to be directly involved in the business through Codelco or another company, but I don’t see this as a threat. hardness of minerals LIN: Lithium has been considered a strategic resource in Chile since 1982 due to its potential use in nuclear weapons. What has changed for the government to open lithium mining up to foreign companies? DD: They have realized there isn’t any reason to give it a strategic status. But in order to change these conditions they need to change the law. They need two-thirds approval in Congress to change the law. This is very difficult to achieve, so they decided to find another way to change the industry. The Salar is owned by the government, but they can tender special contracts to private companies. The law remains that lithium is strategic and owned by the government. They’re following the same model as with oil or gas. They give private companies the right to explore it subject to a royalty – in this case, 7 percent. LIN: Is it also to protect Chile’s marketshare in the lithium market? DD: Chile could lose marketshare maybe to Australia or Argentina, so the government realized they can’t have this situation, it’s not sustainable with time, so they have to open the industry. LIN: Sustainable in the sense that the supply can’t keep up with demand? DD: Yes, because SQM and Rockwood also have contracts with the government. SQM has a quota to produce lithium until 2030, but the government realizes they need to change the situation. In the last five years more than 100 lithium projects have been developed, most of them in Argentina, also in Canada, Australia, and China. The trend is to open the industry. All of the countries are doing this. LIN: Could Chile develop a state-controlled lithium miner for mining lithium in the same way Codelco mines copper? DD: Codelco has one or two lithium concessions. But there is political pressure right now for the government to be involved directly in the production of lithium. I think that maybe Codelco could be allowed slightly to participate, just to manage this political issue, but Codelco’s core business is copper. And lithium is so small it doesn’t make a lot of sense for a huge company to start a business which is so small, so maybe if Codelco decides to participate they will do so with a partner. LIN: What are the chances of the contract going to a junior versus a big miner like Codelco? DD: It will depend how much money they can bring to the table, and there’s a lot of uncertainty because with junior mining the core business of these companies is lithium, but in the case of other companies, for example SQM, their core business is potash. Lithium is a by-product as well as a credit for the cost of mining potash, it’s like a subsidy. The business of these huge chemical companies is different. They can afford a high bid. LIN: Does the winner have to build a processing plant? select grind mill DD: Yes, they have to build a chemical plant within five years. If they don’t start producing, the government will remove the quota and they will have to resubmit the tender. LIN: The contract is for 100,000 tonnes of lithium over 20 years. Is that enough to move the market? DD: If you put the number in terms of lithium carbonate equivalent, you have 55,000 tonnes of lithium carbonate equivalent, and total demand [this year] is 150,000 tonnes, so it’s four or five years worth of demand. It’s a good quota. In my opinion, new companies have overreacted so they are expanding production capacity before new demand will come, mainly from the automotive industry – batteries for electric cars. So that’s why we’ve seen too many projects in the development stage right now. LIN: Will the market be over supplied? DD: In the short run or mid run we should see some oversupply, but it’s important to stress that the prices are rising. Two of the three largest companies, FMC and Rockwood, have announced price increases, but this is an inflation phenomenon. These companies are making new investments, so they argue they have to justify the investment so that’s why they are increasing prices. Prices are going up, but new capacity is being added and the demand is growing as well. I think supply and production capacity is growing faster than demand. Maybe in four or five years, as these cars become cheaper, electrification will become important. These cars are still so expensive so that’s why we haven’t seen a massive penetration. But maybe in the long run we’ll see a tightness in the lithium market. We’re predicting a growth in demand of 10 percent per year. This growth will be driven by the battery industry, not only batteries for cars, but for electronic devices – mobile phones, laptops, iPads. That’s very, very interesting. This would represent a trend in the world that’s similar to the trend in early ’80s, when Sony introduced the first lithium-ion battery. But production capacity is also increasing so the market will be in balance. LIN: Thank you for speaking with us.

Canada to Export Uranium to China

Canadian companies are now able to export Canadian uranium to China under a recently signed “supplementary protocol” to a 1994 pact on nuclear cooperation. The protocol, signed by Canadian Foreign Affairs Minister John Baird and Liu Tienan, the head of China’s National Energy Administration, should benefit uranium production companies in Canada and also investment in junior exploration companies with projects in Canada. “This is great news for our province and our uranium producers. Our companies are well positioned to supply product to an expanding market and to a country that has the world’s fastest growing nuclear energy program,” enthused Tim McMillan, Energy and Resources minister for the province of Saskatchewan, Canada’s uranium heartland, where the world’s top uranium producer Cameco (TSX:CCO) operates two mines and number of exploration projects are in the works. aggregate crushing and screening plant China is currently the world’s biggest energy consuming nation and operates 14 reactors with an additional 26 under construction and 171 planned or proposed. The total of planned or proposed reactors account for 41 percent of nuclear power plants in the world and 34 percent of planned or proposed nuclear power plants. In a research publication issued earlier this month by JPMorgan Chase & Co., resource analyst Mark Busuttil expects growth in Chinese uranium imports should stimulate an increase in uranium prices beginning this year. “China will likely continue to import more uranium than its existing reactors require with the expectation of a significant roll-out of capacity,” Busuttil wrote. The report indicated that spot market uranium prices may rise from the $55 range later this year to the $85 range within two years. Projected increased demand for Chinese uranium imports seems to offer support for a cautiously optimistic recent report released on mining merger and acquisition activity released by advisory firm Ernst & Young. The firm anticipates that companies with a bullish outlook on China are expected to be the dealmakers in the remainder of the year. Ernst & Young indicated that while overall M&A in the mining industry declined by 19 percent in the first half of this year, expectations of a demand rebound in uranium are also triggering acquisitions to secure future supply, with deal value and volume increasing on an annualized basis. crushed stone production lineUranium for civilian use or global security threat? While the Canada-China uranium deal is likely good news for the uranium space, some observers have raised concerns over what China could do with the raw uranium, which can be used both for civilian purposes in nuclear power generation and for military purposes in the construction of nuclear weapons. “It is a dangerous part of the world in terms of nuclear proliferation,” Paul Meyer, senior fellow at the Simons Foundation, a non-proliferation institute based at Simon Fraser University in Canada, was quoted saying in an iPolitics article published in February, when the Canada-China deal was first announced. The article notes that Canada and China have different rules regarding nuclear material under the 1968 Nuclear Non-Proliferation Treaty, a near-universal agreement to promote the peaceful use of nuclear technology and to reduce nuclear weapons: “Canada, as a member without nuclear weapons, must not contribute to the construction of weapons in another country. China, as a country with nuclear weapons, is obliged to enter negotiations to reduce its nuclear arms.” In that vein, last month China led a discussion among the five original nuclear-armed states to define arms control terms, a step that might ultimately bring greater clarity about its nuclear arsenal and strategy. “Of the five original nuclear-weapons states within the nuclear Non-Proliferation Treaty, China is the most secretive about its arsenal, its stockpile of fissile material and its nuclear doctrine,” CNBC reported. A committee consisting of representatives from China, United States, Russia, Britain and France as well as Germany are expected to begin talks this summer on a glossary of nuclear terms seen as a necessary step for wider talks on disarmament. Iran’s nuclear programgold panning equipment On Monday, European Union and Iranian officials met in Turkey to reach some level of agreement on Iran’s nuclear program, which is relevant to China in that the People’s Republic and Russia are Iran’s traditional allies. It’s worth noting that earlier this month a federal grand jury in the United States indicted two men, an Iranian and a Chinese citizen, “on charges of conspiring to send materials from the United States to Iran for the purpose of enriching uranium,” Reuters reported. While neither China nor Canada was represented at Monday’s discussions, the Canada-China uranium protocol does not seem to pose the threat of uranium exports passing on to Iran. Negotiators from the five original nuclear-armed states, including China and Germany, previously agreed they want Iran to stop enrichment of uranium to 20 percent, ship the fuel it has already enriched to that level out of the country, and cease operation of its mountainside Fordo uranium enrichment facility. Moreover, the proposed expansion of China’s nuclear program to meet its growing energy needs is a factor that points more to China’s use of Canada’s raw uranium for civilian purposes than for nuclear proliferation to Iran.

Copper Up on Dips, Hopes for ECB, Fed Action

maintenance of spring cone crusher Copper is nudging back up slightly on tepid bargain hunting backed by a weaker dollar. However, investors remain largely cautious of the global economic outlook, especially as Europe’s financial situation remains shaky. At the same time, a drop in US home sales is increasing speculation that the Federal Reserve may step in to bolster the economy, which in turn could spur global growth. Despite the stimulus measures introduced by finance ministers, concerns about Spain and Greece continue to plague the European Central Bank, and market eyes will be closely following the ECB and Fed meetings next week amid growing hopes for monetary policy intervention. In the meantime, a weaker greenback has encouraged some bargain-hunting buying from non-dollar investors. Continued weakness in the US housing market is also a worrisome factor for copper traders. New home sales in June plunged 8.4 percent from a year ago to an annual rate of 350,000 units, the lowest rate in five months, according to the US Department of Commerce. The latest data is worrisome for analysts expecting a steady recovery as a key part of the US economy. The Commerce Department reported last week that June housing starts increased by the fastest pace in over three years, rising 6.9 percent on year to an annual rate of 760,000 units. Concerns about the housing sector in particular, however, are once again increasing expectations that the Fed may provide a third round of quantitative easing through large-scale bond purchasing. coal mining in india Peru’s copper output for May rose over 8 percent from a year ago to 106,593 metric tons (MT), and for the first five months of the year output rose nearly 2.1 percent on year to 498,170 MT, the Energy and Mines Ministry said. In Japan, however, rolled copper output dropped by 6.1 percent in June from a year ago, to 67,953 MT, as global demand for semiconductors and household appliances fell. In late afternoon trade Thursday, COMEX copper for September delivery is trading up 0.6 percent at $3.39 a pound. Company news On the corporate front, Australia’s OZ Minerals (ASX:OZL) reported that its copper production in the second quarter fell 9 percent from the same period a year ago to 25,521 MT. Australia’s third-largest copper producer expects production for the full year to be at the lower end of its previously announced forecast of 100,000 MT to 110,000 MT. metal processing plant As for Chile’s Antofagasta (LSE:ANTO), it appointed former Codelco CEO Diego Hernandez as its new leader. He will be taking over from Jean-Paul Luksic on August 1 as Luksic continues as chairman. Meanwhile, Italy’s Tenova Mining & Minerals said its Tenova TAKRAF and Tenova Bateman Technologies units will be building a copper ore processing system for Antofagasta’s Minera Antucoya unit. The plant will be located in Chile’s Antofagasta region and will produce 80,000 tonnes of fine copper cathode a year over a 20-year life span. Teck Resources (NYSE:TCK,TSX:TCK.B) reported sluggish second quarter results, in part due to lower copper prices. The Canadian mining group produced a record 90,000 tonnes of the red metal, but sales fell 2 percent to CA$731 million from the same period a year ago due to a fall in the price of copper. Junior company news Lundin Mining (TSX:LUN) reported that its second-quarter net earnings fell to $44.1 million from $60.1 million during the same period a year ago. While copper sales volume rose to 16,749 tonnes from 15,023 tonnes, unit cash costs for copper fell 24 percent on year to $1.61 a pound from $2.13 a pound. Guerrero Exploration (TSXV:GEX) has placed a bid to acquire privately-held Pinette Copper’s issued and outstanding shares. Vancouver-based Pinette has two exploration properties in Botswana and has invested about $2.5 million in the sites to date. In a letter of intent, Guerrero said it will issue about 33,809,885 to the shareholders of Pinette. In addition, a nominee of Pinette will join the board of Guerrero, and the current private placement of up to $250,000 will be increased to up to $1,000,000 on the same terms. Current management will continue, although Guerrero will issue 4,080,000 common shares at a deemed price of $0.05 per share to settle any obligations it may have under existing consulting agreements. Khalkos Exploration (TSXV:KAS) found copper minerals at its Nanuq property in Quebec. The mineralized zones are mostly exposed over only a few meters on strike, or discontinuously over a few tens of meters. Located 40 km south of Salluit in Nunavik, the Nanuq property is in the lake sediments, which were discovered by the Ministry of Natural Resources and Fauna of Quebec in a large sampling survey of close to 3,000 lakes covering the entire Ungava region.