China Easing Hopes Boost Copper; Bumpy Road for JP Morgan ETF-2

In Australia, BHP Billiton (ASX:BHP) reported second quarter copper production surging 15 percent from a year ago to 312,500 metric tons, which beat analysts' expectations, and rose 11 percent from the previous quarter. The company noted a 22 percent increase in copper output at its Escondida mine in Chile, as well as strong output at its Antamina mine in Peru. Production at Escondida is pegged to rise 20 percent in 2013 from the previous year. At the end of the second quarter, BHP had 278,547 tonness of outstanding copper sales revalued at a weighted average price of $3.49 per pound.plaster processing equipment
Rio Tinto (LSE:RIO), meanwhile said its copper output rose 5 percent on the year to 133,500 metric tons due largely to processing efficiencies and higher copper grades at Escondida, which it jointly owns with BHP.
dry washer Subcontractors at Chile's state-owned Codelco blocked a highway to the Andina mine as they demand better working conditions and equal pay to Codelco workers. Codelco said, however, that the dispute has not affected production. There is concern though that workers may continue to strike should their demands not be met.
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Vancouver-based Tintina Resources (OTC Pink:TINTF) executive chairman Rick Van Nieuwenhuyse said that the Johnny Lee copper deposit at the company's Black Butte project in central Montana "has excellent exploration potential," adding that following the preliminary economic assessment, the company will begin feasibility level work in the coming months. The site has estimated startup capital of $210.4 million including a 21 percent contingency of $30 million with estimated sustaining capital of $62.1 million over a 14-year mine life. Tintina has a base case long-term copper price of $2.97 a pound.
Dia Bras Exploration (TSXV:DIB) reported second quarter copper production reaching a record 4.1 million pounds compared to 800,000 pounds during the same period a year ago. The Toronto-based company said that the production surge was a result of consolidating its operations in Peru and Mexico. mining equipment component parts Dia Bras acquired Sociedad Minera Corona in May 2011, while production began at its Bolivar mine in Mexico, leading to greater metal output. Its Yauricocha mine in Peru remained Dia Bras's largest producing mine.
West Cirque Resources (TSXV:WCQ) discovered a new copper oxide mineralization zone at its Tanzilla property near British Columbia's Dease Lake. Mineralization is hosted by red and green volcaniclastic rocks, and West Cirque reported that volcanic hosted copper oxide mineralization is a new style of mineralization previously unknown at Tanzilla.
Meanwhile, International Enexco (TSXV:IEC) reported that drilling at its Contact copper project in northern Nevada added over 3,000 feet of strike length to the identified copper oxide mineralization, which now extends over 7,250 feet.

China Easing Hopes Boost Copper; Bumpy Road for JP Morgan ETF-1

High hopes for monetary easing in China, together with strong US housing data, are lifting copper prices this week. In addition, the greenback's slide has also helped prop up demand for the red metal.aggregate equipment for sale
The speculation is that Beijing will cut the reserve ratio requirement for banks as early as this weekend. That would mark the third time in two months that the central bank intervened to rev up China's economic engine. There is growing expectation too of further public spending plans as part of a broader stimulus package to boost domestic demand. That would increase infrastructure investments which in turn would increase demand for copper and other industrial metals.
Meanwhile, US housing starts for June reaching their highest level in over three years, spurring investors' appetite for copper. Housing construction rose 6.9 percent to a seasonally adjusted annual rate of 760,000 units, the highest level since October 2008.hardness of minerals
In late afternoon trade Thursday, Comex copper for September trade was up 1.45 percent at $3.52 a pound.
The possibility of a copper ETF, however, is facing political pressure. Earlier in the week, Senator Carl Levin (D-Mich) became the first member of Congress to publicly oppose JP Morgan Chase's plan to establish an exchange-traded fund backed by copper. Levin said it should be stopped as it would be disruptive to the red metal's physical market.
select grind millIn a letter to the Securities and Exchange Commission, Levin stated that if the JPM XF Physical Copper Trust trades on the New York Stock Exchange, "there is ample evidence that the proposed ETF will disrupt the market supply of copper by removing from the market a substantial percentage of the copper available for immediate delivery. This supply disruption is likely to affect the cash and futures market for copper, increasing volatility and driving up its price to create a bubble and burst cycle."
Company news
Freeport-McMoRan (NYSE:FCX) reported consolidated copper sales reached 927 million pounds compared to 1.0 billion pounds during the same period a year ago. For the full year, the company expects copper sales to reach 3.6 billion pounds. The Arizona-based company is assuming copper prices to average $3.50 a pound as it estimates operating cash flow for the year to reach $4.0 billion this year. In the second quarter, the figure reached $1.2 billion.
Ahead of the release of Freeport's latest results, however, Citigroup lowered its price target for Freeport McMoRan's amid worries about a continued fall in copper prices. Meanwhile, Nomura Securities maintained its "neutral" position for Freeport-McMoRan. Last month, however, Jeffries kept is "buy" recommendation for the world's largest publicly traded copper producer and ranked it as the research group's top pick in North American Metals and Mining, arguing that the current valuation discounts further material weakness in copper.

Why South Africa's Manganese Production is Falling

South Africa is the most resource-rich nation on Earth. A 2010 report from Citigroup gave the country's mineral reserves a total value of more than $2.5 trillion.
Manganese makes up a big part of that wealth. South Africa has about 75 percent of the world's reserves, according to the US Geological Survey. The country also led the way in manganese production in 2011, with about 3.4 million tonnes of output, ahead of second-place China's 2.8 million tonnes.select best sand washing machine
ArcelorMittal (NYSE:MT) is one global miner that is currently active in South Africa. The company has a 50/50 joint venture with Kalagadi Manganese, which is building an underground mine in Hotazel, in the Northern Cape province. The company expects the mine to produce 3 million tons of manganese ore a year. The project also includes a sinter plant on the site and a smelter at the port city of Coega that will produce 320,000 tons of ferromanganese a year.
BHP Billiton (NYSE:BHP,ASX:BHP,LSE:BLT) owns 60 percent of Samancor Manganese, which also mines manganese ore at Hotazel. Junior miners active in the country include Ferrex (LSE:FRX), which is currently exploring for manganese at its Leinster property.
Production drop couldn't come at a worse time
Even with its huge reserves, South Africa only controls 20 percent of the global manganese market. And that could be set to shrink due to an ongoing decline in its output.
The country's manganese production dropped 22 percent in April 2012 from April 2011, according to Statistics South Africa. Manganese output also fell 6.5 percent in April from March.
Across the entire South African mining industry, production volumes dropped 10.6 percent in April from a year ago. That marked the tenth straight month of seasonally-adjusted declines.select best grinding mill
The production slump comes as other countries take steps to export more manganese. For example, Gabon is now in the process of revising its mining code to encourage more foreign investment, and BHP Billiton is reportedly considering building a 300,000-tonne-per-year manganese mine in that country. Gabon aims to overtake South Africa as the world's largest manganese producer by 2015.
Politics a big factor in the South African mining industry
External factors, such as the weak global economy, are part of the reason for the production cutbacks in South Africa, but there are a range of other issues within the country that are also playing a role.
One is concern about ongoing labor unrest in South Africa's mining industry. For example, over the past few months, fighting between two unions has caused four deaths and a strike that closed the Rustenburg mine, the world's biggest platinum operation, for six weeks.
Proposed tax could be a drain on miners' profits
Miners are also worried about a number of proposals being discussed at the African National Congress (ANC) convention, which is now underway. The ANC is the party of the country's president, Jacob Zuma.
The Zuma administration is currently facing significant pressure to address the country's chronically high unemployment and poverty levels. A number of policies aimed at raising funds for the government's initiatives to deal with these problems are being considered. Proposals include a 50 percent tax on the profits of mining companies and the nationalization of certain assets, including mines.select best ball mill
Ideas such as these are further clouding the mining industry's long-term prospects. "You're adding more to the camel and pretty soon you'll break the camel's back," said Patrick Mathidi, a fund manager at Momentum Asset Management in Johannesburg. "We're unlikely to get any good news out of the policy conference."
In response to the uncertainty, South African companies are holding onto near-record amounts of cash – about 522 billion rand ($63 billion US), according to the South African Reserve Bank. That's up 11 percent from a year ago.
New railway investment should boost manganese shipments
On a more positive note for miners, South Africa appears poised to address its ongoing transportation problems.
State-owned transportation company Transnet recently announced a 300 billion rand ($35.6 billion) plan to increase railway capacity, build and improve port facilities, and upgrade fuel pipelines. The plan is specifically aimed at speeding up resource shipments. It also includes a new railway line to transport 16 million tons of manganese to Coega.
Obsolete transportation infrastructure is a significant problem for miners active in South Africa as it causes major bottlenecks and forces companies to ship resources by road – an option that Transnet says is about 75 percent more expensive than rail.
"Capacity has been a major constraint," said Asief Mohamed, chief investment officer of Aeon Investment Management in Cape Town. "With the committed expansion by Transnet, mining companies would be able to increase volumes, which would be good for earnings."
The government expects the plan to double Transnet's freight capacity within the next seven years.

A Guide to Molybdenum Investing

Ask anyone what nickel looks like and they'll likely tell you that it's a shiny, silvery metal. But ask the same question about molybdenum and you'll likely be met with a blank stare.
That's partly because molybdenum isn't a metal that occurs on its own in nature. Instead, it is found in combination with other compounds. Its main use, as part of the steelmaking process, is also largely invisible. But don't take that to mean that molybdenum is insignificant. Far from it: steel becomes much harder and highly resistant to heat and rust with the addition of just a small amount of the metal.portable mobile jaw crusher
As an example, modern automobiles range in weight from 3,000 to 5,500 pounds, but usually contain less than a pound of molybdenum.
History and production
Molybdenum was first discovered in 1778, but it didn't see significant industrial use until the turn of the 20th century, when it was incorporated in light bulb filaments. Demand also jumped during the two world wars, when molybdenum was used to harden weaponry and tank armor.
Molybdenum is often mined as a by-product of copper, but there are also mines that focus specifically on the metal. For example, Freeport subsidiary Climax Molybdenum operates two molybdenum-only mines in Colorado. The company says it has to crush 2,000 pounds of ore to recover just four to six pounds of molybdenum.
In addition, some molybdenum is recovered from old mine tailings. Amerigo Resources (TSX:ARG) operates one such facility at Codelco's El Teniente, which is the world's largest underground copper mine. portable mobile cone crusher
Characteristics of molybdenum
You'll find molybdenum (or "moly" as it's often called) in almost all types of steel, from stainless steel to cast iron to superalloys, which are commonly used in aircraft parts, turbines, and other high-stress/high-temperature environments.
Molybdenum is well suited to its role in steel production. It has an extremely high melting point of 2,623 degrees Celsius and maintains its size and shape well when exposed to high temperatures.
Thanks to these characteristics, there are very few substitutes for molybdenum as an alloying agent in steel. In fact, because of its availability and versatility, industries have been busy developing new materials that incorporate molybdenum.
Molybdenum production has been steadily rising
According to the International Molybdenum Association, about 80 percent of the molybdenum that is mined each year goes into steel. The balance is used in chemicals, particularly lubricants and paints. The metal is also finding more use in the oil and gas sectors, where refineries use it in catalysts to reduce the amount of sulfur in gasoline and diesel fuels.
In 2011, world production of molybdenum was around 250,000 tons, up roughly 3 percent from 2010 and about 13 percent higher than 2009, according to the US Geological Survey. Demand has also remained strong despite a number of economic headwinds – including the Eurozone debt crisis and concerns over a Chinese slowdown – though there are concerns that oversupply could weigh on molybdenum prices in the coming years.track mobile crusher
Today, molybdenum production is roughly split between North America, China, and South America, which account for 33 percent, 31 percent and, 29 percent of the world's yearly output, respectively.
Some of the world's biggest molybdenum-producing companies include Freeport-McMoRan (NYSE:FCX), Chilean state-owned miner Codelco, Rio Tinto (NYSE:RIO,LSE:RIO,ASX:RIO), and Thompson Creek Metals Company (NYSE:TC,TSX:TCM).
Developing world, new energy projects will drive molybdenum demand
Molybdenum demand should continue to rise in the coming years as the BRIC countries (Brazil, Russia, India, and China) continue to urbanize. Moreover, as these nations adopt more advanced technologies they will require more superalloys and other high-performance steels. That too is a long-term plus for molybdenum.
In addition, the metal is in a strong position to gain as the energy sector expands. For example, significant amounts of molybdenum are used in oil and gas pipelines and in the high-performance steels needed for nuclear plants.
However, according to UK-based metals and minerals research firm Roskill, there is now enough global mine capacity to meet current levels of molybdenum demand. The organization goes on to state that new copper mining projects could produce an additional 140 kilotons per year of molybdenum, and molybdenum-only mines could push up global production by another 100 kilotons per year.
Still, that doesn't necessarily mean molybdenum prices are set for a fall. Roskill notes, "[t]he counter balance to this potential oversupply is that the global market for molybdenum is expected to grow by some 60ktpy by 2016. It is also highly probable that many projects on the drawing board will be delayed or postponed."
Roskill also points out that an expected return to growth in the US and Japan in 2013 should further push up molybdenum demand.