Archive for January, 2013

CHINESE MINING INVESTMENTS DWARF THE REST OF THE WORLD

Wednesday, January 23rd, 2013

CHINA LEADS THE WAY IN GLOBAL MINING INVESTMENT BY MILES

According to the National Bureau of Statistics of China the country’s fixed-asset investment in the mining industry reached $211 billion (CNY 1,312.9 billion) in 2012, an increase of 11.8% over 2011.

Fixed-asset investment in coal mining – China is the world’s number one producer and importer of the commodity – was up 7.7% year on year to $85 billion.

Capital expenditure in the ferrous metal mining industry raced ahead 23.7% last year to $24.6 billion.

This figure is in contrast to a 2% contraction in the steelmaking industry – the only sector in the country showing a decline in fixed asset investment.

The growth in steelmaking raw material projects were only outpaced by an increase in non-metal mining of 26.3% to $26.2 billion.

Investment in nonferrous metals mining in 2012 also experienced robust growth – up 19% to $23.7 billion.

Sourced & published by Henry Sapiecha

CHINA SET TO BECOME THE GREATEST WORLDS ECONOMY GROWTH

Monday, January 14th, 2013

CHINA TO BECOME THE DRIVING WORLD ECONOMY IN 2014

A new report predicts that China is set to make its “biggest every contribution to global growth in 2014” as the Middle Kingdom replaces the United States and Europe as the driving force behind the world economy.

According to HSBC’s Emerging Market Index for the final quarter of 2012, the Chinese economy will see significant growth improvement this year, rising to 8.6% from 7.8% in 2012, and far ahead of the 5.4% growth rate anticipated for emerging markets overall.

HSBC’s Chief Global Economist Steven King points out that although China’s growth rate has fallen well below the double digit levels which characterized its rapid ascent throughout the past decade, the country’s increased economic size mean that if anything its ongoing contribution to global growth has increased.

This view is vindicated by the increased exposure to China of export industries throughout the world, and in the Asia-Pacific especially, during the past five years.

A full 28% of Australia’s exports are destined for China, enabling the Middle Kingdom to set the price of Australian commodities for other overseas purchasers.

Other Asian nations such as Malaysia, Singapore and South Korea have also seen their exports to China rise sharply of late, as have more distant countries such as Chile, Kazakhstan, Saudi Arabia and Angola.

King claims that China’s swift ascendance has created two primary tiers in the global economy – that of the “old world” of North America and Europe which is still in the process of deleveraging, and a “structurally dynamic” world of new emerging markets dominated by China.



Sourced & published by Henry Sapiecha

PAPUA NEW GUINEA MOST PROFITABLE MINE HAS SOME ISSUE WITH THE GOVERNMENT & THE CEO

Monday, January 14th, 2013

NEW GUINEA MINING DRAMA WITH OC TEDI CEO PROF GARNAUT

One of Australia’s most renowned and influential economists has been forced to resign as chairman of Papua New Guinea’s most profitable mining concern after PNG Prime Minister Peter O’Neill banned him from entering the country.




The Australian
reports O’Neill declared in parliament two months ago that Professor Garnaut was prohibited from entering Papua New Guinea until mining giant BHP “surrenders control of PNG Sustainable Development Program to the government and people of PNG.”

In his resignation letter Professor Garnaut lamented the PNG government;s use of immigration powers to “[force] changes in the board of a major private company.”

At the time of his barring from PNG Garnaut had just resigned from the position of chairman of PNGSDP, the vehicle through which BHP Billiton (ASX:BHP) exerts control of the Ok Tedi gold and copper mine, yet retained his position as chairman of Ok Tedi itself.

The Ok Tedi gold and copper mine has an annual output worth around AUD$4.5 billion and is Papua New Guinea’s biggest earning company, yet operation has been severely hampered in the past by environmental controversies.

PNGSDP holds a 63.3% equity stake in the mine, with the remainder in the hands of PNG’s federal and provincial governments.

While BHP recently loosened its control of the company, ceding appointment of PNGSDP directors to the board of the company itself, the diversified mining giant remains responsible for determining the core terms of reference for the mine’s operation.

Ex-prime minister Mekere Morauta succeeded Professor Garnaut as chairman of Ok Tedi on the weekend, after replacing him as chairman of PNGSDP in November


Sourced & published by Henry Sapiecha

HIGH DEMAND JOBS IN THE AUSTRALIAN MINING INDUSTRY

Monday, January 14th, 2013

20 Jobs in High Demand in the

Australian Resources Industry

The Australian resources industry is currently experiencing a severe shortage of skilled workers. This infographic lists 20 jobs that are in the highest demand including engineering, geosciences and skilled trades.


Sourced & published by Henry Sapiecha

COLUMBIA & INCENTIVES OFFERED TO STOP USING MERCURY IN GOLD EXTRACTION

Tuesday, January 1st, 2013

COLUMBIAN GOVERNMENT OFFERS SMALL GOLD MINERS INCENTIVES TO STOP USING MERCURY IN GOLD EXTRACTION

Colombia hopes to achieve ecologically sound gold production by means of the Oro Verde (“Green Gold”, movement, which pays small-scale miners a significant premium for the adoption of environmentally friendly processing techniques.


The World reports that miners in the northern Colombian department of Choco have started to turn to a traditional African technique for the extraction of gold which employs natural materials in lieu of mercury.

Miners use balsa tree leaves to produce a soapy film when washing the gold in water. The film traps lighter minerals, effectively separating them from the heavier flakes of gold.

The traditional technique was handed down to small-scale miners in the region by their African forbears and enables them to forgo the use of mercury during the extraction process.

The use of mercury by small-scale miners has already inflicted a heavy environmental toll in some of Colombia’s key gold producing regions, leaving large swaths of jungle barren and contaminated while also damaging local water systems.

As part of the Green Gold movement groups such as UK-based Fairtrade and Fairmined are paying a premium of 15% to miners who employ environmentally friendly processes. Fairtrade and Fairmined have plans to introduce similar measures to other parts of Latin America, as well as Africa and Asia.

The movement faces considerable difficulty, however, with mercury-free gold mining requiring far greater time and effort in exchange for smaller profits, even when the generous premiums are included. So far only 1,400 miners in Colombia, Peru and Bolivia have signed up with the Oro Verde movement.

Sourced & published by Henry Sapiecha

GREENLAND HAS RARE EARTH MINERALS BUT SAYS NO TO MINING THEM

Tuesday, January 1st, 2013

Greenland easily can, but prefers

not to be globe’s new top rare

earth producer

Greenland’s treasure trove of rare earth metals, the largest deposit outside of China, cannot be mined because the elements are connected to restricted radioactive materials.

Several reports, such as The Epoch Times’ latest article, claim the island could become the world’s top rare earth producer if it wasn’t because of the tight restrictions the local government has on the exploitation of its natural resources. Not to mention the “zero tolerance” policy when it comes to uranium mining.

Recent geological work shows that below Greenland’s massive ice mass there is enough rare earths to satisfy at least a quarter of global demand in the future. The problem is they are bound up to uranium.

Jorgen T. Hammeken-Holm, department head at Greenland’s Bureau of Mineral and Petroleum confirmed to The Epoch Times that rare earth metals are tied up to the radioactive yellow material.

“With our current zero-tolerance policy [against uranium mining], it means that this deposit cannot be exploited,” Hammeken-Holm was quoted as saying.

But that is not the only problem. The other main issue is the lack of skilled workers. The national labour union wants the government to ban the use of low-wage foreign workers because it does not want local pay scales undermined or jobs lost to outsiders. However, there are simply not enough nationals able to help developing mines in the island.

That is why the Greenlandic Parliament passed earlier this month an act allowing large-scale extraction projects valued more than $900,000 to use imported labour and contractors during the development phase of the projects.

“When that phase is over, [the migrant workers] must leave the country, and the regular workforce, contractors, or service personnel must take over,” told The Epoch Times Hammeken-Holm.

Much more than rare earth

Several European leaders have been recently engaging in a strenuous bout of diplomacy with Greenland’s authorities to open up access to the country’s riches.

The vice-president of the European commission, Antonio Tajani, has led the negotiations, shaping a deal to look at multiparty development of some of Greenland’s deposits. As reported by The Guardian, the agreement is likely to extend beyond rare earths to metals such as gold and iron, and potentially to oil and gas, which are plentiful in the country’s waters.

If successful, a paradigm shift might be around the corner, as Greenland’s oil resources may be able to generate approximately 50 billion barrels of oil. This vast potential resource would benefit the European Union as most of the continent’s currently exploited oil and gas fields belong to Norway, a non-member of the block.


Sourced & published by Henry Sapiecha

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