Archive for May, 2013

LIQUIFIED NATURAL GAS IS HUGE IN AUSTRALIA BUT COST BLOWOUTS WITH UNION ACTIVITIES COULD STIFLE IT

Tuesday, May 28th, 2013

THE MASSIVE EXPANSION OF LNG IN AUSTRALIA & UNION THREAT

LNG PIPES IMAGE www.www-globalcommodities.com

The speed and scale of Australia’s liquefied natural gas boom are big reasons for the industry’s growing cost pressures, Resources Minister Gary Gray says, while conceding that ”unreasonable” union wage demands are also contributing to the problem.

As the oil and gas industry heaps pressure on governments to tackle rising labour and construction costs – or risk losing out on more than $100 billion of future investment – Mr Gray said the unprecedented boom, with three major gas plants being built in Gladstone, was unforeseen.

”And so some cost pressures grow because of the very large impact of what it is that companies are actually doing,” he said. ”Nowhere in the world has anyone attempted the kind of ramp-up in LNG that we have in prospect in Australia.”

But speaking to reporters at the Australian Petroleum Production and Exploration Association conference in Brisbane on Monday, Mr Gray said militant behaviour by certain unions, including the Maritime Union in Western Australia, was ”unreasonable”.

”We do have to be conscious that unreasonable wage demands do place pressures on projects,” he said. ”My observations are not anti-union, my observations are about how prudent that behaviour is.”

But the oil and gas industry remains hell-bent on government action, not just on labour cost but other productivity issues such as the removal of perceived duplication in environmental approval processes.

Exxon Mobil vice-president Mark Nolan said Australia was an attractive place to invest in but also had ”significant disadvantages in labour costs and labour productivity. I think the government has a role to help us manage labour relations, there’s no question about that, it’s a significant factor. As we consider projects around the world, those sorts of issues drive our decisions.”

Exxon Mobil is operating the Scarborough gas field in a $10 billion joint venture with BHP Billiton. Mr Nolan said it remained a ”very challenged” project owing to the dry gas and the shallow, broad nature of the field, requiring expensive horizontal drilling.

Other oil and gas industry leaders, including Chevron managing director Roy Krzywosinski and APPEA chief executive David Byers, warned that government inaction on rising costs could cost the economy $100 billion in projects.

And Royal Dutch Shell global chief executive Peter Voser told the conference ”the policy decisions made today will have a profound effect on your economy and society”.

The commentary prompted Infrastructure Minister Anthony Albanese to brand the energy industry as ”self-interested”.

But opposition resources spokesman Ian Macfarlane said Mr Albanese was ”on his own” if he thought Australian wages were internationally competitive.

”A cook on an oil rig gets paid more than Anthony Albanese,” Mr Macfarlane said. ”If it’s costing twice as much to do a project here as it is somewhere else in the world, we’re not being competitive.”

The government has also come under pressure from the manufacturing sector, which is concerned that soaring gas prices and a looming east coast gas crisis will exacerbate widespread job losses.

Amid claims from Manufacturing Australia that 200,000 jobs were at risk, Mr Gray outlined a ”comprehensive” government analysis of the domestic gas market.

But the government did not agree that a domestic gas reservation would keep gas prices down or put more gas into the local market. ”In our view it would create uncertainty and deter investment in new gas supply,” Mr Gray said

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Henry Sapiecha

fine gold line

BHP SELLS RISKY NEW GUINEA GOLD MINE HOLDINGS

Friday, May 17th, 2013
GOLD IN BLACK COUNTRY IS RISKY SAYS BHP & QUITS NG STAKE
Guinea

BHP Billiton plans to sell its one-third stake of the alumina bauxite project in Guinea to Dubai Aluminum and Abu Dhabi state-owned Mubadala, reported Barry Fitzgerald Thursday for the Australian.

The original plan was for BHP to sell its stake to Canada’s Global Alumina Corporation.

BHP’s exit from the project – once estimated at $5.2 billion – fits neatly into CEO Andrew Mackenzie’s plan to reduce operations in ‘riskier’ locations:

“Our decision to focus on the OECD was deliberate and, I would argue, increasingly looks like the right call.”

Henry Sapiecha

USING CORN STARCH TO EXTRACT GOLD FROM THE ORE IS A HUGE CLAIM

Friday, May 17th, 2013

EXTRACTING GOLD FROM THE ORE WITHOUT THE USE OF CYANIDE

Researchers at Northwestern University in Illinois have discovered a new method for mining gold which is inexpensive and non-toxic, reports Phys.org.

Instead of cyanide, the procedure uses cornstarch to separate gold from raw materials. It can also be used on consumer electronic waste to recover the gold from them.

The research team found the method by accident during laboratory testing.

A university spokesman said the elimination of poisonous cyanide from the gold industry is of utmost environmental importance.

Most gold miners currently use the toxic leaching process to isolate the yellow metal from the ore.

rockpicker1 Comments

Why not use Thio-Red? it is non toxic, cheap and is American made.

Paul Tat Comments
Sugars are known reducers of precious metals and even of the base metals (even bad Cr 6) so what is all this fuss about precipitating potassium-aurobromate from solution? Ok Is selective, So What? How do you get the “green gold” from ore to solution? Ok with bromic acid. So where is the new gimmick?

Henry Sapiecha

Gas explosion in Sichuan coal mine in China kills 28, local governor announces suspension of mining

Tuesday, May 14th, 2013

Twenty-eight Chinese coal miners were killed on Saturday afternoon,

reports Xinhua.

 

The Taozigou coal mine is unauthorized according to officials. It’s located in China’s Sichuan Province, Luxian County and in the city of Luzhou.

At the time of the accident there were 108 miners working underground, many of whom had to be rescued.

The deputy governor of Sichuan, Liu Jie, said the mine should be shut down and all coal mining in the province should be suspended pending a review.

He added there will be an investigation and the owners will be held accountable

Henry Sapiecha

WYOMING COAL MINES SHOW MASSIVE GROWTH OVER A NUMBER OF YEARS AS SEEN IN THESE GOOGLE TIME LAPSE PHOTOGRAPHS

Tuesday, May 14th, 2013

Timelapse video shows massive Wyoming coal mining growth

Google has released some amazing new time-lapse images of  changes on the earth’s surface between 1984 and 2012.

The project, called Timelapse, was a joint project of Time, NASA and the United States Geological Survey using satellite images from the Landsat Program.

According to a report by the US Energy Information Administration coal production data for 2012 show that 9 out of the top 10 producing coal mines in the United States are located in Wyoming.

Coal mining in the country is so concentrated in the state that the top two producing mines in Wyoming alone account for 20% of total US coal production by tonnage.

Collectively, the top 10 mines accounted for 38% of total US coal production by tonnage in 2012WYOMIMG

Henry Sapiecha

LATIN AMERICAN MINERALS BOSS MILES RIDEOUT SPEAKS IN THIS VIDEO PRESENTATION

Tuesday, May 14th, 2013
Latin American Minerals Inc. granted stock options. Apr 30, 2013
0.03 (21.74%)Mkt Cap: 14 M USD LAT:TSX-V

Cu Diamond Au Pb Nb REE Ag Zn

Argentina, Paraguay

Management:

Miles Rideout, President & CEO

DUGG DOWN UNDER GUYS UNDERWEAR GEAR BANNER HS IMAGES  (17)

CEO Clips

Henry Sapiecha

STORNOWAY CEO GIVES UPDATE ON QUEBEC DIAMONDS IN THE VIDEO PRESENTATION

Tuesday, May 14th, 2013

Stornoway Diamond Corp.Stornoway Diamond Corp. provided a company update. May 07, 2013

Diamonds in Canada

Investment Highlights:

→ Developing Quebec’s first diamond mine.

→ On track to becoming a 2 million carat per year producer, starting in late 2015.

Management: Matt Manson, President & CEO

Watch this video presentation below by Stornaway

Henry Sapiecha

THE USA MANUFACTURING SECTOR DEPEND HEAVILY ON THE COUNTRY’S MINERAL WEALTH AS SHOWN IN THIS INFOGRAPHIC

Tuesday, May 14th, 2013

AMERICAN MANUFACTURING AND MINERAL SUPPLIES ARE JOINED AT THER HIP

Information on the bond between American manufacturing & minerals can be seen here referring to the info on this info graphic at this site > www.mineralsmakelife.org

Henry Sapiecha

ILLEGAL MINING OF RARE EARTH MINERALS IN CHINA KEEPS WORLD PRICES DOWN

Sunday, May 5th, 2013

LOW WORLD PRICES RARE EARTH MINERALS- THE CHINA CONNECTION

Illegal exploitation, production and smuggling of rare earths in China have added to the supply glut, depressing global prices, according to China’s vice-minister of industry, Su Bo.

China dominates the global market, producing over 90% of total rare earth metals.

In 2010 the Chinese government launched a campaign to curb illegal production ending operations for hundreds of unlicensed rare earth miners, processors and traders, and “leading to a fourfold spike in export prices and complaints from buyers in Europe, Japan and the United States.”

Prices peaked in 2011 but have since fallen alongside sluggish global economic growth.

Su says that their is much work to be done to diminish a black market that has traded roughly 40,000 tonnes of rare earths in recent years.

Henry Sapiecha

WORLDS LARGEST COMMODITY TRADER GLENCORE

Sunday, May 5th, 2013

GLENCORE & XSTRATA ARE THE LARGEST COMMODITIES TRADERS

Glencore completed its takeover of Xstrata on Thursday, becoming the world’s fourth largest mining company and the world’s largest commodities trader.

The announcement comes after 15 months of difficult negotiations and lengthy antitrust reviews.

The merger adds coal, copper, zinc and lead mines to Glencore’s trade empire,  which will now include more than 90 commodities “from copper to barley and from oil to vanadium.”

The newly formed company currently employs 190,000 people across 50 countries but CEO Ivan Glasenberg notified managers today that job cuts are coming.

“By restructuring and refocusing, we will be better able to take advantage of the opportunities that will inevitably present themselves over the coming years to the benefit of all…those who will be affected within the various management structures will be notified directly and as soon as practicable.”

Glencore’s share price jumped up 4.4% to 328 pence in London trading Thursday.

Henry Sapiecha

 

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