Ore and More Top Ten

1. AFP: Rio wants to work with spurned Chinalco: chief

Rio Tinto chief Tom Albanese hopes to work with Chinalco in the resolution of the case against executive Stern Hu. The Rio Tinto employee was arrested in China shortly after the two companies’ $19.5 billion merger collapsed in June.

2. Reuters India: Orissa orders 69 mines to stop operations

Orissa halts 69 iron ore mines after operators fail to submit their approvals to the Indian Bureau of Mines. The state is undergoing a phased inspection of its approximately 600 mines following allegations of un-licensed mining.

3. The Chicago Tribune: Lawmakers oppose Michigan anti-mining ballot plan

State lawmakers supporting Michigan’s Upper Peninsula criticize a proposed ballot proposal banning some types of mining. The group is concerned of the bans impact on the region’s economy. The proposed ballot would ban uranium mining and restrict sulfide mining.

4. The Age: BC Iron in trading halt

BC Iron’s trading halt expected to last until Thursday; iron ore explorer to make announcement relating to financing and off-take deals. Trial mining recently commenced at the company’s Nullagine project.

5. Bloomberg.com: Mozambique Mine Investment Surged Through 2004-08, Noticias Says

A Mozambique-based newspaper reports the county’s mining sector investment has increased eightfold between 2004 and 2008. The daily Noticias said direct investment grew to $804 million in 2008, with mining licenses issues increased from 247 to 821.

6. Press Trust of India: AP govt, NMDC to explore iron ore, gold reserves

National Mineral Development Corporation and the Andhra Pradesh government prepare to sign a memorandum of understanding concerning a joint exploration for iron ore and gold. The entities would bear equal weight of the cost of the exploration.

7. Reuters: Sundance raises cash for Cameroon iron plan

Sundance Resources to advance its Mbalam iron ore project in Cameroon. The Australian miner has raised nearly $79 million in a 567 million shares issue. Sundance submitted its feasibility study to the Cameroonian government last month.

8. The Australian: Mining blasts Orica through crisis

Explosives maker Orica focuses business on mining services in efforts to ride out the financial crisis. Orica announced its seventh year of full-year profits and are preparing for future expansions.

9. Economic Times: Tata Steel partners NML; to invest 300 mm Canadian dollar

Tata Steel agrees to invest 300 million Canadian dollars in its joint venture agreement with New Millennium Corp. Tata will have an 80% equity stake in the North American iron ore development.

10. Anchorage Daily News: Alaska gold production highest since 1916’s rush

Alaska’s 2008 gold production tops 800,000 ounces, the highest amount since 1916. Record high gold prices have encouraged miner to invest capital towards extending their life spans. Gold production in Alaska’s major mines rose 11% last year.

1. The Australian: Rio Tinto to dig deep: capital expenditure

Rio Tinto more than doubles its planned 2010 capital expenditure budget. The Australian miner raised its forecast from $2.5 billion to between $5-$6 billion, and are claiming increased mineral demand and assets sales have left the company more financially sound.

2. The Associated Press: Mining stream buffer rule could be ready by 2011

The Office of Surface Mining Reclamation and Enforcement beings replacing Bush-era surface mining regulations: changes expected to take at least a year. The Obama administration is seeking to return towards earlier regulations that required operators from dumping mining-related material within 100 feet of streams.

3. Bloomberg.com: Vale Sells $1 Billion of 30-Year Bonds in Overseas Markets

Vale sells bonds to boost investments: offers $1 billion in 30-year bonds. It is the Vale’s second overseas note offering this year. The miner seeks to increase investments 43% next year, with plans to expand its iron ore, nickel and potassium operations.

4. AFP: Rio Tinto hints at different iron prices for China

Rio Tinto considers allowing a separate iron ore pricing mechanism for China than in the rest of the world. The world’s largest producers failed to reach a 2009 benchmark price for iron ore with Chinese steel mills.

5. Reuters: Peru mine killings work of drug trade: businessmen

Peru’s business leaders claim drug traffickers attacked a copper project in order to keep the area undeveloped and open for drug production and trade. Three mine employees were killed with gunman invaded the Rio Blanco copper project and then set the complex ablaze. The project is owned by China’s Zijin Mining Group.

6. The Associated Press: Cliffs Natural Resources has steep 3Q profit fall

Cliffs Natural Resources reports third-quarter net income of $58.8 million, nearly two-thirds lower than in the same quarter last year.  Both profit and revenue fell sharply due to decreased North American business.

7. Bloomberg.com: BHP Agrees to Buy Iron Ore Explorer for A$204 Million (Update 3)

BHP Billiton beats out Chinese rival for the acquisition of United Minerals Corp. BHP agreed to buy the Australian iron ore explorer at 43% more than United’s last traded share price. The A$204 million purchase will give BHP access to 158 million metric tons of iron ore located next to its Pilbara based operations.

8. The Associated Press: Ariz. Governor opposes halt on new mining claims

Arizona Governor Jan Brewer appeals to Government officials to lift a ban on filing mining claims on nearly 1 million acres of federal land.  The ban was enacted in July, and prohibits filing claims for two years while a study on the environmental effects takes place.

9. Reuters India: BHP says may do more deals like Rio iron ore jv

BHP Billiton is keen for future acquisitions similar to its current joint venture proposal with Rio Tinto. The Australian miner says it is on the continuous lookout for partnerships consisting of large developments that are expandable and export oriented.

10.  Bloomberg.com: Tata Power May Buy Thermal Coal From Riversdale Mine (Update 2)

India’s largest, private electricity generator considers purchasing Mozambique mined coal. Tata Power Co. is looking to double its generation capacity in the next seven years. Australia based Riversdale Mining and Tata have approved the joint development of a $270 million coal mine in Mozambique with production scheduled to begin next year.

1. Bloomberg.com: Fortescue Approves A$360 Million Ore Mine Expansion (Update 1)

Fortescue Metals Group’s $326 million expansion of its Christmas Creek mine includes plans for a 31-mile railroad from the site’s mine to an ore processing plant. The Australian miner said the project will be funded internally and is expected to increase the mine’s output to 55 million metric tons a year.

2. Reuters: Chile strikes resume talks with BHP Billiton

BHP Billiton officials meet with striking workers at Chile’s Spence copper mine: management seeks an end to the 10-day strike. The workers are demanding higher wages, and are holding out for new contracts. The government is helping facilitate the discussions.

3. The Associated Press: Deal struck on Great Lakes ship pollution

The Lake Carriers’ Association requests for at least partial exemption from proposed federal regulation aimed at reducing air pollution. Negotiators reached a deal Tuesday that exempts 13 ships that haul iron ore and coal across the Great Lakes. The Association agreed to ground some of its aging ships and use more environmentally friendly fuel.

4. Australia Broadcasting Corporation: Coal managers welcome rail link commitment

Queensland Rail agrees to build a 69-kilometer rail link between Bowen Basin coalfields and the Abbot Point coal terminal. Many of the area’s coal producers in the area promoted the billion-dollar project for increasing the area’s development opportunities.

5. United Press International: New Mexico extends uranium mining

New Mexico’s state government approves Uranium Resources Inc. to renew its exploration permit for uranium. The company will be allowed to drill up to ten holes to examine the feasibility of a mining operation.  The site is located in Northern New Mexico.

6. The Associated Press: US mining company says mine seized in Venezuela

Gold Reserves Inc. claims the Venezuelan government has seized control of its gold mine. Government officials took control of the mine on Monday and have yet to say if the company would be compensated for the loss. A few days before the seizure, Gold Reserve filed international arbitration proceedings against Venezuela concerning other mining projects.

7. Bloomberg.com: Uranium to Exceed $50 on Olympic Dam Slowdown, Macquarie Says

Olympic Dam force majeure expected to increase global uranium prices. Macquarie Bank is expecting uranium to rise above $50 a pound in the coming weeks. BHP Billiton expects full production to resume by the end of March, following an accident which shut down the mine’s main haulage shaft.

8. Reuters: BHP’s Argus says iron-ore JV with Rio on track

BHP Billiton’s chairman gives the proposed iron ore joint venture with Rio Tinto a 50-50 chance of being approved. Don Argus told reporters the venture is on track.

9. The Associated Press: Massey reports lower shipments of coking coal

Coking coal revenue per ton and production levels remains on the decline for U.S. based Massey Energy. Coking coal shipments made up less than a third of the companies third-quarter delivery. However, the company also reported increased cash holdings, benefits from the market’s rebounding demand.

10. The Charleston Gazette: Massey begins blasting on Coal River Mountain

West Virginia’s Governor rejects last minute request to halt mining operations; blasting begins at Massey’s Bee Tree Surface Mine. Opponents promoted the area as a potential wind facility, making the site the center of multiple anti-mining related conflicts.

1. Bloomberg.com: BHP, Rio Iron Ore Venture Scraps Joint Marketing Plan (Update 2)

Rio Tinto and BHP Billiton abandon plans to jointly market iron ore. The Australian miners are focusing its joint venture to production and development. The proposed plan to combine the miners’ Western Australian iron ore assets is expected to save more than $10 billion.

2. Reuters: Peru miners lukewarm on strike, eyes on Congress

Miners use its industry 48-hour strike as an appeal to Congress for improved worker’s benefits. Peru’s miners have demanded the government lower the age for retirement and lift caps on profit sharing.

3. The Associated Press: EPA plans to veto surface mining permit in W.Va

The Environmental Protection Agency plans to revoke a permit issued for Mingo Logan Coal’s Spruce No. 1 mine. The permit was issued in 2007 and the mine would have been the largest authorized mountaintop removal operation in Appalachia. The EPA has not used its authority to review a previously permitted project since 1972.

4. Bloomberg.com: Fortescue May Seek Ore-Blending Venture with Vale (Update 1)

Fortescue Metals Group considering blending its ore with that of Brazil’s Vale. Brazil has a declining supply of lump ore leading Fortescue officials to suggest a possible pairing in the future.  The companies have not held talks about a venture.

5. The Hindu Business Line: Govt allows Coal India to hike prices by 11%

Coal India’s prices allowed to increase by 11% on average as of October 16. The Government allowed the decision to help the company end the year with positive profits. The highest price rises will affect Coal India’s subsidiaries Bharat Coking Caol and Eastern Coalfields.

6. The Age: BHP faces $360m loss from Olympic Dam

BHP Billiton estimates it will take more than three months to restore production at its Olympic Dam copper, uranium, and gold mine. The operation’s main haulage shaft was damaged in early October. Ore haulage has been reduced to 25% of its normal capacity, the miner is expected to face revenue losses around $330 million.

7. The Associated Press: Caterpillar 3Q profit drops 53 pct, sees recovery

Caterpillar looks to its Asian customers for increased sales, company hesitantly optimistic for a recovery. The U.S. based company generates about 70% of its sales overseas. Slow sales resulted in a 53% drop in third-quarter profits.

8. Brisbane Times: BHP Billiton iron ore output soars to record

BHP Billiton sets a new iron ore production record for the September quarter. Production increased 1% to 30 million tonnes from last year.

9. The Charleston Gazette: Mining protesters arrested outside governor’s office

Seven mountaintop removal protesters arrested while trying to persuade Governor Joe Manchin to stop Massey Energy mining operations in the Coal River Valley. The protestors refused to leave the Governors reception area at the close of the business day.

10. Reuters: Brazil gov’t studying iron ore export tax: source

An unnamed government sources reports Brazil is considering adopting an export tax on iron ore. There has been recent tension between the government and miner Vale.

1. The Associated Press: Guinea signs $7B mining deal with Chinese firm

Chinese company signs a $7 billion agreement to become a strategic partner in Guinea’s mining projects. Guinea’s military government did not disclose the company. America’s Guinea Bauxite Company and Russia’s RUSAL are competing for mining developments within the country.

2. Reuters: UPDATE 1- Consolidated Thompson offers to buy Wabush Mines

Consolidated Thompson Iron Mines offers to buy out U.S. Steel Canada, ArcelorMittal and Cliffs Natural Resources for a 100% stake of the Wabush Mines. Wabush Mines operates iron ore mining and pellet facilities across Canada. Consolidated Thompson is offering $120 million for the buy-out.

3. Bloomberg.com: BHP-Rio Venture Should Be Blocked, World Steel Says (Update 1)

The World Steel Association lobbies the European Commission to block the joining of Rio Tinto and BHP Billiton’s Western Australian operations. The group includes 19 of the biggest steelmakers and produces nearly 85% of global output.

4. The Associated Press: Raucous pro-coal crowds pack mining hearings

U.S. coal miners fear job losses, thousands of miners argue against environmentalists at public hearings.  Hearings were held in West Virginia and are scheduled for Ohio, Pennsylvania, and Virginia. The miners spoke about the merits of coal and were trying to convince the administration to allow federal permits necessary to blast away mountains.

5. Reuters India: China’s Shandong makes big but deep iron ore find

A Chinese news agency reports an iron ore discovery in the eastern province of Shandong. The deposit has confirmed iron ore reserves of about 1 billion tonnes and estimate reserves between five and eight billion tonnes. The ore body lies between 1,000-2,500 meters underground, making the deposit prohibitively expensive to develop.

6. AFP: Xstrata announces sale of stake in Chilean mine

Barrick Gold Corporation to acquire Xstrata’s 70% stake in El Morro SCM for $465 million. The transaction should be completed by the end of January 2010. The mine is located in northern Chile.

7. Economic Times: Essar sweetens Aussie coal miner bid

India’s Essar Minerals and Jindal Steel & Power seek the acquisition of Rocklands Richfield, an Australian coal and coke producer.  Jindal’s earlier bid of 42 cents a share was overshadowed by Essar’s comeback bid of 50 cents. The offer values the company near A$144 million. Jindal officials declined to comment the company was planning to enter a bidding race.

8. AFP: China’s Yanzhou to resubmit Felix offer again

Yanzhou resubmits its takeover offer for Felix on Monday. The Chinese coal-miner submitted a $3.2 billion offer for the Australian miner last month. Australia’s Foreign Investment Review Board has taken the stance that it prefers investments below 50% for new ventures.

9. Reuters: UK government criticizes Vedanta on bauxite mine

Survival International criticizes London-listed Vedanta for failing to consult the Dongria Kondh people when developing its proposed for a bauxite mine in India. India’s Supreme Court approved the project and the company has said that the local people were happy with the plans.

10. The Australian: Rio Tinto unit soars on coal rebound: Coal & Allied

Coal & Allied reports its best quarterly production in nearly three years. The Rio Tinto coal subsidiary’s production rose nearly 12% from the previous quarter. Coal & Allied officials claim the increased production was due to steady demand and higher quality product in their coal seams.

1. Reuters: Zimbabwe parliament to weigh mine sector law reform

Zimbabwe’s new session of parliament expected to consider amendments to the Mines and Minerals Act. An earlier draft of the act would have given locals control of mining operations owned by foreign companies. Analysts say investors will be waiting to see how the new laws are applied in practice.

2. The Associated Press: EPA to delay 79 coal mining permits in 4 states

President Obama’s administration has delayed 79 coal-mining permits that would allow operators to bury intermittent steams. The EPA is pushing miners to build smaller valley fills to dispose of debris as to not violate the clean water act.

3. The Australian: Centrex Metals iron ore berth cleared

Centrex Metals advances its goal to become South Australia’s leading iron ore miner. The state’s government has approved the miner’s proposed $40 million iron ore berth on the Eyre Peninsula. The berth is expected to have a capacity of 1.6 million tonnes a year. Centrex is also awaiting approval for a deal with Chinese Wuhan Iron & Steel Company.

4. Bloomberg.com: Fortescue, Seeking Funds From China, Drops a 10^th Day (Update 2)

Investor fears of inadequate funding causes Fortescue Metal Group’s stock to fall its tenth consecutive day. The decline is the miner’s longest losing streak and has resulted in a 19% drop. The losing streak began shortly before Fortescue missed a self-imposed deadline to secure funding with China Iron & Steel Association and Baosteel.

5. The Australian: Bidding war for iron ore hopeful Polaris Metals

Singapore-based Lion-Asia increases the bidding war for Australia’s Polaris Metals, offers $105.5 million for the iron ore junior. Lion officials believe its cash bid is a significant premium to Mineral Resources’ bid.

6. The Associated Press: Ecuador government seeks end to Indian protest

Ecuador’s government considers altering mining and water laws to pacify country’s Indians, looks for an end to week-long protests. Indian leaders were in lengthy talks with the government, but have yet to sign an accord to end the roadblocks. The leaders object to mining without their consent.

7. Guardian: Chinese steel giant bids for stake in Anglo’s Minas Rio iron ore mine

China’s Baosteel proposes an £1 billion pound, 30% stake in Anglo American’s Minas Rio iron ore mine. Anglo acquired the Brazilian mine last year for £3.7 billion pounds. The miner has shown interest in forging a partnership to help develop the Minas Rio while rejecting a merger approach from Xstrata in June.

8. The Associated Press: Kennecott Utah Copper discovers molybdenum deposit

Kennecott Utah Copper announces an estimated 500 million ton discovery of molybdenum near its Bingham Canyon Mine: feasibility of extraction still unknown. Kennecott’s parent company Rio Tinto has expressed interest in building a facility to process and refine molybdenum near the Utah mine.

9. New Zealand Herald: Licence lets miner get close to Kahurangi

A Fortescue Metals Group subsidiary has been granted a prospecting permit on New Zealand’s upper South island in an area bordering the Kahurangi national park. The license allows the miner to search for 23 minerals, but mining interest is primarily focused on iron ore and coal. Fortescue will have two years to complete its preliminary studies.

10. Reuters: Australia’s P. Hedland iron ore shipments up in Sept

September iron ore shipments from Australia’s Port Hedland rise slightly over August levels. The port, which is used by BHP Billiton and Fortescue Metals Group, reported 14.4 million tonnes in September compared to 14.2 million tonnes in August.

1. Reuters: Chavez proposes Africa-South America mining firm

Chavez calls for the creation of a multi-state corporation to help manage Africa and South America’s natural resources. Venezuela would lead the organization.  Chavez claims these nations remain poor, despite their rich natural resources, due to exploitation.

2. Bloomberg.com: Fortescue, Facing Deadline, Continues Funding Talks (Update 3)

Fortescue Metals Group continues finance negotiations with Chinese lenders through today’s self-imposed deadline. September 30^th was set as the target for securing $6 billion in project funding.

3. AFP: S.African mine discovers 507 carat white diamond

Petra Diamonds parades its 507-carat white diamond discovery. The diamond came from the Cullinan mine in South Africa. Initial examinations tout the diamond as one of the largest high-quality round diamonds ever found.

4. WA Today: Monadelphous wins $100m in ore contracts

Monadelphous Group secures two three-year maintenance service contracts with Rio Tinto. The engineering firm will be responsible for shutdown and maintenance services at Rio Tinto’s Pilbara region mines. The contracts are worth around $100 million in total.

5. Reuters: Indonesia unlikely to pass new mining rules in 2009

Indonesia continues to draft new regulations for a mining and coal law passed in December 2008. A mining official reported Monday that work on the regulations would likely extend into next year. Analysts worry that the uncertainty surrounding the regulations, which were expected to be completed by October, could scare off possible foreign investors.

6. Bloomberg.com: China, Korea ‘Good Fight’ for Shipyards May Hit Rates (Update 1)

China and South Korean attempt to safeguard shipyards during economic turmoil. Analysts worry the protections will raise the number of vessels in service, in turn slowing recovery in freight rates and vessel prices. China vows to grow its shipbuilding industry to become the largest shipbuilding nation by 2015.

7. WA Today: Cazaly fails to gain Rio project control

Western Australia’s mining warden confirms the validity of the Rio Tinto and partners’ joint venture’s tenure on the Rhodes Ridge deposit. Cazaly Resources Ltd has petitioned against Rio Tinto’s claim due to the inactivity on the land for the past 35 years.

8. Australia Broadcasting Corporation: Mining industry sounds off against emissions trading scheme

Miners join force against Australia’s proposed emissions trading scheme. Anglo America says the scheme will cost the coal industry nearly $14 billion while hurting government royalties. Australian miners are concerned that their global competiveness would decrease, as overseas miners would pay nothing.

9. The Associated Press: Ecuador Indian group protests water, mining laws

Ecuadorian Indians protest new water, mining and oil laws. The Confederation of Indigenous Nationalities of Ecuador dropped support for Ecuador’s current President Rafael Correa when he refused to grant Indians the right to veto mining concessions on their lands in 2008.

10. The Associated Press: Venezuela exploring uranium deposits with Russia

Venezuela touts Russia and Iran’s support to develop its uranium industry. Venezuela will reportedly use the uranium for peaceful purposes, including nuclear energy and medicinal purposes. Russia officials have been slow to publicly acknowledge the pairing; saying any joint mining of uranium is still a long way off.

1. The Australian: Iron ore talks due despite China deadlock

Benchmark iron ore pricing discussions skip 2009 and head straight into 2010: talks scheduled to begin next month. China’s largest steelmaker Baosteel is expected to lead the upcoming negotiations rather than this year’s China Iron and Steel Association that failed to deliver 2009 benchmark prices.

2. The Associated Press: Cliffs boosts expectation for iron ore, coal sales

U.S based Cliffs Natural Resources raises its predicted yearly iron ore and coal sales. Iron ore expectant sales were raised from 13-14 million up to 16 million, while new coal sales estimates hover near 17 million, up from 15 million.

3. Reuters: UPDATE 1- Chinalco says still keen on overseas deals

Failed Rio Tinto deal has yet to frighten Chinalco from seeking overseas acquisitions. The Chinese metals conglomerate has switched its acquisition focus to metals such as aluminum and copper rather than iron ore.

4. Times of India: Probe into ship sink; Ukranian engineer missing

The Mongolian cargo ship the MV Black Rose capsized three nautical miles off Paradip port last Wednsday. The ship was carrying 24,000 tonnes of iron ore fines. India’s Coast Guard rescued the ships crew except for the ship’s chief engineer. The accident is currently under investigation.

5. AFP: Rio Tinto says Vale iron ore mine sale approved

Brazil’s National Defense Council approves Rio Tinto’s $750 million sale of the Corumba iron ore mine to Brazilian miner Vale. Rio Tinto has offloaded nearly $6.6 billion in assets over the past 18 months.

6. Bloomberg.com: Port Hedland Ore Exports Gain 14% as China Buys More (Update 1)

China exports 9.8 million tons of iron ore through Australia’s Port Hedland in August, port exports rise 14% compared to a year earlier. BHP Billiton and Fortescue Metals Group use Port Hedland’s facilities. Total August exports reached 14.2 million, up from 12.5 million last August.

7. Reuters: CORRECTED- Petropavlovsk advances K&S iron ore project

Peter Hambro Mining changes name to Petropavlovsk: announces progress on its K&S iron ore project. The development, located in Russia’s Far East, is expected to be a future supplier of raw materials to China. Petropavlovsk, based in Russia, will manage London-traded Peter Hambro Mining’s assets.

8. WA Today: WA approves Gindalbie-Ansteel project

Gindalbie-AnSteel’s iron ore joint venture waits for Australia’s Federal Environment Minister Peter Garrett’s approval. The Karara operation was granted final approval from the West Australian government. If approved by Garrett, the project will be the first major iron-ore operation in the state’s mid-west.

9. The Candian Press: Russian, American financiers to buy controlling stake in Century Mining

Two firms agree to pool capital to purchase a controlling stake in Century Mining Corp. The funds will be used to restart gold mining operations at the Lamaque underground mine. Kirkland Intertrade Corp. and Gravity Ltd.  plan to each purchase 100 million units of Century, for a combined total of C$20 million.

10. Reuters: Late Indian monsoon to delay iron ore exports

Later than average seasonal rains coupled with extended repair work at the Goa port will cause India’s iron ore exports to resume a month later than usual. Nearly 40% of India’s iron ore exports are shipped through Goa. Exports are expected to resume mid-October.