There was some upbeat talk about new projects in Mozambique and Mongolia, but reporters and investors homed in on CEO Tom Albanese's comment that "markets are somewhat weaker than they were 6 months ago."
Copper Mining News
If you haven’t paid much attention to global markets this week, here’s what you missed…fears that the global economy is dangerously close to a recession due to the financial crisis in the eurozone and flatlining growth in the U.S. sent assets of all shapes and sizes into a tailspin.
British Telecom on Friday had to talk down the value of its 75 million miles of copper cables criss-crossing the United Kingdom after an analyst at investment bank Investec calculated that the scrap value of the copper is £50 billion ($77 billion) at today's prices – almost $50 billion more than BT's market cap.
Bloomberg reports the London Metal Exchange which handles some 80% of global trade in industrial metals futures, told members it may get a takeover offer after multiple approaches from potential bidders. The 134-year-old exchange is owned by the trading houses and banks like Barclays and JP Morgan that trade on the market which keeps fees low. Despite talk of an $1.2 billion offer as far back as 2008, it is unclear how receptive they would be to selling out after a senior executive of the exchange told Reuters in March it had no plans to change its independent status despite increasing competition, particularly in Asia.
The election of Michael Sata to president of Zambia is not sitting well with copper miners who fear the 73-year-old, known as "King Cobra" for his aggressive style, will pick the pockets of mining companies, Bloomberg reports. Sata swept to power this week on a promise to create jobs and to extract more money from the mining industry in Zambia, Africa's largest copper producer. His win on Sept. 20 ends two decades of rule by the Movement for Multiparty Democracy.
As commodities prices including precious metals were plummetting Thursday on more bad economic news, the Premier of British Columbia provided a glimmer of hope for the BC mining industry. In unveiling the province's job-creation strategy, Clark said the government plans to capitalize on high demand for minerals, especially in Asia, by opening up eight new mines in the next four years and expanding nine more by 2015.
December gold suffered another day of steep losses, dropping $82 an ounce, or 4.7%, to $1,659.50 in New York in noon trade on Friday, as investors were forced to raise cash to cover losses suffered on global stock markets this week. Copper extended its sharp declines on the London Metal Exchange falling as much as 7.3% to $7,115.75 a metric ton. Prices declined for a sixth day in a row losing 14% this week and have now slumped 26% from the record high of $10,190 set in February. Silver was hardest hit on Friday, plummeting 11.2% to $32.48. One metals analyst summed up the day this way: “We’re in a downward spiral, and no one knows when it’s going to end."
Ivanhoe Mines to issue statement on Monday, September 26, on challenge to unauthorized remarks about Oyu Tolgoi project
SINGAPORE, SINGAPORE--(Marketwire - Sept. 23, 2011) - Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) founder and Chief Executive Officer Robert Friedland said today that the company will issue a statement on Monday, September 26, in response to what it considers to be unauthorized and incomplete information concerning the Oyu Tolgoi Project by members of Rio Tinto's senior management this week.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 23, 2011) - Dorato Resources Inc. ("Dorato" or the "Company") (TSX VENTURE:DRI)(OTCQX:DRIFF)(FRANKFURT:DO5) announces receipt, from Minera Afrodita, of final drill results from the first phase of drilling at the northern-most anomaly at Cobrecon. Results indicate the presence of a large and pervasive mineralized porphyry system, drill-tested over an area of 2km x 1km (Figure 1). Grades can be considered sub-economic at 0.1% to 0.2% copper, but the presence of such a large and pervasive mineralized system is encouraging for the two remaining drill targets (Cobrecon Sur and Cobrecon Este), which are defined by larger, more intense surface geochemical anomalies. Drilling on the remainder of the targets is subject to Minera Afrodita's permitting process.
Copper futures have hit their lowest mark since 2008 after a China factory index signalling contraction fuelled rumours that demand for metal will fall amid signs of economic slowdown. The commodity fell 7.32% to $3.49 per pound on
Peru, a top global producer of precious and base metals, expects $42 billion in mining investments over the next decade and Congress has approved new legislation that will see miners pay royalties of between 1% and 12% of their operating profits. Author:
Sept. 23 (Bloomberg) -- Copper dropped to the lowest in more than a year while nickel and tin plunged as the deepening European debt crisis and threat of a U.S. recession spurred investor concerns that demand for raw materials will slow. Copper for
The Mongolian Cabinet Office would ask Canadian and Australian mining companies to renegotiate the Oyu Tolgoi copper-gold mining agreement, local media reported Thursday. Chimed Khurelbaatar, chief of the Cabinet Office of Mongolia, was assigned to
Canadian Press reported Thursday on the merger of US Gold Corp. (TSX:UXG) and Minera Andes Inc. (TSX:MAI) to form a new corporate entity called McEwen Mining.
Copper, coal and other industrial commodities can be great tools for predicting economic prospects and right now they’re offering a gloomy outlook, but a closer analysis shows a glimmer of hope as the world struggles to avoid recession.
Xstrata Copper will invest $1.47-billion in two copper mines in Peru, with the goal of increasing production in the country by 60% in 2012, according to a company presentation obtained by Reuters last week. Mining Weekly reports:
Teck Resources Limited (NYSE: TCK) will invest $210 million at its Trail Operations to increase its capacity to recycle end-of-life electronic waste and $475 million in a mill modernization project at Highland Valley Copper. Both operations are located in British Columbia. The No. 4 Furnace Project at Trail Operations includes the construction of a new slag fuming furnace and settling furnace that will integrate into the existing lead smelting process. Construction on the project will begin in 2012 with completion scheduled for 2014.
TORONTO, ONTARIO--(Marketwire - Sept. 22, 2011) - Franco-Nevada Corporation (TSX:FNV)(NYSE:FNV) ("Franco-Nevada") and Lumina Royalty Corp. ("Lumina Royalty") have entered into an arrangement agreement whereby Franco-Nevada will acquire all of the common shares of Lumina Royalty by way of a court approved plan of arrangement for US$60 million in Franco-Nevada common shares and US$6 million in listed Franco-Nevada warrants ((TSX:FNV.WT.A) with a C$75.00 exercise price, expiring June 16, 2017). Under the arrangement, Lumina Royalty shareholders will receive 0.03487 Franco-Nevada common shares and 0.01917 Franco-Nevada warrants for each Lumina Royalty common share held.
World markets tumbled overnight as bad news mounts and investors turn pessimistic. The Hang Seng fell 4.95%, the S&P ASX was down 2.63% and the Shanghai composite index is down -2.78%. Even gold, the traditional fear trade, was off three percent and trading at $1,739.
Copper tumbled into a so-called bear market, slumping for a fifth day, after the Federal Reserve said that the U.S. economy faces “significant downside risks,” eroding prospects for industrial-metals demand.
Demand growth for base metals in China is exceeding its GDP growth rate by 10 percent, and will keep growing, Fan Shunke, the president of China Non-ferrous Techno-Economic Research Institute said on Wednesday.
Dow Jones, via Fox News, reports that BNP Paibas analysts are cutting their outlook for base metal prices.
News that the Mongolian government is rethinking a 2009 deal that gave Ivanhoe Mines and Rio Tinto a 66% stake in the massive Oyu Tolgoi gold and copper project has sent the shares of Ivanhoe down more than 9.5% in Toronto on Wednesday afternoon, while Rio's ADRs gave up over 6% in New York trade. The bad news appears to have led to a bust-up between the two companies, with Ivanhoe founder and CEO Robert Friedland saying on Wednesday Rio's senior management has been making "unauthorized and incomplete" statements about Oyu Tolgoi and that he will take the matter up with the world's number three miner. Ivanhoe is closely tied to Mongolia where it also controls SouthGobi, a producing coal mine. SouthGobi plummeted 10% on Wednesday.
Each day of the strike at Grasberg costs Freeport-McMoran 3 million pounds of copper and 5 thousand ounces of gold
Freeport-McMoran Copper & Gold reported on Wednesday that the strike at its Grasberg operations in Papua, Indonesia, which began Sept. 15, is costing the company about 3 million pounds of copper and 5 thousand ounces of gold for each day of the work stoppage. The company says that it is negotiating a two-year extension of its bi-annual collective labour agreement, which is scheduled for renewal on September 30, 2011.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2011) - Empire Mining Corporation (TSX VENTURE:EPC) ("Empire") is pleased to announce that an IP/resistivity survey has commenced at the Karapinar copper project to seek extensions to the chalcocite enrichment blanket identified in recent drilling, and to target higher grade primary porphyry and skarn mineralization to the north of the previously drilled area. A total of eight line kilometres are planned in four north-south profiles, each two kilometres long. Dipole-dipole surveying will be used with a six dipole array, with spacing of 200 metres. Empire plans to drill test any targets generated.