Golden
Peaks Resources Ltd. Announces Name Change to Reliance Resources Limited
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Source : Press Release, Monday, 09 January 2012
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Golden Peaks Resources Ltd. (TSX: GL) (the
"Company") is pleased to announce that it has changed its name to
Reliance Resources Limited. The shareholders of the Company approved the
name change at the Company's Annual and Special Meeting held on November
17, 2011. Subject to the Toronto Stock Exchange's (the
"Exchange") acceptance, the common shares of the Company will
commence trading on the Exchange under the new name and ticker symbol
"RI" at the opening of business on Thursday, January 12, 2012.
The name change aligns the Company and its operating subsidiaries in three
continents under the Reliance Brand.
Holders of the Company's share and warrant certificates do not need to take
any action as a result of the name change.
The Company has a portfolio of five mineral tenements covering 68,000 acres
on the islands of Sulawesi and Halmahera in East Indonesia. The projects
offer both exploration potential and an existing resource base. All five
projects are adjacent to or along strike from operating gold mines or
identified gold resources with similar geology and structural feature.
Importantly, all projects have been converted to IUP tenements as required
under the new Indonesian Mining Act (2009).
The Company is active on four of its five Indonesian gold projects;
currently drilling on the Tanoyan Gold Project and conducting surface
exploration programs on the Palopo Gold Project, the Kapa Kapa Gold Project
and the Roko Gold Project. All of the projects have easy access via paved
and/or gravel roads and the regional infrastructure is good.
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NALCO to Finalise Coal Supplier for Indonesian Project
in February
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Source : Economic Times, Sunday, 15 January 2012
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State-run NALCO is set to finalise a deal with a miner
by next month for supply of coal to its $ 3.8 billion aluminium-cum-power
project in Indonesia.
"We are looking at a coal mine basically to provide coal to our power
and smelter project there (Indonesia). We need 5 MTPA for 25 years. We have
zeroed in on one of the five proposals and the Board will take a final
decision on it by the end of next month," NALCO CMD B L Bagra told
PTI.
The aluminium major has plans to set up a 5-MTPA aluminium smelter and a
1,250-MW power plant in Indonesia entailing $ 3.8 billion (about Rs 18,000
crore) investment.
The coal mines shortlisted have reserves of about 200 million tonnes (MT),
Bagra said.
Sources said the company has zeroed in on Muara Enim mine in the East
Kalimantan district of Indonesia.
Bagra said five coal miners had responded to NALCO's bid seeking sourcing
of coal for its project, and two of them had fulfilled the criteria.
The five firms included MEC Middle East, Pram Dwi Jaya Muara Enim and Bumi
Muara Prasada.
There is no dearth of financial resources for it as the company has surplus
reserves and there was no debt liability, the CMD said.
"We have Rs 4,500 crore cash balance. There is no debt liability. We
have investment plans lined up for next three-four years. Our investment
requirement for 2012-13 is to the tune of Rs 2,200 crore," he said.
The Indonesia project will be managed through a special purpose vehicle
(SPV), in which the aluminium major will have a controlling stake.
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Indonesia Seeks Higher Royalty from U.S. Mining Firm
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Source : Xinhua, Monday, 16 January 2012
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The government would seek a 3- percent royalty from gold
exploited by U.S.-based gold and copper mining firm Freeport McMoran in
Indonesia's Papua, a senior Indonesian official said Monday.
Energy and Natural Resources Deputy Minister Widjajono Partowidagdo said
that a legal basis to back the government's claim for higher royalties from
Freeport is being drafted at the moment.
"We expect that the legal basis would be completed in the near future
so as to make the negotiation with Freeport settled as soon as
possible," Widjajono said on the sidelines of a hearing session with
lawmakers here.
He said that on the legal basis endorsed by the president, the government
would ask Freeport to raise the royalty of gold it exploited from Papua
from the present 1 percent to 3 percent.
He said that President Susilo Bambang Yudhoyono has set up a team, led by
Coordinating Minister for Economy Hatta Radjasa, to re-negotiate the
Freeport's mineral exploitation contract signed during the administration
of former President Suharto.
The team is tasked to evaluate the clauses of contracts established by
Freeport and the previous administration.
The royalty for Indonesia was considered lower than it is provided by
Freeport in its mining operations in other countries.
Freeport provides 6 percent and 5 percent for copper and gold in other
countries, reports said. In Indonesia, the U.S. mining firm gives 1 percent
for gold and up to 3.5 percent for copper.
Freeport was awarded a contract to exploit copper and gold in Ertsberg
mining site in 1967, valid for 30 years. In 1989, the Suharto
administration awarded another contract for Freeport to exploit gold and
copper deposits in Grasberg mining site, near the initial site of Ertsberg
in Papua. Under the latest contract, the Freeport operation in Indonesia
expires in 2041.
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Central Omega Buys 99% Stake in Itamatra
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Source : M. Tahir Saleh/Bisnis.com, Monday, 16 January
2012
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PT Central Omega Resources - previously named after Duta
Kirana Finance - together with its subsidiary PT Bumi Konawe Abadi bought
2,000 shares of PT Itamatra Nusantara for IDR1.83 billion.
The share purchase will help the company continue with its expansion plan
to trading of mining products, which was kicked off as of 2008. The
DKTF-coded company is a multi-financing company licensed by Bapepam-LK.
Central Omega's President Director Kiki Hamidjaja in his information
disclosure to Indonesia Stock Exchange said that the share purchase was
completed on January 10, 2012, and was declared as not a material or
affiliated transaction.
Following the purchase, Central Omega holds 1,980 shares or 99%, while Bumi
Konawe owns the other 20 shares of 1%.
Denpasar, Bali-based Itamatra was established on September 27 and holds an
exploration license in Morowali, Central Sulawesi.
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N. Sumatra Martabe Gold and Silver Mine Eyes March
Operation
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Source : Reuters, Binis Indonesia & International
Business Times, Monday, 16 January 2012
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The Martabe gold and silver mine should have started operations
in 2011 but the heavy rains in the Sumatra region hampered it from doing
so. Its original owner, OZ Minerals spent about $285 million constructing
the mine that started in June 2008. However, in May 2009, Hong Kong-based
G-resources Group acquired 95 per cent stake ownership in the Martabe gold
and silver mine project, for $220 million, from Oz Minerals.
Peter Albert, CEO of G-Resources, on Saturday said construction works on
the Martabe gold and silver mine project is almost 76 per cent complete,
noting some $450 million of a planned $576 million budget had been spent to
build the mine.
Bisnis Indonesia quoted Peter Albert saying the company targets gold and
silver mine to start production in the end of March and reach the top
average production in 2013 with of 250,000 ounces of gold per year and 2 or
3 million ounces of silver per year.
“From the beginning until today, we have spent US$600 million. In this
year, especially in the next 2 or 3 months, we still need a capital
expenditure of US$150 million. Since, it is a big project,” he said after
the inauguration of Sopo Nauli yesterday.
Sopo Nauli (a beautiful house) is an office building of G-Resources in
Batang Toru, Tapanuli Selatan has a Batak architecture. The ceremony was
attended by Chairman G Resources Chiu Tao dan a Tapanuli Selatan-born
Commisioner of PT Agincourt Resources-a subsidiary of G-Resources which
managing Martabe Project-Anwar Nasution.
Agincourt Resources is the owner of seventh generation of working contract
signed on April 28, 1997.
The Martabe gold and silver mine project is seen as one of the more
promising undeveloped mineral deposits in Asia as it hold massive but
proven reserves of gold and silver, according to the www.mining-technology.com.
Bisnis data recorded that besides G-Resources, shareholders of Agincourt
Resources includes North Sumatra local government with 5% ownership. Of the
5%, North Sumatera government has 70% and Tapanuli Selatan government owns
30%.
G-Resources has a standby loan of US$100 million from BNP Paribas, Hang
Seng Bank Limited, and Sumitomo Mitsui Banking Corporation. The standby
loan is provided in form of revolving credit facility agreement.
The loan will be needed to finance the completion of the Martabe gold and
silver project and to support the activities of the company in the future.
The loan facility is valid for 2.5 years and has a settlement date on June
30, 2014 without hedging fee. The initial interest is in LIBOR plus 4.5%
which will be down to LIBOR plus 4% after the settling of Martabe project
and the approval of the completion of test from the three banks.
The company still has cash of US$242 million and other liquid assets. This
amount should be enough to finance mining projects Martabe gold and silver
production until well into the future and have the cash flow.
The Commissioner of Agincourt Resources Anwar Nasution claimed that the
presence of the mining company in South Tapanuli is expected to increase
the region's economy particularly to the benefit of infrastructure
development besides the expected technology transfer of mine management.
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Indo Mines Limited - Capital Raising Update
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Source : AXS Announcement, Monday, 16 January 2012
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Indo Mines Limited (ASX: IDO) (Company or Indo Mines) is
pleased to announce that it has received confirmation that the Rajawali
Group Board has approved proceeding with the $13.2 million placement in the
Company pursuant to a subscription agreement (Agreement) entered into
between the parties.
A General Meeting is being held on 30 January 2012 for shareholders to
approve the placement of 57.3 million shares at $0.23 to the Rajawali Group
representing a 19.9% strategic holding in the Company.
The significant cash injection from the Rajawali Group provides cornerstone
funding to the Company to assist in completing construction and
commissioning of the demonstration plant at Karawuni, additional testwork
required for development of the iron sands project and completion of
project finance due diligence.
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Buma Mined 2.7 Million Tons Coal Last Month
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Source : COALspot.com, Monday, 16 January 2012
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BUMA has mined 2.7 million tons (-14.1% YoY) coal last
month and removed 25.8 million bcm (-5.6% YoY) overburden, according to
company’s press release.
Average rain hours across the BUMA sites in December 2011 was 96 hours,
29.2% higher than the average in December 2010. Year to date, BUMA produced
334.1 million bcm of overburden (+14.3% YoY) and 34.7 million tons of coal
(-1.0% YoY).
The statment further said that, strip ratio in December 2011 was 9.4x
versus 9.0x in November 2011 and 8.6x in December 2010. Average strip ratio
during 12M11 was 9.6x (+15.5% YoY).
About Delta Dunia
PT Delta Dunia Makmur Tbk. is a holding company with an investment focus on
mining services. Through its wholly owned subsidiary, PT Bukit Makmur
Mandiri Utama (BUMA), Delta Dunia Makmur is now the largest pure play
mining contractor listed on the Indonesian Stock Exchange.
BUMA is the second largest coal mining contractor in Indonesia, providing
mining services under long-term operating agreements with some of Indonesia's
largest coal producers, such as PT Berau Coal, PT Adaro Indonesia, PT
Kideco Jaya Agung and certain subsidiaries of PT Bayan Resources.
BUMA's full range of coal mining services include mining infrastructure
development and construction, land clearing, removal of top soil, drilling
and blasting, overburden removal, coal mining, hauling, reclamation and
rehabilitation of mine sites.
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Thai Miner Asked to Stop Exploration
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Source : Ridwan Max Sijabat/The Jakarta Post, Monday, 16
January 2012
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The government has ordered PT Multi Tambangjaya Utama
(MTU) to stop coal exploration in Buntok, Central Kalimantan, until the
Supreme Court issues a final decision on the troubled company’s fate, says
an official.
Thamrin Sihite, the director general of minerals and coal at the Ministry
of Energy and Mineral Resources said MTU, a subsidiary of a Thai mining
company, had to comply with the verdict of the Buntok District Court, which
declared the company “in default” in August, 2011, for damaging the
production forestland at its mining site.
“We have established coordination with the Central Kalimantan governor and
the Buntok regency administration to urge the coal mining company to stop
its activities until the Supreme Court issues its decision on the appeal
submitted by the office of the Buntok district attorney and until the
Forestry Ministry evaluates the rehabilitation [process] made by the
company in the damaged forest area,” he told reporters here recently after
meeting with the House of Regional Representatives.
Sihite underlined that the Thai company was not allowed to lend or sell its
mining permit to other mining companies until the Supreme Court issued its
verdict.
“The Thai investor can sell the company but not the mining permit,” he
said, adding he was considering revoking the work contract.
The office of the Buntuk district attorney appealed to the Supreme Court
after the district court acquitted MTU CEO Warayot Sermsaksakoon of any
charges. Warayot was tried for ordering mining works in production forests
without a permit from the Forest Ministry.
However, the court declared the company’s mining operation in default. For
this, the company is required to compensate for environmental damages.
The Anti-corruption Community (MAKI) urged the government to terminate the
Thai company’s operation because it had been declared in default by the
district court. It said that despite the court’s decision, the company has
resumed its operation and export of its coal stock.
MTU spokesman Bagus Jaya Wardhan said his company has stopped its
activities, except activity related to environmental repair work as
required by the court.
“MTU has terminated its exploration in compliance with the court verdict
while making necessary repairs and rehabilitation of the damaged area in
the production forest area, which is part of the company’s concession
area,” he said.
Bagus also said his company would report to the Forestry Ministry on progress
made in the repair work associated with its efforts to secure permission to
resume operations.
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PT Timah to Order More Large Dredges
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Source : ITRI, Antara & Investor Daily, Tuesday, 17
January 2012
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State-controlled Indonesian tin producer PT Timah said
it will order two new generation dredges worth around US$100 million this
year, the Antara news agency reported. The two bucket wheel dredges are due
to be operational in 2014 said Wachid Usman, Timah's President Director,
adding to another dredge of the same type which is planned to be in
operation in 2013.
Timah is gradually upgrading its dredge fleet, replacing its old bucket
ladder dredges by either the new deep water vessels or smaller lower cost
cutter suction ones. It a recent presentation the company said that its
offshore tin mining leases contained resources of an estimated 649,402
tonnes of tin, of which 217,549 tonnes was classified as proven and
probable reserves. Timah's offshore operations produced 20,444 tonnes of
tin-in-concentrate in 2010, although production in 2011 is expected to have
declined.
The company's corporate secretary Abrun Abubakar said Timah has set capital
expenditure at Rp2 trillion (US$222 million) this year to finance the
purchases of the dredges. Abrun said part of the capital spending will also
be used for its Mentok tin smelter on Bangka island.
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Killara Resources Shares Spike More Than 20%
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Source : Christine Feary/ ProactiveInvestors &
Bisnis Indonesia, Tuesday, 17 January 2012
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Killara Resources (ASX: KRA) has managed a hefty 21.74%
share price increase today, with 302,000 shares changing hands.
In early December, Killara started a ground-based geophysical survey at the
Belu Manganese project in mid-October 2011, and in December completed two
survey lines across Target 2.
Shares in Killara are trading at A$0.14, up 21.74% on yesterday’s closing
price, but lower than the company’s intraday high of A$0.165.
Killara Resources (ASX: KRA) specialises in precious metals, energy and
base metal resources, with an emphasis on sustainable mining practices and
community engagement.
Bisnis Indonesia previously reported that Ridwan Zachrie, CEO of PT Killara
Indonesia said his company aims to buy 5 coal and gold mining concessions
in Sulawesi and Papua, said, adding that it has talked with local miners
such as PT Adaro Energy Tbk and PT Medco Energi Internasional Tbk.
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Clean and Clear Mining Permits to be Completed End of
2012
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Source : Vega Aulia Pradipta /Bisnis.com, Tuesday, 17
January 2012
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The government plans to announce 700 mining permits with
‘clean and clear status’ without overlapping on other permit holders in the
near future so all of the permits are expected to be complete at the end of
2012.
Since the issue of Mining Act, the Ministry of Energy and Mining
Directorate General of Mineral Resources (ESDM) until mid-2011 there were
9,662 mining permits (IUP) issued by the local governments.
Of the total IUP, only 3,778 permits have clean and clear status. Clean and
clear status shows that the mining areas have complete documents and no
overlapping areas.
The remaining 5,884 permits are problematic. In fact, there are expected to
be significant unclear permits since the licensing authorities are held by
the local governments. This is because regional heads or regents neglect to
manage the matter.
A Bisnis’ source said that in one area of East Kalimantan, to take power of
attorney over the adjustment of mining permit status into exploration
permit about IDR250 million is needed, while the 'cost' for a production
permit ranges between IDR500 million and IDR1 billion.
“It is caused by the unprofessional regents who gave permits to more than
one party," said Thamrin Sihite, Director General of Mining and
Mineral Resources Ministry last weekend.
The Directorate General of Mineral and Coal has assigned the University of
Indonesia (UI) to resolve the issue. The appointment has caused internal
resistance since the verification which was actually conducted by the
Directorate of Commercial Directorate of Coal and Mineral has to be taken
over by an Independent Team from UI.
The completion of the mining permit verification, Thamrin said, is expected
to boost state revenues from the mining sector.
"With reconciliation, the mining permit will be more orderly. In
addition, the permit holder who usually pays a dividend to the regional
government, will now be expected to pay the central government. The central
government has also conducted socialization to the local government so that
the payment of non-tax state revenues can be deposited to central. Then, it
will be distributed to the local government, "he said.
Besides completing the reconciliation of mining permit, the government also
continues to fix the mining sector. President Susilo Bambang Yudhoyono has
formed an evaluation team to adjust working contract (KK) and the agreement
of the coal mining business (PKP2B) in accordance with Presidential Decree
No.3/2012.
The team is composed of the Coordinating Minister for Economic Affairs Hatta
Rajasa as the chairman, the Minister of ESDM Jero Wacik as Chief Executive
and Director General of Mineral and Coal Thamrin Sihite as the secretary.
The evaluation team members consists of the Minister of Finance, Minister
of Home Affairs, Minister of Justice and Human Rights, Minister of
Industry, Minister of Trade, Minister of Forestry, Minister of SOEs, the
Cabinet Secretary, the Attorney General, Chief of Financial Development
Supervisory Board (BPKP), Head of National Land Agency (BPN), and the Head
of Investment Coordinating Board (BKPM).
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Contract Changes Could Put Mining Industry on the Rocks
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Source : Wayne Forrest/Jakarta Globe, Tuesday, 17
January 2012
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Stability in international business is based on many
factors but one of the strongest is the sanctity of contracts.
For at least a generation, Indonesia’s mining industry has been
characterized by a highly stable contract of work that helped bring steady
royalties and tax revenues to the people of Indonesia as well as provide a
secure basis for substantial foreign and domestic investment.
Recent statements from the Ministry of Mines again raises an issue that has
lingered in Indonesia since the end of the New Order government: Should
these contracts be altered in light of the new era and evolving changes to
the legal environment, and are the splits in revenue “fair?”
In order to understand this you have to know that Article 23 of Indonesia’s
Constitution mandates that all resources below the ground be for the
“benefit of the Indonesian people. The article acts as the basis of
mandatory contracts between both government and privately owned mining
entities with the state.
These benefits are distributed via a negotiated contract that fixes royalty
and tax payments as well as other obligations. 2001 changes to Indonesia’s
laws on the distribution of revenue from mining activities, a 2003 decree
on royalty fees and the 2009 revision to the Mining Law have created
uncertainties that have slowed new investment in exploration.
The uncertainty comes not only from inherent conflicts between the new
rules and the existing legacy contracts but also from statements from
government officials on how the new rules will be implemented.
While it is the prerogative of any party to attempt to renegotiate a
contract, such actions, unless otherwise stipulated, must be by the consent
of both parties. If one party wants to stick to existing terms they must
have the right do so.
It would not be in Indonesia’s interest to unilaterally impose new rules
retroactively on existing contracts. Such a change would threaten future
investment but there is now concern that current efforts to gain better
terms from existing contracts in the face of market changes (higher
commodity prices) represents a step in that direction.
Regarding the government’s attempt to renegotiate contracts, the director
general of mining, Thamrin Sihite, recently told a legislative hearing that
“60 percent of the mining companies have agreed,” that only Newmont and
Freeport had not, and that “what’s important is that the renegotiation
should be for the best interest of the country.”
Not withstanding the imprecision in Thamrin’s math (there would have to be
only five mining companies in total for his figures to be correct), the
definition of “best interests” is highly subjective. In fact it could
easily be argued that renegotiating creates harmful contract uncertainty
that could blight a key sector of the economy.
We expect and hope other voices within the government will stand behind the
sanctity of contracts. This will provide the greatest benefit to the people
of Indonesia.
Wayne Forrest is president of the American Indonesian Chamber of Commerce,
a bilateral organization based in New York.
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Newmont Expects Higher Costs, Lower Copper Output
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Source : Reuters & Globe and Mail, Tuesday, 17
January 2012
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Newmont Mining Corp. (NEM-N60.35-0.59-0.97%) said mining
costs for gold (GC-FT1, 666.506.600.40%) and copper (HG-FT3.810.061.56%)
are expected to rise this year, mainly because of higher labour and power
prices in Australia, and it forecast a drop in copper production because it
was currently mining lower-grade ores in Indonesia.
The outlook sent the Denver-based company’s shares more than 3.5 per cent
in morning trading on the New York Stock Exchange.
Newmont, the world’s second-largest gold producer, said it produced less
gold and copper in 2011 and the fourth quarter than a year earlier.
Preliminary results showed it mined 5.2 million ounces of gold and 206
million pounds of copper in 2011. That compares with 5.4 million ounces of
gold and 327 million pounds of copper it produced in 2010.
In the fourth quarter of 2011, Newmont said it produced about 1.3 million
ounces of gold and 48 million pounds of copper ` down from 1.4 million
ounces of gold and 74 million pounds of copper in the same quarter of 2010.
In November, Newmont said lower output in Nevada and higher costs at its
Boddington mine in Australia could affect results.
The company said it expects 2012 gold production of about five to 5.2
million ounces and copper production of 150 to 170 million pounds.
It also expects the cost of mining gold to rise to $625-$675 (U.S.) an
ounce, from $560-$590 in 2011. The cost of copper production, too, will
rise to $1.80-$2.20 a pound, from $1.25-$1.50, the company said in a news
release.
It gave no reason for the lower copper target or the cost increase, but a
spokesman later told Reuters the lower copper production was a result of
“stripping” at its Batu Hijau mine in Indonesia. During the process, the
company was digging more rock containing lower-grade ore, in order to gain
access to part of the mine with higher grades.
“It’s part of the mine plan,” spokesman Omar Jabara said. “Our cost jump is
largely due to the APAC [Asia-Pacific] region, Australia and New Zealand `
labour and higher power prices.” He added that a new carbon tax in
Australia will add some $15 an ounce to the cost of gold production.
The company said it expects to invest about $3- to $3.3-billion in capital
expenditure this year. About 60 per cent of that will go towards growth
projects like Akyem in Ghana and Conga, in Peru.
The proposed $4.8-billion Conga project has been beset by protests by
environmentalists who claim it will damage the local water system. The
government says the project will be the largest mine operation in Peru and
generate thousands of jobs
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Pan Pacific, Sumitomo Won’t Buy Copper Ore From BHP in
2012
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Source : Jae Hur and Ichiro Suzuki /Bloomberg, Tuesday,
17 January 2012
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Pan Pacific Copper Co. and Sumitomo Metal Mining Co.,
Japan’s two largest producers, won’t purchase concentrate from BHP Billiton
Ltd. this year via an annual contract.
Pan Pacific ended negotiations for an annual contract, a senior executive
who declined to be identified as the discussions were private, said today.
Sumitomo Metal Mining spokesman Masashi Takahashi said it won’t purchase
concentrate from BHP this year under an annual contract after failing to
reach an agreement on processing fees.
Japanese smelters have struggled to secure 2012 fees with BHP after
agreeing with Freeport-McMoRan Copper & Gold Inc. to charge $63.5 a
metric ton and 6.35 cents a pound, up from $56 and 5.6 cents in 2011. An
increase in fees, known as treatment and refining charges, or TC/RCs,
boosts smelters’ revenue.
“This is a rare case for annual deals,” said Takashi Murata, an analyst at
Daiwa Securities Capital Markets Co. in Tokyo. “The volume of concentrate
this year with BHP may not be very significant or BHP’s offer may be less
than Freeport’s.”
Kelly Quirke, a Melbourne-based spokeswoman for BHP, declined to comment on
individual contracts with companies. Calls to Pan Pacific spokesman Kouichi
Shirai’s mobile phone and office were not answered.
Pan Pacific said yesterday it plans to restart its Saganoseki smelter in
February, about a month after the fire on Jan. 7 damaged an electric power
substation at the site in Oita prefecture, southern Japan.
Increased TC/RC’s
Treatment fees are expressed in dollars per ton of concentrate received and
refining fees in cents per pound of copper in the ore. The fees are
deducted from the price paid by smelters to mining companies for the raw
material.
“Now the focus is on what other Japanese smelters will do,” Murata said.
Japanese companies have been pursuing increased annual TC/RCs with the
stronger yen against the dollar and slowing demand for refined metal, he
said.
Toshiaki Yamada, a spokesman at Mitsubishi Materials Corp., Japan’s
third-largest smelter, said negotiations with BHP had ended, without
elaborating.
Chinese Smelters
BHP offered Chinese smelters annual copper ore treatment fees of $60 a ton
and 6 cents a pound for refining, two smelter executives with knowledge of
the discussions said Jan. 4, asking not to be identified as the talks were
private.
The processing fees were lower than the $63.5 a ton and 6.35 cents a pound
settled between Jiangxi Copper Co., China’s largest producer, and
Freeport-McMoRan Copper & Gold Inc. in November. Pan Pacific also set
the 2012 fee at the same level with Freeport in early December.
Pan Pacific said in May that it agreed with BHP to $90 and 9 cents for July
1 to Dec. 31, up from $70 and 7 cents in the first half. The company is 66
percent owned by JX Nippon Mining & Metals Co., a unit of JX Holdings
Inc. Mitsui Mining & Smelting Co. holds the remainder.
Copper for three-month delivery on the London Metal Exchange rose 1.9
percent to $8,245 a ton at 4:40 p.m. Tokyo time after touching $8,248, the
highest level since Oct. 28. BHP owns Escondida, the world’s biggest copper
mine, while Freeport runs the Grasberg mine in Indonesia.
With assistance from Soraya Permatasari in Melbourne.
Editors: Jarrett Banks, Richard Dobson
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Southern Arc Provides Drilling Results from Waterfall
Target, Mencanggah Prospect
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Source : News Release, Wednesday, 18 January 2012
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Southern Arc Minerals (TSX-V: SA, OTCQX: SOACF)(“Southern
Arc” or “the Company”) is pleased to provide final results from Phase 1
drilling at the Waterfall Target in the Mencanggah Prospect on Southern
Arc’s West Lombok Property in Indonesia.
Final assay results have been received for the Phase 1 Waterfall target
drill holes MCG003 to MCG027. All intersections are reported as down-hole
lengths. At Waterfall, 27 drill holes totalling 6,634 meters have been
completed. Drilling tested outcrops of banded and brecciated epithermal
chalcedonic-quartz veins for the presence of high-grade shoots at depth.
These results confirm multiple vein zones at Waterfall, with the highlight
intersections being:
MCG016 4.75m @ 15.6 g/t gold and 15 g/t silver from 168.50m Including 2.0m
@ 36.1 g/t gold and 31 g/t silver from 169.70m
MCG006 1.6m @ 11.0 g/t gold and 2.6 g/t silver from 122.35m
Along the 2 kilometers of cumulative vein strike drill tested at Waterfall,
best results appear to be localized on sections of the vein that strike
north-northwest, which is the prominent structural control for gold
mineralization throughout the property. Results from MCG001, MCG006 and
MCG016 show significantly higher tenor supporting this concept. At least
three north-northwest trending vein segments remain under tested for potential
high-grade shoot development and will require more in-fill drilling.
Results from Waterfall confirm the presence of discrete high-grade shoots
developed within the West Lombok epithermal systems. These results will be
further interpreted and ranked with results from the other Mencanggah and
Pelangan targets for future drilling. The decision to initiate Phase 1
exploration at the Waterfall target, rather than higher priority targets
such as Bising and Tibu Serai, was a strategic decision as the Company
worked to establish a strong corporate and security presence in the region.
The Company currently has two rigs drilling on the Jati and Tanjung targets
on the Pelangan prospect, where previous exploration identified a
continuous 1.5km-long mineralized epithermal breccia hosting at least one
high-grade lode structure. Previous drilling intersections include 10.05m @
13.4 g/t gold and 8 g/t silver (TGD-02), 9.2m @ 5.9 g/t gold and 11 g/t
silver (JDG-03) and 26.2m @ 4.2 g/t gold (including 3.45m @ 12.3 g/t gold:
PLD-027).
On behalf of the Board of Southern Arc Minerals Inc.
“John Proust”
Chairman & Chief Executive Officer
About Southern Arc
Southern Arc Minerals Inc. is a Canadian mineral exploration company with
an aggressive exploration, acquisition and growth strategy. The Company’s
portfolio includes four exploration projects with epithermal gold and
gold-copper porphyry prospects on the Lombok and Sumbawa islands in
Indonesia, three of which are being advanced in partnership with major mining
companies Vale and Newcrest. The Company’s key exploration property is its
West Lombok project, with several gold-rich copper porphyry and epithermal
gold vein prospects. Southern Arc is listed on the TSX Venture Exchange
under the symbol SA and on the OTCQX International under the symbol SOACF.
www.southernarcminerals.com
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Fitch May Give Adaro Investment Grade Rating
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Source : Esther Samboh/The Jakarta Post, Wednesday, 18
January 2012
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Major international rating agency Fitch Ratings may
raise the debt rating of Indonesia’s second-largest coal producer PT Adaro Energy
Tbk (ADRO) to investment grade if the company expands to other coal mining
sites, thanks to strong financial fundamentals amid rising demand for coal.
The upgrade of Adaro’s rating grade, which is currently BB+ with a stable
outlook, which is one notch below investment grade, may happen in the
medium-term, Fitch’s head of Asia Pacific corporate ratings group Andrew
Steel told a briefing on Tuesday.
“[Adaro] is one of the world’s lowest-cost producers of thermal coal, and
regional demand for thermal coal is extremely strong. The demographics and
economic changes throughout the region continue to drive demand for power,
and coal remains generators’ choice throughout the region,” he explained.
Indonesia is the world’s largest exporter of thermal coal and Adaro is the
nation’s second-largest coal miner with expected output of 46 to 48 million
tons in 2011. Nationwide coal production is forecast at 340 million tons.
Adaro’s net income nearly doubled in the third quarter of 2011 from the
same period of the previous year to US$376 million, as revenue was up by
almost 50 percent to $2.92 billion.
“Adaro is stable and profitable. It also has a long-standing and
creditworthy customer base,” Steel said.
Volatile global coal prices should not be a problem for Adaro given its
low-production costs that place it in a “strong position to have
flexibility in the way that it copes for changes in prices”, but the major
constraints for Adaro’s possible rating upgrade are site diversification
and debt-funded acquisitions, Steel added.
“Looking at acquisitions, part of it is debt funded, so there will be
weakening of its financial profile over the next 12 to 24 months.
“Any improvement in its mine sites diversity are likely to reduce its
dependence on a single location of South Kalimantan. Once that location
goes through some difficult and challenging conditions, it will be a
single-side risk for investors.”
Fitch recently upgraded eight banks and five other companies’ credit
ratings to investment status after the ratings agency lifted Indonesia’s
sovereign debt status to investment grade.
The firms are state-run giants in the utilities, telecommunication and
energy sectors while the banks are mostly state- and foreign-controlled:
Pertamina, PGN, PLN, Telkom, Telkomsel, Bank BCA, Bank Mandiri, Bank BRI,
Bank BNI, Bank CIMB Niaga, Bank BII and OCBC NISP.
“When other emerging markets move into investment grade, the firsts to
follow are state companies, and then it takes quite a long time for the
corporates to catch up,” Steel said.
Adaro, Indonesia’s largest coal miner by market value with capitalization
of Rp 57.57 trillion as of Tuesday, has seen its shares (ADRO) tumble 30.1
percent in the past year as high volatility in the commodities market has
prompted sell-offs of commodities stocks during 2011.
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