Mining News

"Banco Mundial aprobó crédito para remediar el ex complejo uranífero", published in La Mañana de Córdoba (Province of Córdoba) on 03/05/2010.
The Board of Directors of the World Bank approved the disbursement of a 30 Million dollar loan previously requested by former Argentine governments for the environmental remediation of old deposits and processing mills whose exploitation ceased in Los Gigantes area and Alta Córdoba (Córdoba), Malargüe (Mendoza), Los Colorados (La Rioja), La Estela (San Luis), Sierra Pintada Pichinán (Chubut), Don Otto and Tonco (Salta). Sources from the National Atomic Energy Commission (Conea) explained that the funds to be received from the World Bank under a special loan program are aimed at the definitive remedy of locations where mineral exploitation for radioactive materials such as uranium were carried out. The fixed rate 30 Million dollar loan has a 30 year term including a 5 year grace period.
 
   
"Pronostican que continuarán en alza las inversiones mineras", published in BAE (City of Buenos Aires) on 03/10/2010.
Argentine mining will continue to grow in terms of investment and development of new exploration and production projects, anticipated Mr. Mclean, head of Paradigma Capital, a Canadian entity which brings together the main mining investment analysts; an icon of world mining. Mr. Mclean also commended the ongoing Argentine policies which support mining development and referred to the growth of mining activity throughout Argentina during the year of the international crisis, during which four production projects were initiated and the construction of Pascua Lama, the first bi-national project was announced.
 
   
"Llegan más inversiones para minas de litio", published in Clarín (City of Buenos Aires) on 03/11/2010.
Lithium, a key material in hybrid and electric car manufacturing is generating new agreements between companies for its use in the industry. In January Toyota Tsusho, supplier of the great Japanese manufacturer had announced a joint transaction with the Australian mining company Orocobre for the development of a 100 Million Dollar project in Argentina. This agreement occurred only a few days after it became public that Magna International, the Austrian-Canadian capital auto-parts manufacturer is developing a battery powered version of the Ford Focus. The company announced a 10 Million Dollar investment for this project. This was the latest of a series of projects announced last year, which evidence a new rush of companies to secure a supply of this metal. Last year, Argentina sold 6,000 tons of lithium to the United States, England, Germany, China and Russia.
 
   
"Creció en febrero la producción de acero", published in La Nación (City of Buenos Aires) on 03/18/2010.
Raw steel production rose by 380,500 tons in February. According to a report from the Metallurgic Industrial Center (Centro de Industriales Siderúrgicos), this amount shows a year-on-year growth of 48.3% and 12.5% regarding January 2009. As informed by the center, the metallurgic industry is facing a significant rise in the price of its main supplies.
 
   
"Acero: aumentó 48% producción", published in Ámbito Financiero (City of Buenos Aires) on 03/18/2001.
Steel production reached 380,500 tons in February, evidencing a monthly 12.5% rise and a 48.3% increase regarding the previous year. Regardless of the year-to-year comparison affected by the international crisis, this data allows us to foresee that signs of metallurgic industry recuperation are being upheld.
Several markers would be displaying a market sector recovery on a world scale. However, a few indicators such as the higher cost of iron ore supply service agreement renewal have caused concern throughout the main plants. This could result in serious price adjustments for metallurgic products supplied to construction, the car industry, the oil industry and even home appliances.
Part of this went public last week when Chinese metallurgic companies complained about price adjustments (above 30%) in negotiations held with the main iron companies. Furthermore, new supply service agreements were known to bring along three-month terms instead of the usual annual terms and a rise in prices retroactive to January 2010. Rumors also arrived from Brazil suggesting that the largest iron ore manufacturer in the world, Vale Do Rio Doce was imposing an 80% rise for local plants (40% in March and 40% in April), as informed by a Steel Business Briefing Report.
 
   
"El debate por el royalty chileno genera expectativa en San Juan", published in Cuyo Minero (Province of San Juan) on 03/25/2010.
After the February 27 earthquake, the debate on mining royalties arose in Chile, as an important source for financing reconstruction. The debate over this side of the border also anticipates a spot in the Argentine House of Representatives, where at least three bills to modify the liquidation method and percentiles applicable to large scale metal mining have already been submitted to consideration. In this context, the Chilean decision would set a standard and local companies are following the events very closely. "Mining distributing returns depend on the sustainability of the mining business and mining companies' approach to local communities; they do not depend on general duties or tax rates that may be imposed", stated Ricardo Martínez, President of the Province of San Juan Chamber of Commerce, clearly opposing any change in the current legal framework.
In Argentina the national law provides a standard for the provinces to regulate the collection of royalties up to 3 per cent (no more) of the mineral pithead value. Bills submitted by National Representatives Daniel Tomas and Mauricio Ibarra and National Senator César Gioja intend to replace the "pithead value" criteria for an "income based" criteria, which results in a higher royalty. Ibarra also proposes to raise the percentile from 3% to 7% while Gioja intends to set a variable percentile. The Argentine debate met its match on the other side of the mountain range since Chile has a vast metal mining history and it is there where the royalty raise was initially debated, after the devastation and loss liquidation for an estimated amount of 30,000 Million Dollars.
Chile imposed royalties in 2005 after decades of not collecting this item. Last week the Chilean press found out that President Sebastián Piñera's Economic Advisor, Paul Fontaine, suggested raising royalties by 3 points "in order to enable national reconstruction". In the economist's opinion, if the royalty were raised from the current 5 percent to 8 percent, it would finance the plan for restoration of regions affected by the earthquake and subsequent tsunami. The technical advisor sustained that this raise would not "ward off" investment.
 
   
"Prevén fuerte suba de las exportaciones mineras", published in La Nación (City of Buenos Aires) on 03/26/2010.
Mining exports will exceed USD 30,000 Million Dollars between 2017 and 2025, pointed out the Secretary of Mining of Argentina, Jorge Mayoral, during a seminar organized by Marval, O'Farrell & Mairal, attended by 115 mining executives. Leonardo Rodríguez, from Marval, O'Farrell & Mairal sustained unstoppable growth.
 
   
"China expresó interés por el potencial minero de la Argentina", published in Infobae (Buenos Aires) on 04/01/2010.
Mining sector government agents from the Asian country asserted their intention to apply their experience in metal prospecting and exploration in Argentina. A statement by the Argentine Mining Industrialists Argentine Chamber (Cámara Argentina de Empresarios Mineros) informed that the entity's president, Manuel Benítez, met with a group of agents from the Non-Metal Geology and Mining Bureau of Oriental China, leaded by their Executive Director, Shao Yi. The Oriental representative was accompanied by Yan Wang, Assistant Director of the Resource Prospecting Institute. The bureau is located in Shanghai, the most economically developed region of China, and is active since 1957 in prospecting and exploration of base metals such as copper, iron and nickel as well as uranium and Rare Earth elements.