Posted: 12 Feb 2014 07:45 AM PST

Myanmar’s gold workers call the government to pass mining law

Gold miners face precarious working condition in Myanmar.

Myanmar's gold production has been steadily picking up and could become soon a key driver for the country's economic growth, but the increasing number of miners suffering from lung diseases has forced them to demand a swift approval of a mining law, currently being discussed in parliament.

In a special report DVBTV English shows the precarious conditions gold miners face daily, from inadequate equipment to antiquated practices.

"We break the rocks with high pressured guns, but breathe the small particles that come from breaking the stone. We contract lung infections that we call 'gun disease'," a Tagon Gold Mine-1 worker in the Mandalay division of Myanmar told DVBTV.

The government of Myanmar once owned all of the country's gold mines, but following the fall of the junta in 2011, many of them were sold off to private owners. Previously, Myanmar produced just 100 kg of gold each year, but privatization and an easing of international sanctions have allowed that number to double, Global Post reported in November.

Authorities, companies and the ministry of mines have seen potential in the industry and are now trying to pursue foreign investment for the sector. The goal is to reduce poverty rate from 26% to 16% by exporting gold beginning next year. But the added demand means an increased need for manpower, working hours and medical support, which a mining law could guarantee, say the miners.

Although undeveloped, the country is home for vast and untouched reserves of highly demanded minerals and metals, such as gold, tungsten, copper and even some oil. It is also known by its precious stones and lithium reserves.

Another advantage of the still impoverished nation is to be conveniently located between China and India, which are international economic growth's engines and hungry consumers of raw materials.

If approved, Myanmar's mining law would make it easier for foreign investors to tap into the country's emerging mining sector.

Watch more on this story:

Image courtesy of Juan Pablo Cardenal and Heriberto Araujo/The Velvet Rocket

Canada’s 2014 budget kind to miners, extends 15% exploration tax credit

Posted: 12 Feb 2014 06:16 AM PST

In what some analysts are calling an "unambitious" plan aimed mainly to balance the books ahead of the next election, Canada's Finance Minister Jim Flaherty tabled the 2014 budget Tuesday, which didn't include any significant revisions for the country's mining and metals industry.

Despite, or perhaps, because of this lack of changes, miners welcomed the document. The Mining Association of Canada (MAC) praised the federal government's extension of the 15% Mineral Exploration Tax Credit (METC) until March 2015.

In a statement, the industry body said the renewal of this tax incentive comes at a critical time, given the continued challenging economic environment faced by local junior miners.

MAC also applauded by the budget's focus on improving the education outcomes of aboriginal youth through an agreement with the Assembly of First Nations.

"This announcement represents a financial commitment of more than $1.9 billion over three years starting in 2016 to support the Act, which aims to give First Nations youth greater access to quality education and enable them to participate fully in Canada's workforce in the future," said Pierre Gratton, MAC's President and CEO.

The Association for Mineral Exploration in British Columbia (AME BC) also applauded the new budget, in particular the tax credit extension.

"Many of our members are having difficulty raising capital in these financially challenging times, and the renewal is much appreciated," said David McLelland, chair of AME BC.

Image by BC Gov Photos via Flickr.

Goldman Sachs selling Iran’s one-time uranium supplier

Posted: 12 Feb 2014 03:08 AM PST

US bank Goldman Sachs (NYSE:GS) and Deutsche Bank (NYSE:DB) are attempting to get out of trading supplies of raw uranium, known as yellowcake, a business few knew they were in.

According to Reuters, these financial institutions have stockpiled more nuclear fuel ingredient than the total amount held by Iran, and enough to run China's nuclear plants for a year.

Both global investment banks entered the uranium market in 2009, when tightening supplies threatened to send prices soaring. The plan was to handle almost a third of all uranium trades in the spot market. Instead, they are adding the division to the list of commodities units up for sale.

The move comes as other US banks, including JPMorgan Chase (NYSE:JPM) and Morgan Stanley, are in the midst of waving their physical commodity trading good-bye.

Pushed by increased government scrutiny, squeezed trading margins and forecasts for tepid demand in certain markets, global banks are signalling the end of an era in which they rushed to take advantage of the commodity prices boom.

Deutsche Bank, Europe's second largest bank, announced it exit from commodities last December. Since then it is said to have been in talks with potential buyers of its uranium business.

Fukushima effect

The expected sales were also triggered by decreasing uranium prices, currently at their lowest since 2005. Spot prices of U3O8 (triuranium octoxide), a material use for uranium enrichment, have fluctuated between $34-$35 a pound since September, over 50% less than the price prior to the Fukushima disaster in Japan in 2011.

Ties to Iran

Goldman's connection to Iran date back to the 1970's, when Nuclear Fuels Corporation of South Africa or NUFCOR (later the bank uranium unit) agreed to supply Iran with 2,400 metric tonnes of yellowcake, Reuters reports.

A second deal attempt failed in 1984, and all uranium that had not been sent to Iran was sold to a New York trading company and a German electricity firm. The money was returned to Tehran.

In the 1990's Iran told the International Atomic Energy Agency of its uranium purchases (IAEA), which claims Iran bought it from South Africa, never revealing the company behind the sale.

Image by Gil C

Myanmar’s gold workers call the government to pass mining law

Myanmar’s gold workers call the government to pass mining law

0 Comment for "Myanmar’s gold workers call the government to pass mining law"

Popular Posts