Friday's blockbuster US employment report showed 321,000 jobs were created in the US in November across a broad range of industries.
The data for October was adjusted upwards and wage growth, which has consistently lagged the topline number also accelerated by more than expected last month.
MarketWatch reports mining and logging is one of six industries that can't find workers fast enough according to research conducted by the Centre for Economic and Business Research and job site Indeed.com:
Like with manufacturing, there aren't a ton of jobs in this sector — the BLS estimates that fewer than 100,000 people are employed in the U.S. in the natural resources and mining fields — but the pay is decent at $31 an hour for all employees and $27 an hour on average for nonsupervisory employees. Still, more than 36% of the jobs in this industry stay open for longer than three months (likely for similar reasons that manufacturing jobs stay open, says D'Arcy) with jobs like crew member, crew foreman and field supervisor staying open a particularly long time, says Indeed.com.
It's not unqualified good news for jobseekers however.
One of the reasons these jobs don't get filled quickly "may have to do with the fact that not many new people are seeking jobs in the field."
In addition, "employers are becoming increasingly picky — they want specific technical skills or experience and there is a very narrow pool of people with those specifics," says Paul D'Arcy, the senior vice president at Indeed.
Vale may settle Simandou lawsuit
Posted: 05 Dec 2014 02:28 PM PST
Guinea is home to some of the richest and easily exploitable iron ore fields outside of Australia's Pilbara region and top producer Vale's Brazilian home base.
In May, the Guinea government and Rio Tinto (LON:RIO) and its partners – China's Chalco together with the World Bank – inked a game-changing $20 billion deal for the southern section of the Simandou iron deposit.
At full production Rio's Simandou concession would export up to 95 million tonnes per year – that's a third of Rio's total capacity at the moment – and would catapult Rio past Vale as world number one.
Rio Tinto held the licence for the entire deposit, but was stripped of the northern blocks in 2008 by a former dictator of the country, one of the poorest in Africa.
BSG Resources, a company associated with Israeli diamond billionaire Beny Steinmetz acquired the concession later that year after spending $160 million exploring the property.
In 2010 BSGR sold 51% to Vale (NYSE:VALE) for $2.5 billion, but the Rio de Janeiro-based company stopped paying after the first $500 million when the investigation was launched.
The Guinea government withdrew the mining permit in April, accusing BSGR of obtaining its rights through corruption.
Rio Tinto subsequently filed a lawsuit for billions of dollars against both Vale and BSGR for what it called a "steal" of its previously-owned concession. Rio alleges BSGR paid a $200 million bribe to Guinea's former minister using funds from Vale's initial payment.
The Wall Street Journal reports that Vale may consider settling the suit out of court.
Clovis Torres, Vale's general counsel, said Friday his company might be willing to settle the lawsuit, but "never as an acceptance of guilt."
"What may be even more absurd than this lawsuit is the high cost of legal processes in the U.S.," Mr. Torres said in an event broadcast from London. "So to avoid the additional absurdity of incurring even more costs, we could without a doubt think of something along those lines."
Representatives for Mr. Steinmetz didn't immediately respond to a request for comment.
A potential settlement isn't "on the table" yet, since Vale is currently awaiting a U.S. judge's decision on where the case should be tried. Rio Tinto filed the lawsuit in New York, while Vale argues the dispute should go to arbitration in London.
"They need to rule on that point before continuing ahead to the discovery process," Mr. Torres said.
Anglo American drops Peru copper project
Posted: 05 Dec 2014 12:48 PM PST
World number four miner Anglo American announced Friday that its wholly-owned subsidiary, Anglo American Michiquillay SA, has given notice to the government of Peru to terminate the 2007 privatisation agreement which will result in it withdrawing from the exploration phase Michiquillay copper project.
Under the terms of the 2007 privatisation agreement, Anglo American Michiquillay S.A. has begun the appropriate legal processes to return the project to Activos Mineros S.A.C, the company said in a statement.
In the current economic environment, in which Anglo American is bringing increased focus to its portfolio and prioritising its capital to drive greater returns, Anglo American believes that the prospects for the development of the Michiquillay project would be improved under different ownership.
Anglo American's immediate priority is to ensure a responsible exit from the Michiquillay project, which includes the successful transfer of its role in the existing Michiquillay Social Fund to the government.
Duncan Wanblad, CEO of Anglo American's Base Metals and Minerals business, said: "While Michiquillay represents an attractive copper deposit, we have made the decision to withdraw following a comprehensive evaluation of the potential of our long-dated project options. We have reduced the capital required to sustain projects during the pre-approval phases of their development as we focus the portfolio and prioritise our capital on the projects and assets that offer the greatest source of potential value to us, over the short and long term."
Anglo American continues to progress its Quellaveco copper project in southern Peru and is targeting submission of that project to its board in 2015 according to the statement.
Peru has been the favoured destination for copper investment in recent years. New mines in Peru, led by China Minmetal's $6 billion Las Bambas project, coming on stream next year and in 2016 will double production to 2.8 million tonnes, placing the South American nation in second place globally behind Chile.
It was recently revealed about 1,000 of the 55,000 active mining concessions in Peru, or a 1.8%, are currently in full swing, according to a study by the country's Ministry of Energy and Mines (MEM).
While the South American nation has 7 billion tonnes of copper reserves and 74 million ounces of gold waiting to be extracted, according to USGS data, only a few companies are actually going ahead with their planned exploration and extraction activities.
Gold, silver run out of big sellers
Posted: 05 Dec 2014 12:26 PM PST
But Friday's blockbuster US employment report that showed 321,000 jobs created in November across a broad range of industries, injected fresh volatility into precious metals.
In afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,191.20 an ounce, down $16.50 or 1.4% from Thursday's close after recovering from a dip to $1,187.
As is usual silver investors received more body blows, but again the downside was fairly limited with March contracts dipping 1.7% to $16.29, recovering from a day low $16.22 an ounce.
Given that many economists have brought forward Federal Reserve interest rate hike expectations; a big negative for gold which produces no yield and is strongly inversely correlated, the damage may have been greater.
SEE ALSO: Jeffrey Nichols: Paper gold bears losing grip on price
Particularly since the jobs data gave another boost to the already rampant US dollar which reached a more than 8-year high against the currencies of its major trading partners – gold and the dollar usually move in opposite directions.
The gold price was also resilient against a renewed slide in crude oil with Brent dipping below $70 a barrel for the first time since February 2010. Gold and oil prices tend to move in tandem and gold was beginning to look expensive compared to crude.
Another factor that adds pressure to the gold price is a fresh climb in US equities with the Dow Jones within striking distance of the 18,000 level and the broader S&P500 index also advancing despite weak utilities and energy stocks. Both indices reached new intra-day record highs after the release of the economic data.
Despite all the negatives on paper markets, gold's gains since hitting four-year lows early November still top 4% while silver has advanced 5.4% over the same period.
Source: FT
Sandvik relocates global equipment unit to India and China
Posted: 05 Dec 2014 11:16 AM PST
The firm is closing several facilities in the U.S. and Europe, as part of a two-year business reorganization set to conclude in the next fiscal.
Swedish equipment and tool manufacturer Sandvik Mining (STO:SAND) has unveiled plans to relocate its various global mining equipment facilities to India and China from the U.S. and Europe, as part of a two-year business reorganization set to conclude in the next fiscal.
Kobus Malan, president emerging markets for Sandvik, told The Hindu's Business Line the company is concentrating on cost-efficiencies and shifting its operations. Beginning next fiscal year, it hopes that underground coal mining gear business drives the growth of its operations in India, a country where it has had strong presence since 1960.
In September the firm announced the sale of Sandvik Materials Technology (SMT)'s steel distribution business in Australia and New Zealand to Vulcan Steel Ltd. Further disposals of smaller units may be considered as part of an "active portfolio management model," the company said.
"We will prune the portfolio by divesting areas where we see lesser potential for Sandvik, while at the same time making acquisitions and build in areas where we see more potential," Chief Executive Officer Olof Faxander said.
On Monday the group announced it was closing down its Die Cutting business in Qingdao, China.
Cecilia Jamasmie
Email: cjamasmie@mining.com
Cecilia Jamasmie on
Cecilia Jamasmie, news editor at MINING.com, has over 15 years of experience in print media, TV, online media and public relations. She specializes in Corporate Social Responsibility (CSR) and the Latin American market. Cecilia has been interviewed by BBC News and CBC among others. She has also been syndicated by Forbes, Seeking Alpha and BIV. She holds a Master of Journalism (MJ) from the University of British Columbia, Canada, and she is currently based in Halifax, Nova Scotia.
Canadian miners find 'pot of gold' in Ireland
Posted: 05 Dec 2014 09:39 AM PST
Stock image by Miriam Doerr|Shutterstock.com.
It was not at the end of any rainbow, but Canadian miner Galantas Gold (LON, CVE:GAL), did find a pot of gold in Ireland after it struck a deal this week with TJH Ltd of Dublin over the production, marketing and sale of a range of jewellery using the firm's Irish output.
The company, which owns the —until recently— only gold mine in Ireland (Omagh), is waiting to hear about its planning application for underground mining before the end of the year. If successful, the new mine level would allow Galantas to expands Omagh open pit gold mine's output, which reached 3,200 ounces, or 102kg, in 2012, and about half that amount last year as production stopped.
Galantas is not the only Canadian miner venturing in Northern Ireland. Dalradian Resources (TSX:DNA), a small company admitted this week to trade on London's junior AIM market (LON:DALR), is betting on Curraghinalt, a deposit near Omagh that was first explored in the 1980s.
Dalradian Resources's Curraghinalt deposit. (Click to expand)
Dalradian, which counts with the same staff that discovered Ecuador's largest gold project Fruta del Norte, believes Curraghinalt is one of the world's highest-grade bullion projects. The company says it would be the first to produce gold in Northern Ireland on an industrial scale.
The renewed interest in Ireland's gold holds out the prospect of an economic boost for one of the UK's poorest regions, according to Financial Times (subs. required):
"… [It comes] at a time when George Osborne, chancellor, has signalled his willingness to devolve power to set corporation tax to the Northern Ireland Assembly.
Any development would depend on planning permission, environmental safeguards, further financial backing and, crucially, the gold price, which has fallen 30 per cent during the past two years to about $1,200 an ounce."
Dalradian is currently seeking planning permission to build the Curraghinalt mine, with production potentially able to begin as early as 2017 at an average of 162,000 ounces a year over an 18 years mine life.
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