Mining News: January 2009

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Wednesday, January 28, 2009

Mining industry predicting an increase in mineral prices this year

Mining industry is predicting an increase in prices of minerals globally this year even when there is global financial crunch. Mr Sam Chikowore, chief executive of Exporien Mining said that even if there is recession in this sector, there would be a price rise in minerals. Mr. Patrick Musavaya, director of Hilmax Mining operations noted that some mining companies are planning to expand. The change in the behavior of local and foreign investors is an indication of a better year. Many mining companies were reducing their operations in the last quarter of 2008 because the prices of major metals were falling in the global market.

Thursday, January 22, 2009

Worldwide job cuts in Mining industry

Due to economic slowdown, job cuts are going out worldwide in the mining industry. BHP Bilton which is the world's biggest mining group is planning to cut nearly 6000 jobs worldwide because demand for its products is falling.

Another mining company, Rio Tinto, is planning to cut down nearly 1100 staff worldwide in its aluminum division, Rio Tinto Alcan. Due to slow down in the economy there is fall in demand for many products.

James Boyce who is the president of Aggregate and Quarry Association says slowdown in production is also causing some New Zealand companies freeze recruitment and cut staff. Due to worldwide job cuts many mining workers are returning back to New Zealand for re-employment. All these workers are highly skilled but still they are finding it difficult to find jobs. General Manager, Catherine Lo Giacco of Manpower a Recruitment firm in New Zealand says that there is still some demand for mining workers in Australia. There are some companies who are reducing workforces and some who are hiring.

Monday, January 12, 2009

Decrease in Mining deaths

Richard stickler became a well known face in Utahns after Crandall Canyon mine disaster. At present he is the acting head of Federal Mine Safety and Health Administration (MSHA). Stickler took personal interest in mining safety. He was supporting the family members of nine miners who passed away at Crandall Canyon Mine incident in 2007. He took an oath that he would find out the main cause for the incident.

Stickler was not satisfied with the mining deaths in the United States in 2008 which was the lowest. 51 miners died in 2008, of which 29 reportedly died in coal mines and the rest in copper, stone and other kinds of mines.

The number of deaths in mining have reduced since 2006 where only 73 miners where killed and in 2007 the deaths reduced to 67 miners including Crandall Canyon miners. Decrease in the death of miners has been due to revamped safety laws and stepped up enforcement. In 2008, MSHA employed more 360 inspectors and paid nearly $10 million more so that every coal mine in the nation is reviewed properly. All the mines should have safety equipments to help the miners come out in case of emergency. This was in the 31 year history that all the inspections were done within a year.

But the coal death in 2008 was higher when compared to 2005 which was the lowest. Mining work is not an easy task. But strong regulations and company's commitment to safety can help reduce risks and improve company's performance. People who are working in the mining industry should work under safest conditions possible. To maintain safety in mining regular inspections have to be done every year.

Thursday, January 1, 2009

Pricing a Top Concern In '2009 for Metal and Mining Companies

Metals and mining companies will persist to fight in 2009 amid a potentially stretched drop in stipulate and falling metal prices.

The ratings agency said demand has dropped harshly owing to rigid credit and the depression, consequential in the entire supply chain trying to preserve cash by reducing inventory, orders and production levels.

Prices have go down for aluminum, copper, zinc, nickel and steel amid lower demand, and most of the prices have however to stabilize, according to S&P. Only coal and gold prices stay somewhat strong.

Of the 43 U.S. metals and mining companies rated by S&P, 13 have negative credit outlooks or their credit ratings are under evaluation for a downgrade, whereas only four have positive outlooks or are being measured for an upgrade.

Still, many in the trade were in a strong liquidity position at the opening of the downturn, after some years of excellent earnings and cash flow, producing conquering acquisitions, expansions and adequate liquidity to provide a cushion through the current economic slowdown.

S&P still warned that additional price refuse and low commodity prices for an extended period might lead to lower ratings across the sector.

Some companies, as well as Nucor Corp. (NUE) and Freeport-McMoRan Copper & Gold Inc. (FCX) are likely to be constant if they can amend operations to new pricing and demand levels, as the companies are better-capitalized than most.

S&P said key factors affect metal and mining companies in the next few months comprise a stable economic climate to free up the credit markets, government stimulus packages, growth in China and lower costs and possibility of the Detroit Three automakers, which use about 30% of total steel sold in the U.S.