London Mining Network » Xstrata

Philippine Bishops want Truth Commission vs environmental crimes

Richard — Wed, 21 Jul 2010 15:05:51 +0000

The Philippines has a new President. He is the son of the national heroine, ‘Cory’ Aquino. After the pro-mining policy of previous President, Gloria Macapagal-Arroyo, there are hopes that “Noynoy” (as he is popularly known) will literally bring in a new regime. He has promised a ‘Truth Commission’ over his predecessors’ corruption, and the Catholic Bishops are asking that this be extended to looking at environmental crimes, most notably previous mining disasters. They are also calling, once again, for the repeal of the 1995 Mining Act. This would affect London-listed Xstrata.

See http://www.minesandcommunities.org/article.php?a=10245.

Xstrata tries to get round opencast mining ban in Philippines

Richard — Wed, 21 Jul 2010 15:04:51 +0000

AMID keen interest by big firms in the country’s mineral resources, the Philippines Government has stepped into the controversy created by a local government unit’s (LGU) decision to ban open-pit mining in the southern Philippines. The Department of Environment and Natural Resources (DENR) said that President Benigno Aquino 3rd already gave the agency the mandate to pursue a compromise solution on the issue.

See http://www.manilatimes.net/index.php/business-columns/21454-malacanang-orders-win-win-solution-to-open-pit-mining-row.

Xstrata approves US$1.47bn Antapaccay copper project in Peru

Richard — Wed, 21 Jul 2010 15:03:57 +0000

Anglo-Swiss mining group Xstrata’s board has approved an investment of US$1.47bn to develop the Antapaccay copper project as a brownfield expansion to the Tintaya red metal mine in southern Peru’s Cuzco region. Peruvian authorities recently approved the project’s EInvironmental Impact Statement.

See http://www.bnamericas.com/news/mining/Xstrata_approves_US*1,47bn_Antapaccay_copper_project/195034239.

Critical report on the Cerrejon Coal mine in Colombia

Richard — Wed, 21 Jul 2010 14:55:07 +0000

The Cerrejon mine is owned by three London-listed companies: Anglo American, BHP Billiton and Xstrata. In May 2010 Danish NGO DanWatch issued a report on the alleged negative social & environmental impacts of the mine, which supplies coal to DONG Energy and Vattenfall.

For the report and the companies’ responses, see http://www.business-humanrights.org/Documents/DanWatchCerrejon.

London Calling reviews Australian taxation – the tax is dead, long live the tax…

Richard — Wed, 21 Jul 2010 14:49:58 +0000

The net result of the recent heated debate in Australia over whether mining companies should pay considerably more tax, led to the ousting of the prime minister after millions of dollars were subscribed to a high-profile advertising campaign by the big mining companies (Anglo-Australian entities such as BHP Billiton, Rio Tinto and Xstrata chief among them).

This was backed by real, or vacuous threats, to quit the country’s shores – or at least withdraw from some key projects.

In fact, none of the companies have made concrete moves to do so, while investors’ confidence in the industry, over the past 2 months, hasn’t appeared to be significantly dented. Although Australia’s fiscal policy has been in disarray for some time – not least following the September 2008 meltdown – the country is still the world’s biggest supplier of coking coal, alumina, lead and iron ore - the three global giants would have cut off big chunks of their noses, had they actually followed through on their threats.

The compromise measures, now apparently agreed between miners and government, are in some respects not significantly different from the discredited “Super Profits” tax, except insofar as applying a tax rate of 30%, as opposed to 40%, charging at a lower “trigger point”, and with fewer companies subject to the new measures.

The new tax will be called a “Resource Rent” – a well-worn concept, no doubt calculated to provoke far less anxiety than the spectre of companies ripping off the state and people and walking away with billions off ill-gotten gains.

In reality, however, while the former proposal was estimated to recoup Aus$12 billion in revenue for the government by 2012, the revised taxation regime is likely to garner only a little less (around Aus$10-11 billion).

Mind you, there’s quite a lot to which the “missing” billion might have gone. Not least in increased dues to the Aboriginal communities who have had to sacrifice an increasing amount of their territory and resources to mining over the past 25 years.

See http://www.minesandcommunities.org/article.php?a=10228.

Australian mining tax update

Richard — Wed, 07 Jul 2010 13:42:28 +0000

Australia, miners strike tax compromise

The “super profits tax” has been discarded in favour of a resources rent tax that has been endorsed by key global miners including London-listed BHP Billiton, Rio Tinto and Xstrata.

See http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=107295&sn=Detail.

Mining industry roars back to life

Share prices soared and hundreds of millions of dollars worth of stalled investments got the green light after Prime Minister Julia Gillard announced a deal on the controversial resources tax.

See http://www.abc.net.au/news/stories/2010/07/02/2943091.htm.

Xstrata and partners in the Philippines

Richard — Tue, 29 Jun 2010 16:28:21 +0000

Indophil seeks new buyer for Tampakan copper-gold project

INDOPHIL Resources is seeking a buyer for its stake in the Tampakan copper-gold project in the Philippines after China’s Zijin Mining Group abandoned a takeover bid for the company. There has been speculation that Swiss-based, London-listed miner Xstrata, which owns the remaining 62.5 per cent stake in Tampakan and in 2008 tried unsuccessfully to take over Indophil, may be interested in purchasing Indophil’s stake in the joint venture.

See http://www.heraldsun.com.au/business/indophil-seeks-new-buyer-for-tampakan-copper-gold-project/story-e6frfh4f-1225884234664.

Philippine province bans open-pit mining – affects Xstrata

Richard — Sat, 26 Jun 2010 08:54:55 +0000

The governor of the Philippine province of South Cotabato – where large-scale mining was formerly given high priority – has introduced legislation to ban it, thus joining provinces in Marinduque, Mindoro and Palawan. The government’s mining bureau is arguing that national law supersedes provincial law, although this is an issue that the courts may well decide. The ban will have the most profound implications for Xstrata-Zijin’s Tampakan mine, recently the target of vigorous protests on Earth Day.

See http://www.minesandcommunities.org/article.php?a=10174.

Nickel: A breakthrough in China, another blow for many others

Richard — Sat, 26 Jun 2010 08:33:03 +0000

A potentially highly significant “development” has just been announced in China.

At first sight, it relates only to changes in methods of refining nickel, primarily in the manufacture of stainless steel. But, if verified, the process has profound (and negative) implications, both for the health of Chinese people, and for that of communities in Indonesia and the Philippines. Already saddled with proposals for massive new conventional nickel mines, citizens in these two south-east Asian countries may now well ask: will this technology displace the old, only to threaten different dangers with the new?

The development also has profound implications for London-listed BHP Billiton and Xstrata, both heavily invested in nickel.

See http://www.minesandcommunities.org/article.php?a=10184.

Xstrata burning coal to mine copper and gold

Richard — Wed, 09 Jun 2010 10:17:22 +0000

SAGITTARIUS Mines Inc. is allotting up to $1 billion in putting up its dedicated 400-megawatt power plant for the Tampakan copper and gold mining site in South Cotabato in the Philippines. Peter Forrestal, president of Sagittarius Mines and executive general manager for project development of Xstrata Copper in the Asia-Pacific region, said their target is to have the coal-fired power plant operational by 2015 when the mining company hopes to begin production. Sagittarius is investing $5 billion for the Tampakan site, which is estimated to contain 13.5 million tons of copper and 15.8 million ounces of gold. Forrestal said an important component of the project is the dedicated power plant.

London-listed Xstrata, together with Indophil, owns a controlling 40-percent stake in Sagittarius Mines. Xstrata represents 62.5 percent of the 40-percent share, with the rest owned by Indophil.

See http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=26038:smi-to-build-1-b-power-plant-for-its-mining-site&catid=23:topnews&Itemid=58.

BHP Billiton, Rio Tinto and Xstrata continue tax campaign

Richard — Wed, 09 Jun 2010 10:13:06 +0000

Rio Tinto worried Australian tax may give other countries ideas

Prime Minister Kevin Rudd’s proposed ‘super tax’ on miners is still causing the industry to vent its collective spleen in anger.

Xstrata have added to the list of companies promising to cancel expansion if the tax pushes through.

Rio Tinto is one of the latest companies to comment. At their delayed Australian AGM, CEO Tom Albanese told shareholders, “we are concerned that other countries may see this as something they want to try out, too.” That sounds almost like a challenge to other countries, many of whom have been reflecting on this issue. If other countries take this up as well, then where will the companies have to flee to? It appears that mining legislative issues are switching from the 90s ‘race to the bottom’ to a ‘race to the top’.

See http://www.minesandcommunities.org/article.php?a=10151.

See also: Australian mining tax “deeply flawed” BHP Billiton

According to the transnational miner, the Australian government needs to go back to the drawing board on its proposed tax. See http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=105811&sn=Detail&pid=92730.

Even the world’s biggest mining companies need Chinese cash

Richard — Tue, 01 Jun 2010 11:04:29 +0000

Assessing a new era for the global mining sector, where even the Western World’s biggest miners need Chinese capital: analysis by Barry Sergeant of Mineweb.

See http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=105361&sn=Detail&pid=92730.

Residents’ fears over Australian coal mines

Richard — Wed, 26 May 2010 13:54:51 +0000

Once more the issue arises of the health impacts from coal mining on local communities. In this case it is the coal mines of Australia’s Hunter Valley (where around 70% of the capacity is mined by subsidiaries of Anglo American, BHP Billiton, Rio Tinto and Xstrata).

See http://www.minesandcommunities.org/article.php?a=10118.

Collahuasi unlikely to recover lost production, expansion could be delayed

Richard — Wed, 26 May 2010 13:31:03 +0000

Copper production lost at the Collahuasi mine in northern Chile’s region I as a result of an ongoing strike by subcontracted workers will not likely be recovered.

The mine is controlled by Anglo-Swiss Xstrata and London-based Anglo American, both with a 44% stake.

See http://www.bnamericas.com/news/mining/Collahuasi_unlikely_to_recover_lost_production,_expansion_could_be_delayed/187880690.

Multinationals ‘on trial’ for mining activities in Colombia

Richard — Tue, 18 May 2010 14:31:20 +0000

Several multinational companies with activities in Colombia were ‘on trial’ in Madrid last weekend during the Permanent Peoples’ Tribunal. Most cases deal with violations of human rights and liability for environmental degradation. They included the three London-listed companies which own the Cerrejon Coal mine: Anglo American, BHP Billiton and Xstrata.

See http://colombiareports.com/colombia-news/news/9737-multinationals-on-trial-for-mining-activities-in-colombia.html.