samedi 31 décembre 2016
Science décalée : le smartphone transforme la main humaine
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Les plus vieilles momies du monde sont chiliennes et sont passées au scanner
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Arctique : le déclin de la banquise pourrait dégrader le climat
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Ebola : enfin un vaccin efficace ?
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vendredi 30 décembre 2016
Freeport unloads California onshore oil assets for $592 million
Freeport-McMorRan (NYSE:FCX) has divested another portion of its substantial oil and gas assets as the number one publicly-held copper producer continues on a path of debt reduction.
The Phoenix-based company announced today that it completed the previously announced sale of its onshore California properties to Sentinel Peak Resources California LLC for $592 million in cash, before closing adjustments. Under the agreement, FCX has the right to receive additional proceeds of $50 million per year in each of 2018, 2019 and 2020 if the price of Brent crude oil averages $70 per barrel or higher in that calendar year.
Like many of its peers Freeport has been struggling to get its debt load under control which ballooned to $20 billion following the ill-timed acquisition of the oil and gas assets three years ago not long before the price of crude started its descent from $100+ a barrel levels.
The news follows an earlier, even larger divestment of Freeport's offshore oil and gas properties covered in September by MINING.com. In that transaction, finalized mid-December, Anadarko Petroleum bought Freeport's deepwater Gulf of Mexico assets from for $2 billion.
The company says that following completion of the deepwater Gulf of Mexico and onshore California sales, its oil and gas assets includes onshore oil and natural gas production in South Louisiana and on the Gulf of Mexico shelf, oil production from offshore California, and natural gas production from the Madden area in Central Wyoming.
Like many of its peers Freeport has been struggling to get its debt load under control which ballooned to $20 billion following the ill-timed acquisition of the oil and gas assets three years ago not long before the price of crude started its descent from $100+ a barrel levels. This past year, FCX has sold a whopping $6.6 billion in assets.
In February Freeport sold a 13% stake in its Morenci mine, in Arizona, for $1 billion to Japan's Sumitomo. Freeport is also locked in negotiations with the Indonesian government to sell an additional 10% in the iconic Grasberg mine, but the company hasn't been able to narrow the gap with the Asian nation on a price.
In May FCX announced the sale of its Tenke Fungurume copper mine in the Democratic Republic of the Congo to China Molybdenum (CMOC) for up to $2.65 billion. However Gecamines, a DRC state-owned mining company, is taking Freeport and Canada’s Lundin Mining (TSX:LUN) — which through a Bermuda-based company indirectly owns 24% of Tenke — to international courts. Gecamines is demanding, among other things, that any amendments to the indirect ownership of Tenke be blocked unless authorized by the state miner.
Tenke, which cost $3 billion to build, holds one of the world’s largest known copper resources.
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At least 12 dead after coal mine collapse in India, Myanmar jade mine landslide
Two separate mining accidents in India and Myanmar have together claimed the lives of a dozen miners, though the death toll may soon rise as the search for bodies continues.
In India, Aljazeera reported at least 10 people were killed and up to 50 more are trapped after a section of a coal mine collapsed in the state of Jharkand.
Around 23 miners and dozens of vehicles were buried when about 250 metres of the Lalmatia open-pit mine collapsed as the workers were heading towards the exit, Thursday evening. Hundreds of workers frantically searched for the missing overnight but search efforts had to be delayed this morning due to bad weather, including fog.
Around 23 miners and dozens of vehicles were buried when about 250 metres of the Lalmatia open-pit mine collapsed as the workers were heading towards the exit, Thursday evening
.
The mine is operated by Eastern Coalfields Limited, a state-controlled company. Aljazeera notes that Jharkand is one of the poorest Indian states with nearly 40% living under the poverty line, but is also rich in mineral wealth, accounting for nearly a third of the nation's coal deposits.
An earlier incident occurred late Wednesday in Myanmar, where a 122-metre cliff of debris and waste soil at a jade mine collapsed, causing a landslide. Initial reports of eight people injured changed to two confirmed fatalities on Friday. Authorities said they had to suspend the search for survivors due to the potential of other nearby waste piles collapsing, according to a news report from Turkey-based Anadolu Agency. At least 30 people are missing and feared dead.
The remote jade mining region in the Township of Hpakant uncovers around 90% of the world's greenstones, but accidents are common.
Miners work under extremely dangerous conditions, particularly those who pick through churned-up material from heavy machinery on unstable hillsides.
A similar landslide occurred in May, causing over a dozen deaths, and last November at least 115 people were killed, in the worst such accident in recent memory.
The Myanmar Red Cross says over 300 miners were killed in 38 jade mine landslides in Kachin State last year.
Along with being dangerous, jade mining – which was controlled by Myanmar's military and elites during the final years of junta rule (the country has a democratically elected government as of March 2016 – is also key driver of conflict between the government and ethnic Kachin rebels, funding both sides in a war that has killed thousands and displaced around 100,000 since 2011.
Most of the jade extracted in Myanmar is smuggled into China, where the so-called "stone of heaven" is considered a symbol of virtue and power, and it is believed to ward off evil spirits and improve health.
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CHART: Gold mining stocks breakout 2016
Gold ended the last trading day of 2016 on a sour note, but the precious metal should at least enter the new year having broken the downtrend in place since the election of Donald Trump.
In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,1152.90 an ounce, down $5.20 from Thursday's close.
Gold ends 2016 with a gain of 8.6% after touching six-year lows at the end of 2015. But bears had the better of it in the second half of the year – the metal declined by more than 16% after hitting an intra-day high of $1,377 on July 6.
It's the first annual gain since 2012. For the year the average gold price came in at $1,247 an ounce, compared to 2015's average of $1,160, but nowhere near 2012's $1,689.
The stock of the world's top gold miners outperformed the metal by a huge margin with even large cap counters like Barrick Gold and Newmont Mining doubling or nearly doubling in value since the start of the year:
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Gold price breaks 3-year losing streak
Gold ended the last trading day of 2016 on a sour note, but the precious metal should at least enter the new year having broken the downtrend in place since the election of Donald Trump.
In late afternoon trade on the Comex division of the New York Mercantile Exchange gold for February delivery was changing hands for $1,1152.90 an ounce, down $5.20 from Thursday's close.
Gold ends 2016 with a gain of 8.6% after touching six-year lows at the end of 2015. But bears had the better of it in the second half of the year – the metal declined by more than 16% after hitting an intra-day high of $1,377 on July 6.
While the Dow Jones never quite breached the 20,000 mark, the blue-chip index enjoyed its biggest annual gain since 2013
It's the first annual gain since 2012. For the year the average gold price came in at $1,247 an ounce, compared to 2015's average of $1,160, but nowhere near 2012's $1,689.
Gold came under huge pressure after the US elections on November 8 as investor money rotated out of gold and into stocks.
While the Dow Jones Industrial never quite breached the 20,000 mark, the blue-chip index enjoyed its biggest annual gain in three years, adding 13.4%. The broader S&P 500 index also beat gold (but not by much) with a 9.5% return for the year.
This 100-year chart of the Dow Jones index from Macrotrends tracks how many ounces of gold it would take to buy the Dow over any given month.
Previous cycle lows have been 1.9 ounces in February of 1933 and 1.3 ounces in January of 1980 when gold in inflation-adjusted terms hit an all-time high of roughly $2,400 an ounce.
When the nominal price of gold hit a record high above $1,900 in August 2011 the ratio was 6.4. That compares to highs around 40 between mid-1999 when gold reached lows of $250 an ounce and mid-2001.
On Friday the Dow-Gold ratio was at 17.1 meaning gold is now cheapest compared to equities since October 2007.
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Coking coal price ends 2016 with sharp drop
While the price of futures trading in China and Singapore were swinging wildly in recent weeks, the benchmark for the seaborne market underwent a more measured correction after spending much of November above $300.
But now it seems the correction is turning into a rout and the multi-year high of $308.80 for PHCC (Australia free-on-board premium hard coking coal tracked by the Steel Index) may have been the peak.
On Friday the price dropped 5.1% to $226 0 a tonne, the lowest since October 13 and one of the biggest declines on record. In 2011 floods in key export region in Queensland saw the coking coal price touch an all-time high $335 a tonne.
Still, the steelmaking raw material is up 178% in value in 2016 and quarterly contract negotiations between producers and steelmakers could turn out to be the best indicator of where coking coal is heading.
In a recent report TSI said the the low volatility seen in the spot market (the price hovered at its high for nearly three weeks) was a sign that going into quarterly negotiations Japanese steel mills were "wary of making panic buys during this period in order to avoid pushing the indices higher".
There was a more than $100 differential between the spot price average and the fourth quarter contract benchmark. For Q1 contracts, that gap would've all but closed.
NOW READ: 6 reasons coking coal price will tank
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Une seconde de plus en 2016 : quand la Terre ralentit
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Les plus belles images de science de 2016
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Où risquez-vous le plus d'être foudroyé sur Terre ?
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Vendée Globe : le voilier zéro émission de Conrad Colman dans le top 10
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Grippe aviaire : un cas inédit de transmission du chat à l’Homme
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jeudi 29 décembre 2016
Le cristal d'électrons de Wigner existe bel et bien
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Australian white metal hunter up 11% after buying Bowdens
Australian silver explorer Silver Mines (ASX:SVL) is now all-in as it seeks to develop the continent's largest undeveloped silver deposit- the Bowdens Silver Project.
The Sydney-based company completed the final $4 million payment on Bowdens, thus buying out Kingsgate Consolidated (ASX:KCN) for full ownership of the deposit located in central New South Wales, near Mudgee.
Kingsgate Consolidated is the same company that owns the Chatree gold mine, Thailand's only producing gold operation, which is scheduled to close by year-end.
Making the final payment of the $25 million purchase price appealed to stockholders, who bid up the stock price 11.76% Thursday, to $0.18 a share.
According to Silver Mines, Bowdens is the highest-grade, undeveloped silver project in Australia, with measured and indicated resources of 8.4 million ounces graded at 269 grams per tonne silver.
"The recently consolidated Project area comprises 1,654 square kilometres (408,000 acres) of titles covering approximately 80 kilometres of strike of the highly mineralised Rylstone Volcanics," Silver Mines describes on a project page.
Drill results received earlier this month include 24 metres at 85 g/t silver, 0.19% zinc and 0.20% lead (95 g/t silver equivalent) from 118 metres.
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Former Chinalco boss sent to prison for 16 years
A Chinese court has sent a strong message to corporate executives who have been seeing playing fast and loose within the rules of boon-times capitalism in China.
Sun Zhaoxue, the former president of state-owned enterprise Chinalco, was found guilty of graft and corruption and sentenced to 16 years in prison. The sentence was handed down by The Tieling Municipal Court Intermediate People’s Court, which found that Sun "had amassed a fortune in property through corruption during his lengthy time in the Chinese resources and commodities industry," The Australian reported today.
Another media outlet, The Global Times, reportedly said Sun and his wife “accepted” 38.8 million yuan of illegal property from 2005 to 2014, and the pair could not explain holding another 9.7 million yuan in property holdings. As part of his official punishment, Sun's assets including his large property portfolio and money from bribes would be seized, according to Chinese state media.
Chinalco, of course, is connected to Simandou in Guinea, since the company up to the end of October was partnered with Anglo-Australian megaminer Rio Tinto (LON:RIO) to develop the world's largest mining project – through joint venture Chalco. But in July Rio Tinto said it had decided to put its Simandou project on ice due to the iron ore glut that is keeping a lid on prices – despite delivering a bankable feasibility on the project in May. Then on Oct. 28 Rio sold its 46.6% stake in Simandou to Chinalco, potentially opening up a new path to development for the $20 billion iron ore mine. The deal, worth between $1.1 billion and $1.3 billion, ups Chinalco's stake to nearly 95%.
The Australian reports that Sun and Sam Walsh, Rio Tinto's former chief executive, worked closely together, including a 2014 memorandum of understanding between Chinalco and Rio Tinto to develop the third and fourth phases of Simandou.
Last month Rio Tinto, the world's second largest mining company, dismissed two of its executives after launching a probe into a payment made to an external consultant over Simandou.
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Kumtor good to mine through 2017
Centerra Gold (TSX:CG) has been given the okay by Kyrgyzstan to operate its Kumtor gold mine throughout 2017.
The Toronto-based company said on Thursday it has been granted the necessary permits and approvals for its 2017 mine plan. The approvals include the industrial safety and subsoil expertise, the environmental expertise, the 2017 maximum allowable emissions permit and waste disposal permits. Kumtor routinely discharges water from its tailings facility starting in the spring, and Centerra will need prior approval for that to happen.
Kumtor Gold Company (KGC) continues to be subject to an interim order that bans it from taking any actions relating to certain financial transactions, including transferring property or assets, declaring or paying dividends or making loans to Centerra.
But while the weather seems clear for sailing as Centerra embarks on another year of operations at Kumtor, it would not come as a surprise to see storm clouds brewing.
Earlier this year a court ruled that Centerra's local subsidiary, Kumtor Operating Company (KOC), must pay about $98 million in fees related to their mine waste. That was on top of an earlier court decision ordering Kumtor, the country's biggest gold mine, to pay a $10,000 fine. There are also corporate legal complications that prevent Centerra from flowing money from its subsidiary.
Kumtor Gold Company (KGC) continues to be subject to an interim order that bans it from taking any actions relating to certain financial transactions, including transferring property or assets, declaring or paying dividends or making loans to Centerra.
While such order does not prohibit KGC from continuing to use its cash resources to operate the mine, it does mean that all the cash Kumtor generates continues to be held in KGC and is not being distributed to Centerra, the miner said.
Such order is based on the claims that some of the company’s senior managers conducted improper commercial transactions. Centerra has repeatedly said it “strongly disputes” such accusations and believes they violate fundamental investment protections contained in the 2009 agreements governing the Kumtor project.
The operation has been the focus of a number of disputes between the company and the Kyrgyz government.
Kumtor has produced around 10 million ounces since inception and remaining reserves are 5.6 million ounces. In November Centerra said it is increasing its gold output guidance for the mine to 520,000 to 560,000 ounces and lowering all-in sustaining cost forecast to $666 – $718 per ounce.
Despite the rosier picture for Kumtor, Centerra has been trying to distance itself from its problems in Kyrgyzstan by shopping for assets in safer jurisdictions. This past summer the company bought out U.S.-based Thompson Creek Metals (TSX:TCM) including the Mount Milligan copper-gold mine in British Columbia, Canada. Centerra also owns a mine in Mongolia.
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Gold mining stocks in huge rally
Gold bulls were enjoying their best day in nearly two months on Thursday as the metal fights back following a relentless sell-off since the election of Donald Trump as the next US president.
Gold for delivery in February, the most active contract on the Comex market in New York, hit a high of $1,160.60 an ounce in lunchtime trade, up $19.70 or 1.7% from yesterday's close.
If the metal can close at these levels it would be the best one-day performance since November 2. Gold is now up more than $36 an ounce or more than 3% since hitting an 11-month low on December 15.
Gold's jump saw investor piling back into gold mining stocks with across the board gains for the sector's majors.
Barrick Gold (NYSE:ABX, TSE:ABX) jumped 6.3% with the stock trading at a seven-week high. Barrick, the world's number one gold producer in terms of output, has also regained its crown as the most valuable gold mining company after briefly losing it to Newmont Mining during the post-US election drop in the gold price.
Volumes were heavy given overall holiday-thin trading with more than 23 million shares in Barrick exchanging hands making it the third most active stock on the NYSE
Year to date Toronto-based Barrick has more than doubled in value and is now worth $19.4 billion in New York. Volumes were heavy given overall holiday-thin trading with more than 23 million shares in Barrick exchanging hands making it the third most active stock on the NYSE.
The world's number two producer of the metal, Newmont Mining (NYSE:NEM) also raced ahead more than 6% in afternoon trade bringing the Denver-based company's gains for the past week to 13.8%. Newmont, the only gold company that forms part of the S&P500 index, is up 94% in value in 2016 for a market capitalization of $18.6 billion.
Goldcorp (TSE:G, NYSE:GG) shares put in a more modest performance, trading up 4.4% for market worth of $12 billion in New York. Year-to-date the Vancouver-based company has underperformed its peers with a 19% gain. Goldcorp is expected to produce between 2.8 million and 3.1 million ounces in 2016, placing it fourth behind AngloGold Ashanti in terms of output.
American Depository Receipts of AngloGold Ashanti (NYSE:AU) gained 5.9% for a market value of $4.4 billion on the NYSE. The Johannesburg-based company's stock boasts a 54% rise in 2016.
On the TSX gold miners made up seven of the top 10 shares in volume terms with B2Gold taking the number slot
ADRs of Australia's Newcrest Mining (OTCMKTS:NCMGY) trading in New York added 5%. The world's sixth largest gold producer is worth $10.7 billion after a 50% advance in US dollar terms this year. Africa-focused Randgold Resources (NASDAQ:GOLD), jumped 4% and is now worth $7.6 billion after erasing much of its post-Trump losses.
Toronto-based Agnico Eagle Mines (TSE:AEM, NYSE:AEM) market capitalization was up 6.6% to $9.9 billion in New York. Fellow Canadian counters Kinross Gold (TSE:K, NYSE:KGC) gained 3.9% bringing its 2016 advance to 78% and its market worth back above $4 billion while Iamgold soared by just under 8% affording it a $1.8 billion market cap.
Kinross and Iamgold stock trading in New York were the fifth and sixth most active shares on the NYSE. On the Toronto Stock Exchange gold miners made up seven of the top 10 shares in volume terms with B2Gold Corp (TSX:BTO) taking the number slot with 6.2 million shares changing hands. Vancouver-based B2Gold jumped 10% and is now worth C$3.2 billion or US$2.4 billion.
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Gold price jumps most since Trump election
Gold bulls were enjoying their best day in nearly two months on Thursday as the metal fights back following a relentless sell-off since the election of Donald Trump as the next US president.
Gold for delivery in February, the most active contract on the Comex market in New York, hit a high of $1,160.60 an ounce in lunchtime trade, up $19.70 or 1.7% from yesterday's close.
If the metal can close at these levels it would be the best one-day performance since November 2. Gold is now up more than $36 an ounce or more than 3% since hitting an 11-month low on December 15.
Hedge funds scrambling to cover these short positions helps to explain today's rise in heavier than usual holiday trading volumes
In July hedge funds or so-called managed money investors in gold futures and options built up long positions – bets on a rising price – to 28.7 million ounces, the highest on record.
But starting in September hedge funds started cutting back on bullish bets, and only accelerated dumping of the metal since November 8. According to the CFTC's latest weekly commitments of traders data net longs are down more than 80% from their highs.
Significantly gross shorts – bets that gold could be bought back cheaper in future – have doubled since the Trump victory. Hedge funds scrambling to cover these short positions helps to explain today's rise which is also happening in heavier than usual volume, especially during holiday season trading.
Source: CME Group
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Cancer du cerveau : un homme traité avec succès par immunothérapie
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L'Autopilot d'une Tesla anticipe un accident sur autoroute
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Exo-Brake : pour envoyer un colis depuis l'espace
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Étonnant : les traces de la première bouillie dans une poterie vieille de 10.000 ans
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Gliese 710, l'étoile qui fonce vers notre Système solaire
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Le blob Physarum : une cellule géante sans cerveau qui apprend
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Concours : gagnez de très beaux livres sur les sciences avec Dunod !
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Géométrie non commutative et physique selon Alain Connes (3/3)
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Le guépard court à sa perte
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mercredi 28 décembre 2016
Autour de l'étoile de Tabby, « KIC 8462852 », peut-être pas d'extraterrestres, mais un mystère à l'intérieur
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More high-grade uranium found at upcoming producer Canyon Mine
An underground uranium and copper mine in Arizona looks more valuable thanks to new drill results released today.
Energy Fuels Inc. (NYSE MKT: UUUU; TSX: EFR), the largest conventional uranium producer in the United States, said it intercepted additional high-grade areas of uranium mineralization at its Canyon Mine. The new intercepts, which expand a mineralized zone, included 28.5 feet of mineralization with an average grade of 2.41% U3O8, at the fully permitted mine in northern Arizona.
Drilling from 1,230 feet below surface started in November, and so far 5,922 feet have been drilled out of 35 drill holes, Energy Fuels said in a press release, adding it plans to drill another 11,000 feet in the New Year. The company started shaft sinking a year ago at Canyon, which is the highest-grade uranium mine in the US.
Today's drill results follow on high-grade copper results published in October, which according to uranium analyst Rob Chang should bring down the costs of the operation.
The Canyon uranium project is slated to begin production next year, with ore to be shipped to Energy Fuels’s White Mesa mill for processing. It holds inferred resources equivalent to 1.6 million pounds of uranium, at an average grade of .98 % U3O8.
The Toronto-based company is an uranium and vanadium exploration and mine development firm with projects located in the states of Colorado, Utah, Arizona, Wyoming and New Mexico.
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Norilsk Nickel buys Soviet-era copper concentrate for $1.1 billion
One of Russia's largest mining companies has dropped a stash of roubles on copper concentrate that dates back to the Cold War.
Reuters reported on Wednesday that Norilsk Nickel (Nornickel) – one of the world's largest producers of nickel and palladium – purchased 67.5 billion (US$1.1 billion) roubles worth of copper concentrate from Russian state holding company Rostec. The amount of concentrate was not disclosed but according to Reuters Norilsk's Polar division produced it during Soviet times. The product was stockpiled and held by the government before it was released to Rostec sometime this year:
The payment will be made in several tranches over several years, an official with Nornickel said, adding that the concentrate also contained precious and base metals.
Rostec Chief Executive Sergei Chemezov told reporters the concentrate was being kept at Nornickel's Polar division while the mining firm said it would use it at its copper plant there.
Nornickel Group is divided into the Polar Division of MMC Norilsk Nickel, located above the Polar Circle on the Taimyr Peninsula, and Kola Mining and Metallurgical Company. The group also owns Norilsk Nickel Harjavalta, which is the only only nickel refining plant in Finland.
Earlier this year a river near the city of Norilsk in Siberia, the eponymous home of the world's top nickel and palladium producer, turned blood red possibly caused by a break in the mining company's slurry pipe carrying concentrate to the plant.
Norilsk is a top 10 mining company with its ADRs trading in New York affording the company a $25 billion market value. The company produces roughly a fifth of the world's nickel, mainly used in steelmaking, and half the world's palladium used in autocatalysts to reduce emissions. Its operations in Russia, Australia, Botswana and South Africa also produce significant quantities of copper and cobalt, platinum, gold and silver as byproducts.
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SLIDESHOW: Mining on the mend – 2016 year in review
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The poorly-built, poorly-maintained dam that will kill hundreds of thousands if it fails
The New Yorker profiles the Mosul Dam in Iraq, which was hastily built on poor foundations and is not being maintained.
Completed in the 1980s by Saddam Hussein, the dam was constructed on a foundation of soluble rock since the Euphrates River within Iraq lacked suitable building sites. Politics, expediency and fear of reprisal pushed the project forward. The dam requires continuous maintenance to prevent the rock from sinking and breaking apart. However, maintenance has been neglected due to previous war sanctions and the dam is now on the front lines of the war with ISIS, which briefly occupied the structure.
If the dam fails, the result would be catastrophic:
If the dam ruptured, it would likely cause a catastrophe of Biblical proportions, loosing a wave as high as a hundred feet that would roll down the Tigris, swallowing everything in its path for more than a hundred miles. Large parts of Mosul would be submerged in less than three hours. Along the riverbanks, towns and cities containing the heart of Iraq’s population would be flooded; in four days, a wave as high as sixteen feet would crash into Baghdad, a city of six million people. “If there is a breach in the dam, there will be no warning,” Alwash said. “It’s a nuclear bomb with an unpredictable fuse.”
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Les 10 cas médicaux les plus surprenants en 2016
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Proxima du Centaure, l'étoile la plus proche du Soleil, appartient bien au système triple Alpha Centauri
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Method-2, le robot anthropoïde géant fait ses premiers pas
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JWST : le successeur du télescope spatial Hubble passe avec peine ses derniers tests
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Grâce à l'effet Seebeck, la chaleur perdue autour de nous pourrait devenir électricité
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mardi 27 décembre 2016
Avec la disparition de Vera Rubin, la matière noire est orpheline
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Peabody announces plan to emerge from bankruptcy
Eastern US coal miner, Peabody Energy, filed a reorganization plan last week to emerge from bankruptcy.
The plan was filed with the U.S. Bankruptcy Court for the Eastern District of Missouri. Peabody is targeting emergence around the beginning of the second quarter of 2017.
"Today's proposed plan is an important achievement in our path toward emergence," said Peabody Energy President and Chief Executive Officer Glenn Kellow in a news release.
"The plan charts Peabody's course forward and reflects an enormous amount of work by the company and multiple creditor groups to advance a proposal that has broad consensus, maximizes the value of the enterprise and paves the way for a sustainable future. We look forward to moving toward confirmation of the plan."
The company is negogiating with three key stakeholder groups—the First Lien Creditors, the Second Lien Group and the Unsecured Noteholder Group. It is also updating its projections given changes to the industry and commodity prices.
"Eight months ago, we set out on a path to strengthen the balance sheet and position the company for long-term success amid historically challenged coal industry fundamentals," said Kellow.
"While we still have outstanding issues to resolve prior to emergence, this plan demonstrates that Peabody retains an unmatched asset base, leading U.S. platform, substantial Australian thermal and metallurgical coal business, and a team of skilled employees with a fundamental commitment to lasting values. We're pleased to reach this important step as we move to the next phase of Peabody's Chapter 11 process. And we appreciate all of our employees' actions in continuing to manage safe, low-cost operations and deliver the results that can best ensure our success."
The coal giant filed for bankruptcy in the spring.
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Toshiba drops 15% after flagging multi-billion-dollar nuclear writedown
Toshiba is facing an impairment charge of several billion US dollars after its nuclear project completion costs will far surpass original estimates due to "increases in key project parameters," says the company in a news release.
The news sent Toshiba tumbling 15% on the Tokyo Exchange.
Westinghouse, a Toshiba subsidiary, acquired CB&I Stone & Webster in December 2015. CB&I is one of the largest providers of commercial nuclear plant maintenance services.
Toshiba says the impairment is still an estimate and it will revise its financials when it fully values the impact.
The Japanese conglomerate, which has been dogged by past nuclear write-downs and accounting scandals was looking to its nuclear and semiconductor business to boost growth.
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Stockpools & Kitco put the fun back in investing
The boom and bust mining cycle can be a daunting obstacle for investors new to the world of mining and mineral exploration, but what if a potential investor could play the markets without risking their money? And at the same time, learn about the companies and the markets they might consider splashing a bit of cash on?
That was the genesis of the idea behind Stockpools, an online portal for stock picking that mimics the concept of fantasy sports like fantasy football and hockey.
“Stockpools is pleased to partner with Kitco, Red Cloud Klondike Strike Inc. and the featured companies for our biggest contest so far. Our objective is simply to educate players and highlight the various investment opportunities in the precious metals sector while providing a unique experience for the user”: Stockpools President Anil Mall
Since it began offering contests in 2012, the Vancouver-based startup has given away over $100,000 in prizes at no cost to participants, and has been growing in step with a surging junior resource market that has rekindled on the back of stronger metals prices after a tough few years. Its latest contest, co-sponsored by Kitco and Red Cloud Klondike Strike Inc., starts right after the New Year and players have been flocking to the site to register their picks in anticipation of bagging a share of the $12,000 in prize winnings, denominated in gold bullion.
Stockpools is the only site in the world to offer investors a risk-free platform to build a competitive portfolio and track their performance over the course of a contest (there are competitors, but unlike Stockpools, those sites are not free to play). Players can win gold bullion and cash prizes should their portfolio outperform the competition.
“We thought it was a good idea to be able to educate the investors without having them lose their risk capital – to help them to build confidence within the different sectors, and the companies therein, especially those up-and-coming,” says President Anil Mall, who was brought on board earlier this year by Stockpools founder and CEO Neil Currie, formerly of real-time stock quote website VantageWire.
“We bring investors in front of the featured companies, establishing interest in both the platform and the companies themselves,” adds Mall, whose resume includes stints with prospect generator Manex Resource Group and investment conference organizer Cambridge House.
So how does Stockpools work? Users simply set up a profile and choose the contest they want to enter. The contests include a mixture of Stockpools clients as well as up-and-coming companies. Users must make their picks before the contest starts, and may be allowed to trade their picks for the duration of the contest. The rules are different for each contest. At the end of the contest, the user whose portfolio gained the highest percentage wins the prize.
Since 2012 Stockpools has grown to over 9,000 users, with the majority of players in the millenial age range of 29 to 35. Most are in North America, though Stockpools has sent prizes worldwide.
Offered in partnership with Kitco Media and Kitco.com – the world’s largest precious metals web site –the Kitco 2017 Precious Metals Stockpicking Challenge starts January 3 and will run for nine weeks, culminating at the annual Prospectors & Developers Association of Canada (PDAC) conference in Toronto.
Participants will pick two companies in each of four categories and one company that trades over $1 on any North American stock exchange in the wildcard category. Players can trade their picks at the end of the week between market close on Friday until the market opens on Monday morning. New participants are welcome to join the contest during this time.
The contest will run between January 3 and March 3, 2017. The player who builds the top-performing portfolio on a percentage basis each week will be awarded half an ounce of gold bullion, with a total prize value of about $12,000, depending on the gold price. In the final week of the contest the top three players will each receive an ounce of gold.
Mall said Stockpools is happy to offer the contest in partnership with Kitco.com. With over 45 million monthly page views and a global reach, Kitco is one of the most recognized brands in precious metals and metals market information.
“Stockpools is pleased to partner with Kitco, Red Cloud Klondike Strike Inc. and the featured companies for our biggest contest so far,” he said, adding: “Our objective is simply to educate players and highlight the various investment opportunities in the precious metals sector while providing a unique experience for the user.”
Kitco said it is excited about participating with Stockpools.com in this fantasy stock-picking contest, which offers the site a chance to grow its user base, particularly among millennials:
“This partnership is bringing together a select group of companies in the precious metals resource space and giving our global audience an awesome opportunity to hone their trading skills on a risk-free educational platform. As a marketer, we are convinced that this stock picking challenge will engage and inspire participants to learn more about the resource industry and give them the chance to win real prizes in the form of weekly gold bullion rewards to top performers. Join now!”
The deadline to join the first round of the 2017 Precious Metals Stockpicking Challenge is 6 am (EST) Monday, Jan. 3, 2017. Enter at http://bit.ly/2ipfL1c All winners will be announced at the PDAC on Tuesday, March 7, 2017.
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Long-haul dump machines at the brink of autonomy
Despite ongoing advances miners still haven't crossed the hurdle of fully implementing automated underground vehicles and are opting for intermediate steps instead, according to a post by CIM Magazine.
One of the major hurdles to automating LHD machines was replacing human judgement required for filling a bucket. Researchers from Queens University, who partnered with Atlas Copco, found a way to monitor the force/velocity relationship between the loader and the muck pile.
In field tests Atlas Copco successfully applied the technology on its LHD machines. Clients were interested but were still not comfortable handing over full operations to the robots.
With the software to build an LHD machine that could finally haul, dump and load autonomously, Atlas Copco began discussing commercialization – and that is when the project hit a common glitch in mining: resistance to change. “When you look at the business case, it seems that very few totally autonomous machines are sold,” said Ola Pettersson [Atlas Copco's group manager for LHD applications]. “It is often difficult to convince clients to go for autonomous equipment. So we actually tweaked the project and decided a better path for us was to do something different and make it a load-assist function that can be added to any loader. We think this would be especially good when you run your loader with a radio remote controller.”
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Wind power equivalent to six nuclear power plants during Swedish storm
A hurricane-strength storm that swept through Sweden this week generated record wind power that topped at 5.7 million kWh during single hour, which is 0.5 million more than the previous record, says energy company Bixia (news release in Swedish).
Over the past three days wind power accounted for 26 percent of total electricity consumption, almost as much as six nuclear power plants, says Anders Enqvist, Director of Risk Management at Bixia.
Sweden currently has three nuclear plants with ten nuclear reactors in commercial operation, making it the only country in the world that has more than one reactor per million inhabitants, says the Swedish Institute.
In 2015 Sweden added 200 more wind turbines. More wind blows in Sweden during the winter.
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Une comète à observer dans le ciel d'hiver aux jumelles
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Nanotechnologie : une puce peut détecter 17 maladies dans votre haleine
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La relativité d'Einstein résiste aux tirs laser sur la Lune
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Espace : les 10 plus belles photos de 2016
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Le « blob », alias Physarum, n'a pas de cerveau mais il apprend... et enseigne
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Géométrie non commutative et physique (2/3) : dans les pas d'Heisenberg
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Casper, le poulpe fantôme : à peine découvert, déjà menacé
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lundi 26 décembre 2016
Exo-Brake : un parachute pour faire descendre des petits satellites
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Le risque de crise cardiaque fatale augmente durant les fêtes de fin d'année
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Des dinosaures qui perdaient leurs dents expliqueraient le bec des oiseaux
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La plus vieille cuisine du monde racontée par des poteries de 10.000 ans
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Revivez l'épopée de la Station spatiale internationale, de 1998 à aujourd'hui
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Biodiversité : découverte de 163 nouvelles espèces le long du Grand Mékong
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dimanche 25 décembre 2016
Dans une nanostructure, l'eau change d'état quantique...
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La Terre vue de l'espace : notre sélection photo de 2016
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Science décalée : des contes de notre enfance transmis depuis des millénaires
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Un sapin de Noël héberge jusqu'à 25.000 invertébrés !
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samedi 24 décembre 2016
Science décalée : ils veulent transformer l'eau en vin
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Noël serait une réalité... dans le cerveau
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vendredi 23 décembre 2016
CHART: Trump devastates top gold mining stocks
Gold eked out small gains not far above 11-month lows on Friday in thin pre-Christmas holiday trade as it attempts to build a base above the $1,130 an ounce level.
The price of gold has lost $200 an ounce since the election of Donald Trump (against almost universal consensus that a victory for the property tycoon would lead to a surge in the price).
After enjoying its best start to the year since 1979 with prices coming within sight of $1,400 in July, gold's gains in 2016 have now been trimmed to 6.8% or an underwhelming $70 an ounce.
Gold stocks made the most of Friday's lift in the gold price with gains for all major producers. Shares of top gold miners Toronto's Barrick Gold and Denver-based Newmont Mining enjoyed 3% gains on the day. Further down the rankings the bump was greater with South Africa's Sibanye Gold, a top ten producer, gaining 3.4% while Canada's Iamgold advanced 3.6% and Novagold 3.8%.
Despite Friday's positive movements, the damage to the sector since November 8 has been heavy with double digit losses for all the top producers (barring Moscow-based Polyus which is actually up 3.8% since then).
Together the top 12 listed gold mining companies in terms of output lost $18.8 billion in value since the US elections with Australia's Newcrest losing $3.5 billion alone. In percentage terms Sibanye was hardest hit with a near 40% decline, a move exacerbated by its ill-timed acquisition of Stillwater Mining, the only PGM producer in the US.
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Les momies les plus vieilles du monde ont été passées au scanner
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Supervolcan : une menace grandissante d'éruption à Naples, vraiment ?
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Contre le virus Ébola Zaïre, un vaccin serait efficace à 100 %
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Décoration de la maison : et voilà le papier peint numérique
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Un monde méconnu sous la banquise en Antarctique
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Géométrie non commutative et physique (1/3) : dans les pas d'Einstein
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L’alimentation à l’occidentale chez la mère peut entraîner l’obésité chez l'enfant
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jeudi 22 décembre 2016
Exploration humaine de la Lune : des tubes de lave géants pourraient accueillir une ville
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AuRico Metals snaps up prospect generator Kiska Metals for CAD$9.6 million
Aurico Metals (TSX:AMI) has added to its royalty portfolio and flagship B.C. asset through the acquisition of Kiska Metals Corporation (TSXV:KSK).
Under terms of the agreement announced today, Kiska shareholders will receive about 0.0667 of an AuRico common share plus CAD$0.016 in cash for each Kiska share held.
Through the tie-up, Toronto-based AuRico will obtain two copper-gold porphyry deposits in British Columbia, and other exploration properties in B.C., Alaska and Nevada. Kiska's Kliyul project is located approximately 50 km south of AuRico's 100%-owned Kemess Underground (KUG) Project.
Kiska's royalty portfolio consists of six existing royalties including royalties on the East Timmins and Boulevard properties operated by Kirkland Lake Gold (TSX:CRK) and Independence Gold (TSXV:IGO), respectively.
The results of an updated feasibility study for AuRico’s Kemess project were provided in a March 23 press release. The feasibility study contemplates the development of a low-cost panel caving operation to extract reserves over a 12-year mine life. Total life-of-mine production envisions 1.4 million ounces of gold, 573 million pounds copper and 4.5 million ounces of silver. The property is host to the former Kemess South (KS) Mine, the KUG deposit and the Kemess East (KE) deposit.
"This transaction presents a unique opportunity to expand our royalty portfolio with a focus on Canadian assets. We are confident that this transaction represents a significant value creation opportunity and we are very pleased to bring this transaction forward to the benefit of both sets of shareholders," said AuRico President and CEO Chris Richter.
Grant Ewing , President and CEO of Kiska, stated: "We are excited to enter into this agreement, as it offers Kiska shareholders an immediate and significant premium to the market, and results in excellent diversification for securityholders by combining an early stage portfolio of royalties and projects with a high-quality suite of paying royalties and an advanced development asset in Kemess."
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Big tech companies pledge to keep kids out of cobalt mines
The use of child labour to mine cobalt and other minerals in the Democratic Republic of the Congo (DRC) has recently been documented.
Now, two separate business groups focused on electronics supply chains have launched initiatives to try to stop children from mining cobalt in the DRC, where an estimated 60% of the metal used in lithium-ion batteries is found.
In a report, Amnesty International says it found children as young as seven working in dangerous conditions to extract cobalt — a vital component of lithium-ion batteries — in the DRC.
A story carried this week by The Washingon Post tells that Apple, HP, Samsung SDI, and Sony have joined an effort known as the Responsible Cobalt Initiative, led by the Chinese Chamber of Commerce for Metals, Minerals & Chemicals, and supported by the Organization for Economic Cooperation and Development (OECD):
Members of the initiative pledged to follow OECD guidelines for mining supply chains, which call for companies to trace how cobalt is being extracted, transported, manufactured and sold. Any abuses would require immediate correction.
Another group dubbed the Electronic Industry Citizenship Coalition rolled out a new “Responsible Raw Materials Initiative” which is looking at cobalt from the Congo, says the Post:
The EICC said companies need to expand scrutiny of their supply chains beyond the traditional four “conflict” minerals covered by U.S. legislation — tin, tungsten, tantalum and gold. These minerals, when taken from the Congo region, receive extra attention because of potential ties to funding militias.
Membership in the EICC includes Apple, Dell, Foxconn, Ford Motors and other companies, and 19 EICC-member companies have signed pledges to support the new initiative, [EICC vice president for social and environmental responsibility] BobMitchell said.
UNICEF estimates that there are approximately 40,000 children working in mines across southern DRC. Most of them do not go underground; instead, they perform a variety of tasks on the surface, including scavenging for ore and sorting extracted minerals.
Back in January human rights organization Amnesty International accused Apple, Samsung and Sony, among others, of failing to do basic checks to ensure children do not mine minerals used in their products.
In a report , the watchdog says it found children as young as seven working in dangerous conditions to extract cobalt — a vital component of lithium-ion batteries — in the DRC.
Based on publicly available investor documents and interviews with 87 people, Amnesty explains the mined cobalt is sold on to large mineral firms, such as Congo Dongfang Mining (CDM), a wholly-owned subsidiary of Chinese mineral giant Zhejiang Huayou Cobalt Ltd (Huayou Cobalt).
Those companies process the ore, before selling it on to companies in China and South Korea, where it’s used to make batteries. Amnesty International claims that large manufacturers, including Apple, Sony and Samsung, use parts that contain the cobalt obtained throughout that supply chain.
While many nations have rules that govern conflict minerals, cobalt is not considered one of them under a U.S. law passed in 2010. That ruling only lists gold, coltan, tantalum, tin and tungsten.
RELATED: This is how the Congo supplies 'conflict minerals' to the IT world
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Tiny Australian junior get permit for Greenland's first new mine
The potential for mining in Greenland is enormous, but since 2013, when the Nalunaq gold mine closed, the sprawling Arctic island with ties to Denmark has not approved any new mines. That could change though, thanks to a mining permit issued this week by the Greenland Government to Ironbark Zinc Limited (ASX:IBG), which is advancing one of the world's largest undeveloped lead-zinc deposits.
The permit gives Ironbark the right to explore and mine its Cirtronen Zinc-Lead Project for 30 years. The permit also comes with the condition that Ironbark enter into a net smelter royalty agreement with the government, that is 1% for the first two years of production and rises incrementally up to 2% in the fourth production year and 2.5% thereafter.
In 2013 Ironbark released a feasibility study showing the mostly-underground, room and pillar operation would have a capital cost of $429.3 million including contingency, and a minelife of 14 years.
"We are proud and delighted to have been awarded the Mining Permit for the World Class Citronen ZincLead Project. This is a milestone and achievement of great importance to the Company and our plans to develop the project into one of the world’s largest zinc mining operations. We will now move to advance project development and funding without delay," Ironbark Managing Director Jonathan Downes said in a statement. The $41 million market-cap company has two other projects in Greenland and three in Australia.
According to a project page, the Citronen Zinc-Lead Project represents one of the world’s largest undeveloped zinc-lead resources with a resource in excess of 13 billion pounds of contained zinc and lead. Over 67,000 metres of diamond drilling has been completed to date at the deposit located in Northern Greenland. In 2013 Ironbark released a feasibility study showing the mostly-underground, room and pillar operation would have a capital cost of $429.3 million including contingency, and a minelife of 14 years. It also said the company is working with China Non-Ferrous Metal Mining Group to deliver an EPC (engineering, procurement, construction) contract and financing for the project.
The Arctic Journal reports that the mine is expected to employ 500 once operational, and that Ironbark intends to start construction in 2017 or 2018. The publication also notes that Greenland has approved six mining operations over the past eight years, but none are currently active. Two new mines though are expected to come online next year.
Much of the debate over mining in Greenland, a self-governing Danish territory, centres around uranium.
In 2013, four years after the island assumed full control over its mineral and hydrocarbon rights from Denmark, the Greenlandic parliament voted to remove the ban on radioactive materials, which opened the door to uranium and rare earth exploration.
Removing the uranium mining ban was crucial for the development of the Kvanefjeld uranium and rare earth element project, being explored by Australia's Greenland Minerals and Energy (ASX:GGG) – considered to be one of the world's largest undeveloped deposits of REEs and uranium. About a year ago further progress towards uranium mining was made, with an agreement to export uranium from Greenland.
The island has a a rich geological profile but is less explored than, say, Arctic Canada. Along with uranium, Greenland also has deposits of iron ore, nickel, copper, rare earths and gold. In 2012 North American Nickel (TSXV:NAN), said that its Greenland property is the remains of a gigantic, three-billion-year-old meteorite impact, and displays a similar geological formation that is found in the Sudbury Basin in Ontario, Canada – the second-largest impact crater on Earth.
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Iron ore price hits three-week low
The import price of 62% Fe content ore at the port of Tianjin dropped 2.8% to $77.10 per dry metric tonne on Wednesday, the lowest since the end of November according to data supplied by The Steel Index.
Year to date the price of the steelmaking raw material is still up nearly 80% following near-decade lows in December last year, but the outlook going into 2017 is decidedly murkier.
Source: The Steel Index
Dutch bank ABN Amro is the most optimistic calling for a $77 average next year while BMO Capital Markets see prices falling sharply from today's levels to average $46 over the course of 2017. Most analysts see iron ore between $50–$60 next year which is on par with the commodity's year to date average.
Goldman Sachs predicting above $60 in early 2017, with a moderate decline to $55 a tonne by the end of next year. That's the same price Australia's Industry department is predicting for free-on-board prices by September next year (add around $6 for freight costs).
Iron ore price expectations on derivatives markets are much more optimistic reaching year-to-date highs last week according to a recent note from the Singapore Exchange:
With iron ore spot prices surging in recent weeks, optimism has extended to forward price expectations too. 2017 forward price expectations have risen to their highest level of the year, with the SGX Iron Ore forward curve currently pricing 2017 at around $70 per tonne (~25% higher than 2016’s YTD average of $56/t).
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Global executives renewed optimism about Chinese economy
In March Chinese leaders detailed the country's 13th five-year plan running from 2016 – 2020 which doubles-down on a long-stated commitment to "double 2010 GDP by 2020”. The 2020 GDP goal would require annual growth rates of 6.5% to go from a nominal $10 trillion last year to over $12 trillion in 2020. That's the equivalent of adding an economy the size of Switzerland's every year.
China's official GDP data showed growth of 6.7% year-on-year in the third quarter, boosted by a raft of stimulus measures introduced by Beijing that has seen a number of metrics improve dramatically since the start of the year.
Manufacturing activity hit a more-than-two-year high in November, fixed asset investment and industrial output all improved while real estate statistics indicated stronger investment. Imports of commodities including iron ore and coal came close to or hit monthly records and bank lending is growing at a solid clip despite restrictions designed to cool China's credit markets.
A new survey by McKinsey & Company released on Thursday showed a marked difference in outlook compared to this time last year when a slowdown in China was the top concern of of global executives. Now heads of large corporations, especially in Asia are worried more about geopolitical instability, transition of political leadership and a slowdown in global trade.
About 26% of the more than 2,000 executives surveyed worry about the Chinese economy, compared to nearly half in the March 2015 survey:
Respondents in China are much likelier now than they’ve been all year to say economic conditions at home have improved in the past six months: 29 percent say so, more than twice the share that said the same in June or March. And while these respondents most often expect stable conditions in coming months, they are increasingly optimistic about the future. Globally, executives are also bullish on China’s prospects. Fifty-three percent of all respondents (and 64 percent of those in China) believe that in 2017, China will hit the annual growth targets of its current five-year plan.
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CHART: China's economy growing fastest since 2013
In March Chinese leaders detailed the country's 13th five-year plan running from 2016 – 2020 which doubles-down on a long-stated commitment to "double 2010 GDP by 2020”.
The 2020 GDP goal would require annual growth rates of 6.5% to go from a nominal $10 trillion last year to over $12 trillion in 2020. That's the equivalent of adding an economy the size of Switzerland's every year.
China's official GDP data showed growth of 6.7% year-on-year in the third quarter, boosted by a raft of stimulus measures introduced by Beijing that has seen a number of metrics improve dramatically since the start of the year.
Manufacturing activity hit a more-than-two-year high in November, fixed asset investment and industrial output all improved while real estate statistics indicated stronger investment. Imports of commodities including iron ore and coal came close to or hit monthly records and bank lending is growing at a solid clip despite restrictions designed to cool China's credit markets.
China's GDP growth rate dropped below 4% in December last year as metals, iron ore and coal prices hit multi-year lows
Skepticism about official Chinese growth figures abound – that 6.7% figure has been stable for the past three quarters and bang on Beijing's official GDP growth targets.
Most analysts peg actual GDP expansion at a much lower clip.
Independent research house Capital Economics' measure of the Chinese economy – the China Activity Proxy or CAP – uses a combination of weighted data including electricity usage, seaport cargoes, floor space under construction and passenger and freight traffic to gauge activity across a wide section of the economy.
According to Capital Economics research, China's year-on-year GDP growth rate dropped below 4% in December last year (as metals, iron ore and coal prices hit multi-year lows) and stayed below 5% during the first half of 2016.
But since then growth has picked up markedly hitting 6.5% in November. That's the fastest pace since 2013 using the Capital Economics gauge.
According to the report official GDP growth in Q4 is unlikely to be materially different with Capital Economics is forecasting 6.8%.
"That hasn’t been true since 2011," says Mark Williams, chief China economist, but he adds a word of caution:
Stepping back, the turnaround in growth over the past few months has been almost as sharp as that in 2009. But lessons have been learned from the aftermath of that stimulus-driven rebound. Policy support is already being withdrawn. What’s more, we estimate that China is currently expanding faster than its sustainable rate.
SEE ALSO: Without China global mining industry would be smaller than in 2000
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Grippe : l’épidémie touche déjà presque toute la France
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ISS : Thomas Pesquet présente le repas de Noël de la Station spatiale
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La route solaire Wattway est inaugurée aujourd'hui
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La matière noire chassée grâce à un alignement Terre-Soleil-trou noir supermassif
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Pan Starrs1 : la plus grande carte du ciel compte trois milliards de sources
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Fossile : un oiseau à dents découvert dans l'Arctique canadien
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mercredi 21 décembre 2016
En vidéo : le Père Noel n'a plus besoin de rennes, il a un drone !
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Gold price: The great year-end ETF liquidation sale
Gold was hovering near 11-month lows on Wednesday as ETF investors continued to dump the metal. Gold for delivery in February 2017 was exchanging hands for $1,132 an ounce, the lowest since the beginning of February in after hours trading on the Comex market in New York.
Gold is now down more than $200 an ounce from an initial surge on election night as results showed a likely victory for Donald Trump in the US presidential race.
Gold bears are making big bets that Trump's plans for fiscal stimulus, including a $500 billion infrastructure spending program, will lead to strong US economic expansion, higher interest rates. A number of prominent hedge fund managers and billionaires running family offices have moved aggressively out of gold and into stocks (the Dow Jones blue-chip index came close to 20,000 again on Wednesday) and retail investors have followed suit.
The heavy selling of physically-backed gold ETFs is creating its own momentum akin to a run on a bank – many investors are under water after buying a net 160 tonnes in GLD at gold prices above today's level
Since the election investors in top physical gold-backed exchange traded fund – SPDR Gold Shares (NYSEARCA: GLD) – have dumped a net 125.2 tonnes. Outflows so far this week top 12.4 tonnes. GLD dwarfs other physically-backed gold ETFs holding more than 45% of the global total.
GLD vaults now hold 824.5 tonnes or 26.5 million ounces; worth just over $30 billion on Friday. That's down more than $12 billion from the 2016 peak hit early July as the gold price retreats and investors liquidate their holdings.
The heavy selling of physically-backed gold ETFs is creating its own momentum akin to a run on a bank – many investors are under water after buying a net 160 tonnes in GLD at gold prices above today's level. Should erstwhile bullion bulls continue to offload their holdings further falls in the price of gold seem inevitable.
As far back as a month ago Goldman Sachs warned that "if investors were to withdraw from even half of those money-losing holdings, it would spark a $60 sell-off in prices" according to Bloomberg Intelligence.
Year to date, holdings are up still up 182 tonnes. After a few dismal years, GLD rise in assets under management in 2016 up to election day, surpassed the banner years of 2009 and 2010 when investors caught in the global financial crisis and spooked by quantitative easing piled into GLD.
On August 22, 2011 when gold was hitting record highs above $1,900 an ounce GLD became the largest ETF in the world briefly surpassing the venerable SPDR S&P 500 trust at a net asset value of $77.5 billion.
Gold holdings in the trust would peak more than a year later in December 2012 at 1,353 tonnes or 43.5 million ounces. Global ETFs hit a record 2,632 tonnes or 93 million ounces of gold at the time, but has now fallen below 1,800 tonnes, with 200 tonnes redeemed since November 8.
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Without China global mining would be smaller than in 2000
Chinese demand now constitute nearly half the global total for most industrial metals and in iron ore for instance the country is responsible for some 80% of the seaborne trade.
China's economic growth started to hit the skids around 2012 and last year came close to a hard landing sending most commodity prices to multi-year and sometimes decade lows.
China's economic growth started to hit the skids around 2012 and last year came close to a hard landing
China's GDP and demand for raw materials rebounded in the latter part of 2016 causing prices – to the surprise of many – for the likes of iron ore (up 85% year-to-date), coking coal (up three-fold), zinc (+64%) and others to soar.
Expansion rates may have slowed dramatically and doubts are creeping in about the longer term impact of stimulus measures introduced earlier this year, but in absolute numbers growth in Chinese demand remains eye-watering.
Taking a look back to 2000, the early days of the China-induced supercycle, it's startling to see just how different the mining industry would've been without Beijing's command economy as this table from Bloomberg Intelligence's 2017 metal outlook shows.
Source: Bloomberg Intelligence
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Cost-saving nanotechnology set to disrupt gold processing industry
Typical gold mining operation. Photos and graphs by 6th Wave Innovations Corp.
For over a century the gold processing industry has been dominated by one primary material that is used in the cyanide leaching process: activated carbon.
Put simply, gold-bearing ore is crushed into fine particles before being mixed into a pregnant leach cyanide solution that is filtered through activated carbon – sourced mostly from burnt coconut shells.
The gold adsorbed by the activated carbon is then recovered through elution, before being regenerated (baked) in a rotary kiln at around 700 degrees Celsius.
Molecularly imprinted polymer ion exchange resin can increase gold mining profits by about $100 per ounce in processing savings and extra gold recovered in direct comparison to activated carbon, the most widely-used extraction medium.
While it is a popular material for gold recovery, activated carbon has its limitations. The capacity for gold adsorption depends on the metallurgy of the ore, the quality of the activated carbon, the pH of the pregnant solution and other factors.
About 10 percent of the carbon is lost during the process, which adds to the producer's input costs. Moreover, activated carbon is not highly selective, meaning that other minerals in the pregnant leach solution become trapped within the activated carbon – a problem known as organic fouling. There is also the fouling and adsorption of other metal ions that compete for adsorption with the gold and are also difficult to elute.
There had to be a way to make the process more efficient. The challenge was taken on by Dr. Glen Southard, an expert in molecularly-imprinted polymers and their applications, who has authored over a dozen technical peer-reviewed journal articles on the subject and has several patents.
In 2014 Southard joined 6th Wave Innovations as chief scientific officer. The Utah-based company was formed a year earlier and one of its first products to enter commercial production was an explosive detection technology that was purchased by the US Navy’s Explosive Ordnance Disposal teams (NAVEOD). 6th Wave Innovations took the basis of that knowledge and started looking at other commercial opportunities. Having spent the last three years developing an application for gold processing, 6th Wave Innovations recently launched a product it calls IXOS® – a nanotechnology bead for the gold mining industry.
The company estimates that its molecularly imprinted polymer ion exchange resin can increase gold mining profits by about $100 per ounce in processing savings and extra gold recovered in direct comparison to activated carbon, the most widely-used extraction medium today. Widespread adoption of IXOS could add billions of dollars in profits to an industry that produces about 90 million ounces of gold each year, according to 6thWave Innovations.
“It's a nanotechnology resin that was specifically designed to recover dicyanoaurate from alkaline cyanide processing of gold-bearing ore. It has a very high capacity and selectivity which is independent of other metals in the pregnant leach solution,” President Sherman McGill told MINING.com. “Our molecular pocket rejects all of those other metals and that is why our purity is so high.”
Each patented IXOS® bead is imprinted at the molecular level to attract gold and ignore the other elements leached off in mining operations. Unlike conventional ion exchange resins, the IXOS® resin has a long life (>50 loading/unloading cycles), high capacity (~30g/kg) and selectivity for gold (>95%) and greater than 98% gold recovery (no solution losses). Moreover, the capacity and selectivity does not degrade with successive cycles. The unloading (“elution”) process is simple, straightforward and inexpensive when compared to activated carbon. The beads require no activation step for re-use. The resin is supplied ready-to-use, with a range of particle sizes available to accommodate heap leach and resin-in-leach/pulp circuits.
McGill compares the IXOS bead to a tiny lock and key, or the last piece of a jigsaw puzzle.
“This bead has billions of nano sites, for that specific molecule only,” he says. “And that's what gives us this tremendous selectivity for gold because it's rejecting all of these other metals that are captured by activated carbon.”
For the gold company, the nanotechnology offered by 6th Wave Innovations translates into lower costs and higher profits. The increased gold captured, reduced loss of gold to carbon fines, low IXOS® attrition from re-use translate to increased gold per ton of ore processed. Operating expenses are also lower for the Absorption, Desorption and Refining (ADR) plant because a smaller plant is needed and stripping the gold from the IXOS® beads can be done at low-temperature and at a much faster rate than activated carbon. Therefore, less energy is used than in typical gold processing methods. The company estimates that its IXOS-Au molecularly imprinted polymer beads can cut processing costs by up to $100 per ounce.
IXOS also captures more gold – 30 grams per kilogram – 10 times as much as activated carbon, and at higher purity. According to 6th Wave Innovations, the IXOS-Au beads produce gold at >85% purity versus about 40% for carbon. “That means there's a lot less effort, cost and power required to produce a saleable gold bar,” says McGill.
Another key benefit: the beads can be re-used over and over, up to two years. Gold produced through activated carbon results in a percentage of lost carbon that can't be recovered. “Whereas with our product you have very little attrition loss. You just elute and water wash the beads,” says McGill.
He said 6th Wave Innovations is in negotiations with a number of mines right now about giving its IXOS technology a try, with a view to possibly switching their processing medium. The company has a couple of options for gold mines that are interested. The first option would be to decommission existing infrastructure and replace it with an IXOS-run plant.
The second option is what 6th Wave Innovations calls a “solution loss recovery (SLR) opportunity” which allows the company to tap into a mine's cyanide solution before it goes back onto the heap leach, thereby recovering gold left in the solution after the activated carbon adsorption and that the mine has already spent time and money to capture.
For example a mine that is processing 100,000 ounces but failing to capture 5 to 10% of its gold due to solution loss, is at current gold prices losing $10 million to $12 million in revenue.
6th Wave Innovations will pay for and install the SLR plant for a share of the scavenged gold.
The company estimates a mine producing 200,000 ounces a year with a 5% solution loss, could recover an extra $13 million a year.
According to 6th Wave Innovations, IXOS® has outperformed activated carbon and conventional ion-exchange resins in laboratory and field trials conducted over the past three years. The trials were done in partnership with some of the world’s largest gold mining companies under a wide variety of conditions, including high grade, low grade, and refractory (“preg-robbing”) ores.
The company also had SGS – a leading inspection, testing and certification company – test IXOS®-Au against activated carbon and leading ion exchange resins Minix and A500.
“The results of the test work demonstrated that IXOS®-Au is indeed very selective for gold cyanide, exhibiting excellent rejection of the copper, zinc, nickel and iron cyanide complexes,” SGS wrote in a technical assessment. “The selectivity profiles of IXOS® were significantly better than… Minix and A500 resin… This is important as far as copper is concerned, since copper cyanide is the most common and pervasive 'contaminant' in cyanide leach liquors in the gold industry.”
As for whether IXOS® could eventually replace activated carbon, McGill said that is the company's goal, though he acknowledges the shift would likely be gradual, once IXOS® is proven and its worth is demonstrated.
“Once we have some plants up and running our phone is going to start ringing off the hook,” he predicted. “The word will get around pretty quickly on how great this stuff is.”
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