mercredi 31 mai 2017

Successful partnership makes fly-in/fly-out easier

The software, designed specifically for large-scale projects – converts multi-step bookings into a single streamlined process. This includes flights, ground transportation and accommodations.

Anyone who's ever worked in a fly-in/fly-out oil or mining camp knows that the logistics of getting from home to work and back can be a challenge. The trip often involves a combination of flights and ground transportation, multiple boarding passes, and of course, the usual vagaries of travel including weather and mechanical delays. Then there is the potential for problems at the camp, such as room reservations, menu glitches, and even issues with housekeeping.

While managing large-scale camps in remote locations seems like a straightforward and manageable task, in reality the job involves balancing complex components across various systems, including: matching charter flights with commercial schedules; accommodation availability; compliance risks; itinerary risks; and ensuring duty of care.

“The whole operation can be seen in one dashboard. So from a logistics perspective, the challenges have been greatly diminished for the camp operators. And you know, it runs like a well-oiled machine”: Gemstone Logistics president Tom McHale

After spending 20 years working in remote locations, Gemstone Logistics CEO and president Tom McHale recognized the challenges resource companies faced in attracting and retaining qualified workers, and also understood the strains workers felt being away from family and friends for weeks at a time. In 2005, while working as an aviation manager, McHale pioneered the first successful cross-Canada fly-in/fly-out program for a major oil company. He went on to found Gemstone in 2007, providing air transportation services for large-scale resource and construction projects.

Over the years, Gemstone recognized a need across major industrial projects to integrate fragmented site services. Its proprietary software CIRYS has successfully transformed travel management processes among many major oil companies – saving clients millions of dollars along the way.

In early 2015, Gemstone acquired Orissa Software Inc., including CampWare, software tailored to the front desk, housekeeping, food services and guest management needs of workforce accommodation facilities.

Yet despite these powerful software tools, Gemstone Logistics sought a way to even further integrate its transportation and accommodation services for remote camps. The solution was to partner with American Express Global Business Travel. The company is independent from American Express Company, but the U.S. multinational has a 50-percent interest in American Express GBT.

Launched in 2016, the partnership, dubbed a “complete travel management solution,” saw “Gemstone’s proprietary travel and accommodation management software, CIRYS, integrated with GBT’s booking and servicing solutions, providing optimum manpower planning capabilities, an end-to-end view of every traveller’s journey and seamless travel management,” according to a press release.

McHale said the problem up to recently with transportation and accommodation at remote camps has been the disconnect between booking systems.

There could be 10,000 people in a camp, and there was a separate system for camps, there might be an airline, or various airlines flying workers in through charter, no connection whatsoever. There was the busing disconnect, other types of on-boarding disconnects, no reporting capability, no accountability. It was really willy-nilly. So by integrating it together and by having a camp solution, our system puts camps together with chartered flights and shuttle buses, and now with this American Express GBT connection, we can do the commercial travel.”

The software, designed specifically for large-scale projects – oil and gas, mining and construction – converts multi-step bookings into a single streamlined process. This includes flights, ground transportation and accommodations. Travel coordinators see a complete view of the traveller's journey, from the time they get on the plane until they unpack their bags at camp. Travellers have constant access to their itineraries through a mobile app. Benefits for the owners include real-time tracking of all travellers, eliminating inefficiencies and keeping costs down.

Jacinthe Ladouceur, vice president & general manager, American Express GBT, said the partnership dovetails nicely with GBT's EXPERT CARE solution, a web-based platform that makes it easy to track travellers and communicate with them in case of a travel disruption or emergency.

By having that integrated solution, the customer can know right away, I have so many at the people at the camp, I have so many people presently on that charter, or I have so many people on that flight. They know exactly where they are.”

For camp owners, having an integrated transportation and accommodations system can reap major cost savings. McHale estimates the savings on one project could easily be $10 million a year – due to better camp and transportation optimization. Efficiencies in room bookings are another way for camps to save money, for example not allowing workers to book an extra night at the end of their rotation, thus freeing up a room.

“If you have a 2,000-room camp, and you can squeeze out 1 percent more efficiency, that translates to about $2 million a year in annual savings,” says Ross Purdie, Gemstone's VP, corporate development & finance.

“The whole operation can be seen in one dashboard. So from a logistics perspective, the challenges have been greatly diminished for the camp operators. And you know, it runs like a well-oiled machine,” adds McHale.

Asked how the oil and gas downturn has affected their business – the majority of Gemstone's clients are in the Canadian and U.S. oil patches – McHale said the business ebbs and flows according to construction cycles. But he said the oil slowdown since 2014 has given Gemstone a chance to “catch up with our software”, giving them time to develop the partnership with American Express GBT and better position themselves in their markets. McHale also noted that the downturn has been good for companies like Gemstone, since it has forced mining and oil and gas companies “to really dig in and listen to what what people like us have to say today about cost savings.”

“It's a place where not a lot of people looked for savings before. They said, 'Oh, let's just get it done.' And then they'd pull things together at the last minute, hire an airline, hire a busing company just to get this thing going, and they'd muddle through it somehow,” says McHale.

“Today, with the advent of Gemstone and what we do, and this partnership, we've taken an organized approach to this. It's saying, 'If you do a few things up front, and you implement the software, and you do a few other business rules, you can make this go like clockwork.”

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'Strong hand' may be pushing palladium price higher

Wednesday was a generally good day for precious metals with the complex recovering much of the losses suffered since mid-April.

Palladium was once again the best performer on the day, up 1.5% to $816.75. Nymex palladium futures are sporting year-to-date gains of more than 20% and are once again approaching  two-year highs hit at the end of April.

The fortunes of palladium and sister metal platinum have diverged dramatically over the past year. A new annual report by the GFMS team at Thomson Reuters on the PGM market argues it is "more a case of when, not if, the palladium price will exceed platinum".

'Strong hand' may be pushing palladium price higherIt would be the first time since 2001 that palladium is worth more and its relative strength is even more remarkable given that the gap averaged just over $1,000 an ounce between 2007-2012.

The superior performance for palladium is unsurprising given that 2016 was the fifth year in a row of substantial deficits (1.2m ounces or 37 tonnes) and the automotive markets in China and the US have enjoyed record breaking runs. Palladium mainly finds application in gasoline engines and the sector is responsible for 70% of overall palladium demand.

But a  report from Platts News suggests other forces may be at work and that a market participant with a "strong hand" may be putting the "squeeze" on the metal.

Sponge (semi-finished metal) prices have been stable which suggests the unusual tightness is at the refining end of the market.  The report quotes a senior banking source as saying lease rates for palladium have quadrupled from 1% to 4%:

"There's certainly a tightness, but I'm not sure if it's fundamentals or a strong hand," he said.

"People have tried this [possible squeeze] before and it can get ugly, real fast. You'd be a brave man to take a position, short or long, at these levels," the source said.

A research note from Commerzbank also cautioned on the outlook with the investment bank saying it "cannot understand why the palladium price should be so strong given that automotive markets in the US and China are faltering and ETF outflows are continuing."

Continue reading at Platts News

 

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Gemfields steps up fight against takeover by largest investor

Emeralds and rubies miner Gemfields (LON:GEM) said Wednesday a group of independent directors recommended shareholders to reject a takeover bid by largest investor Pallinghurst Resources Limited.

The Johannesburg-listed private equity firm wants to buy all the shares it doesn’t already own in Gemfields, but an “independent committee” formed by the precious stones miner has determined the offer “significantly undervalues the company, its unique asset base and its leading position in the coloured gemstone sector.”

Pallinghurst Resources wants to buy all the shares it doesn’t already own in Gemfields, but miner said offer is "derisory."

Shares in Gemfields fell on the news, closing 1.10% down in London to 33.75p.

The group of advisers is made up of chairman Graham Mascall, chief executive Ian Harebottle, chief financial officer Janet Boyce and non-executive directors Clive Newall and Finn Behnken.

Despite their close ties with Gemfields, the company said it considered the committee to be "free from conflicts of interest in respect of the unsolicited offer".

Gemfields is the world's biggest coloured gems producer, accounting for roughly a third of the world’s emeralds and rubies from two mines in Mozambique and Zambia. The miner also owns the luxury Fabergé brand.

Pallinghurst also has interests in the platinum and manganese sector in South Africa, but Gemfields is the assets where it has the largest share. The firm has until June 16 to release full details of its offer for Gemfields under Takeover Panel rules.

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Le bleu de méthylène ralentirait le vieillissement de la peau

Connu depuis plus de cent ans, cet antioxydant bon marché et sans danger ralentit les signes du vieillissement dans des cellules de peau humaine en culture. Des applications en cosmétique pourraient voir le jour.

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Iron ore free fall keeps hurting miners — down to fresh 7-moth low

Shares in iron ore miners came under pressure on Wednesday after prices for the commodity dropped to their lowest levels in six months, as large stockpiles of the steelmaking material continue to weigh on the market.

Prices dropped by 6% on the Dalian Commodity Exchange on Wednesday to RMB424.5 a tonne, while ore with 62% content in Qingdao lost $1.48 a tonne to close at $57.02, a fresh seven-month low, data from the Metal Bulletin shows.

World’s No. 1 producer, Brazil’s Vale (NYSE:VALE) was trading 5.36% lower in New York to $8.30 at 10:52 AM. While the other top two iron ore miners, BHP (ASX:BHP) and Rio Tinto (ASX:RIO) were also having a bad day.

Shares in BHP collapsed in Sydney, recovering slightly during the day to close only 0.42% lower at A$23.9, and was trading 1.95% lower in New York to $35.27 at 10:57 AM ET.

Rio Tinto’s stock closed down 0.73% A$62.81 in Sydney, and it was also falling in London — more than 2% to 3,115 pence at 4:00PM local time.

Several reasons have been cited to explain the sharp price collapse, down from a peak of $95 a tonne in February. Those include worries about the health of China’s economy, as the nation consumes nearly three-quarters of the world's seaborne ore.

But there are many more. Just last week iron ore stockpiles hit a new record high in China, taking the already bloated figure up to 22.05 million tonnes so far this year, based on data from Shanghai Steelhome E-Commerce Co. This means port holdings have already surpassed the 20.85 million added in 2016 and are sitting at the highest level on record.

Another headwind for iron ore demand is increasing use of scrap in China. In the past, low pig iron prices and little recycling meant scrap did not play much of a part in the domestic industry. This is especially true when compared to places like Europe, where steelmakers charge up to around 18% scrap in basic oxygen furnaces (around 20% scrap is a technical limitation).

Worries about a recent pickup in market interest rates in China and the prospect of a slowdown in the country’s property market, have also been cited as factors dragging iron ore prices down.

Then, there is the ever present issue of a global glut, which has worsened in recent months due to fresh supply coming from recently opened mines, such as Roy Hill in Australia, Anglo American’s Minas Rio and Vale’s S11D in Brazil.

The worsening market situation has prompted analysts, such as BMI Research to revise their prices outlook down. Earlier this month, the research arm of Fitch Group said it expected seaborne to drop to $65 a tonne this year (down from a previous forecast price of $70), and $50 in 2018, to end up touching a low of $44 by 2021.

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Second round of hearings for Nunavut gold mine rejected by review board kicks off

A proposed gold mine in Canada’s far north may finally get the approval from community members on Wednesday, as the company behind it is holding a second round of public hearings, in which it has vowed to address concerns that triggered its rejection by the Nunavut Impact Review Board (NIRB) last year.

Sabina Gold and Silver Corp.’s (TSX:SBB) Back River project, in the western Kitikmeot Region of Nunavut, has faced local opposition from locals who claim industrial development on caribou populations grounds, should not be allowed.

This is the first time in 20 years the NIRB has been asked to reconsider a decision on a project and go through another review process.

Supporters of the mine argue Nunavut could use a new source of jobs and income. The territory holds Canada's highest unemployment rate at 12.3% as well as the associated social problems. It also has the country’s highest birthrate and needs jobs for young people.

The four-day review that begins today marks the first time in 20 years the NIRB has been asked to reconsider a decision on a project and go through another review process. That happened in January, when the Minister of Indigenous and Northern Affairs asked the board to reconsider its decision, after the Nunavut government and the Kitikmeot Inuit Association argued any threats to caribou could be managed.

Sabina’s plans for Back River include an open pit and an underground mines at its Goose property, located 400 kilometres south of Cambridge Bay and 520 km north of Yellowknife.

That is well east of the current spring calving grounds, but some Inuit argue the herd is known to have calved on the eastern side of Bathurst Inlet.

The pits would operate for at least 10 years and their development would involve filling, damming or draining lakes and streams and building a 157-km road from the mine to a seasonal port facility and tank farm in Bathurst Inlet.

The asset holds an estimated 3.4 million ounces of gold and Vancouver-based Sabina says the mine could employ about 900 people once operations begin, which is expected to happen in 2019.

Second round of hearings for Nunavut gold mine rejected by review board kicks off

Sabina’s plans for Back River include a chain of open pit and underground mines located about 400 kilometres south of Cambridge Bay. (Image courtesy of Sabina Gold and Silver Corp.)

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Avec Essential, Andy Rubin, le père d’Android, veut réinventer le smartphone

Andy Rubin, l'homme à l'origine du système d'exploitation Android, a dévoilé un smartphone accompagné d'une enceinte connectée et d’un système d'exploitation inédit avec lesquels il compte bien rivaliser face aux plus grands noms du marché. Baptisé Essential PHE-1, le mobile de 5,7 pouces...

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Handi Tech Trophy : la plus grande compétition pour les technologies de l’autonomie

Thérapie génique ou objets connectés, voitures autonomes ou exosquelettes, domotique ou intelligence artificielle : le grand concours Handi Tech Trophy, dont Futura est partenaire, accueille tous les projets qui améliorent l’autonomie des personnes handicapées ou âgées. Ouvert aux écoles comme...

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Découverte d’une superterre potentiellement habitable proche de chez nous

Après trois ans et demi de recherche, une équipe d’astronomes européens a mis la main sur une superterre en orbite autour d’une petite étoile située à seulement 21 années-lumière. Les premiers éléments de leur enquête indiquent qu’elle est potentiellement habitable.

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Touchée par une micrométéorite, la sonde lunaire LRO a vibré

La Terre et la Lune sont continuellement frappées par des météorites minuscules et c'est sans doute une très petite, une micrométéorite, qui a heurté en 2014 LRO, une sonde de la Nasa en orbite autour de notre satellite naturel.

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mardi 30 mai 2017

CHART: Hedge fund commodity bulls misread the market

After twelve months building momentum (with a big wobble in the middle) hedge funds bullish bets on commodities hit at a record high in February this year.

Turns out the smart money was too optimistic about the strength and length of China’s economic recovery and the timing and scale of US stimulus under new leadership.

Prices went sideways for the better part of a year even as bullish positions continued to grow

Large scale speculators or managed money investors in agriculture, energy and metals commodity futures and options have now slashed bullish positioning by 64% from the February peak.

Ole Hansen, chief commodity strategist at Saxo Bank, says the main reason behind the loss of confidence is simply that commodity prices never lived up to expectations.

Prices went sideways for the better part of a year even as bullish positions continued to grow. The gap between expectations and reality turned into a gulf.

There is an upside to this reversal says Hansen. Today’s more realistic expectations at least provide commodity markets a base from which to grow.

CHART: Hedge fund commodity bulls corralled

www.TradingFloor.com

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'Full speed ahead' for Lundin's Ecuador gold project after financing deal

Shares in Lundin Gold (TSE:LUG) declined Tuesday after the company announced a $400–$450 million project financing package for its flagship Fruta Del Norte project in Ecuador.

After a jump at the start of trading, in afternoon dealings on the TSX the Vancouver-based company was exchanging hands for $6.16 down 1%, amid a generally lacklustre day on the gold market. Lundin Gold is worth $736.7 million after a 17% year to date gain.

In a statement Lundin Gold said the project finance package agreed with private equity groups Orion Mine Finance and Blackstone Tactical Opportunities is a sign of "growing support for mining investment in Ecuador."

According to Lundin Gold the financing is comprised of a gold prepay credit facility for $150 million, a stream loan credit facility of $150 million and committed participation of $100 to $150 million to future equity financings required to fund the project.

The streaming deal is repayable in variable monthly principal and interest instalments equivalent to the delivery of 7.75% of gold production and 100% of the silver production starting in December 2020, up to a maximum of 350,000 oz of gold and six million oz of silver according to the statement.

The deal also grants Orion and Blackstone the right to purchase 50% of Fruta Del Norte gold production, up to a maximum of 2.5 million ounces.

Lundin Gold President and CEO Ron Hochstein said the agreement "confirms the strength of this project and gives us the ability to move full speed ahead with construction."

According to an April 2016 feasibility study, capital expenditure required for Fruta del Norte is estimated at $669 million.

The the high-grade property located in the southeast of Ecuador boasts Probable Mineral Reserves of 4.8 million ounces of gold and 6.34 million ounces of silver (15.5 million tonnes at 9.67 g/t Au and 12.7 g/t Ag).

Lundin Gold is targeting average annual gold production at Fruta del Norte of 340,000 ounces at an average life of mine total cash cost of $553/oz and an estimated LOM all-in sustaining cash cost of $623/oz.

Lundin Gold expects first gold production in first quarter 2020 with first year of full production in 2021.

Discover in 2006, Lundin Gold acquired the project in 2015 from fellow Canadian miner Kinross Gold (TSX:K) (NYSE:KGC), which had suspended work on the venture after authorities refused to compromise on a windfall tax.

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Kinder Morgan Canada falls in trading debut on concerns over Trans Mountain project

Kinder Morgan Canada (TSX:KML) kicked off its first day of trading on the wrong foot with the stock falling as much as 7% early in the day after a Monday deal between two political parties in British Columbia that oppose the company’s Trans Mountain pipeline expansion cast doubts on its viability.

The company’s shares had been priced at between Cdn$19 and Cdn$21 last week, and then scaled back to Cdn$17, but were trading at $15.79 Tuesday morning before recovering to about Cdn$16.20 by 12:30 pm ET.

Construction of the $7.4bn project is scheduled to begin in September and should be completed by December 2019.

The value drop can be explained by rising uncertainty about the future of the Trans Mountain expansion, following an agreement between anti-pipeline Greens and NDP to form a minority NDP government in B.C.

Both parties have repeatedly voiced their opposition to Kinder Morgan’s planned pipeline expansion, which would see capacity nearly triple to 890,000 barrels of oil per day from the current 300,000 barrels.

Delays of any kind would be negative for Kinder Morgan, but might provide a boost for rival Enbridge Inc.’s mainline system, according to analyst David Galison, from Canaccord Genuity.

“Based on the current production forecasts there may not be enough demand for both the Trans Mountain expansion project and” TransCanada’s Keystone XL project, he wrote in a note to clients. “New capacity has the potential to put pressure on Enbridge’s mainline system, which is the largest exporter of crude out of Canada.”

Kinder Morgan Canada falls in trading debut on concerns over Trans Mountain project

Approved pipeline corridor. (Image courtesy of Kinder Morgan.)

Alberta Premier Rachel Notley issued a statement saying the provincial government remains "steadfastly committed" to using all means at its disposal to seeing the project through to completion.

Prime Minister Justin Trudeau also reiterated his federal Liberal party still supports the expansion project.

The expansion of the pipeline, which will carry oil from Alberta's oil sands to B.C. to be exported to global market, was approved by Trudeau in November. The green light, however, came with a series of both federal and provincial conditions attached.

Construction of the $7.4 billion project is scheduled to begin in September and, according to the company, it should be completed by December 2019.

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CRISPR-Cas9 : les ciseaux génétiques sont-ils dangereux ?

CRISPR-Cas9 est un outil d’édition du génome qui a bouleversé la recherche en génétique moléculaire. Mais d'après une nouvelle recherche, des souris modifiées par cette technique portent des centaines de mutations inattendues dans leur génome. L’outil semble plus risqué que prévu…

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Diamcor just found this rare green diamond at S. Africa project

Canada’s Diamcor Mining (TSX-V:DMI) said Tuesday it has found a 5.36 carat green gem quality octahedron rough diamond from its Krone-Endora project in South Africa, located next to De Beers’ Venetia mine, the world’s third largest.

While the significance of this rough green diamond is currently uncertain, the company said that given the rarity and potential high value of green diamonds, an analysis of the recently-found rock will be performed over the coming weeks.

The stone has been shipped to Antwerp along with other rough diamonds recovered from the ongoing efforts and processing underway at the project, Diamcor said.

Krone-Endora previously belonged to diamond giant De Beers, but Diamcor officially acquired the project in February 2011.

Diamcor just found this rare green diamond at S. Africa project

Diamcor and De Beers mines in Limpopo, South Africa. (Image courtesy of Diamcor Mining )

The project is located directly adjacent to De Beers’ Venetia mine, which is South Africa's largest diamond mine, accounting for over 50% of the country’s annual output.

Prices for coloured diamonds have increased in the past two years. In June 2016, a massive intense blue diamond, known as The Cullinan Dream, fetched $25.4 million at a Christie’s auction in New York, breaking all records and becoming the most expensive gem of its kind ever sold at auction.

And last month in Hong Kong, the 59.60-carat "Pink Star" sold for a record $71.2 million, a price that highlighted the galloping market for coloured gems.

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Coal mine openings in the US inject some hope into beleaguered sector

A new US coal mine, scheduled to begin production next month, is lifting the spirits of an industry still hurting from the impact of low commodity prices and steep competition from other energy sources, which have triggered massive bankruptcies and closures in the past five years.

Once a full tilt, the mine will produce 400,000 tonnes of metallurgical coal a year for US and Chinese steel companies.

Corsa Coal’s (TSX-V: CSO) Acosta Deep mine in western Pennsylvania, expected create 70 to 100 direct full-time jobs and another 500 indirect positions, is for many the latest — though rare — recent signs of a slight reversal of fortune for the beleaguered US coal industry, WSJ.com reports.

Once a full tilt, the mine will produce 400,000 tonnes per year of low volatile metallurgical coal destined to meet demand from mainly US and Chinese steel companies.

“The opening of the Acosta Deep Mine marks a return to coal industry job creation in Somerset County, Pennsylvania,” Corsa Coal officials said in April. “Metallurgical prices have risen to record levels on the strength of strong steel demand and supply scarcity.”

The Canonsburg, Pennsylvania-based company will join Ramaco Resources Inc., which began producing at its first mine in West Virginia in December and plans to open two more this year in Central Appalachia.

President Donald Trump railed against the Obama administration policies as he campaigned in economically depressed areas of states like West Virginia, Pennsylvania and Ohio. He won all three states and swept eight of the top nine coal-producing states.


Trump has promised to bring jobs back to the coal sector and has already reverse a few of his predecessor’s restrictions on fossil fuels, breaking with leaders across the globe who have embraced cleaner energy sources.

But analysts and even Trump's advisor Gary Cohn believe such promise runs counter to market forces, including US utilities that have converted coal-fired power plants to cheaper, cleaner-burning natural gas.

Recently released federal data shows US coal miners have been cutting jobs for decades amid increasing automation, falling demand and steep competition from natural gas as well as renewables.

The Energy Department report released in January, revealed that coal mining now accounts for fewer than 75,000 US jobs. By contrast, renewable energy — including wind, solar and biofuels — accounts for more than 650,000 jobs.

To apply for a job at Corsa Coal’s Acosta Deep mine, click here.

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Android : Judy, un malware caché dans Google Play, a peut-être infecté 36 millions de smartphones

Plusieurs dizaines d'applications présentes dans le magasin officiel Google Play installaient un logiciel malveillant, le malware Judy, qui pratique la fraude au clic publicitaire. Environ 36,5 millions de smartphones Android étaient potentiellement concernés par cette arnaque, contre laquelle...

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Le réchauffement rapide de la Méditerranée fragilise mollusques et coraux

Des changements très rapides dans l’eau de mer de la rade de Villefranche-sur-Mer ont été mis en évidence entre 2007 et 2015. L’augmentation de la température y a été plus rapide que partout ailleurs dans l’océan global et celle de son acidité est aussi l’une des plus élevées jamais mesurées...

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Étoile de Tabby : une exo-Saturne est-elle la clé du mystère ?

Depuis 2015, les astronomes observent les variations de luminosité anormales de KIC 8462852, alias étoile de Tabby. Les tentatives d'explications se sont multipliées. La dernière en date suppose de multiples transits produits par une grande planète entourée d'anneaux, comme notre Saturne, et par...

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Les serpents chassent aussi en coordonnant leurs attaques

Notre planète n’abrite pas moins de 3. 650 espèces de serpents aux mœurs variées. Très peu de ces reptiles ont pu être observés alors qu’ils chassaient en groupe. Pourtant, selon une récente étude, le boa de Cuba semble même aller plus loin. Ces serpents accordent leurs positions pour chasser...

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lundi 29 mai 2017

Influential emerging market investor is iron ore price bull

With Chinese and US traders on a break, the iron ore market took a breather on Monday after wild price swings saw the steelmaking raw material fall to a more than seven-month low on Friday.

The Northern China import price of 62% Fe content ore is down 15% for in May trading at $57.80 per dry metric tonne, the lowest since mid-October according to data supplied by The Steel Index.

“There may be a slowdown in demand from the housing sector but the infrastructure sector will still be sustained”

Benchmark prices are down a whopping 37% from their February highs when ore came to within shouting distance of triple digits.

Bloomberg quotes closely followed emerging markets investor Mark Mobius as saying volatile iron ore prices and the fundamentals of the industry have to be looked at separately.

Mobius, executive chairman of Templeton Emerging Markets Group, said the while fundamentals have bee stable, the price is "subject to all kinds of external factors" including how traders are betting on the price going up or down:

“I don’t see a big, big decline in the demand for iron ore going forward, I think there’ll be continuing demand not only in China but other parts of the world,” said Mobius, who’s spent over 40 years tracking emerging markets. “If you look at Chinese imports of iron ore, it’s almost a straight line, continuing to go up,” adding that in contrast the price “is going all over the place.”

“There may be a slowdown in demand from the housing sector but the infrastructure sector will still be sustained,” Mobius said. “If the One Belt, One Road program proceeds, there’ll be continuing demand.”

 

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Even with iron ore prices diving, NASA fast tracks mission to $10,000 quadrillion asteroid

While many still see space mining as science fiction, the US National Aeronautics and Space Administration (NASA) is fast tracking its planned mission to 16 Psyche — an iron ore and nickel rich asteroid, worth roughly $10,000 quadrillion.

To put that value into perspective, the targeted celestial body’s estimated value is more than the combined economy of our entire planet, guessed at $78 trillion, multiplied by a thousand.

NASA's mission to "16 Psyche" may give humans a first ever chance of exploring a world made of iron, not rock or ice.

You don’t need to be a mathematician or a financial expert to realize that bringing that amount of minerals back to our planet would collapse the Earth’s economy.

And if you follow the mining sector’s news, then you know the market wouldn’t benefit from yet more iron ore supply.

Fortunately, NASA is only planning to explore 16 Psyche, not mine it. Al least for now. What the agency has done, however, is to move forward the launch date to 2022 from 2013, Science Alert reports.

While a year is nothing in terms of space missions, the team behind the project has devised a plan to make the journey to the asteroid more efficient, which slashes four years from the original travel time.

If the mission to 16 Psyche — one of the most massive asteroids found between the orbits of Mars and Jupiter — is successful, then humans will have a first ever chance of exploring a world made of iron, not rock or ice.

Geologists believe all asteroids are packed with iron ore, nickel and precious metals at much higher concentrations than those found on Earth, making up a market valued in the trillions of dollars.

Not only private companies are planning to mine celestial bodies, but governments are increasingly joining the race too. In 2015, ex US President Barack Obama signed a law that grants American citizens rights to own resources mined in space. Shortly after, Luxembourg inked a deal with two US space research companies, in an effort to become a global centre for asteroid mining.

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Les baleines n’ont pas toujours été aussi grosses

Quand il pense aux baleines, l’Homme les imagine en général gigantesques. Cela n’a pourtant pas toujours été le cas depuis le début de leur histoire commencée il y a environ 36 millions d’années. Qu’est-ce qui a provoqué cette augmentation de taille caractérise des baleines à fanons...

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Barrick’s Veladero mine in Argentina now hit by strike

Workers at Barrick Gold’s (TSX, NYSE:ABX) Veladero mine in Argentina began Sunday an indefinite and unplanned strike over better working conditions at the operation, which has recently been the focus of controversy due to cyanide spill in March, the third such incident in less than 18 months.

In a brief statement, Barrick said is already in talks with union representatives to find “timely resolution” to the situation.

Construction works in the heap leach valley, necessary for the resumption of full operations at Veladero following the March spill, are not affected by the work stoppage, the company said.

The world’s No.1 producer of the precious metal by value also noted it’s still planning to resume normal leaching activities at Veladero in the second half of June, subject to approval by local authorities.

Veladero, one of the largest gold mines in Argentina, produced 544,000 ounces last year. Proven and probable mineral reserves as of December 31, 2016, were 6.7 million ounces of gold, according to the company's website.

More to come…

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5 choses à savoir sur le moustique-tigre

Comment reconnaître le moustique-tigre, les maladies qu’il transmet, sa répartition en France, son mode de vie et bien sûr, comment s’en protéger… ? Voici cinq points que vous devez savoir sur ce moustique qui commence à être bien implanté en France.

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China's coal-rich Shanxi province to halt or slow mines construction until 2020

China's Shanxi province, the country's top coal producer, has decided to suspend or hold back the development of mines until 2020, which effectively will take out of the market about of 120 million tonnes of the fossil fuel.

The province will also stop the construction of more coal mines over the period to further reduce capacity, state-owned news agency Xinhua reported, quoting a recent coal industry development plan published by the local government.

Coal output at Shanxi, in the country's north, will be capped by 2020 at 1 billion tonnes and capacity at 1.2 billion tonnes annually by 2020.

Currently, the province supplies coking coal to China's top steel mills and also exports to Japan and Korea.

Earlier this month, provincial authorities announced they it will close 18 collieries and cut 17 million tonnes of coal capacity by the end of the year.

China, the world’s largest coal consumer and producer, is in the midst of an aggressive plan to reduce the share of coal in its overall energy mix and consequent smog and greenhouse gas emissions.

As part of that strategy, Beijing announced in January its intention to shut down 800 million tonnes of outdated coal capacity by 2020.

The country has also made public recently its goal of modernizing its coal-fired power plants by 2020 in an effort to cut “polluting” emissions by 60%. The government also aims to add over 20 million kilowatts of installed wind power and more than 15 million kilowatts of installed photovoltaic power by the end of the decade.

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AlphaGo : après avoir battu le n° 1 mondial du jeu de go, l'IA prend sa retraite

AlphaGo a remporté ses trois matchs face au n° 1 mondial de jeu de go, Ke Jie. L'intelligence artificielle de DeepMind (Google) ne sera plus utilisée pour ce type d'exhibition. Elle va désormais servir à faire avancer la recherche scientifique et médicale.

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NEO-Shield 2 : protéger la Terre des astéroïdes grâce à un percuteur cinétique

Dans le cadre du projet NEO-Shield-2, pour étudier les moyens de dévier un astéroïde dangereux pour la Terre, l’Union européenne envisage une mission de démonstration sur un corps déjà connu : Itokawa. Airbus propose un percuteur cinétique, baptisé NEOTωIST. Albert Falke, responsable du...

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Découverte d'un curieux pliosaure, terreur de la Volga du Crétacé

En Russie, le crâne d'un grand animal datant du Crétacé est celui d'un petit pliosaure. Avec son long rostre, il ressemble à un dauphin d'eau douce, et c'est bien là qu'il vivait il y a 130 millions d'années. Ce « maître de l'esprit de la Volga », comme l'ont baptisé ses découvreurs, est un...

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dimanche 28 mai 2017

Hubble aurait observé la naissance d'un trou noir

L'étoile massive N6946-BH1 a visiblement explosé sous nos yeux mais aucune supernova n'a été repérée. Les astronomes suspectaient la chose possible, ce qui implique la formation directe d'un trou noir. C'est bien ce que semblent avoir observé trois instruments, dont Hubble. Ce serait une grande...

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Low platinum prices push jewellery demand

Diamonds may be a girl's best friend but for budget-conscious ring-bearers, the preferred material might be platinum.

According to Platinum Guild International, the low platinum price in 2016 had retailers stocking up on the precious metal, with Indians and Americans the most likely to put a platinum ring on it. In India platinum demand soared 11.4%, while in the U.S., demand grew 5.4%.

Jewellery is the second-largest market for platinum behind autocatalysts.

“Platinum’s relative strength in challenging market conditions is rooted in the unique space that platinum occupies in the jewellery category, bought more for its emotional meaning, and less for wealth preservation and transference,” said Huw Daniel, CEO of Platinum Guild International, which is funded by South Africa’s platium mining industry.

Other Asian jewellery buyers had a duller gleam in the eye for platinum, with Japanese platinum demand growing just 2%. In China, normally a heavy platinum jewellery consumer, demand dropped 8.3%, owing to an overall economic slowdown in the economic juggernaut.

Spot platinum was up a buck on Friday to $960 an ounce, with a weekly gain of $20 between last Monday and Friday.

Platinum has been underperforming the precious metals complex along with sister metal palladium. An annual report by the GFMS team at Thomson Reuters released earlier this month on the PGM market argues it is "more a case of when, not if, the palladium price will exceed platinum".

It would be the first time since 2001 that palladium is worth more and its relative strength is even more remarkable given that the gap averaged just over $1,000 an ounce between 2007-2012.

GFMS says the superior performance for palladium is unsurprising given that 2016 was another year of substantial deficit (1.2m ounces or 37 tonnes).

However the authors of the report predict that after being broadly in balance the last two years, the platinum market will be undersupplied this year, boosting prices.

Image of platinum rings by Extra Medium, from Flickr under Creative Commons license.

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Hostages kidnapped from DRC gold mine released

A kidnapping incident at one of Banro's gold mines in the Democratic Republic of the Congo (DRC) has been resolved.

The Toronto Star and other media reported on Sunday that a French man and three Congolese men were released after being kidnapped in March from near the Namoya gold mine, operated by Canadian miner Banro Corp. (TSX:BAA). The captors were reportedly asking for $1 million in ransom.

“The four hostages, three Congolese and one French, were freed yesterday at 1800 (6 p.m. local time) in the Tengetenge locality,” read a statement from the provincial Interior Minister. “Their release came after several days of negotiations with the abductors.”

The men living near the mine had been taken by a rebel group that criticized the mining company for not giving jobs to young workers, and were seeking a guarantee that Banro will build infrastructure including schools, roads and a clinic, the Star reported.

Earlier this month Banro reported a series of attacks on police and military personnel in village areas surrounding the Namoya mine, which produced 93,253 ounces of gold in 2016, its first year of operation.

In February an armed attack on the Twanziga gold mine, another Banro property, left four dead, including three policemen.

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Plan to restart Bloom Lake Mine gets $40M boost + offtake

The Bloom Lake Mine's new owner earlier this month announced new cash for upgrades to the shuttered operation and an offtake agreement with a Japanese trading company to receive iron ore for steelmaking if the mine gets back into commercial production.

In December 2015 Champion Iron Ore (TSX:CIA), an iron ore explorer with offices in Canada and Australia, said it will buy the Bloom Lake operation along with its rail assets.

 

The mine's former owner, Cliffs Natural Resources (NYSE:CLF), shuttered production in late 2014 as part of a greater plan to exit its money-losing Canadian operations. Cliffs, the biggest U.S. iron ore miner, purchased the mine for US$4.9 billion in 2011 at the top of the market for iron ore. However the company struggled to make a go of the operation and it sustained quarterly losses until Cliffs finally gave up on it turning a profit, as the price of iron ore tumbled.

The mine in northeastern Quebec was put on care and maintenance and placed into creditor protection to protect Cliffs from future closure costs. The deal was approved by the Québec Superior Court as part of restructuring proceedings.

Now a subsidiary of Champion, Quebec Iron Ore Inc., (QIO) announced on May 18 that it has arranged $40 million in bridge financing to restart operations at Bloom Lake. The money, a combination of $26 million in debt and $14 million in equity, will be put towards upgrades at the mine and processing facilities. The debt component consists of a $20 million loan from Sojitz Corporation, together with a $6 million loan from Ressources Québec Inc., which owns 36.8% of QIO. The equity share is split between Ressources Québec and the Quebec government.

As far as the offtake agreement, Sojitz has agreed to buy up to 3 million dry metric tonnes a year from Quebec Iron Ore upon the mine restarting. The agreement is for an initial five years, to be renewed in five-year terms.

“We are extremely pleased to have signed an off-take agreement with an exceptional and highly-reputed partner such as Sojitz, which predominantly serves the Japanese market and selected Asian steel mills,” Michael O’Keeffe, Champion and QIO’s chairman and CEO, stated in a press release.  “This agreement marks a significant milestone for Bloom Lake and will ensure effective long-term access for our future high quality product to some of the world’s largest consumers of iron ore.”

According to Champion, the mine has already been given the okay to operate by federal and provincial authorities, having passed an environmental assessment in 2008. It also has an updated feasibility study, which is available under the company's SEDAR profile.

Previous to the acquisition, through QIO, of the Bloom Lake mine in April 2016, which is now the company's flagship asset, Champion Iron Mines was focused on its Fire Lake North Deposits located in Eastern Quebec, 250 kilometres from the port of Sept-Îles.

 

 

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Science décalée : un gène du bonheur uniquement chez la femme

Les femmes auraient droit à un gène du bonheur qui produit presque l'effet inverse chez l'homme. Cet allèle particulier procure du bien-être quand il est présent en un exemplaire, et encore plus lorsqu’il est en deux copies !

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Les mères de familles nombreuses vieilliraient moins vite

Le nombre d'enfants qu'une femme a dans sa vie influence la vitesse à laquelle son organisme vieillit : celles qui ont eu plus d'enfants ont des télomères plus longs. Or les télomères, situés aux extrémités des chromosomes, sont associés à la longévité.

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Le visage de Coatlicue, l'étoile mère du Soleil, se précise

Fêtera-t-on un jour la fête de la mère du Soleil ? Peut-être. En 2016, les astronomes ont précisé l'identité de la supernova dont l'explosion a engendré notre Système solaire. S'ils ont raison, elle n'était pas trente fois plus massive que le Soleil, comme on le pensait.

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samedi 27 mai 2017

Top 5 des bons gestes pour une meilleure qualité de l'air dans notre intérieur

Si la pollution de l'air extérieur est un problème bien pris en compte au quotidien, celle de l'air intérieur nous semble moins préoccupante. Pourtant, notre maison regorge de polluants, dont on peut réduire la quantité grâce à quelques gestes simples. Futura vous propose une sélection de...

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Du graphène pour veiller sur notre santé

Souvent décrit comme un matériau miracle, le graphène est censé changer notre futur, ou au moins celui de l’électronique. Grâce aux travaux d’une équipe américano-chinoise, cette feuille de carbone pourrait même entrer dans la légende en constituant la structure des implants qui, nous promet-on,...

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Au Spitzberg, un réfrigérateur géant pour les semences du monde

En ce mois de mai 2017, la Réserve mondiale de semences — sorte d'Arche de Noë végétale creusée dans les glaciers — a été victime d'infiltrations d'eau. La faute au réchauffement climatique. Le gouvernement norvégien doit en renforcer la structure. L'occasion pour Futura de revenir sur la genèse...

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L'école des Houches, en Haute-Savoie, pépinière de prix Nobel, est orpheline

La physicienne et mathématicienne française Cécile DeWitt-Morette vient de décéder à l'âge de 94 ans. Plusieurs prix Nobel se souviennent avec reconnaissance de l'École de physique des Houches qu'elle a fondée en 1951 et qui a joué un rôle important dans leur formation de jeunes chercheurs.

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vendredi 26 mai 2017

World's top 20 silver mining companies

Silver futures prices moved higher again on Friday with July delivery contracts exchanging hands for $17.38 an ounce as the metal continues to claw back territory lost earlier this month. Silver is now up 8% since hitting its 2017 low on May 9.

Only around 30% of annual supply comes from primary silver mines while more than a third is produced at lead/zinc mines operations and a further 20% from copper mines. Only 6 of the top 20 producers are primary silver miners.

The biggest winners among the top 20 producers were Hecla Mining which upped production by nearly half and increased silver revenues 62% thanks to the stronger silver price in 2016.

Perth-based South 32 added 4.3 million ounces or 30% to its output, netting the diversified miner $94 million more from its silver output last year.

At Goldcorp's Peñasquito mine, Mexico’s largest gold producer, output of silver was down 9.5 million ounces last year dragging down the Vancouver-based company's overall silver output by 30% or $150 million.

Global silver primary production dropped in 2016 for the first time since 2002 due to lower output from lead/zinc operations and primary gold mines with production from the latter declining by 9%. Scrap supply also fell, hitting its lowest level since 1996.

Last year 885.8 million ounces were mined, down less than 1% from the year before, but with significant falls registered in top producer Mexico (186 million ounces) after 12 years of strong gains.

Mexico is followed by Peru and China with production of 147.7 and 112.4 million ounces respectively. Production drops off quickly after that with fourth placed Chile and no 5 Russia supplying less than 50 million ounces.

Russia, Australia and Argentina recorded substantial declines in output while Iran entered the top 20 producing countries for the first time. US output was steady at around 35 million ounces.

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Better copper prices boost Codelco’s profit offsetting output decline

Chile’s Codelco, the world's top copper miner, swung back to profit in first three months of the year, posting a pre-tax profit of $534 million for the period versus a loss logged a year ago, which is more than the $435 million the state-owned company earned in total last year.

The copper giant cited improved metal prices — up about 18% in the last seven months — as one of the factors that contributed to the company’s rebound, though it also highlighted its ongoing efforts to keep a lid on costs.

However, cash costs increased in the first quarter of the year, up roughly 6% from a year ago to $1.34 per pound of copper.

Codelco is in the midst of an ambitious $18 billion investment plan aimed at upgrading its aging mines to remain a major player.

Codelco holds vast copper deposits, accounting for 10% of the world's known proven and probable reserves and about 11% of the global annual copper output with 1.8 million metric tonnes of production.

However, most of its mines are running out of copper and need heavy investment in order to extend their productive life.

The company is already feeling the impact of that. For the first three month to March, it saw output shrink about 11% in the first quarter of 2017 to 390,000 tonnes from its wholly-owned mines, and to 416,000 tonnes when its stakes in other deposits are considered.

Chief executive Nelson Pizarro noted that a project to transform Chuquicamata open pit, one of the world’s largest, into an underground operation was almost 50% completed.

The copper producer estimates it will spend $4 billion in the expansion, to be completed in 2019, and which will allow Chuquicamata to remain in operations. Once at full tilt, by 2025, the mine is expected to produce 1.7 million tonnes of the red metal a year.

The recently updated underground extension project is part of an ambitious investment plan, originally pegged at $25 billion (now sitting at about $18bn), aimed at upgrading Codelco’s aging mines and dealing with dwindling ore grades to remain a major player.

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World’s largest gold miner hit by Tanzania export ban

Canada’s Barrick Gold (TSX, NYSE:ABX), the world’s top bullion producer by volume, has warned that up to 6% of it expected output for 2017 may be severely hit by an ban on mineral concentrate exports affecting its subsidiary Acacia Mining (LON:ACA), in Tanzania.

The Toronto-based miner, which holds a 63.9% stake in Acacia, noted that if the subsidiary needed to revise its forecast for the current year, then Barrick would evaluate any necessary adjustments to its own 2017 outlook.

Acacia, which spun off from Barrick in 2010, accounts for roughly 10% of the Canadian miner’s 2017 gold production guidance of 5.3-5.6 million ounces.

The gold miner’s comments come on the heels of a report published Wednesday that claims Acacia has been under-reporting the amount of metal in its shipments to evade taxes.

Tanzania’s presidential committee found the value of minerals within concentrates in containers at the port city of Dar es Salaam was more than 10 times the amount declared by Acacia. As a result, the nation decided to keep an export ban issued in March on the London-listed miner’s copper and gold concentrates.

The probe's results also led to President John Magufuli firing his mining minister and shutting the board of the mineral audit agency, which he accused of failing to supervise exports properly.

Acacia, Tanzania’s largest miner which spun off from Barrick in 2010, accounts for roughly 10% of the Canadian miner’s 2017 gold production guidance of 5.3-5.6 million ounces.

Toronto-based Barrick said its current full-year forecast includes a contribution of 545,000-575,000 ounces of gold from Acacia, at an all-in sustaining production cost of $880-$920 per ounce of gold.

The Tanzania-focused miner has three major gold mines in the country, which also produce copper.

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Le niveau de la mer monte plus vite que prévu

Avant 1990, les scientifiques ne disposaient pas encore des satellites altimétriques et les mesures de la vitesse moyenne d’accroissement du niveau de la mer étaient donc moins précises qu'aujourd'hui. Une étude suggère que cette hausse aurait été surestimée à cette époque. Résultat : le niveau...

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Iron ore crashes again to below $58 a tonne

Iron ore prices were in full-scale retreat once again Friday, with the steelmaking material collapsing below the psychologically key $60 a tonne threshold, and marking the commodity third consecutive weekly fall.

Ore with 62% content in Qingdao lost $2.33 a tonne to close at $57.91, data from the Metal Bulletin shows, hitting a seven-month low partly due to lacklustre futures market ahead of a holiday in China.

Ore with 62% content in Qingdao lost $2.33 a tonne to close at $57.91, data from the Metal Bulletin shows, a seven-month low and the commodity third consecutive weekly fall.

Several other reasons have been cited lately to explain the sharp price collapse, including fresh worries about the health of China’s economy, as the nation consumes nearly three-quarters of the world's seaborne ore.

But there are many more. Early this week, for one, iron ore stockpiles hit a new record high in China, taking the already bloated figure up to 22.05 million tonnes so far this year, based on data from Shanghai Steelhome E-Commerce Co. This means port holdings have already surpassed the 20.85 million added in 2016 and are sitting at the highest level on record.

Another headwind for iron ore demand is increasing use of scrap in China. In the past, low pig iron prices and little recycling meant scrap did not play much of a part in the domestic industry. This is especially true when compared to places like Europe, where steelmakers charge up to around 18% scrap in basic oxygen furnaces (around 20% scrap is a technical limitation).

Worries about a recent pickup in market interest rates in China and the prospect of a slowdown in the country’s property market, have also been cited as factors dragging iron ore prices down.

Then, there is the ever present issue of a global glut, which has worsened in recent months due to fresh supply coming from recently opened mines, such as Roy Hill in Australia, Anglo American’s Minas Rio and Vale’s S11D in Brazil.

The worsening market situation has prompted analysts, such as BMI Research to revise their prices outlook down. Earlier this month, the research arm of Fitch Group said it prices to drop to $65 a tonne this year (down from a previous forecast price of $70), and $50 in 2018, to end up touching a low of $44 by 2021.

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Jupiter : la sonde Juno transmet des images de cyclones jusque-là insoupçonnés

Le dernier portrait du pôle sud de Jupiter construit avec les images de la sonde Juno, de la Nasa, montre un extraordinaire paysage de cyclones géants. On savait la grande planète gazeuse agitée mais elle l'est encore plus que prévu. Traversant à basse altitude la puissante magnétosphère,...

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ExoMars : le crash de Schiaparelli servira de leçon

Les hypothèses de travail pour expliquer le crash de Schiaparelli sur Mars en octobre 2016 étaient les bonnes. C'est ce qui ressort du rapport de la commission d’enquête indépendante mise en place par l’ESA. Elle émet également une série de recommandations afin de préparer au mieux...

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Electron, le petit lanceur privé de Rocket Lab, a presque réussi

Pour son premier essai, le petit lanceur Electron a bien fonctionné. Même s'il n'a pas réussi à placer la charge qu'il transportait sur la bonne orbite, ce vol est une bonne surprise. Toutes les étapes, jusqu'à la mise en orbite, se sont bien déroulées. Ce qui montre un lanceur bien construit et...

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Une bactérie inconnue découverte dans l’ISS

Une bactérie piégée dans un filtre installé dans la Station spatiale internationale a été repérée par une équipe du JPL et son espèce n’était pas connue. Elle n'est bien sûr pas « extraterrestre » comme l'ont titré certains journaux mais a dû grimper à bord avec un objet quelconque. Tels les...

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jeudi 25 mai 2017

BELAZ hoping to make inroads into North American mining truck market

Breaking into the North American heavy equipment market isn't easy, especially for offshore companies without the vast dealer networks offered by some of the bigger players like Komatsu, John Deere and Caterpillar. Having dealers in place gives customers the security of knowing that if there are problems with the main equipment or parts, a solution or a repair crew is just a phone call away. When it comes to mining trucks, the expense of the parts – a single tire can cost upwards of $40,000 – and the logistics of getting parts to mines which are usually far from any population centre, means the dealer-customer relationship is especially important.

Equally important though is the quality of the truck, and its overall cost of ownership, and here is where BELAZ, a Belarus-based manufacturer of large dump trucks, stakes its value proposition as one of the world's most pre-eminent mining truck makers.

Dominance in CIS

Where Caterpillar dominates the mining truck market in North America, capturing an estimated 80% marketshare, in the republics of the former Soviet Union (CIS), the opposite is true, with BELAZ, a holding company with six divisions and almost 70-year-old history, owning more than 90% of the CIS market. Along with mining trucks, BELAZ also manufacturers underground mining machinery, lifting and special purpose mining vehicles, rail cars and owns a machine tooling plant.

“We're going after this market full blast. We're talking to big and small and all sorts of companies that are potential customers for BELAZ, and we're gaining plenty of momentum and have lots of interest”: Yuri Tarasov, executive director, Belaz North America

The mining trucks are made and assembled at its factory in the town of Zhodino, about 40 kilometres from Minsk, the capital of Belarus. BELAZ can easily produce up to 2,000 trucks a year, ranging from a 30-tonne payload vehicle to its massive 450-tonne 7571 truck, which is the largest mining truck on the market today. BELAZ trucks can be seen moving all types of minerals in 70 countries, with the strongest markets being the CIS, Europe, Mongolia, China, South Africa and Indonesia, which recently purchased a large fleet.

Cracking North America

However the BELAZ group has yet to sell many trucks to North and South America (with the exception of a few trucks in Chile, Venezuela and Cuba), but that is something the group hopes to change.

A year ago BELAZ set up an office in Richmond Hill, Ontario, with the intention of selling its first mining truck in North America. Privately-owned Belaz North America has the full backing of the BELAZ Group, which sees Canada, the U.S. and Mexico as a market it is eager to compete in, says Yuri Tarasov, executive director of Belaz North America.

“They're strong everywhere else, but North America and South America, not so much. So we set up just last year, and we're going after this market full blast. We're talking to big and small and all sorts of companies that are potential customers for BELAZ, and we're gaining plenty of momentum and have lots of interest,” Tarasov told MINING.com in a recent interview.

So how does an outsider get under the skin of the established mining truck insiders? According to Tarasov, the key is to support the truck buyer as much as possible, by bringing in all the necessary parts for the first year of operation, as well as support personnel.

“We're all ready to put a truck for testing anywhere in this market and show our North American customers that BELAZ is a reliable option,” he said. “And since we have lots of experience doing the same thing before, we'll bring all the parts required, we'll bring all the people needed to support the truck.” He said Belaz North America has spoken with major component suppliers like Cummins, MTU, Siemens and General Electric, and all have offered BELAZ their service support network.

Electric drive system

One of BELAZ's key value propositions is its electric drive system, installed in its 90-tonne models and higher. The BELAZ-7571 for example uses four electric motors to move the truck, has no hydro-mechanical transmission and uses minimum quantity of oil. The truck still relies on diesel to produce the electricity but the all-wheel- drive system is powered by two alternators, each driven by a 16-cylinder diesel engine. According to BELAZ the electric drive system reduces the cost per ton to transport materials, by operating 25% more efficiently.

“That technology allows for lower fuel consumption. It allows for a smoother ride, because you don't have jerks because there are no gear shifts, so there's no rock falling off of the truck because of those jerks, and there are no tires being cut by those pieces of rock once you drive off with them. So there are all kinds of benefits,” says Tarasov.

The drives are built by General Electric, Siemens and Electrosila, a Russian company. BELAZ trucks over 90 tonnes carry engines from MTU and Cummins, which supplies more engines to BELAZ than to any other mining truck maker, according to Tarasov.

Lower cost of ownership

While the electric drives are a little more expensive than traditional hydraulic drives, BELAZ prides itself on the cost of the truck over its lifetime (total cost of ownership) being lower than its competitors. This is primarily due to the greater fuel efficiency (less fuel burn) brought about by the electric drive systems, along with lower costs associated with maintaining a truck, such as labour and tires. BELAZ also keeps maintenance costs in check by selling individual parts separately rather than lumping parts together as a more expensive component. Finally, wages in Belarus are lower than in many other parts of the world, including the United States and Europe, where competing trucks are produced. This allows BELAZ trucks to have a lower price point.

Shorter delivery times

When the mining sector is flagging, equipment manufacturers usually have enough inventory to satisfy customer demand. But when the market booms, equipment makers have a tough time keeping up, and customers often have to wait for their orders, sometimes up to two or three years. Tarasov said BELAZ's assembly-line production system can more easily adjust to market demand than its competitors, resulting in shorter delivery times, even in boom periods. He said during the mining boom of the late 2000s, BELAZ was able to double annual truck production, which caused delivery time waits of a couple of months, not years.

“So a customer buying a truck from us today can be assured that, even if the market changes, we can still deliver on time and to their demand. Where there's no such assurance from the competition.”

Growing not shrinking

As it stands, Tarasov said Belaz North America's goal, of course, is to sell as many trucks as possible into the North American market, which includes Canada, the United States and Mexico. The two target trucks are currently the 240-tonne 7531 model, along with the 90-tonne 7558, a direct competitor with the Caterpillar 777. He sees potential in the Canadian oil sands for the 450-tonne BELAZ-7571, which can transport up to 500 short tonnes of material.

“The trucks are being buried on the soft roads, and they're pushing a wave of that oil sand when they're rolling. The 450-tonne truck not only has about 25% more capacity [than its closest competitor], it burns about 10-15% less fuel, and it is all-wheel drive,” Tarasov points out.

So how does the market look for BELAZ? Interestingly, while its chief North American competitor Caterpillar is closing plants and laying people off, Tarasov said BELAZ is going great guns at its factory in Belarus, pumping out more trucks to satisfy the Russian and CIS markets, which are booming right now. “They've sold out six months in advance already,” he said.

Asked about current higher commodity prices for some minerals, Tarasov said that of course is likely to boost demand for mining trucks, but what is also apparent is the need for mining companies to replenish fleets they were unable to invest in while commodity prices were down and they were struggling to remain profitable.

“We see that lots of people we speak with are starting to do something in 2018, 2019 and now 2020,” he said. “The fleets are getting old, but you cannot run them forever. So that's also upcoming. We might even see even a bigger problem than last time with the shortages of equipment. And that's where BELAZ can come in and solve that issue.”

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Swedish miner begins massive relocation of whole city

The entire Swedish city of Kiruna has begun a long-planned and quite challenging relocation to an area about 3km east (2miles) after ground fissures created by iron ore mining activity weakened the ground beneath it.

The decision, however, didn’t take any local by surprise. In fact, mining company Luossavaara-Kiirunavaara AB (LKAB) has planned moving the nearly 18,000 residents of Kiruna and all of the city’s buildings since 2004.

Swedish miner begins massive relocation of whole city

Map based on Google maps.

Over the next two decades, about 3,000 apartments and houses, several hotels, and 2.2 million square feet of office, school and health-care space will relocate east.

While some residents of what is Sweden's most northern town have moved already, the first of the town’s historic buildings was hoisted up on a truck Wednesday and transported to its new location, Radio Sweden reported.

State-owned LKAB, which is Kiruna's largest employer, has been digging deeper for ore in the area, which has increased the risk of Kiruna suddenly sinking into a hole.

The company had alerted authorities that mining more iron ore would mean further excavation, which —in turn— would destabilize the city's centre. But instead od closing the mine, the municipality decided to relocate its people.

LKAB is paying for a large proportion of the transformation, though it has said it is impossible to accurately ascertain the cost of the move.

Here's how the move is going so far:

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Anglo Asian Mining back in the black as copper output doubles

Azerbaijan-focused miner Anglo Asian Mining (LON:AAZ), the country’s top gold producer, has swung back to profit and sharply reduced outstanding debt on the back of higher copper output and a better bullion prices.

The London-listed miner doubled its copper production from 969 tonnes to 1,941 tonnes last year, thanks mainly to the first full-year of production from a new flotation plant. Silver production also rose, increasing six-fold in 2016 to 165,131 ounces.

Anglo Asian plans to develop seven mines in western Azerbaijan with estimated gold reserves of 430 tonnes.

Both metals helped offset a more than 16% drop in gold sales as the company ran into lower grades at its Gedabek mine, its main operation in Azerbaijan.

Copper and silver increased output, together with improved precious metal prices, also helped the company’s profit, which surged to $79.2 million from $78.1 million a year earlier.

For 2017, Anglo Asian expects copper production to reach between 2,000 tonnes and 2,400 tonnes, while it has a gold output target of between 52,000 ounces and 58,000 ounces.

The company, which started mining at its flagship Gedabek operation seven years ago, still plans to develop seven mines in western Azerbaijan with estimated gold reserves of 430 tonnes.

Shares soared on the news and were trading 7.83% higher in London to 18.60 pence at 2:15 PM GMT. So far this year, however, the stock is down almost 24%.

 

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Yancoal seeks expansion in Hunter Valley with $710m bid for Mitsubishi’s mines

Yancoal (ASX:YAL), the subsidiary of China’s Yanzhou Coal Mining that is buying Rio Tinto’s thermal coal assets in Australia’s Hunter Valley, is now going after Mitsubishi’s mines in the area.

The coal miner offered the Japanese company Thursday $710 million for its 32.4% stake in the Hunter Valley Operations mine (HVO), majority owned by Rio Tinto itself.

Yancoal Australia wants to become the country's largest pure-play coal producer.

The bid fulfils Yancoal’s obligation to make a “tag-along offer” to Mitsubishi under the deal with Rio Tinto to acquire its thermal coal division, Coal & Allied Industries.

If it goes through, the transaction will make Yancoal the new majority owner of HVO, adding to the company’s other coal operations across New South Wales, Queensland and Western Australia.

Yancoal CEO Reinhold Schmidt said that with Rio’s support, the company was looking forward to progressing the next steps in the Coal & Allied transaction to become Australia’s largest pure-play coal producer.

The Foreign Investment Review Board approved such transaction last month.

Mitsubishi has until June 23 to accept today’s offer.

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De Beers’ Forevermark brand inscribes its 2 millionth diamond

Diamond jewellery retailer Forevermark, which sells selected De Beers gems, has marked a milestone by inscribing its two millionth diamond — a 3.48 carat round brilliant that now bears a ‘2,000,000’ imprinting.

Less than 1% of the world’s diamonds are eligible to become Forevermark.

The diamond — mined, cut and polished in Namibia — will be set in a piece of jewellery at the Forevermark Design and Innovation Centre in Milan, Italy, De Beers said.

South African Louise Kriek, the 2015 runner-up of De Beers Group’s Shining Light Awards, will be in charge of the design as part of a three-month internship at the Milan centre.

De Beers’ Shining Light Awards support aspiring jewellery design students across Botswana, Namibia and South Africa.

The Forevermark brand was launched in 2008 with the promise of diamonds that are rare, beautiful and responsibly sourced. Since then it has expanded to reach 25 markets worldwide.

Last year, De Beers spent $85 million on marketing Forevermark. It sells very unique gems, each of which is inscribed with the brand icon and a unique identification number, invisible to the naked eye.

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Le stérilet, un contraceptif bien plus efficace que la pilule

Depuis quelques semaines, une polémique est née autour des effets secondaires potentiels du stérilet Mirena. Outre ces inconvénients qui resteront à approfondir, le stérilet (ou dispositif intra-utérin) présente un avantage certain par rapport à d’autres méthodes contraceptives : une étude parue...

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Samsung Galaxy S8 : son scanner d'iris trompé avec une simple photo

Les hackers du Chaos Computer Club viennent de publier la démonstration d'un piratage du système d'identification par lecture de l'iris du smartphone Galaxy S8 de Samsung. Une simple photo d'un œil et une lentille de contact ont suffi.

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mercredi 24 mai 2017

Silver price: Hedge funds and retail investors part ways

CHART: Hedge funds diverge on gold, silver priceGold for delivery in August, the most active contract on the Comex market in New York, was exchanging hands at $1,260.90 in after-hours dealings Wednesday as the metal continues to recover from two-month lows hit a fortnight ago.

July silver contracts were priced at $17.18 in afternoon trade in New York, like gold clawing back territory lost earlier this month. Silver is up just under 7% after hitting its lowest level for 2017 on May 9.

Hedge funds or so-called managed money investors in gold futures and options reduced their exposure to the yellow metal in recent weeks, but silver speculators have been exiting bullish positions at a head spinning pace according to trader positioning data supplied by the government.

In a trading note Saxo Bank points out overall bullish positioning or net longs in silver held by derivatives traders have plummeted from a record high to a 16-month low in the space of just five weeks.

Gold and especially silver ETF investors are taking an entirely different view of the market.

Silver ETF holdings have shot up by nearly a 1,000 tonnes as bargain hunters pick up metal during spells of weakness. Retail investors have also been pouring money into gold ETFs this year, despite a few wobbles along the way.

Silver price: Hedge funds and retail investors part ways

Source: www.TradingFloor.com

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Iron ore price drops to 7-month low

After recovering some of the losses suffered at the beginning of May in recent days, the iron ore price turned sharply lower again on Wednesday.

The Northern China import price of 62% Fe content ore fell 4.2% to $59.30 per dry metric tonne, the lowest since mid-November according to data supplied by The Steel Index. Benchmark prices are down a whopping 37% from their February highs.

Lower grade ore with 58% iron content declined to $43.80 a tonne, while 65% Fe dipped to $71.50, also a seven month low.

The weakness comes on the back of fresh worries about the health of the Chinese which consumes nearly three-quarters of the world's seaborne ore.

Earlier this week ratings agency Moody's downgraded the country's sovereign debt, citing concerns about  diminishing returns from Beijing's economic stimulus programs and the country's overheated property and building markets.

While China's output of steel reached record daily rates in April, record high stockpiles of nearly 140m tonnes have sparked concern over the actual strength of end-user demand.

According to data from Steelhome so far in 2017 inventories at the country's major ports have risen by just over 2 million, surpassing the 20.8 million added over the whole of last year.

Elevated stocks have not dampened importer enthusiasm however with total imports for the first four month of the year climbing nearly 9% to 353 million tonnes.

Bloomberg quotes Axiom Capital Management's Gordon Johnson as saying port stockpiles are mainly lower grade and following a recent slump in coking-coal prices, Chinese steelmakers "will probably shift toward this, and away from high-grade material":

"As this dynamic takes hold, we expect iron ore prices to sharply correct lower," Johnson said in an email.

Trading at $153 on Thursday premium hard Australian FOB met coal has now halved since hitting a mid-April peak of $314 a tonne according to TSI data. The coking coal correction was expected as exports in Queensland return to normal following cyclone outages.

Scrap supply

Another headwind for iron ore demand is increasing use of scrap in China.

In the past low pig iron prices and little recycling meant scrap did not play much of a part in the domestic industry, especially when compared to places like Europe where steelmakers charge up to around 18% scrap in basic oxygen furnaces (around 20% scrap is a technical limitation).

Platts reports basic oxygen steelmaking plants in China have nearly doubled their use of scrap to as much as 17.5%.

Chinese steel companies are retooling to take advantage of a slump in scrap (typically around 90% Fe content) prices "amid a glut resulting from a nationwide crackdown on induction furnaces, an official at China Baowu Steel Group said this week":

Assuming output of 700 million mt/year of hot metal, an increase in scrap charge rates to 15% from 9% would see additional hot metal output of 42 million mt, displacing 70 million mt of iron ore, the Baowu official said after the event.

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Une crème solaire à nanoparticules se veut plus naturelle

Filtres chimiques qui absorbent le rayonnement ultraviolet. Filtres minéraux qui constituent un véritable écran protecteur. Les fabricants de crèmes solaires recherchent toujours celle qui nous protègera le plus efficacement... et le plus naturellement. Et des chercheurs américains ont peut-être...

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CEO sees little chance of Samarco restart in 2017

The Samarco iron ore mine in Brazil – a joint venture Vale (NYSE:VALE) and BHP Billiton (NYSE:BHP) – is unlikely to resume operations before the end of the year.

Samarco Mineracao ceased operations in November 2015 following a deadly tailings dam burst. CEO Roberto de Carvalho told Reuters that talks with South American nation's environment authorities to restart operations is ongoing but there's only a "small possibility" of a restart this year:

"It is getting increasingly tight to resume operations this year," Carvalho said in a telephone interview. "Each day that passes makes it tighter."

At 30 million tonnes per year before the disaster Samarco's pelletizing operations supplied roughly one-fifth of the seaborne trade in the steelmaking raw material that attracts a premium price over iron ore fines and lump ore. Earlier Samarco said that should the mine reopen output would likely be capped at 19 million tonnes per year.

The uncertain timing of a new environmental licence to restart operations had forced the company to move to lay off over 1,000 workers last year. Samarco is also in debt restructuring talks with its bankers concerning $3.8 billion in outstanding loans.

A settlement in a civil lawsuit brought by Brazilian prosecutors for 155 billion reais (nearly $50 billion today) against the two companies and Samarco is being negotiated with a deadline for an agreement set for June 30.

In March last year Vale and BHP reached a deal with Brazilian authorities and the mine owners agreeing to pay an estimated 24 billion reais or $6.2 billion spread out over several years.

The disaster in Brazil’s Minas Gerais state that killed 19 people caused sludge to wash downstream into neighbouring state Espírito Santo through remote mountain valleys reaching the Atlantic ocean 600 kilometres away.

The benchmark Chinese import price for iron ore fines fell sharply to $59.30 on Wednesday, down more than 25% year-to-date.

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Workers block access to First Majestic’s La Encantada mine in Mexico

Shares in Mexico-focused First Majestic Silver Corp. (TSX:FR) (NYSE:AG) were slightly down Wednesday morning after the company revealed a group of unionized workers halted activities and blocked accesses at La Encantada silver mine.

The Canadian miner said the illegal labour action was in response to the company’s recently announced bonus offer in lieu of profit sharing, which is backed by the country’s national union of miners, metallurgists and steelworkers.

First Majestic’s stock fell 1.53% to Cdn$11.59 in Toronto on the news at noon and it was trading just 0.57% down in New York at the time.

The Vancouver-based silver producer said that it’s not clear how long the blockade will last, though it noted it was working with the leadership of the National Union in order to resume operations and bring miners back to work.

“This is a minor setback in our plans for renewed investment at La Encantada focusing on underground development and brownfields exploration, which will over time result in increased throughput rates and higher head grades,” Keith Neumeyer, the company’s president and CEO said in the statement.

La Encantada, located in the northern Mexican state of Coahuila, is Silver Majestic’s largest mine and the one where the firm is currently investing the most.

It warned that these types of actions, which are increasingly occurring in many other Mexican mining operations, could soon scare investors away, as metal prices are low, but taxes and fuel costs continue to climb.

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