Russia: FSUE “Rosmorport” Director Visits Vladivostok

From 22 to 24 August, 2013 the FSUE “Rosmorport” Acting General Director A.V. Tarasenko paid a working visit to Vladivostok.

During the visit the Acting General Director took part in the working meetings of the Adviser to the President of the Russian Federation Igor Levitin with the Governor of the Primorye Territory Vladimir Miklushevsky and the management of LLC Port “Vera”.

The participants of the meetings discussed issues of the joint efforts of FSUE “Rosmorport” and LLC Port “Vera” in construction and further operation of the coal terminal near Cape Otkrytyi in Ussuriysk Gulf with the estimated power of 20 million tons per year, and also the choice of the site for the terminal construction.

Read more: Australia: Gellibrand Pier Development Begins

Mariners are advised that the Gellibrand Pier wharf pile rehabilitation works have commenced.

Diving activities will be required at various stages throughout the duration of the works. Mariners are advised to navigate with caution in the vicinity of the works.

These development activities will be completed on or about 30 August 2014.

India: “The Maritime Agenda 2010-2020″ Introduced

The Government has formulated a Perspective Plan for development of the Maritime Sector, namely, “The Maritime Agenda 2010-2020”. This Plan has estimated the traffic projections and capacity additions at the Ports upto the year 2020.

The Government has decided to develop two new major ports with private participation under the Public Private Partnership (PPP) Mode, one at Dugarajapatnam in Andhra Pradesh and the other at Sagar Island in West Bengal. M/s. RITES Ltd. has been appointed as Consultant for preparing Techno-Economic Feasibility Report for the new port project in Andhra Pradesh.

For the new port project in West Bengal, M/s. RITES Ltd. has submitted the Techno-Economic Feasibility Report and action has been initiated for appointment of Transaction Adviser. As on date, Rs.1.392 crore has been released to Kolkata Port Trust for making payment to M/s. RITES Ltd. for carrying out the Inception Report on the feasibility study for port facilities at Sagar Island. In the year 2013-14, Rs.1.00 crore has been allocated at Budget Estimate stage for Research and Development Study of Major Ports.

The process of development of these new ports has been initiated.

This information was given by the Minister of Shipping Shri G.K. Vasan in a written reply in the Lok Sabha today.

Read more: Government Initiates Measures to Enhance Port Capacity 

The export of certain commodities like iron ore has declined in major ports including Mormugao Port. However, exportsfrom Major Ports like Ennore, VO Chidambaranar, Cochin, Mumbai, Jawaharlal Nehru and Kandla have increased.

The details of the exports from various ports in the country including Mormugao Port, year-wise during the last three years are given below:

The reasons for decline in exports from certain Major Ports is primarily due to restrictions on iron ore mining and the global economic slowdown.

The Government has initiated the following measures to improve cargo throughput in the Major Ports:

- Construction of new berths and terminals to enhance port capacity;

- Modernising berths with state of the art loading / un-loading equipments to improve operational efficiency;

- Initiatives by Ports to attract more cargo & increase throughput;

- Initiatives by Ports to diversify the cargo, particularly in Mormugao Port.

This information was given by the Minister of Shipping Shri G.K. Vasan in a written reply in the Lok Sabha today.

Irish exposed if Australian boom starts to shudder

There is no western economy that is more exposed to a risk of a hard landing, should China falter, than Australia...'

Australia is what Ireland once was. A nation obsessed with property. Newspapers bulge with glossy property sections; television is littered with DIY and home improvement shows.

It is simply impossible to plot a route through Melbourne, Sydney, Brisbane or Perth that doesn't involve bumping into a swarm of construction workers or 'tradies' building the latest addition to an Australian skyline.

In a nation where median home values have increased by 86 per cent in real terms from $259,000 in 2001 to $482,000 in 2010, property prices still reserve a place in the conversational Rolodex at dinner parties.

After 22 years of successive economic growth without a sniff of a recession, Australia is one of the wealthiest countries in the world.

"The decade to 2010 was one of considerable growth in the wealth portfolios of Australian households, with average wealth increasing in real terms, from $495,000 in 2002 to $684,000 in 2010," says University of Melbourne Associate Professor Roger Wilkins. Astute financial management, geological luck but significantly China were primary reasons why the world's forgotten continent has seen its wealth surge.

China gorged on Australia's natural resources, primarily its iron ore, a vital ingredient for steel and a building block for impatient industrial nations determined to influence the rest of the world.

Stretching back 150 years, mining has always been closely tied to Australia's economic fortunes. In this last decade, however, Australia experienced a mining boom.

Modern technology, entrepreneurial determination and world demand conspired to produce sprawling vast mines in deeply barren, sun-drenched regions across Australia. Surrounded by red soils in temperatures that surpass 40 degrees, workers, many of whom are Irish, earn an average of $2,000 (€1,300) a week extracting minerals such as iron ore and coal before supplying hungry world markets. It is a desolate life and a simple formula but one that reaps handsome dividends.

One man who has had a ringside seat from the very beginning of Australia's mining boom has been Rathfarnham native Mark Keogh.

Platinum unlikely to sustain rallies above $1500 - Standard Bank

Despite continued labour tensions within the South African platinum sector, platinum is unlikely to rally significantly above $1,500 per ounce for any sustained length of time, says Standard Bank.

In a note out earlier this week the Bank writes, that while the risk of supply disruptions remains large, "one of our major concerns on the sustainability of a price rally above $1,500 is jewellery demand that is likely to fall away if the platinum price rise to far, and to long, above $1,500."

The reason for this, the bank says is that China accounts for 70% of the world platinum jewellery demand (jewllery demand makes up around 30% of total platinum demand) and, it would seem that Chinese imports of the metal have become increasingly sensitive to changes in the platinum price since 2012.

"The latest import data from China indicates that China’s platinum imports have declined 6.6% m/m in July to 289Kozs," the bank writes. "YTD China platinum imports are almost unchanged, rising only 3% to 1.59mozs compared to the same period last year... If imports are indeed price sensitive, perhaps it should not be a surprise then that the platinum price averaged $1,537 for the first 7 months of 2012 and almost registered an unchanged average of $1,528 for the same period in 2013, resulting in a relatively flat import number YTD compared to 2012."

"In fact," Standard Bank adds, "the correlation between the 3-month moving average of platinum imports for China and the platinum price is –0.77 since the start of 2012, implying that as the platinum price moves higher, imports fall away."

One reason for this increased sensitivity, Standard Bank surmises is that China might have "gone through a cycle of stockpiling (over and above platinum consumed in jewellery, autocatalysts and other industrial demand) and that perhaps China is more content to buy platinum at low prices rather than at any price."

As a result of this, the bank reiterates, while supply shocks may push prices higher, in a world where demand for auto catalysts remains low and jewellery demand is likely to peel off as prices rise, "for the time being rallies to far above $1,500, are likely to create opportunity to short the metal."

Gold Fields posts Q2 loss, snaps up Barrick assets

Hit by lower gold prices and rising costs at home, South Africa’s Gold Fields reported a second-quarter loss on Thursday and said it was expanding abroad with a $300 million deal to buy three Australian mines from top producer Barrick Gold.

The company said it lost $129 million in the three months to the end of June compared with a net profit of $27 million in the previous quarter and $105 million in the same quarter last year. This made for a net attributable loss of 18 U.S. cents per share, compared to net earnings of 4 cents per share in the previous quarter.

Gold Fields earlier this year separated off the bulk of its assets in South Africa, where labour and political risks are seen as relatively high since the sharp fall in world gold prices, a point underlined this week by a new strike threat from the country's largest miners' union.

"The gold industry (in South Africa) is frankly in crisis at the moment," Chief Executive Nick Holland told Reuters.

Gold Fields’ shares were down 9 percent at 59.83 rand by 0900 GMT, with the strike threat in South Africa hitting the shares of other producers in the country such as Anglo Gold Ashanti, which fell almost 5 percent.

The company said the Barrick acquisition, which will be 50 percent payable in shares, will add 452,000 ounces to its annual production and make it Australia’s third largest gold producer. The company expects to produce between 1.83 and 1.9 million ounces this year.

Following the acquisition Australia will be Gold Fields’ largest regional production centre, it said, accounting for 42 percent of group production, with Ghana decreasing to 34 percent and Peru and South Africa remaining largely unchanged at 13 percent and 11 percent respectively.

"The acquired assets are located in a preferred jurisdiction that we know well and where we have significant operational and management experience and infrastructure to maximise the value of the acquired assets," Holland said in a statement.

"This acquisition further repositions Gold Fields as an international gold producer with a well-balanced global footprint, which should enhance our risk profile and global credit rating.

The company said its second-quarter loss was mostly due to impairment charges in Ghana of $143 million at its Tarkwa mine and $127 million at Damang.

The charges related to its decision to curtail processing activities at the operations because of the lower gold price.

The average gold price in the June 2013 quarter was 13 percent lower at $1,405 an ounce and the spot price has lost around 30 percent since its record high of just over $1,920 scaled in September of 2011.

Rival AngloGold also has troublesome assets in Ghana and its chief executive said this week its flagship Obuasi mine there was unsustainable.

But Holland said Gold Fields remained committed to the west African country which is the continent's second largest bullion producer. Tarkwa's total cash costs are relatively low at just over $800 an ounce.

"Tarkwa is still a great operation and we are not concerned about Tarkwa," Holland said.

Damang's road to solid profitability will be a longer one.

"I think we have done a lot of capital stripping to uncover what we believe is still a world-class ore body and the challenge now is for us to bring that to account in a profitable mine. It's got good grades," he said.

Holland said the company was also looking for a buyer for its Arctic platinum project in Finland.

SA coal industry in crisis

SA's coal industry is at a crossroads and unless government makes the right choices, and soon, Eskom will not be able to keep the country's lights on, a new report has shown.
The SA Coal Road Map, which was published after years of research into the state of SA's coal mining industry and its likely future, calls for, among other things, urgent improvements in SA's investment climate. Confirming Eskom's claims that it faces a looming coal supply crunch, the report warns that should government delay, or make poor decisions, there will be serious economic consequences.
The road map was established under the auspices of the Fossil Fuel Foundation and was compiled with the support of the coal producers, Eskom and the departments of energy and mineral resources.
According to a mining industry source, "that's the most important feature of the road map. Its findings and the future scenarios it has laid out have buy-in across the board. Government ignores these findings at its peril." A key issue is that the obvious providers of the huge amounts of capital required to build the new coal mines that are needed - at a cost of R10bn-R15bn each - are global resource heavyweights like Anglo American and BHP Billiton . They supported Eskom during its previous major construction programme in the mid-1970s to the mid-1980s, when they signed contracts to build mines that would supply coal on 40-year contracts to various power stations.
But there are no guarantees that they will do so again. And if they do, the commercial terms for the new supply contracts are going to be very different from those negotiated 40 years ago.
Those coal resources are now fast running out, in part because the power stations have been run at higher utilisation rates than originally planned. Repeated delays on bringing the new Medupi and Kusile stations on line mean that Eskom must keep the old power stations running, and they need new sources of coal to do so.
A crucial difference is that during the previous builds, mining groups were restricted largely to investment opportunities inside SA. Now they have global freedom. There was also a more practical working relationship then between the coal producers, Eskom, government and the country's port and rail authorities.
The road map notes: "At present investment in SA is being deterred due to the unfavourable policy and legislative environment and labour risks and better returns in other commodities and geographies. "Though some of these investors could be replaced by domestic entities, if the desirability of investing in SA coal mines declines further, this could lead to future reductions in the availability of coal for both local and export markets."
What government does about the situation could boost or cripple the coal mining industry, which is concerned about heavy-handed state intervention by means of the revised Mineral & Petroleum Resources Development Act. The big worry is that, to help Eskom, government might impose domestic coal price control or move to limit exports by either setting physical quotas or imposing financial levies.
The road map is cautious in its handling of this, clearly because of the influence of the departments of energy and mineral resources in the report, but private business sector bodies have already spoken out. Mike Rossouw, chairman of the Energy Intensive Users Group, which represents the country's biggest power consumers, says government must not introduce any policy aimed at capping coal prices or forcing the allocation of coal.
"That will have the exact opposite effect of causing prices to rise and supplies to dry up," he says. James Lorimer, DA shadow minister of mineral resources, says: "Government's hope that the [supply] gap will be filled by junior mining companies seems highly unlikely as neither the capital nor the expertise is available to mine coal in the required quantities.
"Exporting coal is where mining companies make higher profits. "Further restrictions under the proposed amendment bill, on top of an already unfriendly legislative and regulatory climate, mean that major coal mining companies are looking to other countries to make new investments, rather than building large, new mines that SA needs."
Neither Lorimer nor the road map says so, but the most obvious example is BHP Billiton, which has chopped its exposure to the SA coal industry over the past decade, selling off a string of mines and undertaking no new growth projects. Eskom's particular problem is that it needs around 4bnt of extra coal for its older power stations and, according to the road map, it has so far secured only 2bnt.
Crucially, about 800Mt of the needed 2bnt is "at risk" because there is now foreign competition for it from India, which has also embarked on a programme to build a string of new coal-fired power stations needing imports.
There was no such alternative buyer in the mid 1970s. While Eskom's power stations have been designed to burn low-grade coal - typically around 19MJ/kg (megajoules per kilogram) - a number need coal with thermal qualities in the range of 22MJ/kg-24MJ/kg.
That competes directly with the 23,5MJ/kg specification of the new lower-grade RB3 export classification for sales out of the Richards Bay Coal Terminal. The road map points out that "the possibility exists that unless the price Eskom is prepared to pay approaches a similar level to what the mines obtain from exporting this coal, or unless new players enter the industry with alternative funding or lower return expectations, producers could export a portion of the coal that is required for local use."
It all boils down to the returns the mining companies want to make out of the investments required, which will be reflected in the prices charged for the coal. The road map says: "At the heart of the deadlock between industry and Eskom over new coal projects is disagreement on the sources of this capital and the returns that are required to attract the capital... neither the state nor Eskom has publicly stated what they regard as a desired and fair rate of return."
The road map stresses that some fast decisions on tough issues critical to the future of the SA economy are required from government. The report does not say so, but bitter experience shows that making such tough decisions is a government weakness. In 2000 it opted to delay construction of Eskom's next power station. It led to the current energy crisis, which started in January 2008. Government is also running so far behind on the decisions required to implement its ambitious nuclear energy programme that the road map suggests it is already too late to build the first nuclear station by 2023 as proposed.

What Do Platinum, Coal, and Manganese Have in Common?

There are today a lot of hidden ties between different business sectors and far-flung parts of the world.

And I'm increasingly convinced that many of the global threads in the minerals industry are today running through South Africa.

Most of us know the nation is a critical supplier of gold and platinum. But lesser known is that South Africa also supplies a good chunk of the world's palladium, chromium, titanium, vanadium, manganese, vermiculite and zirconium.

These are key parts of the global mineral supply chain. And they may be increasingly in jeopardy.

That's because of a movement afoot to amend South Africa's Mineral and Petroleum Resources Development Act.

The Act is old (formulated in 2004) and vague. Draft amendments were presented in December. And miners immediately jumped to arms over several of the proposed changes.

These onlookers sent in a slew of suggested revisions to the government. But a "revised" draft unveiled in June showed almost no substantial changes.

The government is now taking comments on the new bill for the next few weeks. After September 6, they will look to go final with the amendments.

A look at some of the proposed changes shows why miners are upset. The new laws may require increased levels of in-country processing of minerals. The code also contemplates a 10% confiscation of revenues for miners with liabilities on old mines. Even those where closure certificates have already been issued.

One of hardest-hitting clauses may be the declaration of strategic minerals. Speculation is the government may look to control supply and pricing of commodities it deems important to national interest.

Coal has already been identified as one of those strategics. And here's where the unexpected ties come in.

As we've discussed, India is ramping up thermal coal demand in a major way. And South Africa is one of the few nations positioned to affordably supply coal there.

India has been increasingly bringing in South African output. But that could change quickly if a strategic declaration is made. Leaving the Asian coal market even tighter.

Just one example of how this critical juncture for South Africa's mineral business could pull strings around the world. Keep an eye on this development. And watch for the threads starting to twist (or unravel).

Here's to the interconnectedness of things,

Six weeks of gold mining wage talks in SA, zero progress

After six weeks of talks between South African gold mining companies and unions over miners' wages, negotiations have gone nowhere, increasing the prospect of strikes in a declining industry dealing with mounting costs and poor prices.

Gold mine stoppages could start as early as next week, reports Reuters, causing further damage on Africa's largest economy, which is already losing $60 million a day because of a strike in the car manufacturing sector, involving over 30,000 workers.

Last week, union leaders rejected the newest offer by the Chamber of Mines to raise wages by 5.5% – at par with inflation rates. This represents a 0.5% increase from their previous offer, 1.5% on the initial offer but far below union demands.

South Africa's chamber of mines represents the country’s main gold producers, such as AngloGold Ashanti (NYSE: AU) (ASX: AGG), and Gold Fields (NYSE: GFI).

Analysts agree the outcome of the stuck talks may push gold producers to leave South Africa or simply close down all operations, as costs continue to escalate.

In early July, the chamber’s chief executive officer, Bheki Sibiya, said a wage negotiation failure would likely destroy South Africa’s largest export industry and the nation’s credit rating.

“Neither the industry nor the country can afford yet another wave of calamitous workplace disorder that delivers additional global uncertainty and becomes the cause of further downgrades of South Africa’s sovereign credit rating,” Sibiya wrote.

Representatives for the country’s two main mining sectors, platinum and gold, have warned than any significant increase in wages will risk more job losses and trigger closures.

Based on a deadline set by the country's Commission for Conciliation, Mediation and Arbitration, a settlement in the gold sector must be reached by this coming Saturday, August 24.

Hannans declares maiden resource in Sweden

ASX-listed Hannans Reward has announced a maiden Joint Ore Reserves Committee-compliant resource of 2.3-million tonnes, grading 1.74% copper and 0.6 g/t gold for its Pahtohavare project, in Sweden.

An exploration target of between two-million and four-million tonnes, grading between 0.3% and 0.7% copper has also been estimated for the Eastern deposit of the project area.

“The resource and exploration update represents the culmination of 12 months of historic data compilation and validation by Hannans at the Pahtohavare project,” said MD Damian Hicks on Tuesday.

“It is pleasing to finally get some hard numbers around what ore and potential ore remains at the two underground deposits, and to also see a significant oxide copper/gold resource at Central.”

Hicks added that Hannans Reward would now look to build on the current resource at all four deposits making up the Pahtohavare project, with the priority being placed on the Central deposit, where reverse circulation drilling had recently been completed.

Read more:BHP ups dividend despite profit slump

BHP Billiton will defy short-term market ructions and push ahead with $US2.6 billion worth of spending to increase its exposure to the potash market.

The decision to spend on developing Canada's Jansen Potash mine was announced on Tuesday amid a weaker than expected set of full year results.

BHP reported $US11.8 billion worth of underlying earnings, well below the $US12.6 billion that a consensus of analysts were expecting. Net profit came in at $US10.9 billion ($12.3 billion), down 29.5 per cent from the previous year.

Shareholders will get a final fully-franked dividend of 59 US cents, up from 57 US cents last year, taking the full-year dividend to $US1.16 per share, up 4 cents from last year.

BHP blamed the miss in its underlying earnings on a "temporary increase in the group's effective tax rate" as well as financing charges related to some recently issued debt securities.

BHP has been on a major cost-cutting drive for close to a year now, and today estimated the cuts as being worth $US2.7 billion with "a lot more to come".

"This is a strong result in what I believe are challenging times," said BHP chief executive Andrew Mackenzie during a media teleconference this afternoon.

The result is dramatically lower than both last year's $US17.1 billion in earnings before asset write downs, and the monster $US23.6 billion underlying profit set in the boom year of 2011.

But the potash decision will dominate today's results, and will gradually increase BHP's exposure to the world's growing demand for food, given the commodity's role in making fertiliser.

BHP announced it would spend $US2.6 billion developing mine shafts at Jansen, but that money will be sequenced over a number of years and average about $US800 million per year.

BHP boss Andrew Mackenzie also said BHP would consider developing the project in partnership with other companies as a way of pursuing ''a development path that maximises returns for shareholders''.

BHP has already spent about $US1.2 billion firming up the Jansen potash project, and has spoken of its potential to become the company's ''fifth pillar" alongside iron ore, coal, petroleum and copper.

The decision to invest comes at a time potash prices are expected to fall on the back of a cartel collapse in Europe, and also as BHP seeks to contain capital expenditure to $US16 billion in the 2014 financial year.

Mr Mackenzie said there were reasonably positive signs that China would achieve annual economic growth of between 7 per cent and 8 per cent.

He said the gradual urbanisation of China would provide a "significant spark to demand for many of the commodities we produce".

BHP shares edged 1.4 per cent lower to $36.48 on Tuesday afternoon in anticipation of the full year results.

GLENCORE SEEKS FRESH START WITH $7.7 BILLION HIT TO XSTRATA

LONDON (Reuters) - Glencore Xstrata took a $7.7 billion (£4.9 billion) hit on mining assets acquired in its takeover of Xstrata, drastically reducing the value of projects in the early stages of development.

The diversified trader and miner announced the writedown as it posted a 9 percent drop in core first-half profit in its first results since completion of a 16-month acquisition that coincided with falling commodity prices across the industry.

Miners have been pummelled by billions of dollars in writedowns since the start of 2013, with cooling mineral prices and demand prospects denting the value of mining projects and boom-year deals.

In absorbing the impact of a weaker market, Glencore wiped out all the goodwill value it had provisionally allocated to Xstrata's mines at the time of the merger.

"We just had to value the business with a blank sheet of paper," Chief Financial Officer Steven Kalmin said, adding that the group had taken a "fairly conservative approach".

Glencore did not break down the impairment, but much of the hit is expected have been down to early-stage projects and so-called greenfield operations - mines built from scratch, which have long been unpopular with Glencore management. These include the $5 billion nickel operation Koniambo in New Caledonia.

The company dismissed the idea that the writedown demonstrated poor timing or an excessive price paid in the all-paper deal for the Xstrata shares it did not already own.

"We took a decision at the time to pay that ratio based on what we knew on that day, and we were happy with it," Chief Executive Ivan Glasenberg said. "We do believe we are going to get it back in time and we do feel comfortable with the deal."

NICKEL PAIN

Glencore itself was not immune to falling nickel prices and took a $452 million hit on its legacy Murrin Murrin operation in Australia. Nickel, used in stainless steel, is trading at almost a quarter of pre-crisis highs hit in 2007.

"Equity markets have already de-rated the value of mining assets - share prices are down by a lot since last year, and the book value of Xstrata did not reflect that," Jefferies analyst Chris LaFemina said.

"Other companies had taken writedowns, but Xstrata had not done that yet. It is really just catching up with the industry."

Asset sales are also expected to come out of Glencore's review of Xstrata's assets, but Glasenberg said he was in no rush to sell even the unpopular greenfield projects.

Glencore has already flagged the start of a sale process for $5 billion-plus Peruvian copper mine Las Bambas - demanded by Chinese antitrust regulators - and said on Tuesday that interest was "very strong", mostly from Chinese suitors.

Glencore hopes to close that sale by the end of the year.

Shares in Glencore were down 1.4 percent at 1340 GMT, underperforming a 0.8 percent drop in the wider sector, as metal prices fell and miner BHP Billiton missed its forecasts.

Glencore was hit by weaker prices in the first half, with adjusted core profit - earnings before interest, tax, depreciation and amortisation (EBITDA) - down 9 percent at $6 billion, at the higher end of analyst estimates.

OUTPUT UPLIFT

Improved output from mining operations in copper and coal helped to cushion the full impact of weaker prices, which took $2.2 billion off Glencore's operating profit.

It also benefited from profit from its trading arm, with adjusted operating profit for marketing alone rising 6 percent to $1.2 billion as metals and profits from trading oil and coal offset the impact of a weaker agricultural contribution.

There was a 39 percent drop at its industrial arm, which includes the group's mines.

Net earnings came in at a little more than $2 billion, down 39 percent on the same period last year.

Glencore's completion of the Xstrata takeover three months ago ended a marathon deal for Glasenberg, whose team now faces the challenge of digesting its biggest acquisition.

The company said that progress on integration was exceeding expectations, with achievable cost savings likely to be "materially" above previous guidance of $500 million a year.

It is still seeking a new chairman, a role currently held by former BP boss Tony Hayward in an interim capacity. Glasenberg said Hayward was a candidate, but Glencore will struggle to appoint the chief executive of a listed company - Hayward is head of oil firm Genel - to that full-time role.

Glasenberg brushed off questions over his own future at Glencore, where he is also the largest single investor, telling analysts he was "not going anywhere".

Glencore is expected to update the market on the integration, progress and associated cost-savings on September 10.

Amplats confirms 6900 worker cuts

World number one platinum producer Anglo American Platinum is to begin laying off an estimated 6,900 workers in South Africa on September 1.

"A month's notice period for affected employees will commence on 1 September," said Amplats chief executive Chris Griffith on Monday, finalising plans to cut 6,000 mine and 900 corporate jobs to save around $US400 million ($A438 million) a year.

The ultimate number will depend on "voluntary severance packages, early retirement, redeployments and the filling of internal vacancies".

The plan, initially put forward in May, comes after talks with the government and unions.

Amplats had first proposed around 14,000 job cuts. The firm, which accounts for almost 40 per cent of global platinum sales, said it will aim for production of 2.2 to 2.4 million platinum ounces per year.

"The implementation of our proposals will help us create stability for the business," said Griffith.

Amplats has been one of several major international mining companies that have been pummelled by labour unrest.

Many of the firm's most productive mines are in the restive Rustenburg area, which is also home to Lonmin's Marikana platinum mine, the scene of deadly violence a year ago.

On Friday the comrades and families of 34 miners shot dead by South African police marked the first anniversary of the bloodbath which shocked the world, and the mining sector.

Amplats profits have been obliterated by high wage bills and increased electricity costs.

At the same time, expensive deeper mines yielded lower grade metals.

A very public suicide note from an ex-sports reporter, gold investor

A Kansas City man's website explaining why he killed himself yesterday morning along with a debunked treasure map has gone viral (mirror website).

Martin Manley, who covered sports for the Kansas City Star, explained why he decided to kill himself at the age of 60. The detailed explanation, along with a weigh-in on US economy and conspiracy theories, has been picked up by the Business Insider,Mashable, Gawker and the front page of Reddit.

Coordinates to a possible treasure stash were posted within his Suicide Preface. Overland Park Police, which confirmed Manley's suicide, said on Facebook that the claim was a hoax

Manley said he wanted to commit suicide while he was in full control of his faculties, claiming that health, depression or other external factors were not pressing.

"I’ve planned to end my own life for as long as I remember. I didn’t put a date on it, however, until June 11, 2012," writes Manley.

"I never accepted the (what I would call…) archaic notion that I should simply die at some point – either in a long drawn out miserable death or in an instant for which I was not prepared. That was an insane thought in my orderly world and I knew the only way I could be confident about going out the way I wanted was to do it at a relatively early age."

Finances were not issue, and he invested heavily in gold before the bull market.

"I had no financial problems. I sold my house which was completely paid for in 1998. The same year I bought $30,000 in 1/10 ounce gold coins and pre 1965 silver coins. Gold was $300/ounce when I bought it and silver was $4/ounce. Gold went up to $1,700 and Silver to $44 making my stash worth over $200,000."

Manley did leave some parting shots at conspiracy theorists.

"Conspiracy theorists don’t want to face obvious questions. Somehow, they would rather revel in the excitement of the mystery of what is (or might be) happening in some secret room. Presumably, it confirms their belief that they are smarter, or at least more perceptive, than the masses – when, in actuality, the masses are LTA’sO."

He also took a shot at politicians in his section Financial Collapse.

When the fiscal cliff crisis came about, the bozos in Washington actually decided to try to find a way to cut $1 trillion in debt over the next 10 years. Of course, they have failed miserably in their attempt to do that. But, let’s say they were successful. All that means is $100 billion per year! Big deal. That’s a drop in the ocean and they can’t even come up with that. The U.S. is adding at least a trillion every single year to the debt!

The estimates are that our present $17T in debt will be $22T by the time Obama leaves office. I seriously doubt if it will only be $22T because I see no evidence the federal government will do anything to stem the tide of massively spending more than it takes in. But, it doesn’t matter if it is $22T or $25T or $30T, the notion of slowing annual deficits – thus slowing the rate the debt increases – is laughable. These bozos can’t even find a way to cut one cent off the debt when facing financial calamity.

And, that doesn’t even count the $124 Trillion “unfunded liability” – Social Security, Medicare, Prescription Drug program, Federal pensions..

Cuadrilla Scales Back Balcombe Shale Gas Drilling as Anti-Fracking Protesters Descend on Sussex

Cuadrilla Resources is scaling back its exploratory drilling work at the Balcombe site in Sussex after police warnings of potential civil disobedience ahead of several days' protesting by a thousand anti-fracking campaigners.

Balcombe will see protesters descend on the sleepy Sussex village for the No Dash for Gas event, a four day long camp against Cuadrilla's drilling in the area, as the firm attempts to ascertain if the shale gas trapped in the rock below can be extracted at commercial levels.

If Cuadrilla's exploration is successful then this could lead to the controversial fracking process - using hydraulics to fracture shale rock and release the gas - being used at the site, though the energy firm has said this is "unlikely".

"After taking advice from Sussex Police, Cuadrilla is scaling back operations ahead of this weekend's No Dash for Gas event," said a Cuadrilla statement.

"During this time, our main concern is the safety of our staff, Balcombe's residents and the protesters following threats of direct action against the exploration site.

"We will resume full operations as soon as it is safe to do so."

The Environmental Campaign

Environmental campaigners say there is a risk that chemicals used in the fracking process could leak into the water supply and contaminate it, but the industry says all proper procedures, risk assessments and regulations are in place to make this event extremely unlikely.

Critics also say that the focus on shale gas in Britain, a fossil fuel, is a distraction from the country's climate change obligations and the government should instead focus primarily on renewables, such as wind power.

"We are excited to be here in Balcombe to stand in solidarity with the local community in opposing dirty fossil fuel extraction," said Ewa Jasiewicz of the No Dash For Gas campaign ahead of the four day protest camp in Sussex.

"The camp aims to be fully accessible and safe space where locals and guests alike will feel welcome. We will leave the site as we found it."

Sussex Police said they are working with the protest's organisers and the local community to ensure the event is peaceful and causes minimal disruption.

"We have been contacted by one organiser and this is important as there are many aspects that need to be considered, not least arrangements for fresh water and sanitary arrangements at their chosen camp site," said Sussex Police Superintendent Lawrence Hobbs.

"However it is not clear if all of the protesters are currently represented and it is essential that wherever they may be planning to camp, there is easy and unobstructed access to get to anyone who may be in need of the emergency services.

"We are acutely aware of the impact that this is having on the residents of Balcombe and back their call to protesters not to engage in any criminal activity in the pursuit of their aims.

"Indeed, our engagement with Balcombe people who are protesting at the site and the vast majority of those who have travelled from further afield has been mutually rewarding and we have been able to facilitate their right to assemble and protest."

Cuadrilla started exploratory drilling at Balcombe in early August. It installed a 3,000ft vertical well.

At the end of July, 18 anti-fracking protestors were held by police at the site after taking direct action. Some were trying to block Cuadrilla's vehicles by sitting in the middle of the road leading to the site.

UK's shale gas potential

A British Geological Survey (BGS) said there is as much as 1.3 trillion cubic feet of shale gas lying under Yorkshire and Lancashire alone.

If it can be commercially extracted, it will give the UK increased energy security as there will be much less reliant on foreign imports to maintain supply.

However, the energy industry has already warned that this will not necessarily lead to lower bills for consumers as the gas will still be affected by the global wholesale price.

As it stands, planning responsibility for shale gas extraction projects lies with local councils, but if the potential can be realised then it is likely that the government would officially designate such projects as nationally significant - meaning ministers will take over planning permission powers from local authorities.

The government fears progress on drilling work may be held up by a drawn-out planning process as local authorities look to use their powers to delay or block work from taking place in their areas.

In a bid to appease concerned local communities, the government announceda support package for those living close to shale gas extraction sites.

Every affected community will get £100,000 and 1% of revenues from the gas that is successfully extracted. Firms must also sign up to a community engagement charter to ensure locals are continuously consulted about any work planned.