Mining News

Archive for the ‘Mining’ Category

Mining concessions have reached a new record: June 2011 totaling over 24 million hectares, equivalent to 18.91% of the country. This means that in 6 months, mining concessions have grown by nearly 3 million hectares, an unprecedented event. Apparently, the current government has sought to ensure access of investors to make concessions before they complete the change of authorities.

TLC: Who wins, who loses. The investment chapter of the Peru-US FTA would reward a company that failed in all its environmental and social obligations in Peru. The company Doe Run Peru and the Reno Group had decided to take the Peruvian state to international arbitration under the FTA between Peru and the United States, seeking a compensation of no less than U.S. $ 800 million. This process has great progress by the company, who have the backing of 8 members of Congress in the U.S., and have a very definite strategy, said José De Chive, Coordinator of the Observatory CMO, and remarks that the state runs the risk of indemnify a company that has been contaminated for years, “the state has reacted very slowly and without any strategy, we find a company that is on the defensive against a weak state.”

And this issue Puno events in recent weeks mark a turning point in the evolution of conflicts related to mining in Peru. There are several factors to consider: never before has a conflict had forced the executive to produce many rules: three decrees and many other supreme resolutions, which repealed the Santa Ana project grants, suspend all grants in Puno ordered the cleaning of the basin Ramos River. Therefore, the regulations issued open a Pandora’s Box of questions from businesses and even possible arbitration proceedings under the investment chapters of FTAs.

With this scenario will not be easy for the new government to reverse this situation and there are no miracle cures. It is gradually regain confidence through a set of corrective policies that attack the causes of the sharp conflict, the stagnation of production and environmental problems in the mining sector. It is expected that the new authorities and various interest groups linked to the industry (companies, social organizations, etc.) can help design a new scenario that can build governance arrangements for extractive industries in the country.

Therefore, inheritance of the APRA government on mining is negative because of where you look. The increased value of exports and higher profits for companies in recent years due to high metal prices and in no way to better production performance or public policies implemented.

Instead, the postponement of the law of prior consultation, the decrees of the “dog in the manger”, to replace the income tax on the “miner’s mite” and lack of environmental enforcement in the sector have been some bad decisions that ended up deepening mistrust and discomfort of entire populations. The lack of political will to address some fundamental issues leave a crossroads for the new government must also address at least two international arbitration proceedings under the FTA.

The Observatory of Mining Conflicts, makes monitoring of five regions, according to the maps of concessions Apurimac is the region that has more land concessions: 56.52%, followed by Cajamarca: 48.47%; Piura: 27.48%; Junín: 24.68% , and Cusco: 18.12%.

The start of the new national government will mark a stage that a clear impact on the management of mining conflicts. The test cases analyzed from the observatory show what is happening in the country, marking the main trends at the regional level and raise the pending social agenda on the development of mining.

Cases by region:

In Piura has a climate conducive to the final decisions to protect important ecosystems such as deserts and water sources. However, the threats do not stop: it has begun a media campaign that seeks to reclaim the mining project and keep coming Tambogrande information that confirms the interest of Chinese companies questioned by the Rio Blanco project. Then there are the threats to the expansion of informal mining in districts like his, toad and Las Lomas.

Apurimac is emerging as a new center for mining investment in Peru. The growth of mining megaprojects formal and artisanal mining has deepened the dispute over access to resources in the catchment areas of projects. Among the topics of conflict also puts the demand for employment and employment expectations of populations.

In Cusco, the conflict over Makes Segues II, still cannot find a definitive solution. The final decision rests with the Constitutional Court and this case marks an important milestone in a kind of conflict will become increasingly recurring disputes over water resources. This region also recorded a number of new mining projects, in addition to the project Antapaccay, the Anglo-Swiss Xstrata.

In Junín, the Peruvian government runs the risk of Doe Run compensation of no less than $ 800 million. TLC: Who wins, who loses, the investment chapter of the Peru-US FTA would reward a company that failed in all its environmental and social obligacxiones.

In Cajamarca, public complaints by mining pollution episodes are common and therefore the population makes strenuous efforts to protect sources of water, this time with the support of regional authorities. The official logic is still imposing projects without social participation in decision-making. A clear example is the company Tantahuatay Coimolache Mining (Group and Southern Copper Buenaventura).

The precious metal miner Fresnel reported a record production of silver and gold in the second quarter, driven by its mines Suction and Soledad-Dipoles in Mexico at a time when the price of the yellow metal traded at record highs.

The total production of silver, including that provided by the agreement Silver stream, rose 7.2 percent, to 11.4 million ounces, while gold production jumped 20.6 percent to, 110 000 070 ounces. Excluding Silver stream, the Mexican mining produced 10.5 million ounces of silver.

Numbs Corp analysts expect production to be stable in the first quarter with 9.1 million ounces of silver, excluding Silver stream, and 96 000 ounces of gold.

Shares in mining in London rose 2.4 percent at 13:11 GMT.

“In the second quarter we continued to focus on operational discipline and cost reduction initiatives, while our exploration program remained on track with encouraging results in several projects,” said the chief executive of mining, Jaime Lamely.

Gold prices rose to a record on Thursday, extending gains for the ninth consecutive day, after Moody’s warned that the U.S. could lose the “AAA” rating for its debt, and the possibility of more monetary stimulus Reserve Federal and deepening of the debt crisis in Europe.

“One thing that is driving the price of gold and silver investment demand is the macroeconomic conditions and see the world in such a way that promotes investment in gold and silver,” said Arturo Espanola, director of investor relations Fresnel in a conference call.

The price of silver rose for the third consecutive day. Silver is often more volatile than gold and fell so sharply in May that is a little away from its historic high.

Fresnel in 2011 expects to produce about 44 million ounces of silver, including Silver stream, and 400 thousand ounces of gold.

The miner expects a rapid increase in production at its newly opened Suction mine in central Mexico, along with other expansion plans, may help overcome BHP Billiton as the world’s largest producer of silver.

BHP Billiton is currently producing more silver as a byproduct of other metals. BHP produced 45.4 million oz of silver in the year to June 2010.

Two miners were rescued alive on Sunday after being trapped for 180 hours in a coal mine collapsed in the autonomous region of Guangxi Zhan, sources with the rescue.

The workers were among the 18 that were caught last July 2 when part of the tunnel collapsed after several days of heavy rain.

Rescuers reported that at 03:00 hours this morning heard faint sounds made ​​by the workers, which they accomplished by placing them in a ventilation tunnel 320 meters underground.

More than 110 rescuers tried this afternoon to clear the tunnel, which was filled with mud after the collapse.

A total of 71 miners were working in the pit when the accident occurred, 49 of who escaped. So far rescuers have recovered four bodies.

Three examinations being conducted by the Group Mexico mining, one of the largest copper reserves in the world, in Chile. The company, which holds deposits in the U.S., Mexico and Peru, and bills U.S. $ 7,500 million a year, found 20 million tons of ore (not copper) in Ojos Del Salado, one of his explorations.

However the volume is still insufficient to make large investments as required by this business. He explains the CEO of Group Mexico, Xavier Garcia de Queued, who adds that in a year and a half have conclusive studies on the subject, which could trigger its final landing in Chile.

Meanwhile they are attentive to the present market opportunities for new developments.

Growing up in Chile and other Latin American countries is in their fundamental objectives. This mineral has 70 million tons of copper in reserves, aims at three or four years, exceed 1.2 million tons of copper a year.

 

A report by the agency revealed that this activity proceeds under the influence of illegal groups.

The extraction of coal, gold and other materials is done without permits, a work which in turn inevitably pollutes water sources and air, and is at 44 percent of Colombian municipalities.

And, as it has spread like a cancer, not overlooked. Mining the ‘fact’, informal, improvised, and that does not respect the ecology of the places where it is practiced, is representing 30 percent of total national mining.

Thus he could draw up a report on the subject recently made by the Ombudsman in 1,010 municipalities and that time could know exclusively.

Cordoba, Boyacá, Risaralda, Quindío, Valle, Caldas and Antioquia departments are the largest percentage of municipalities that are not approved overrun with extractions or deed, which employs about 15 thousand families.

“Today, illegal mining is the human activity is causing the greatest impact on the country’s natural resources,” said Colmar Perez, Ombudsman.

There are three major problems caused by this activity: environmental affectations, damage to the health of communities and accidents that left dead and wounded. Everything, says the report, look through the inoperative state.

“The government has proposed three legalization programs, which have efficiency less than 1 percent,” the study says. In 2006 alone, the Comptroller General’s Office stated that the legalization program cost 8270 million dollars and only ran into four operating contracts.

Another difficulty is that the responsibility for controlling mining has been delivered to the mayors, a situation that is beyond their ability to budget and management, says the Ombudsman.

The gold mining, coal and construction materials, the most taken out of the basement, have permeated public six protected areas assigned to National Parks (see chart). But undoubtedly the hardest hit was areas of wilderness.

In this research coincides Guillermo Roads, consultant to the National Planning Council, and recently released by the University, according to which in 2010 had registered mineral titles in 122 hectares of wasteland, of which supply hundreds of regional water supply. Therefore, 22 of the 34 major areas of this type in the country are in danger of extinction. So is the forest reserves, as of 51.5 million hectares of Colombia, there are about 1.3 million mines.5

Done with the presentations made by the Special Project Pasto Grande Regional (PERPG), the National Water Authority (ANA) and the mining company Anglo American Quellaveco on the issue of water availability in Moquegua, full of the Roundtable, approved the formation of a Technical Committee on Water Resources to analyze and evaluate such information.

The Technical Committee shall be composed of 07 organizations designated as coordinator PERPG, with the other members: Front Regional Agricultural Frontier Expansion of Moquegua, College of Engineering – Departmental Council Moquegua, Ilk Provincial Municipality, District Municipality the Algarroba Anglo American and ANA Quellaveco as technical advisor.

This working group will present the first steps for the next session of the Roundtable, scheduled for Wednesday, August 3, from 15:00 in the auditorium of the Regional Government Moquegua, where they also invite the General Mining Environmental Affairs, Ministry of Energy and Mines, Ministry of Environment and Anglo American, to address environmental issues.

Wednesday July 6, the UN Special Reporter on the Rights of Indigenous Peoples, James Anaya, today called on the government of Peru and the indigenous leaders of the department of Puno do you need to engage in dialogue and peaceful resolution of conflicts arising mining and oil in that region.

Anaya addressed the issue of violence that occurred recently in the capital of Puno, Juliana, killing five people and wounded over thirty.

The incident resulting in the application Anaya, occurred on June 24, when a group of protesters tried to take the airport in Juliana, as part of protests calling for the cancellation of the mining and oil concessions in the area, including an indefinite strike started in May and the closing of the border with Bolivia.

Anaya urged the government and communities to enter into arrangements such as the mechanisms for consultation with indigenous peoples. He also called on the authorities to address problems resulting from the harmful effects of mining in the region.

Through his speech that we can quote: “We need all parties to respect the right to life and other human rights and ensure that the legitimate protests of indigenous peoples and the response from the police, do not create situations that endanger the lives and safety of protesters and other citizens, “made ​​clear the position of the UN in this regard.

He also requested clarification of the facts and determine responsibilities of the events, remember that at this moment is going through a transition in the presidency of Peru where it still occupies the office Alan Garcia and Lolita Humana elected president are not exactly the same idea, which complicates things a bit.

 

The federation of miners in Peru has canceled a plan to strike scheduled for Wednesday and Thursday because the Congress withdrew revise a law that provides greater benefits for retirement in the sector, said Tuesday trade-union leaders.

Workers in some key mining in Peru, second largest producer of silver and copper, were to meet late on Tuesday to define their support for the strike, but the final decision of the federation supersedes those plans.

“Officially, unemployment stands federation has withdrawn because the review (the law on mining a retirement fund) in the Congress, we have documentation in hand,” said the secretary general of the Federation of Miners, Luis Castillo.

Unions of some units such as the producer of precious metals Buenaventura, Southern Copper of copper and polymetallic Vulcan, had called a meeting to support the 48-hour strike.

The strike had been called by the National Federation of Miners, usually planned weeks in advance of the national strikes.

In late May, the mining federation also suspended a planned national strike by the closeness of the presidential elections in the country, which took place on June 5.

In the last three plans of stopping work at national level, two were canceled and one-in October 2009 – did not have the support of key units, controlled mainly by foreign firms.

Peru is the second largest producer of silver and copper, gold and sixth of its mineral exports account for 60 percent of total sales in the Andean country.

Mining Codes. Mine workers have demanded the enactment of a law recently passed by Congress that seeks to create a fund with contributions from companies and worker’s wage to supplement a retirement that is far below what they see today.

Among the unions planned to support the strike included the unit Toquepala Southern Copper, which last year produced 166,400 metric tons of fine copper and zinc producer Vulcan and silver and iron ore miner Shrugging Herero Peru.

In May, the mining and hydrocarbon sector showed an increase of 2.69% compared to the same month last year, performance-driven growth in the hydrocarbons subsector 39.12%, while the metal mining sub-sector shrank by -3.10%, the INEI.

Among the products of the metal mining sector decreased its production include: tin (-24.73%), lead (-10.08%), zinc (-6.92%), copper (-6.45%) and silver (-2.66%). However, increased production of iron (15.73%), molybdenum (8.55%) and gold (2.78%). In the hydrocarbons subsector growth were influenced by the increased production of natural gas at 153.75%.

“The financial resources for mining royalties to the department of Potosí and municipalities in 2010 came to managing the significant amount of 378 805 933 Bolivians, and May 2011, Bs 321 579 880, due to mineral prices and high demand for them, but not displays the departmental development should be achieved with such resources, “said Lourdes Tapia, Departmental Coordinator of the League of Environmental Defense, LIDEMA in Potosi, in time to highlight main conclusions of the seminar workshop “Mining Royalties as Axis Potosi no Sustainable Development. ”

“However, although the resources currently perceive governance and municipalities are important, the ratio is minimal in relation to who are reaping huge profits the companies, mainly large as St. Kitts, St. Barthelme and St. Vincent, “he said Tapia, while noting that there “need to increase the percentage of mining royalties in the understanding of the huge profits currently Mine operators are feeling the high prices because of minerals.

“Given that the department there are several minerals traditional, such as uranium, it is necessary to see the way that all pay royalties for minerals, for which there is an urgent include a rule on it within the mining code, “he said, in time noted that “there are minerals, metallic and nonmetallic, non-paying royalties, such as marble and others because they are not covered within the Mining Code. ”

“We need to enhance and strengthen the management of royalties, depending the Ministry of Mining, with the aim of improving control over the actual volume of ore coming out of Potosi, said Coordinator LIDEMA in Potosi.

“While from the Mining Royalties 10% exists for monitoring, exploration and prospecting, taking into account the environmental damage that mining cause and caused, it is necessary that this percentage is assigned directly to mitigation and remediation, so you can improve food production and farming communities livestock, “said Lourdes Tapia time to indicate that” only 2% royalties from the government is used for productive development, rest of those resources are allocated to infrastructure. ”

Finally, Tapia said that the seminar workshop on “Mining Royalties as Axis Potosi no Sustainable Development “concluded that it should require authorities to provide more information about the destination is giving the resources generated by mining royalties and they listen to proposals for civil society to advance the development department and municipal. ”

The seminar workshop: “Axis of Mining Royalties and Sustainable Development Potosi no “developed at the initiative of Mines Commission LIDEMA the Potosi Society of Ecology (Scope), the National Coordinator of People Affected by Mining and Environmental Protection (Conamproma) and the Committee Civic Potosi, and was attended by representatives of Secretariats of Mining and Productive Development of the government (not was presented by the Secretariat of Mother Earth) and the Municipal Potosi, technicians from the Mining Corporation of Bolivia, Combo and representatives of institutions, municipalities and communities in the department, plus some media.