| February 04, 2009 Jinchuan raises cobalt price by 9% Publisher: Metal Pages | |
| BEIJING (Metal-Pages) 03-Feb-09. The major Chinese cobalt producer Jinchuan Group raised its website offer prices for cobalt metals yesterday afternoon by another Rmb 30,000/tonne, after two price increases during the first half of January. The Gansu-based company is quoting Rmb 350,000/tonne ($23.26/lb) for 99.8% cobalt metal, up from Rmb 320,000/tonne which has been in place since 12 January. Its website offer price for the plate shaped cobalt metal has also moved up to Rmb 348,500/tonne ($23.16/lb), also representing an increase of Rmb 30,000/tonne from the previous Rmb 318,500/tonne basis. -END- | |
| January 22, 2009 Idaho Cobalt Project Moves Ahead with New Decision Publisher: The Challis Messenger Author: Todd Adams | |
| Idaho Cobalt Project moves ahead with new decision BY TODD ADAMS The long process toward construction of the Idaho Cobalt Project took another step forward this week with the publication of a revised Record of Decision (ROD) to allow cobalt mining in the Panther Creek drainage. "This is good news," Guy Jeske, Idaho Cobalt Project General Manager, told The Challis Messenger. "This is a significant development and a decision that I hope will stand," Salmon-Challis National Forest Supervisor Bill Wood told The Messenger. Formation Capital Corporation (FCC) officials figure they can start construction on the mine in May, even if there are appeals to the new ROD, Jeske said. The company has not yet seen the new document, but is confident it can fine-tune its plan of operations to address any new concerns the Forest Service might raise, Jeske added. This is the second ROD issued after the first was overturned by Regional Forester Harv Forsgren in October and sent back to the Salmon-Challis National Forest for revision. FCC believes it has enough time to make any changes to its plan of operations and still begin construction sometime in May, after the snow melts, Jeske said. The company's goal is to start producing by 2010. Wood agreed it's possible that Formation Capital could break ground this season provided the regional forester upholds this latest decision and the project is not challenged in court. Wood has selected Alternative IV from the Environmental Impact Statement, which would result in about 132 acres of surface disturbance for an underground mining operation for cobalt, copper and gold in the Panther Creek drainage, adjacent to the former Blackbird Mine. FCC must submit a new plan of operations consistent with provisions in the revised ROD. If the Forest Service approves the plan, the company then must post a $44 million bond (plus or minus 20 percent) to ensure long-term management of wastewater and runoff from the mine. Formation Capital must also secure a National Pollution Elimination Discharge Permit from the Environmental Protection Agency and obtain easements for power and road access through the old Blackbird Mine to the Idaho Cobalt Project area. Jeske said all three items are in the works and the company is confident it can clear all the remaining permitting and regulatory hurdles so construction can begin. Background After the first ROD was released in June of 2008, Forsgren wanted more information on how the mine's plan of operations would comply with laws and affect the environment. Specifically, he wanted to know how the plan of operations would manage sedimentation to streams during the construction phase and how groundwater would be managed and treated, Wood said. The regional forester also wanted the Salmon-Challis forest to document consultations with tribal officials on the Idaho Cobalt Project and to do a watershed analysis of the Panther Creek drainage. Forsgren last year approved the final Environ-mental Impact Statement as meeting all requirements of the National Environmental Policy Act (NEPA). He said it had thoroughly discussed potential impacts to aquatic resources and riparian areas, but that information had not been compiled into a watershed analysis, a separate document required under the forest plan. The new ROD also provides a more succinct description of potential mining impacts on the characteristics of Inventoried Roadless Areas and their management under the October 2008 Idaho Roadless Area Management Rule. "We feel we've complied with everything the regional forester asked us to address," Wood told The Messenger. "We're hopeful and confident this time around that the regional forester will uphold the decision." Wood's first Record of Decision received a very critical look, said Ray Henderson, the Salmon-Challis forest's former minerals project director, who is now working as a consultant on the Idaho Cobalt Project. The second ROD is essentially the same decision, he said, but is better supported than the first document. Wood's latest ROD deals only with the Ram deposit, the larger of the two cobalt deposits that Formation Capital is planning to mine. The Ram deposit has enough known reserves for 10 years of production, based on the mill's capacity of 280,000 tons of ore per year, Jeske said. By contrast, the Sunshine deposit has one year of proven reserves and would be developed only after the underground mine for the Ram deposit, said Jeske. The Forest Service is deferring any decision on the Sunshine until FCC provides the agency with a supplemental plan of operations, according to the legal notice. Formation Capital hopes to employ 157 miners from the Salmon and Challis areas during production with a payroll of $9.5 million per year, company officials have said. Another 37 people would be employed in the Kellogg hydometalurgical plant for refining the ore. Mine and mill construction is estimated to cost $70 million, employ 50 workers and take about a year. The project is expected to generate $8 million per year in taxes to local governments. The Challis Messenger • P.O. Box 405 • Challis, Idaho 83226 Telephone 208.879.4445 • Fax 208.879.5276 • E-mail: info@challismessenger.com | |
| January 02, 2009 Li-ion Batteries Mass Production by Alliance of 14 U.S. Battery Makers and National Lab Publisher: Metal-Pages, London | |
| LONDON (Metal-Pages) 02-Jan-09. A U.S. government laboratory has formed an alliance with 14 U.S. companies with expertise in batteries and advanced materials in order develop manufacturing facilities for the mass production of lithium batteries for vehicles, as reported by Reuters. The alliance, which includes battery industry giants such as 3M Co and Johnson Controls-Saft, intends to secure $ 1 billion to $ 2 billion in U.S. government funding over the next five years to build a manufacturing facility with an "open foundry" for the participants to develop the perfect lithium-ion battery for cars. "It's a huge deal for the nation, and for the lab," said Mark Peters, who is in charge of transportation and battery research at Argonne National Laboratory near Chicago, which will advise the group. China, Japan and South Korea are the current leaders in lithium battery research, he said in a telephone interview. "A small, fragmented (U.S.) battery industry will not long survive in the face of determined Asian competition," Ralph Brodd, a consultant to battery manufacturers, said in a statement released by Argonne. The Argonne National Laboratory is one of the U.S. Department of Energy's largest research centers. It is also the nation's first national laboratory, chartered in 1946 and is recognised for its excellence in connecting basic research to innovative technology. "(Other) countries understand that he who makes the batteries will one day make the cars," he added. The best-selling hybrid vehicles such as Toyota Motor Corp's Prius use a nickel metal hydride battery. However, lithium batteries are widely considered to be the next technological leap forward for electric-powered vehicles, as they can be recharged in a wall socket like a computer battery. The National Alliance for Advanced Transportation Battery Cell Manufacture was modeled after SEMATECH, the successful public-private venture created in the late 1980s to restore U.S. prominence in computer semiconductor technology. In addition to Johnson Controls-Saft Advanced Power Solutions, a joint venture of Johnson Controls Inc and France's Saft Groupe SA, and the 3M Co the founding members of the battery alliance are ActaCell, All Cell Technologies, Altair Nanotechnologies Inc, Eagle Picher Industries Inc, EnerSys, Envia Systems, FMC Corp, MicroSun Technologies, Mobius Power, SiLyte, Superior Graphite, and Townsend Advanced Energy. In addition to an advisory role for Argonne, U.S. truck and automobile manufacturers will be asked to join the alliance's advisory board, said James Greenberger, an attorney who was instrumental in assembling the group. -END- | |
| November 20, 2008 Formation Capital Has Kept The Lawyers At Bay And Now Awaits A New Environmental Decision On Development Of The Idaho Cobalt Project Publisher: Minesite.com Author: Charles Wyatt | |
| Formation Capital Has Kept The Lawyers At Bay And Now Awaits A New Environmental Decision On Development Of The Idaho Cobalt Project By Charles Wyatt Patience and persistence are the two prime qualities to be sought in the chief executive of a junior mining company in which it is worth investing. Such a chief executive takes problems on the chin and finds ways of solving them. Not for him, or her, the whinge and hide tactics adopted by some peers. Such a chief executive fronts up and discusses the pros and cons of events applicable to their companies rather than burying his or her head in the sand and hoping the financial scene will improve while he or she remains in this inelegant position. Names such as Michael Carvill of Kenmare Resources, Colin Loosemore of Archipelago, and Josef El-Raghy of Centamin Egypt come to mind among those whom we have written about recently as meeting these qualities. They are now joined by Mari-Ann Green, chief executive of Formation Capital. She thought she was pretty well home and dry in assembling the mass of permits needed to bring her company's cobalt mine in Idaho into production. Then she woke up one morning in October to find that the positive Record of Decision granted by the Regional Forester in June had been remanded -- overturned is a better word -- and that it will now be necessary for the Salmon Challis National Forest authority in Idaho to issue a new one which -- hopefully - would be upheld by the Regional Forester. Don't ask for an explanation of all these titles, but the bodies concerned are all involved with environmental issues, or so they say. This turn of events was completely unexpected. It came at a time when Formation Capital had been looking for mine financing in the hopes of beginning mine construction during the third quarter of 2008. But there was no alternative but to put the financing on hold until a new Record of Decision was issued. This is unlikely to happen before Christmas. A tough entrepreneur can always find something positive in a difficult situation. Mari-Ann Green says that now is not the best time to be looking for funding anyway and that the delay means that her team of mining engineers, metallurgists and other professionals can now review the project's detailed engineering and the planned procurement of mining equipment to assess where changes can be made to save time and money. Also in times of recession the prices of all commodities are hit so there could be scope for significant savings on construction materials such as steel. And she also points out that the company no longer faces the problem of carrying out construction in the winter months when costs rise and efficiency falls. For her part she has initiated meetings with the Boulder White Clouds Council and Earthworks, the two environmental groups which appealed against the Record of Decision. She resisted going the route of lawyers as both these groups have very deep pockets, funded as they are by celebrities living in Sun Valley who join every available environmental group and think that earning a living pretending to be someone else means they have a brain. Lawyers seldom reach a compromise as they are paid to win, so knowing this, Mari-Ann Green sat down with the environmentalists and hammered out a series of deals. First, a revised methyl mercury plan was agreed, even though there were no specific concerns about methyl mercury at the Idaho cobalt project. Anyway, a study which involves the analysis of fish tissue will take place to see if there is any impact on water quality. Second, a copper loading demonstration plan was designed with input from all parties to protect the watershed from any additional copper loading. Again the Final Environmental Impact Study had indicated that there was absolutely no chance of this happening, but Mari-Ann assuaged the worries of the environmentalists by agreeing that surface and ground water would be monitored to determine if additional copper loading occurs and, if it does, to locate its source. Arsenic was the other worry, so it was agreed that an effluent concentration level of 10 parts per billion (ppb) should be set for any discharge, despite the fact that the current State standard for arsenic is 50 ppb. This was good sensible negotiating, and the result was that the two environmentalist groups agreed not to challenge the new Record of Decision. No use knocking them. They think that the environment is more important than the people who live in it, and it is a view to which many rich townies affiliate themselves. Presumably they overlook the statement made by the Forest Service that the project is "of great importance to the community". As Mari-Ann points out, she has lived in Idaho most of her life, she thinks it is the loveliest place on earth, and she would do nothing to damage it. Cobalt, however, is a strategic metal and the US has no other sources of primary production. Her company is currently in a sound financial position, with C$5.6 million in cash and an additional C$4.4 million in precious metal inventory as at the end of August, metal inventory built up from the Big Creek Hydrometallurgical Complex, which includes the Sunshine Precious Metals Refinery, and is already generating cash flow for Formation. The Idaho cobalt project received a positive 43-101 compliant bankable feasibility study in July 2007 and is expected to produce around 1,500 tonnes annually of super-alloy grade high purity cobalt metal over a minimum ten year mine life. With the price of cobalt still above US$30 per pound, and with an outlook of increased demand, the economics of the project remain very positive. Mari-Ann is certainly not going to be deterred from her purpose by celebrity environmentalists or the current glitch in world finances. -END- | |
| November 12, 2008 Global Cobalt Market to Reach 69 Thousand Metric Tons by 2012 Publisher: Global Industry Analysts, Inc. | |
| Global Cobalt Market to Reach 69 Thousand Metric Tons by 2012, According to New Report by Global Industry Analysts, Inc. World demand for cobalt is rising due to increase in usage of this metal in mobile phone batteries, false limbs, automobile rechargeable batteries, catalyst in industrial processes and fighter jets. The global cobalt market is projected to reach a volume of 69 thousand metric tons by the year 2012, reflecting a compounded annual growth rate of 5% over 2008-2012 period. San Jose, CA (PRWEB) November 11, 2008 -- The global market structure for cobalt has changed drastically over the past few years. New end-use applications and large number of cobalt producers have emerged in the market, along with the continuous rise in the price of the commodity. Cobalt is now being manufactured separately, unlike the previous years, where the product was the result of various by-product operations. Further, demand for the product is rising rapidly which is in turn leading to a steep rise in the prices of the commodity across the globe. Worldwide, cobalt market is witnessing a shift towards nickel-based production from copper-based production. On the consumption front, majority of consumers are increasingly opting inferior quality cobalt, rather than primary cobalt, owing to high variation in prices. On the other hand, not withstanding the price factor, the demand for cobalt in specialized applications is on a rise over low value applications, where the option of other substitute materials is not viable. Europe represents the largest market for cobalt with an estimated 19.4 thousand metric tons for 2008. Asia-Pacific represents the fastest growing market, reflecting a CAGR of 9% for the period 2008-2012. The market is projected to reach 22.5 thousand metric tons by 2012, as stated by Global Industry Analysts, Inc. Batteries depict the fastest growing end-use market for cobalt and is projected to expand at a CAGR of over 7.7% in during the analysis period, 2000-2010. Super Alloys are projected to be the largest end-use market for cobalt and projected to reach 12.6 thousand metric tons by the year 2012. Key players dominating the global cobalt market include Caledonia Mining Corporation, Chambishi Metals Plc, Compagnie de Tifnout Tighanimine, Eramet SA, Eurotungstene Poudres SA, Freeport-McMoRan Copper & Gold Inc., H. C. Starck GmbH & Co., KG, Minara Resources Limited, MMC Norilsk Nickel Group, Nanjing Hanrui Cobalt Co. Ltd., OM Group Inc., Osram Sylvania, QNI Pty Ltd., Sherritt International Corporation, Sumitomo Metal Mining Co., Ltd., Umicore, Vale Inco, Xstrata Plc, and Zambia Consolidated Copper Mines. The report titled "Cobalt: A Global Strategic Business Report" published by Global Industry Analysts, Inc., provides a review of end-use applications, production and pricing scenario, and recent industry activity. The study also analyzes market data and analytics in volume sales for major geographic regions including the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World by the following end-use segments - Adhesives and Dryers, Batteries, Catalysts, Cemented Carbides, Hard-Facing & Other Alloys, Magnets, Super Alloys, Specialty Chemicals, Pigments, and Others. For more details about this research report, please visit http://www.strategyr.com/Cobalt_Market_Report.asp About Global Industry Analysts, Inc. Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide. Global Industry Analysts, Inc. Telephone 408-528-9966 Fax 408-528-9977 Email press @ StrategyR.com Web Site http://www.StrategyR.com/ -END- Note from Formation Capital Corporation: Despite falling commodity prices and world wide financial crisis, outlook for cobalt remains strong as demand is expected to rise. Other independant sources forcast demand to reach upwards of 100,000 mt by 2012. | |
| November 05, 2008 Mining's future looks good in an Obama Administration, but so-so in Congress Publisher: Mineweb Author: Dorothy Kosich | |
| RENO, NV - U.S. mining would have fared well with the election of either Senator Barack Obama or Senator John McCain as president, thanks to considerable groundwork by mining companies and their associations. President-elect Obama hails from a coal state, Illinois, and has long been a proponent of federal funding of clean coal technology. However, the outlook for mining may not be so rosy in the U.S. House and Senate. The Obama campaign targeted so-called swing states, a number of them western mining states, including Nevada and Colorado, which voted in a Democrat for president for the first time in years. However, Utah and Wyoming voted with McCain and the GOP. During a campaign stop September in Reno, Obama said, "We'll invest in technology that will allow us to use more coal, America's most abundant energy source, with the goal of creating five 'first-of-a-kind coal-fired demonstration plans with carbon capture and sequestration." On September 23rd, the Obama-Biden campaign announced a Clean Coal Jobs Task force with the mission of working "to promote the Obama-Biden agenda to invest in advanced coal-based technologies, create more jobs in the coal sector and enhance mine safety." The Obama presidency may also portend good fortune for hardrock miners. The Associated Press reported late last year that Obama opposes the Hardrock Mining and Reclamation Act of 2007 on the ground that it places a significant burden on the mining industry and also would have an adverse impact on jobs. Now stalled in the Senate, the Hardrock Mining and Reclamation Act would impose a gross royalty on mining on federal lands. AP reported that Obama opposes the section of the bill that would impose royalties of 4% of gross revenue on existing hardrock mine, and an 8% gross-revenue royalty on new mines. Right to work states, including Nevada miners, will find Obama to be a strong supporter of unions. In fact, the Obama for President Campaign website says he will aim "to strengthen the ability of workers to organize unions." National Mining Association Senior Vice President Carol Ralston told Mineweb Tuesday that miners recognized mining states were going to be battleground states. Mining companies and their associations "worked very hard with both campaigns" to improve understanding of three key policy areas: energy policy (such as carbon capture and storage R&D); minerals policy (including mining law reform and abandoned mined lands; and mine safety. Most importantly miners and their associations consistently reached out to both political parties, Ralston advised. Another area of concern to miners may be the Obama Administration's appointments to key cabinet positions such as the secretaries of interior and energy. The president-elect is likely to choose several of his top aides, including some Cabinet secretaries, from three key sources: Democratic governors midway through their second and final terms in office; former top officials from the Clinton Administration; and politicians from Obama's home base of Chicago. Possible U.S. attorney general candidate, Gov. Janet Napolitano of Arizona, is expected to play a prominent role regarding western issues. New Mexico Gov. Bill Richardson, believed to be on a short list for U.S. Secretary of State, is a former U.S. energy secretary and hails from another western mining state. Gov. Ed Rendell of Pennsylvania or Montana Gov. Brian Switzer may be considered for the top energy job. No word yet as to who might be named to head the Department of Interior or the Environmental Protection Agency. A potential Ming Safety and Health Administration (MSHA) appointee has also not been revealed at this point. An Obama administration has also been publicly supportive of a massive infrastructure program, which would benefit base metal and industrial minerals companies. Another potential issue looming on U.S. gold mining's horizon is a U.S. offer from the outgoing Bush Administration to host a global summit in December modeled on the 1944 Bretton Woods system. Bretton Woods is credited with tying the trading and currency systems to the gold standard to achieve global stability. Although the U.S. abandoned the gold standard in 1971, the Bretton Woods system is still alive. AND THEN THERE'S CONGRESS... As of Mineweb's deadline early Wednesday morning, Democratic senators held 54 seats compared to the GOP's 50 seats with several races yet to be decided. Mining's stalwart and powerful advocate, Sen. Pete Domenici, R-New Mexico, is stepping down because of illness. New Mexico Congressman Tom Udall, a well-known environmentalist, was declared the winner of Domenici's senate seat. The son of former U.S. Secretary of interior Morris Udall, Democrat Mark Udall will hold the U.S. Senate seat being vacated by Republican Wayne Allard. Idaho's staunch hardrock mining advocate, the scandal -plagued Larry Craig, did not seek re-election. Idaho Lt. Gov. Jim Risch, a Republican, has been elected to Craig's former seat. Democratic West Virginia Senator Jay Rockefeller, a strong mine safety advocate, easily won re-election, as did fellow Democrat Max Baucus of Montana. Republican Senator Mike Enzi of Wyoming was re-elected, while fellow Senator John Barrasso, also of Wyoming, was elected to fill the remaining four years of the term of the deceased Sen. Craig Thomas. Most importantly, Senate Majority Leader Harry Reid, D-Nevada, the son of a hardrock gold miner and domestic hardrock mining's most powerful advocated, has gained even more control of the Senate. However, he fell short of a filibuster-proof 60-seat Senate majority. Nevertheless some Republicans could occasionally join Democrats to break Senate logjams on bills and judicial appointments. Meanwhile House Democrats solidified their control of the Northeast and made good gains in the South, ousting four Republic incumbents and capturing five open GOP seats. Nevada Congressman Dean Heller, a Republican, was maintaining his lead over rancher Jill Derby as of Mineweb's deadline. Longtime small-miner champion Don Young, a Republican, was holding onto a slim lead for his congressional seat representing Alaska. Senator Ted Stevens of Alaska, who was recently convicted of corruption last week, is locked in a tight race with Anchorage Mayor Mark Begich. The 84-year old Stevens is the longest-serving Republican in the U.S. Senate. New senators will also have to be appointed to represent Illinois and Delaware now that Obama and Vice President-Elect Joe Biden are leaving the U.S. Senate. -END- | |
| October 29, 2008 Resources and resource stocks will boom again -- perhaps sooner rather than later Publisher: Lawrence Williams | |
| LONDON, October 29, 2008. Despite all the gloom and doom in the industrial and precious metals sectors at the moment, there is little doubt that resource stocks will surge back into favour again, but the big question is when, and how much overall sentiment has been damaged by recent events, and how long such damage will continue. History tells us that market memories are relatively short and serious effects tend to be measured at worst in a few short years rather than decades! The resource sector has seen this before. The most recent major example has been the gold sector post the Bre-X scam. It did take a few years to recover, but ultimately bounced back stronger than ever. However the latest crash is somewhat different. It is not only resource stocks which crashed, but stocks in general, although admittedly the resources decline has been more severe than most. It is truly remarkable how quickly what had been a booming sector has turned to bust. But there is an argument that the collapse has been hugely overdone and that the upturn, when it comes, could be equally rapid, although perhaps not as steep. This is, perhaps, an optimistic take on the situation. Special situations may exist which could see this more than likely happening in specific sectors of the resource industry. Precious metals - notably gold and silver - do not necessarily follow predictable patterns in the market and can buck overall trends quite dramatically as the normal laws of supply and demand do not necessarily apply. There are always other factors in play here. For natural resources in general, and resource stocks in particular, there is little doubt that there has been a degree of overselling that bears little relevance to the true market situation. The recent price crash means that there will be a serious impact on new production in the immediate future as projects are slowed down, postponed or irredeemably cancelled, with a corresponding effect on future supply. Supply increase projections will in many cases be put back by three to four years or more. What this means is that as soon as the world pulls out of the current financial predicament, and while this may not be a quick process it will indeed happen, commodities are going to be in short supply again - and in some cases seriously short supply. Those which were already heading that way anyway before the meltdown may be those which will benefit most in price terms - perhaps platinum, tin and zinc may be good bets in this respect. Forward production plans for platinum and zinc mining in particular are likely to have been decimated by the huge price falls seen which have made many operations sub-economic and put a rapid halt to many new projects under development or at the planning stages. Nickel too is an interesting metal in this respect. Comments at Aspermont UK's 20:20 nickel meeting in London yesterday suggested that an important proportion of the world's nickel production is sub-economic at current price levels - notably in mining and processing of some nickel laterite ores - which has already brought some major projects to a grinding halt, and is likely to lead to closures elsewhere. Chinese pig nickel production has, in effect, shut down and estimates of nickel production taken off the market already is around 150,000 tonnes (around half from the Chinese pig nickel operations which need considerably higher prices to be profitable). If the price stays at the current level of around $5/lb for any extended period more closures and slowdowns are likely to be seen. BHP Billiton, for example, reckons its big Ravensthorpe nickel project in Australia needs $5-$6/lb nickel to break even at full production - and it's still two years away from achieving that status. Even a company like BHP, which is in it for the long term, is unlikely to run lossmaking operations indefinitely. But what is being seen here applies to other metals and minerals too. Low prices are prevalent virtually across the board, and coupled with banks loath to loan anyone serious sums of money with even the smallest risk of disruption (which puts almost any project in areas of less stable political environments at risk - think DRC in this respect), future industrial metals supplies are in for a very tight squeeze indeed - and this has to have a huge effect on price prospects. To an extent the speed of price recovery depends on countries like China and India maintaining demand growth while the rest of the world stagnates. If China does indeed continue to grow at 9 percent a year as many suggest (others downgrade this to 7-8 percent - but growth nevertheless), then the metals price recovery could be rapid and prolonged. If we have seen the market bottom - and that is by no means certain until some more financial disasters are played out - then commodities and commodity stocks could well be a good place to be for above average gains as markets pick up. But as we have stated before you need to do your homework. Major miners should be good bets for growth from current levels, but it is in junior and mid-sized companies that the biggest returns could be made. But here one needs to make sure one chooses companies which are financially strong enough to survive whatever is left of the downturn or stagnant period. To mitigate risk, one would also suggest choosing those operating in low risk areas of the world - and there don't seem to be too many of these around these days! -END- | |
| October 29, 2008 Boeing sees China buying 3,710 new planes by 2028 Publisher: MarketWatch Author: Christopher Hinton | |
| NEW YORK (MarketWatch) -- Boeing Co. said early Wednesday it anticipates the China market for new aircraft will grow to $390 billion over the next 20 years. Altogether, the Chicago manufacturer expects the Asian country to purchase 3,710 planes before 2028. By then, China's passenger and cargo growth is likely to triple the country's total fleet number to 4,650 airplanes, about as many planes as there are in Europe today. "China will continue to be the fastest-growing aviation center in the world, requiring 41% of the entire Asia-Pacific region airplane demand," said Randy Tinseth, Boeing commercial airplanes vice president of marketing, in a statement. "This makes China the largest market outside of the U.S. for new commercial airplanes." Boeing said it expects single-aisle aircraft will account for 70% of new Chinese purchases. The company's next-generation 737 will make up the largest category with 2,600 scheduled deliveries. Demand for wide-body planes, such as the 777 and the long-anticipated 787 Dreamliner, will count for about 780 plane deliveries. Boeing's backlog is at a record $276 billion, and is expected to keep the manufacturer busy for at least next six years. Despite that, investors have fretted over the impact of the credit crisis on new aircraft financing and sharp declines in global air-traffic numbers, particularly in Asia and the Middle East. Shares of Boeing rose 3.7% at last check to $50.63. It was up 15.5% in prior-day trading after the company announced a tentative labor contract with its machinists union. The company's machinists have been on strike since Sept. -END- | |
| October 29, 2008 Bulls see recovery for cobalt Publisher: Metal-Pages | |
| LONDON (Metal-Pages) 29-Oct-08. Despite the recent slide in cobalt price the bulls claim the market has reached a floor and is now staging a recovery. With nickel, the base metal of which cobalt is associated as a by-product and with which it can be alloyed, staging a 50 percent recovery since Friday, the bulls in the cobalt market believe the metal is about to steal the limelight once again. Metal-Pages reported yesterday that the market is seeing a downward trend, and there is no way it can go up amid the global economic crisis. However, some people in the market disagree, reporting on Wednesday that there are significant enquiries for 2009 delivery in the market. A UK trader pointed out that with the imminent likely resolution of the Boeing strike, it looks like Boeing will ramp up production. He reported that Japanese buyers have come onto the market for Sherritt Gordon briquettes and powder, which he quoted at $ 35/lb and $ 42/lb respectively. He quoted ONG powder at $ 50/lb, Falconbridge material at $ 28-30/lb and Russian material at $ 25-27/lb. The trader said: "People are now taking high purity metal and converting it into powder. The market has now hit the bottom and, like nickel, could now have a very strong rally in a very short space of time." He noted that production at Goro and Tenke Fungurume in the Congo has been delayed significantly, and there is no possibility they will produce any new metal until 2010 at the earliest, and that costs of new mines have doubled. "It looks like the base metals have found a bottom - and this is a good omen for minor metals which usually follow a few months later," he added. -END- | |
| October 09, 2008 Regional Forester Reverses Idaho Cobalt Decision Publisher: The Challis Messenger Author: Todd Adams | |
| Although the regional forester has reversed the Salmon-Challis National Forest's record of decision (ROD) for the Idaho Cobalt Project, company officials are confident the delay will not affect mine construction in 2009. The Forest Service's Ogden Regional Office this week gave the green light to the final Environmental Impact Statement (EIS) but said the ROD failed to adequately address some criteria needed to approve the plan of operations. The ROD is unclear on whether the plan meets all requirements to protect the environment, according to Regional Forester Harv Forsgren. The local forest must provide additional explanation, Forest Supervisor Bill Wood said in an October 6 news release. The Salmon-Challis must now issue another ROD to specifically address items the regional forester wants clarified. Forest officials predict the new document will be issued in November, which then starts another 45-day period during which individuals or groups may again appeal the new ROD. "The Forest recognizes the importance of this project for Formation Capital Corporation and the community," Supervisor Wood said, "and we will do our best to address this as promptly as possible." There will be little, if any, impact in terms of the work schedule for the Idaho Cobalt Project, Bill Scales, President of Formation Capital Corporation (FCC), U. S., said in a news release. Guy Jeske, Idaho Cobalt Project General Manager, told The Challis Messenger that the latest news will only have a minor effect on the company's plans. Formation Capital had planned some limited work this fall and winter, with major construction scheduled to start next spring. Because the Forest Service predicts a fast turnaround it shouldn't delay the bulk of work. The original schedule had the company starting cobalt mining operations during the first quarter of 2010, Jeske said, adding "We'll try to see if we can still reach that goal." Forest Service officials have not yet told Formation Capital what details are missing from the plan of operation, nor asked the company for additional information, Jeske said. It's fortunate the regional forester approved the final EIS, as that document would have taken longer to change, said Jeske. "I would direct people, press and supporters to two things," Scales said. "First, the regional supervisor clearly stated the Environmental Impact Statement complied with the National Environmental Policy Act. Secondly, they noted the importance of the project to the community and pledged to address the clarification issues as promptly as possible." Formation Capital believes a new ROD will better withstand any legal challenges when it is reissued, Scales said. "In the long run this is a helpful move and we take the Forest Service at their word that the delay is short and they can address the questions asked by the Regional Forester to his satisfaction." "We need to make sure we're going through the proper hoops," Salmon-Cobalt District Ranger Kimberly Nelson said. "We feel comfortable we're doing that." She agreed with Formation Capital officials that beefing up the ROD probably would make it less likely to be successfully challenged in court. Three groups and one individual appealed the initial ROD in September. They have standing to appeal again, but so does anyone who submitted comments on the draft EIS, Nelson said. A few hurdles remain before Idaho Cobalt Project construction can begin, said Nelson. The Forest Service must approve Formation Capital's final plan of operations, a reclamation bond [initially set at $44 million] must be in place and the company must obtain a discharge permit from the U.S. Environmental Protection Agency (EPA). That requires a separate EIS and decision from the EPA. -END- | |
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