THIS WEEK: 05/03/2010

The Mining Journal website this week includes the latest Mining Eye from Ernst & Young. The accounting firm notes that its Mining Eye index, which monitors the performance of AIM mining companies, gained 13% in the three months to end-December.

In its report, E&Y identifies four key themes that emerged during the quarter: the revival of equity fundraising, the sale of strategic assets, ongoing sector consolidation and the emergence of China as a key player in the financing of the junior-mining sector.

This week's Mining Journal includes a special investigation on kidnapping, and the website has an additional diagram from Salamanca Risk Management explaining the anatomy of a traditional kidnap.

Ernst & Young Mining Eye

Last WEEK: 26/02/2010

The Mining Journal website this week includes two important reports from the International Council on Mining & Metals – 'Mining: Partnerships for Development', as referred to in this week's Comment, and 'Working Together'. The latter examines how large-scale mining can engage with artisanal and small-scale miners.

The website also includes the metals review from Natixis that is referred to on p4. In its first quarter review, Natixis says that it expects base metals to have a strong year on the back of demand from developing countries such as China and India.

ICMM - Mining: Partnerships for Development

All ICMM member companies commit to implement and measure their performance against a set of 10 sustainable development principles. Where members have sought greater clarity on some of the key challenges facing the industry, ICMM has developed supporting position statements.

ICMM - Working Together

The relationship between large-scale mining (LSM) companies and the artisanal and small-scale mining (ASM) sector is often poorly understood and has been troubled by a general mismatch of expectations, which has led to mistrust and conflict in some cases. In the absence of effective engagement, LSM companies can find themselves facing delays in project development or impacts on production as they respond to ASM concerns or actions.

19/02/2010

The Mining Journal website this week includes the third in a three-part series of metal-price models. Provided by London-based Bloomsbury Minerals Economics (BME), these models provide an introduction to price modelling.Having covered Aluminium and Nickel, we conclude the series with Copper.BME's models incorporate the hybrid physical and investment markets for metals, and help explain the influence of investor flows into, and out of, commodities. The PowerPoint slides and associated Word document provide an insight into price prospects and risk and, crucially, asset valuations.

Copper market case study: BME

In the third part of our Market Study series for Read more... we provide an explanation of Bloomsbury Minerals Economics Ltd's model for copper. Read more

12/02/2010

On the Mining Journal website this week we highlight an attack by the Catholic Agency for Overseas Development (CAFOD) on Anglogold Ashanti over its Mongbwalu project in the Democratic Republic of the Congo. The NGO’s report provides an insight into alternative perceptions of corporate mining, and the industry needs to be aware of the criticisms it faces.CAFOD highlights issues around community consent and displacement, but fails to address the role of government and damage already being caused by artisanal mining.

We also feature the second in our three-part series of metal-price models; this week on Nickel.

CAFOD's new report questions the benefit of AngloGold Ashanti mine project to DRC communities.

As protracted negotiations over mining contract awards draw to a close in the Democratic Republic of Congo, a new joint report by UK development agency CAFOD, South African CSR monitors Bench Marks Foundation, and DRC civil society organisation Cadre de Concertation reveals the potential environmental and social impacts of a new mine on local communities.

The report into proposals by multi-million dollar mining giant AngloGold Ashanti to develop a goldmine in the Ituri district of DRC, questions the benefit of the mine for local people. Ituri sits on one of the richest goldfields in Africa. The report highlights issues of conflict, community consent, displacement and corporate accountability that the mining company must address in order to ensure their project has a net positive impact on the area and its communities. READ THE FULL REPORT NOW

Nickel market case study: BME

In the second part of our Market Study series for Read more... we provide an explanation of Bloomsbury Minerals Economics Ltd's model for nickel. Read more

03/02/2010

Metals-price modelling: Aluminium (Part 1 of 4)

The mathematical modelling of metals prices is a useful tool for the mining and investment communities by helping to explain market performance. As a service to Mining Journal readers, we provide here an explanation of Bloomsbury Minerals Economics Ltd's model for aluminium. Similar explanations will follow for the company's copper and nickel models.

London-based BME models metals prices with reference to three 'fundamental' forces: stocks of the metal, economic growth (or specific metal demand) and performance of the US dollar.

The models have progressed from dealing with commodities as industrial raw materials to dealing with them as a hybrid physical-investment market. BME is this year introducing the influence of investment/disinvestment on the market, and on ways of better understanding investor flows.