CHARTS: Mining rally running out of steam as copper price weighs
Cobalt, nickel still on the boil, but gloomier outlook reflected in copper price and fall in market value of top mining companies during first quarter.
Examples: Worldwide orders for dry-bulk vessels dropped 49% to 9.8 million deadweight tons in the first half of 2012. The monthly index of new-ship prices in China is now at its lowest point since March 2004.
The global miner joined the ‘disappointing results club’ this morning as the London-listed mining group reported that its first-half operating profit dropped almost 40%.
Foreign investors have raised concerns over uncertainty surrounding Australia's mining and carbon tax regimes, with mining companies attacking a government plan to obtain an additional AUD$1.9 billion in taxes via stronger regulation of cross-border profit-shifting.
While the Australian government has started allowing miners to hire foreign workers to ease a labour shortage in the country, some companies such as BHP Billiton and Rio Tinto have chosen to launch their own recruitment initiatives.
Brazilian mining giant, Vale SA, became the latest casualty of China's economic slowdown on Wednesday as its second-quarter profit fell almost 60% driven mainly by a weaker demand for iron ore coming from the Asian country.
Caterpillar Inc (NYSE:CAT), the world's largest earth-moving equipment maker, raised its 2012 profit forecast on Wednesday based on its quarterly profit report, which beat by far most of Wall Street's gloomy outlooks.
Western Austalia's Atlas Iron Limited (ASX:AGO) increased shipments by 25% in the second quarter and is well on its way to doubling production by the end of 2012.
Mining magnate Gina Rinehart would pass a proposed public interest test for ownership of media outlets according to the Australia government's Communications Minister Stephen Conroy.