PGM roller coaster ride: long way down

Safety in the US mining industry has made significant progress over the decades. However, the early 2010 disaster in West Virginia was the worst since 1970 and will potentially have a significant impact on mine safety legislation, similar to the MINER Act of 2006, which was a response to the Sago Mine disaster and other mine fatalities in early 2006. Generally, based on the historically elevated fatality rate, safety experts in the industry believe that the small mines have a relatively poor safety record as compared to the large mines; however, the results of a new study by the Society for Mining, Metallurgy, and Exploration indicate that the opposite is likely true.

Reuters reports Romania has launched the sale of its biggest copper mine Cupru Min SA Abrud via a tender, the government's industry privatisation office said on its website. The deadline for bids is Jan. 17 deadline. Romania wants to sell 100% of the mine which sits on about 60% of the European Union member's copper reserves equal to roughly 900,000 tonnes. Cupru Min is based in Abrud, Alba County, Romania and operates the Roşia Poieni copper mine. The company says deposits amount to more than 1 billion tons ore with an average of 0.36% Cu and 1.8% S. Copper production began in 1983 and the designed capacity of the mine is 9 million tons of ore extracted and processed per year with expansion to 15 million tons per year.

BBC footage shows arrest being made in a campaign to crack down on dealers who buy stolen metal that has been launched by the Transport Police in Yorkshire, England. Copper theft on railways has led to thousands of hours of delays to passengers every year. Yorkshire authorities say the problem is costing them millions a month.

Klondike Silver has been acquiring over 80% of the Sandon, BC silver camp over the past 20 years and its land position is now at 23,000Ha. Historical output from Sandon area mines starting in 1890s is over $35 billion (at today's mineral value) of lead zinc and silver. Klondike owns a 100 TPD fully operational flotation mill in Sandon which processes material from local mines. In its prime Sandon had 29 hotels, 28 saloons, 3 breweries, theatres, opera houses, cigar factory, soft drink plant, 3 sawmills, 3 churches, x2 newspapers, a schoolhouse, hospital, numerous lodges, clubs, organizations and a curling rink and bowling alley (in addition to one of the largest ‘red light’ districts in Western Canada). Klondike Silver is also reviving the Gowganda and Elk Lake silver camps in Ontario.

The Courier-Journal reports the Kentucky surface coal mine where two workers were killed on Friday was cited earlier this year over the stability of a highwall. The two workers were employed by a blasting crew and they were trapped in or near their truck by falling rock and earth. Several other miners at the site were injured by falling rock and debris. Armstrong, which began mining operations at Equality in the fall of 2010, utilizes two draglines and the truck-and-shovel mining methods. The mine has been closed pending an investigation.

Reuters reports Peru's government on Friday brokered the first in a series of talks between townspeople and Newmont Mining in a bid to solve a conflict over water supplies at the $4.8 billion Minas Conga project, adjacent to South America's largest gold mine Yanacocha. Newmont was forced to shut down operations for two days at Yanacocha after protesters blocked access to the mine. Minas Conga, partly-owned by Peru's number one precious metals miner Buenaventura, would be the biggest investment ever in Peru's mining sector. Buenaventura reported a 6% drop in quarterly gold output on Friday.

The recent softening of iron ore prices will likely be short-lived, says the world's largest exporter of the steelmaking ingredient. In releasing its third-quarter results, Brazil-based Vale SA (NYSE:VALE) is forecasting high prices "for a long period ahead" because of growing demand from developing countries and constraints to supply growth. The iron ore giant therefore indicated it needs to stay ahead of the game for when the price rise demands a quick reponse:

Keystone XL should bring Canadian crude, which at the moment sells at a $30 discount, in line with global prices. At the same time a huge slice of the record profits announced this week by Chevron, ConocoPhillips and Exxon Mobil will we wiped out. Here's why.

A massive gold mine proposed for near Kershaw, South Carolina, is enjoying broad community support. A public meeting on Thursday "drew enthusiastic support" for a plan by Romarco Minerals (TSE:R) to revitalize the historic Haile Gold Mine, which closed over 20 years ago, reported local media The State: Most who spoke at a hearing said the Canadian mining company is a good neighbor that will protect the landscape. The U.S. Army Corps of Engineers hearing drew about 200 people to a local recreation center. “We really do need jobs,’’ lifelong Kershaw resident Mildred Payne said. “We really trust Romarco and everything they’ve done here in Kershaw. We feel they are really working … to make sure they are doing everything right for the people.’’