The Emerging Hub for Aluminium Production

Hindustan Copper has declared its second quarter results. The company's Q2 net profit was up at Rs 56.2 crore versus Rs 15.1 crore, year-on-year, YoY. Its net sales were up at Rs 324 crore versus Rs 247 crore, YoY.The company's trailing 12-month (TTM) EPS was at Rs 1.98 per share. (Jun, 2010). The stock's price-to-earnings (P/E) ratio was 221.92. The latest book value of the company is Rs 12.13 per share. At current value, the price-to-book value of the company was 36.22. Chinese 10 non-ferrous metal output up by 3 percent in October
The combined output of the ten nonferrous metals was 2.63 million tonnes in October this year up 2.8 percent YoY, according to the latest statistic released by the Ministry of Industry and Information Technology. The output of electrolytic aluminum fell 5.4 percent YoY to 1.21 million tonnes in October and that of electrolytic copper dropped 0.2 percent YoY to 400,000 tonnes.
In October, growth in value added output of the nonferrous metal industry slowed 3.2 percentage points from September to 6 percent, much lower than the 14.1 percent average growth in the first 10 months of this year. In the period from January to October, the combined output of the ten nonferrous metals jumped 21.2 percent YoY to 26.17 million tonnes.
In October, average prices of spot copper and aluminum stood at CNY 62,707 and CNY 16,068 per tonnes up CNY 3,095 and CNY 728 per tonne from the previous month.

A ministerial panel headed by Finance Minister Pranab Mukherjee approved the new mining bill that proposes 26 per cent profit-sharing by miners with the people affected by the project, said Mines Minister B K Handique. "So far the GoM (Group of Ministers) is concerned it was (its) last meeting. All concerns have been addressed and there are no major changes," Mines Minister B K Handique told reporters here after the meeting. To address the concerns of mineral rich states such as Chhattisgarh and Jharkhand, the panel asked the mines ministry "to strengthen the clause on competitive bidding for prospecting and mining leases," ministry sources said.
States have opposed a provision of the bill, which says that first come first serve route will be adopted for granting large area prospecting licences (LAPLs) instead of competitive bidding method. The LAPLs allow companies to prospect for mineral deposits in large tracts of land 5,000 sq km and above for eight years.
Mines Secretary S Vijay Kumar told reporters after the meeting that "section 13 of the proposed bill says that wherever there is mineralization, the area will have to be notified and bid for. That is the ruling provision." He added that "most of the issues raised by the state governments have been discussed and there is a broad consensus on what needs to be done."
When asked about the clause of 26 per cent profit sharing by miners with the people affected by their projects, the Mines Minster said that "yes, it remains. it was the view of the GoM earlier also."
Sources said "after making necessary changes, the final draft will be sent to Finance Minister, who heads the panel, for his approval and there after it will be placed before the Cabinet." This was the fourth meeting of the GoM, constituted to iron out the differences among the ministries over the profit sharing formula in the new legislation - Mines and Mineral Development and Regulation Act (MMDR Act), 2010.
Besides Mukherjee, the 10-member GoM consists of Home Minister P Chidambaram, Steel Minister Virbhadra Singh, Law Minister V Moily, Mines Minister B K Handique, Commerce Minister Anand Sharma, Tribal Affairs Minister K Bhuria, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Environment Minister Jairam Ramesh and Coal Minister Sriprakash Jaiswal.
The new bill has proposed that a fund -- District Mineral Foundation -- be created and the beneficiaries be paid out from it.
Besides, it proposes that in case of a mine being non-functional or in losses, the firms should compensate the people affected by land acquisition, by paying them amount equal to the royalty given to state governments. However, the industry opposed the profit sharing proposal and had said that if enacted it would choke investments and doom the industry.
Major steel players, including Tata Steel and Jindal Steel, have also opposed the profit sharing formula and have demanded that instead, it be shared on the basis of operational cost.

Moscow-based United Company Rusal (UC Rusal), the world's biggest aluminium and alumina producer, has tied up with Mumbai-based Gujarat Foils to make inroads into the 1.5 million tonne per annum (mtpa) aluminium industry in the country. On its part, Gujarat Foils, an aluminium foil manufacturing company which enjoys close to 40 percent market share in India, is also looking at backward integration into aluminium production through this joint venture.
“We are a knowledge-driven company and do not have the wherewithal, especially in terms of cash, to set up a huge plant and manufacture aluminium on our own,” said Vimal Kumar Somani, managing director and chief executive officer (CEO) of Gujarat Foils.
As a result, the company has tied up with the Russian giant to submit an expression of interest (EOI) to the Gujarat government for setting up an aluminium plant.
Gujarat Mineral Development Corporation (GMDC) has invited EOI from various interested companies to set up a 1 mtpa alumina refinery and 0.5 mtpa of aluminium smelter in Kutch.
“The project will accrue a total investment of Rs14,000 crore,” Somani said, adding, Gujarat Foils is currently working on the finer details of the joint venture with Rusal.
“This is a big upside for us as the mine from where the project will meet its bauxite requirement is one where Rusal had been doing its research work for the last 7-8 years and this gives them a lot of understanding of the quality of the mine,” said Somani.
Bauxite for the project will be supplied from one of GMDC's mine. Though a small player in the aluminium space, Gujarat Foils account for a foil capacity of 17,000 tonnes per annum out of the country's total foil capacity of 45,000 tonnes.

Australia may have discovered a potentially rich new vein of minerals and energy with similarities to BHP Billiton's Olympic Dam lode the world's largest known uranium deposit. A geological survey as part of the government's Onshore Energy Security program indicates the potential for significant discoveries of energy and mineral resources particularly in South Australia. Australia is currently experiencing a resources boom fuelled by Asia's voracious appetite for minerals which its central bank says could last 20 years. Martin Ferugson resource minister of Australia said in a statement announcing the potential new resource reserves that data showed geological similarities to the uranium, copper and gold at Olympic Dam and neighboring Prominent Hill copper and gold deposit. The survey also crossed large sedimentary basins which have the potential for a range of petroleum and hydrocarbon resources. Geoscience Australia collected 634 kilometers of seismic and other data from northern South Australia State and the southern part of the Northern Territory, providing images of the geology deep beneath the earth surface. The area surveyed was remote and had previously been inaccessible due to sediments including desert sands that cover most of the rocks which are considered to have potential for either energy or mineral resources.

Firestone Ventures Inc has announced that it has signed a formal Purchase Agreement with Kinross Gold Corp to earn a 100 percent interest in the 1,240-acre (502-hectare) Black Mountain (also known as Windermere Hills) zinc-lead-silver property located 29 km northeast of Wells, Nevada, USA.
"We are pleased to add the Black Mountain property to our zinc property portfolio in Nevada, USA -- one of the most mining-friendly jurisdictions in the world," says Lori Walton, President of Firestone Ventures Inc.
Kinross Gold Corp. examined and staked (60 lode mineral claims) the Black Mountain property for its gold potential during 2008 and 2009. The main area of interest extends for 2.4 km by 4.8 km and covers the crest of Black Mountain. Gold results were low, but high-grade zinc and lead mineralization was noted and sampled. There are historical pits, trenches and two short tunnels on the property, but no record of mineral production.
Firestone collected a total of 17 rock chip samples from the historical workings during a due diligence field visit. Six contiguous 2 m rock chip samples cut along the rib of one of the underground tunnels contained 5.2 percent zinc and 1 percent lead across a width of 12 m. A dump grab sample from the same tunnel contained 17.8 percent zinc and 1.6 percent lead. Samples from shallow pits on the property contained up to 9.8 percent zinc. The highest silver value from rock samples was 7.5 grams/tonne.
Black Mountain is a north-trending anticline bounded by normal faults on the east and west. Zinc-lead-silver mineralization at Black Mountain is hosted in Mississippian to Devonian carbonate rocks exposed along the crest of Black Mountain. Mineralized zones are adjacent to north-trending, range-front normal faults. Mineralization replaces dolomite and consists of smithsonite, hemimorphite, and spotty remnant galena typically oxidized to cerrusite. The axis of the broad anticline trends north along the crest of Black Mountain and provides an extensional structural environment which increases permeability.
Under the terms of the Option Agreement, Firestone must complete US $2 million in work expenditures over five years and complete 1,500 feet of exploration drilling within 18 months of signing. There is no yearly work expenditure requirement. At the end of five years Firestone will issue up to a maximum of 1,000,000 common shares with a maximum aggregate issuance price, based on the market price at the time of issue, of CND $500,000. A 1 percent Net Smelter Returns Royalty on base metals and a 2 percent Net Smelter Returns Royalty on precious metals is reserved for Kinross. Firestone will analyze for gold in the normal course of exploration.

Nord Resources Corporation, a leading producer of copper at its Johnson Camp Mine in Arizona, announced that Wayne M. Morrison is appointed Chief Executive Officer. Morrison will continue to serve as the company’s Vice-President, Finance and Chief Financial Officer. Nord also announced that John Cook, a director of the company, will serve as Technical Advisor for Mining Operations for the company.
Morrison succeeds Randy Davenport in the CEO role. Davenport, who has accepted a senior position at a global mining company, will provide consulting services to Nord through the end of 2010.
"We understand Randy Davenport was presented with an exciting opportunity he decided to accept" said Ronald A. Hirsch, Chairman of Nord's Board. "We thank him for his years of service with Nord and his accomplishments in helping to build a strong mining team for our company."
"Our Board is confident that Wayne Morrison is the right choice to assume the CEO role for Nord. For the past three years, Wayne has worked closely with Randy and his predecessor as Nord brought the Johnson Camp Mine back into production and he continues to lead our financing activities, working with our external consultants, FTI Consulting," said Hirsch. Morrison is a seasoned executive with more than 25 years experience in operations, finance, and accounting.

Aluminum prices have been up most of the month fuelled by a weak US dollar and the recent declaration by the Federal Reserve of its intention to buy $600 billion of Treasuries. Emerging markets have been a huge source of revenue as economies in China, Brazil and Russia markets have become richer leading to higher levels of building. One of the fundamental reasons for the turnaround in the aluminum industry has been the continued production discipline demonstrated by China. From 2002 to 2008, China had been a net exporter of aluminum, but has since become a net importer. The Bedford Report examines the outlook for companies in the Aluminum industry and provides research reports on Aluminum Corporation of China and Kaiser Aluminum Corporation.
The Chinese Government recently announced that restrictions on power that will come into place in an attempt to rein in energy consumption might also affect the market well. Aluminum plants use a massive amount of energy, and once the power cuts come into effect, the plants are expected to be limited in their ability to produce. Recent reports indicate that China will likely curtail another 600,000 tons of aluminum smelter production before the end of 2010.
Based on the Chinese Government's measures to control property market growth, and once again become a net importer of aluminum, Aluminum Corp of China has seen a drop in domestic demand. According to a recent article in Reuters, Aluminum Corporation of China, the largest member of the Aluminum industry based on Market Cap is attempting to diversify its operations by buying into coal, rare earth, copper and iron ore assets.
Recently Kaiser Aluminum reported that third quarter net income dropped 74 percent to $6 million, or 29 cents per share, from $23 million, or $1.14 a share, a year earlier. Net sales rose slightly to $263 million from $252 million.

OAO Norilsk Nickel is selling its 51 percent stake in the only US producer of platinum and palladium, Stillwater Mining Co. The equity is held through Norilsk's 100 percent-owned subsidiary Norimet Ltd.
The Moscow-based company indicated earlier this year that it was considering selling its holding in Stillwater. The stake was acquired in June 2003 for US$100 million in cash and 877,000oz of palladium (for an aggregate value of some US$257 million at that time). The transaction is consistent with Norilsk Nickel's strategy to "rationalise its international business operations" to focus on its core operations. In September, Stillwater announced plans to buy Toronto-based Marathon PGM Corp for US$118 million.

Japan's refined copper exports fell 7.9 percent in October from a year earlier to 36,102 tonnes with 43 percent of that going to China. Ministry of Finance data showed that demand for copper, used in utensils, construction materials and computer chips is often seen as a gauge of economic activity. China's share of copper exports from Japan has held around 40 percent. China is the world's top consumer of copper.
Taiwan was the second largest importer of copper accounting for about 24 percent of exports from Japan in October. Indonesia and Thailand are also key markets for Japan's copper. The fall in Japanese exports of copper came in line with lower refined copper imports by China in October.

Gujarat Foils announced that it would submit an Expression of Interest in partnership with Russian aluminum giant Rusal for GMDCs proposed aluminum project in Kutch. The scrip has touched an intra day high of Rs 84.95 and low of Rs 70.85. The total volume of shares traded at the BSE is 2,625. In the earlier session, the shares declined 13.66 percent or Rs 11.2 at Rs 70.80. Currently, the stock is trading down 9.72 percent from its 52 week high of Rs 94.10 and above 84.67 percent over the 52 week low of Rs 46.

Chile's Collahuasi mine is close to a deal with union workers to end a month-long strike at the world's No. 3 copper deposit, which has trimmed output and bolstered prices. Union leaders are set to continue talks with the company in the northern city of Iquique on Monday, when the strike - the longest-ever stoppage at a major private Chilean copper mine - will enter its 32nd day. Mine spokeswoman Bernardita Fernandez said on Monday both sides were willing to continue talks aimed at ending the strike. The disruption is already longer than the nearly four-week 2006 stoppage at Chile's Escondida, the world's largest copper mine. Traders say the mine has probably suffered minimal losses of a few thousands tonnes, a tiny fraction of annual output. Collahuasi, owned by Xstrata and Anglo American, extracts about 3.3 percent of global mined copper or 535,000 tonnes a year. The strike is seen as one of the toughest faced by any foreign miner in Chile, where labor action is usually short-lived. Soaring copper prices have emboldened workers to demand a bigger slice of profits. Copper prices rose when workers started the strike a month ago, but have since shown little sensitivity to the walkout, partly because the operator has kept supplies flowing and other factors such as the euro zone debt crisis have taken precedence. For weeks, Collahuasi has said operations were normal according to a contingency plan, and has delivered copper to buyers in Asia and Europe. The company has previously said at least 220 full-time workers, or 14 percent of union membership, had broken with the strike and returned to work. The mine has also hired hundreds of temporary workers and about 100 new, permanent employees.

Mithril Resources Ltd announced that Integra Mining Limited and Argonaut Resources Limited have agreed to vend in their exploration interests in the Musgrave Province of South Australia to the new entity Musgrave Minerals Limited.
Mithril, Independence Group NL and Goldsearch Limited have created Musgrave Minerals Limited as a dedicated vehicle to explore the highly prospective and under explored Musgrave Province in South Australia.
Musgrave Minerals Limited is on schedule to conduct an initial public offering of shares and seek admission to the official list of the Australian Securities Exchange and quotation of its shares prior to April 30th 2011. Under separate agreements with Musgrave Minerals Limited, Argonaut and Integra will vend their respective interests in the South Australia Musgrave Province to become cornerstone investors in the new entity. This follows a recent decision by Barrick Australia Limited to also vend its Musgrave exploration interests into Musgrave Minerals Limited.
Musgrave Minerals Limited will have the largest exploration land holding in the Musgrave region totaling more than 50,000 square kilometers and will hold a 100percent interest in the majority of the tenements. Mithril, Independence, Goldsearch and Integra have provided seed capital to the new entity to fund an initial phase of exploration that will focus on delineating new drill targets and advancing conceptual targets to a drill test decision ahead of the April 2011 IPO. The parties are also providing ongoing technical support to the new company.
Graham Ascough MD of Mithril Resources welcomed the involvement of Integra and Argonaut. He said that the participation of six mining companies as cornerstone investors in the newly formed Musgrave Minerals Limited sets a strong platform from which a successful exploration company will emerge. Musgrave Minerals will ensure that the unique prospectivity of the largely unexplored and highly prospective Musgrave region will have the focus and resourcing necessary to lead to new mineral discoveries in the most efficient and effective manner to the benefit of all stakeholders.

Rio Tinto is reported to be increasingly pricing more of its alumina on a short term basis a move that could prove unpopular with buyers of the raw material. Alumina used to make aluminum is traditionally sold at a big discount to the aluminum price which has allowed buyers to pre determine prices and avoid much of the speculative trading present in other commodities. But Rio, BHP Billiton and other alumina producers say the old system no longer reflects alumina production costs and market fundamentals as smelting companies turn more to independent suppliers for alumina.
Tom Albanese CEO of Rio said that briefing the shift signaled an evolution in how alumina was being sold. He warned that large inventories of aluminum amassed during the global financial crisis two years ago continued to weigh on markets for the metal which is used in everything from jet planes to beer cans. He said that beyond the next 5 years, I'm probably reasonably optimistic. But we have to be cautious in the next couple of years.
According to the International Aluminum Institute, inventories of aluminum more than doubled to 2.447 million tonnes in the 12 months to October. Alumina, used to make aluminum is traditionally priced at between 10 percent and 17 percent of the LME traded price which currently stands around US $2,265 per tonne CMAL3.

Gulf countries aiming for 6 million metric tons of annual aluminium production

The Middle East processed around three million tons of primary aluminium or 6.5 per cent of total global production in 2009 to cement its place as one of the world's top aluminium sources. The output from GCC states alone has doubled to 1.8 million tons since 2000. The rapid growth of the aluminium sector prompted Gulf producers to recently form the Gulf Aluminium Council to advance and protect industry interests.
At its current rate of growth, the Gulf's annual aluminium production has the potential to reach six million metric tonnes in the near future. With new smelters and unit expansions currently on the pipeline, the region's production could hit nine million metric tonnes or 13 per cent of global supply by 2020. Two key industry drivers to watch are access to cheap gas feedstock and close proximity to the major aluminium markets of Europe, the United States and the Far East.
The Gulf's aluminium players will take the opportunity to discuss major industry trends and share strategies for boosting their global market share during the 2nd edition of the biennial Aluminium Dubai show to be held from May 9 to 11, 2011 at Sheikh Saeed Halls 2 and 3 of the Dubai International Convention and Exhibition Centre (DICEC). Aluminium Dubai is currently the leading exhibition for aluminium products, technologies and investments in the Middle East.

Bauxite reserves in Vietnam may total 11,000Mt, enough to ensure the long-term supply to the country's alumina industry, according to Prime Minister Nguyen Tan Dung. The reserves are located mainly in the central provinces, Dung told the National Assembly in Hanoi. Dung's figure may make Vietnam's reserves the world's largest. The US Geological Survey ranked Guinea as the top holder with 7,400Mt, while second-placed Australia has 6,200Mt, according to a January 2010 report that put third-placed Vietnam's reserves at 2,100Mt.
“It's generally recognised that there is a lot of bauxite in Vietnam, and it does hold great prospects for building an alumina-refining industry,” Alan Heap, global head of commodities research in Sydney for Citigroup Inc.
Aluminium has gained 13 percent over the past year and traded at US $2,278/t on the London Metal Exchange. Prices may rise to US $3,000/t in 18 months as China becomes a net importer.
Vietnam National Coal-Mineral Industries Group, the state-owned mining company known as Vinacomin, is developing two bauxite mines, one at Nhan Co in the central Dak Nong province with Aluminum Corp of China Ltd, and the other in Tan Rai in neighboring Lam Dong province.
The Tan Rai mine may start producing commercial alumina by April, while Nhan Co will be in operation by the end of 2012.

Novelis Inc announced that it will cease operations at its primary aluminum smelter at Aratu in Brazil by December 31st 2010. It said “The decision is in response to high operating costs and the lack of a competitively priced energy supply. The plant's small scale, outdated technology and logistical factors also impair its operating efficiency. The closure will affect approximately 300 employees.”
The 60,000 tonnes per year facility has been operating at a loss for nearly two years despite management efforts to improve performance. High energy prices and other structural costs will keep the plant unprofitable at expected aluminum prices for the foreseeable future.
Alexandre Almeida president of Novelis South America said “We made significant efforts to improve performance at the smelter, including restructuring the workforce, installing new plant leadership and adjusting production levels. Unfortunately, we could not achieve profitability for the plant."
He added that “This was a very difficult decision for us to make especially in light of its impact on our employees," continued Almeida. "I want to thank them for their support while we tried to find a sustainable solution for the plant. We will offer the employees a severance package, extended health benefits and job search assistance.”
The release added that “The shutdown of the plant will not impact Novelis' other operations in Brazil, including its other aluminum smelter at Ouro Preto. Novelis will retain its focus on the company's core business of aluminum rolling, and customer deliveries will not be affected.”
Novelis Inc is the global leader in aluminum rolled products and beverage can recycling.

Chinese copper smelters increased quotes for annual copper concentrate treating and refining charges next year by seven percent to US $80 per ton and 8 cents per pound, a two thirds jump over 2010 that miners have so far shunned. Smelters in China received US $46.5 and 4.65 cents for so called TC and RC charges to covert imported copper concentrates into refined metal this year and had until December 5 sought US $75 per tonne and 7.5 cents per pound for next year.
Traders said that the new quote comes after a top Japanese smelter executive sounded out the same annual requirement late last month and some Chinese smelters met a global miner last week in Hong Kong for the first round of the 2011 TC and RC talk on which the two sides had not reached any agreement. "We are now seeking USD 80 and 8 cents. We believe the global concentrate market would be more or less in balance next year," they added.

Korea Resources Corporation is seeking to invest in mines in Africa and Asia to secure supplies of rare earths used in electric cars and wind turbines.
Kim Shin Jong CEO of Korea Resources said that we have currently Africa, Central Asia, Mongolia and Vietnam in mind.
Commerzbank AG said that South Korea, which imports almost all its energy and minerals requirements plans to reduce its dependency on Chinese supplies for rare earths after cutting overall imports of the materials by almost two thirds since 2005. Prices for rare earths will probably keep rising as new supplies won't appear any time soon.
Kim said that the world is in a fierce war for resources. Global prices of mineral resources are likely to remain strong as demand increases in the economic recovery. What we can do to help our industries to grow continuously amid the resource war is to keep on running without a break.
The price of lanthanum oxide, a rare earth used in hybrid cars such as Toyota Motor Corporation's Prius has surged more than sevenfold since the second quarter to USD 58 per kilogram after China cut export quotas. Rare earths are a group of 17 chemically similar metal elements including cerium, lanthanum and neodymium.
Kim said that about 65 percent of South Korea's rare earth imports come from China and 28 percent from Japan, according to the Ministry of Knowledge Economy. Finding alternative sources of the minerals will take time. It's not something we can make in a year or two.

The recent cold snap in Britain has led to a sharp jump in battery sales at European car parts retailer Kwik Fit and could boost demand for battery material lead. Patrick Evans spokesman for the company said that last week's battery sales were 70 percent over the same week last year. Clearly the early cold snap and snow has taken its toll on batteries. Lead acid batteries used in cars and other vehicles are much more prone to failing in extreme weather such as hard winters and hot summers. Batteries account for about 80 percent of global consumption of the metal.
RAC said that it fitted 40 percent more batteries in Britain in November than in the same month last year. It expected the increased failures along with fitting of larger higher output batteries to lead to a significant increase in lead demand. While stocks of lead held in London Metal Exchange warehouses MPB STOCKS are close to 10-1/2 year highs, shipments recently have been leaving a diverse range of warehouse locations, suggesting a widespread pick up in industrial demand.
LME inventories rose by a net 275 tonnes but while 1,000 tonnes were delivered in to warehouses, 725 tonnes were also taken out of various sites including in Europe. But, unless the wintry conditions continued unabated, Kwik Fit expected battery sales this year to be broadly similar to 2009 citing last year's harsh winter.
Vanessa Guyll a technical specialist for AA Public Affairs said that AA patrols in Britain, meanwhile, are changing between 700 and 1,000 batteries daily. The AA provides various services to drivers including vehicle breakdown cover.
Guyll said that we always change far more batteries at this time of year. The cold weather slows the chemical reaction in the battery and there are many additional loads on it heaters, heated rear screens, lights etc. Battery failure is our biggest reason for call outs and has been for many years.

Capstone Mining Corporation operations at its Cozamin copper mine in Mexico have resumed nearly 2 weeks after a fatal accident but the company cut its 2010 production forecast again as a result of the incident. The Canadian miner said that production levels are expected to ramp up to Cozamin's nominal capacity of 3,000 tonnes a day over the next week to 10 days. Cozamin, where a miner was killed in an accident on November 24, is a large scale underground copper mine that also produces silver, lead and zinc as by products.
The company said that limited mining in the avoca area at Cozamin will resume in January and is expected to return to full capacity in February. Avoca mining which involves opening of very large cavities, costs less than traditional techniques.
Capstone now expects to produce 78 million to 80 million pounds of copper concentrate in 2010. In July it lowered its forecast to 80 million to 85 million pounds.
Analyst Stefan Ioannou of Haywood Securities, who feels the accident was a short term setback for Capstone, said that a modest decrease in this year's production won't alter the overall outlook for the company. There is not very much left of 2010. The market in general is basing the valuation of Capstone on 2011.
Ioannou, who has a sector perform rating on the stock, expects Capstone's Kutcho Creek project in the northwestern part of Canada's British Columbia to emerge as the next growth driver.
In September, the company said that it had found additional high grade copper-zinc deposits at Kutcho. A preliminary assessment of showed the mine could produce, on average, 35.5 million pounds of copper and 39.8 million pounds of zinc annually.

South African junior miners Simmer & Jack Mines and Village Reef would merge to increase their presence in a competitive industry. The companies said that Village would buy the majority of Simmers' assets by issuing ZAR 1.3 billion worth of shares to Simmers. Simmers would then hold a majority stake Village which it would spin off to its own shareholders. The proposed transaction is in line with Village's stated objective to build greater mass to transform Village into a company with a diversified portfolio of self sustaining mining companies.
Village said that it would issue 597.5 million shares at ZAR 2.20 each to buy the majority of Simmers' assets. These include S & J Investments, a wholly owned subsidiary of Simmers that houses the Buffelsfontein, Hartebeesfontein and Tau Lekoa mines, 33 percent stake in First Uranium and some convertible notes.
The companies said that Simmers' board unanimously supported the deal. The merged entity will have better access to capital markets to fund future growth and the assets will be managed by an experienced management team. The merger would result in the companies holding a combination of platinum and gold assets.

Hindustan Copper will utilize the proceeds from its follow on public offer mainly for ramping up its production to 12 million ton per annum from current 3.15 million ton per annum by 2017.
B K Handique mines minister of India said in the Rajya Sabha that the capital raised by HCL through Further Public Offer will primarily be used to fulfill the investment need of HCL to enhance copper ore production capacity from current level of 3.15 million ton to 12 million ton in the next 5 to 7 years. The step of disinvestment is being taken to meet the mandatory requirement of SEBI for 10 percent public shareholding as HCL is a listed company on stock exchange. Handique, however, did not give any time span for the launch of the FPO which has been deferred to next year.
Disinvestment Secretary Sumit Bose earlier had said that after Shipping Corporation, there would be no public offer in December. Earlier the 20 percent share sale program aimed at garnering about Rs 4,000 crore was scheduled to begin on December 6 and close on December 9.
Handique said that the Cabinet in June had approved the disinvestment of 10 percent paid up equity capital of HCL out of government's shareholding along with issue of fresh equity of equal size by the company. At present, the paid up equity capital of HCL is Rs 462.609 crore. HCL's 0.41 percent stake is already with the public. The proposed FPO will see the government holding coming down to 81.44 percent from the present 99.59 percent.

B K Handique minister of mines and development of North Eastern Region said that National Aluminium Company Limited has informed that the company has not identified any specific mineral assets in Chile, Namibia and Indonesia. However, the Company is exploring acquisition of minerals assets, particularly bauxite, copper, coal and uranium in various countries including Chile, Namibia and Indonesia. No separate venture has been floated by the Company. He said in a written reply in the Lok Sabha that Ministry of Mines signed MoU with Chile and Namibia for cooperation in the field of Geology and Mineral Resources. These MoUs inter alia envisage promotion of investment in the areas of mining and mining related activities.

Aluminum maker Alcoa announced that Julia Steyn and George King have been named vice presidents and co-managing directors of the company's business development group.
They succeed J Michael Schell, who recruited Steyn and King and plans to leave the company at the end of the year.
Steyn joined Alcoa in 2008 as a director in the company's business development unit after six years at Goldman Sachs. King, who is also a director in business development, joined Alcoa last year after working more than a decade in the investment banking industry. Both will report to Charles McLane, Alcoa's executive vice president and chief financial officer.

Billionaire Anil Agarwal-promoted Vedanta Resources has completed the acquisition of Namibia's Skorpion zinc mine from Anglo American plc for about $707 million. Its subsidiary, Sterlite Industries, announced the completion of the said. The deal is part of Vedanta's $1,338 million acquisition of Anglo American's zinc assets announced in May this year. Anglo Zinc comprises of the Skorpion mine in Namibia, Lisheen mine in Ireland and Black Mountain mines in South Africa. Acquisitions of the Lisheen and Black Mountain mines were expected to be completed on schedule. Vedanta intended to acquire Anglo Zinc through Hindustan Zinc - a subsidiary of Sterlite, but the approval from the Indian Government was not received within the contractual completion timeline for Skorpion.

Norwegian aluminum maker Norsk Hydro had decided to phase out its extrusion plant at Karmoey in Norway in 2012. Norsk Hydro said that the plant closure would be part of its work to restructure its aluminum profiles production in Norway. Operations would be strengthened at its extrusion plants in Magnor and Raufoss.

Aditya Birla Group company Hindalco Industries plans to restart operations at its copper mine in Mount Gordon, Australia, by end-this calender year. The Australia mine which is now under maintenance will be restarted on account of higher international prices. The company's Atlanta-based unit Novelis will increase its capacity by 20 per cent by 2014. Novelis is a global producer of aluminium products. The Atlanta-based unit Novelis will also increase its capacity through brownfield expansions of plants in emerging markets. Hindalco's net profit rose 26 per cent at Rs 433 crore for the quarter ended September 30 on the back of an improved realisation and better product and geographic mix. The company had posted a PAT of Rs 344-crore in the year-ago period. The company is setting up a 359,000 tpa aluminium smelter along with a 900 MW captive power plant in Orissa at a total cost of Rs 9,200 crore. The company is planning a refinery project of 1.5 Mio TPA along with a 90 MW co-gen plant, replica of the Utkal Alumina refinery in Orissa. The investment would be around Rs 6,000 crore and this will be commissioned in March 2014. The Rs 10,000 crore Jharkhand Aluminium Project would have a 359,000 tpa aluminium smelter, along with a 900 MW captive power plant in Sonahatu for which land has been acquired. The tubed coal mine has been allotted to the company jointly with Tata Power. It is planned for commissioning in FY 14. There are several brownfield projects such as the expansion of the Hirakud Smelter from 155,000 tpa to 161,000 tpa which is nearing completion.

Europe's No.2 copper producer KGHM is expected to raise its 2010 net profit guidance by 15 percent to an all-time record of 4.5 billion zlotys ($1.5 billion) on spiking copper prices. The state-controlled miner flagged last week it would on Monday upgrade its full-year target for the second time this year. After three quarters KGHM has booked 83 percent of its already once increased 3.9 billion zloty target.

New Pacific Metals Corp announces its unaudited consolidated financial results for the first quarter ended September 30, 2010. All references to dollars or monies are expressed in Canadian Dollars.
The company successfully acquired 79.2 percent of issued and outstanding shares of Tagish Lake Gold Corp, a Canadian publicly traded company involved in the exploration and development of gold-silver mineral deposits in Yukon Territory, Canada. TLG's main assets consist of three identified gold and gold-silver mineral deposits: Skukum Creek, Goddell Gully, and Mount Skukum; and entered into a share transfer agreement with a Chinese third party to sell Yunnan Jin Chang Jiang Mining Co Ltd, which holds Huaiji Project, for a total of $30.5 million. The first deposit of $3.08 million has been received by the Company as of September 30, 2010. Due to increased administration activities to support the acquisition and disposition transactions, loss from continuing operations increased by $97,091 to $470,433, compared to the three months ended September 30, 2009 of $373,342.
Operation results of JCJM were recorded as loss from discontinued operations, which increased by $75,291 to $133,535, mainly due to loss on disposal of equipment. Total loss for the period was $603,968, an increase of 172,382 compared to $431,586 in Q1 2010. Gain on disposal of mineral property interest was $14,443 resulted from disposal of two exploration permits respectively of the Kang Dian Project and the Sichuan Project.

ACopper and zinc futures tumbled by as much as 5 percent in Shanghai (the maximum allowed by the bourse), after metals in London slumped the most in more than six months. This followed speculation that China, the biggest consumer, will take steps to cool inflation, curbing demand. Copper for February delivery on the Shanghai Futures Exchange closed limit-down at Yu61,550 (US$9,259)/t. Zinc for March delivery fell to Yu17,815/t. Three-month copper on the London Metal Exchange declined 1 percent to US$8,070/t at 3:05 pm after sliding 5.7 percent.
The LME index, comprising six industrial metals, slumped the most since May 4 as zinc plunged 8.5 percent, the biggest drop in six months. China's inflation climbed to 4.4 percent in October, the fastest pace in two years, prompting speculation that the government will raise interest rates.
“The precipitous fall indicates investors have become increasingly risk-averse, as the strong rally in the past few months seems vulnerable, given probable tightening measures in China,” Wang Ning, an analyst at Xiangyu Futures Co, said by phone from Shanghai.
Chinese Premier Wen Jiabao said the cabinet is drafting measures to counter excessive price gains. The comments, broadcast last night local time on state television, suggested the government would intensify efforts to cool inflation.

Russia's top zinc producer, Chelyabinsk Zinc Plant, plans to raise output of the metal and alloys to 160,000 tonnes next year, a 4.6 per cent increase from this year's target. Chelyabinsk had to cut output in 2009 by 20 percent to 119,900 tonnes of the anti-corrosive metal because of the economic crisis, which reduced demand and lowered metals prices. But its owners have pledged to restore output to pre-crisis level, and to produce some 153,000 tonnes of zinc in 2010. The board of directors also decided for further growth of production of saleable zinc and zinc based alloys to increase the investment program in 2011 to 1.25 billion roubles ($39.85 million) to increase production capacity. The majority of the funds - 915 million roubles - will be used on CZP's development. Russia's Urals Mining and Metals Co (UMMC) and the Russian Copper Company, the country's second and third largest copper producers, own a controlling stake in Chelyabinsk Zinc.