Mining Industry Update: Global Developments and Trends

South Korea has stepped up its bid to regain a non-permanent seat on the UN Security Council in 2013-2014, hoping it will help reduce tensions with North Korea. Meanwhile, Brazilian mining giant Vale has withdrawn its offer to acquire Metorex Ltd. after a higher bid from Jinchuan Group. Fortescue Metals Group has started doing transactions in China in renminbi, a move towards further trade in the Asian superpower's currency. The mining industry in New Zealand is under scrutiny, with a Royal Commission of Inquiry into the Pike River mine methane explosion and calls for a standardized code of conduct to minimize safety risks.

Key Takeaways:

• S.Korea has asked UN officials to back its bid for a non-permanent seat on the UN Security Council in 2013-2014, citing the need to reduce tensions with North Korea.
• Vale has withdrawn its offer to acquire Metorex Ltd. after Jinchuan Group made a higher bid of 8.90 rand a share, bettering Vale's offer of 7.35 rand a share.
• Fortescue Metals Group has started conducting transactions in China in renminbi (RMB), a move towards further trade in the Asian currency.
• A Royal Commission of Inquiry into the Pike River mine methane explosion is underway in New Zealand, with calls for a standardized code of conduct to minimize safety risks.
• Philippine miner Benguet Nickel Mines Inc. (BNMI) will pay dividends of P32 per share to its stockholders within the third quarter of 2011.
• Vale has put its marketing agreement for the Isaac Plains coal mine in Queensland to partner Aquila Resources, resolving an impasse.
• Coal shares in Australia soared after Macarthur Coal Ltd received a second offer from Peabody Energy Corp.
• Alumina's joint venture partner Alcoa increased its second-quarter earnings, driven by higher sales and prices in the improving manufacturing sector.
• A key witness in the New Zealand inquiry into the Pike River mine collapse accused Don Elder, chief executive of competing coal miner Solid Energy, of trying to drive down the mine's value.
• Indian miner Hindalco's stock fell over 4 percent after the Environment Ministry withheld clearance for the Mahan coal block in Madhya Pradesh.

Statistics:

• S.Korea's bid for a non-permanent seat on the UN Security Council.
• Vale's offer of 7.35 rand a share for Metorex Ltd, later withdrawn.
• Jinchuan Group's bid of 8.90 rand a share for Metorex Ltd.
• Fortescue Metals Group's transactions in China in renminbi (RMB).
• 29 miners killed in the Pike River mine methane explosion.
• P32 per share dividend paid by Philippine miner Benguet Nickel Mines Inc. (BNMI).
• P281 million in revenues generated by Benguetcorp Nickel Mines Inc. (BNMI) in 2010.
• P101 million in net income generated by Benguetcorp Nickel Mines Inc. (BNMI) in 2010.
• US$322 million in net income reported by Alcoa in the three months to June 30, up from US$136 million in the previous corresponding period.
• 4.69 percent decline in Hindalco's shares on the BSE after the Environment Ministry withheld clearance for the Mahan coal block.
• 14 months since Macarthur Coal Ltd received a previous offer from Peabody Energy Corp.

Sources:

• "S.Korea steps up bid to regain U.N. Security Council seat" http://www.asiapulse.com
• "Brazil's Vale to not match Jinchuan's offer for Metorex" http://www.asiapulse.com
• "Aust miner Fortescue doing China dealings in RMB" http://www.asiapulse.com
• "New Zealand needs standardised mine safety code, inquiry hears" http://www.asiapulse.com
• "Philippine miner Benguet nickel to pay dividends" http://www.asiapulse.com
• "Vale puts Isaac Plains proposal to Aust JV partner Aquila" http://www.asiapulse.com
• "Coal shares soar in Australia as Macarthur receives bid" http://www.asiapulse.com
• "Alcoa posts rise in income in June QTR" http://www.asiapulse.com
• "New Zealand mine competitor accused of manipulation" http://www.asiapulse.com
• "Indian miner Hindalco's stock falls over 4 per cent on Mahan decision" http://www.asiapulse.com