The Prius hybrid automobile is popular for its fuel efficiency,but its electric motor and battery guzzle rare earth metals, a little-known class of elements found in a wide range of gadgets and consumer goods.
That makes Toyota's market-leading gasoline-electric hybrid car and other similar vehicles vulnerable to a supply crunch predicted by experts as China,the world's dominant rare earths producer, limits exports while global demand swells.
Worldwide demand for rare earths,covering 15 entries on the periodic table of elements, is expected to exceed supply by some 40,000 tonnes annually in several years unless major new production sources are developed.
One promising US source is a rare earths mine slated to reopen in California by 2012.
Among the rare earths that would be most affected in a shortage is neodymium, the key component of an alloy used to make the high-power, lightweight magnets for electric motors of hybrid cars, such as the Prius, Honda Insight and Ford Focus, as well as in generators for wind turbines.
Close cousins terbium and dysprosium are added in smaller amounts to the alloy to preserve neodymium's magnetic properties at high temperatures.
Yet another rare earth metal, lanthanum, is a major ingredient for hybrid car batteries.
Production of both hybrids cars and wind turbines is expected to climb sharply amid the clamour for cleaner transportation and energy alternatives that reduce dependence on fossil fuels blamed for global climate change.
Toyota has 70% of the US market for vehicles powered by a combination of an internal-combustion engine and electric motor. The Prius is its No.1 hybrid seller.
Jack Lifton, an independent commodities consultant and strategic metals expert, calls the Prius "the biggest user of rare earths of any object in the world."
Each electric Prius motor requires one kilogram (2.2 lb) of neodymium,and each battery uses 10 to 15 kg (22-33 lb) of lanthanum.
"That number will nearly double under Toyota's plans to boost the car's fuel economy," Lifton said.
Toyota plans to sell 100,000 Prius cars in the United States alone for 2009, and 180,000 next year. The company forecasts sales of 1 million units per year starting in 2010.
As China's industries begin to consume most of its own rare earth production, Toyota and other companies are seeking to secure reliable reserves for themselves.
Reuters reported last year that Japanese firms are showing strong interest in a Canadian rare earth site under development at Thor Lake in the Northwest Territories.
A Toyota spokeswoman in Los Angeles said the automaker would not comment on its resource development plans. But media accounts and industry blogs have reported recently that Toyota has looked at rare earth possibilities in Canada and Vietnam.
Monday, August 31, 2009
Thursday, August 27, 2009
HIGHER OUTPUT SOUGHT BY KINGSGATE
Kingsgate Consolidated, Australian owner of Thailand's biggest gold mine, is seeking to double output at the operation from 2011 and forecast the price of bullion to rise as high as US$1,500 (Bt51,200) per ounce within two years.
The company expects government approvals next month to expand capacity of the plant at its Chatree Mine to 5 million tonnes of ore a year, Gavin Thomas CEO of the Sydney-based company, siad yesterday.
"We've obviously got a cashflow machine here. If we can keep the head-grade high, we make a lot of money," Thomas said.
"I see gold moving well over its price. I see it moving sideways in the short term and moving upwards $1.1200 to $1,500 in the next 12-24 months."
The company posted a net profit after tax fell 10 per cent to 32.5 million Australian dollars(Bt921 million) for the fiscal year ending June 30 on production of 76,028 ounces.
Output is forecast to increase to 120,000-140,000 ounces this year, Kingsgate said in a statement.
The company expects government approvals next month to expand capacity of the plant at its Chatree Mine to 5 million tonnes of ore a year, Gavin Thomas CEO of the Sydney-based company, siad yesterday.
"We've obviously got a cashflow machine here. If we can keep the head-grade high, we make a lot of money," Thomas said.
"I see gold moving well over its price. I see it moving sideways in the short term and moving upwards $1.1200 to $1,500 in the next 12-24 months."
The company posted a net profit after tax fell 10 per cent to 32.5 million Australian dollars(Bt921 million) for the fiscal year ending June 30 on production of 76,028 ounces.
Output is forecast to increase to 120,000-140,000 ounces this year, Kingsgate said in a statement.
Wednesday, August 26, 2009
Miners hail Mongolian move
The mining companies Rio Tinto and Ivanhoe yesterday welcomed a decision by Mongolia to scrap a windfall profit tax, removing a key hurdle to a project that could give the impoverished state a huge boost.
The vote by Mongolian lawmakers on Tuesday to annul the 68% tax from early 2011 is expected to pave the way for the much-delayed exploitation of the vast Oyu Tolgoi copper and gold mine.
"This is an incredibly important milestone in bringing onstream one of the finest undeveloped copper-gold projects in the world," the chief executive of Anglo-Australian mining giant Rio Tinto,Tom Albanese, said in a statement.
"It will bring significant socioeconomic benefits for the people of Mongolia."
The project, which is expected to employ 5,000 people at the mine and thousands more in the supply chain around it, would also benefit the nation in terms of technical capabilities, experts said.
The GDP per capita of Mongolia -one of the poorest countries in Asia is 164th in the world, just ahead of the Gaza Strip, and is likely to get a significant boost if the Oyu Tolgoi project moves forward.
"The tax was a big burden on the mining industry, especially on copper and gold, so it was the main obstacle for negotiations over the Oyu Tolgoi copper project," said lawmaker S. Oyun, a former foreign minister.
"Since the obstacle is no longer there,we hope some of the big projects will go forward, and hopefully the economy will get a boost," she told AFP.
Parliamentary speaker D. Demberel said the mine,80 kilometres (50 miles)north of the border with China, could last "for about 100 years" and help the economy "grow tremendously", according to the Mongol Messenger newspaper.The mine, one of the richest copper deposits in the world, is expected to yield 450,000 tonnes of copper and 330,000 ounces of gold annually.
John Macken, president of Canadabased Ivanhoe Mines, a partner of Rio Tinto, called the decision a "significant step."
"This expression of confidence in Mongolia's future clears the way for finalisation of an agreement with the government for the construction and operation of Ivanhoe's Oyu Tolgoi copper-gold complex," he said.
Rio Tinto, which owns 9.95% of Ivanhoe but has an option to increase its share to nearly half, said the two companies expected to sign an agreement with the Mongolian government in the near future.
Following the lawmakers' vote to scrap the tax, Mongolian Finance Minister S.Bayartsogt said the government had plans for alternative ways to generate revenue,the Mongol Messenger reported.The paper quoted the minister as saying that a bill to increase royalty payments would be submitted to parliament during its autumn session."Mongolia will depend on its mining sector for nearly 40 years, and in order to attract investments and expand industrialisation, tax burdens must be reviewed."
The vote by Mongolian lawmakers on Tuesday to annul the 68% tax from early 2011 is expected to pave the way for the much-delayed exploitation of the vast Oyu Tolgoi copper and gold mine.
"This is an incredibly important milestone in bringing onstream one of the finest undeveloped copper-gold projects in the world," the chief executive of Anglo-Australian mining giant Rio Tinto,Tom Albanese, said in a statement.
"It will bring significant socioeconomic benefits for the people of Mongolia."
The project, which is expected to employ 5,000 people at the mine and thousands more in the supply chain around it, would also benefit the nation in terms of technical capabilities, experts said.
The GDP per capita of Mongolia -one of the poorest countries in Asia is 164th in the world, just ahead of the Gaza Strip, and is likely to get a significant boost if the Oyu Tolgoi project moves forward.
"The tax was a big burden on the mining industry, especially on copper and gold, so it was the main obstacle for negotiations over the Oyu Tolgoi copper project," said lawmaker S. Oyun, a former foreign minister.
"Since the obstacle is no longer there,we hope some of the big projects will go forward, and hopefully the economy will get a boost," she told AFP.
Parliamentary speaker D. Demberel said the mine,80 kilometres (50 miles)north of the border with China, could last "for about 100 years" and help the economy "grow tremendously", according to the Mongol Messenger newspaper.The mine, one of the richest copper deposits in the world, is expected to yield 450,000 tonnes of copper and 330,000 ounces of gold annually.
John Macken, president of Canadabased Ivanhoe Mines, a partner of Rio Tinto, called the decision a "significant step."
"This expression of confidence in Mongolia's future clears the way for finalisation of an agreement with the government for the construction and operation of Ivanhoe's Oyu Tolgoi copper-gold complex," he said.
Rio Tinto, which owns 9.95% of Ivanhoe but has an option to increase its share to nearly half, said the two companies expected to sign an agreement with the Mongolian government in the near future.
Following the lawmakers' vote to scrap the tax, Mongolian Finance Minister S.Bayartsogt said the government had plans for alternative ways to generate revenue,the Mongol Messenger reported.The paper quoted the minister as saying that a bill to increase royalty payments would be submitted to parliament during its autumn session."Mongolia will depend on its mining sector for nearly 40 years, and in order to attract investments and expand industrialisation, tax burdens must be reviewed."
Monday, August 24, 2009
CHARNCHAI DEFERS DECREE ON POLLUTION
The Industry Ministry yesterday postponed to the beginning of next month its decree for controlling industrial plants with serious environmental impacts.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
"I have not approved the ministerial decree because it still lacks necessary details such as the size of the plant," Industry Minister Charnchai Chairung-ruang said.
"I have assigned agencies to find out more information on environmental rules in Canada and other countries like Japan, South Korea and Hong Kong," he said.
Approval of the ministerial decree had been expected yesterday in order to clarify the eight industries that will be required to complete the new form of environmental impact assessment (EIA) and the new health impact assessment (HIA), as stated in Article 67 of the Constitution.
The eight types of projects listed in the ministerial decree are: underground mines; lead, zinc and manganese mines; upstream and mid-stream petrochemical plants; steel blast furnaces; industrial estates accommodating upstream-midstream petrochemical plants and steel blast furnaces; power plants; nuclear power plants; and hazardous waste-treatment facilities.
However, industries that have an impact on the environment but are not listed in the ministerial decree will not be forced to pass the HIA, but only the EIA.
A diamond is not forever, towns learn
The glittering diamonds are almost gone and as the lustre fades on South Africa's Diamond Coast, desperate ghost towns are left clinging to the last signs of life.
The heyday of diamond mining may be over, but the restoration of a oncepristine landscape along the country's west coast should turn this wasteland of scarred earth into a tourist paradise.
Isolated under strict security for 80 years of mining, towering mine dumps reach hundreds of metres into the air along the coast, the site of one of the most ambitious mining restoration projects to date.
It's hard to believe it by looking at the area now. The sole customer in a supermarket on a recent day in one of the mining towns, Kleinzee, said the industry has left it looking as if a "nuclear bomb was dropped on it."
Since 2007 the world's leading diamond company De Beers has drastically cut operations at its Namaqualand mines as the precious gem runs out, reducing staff from about 3,000 to 250.
Globally, known diamond reserves are expected to run out in 30 years.
Kleinzee, located about 600 kilometres (370 miles) north of Cape Town in the country's biggest and most sparsely populated province of Northern Cape,is entirely owned by the diamond giant.
Schools, recreation centres and houses stand mostly empty.
Its mine has already shut down and residents wait desperately for officials to proclaim an end to its life as a privately owned mining town so individuals can buy homes themselves and try to breathe life back into business.
"All my friends lost their jobs. This is a mining town, what must they do here?"said local supermarket owner Ann Engelbrecht, whose sales have dropped 60% with only a trickle of tourists and locals sustaining her.
She took over the Spar in 2007 after working for De Beers since 1984, and says she has already had two heart attacks from the stress, making opening hours ever later and shutting down completely over weekends.
"It is just not worth it anymore. Business is so bad but I really believe if the town is proclaimed it will get better."
De Beers, grappling with how to leave the town, is partnering with conservationists to reinvigorate the area through tourism, fish farming and other industries.
The project highlights increasing concerns about the environmental footprint left by mining and the responsibility of companies to mitigate it.
Gert Klopper, De Beers Namaqualand spokesman, says the company hopes the project will improve the image of the diamond industry, long blighted by conflict and violence.
"I think it's the first time anywhere in the world that it (restoration) has taken place on such a large scale," he said of the 463 million rand ($56 million) project.
De Beers owns some 10% of South Africa's 2,500-kilometre coastline, much of which has been extensively mined.
Conservation experts are now busy filling gaping holes and transplanting sensitive plant species to restore the vast plains to their former glory.
"The succulent Karoo is one of only two arid hotspots in the world with more than 4,500 plant species. The whole of Europe doesn't have the same number of plant species," says environmental officer Werner Nel.
Klopper notes that while some 10,000 hectares (25,000 acres) have been mined,a total of 90,000 hectares were restricted from the public for decades, meaning "huge tracts of land have been pristinely preserved."
Thick and varied vegetation which comes alive with wildflowers in spring stretches for miles to sandy white dunes and idyllic beaches ideal for surfing.
With the rest of South Africa's coast overdeveloped, it is hoped a new tourist attraction will be created along with hundreds of jobs in the most isolated corner of the country.
Sea water pumps designed for mining are now helping fill the pits, which are being turned into oyster and abalone farms.
Already exposed bedrock is being eyed for nearly 100 wind turbines along the wind-blown coastline - to create much needed renewable energy in the powerstrapped country.
Other plans are underway to create land art, a marina, seawater greenhouses and hiking trails, and even to turn one massive pit into a concert venue.
"It will take 10,20,30 years to get to the point that you can't see mining happened here," says Andre Meyer of the Nurture, Restore, Innovate project which is restoring the land for De Beers.
The heyday of diamond mining may be over, but the restoration of a oncepristine landscape along the country's west coast should turn this wasteland of scarred earth into a tourist paradise.
Isolated under strict security for 80 years of mining, towering mine dumps reach hundreds of metres into the air along the coast, the site of one of the most ambitious mining restoration projects to date.
It's hard to believe it by looking at the area now. The sole customer in a supermarket on a recent day in one of the mining towns, Kleinzee, said the industry has left it looking as if a "nuclear bomb was dropped on it."
Since 2007 the world's leading diamond company De Beers has drastically cut operations at its Namaqualand mines as the precious gem runs out, reducing staff from about 3,000 to 250.
Globally, known diamond reserves are expected to run out in 30 years.
Kleinzee, located about 600 kilometres (370 miles) north of Cape Town in the country's biggest and most sparsely populated province of Northern Cape,is entirely owned by the diamond giant.
Schools, recreation centres and houses stand mostly empty.
Its mine has already shut down and residents wait desperately for officials to proclaim an end to its life as a privately owned mining town so individuals can buy homes themselves and try to breathe life back into business.
"All my friends lost their jobs. This is a mining town, what must they do here?"said local supermarket owner Ann Engelbrecht, whose sales have dropped 60% with only a trickle of tourists and locals sustaining her.
She took over the Spar in 2007 after working for De Beers since 1984, and says she has already had two heart attacks from the stress, making opening hours ever later and shutting down completely over weekends.
"It is just not worth it anymore. Business is so bad but I really believe if the town is proclaimed it will get better."
De Beers, grappling with how to leave the town, is partnering with conservationists to reinvigorate the area through tourism, fish farming and other industries.
The project highlights increasing concerns about the environmental footprint left by mining and the responsibility of companies to mitigate it.
Gert Klopper, De Beers Namaqualand spokesman, says the company hopes the project will improve the image of the diamond industry, long blighted by conflict and violence.
"I think it's the first time anywhere in the world that it (restoration) has taken place on such a large scale," he said of the 463 million rand ($56 million) project.
De Beers owns some 10% of South Africa's 2,500-kilometre coastline, much of which has been extensively mined.
Conservation experts are now busy filling gaping holes and transplanting sensitive plant species to restore the vast plains to their former glory.
"The succulent Karoo is one of only two arid hotspots in the world with more than 4,500 plant species. The whole of Europe doesn't have the same number of plant species," says environmental officer Werner Nel.
Klopper notes that while some 10,000 hectares (25,000 acres) have been mined,a total of 90,000 hectares were restricted from the public for decades, meaning "huge tracts of land have been pristinely preserved."
Thick and varied vegetation which comes alive with wildflowers in spring stretches for miles to sandy white dunes and idyllic beaches ideal for surfing.
With the rest of South Africa's coast overdeveloped, it is hoped a new tourist attraction will be created along with hundreds of jobs in the most isolated corner of the country.
Sea water pumps designed for mining are now helping fill the pits, which are being turned into oyster and abalone farms.
Already exposed bedrock is being eyed for nearly 100 wind turbines along the wind-blown coastline - to create much needed renewable energy in the powerstrapped country.
Other plans are underway to create land art, a marina, seawater greenhouses and hiking trails, and even to turn one massive pit into a concert venue.
"It will take 10,20,30 years to get to the point that you can't see mining happened here," says Andre Meyer of the Nurture, Restore, Innovate project which is restoring the land for De Beers.
Friday, August 21, 2009
Putin pledges $1bn for diamon miner
Russian Prime Minister Vladimir Putin pledged yesterday $1 billion in state support for the diamond miner Alrosa this year to help it ride out a steep global decline in demand for gemstones.
"The overall level of support for the sector should total 30-35 billion roubles ($949.4 million-$1.11 billion) this year,"Putin told a meeting of senior officials after visiting Alrosa's giant Mir diamond mine in eastern Siberia.
"This is difficult to do with the background of the financial-economic crisis,but we shall do it," Putin said.
The state support, which will include more state purchases of gems, is likely to help state-controlled diamond miner Alrosa service about $3.6 billion in outstanding debt.
Two sources who declined to be identified said the $1 billion would be used by the State Precious Metals and Gems Repository (Gokhran) to buy diamonds from Alrosa.
Alrosa, the main rival to De Beers,produces one quarter of the world's rough diamonds and is one of the main sources of income for Russia's Yakutia region,home to 950,000 people.
"We understand that this sector, which gives serious revenues to the federal budget and regional budget, is in a difficult situation and needs support due to the global market situation," Putin said."To support the sector, the state has agreed to significantly increase state purchases of diamonds."
He said the state purchases by Gokhran had risen to 14.5 billion roubles from 3.7 billion roubles, but gave no details about purchases planned for 2010.
Diamond producers across the globe have been badly hit by weak demand.The world's largest diamond producer,De Beers, which is 45%-owned by mining group Anglo American Plc, has said demand should pick up in the second half.
Alrosa president Fyodor Andreyev said yesterday that he expected diamond demand would recover by 2011 as long as there were no second wave to the financial crisis.
Putin also ordered officials to work out a way to give a state guarantee to Alrosa to help it restructure its debts to domestic and foreign creditors.
Diamond sales make up 30% of the local government's revenue in Yakutia,which covers an area about one-third the size of the United States.
Alrosa, which traces its history to the diamond mines set up the Soviet Union in Yakutia in the 1950s, employs 15,000 people and produces 97% of Russia's rough diamonds.
"In recent years,$17.5 billion of diamonds have been found here (in Mirny)and about $80 billion in the republic as a whole, but when you work out how much has actually been invested here in the republic, in its infrastructure, the figures are really not very significant,"Putin said."The problems come from this and have been mounting for decades
"The overall level of support for the sector should total 30-35 billion roubles ($949.4 million-$1.11 billion) this year,"Putin told a meeting of senior officials after visiting Alrosa's giant Mir diamond mine in eastern Siberia.
"This is difficult to do with the background of the financial-economic crisis,but we shall do it," Putin said.
The state support, which will include more state purchases of gems, is likely to help state-controlled diamond miner Alrosa service about $3.6 billion in outstanding debt.
Two sources who declined to be identified said the $1 billion would be used by the State Precious Metals and Gems Repository (Gokhran) to buy diamonds from Alrosa.
Alrosa, the main rival to De Beers,produces one quarter of the world's rough diamonds and is one of the main sources of income for Russia's Yakutia region,home to 950,000 people.
"We understand that this sector, which gives serious revenues to the federal budget and regional budget, is in a difficult situation and needs support due to the global market situation," Putin said."To support the sector, the state has agreed to significantly increase state purchases of diamonds."
He said the state purchases by Gokhran had risen to 14.5 billion roubles from 3.7 billion roubles, but gave no details about purchases planned for 2010.
Diamond producers across the globe have been badly hit by weak demand.The world's largest diamond producer,De Beers, which is 45%-owned by mining group Anglo American Plc, has said demand should pick up in the second half.
Alrosa president Fyodor Andreyev said yesterday that he expected diamond demand would recover by 2011 as long as there were no second wave to the financial crisis.
Putin also ordered officials to work out a way to give a state guarantee to Alrosa to help it restructure its debts to domestic and foreign creditors.
Diamond sales make up 30% of the local government's revenue in Yakutia,which covers an area about one-third the size of the United States.
Alrosa, which traces its history to the diamond mines set up the Soviet Union in Yakutia in the 1950s, employs 15,000 people and produces 97% of Russia's rough diamonds.
"In recent years,$17.5 billion of diamonds have been found here (in Mirny)and about $80 billion in the republic as a whole, but when you work out how much has actually been invested here in the republic, in its infrastructure, the figures are really not very significant,"Putin said."The problems come from this and have been mounting for decades
Thursday, August 20, 2009
Canberra seeks to shore up China ties
Australia tried to halt a slide in ties with China yesterday by denying support for autonomy for the restive Chinese region of Xinjiang as Beijing media accused the country of leading an "anti-China chorus".
Relations have soured over the granting of an Australian visa to Rebiya Kadeer,the exiled leader of China's Muslim Uighur minority in far western Xinjiang,and the arrest of an Australian Rio Tinto mining executive and three other Rio staff on allegations of espionage.
China is Australia's biggest export market, with two-way trade worth A$53 billion (1.5 trillion baht) last year.
Major Australian exports in 2008 included iron ore, wool, copper ore and manganese.
Foreign Minister Stephen Smith told parliament that allowing Ms Kadeer to visit Australia did not mean support for her views on Uighur autonomy.
"We have a long-standing position to respect the territorial integrity and sovereignty of the western provinces so far as China is concerned," Mr Smith said.
Rio, which has said the four detained staff have done nothing wrong, also moved to soothe tensions, saying the company was committed to building a stronger relationship with China.
"We will respect the Chinese legal process," chairman Jan du Plessis said.
Rio chief executive Tom Albanese said the four Rio staff remained in good health.
"Our first priority is our duty of care to them and their families and we do not want to say anything or do anything that can negatively affect them," he said.
China, which considers political stability a top priority, blames Ms Kadeer for instigating ethnic riots in Xinjiang earlier this year when Uighurs attacked Han Chinese, a charge she has denied.
It criticised Australia's decision to give Ms Kadeer a visa and cancelled a highlevel diplomatic visit in protest.
Yesterday, the China Daily , the Communist Party's official English-language paper, said Australia's "Sino-phobic politicians" were leading the world's "anti-China chorus" and siding with Ms Kadeer.
"By providing Kadeer a platform for anti-Chinese separatist activities, Canberra chose to side with a terrorist and severely hurt China's national interests."
Australia's ambassador to China returned home for consultations yesterday, but Canberra denied it signalled a protest.
"He hasn't been rushed back to Canberra. He comes back on a regular basis,"Mr Smith told national radio.
Mr Smith said Canberra was working through its differences with Beijing methodically, including the arrest of Australian Rio Tinto executive Stern Hu.
Relations have soured over the granting of an Australian visa to Rebiya Kadeer,the exiled leader of China's Muslim Uighur minority in far western Xinjiang,and the arrest of an Australian Rio Tinto mining executive and three other Rio staff on allegations of espionage.
China is Australia's biggest export market, with two-way trade worth A$53 billion (1.5 trillion baht) last year.
Major Australian exports in 2008 included iron ore, wool, copper ore and manganese.
Foreign Minister Stephen Smith told parliament that allowing Ms Kadeer to visit Australia did not mean support for her views on Uighur autonomy.
"We have a long-standing position to respect the territorial integrity and sovereignty of the western provinces so far as China is concerned," Mr Smith said.
Rio, which has said the four detained staff have done nothing wrong, also moved to soothe tensions, saying the company was committed to building a stronger relationship with China.
"We will respect the Chinese legal process," chairman Jan du Plessis said.
Rio chief executive Tom Albanese said the four Rio staff remained in good health.
"Our first priority is our duty of care to them and their families and we do not want to say anything or do anything that can negatively affect them," he said.
China, which considers political stability a top priority, blames Ms Kadeer for instigating ethnic riots in Xinjiang earlier this year when Uighurs attacked Han Chinese, a charge she has denied.
It criticised Australia's decision to give Ms Kadeer a visa and cancelled a highlevel diplomatic visit in protest.
Yesterday, the China Daily , the Communist Party's official English-language paper, said Australia's "Sino-phobic politicians" were leading the world's "anti-China chorus" and siding with Ms Kadeer.
"By providing Kadeer a platform for anti-Chinese separatist activities, Canberra chose to side with a terrorist and severely hurt China's national interests."
Australia's ambassador to China returned home for consultations yesterday, but Canberra denied it signalled a protest.
"He hasn't been rushed back to Canberra. He comes back on a regular basis,"Mr Smith told national radio.
Mr Smith said Canberra was working through its differences with Beijing methodically, including the arrest of Australian Rio Tinto executive Stern Hu.
RIO TINTO NET PROFIT NOSEDIVES
Rio Tinto Group, the world's third-largest mining company, said first-half profit tumbled 65 per cent after copper, iron ore and aluminium prices declined.
Net income fell to US$2.5 billion(Bt85.4 billion) from $6.95 billion a year earlier, London-based Rio said yesterday in a statement. Underlying earnings that exclude some one-time items were $2.6 billion, missing the $2.73-billion median estimate of seven analysts surveyed by Bloomberg.
Rio, which isn't paying a dividend for the first half, said it may pay a final dividend for 2009.
Chief executive officer Tom Albanese has grappled with debt that ballooned after Rio's $38.1 billion purchase of Canadian aluminium producer Alcan in 2007. Rio cut spending and jobs, raised a combined $21 billion from a share sale in June and an agreement to create an ironore joint venture with its biggest rival BHP Billion, helping to repay debt after commodity prices plunged.
"Rio still has a large debt pile and is now facing pressure from its largest customer China," Matthew Hasson, mining sales director in London at Arbuthnot Securities, wrote in a note. "We still prefer BHP."
Rio increased 32.5 pence, or 1.4 per ent, to 2,344 pence in early trade on the London Stock Exchange. The shares have gained 90 per cent this year.
"A final dividend will be paid subject to satifactory trading results, progress on divestments and prevailing market conditions," Rio chairman Jan du Plessis said in the statement. The total cash dividend for 2010 will be at least equal to the $1.75 billion paid in 2008, he said.
The company raised $3.7 billion this year selling assets, cut 16,0000 jobs in the first half compared with a target of 14,000, and is on schedule to meet commitments to reduce full-year spending, Albanese said.
Rio, the world's second-largest iron-ore producer, is embroiled in a spying row in China just as talks on iron-ore contracts with Chinese steelmakers remain deadlocked.
China, the largest iron-ore buyer, last week formally arrested four Rio executives including Stern Hu, an Australian and head of he company's iron ore business in China. The four, who were detained in Shanghai on July 5, face charges of bribery and stealing commercial secrets from China's steel industry. Rio said it will support the employees in defending against the allegations.
The arrests came a month after Rio rejected a proposed $19.5-billion investment from state-owned Aluminium Corp of China, also known as Chinalco, in favour of the BHP venture and a rights offer. Teh deal would have allowed Chinalco to double its stake in Rio and own a share in some mines.
The iron-ore talks stalled after the China Iron and Steel Association demanded a cut from last year's rcord price that is steeper than the 33 per cent agreed on by Japanese and Korean cutomers. China will ask Rio, BHP and Brazil's Vale for a 35-per-cent reduction to match the deal agreed to wtih Australia's Fortescue Metals Group, the CISA said on August 17.
Rio's iron-ore unit, its biggest earner, had a 33-per-cent decline in underlying earnings to $1.9 billion in the first half.
The aluminium unit swung to a $689-million loss from a profit of $1 billion a year ago. Earnings from its copper and diamind unti plunged 72 per cent to $472 million in the same period.
Aluminium was the biggest contributor to Rio's sales in 2008, accounting for 42 per cent, followed by iron ore at 30 per cent.
The average price of aluminium for immediate delivery on the London Metal Exchange slumped 53 per cent in the first half to $1,213 a tonne, from a year earlier, while copper fell 50 per cent to $4,067 a tonne.
Uneerlying earnings exllude items such as asset divestments and impairments.
The company said in June it will not pay an interim dividend.
AT A GLANCE
Chief executive officer Tom Albanese has grappled with debt that ballooned after Rio's $38.1 billion purchase of Canadian aluminium producer Alcan in 2007.
"Rio still has a large debt pile and is now facing pressure from its largest customer China," Matthew Hasson, mining sales director in London at Arbuthnot Securities, wrote in a note. "We still prefer BHP."
Rio increased 32.5 pence, or 1.4 per ent, to 2,344 pence in early trade on the London Stock Exchange. The shares have gained 90 per cent this year.
Net income fell to US$2.5 billion(Bt85.4 billion) from $6.95 billion a year earlier, London-based Rio said yesterday in a statement. Underlying earnings that exclude some one-time items were $2.6 billion, missing the $2.73-billion median estimate of seven analysts surveyed by Bloomberg.
Rio, which isn't paying a dividend for the first half, said it may pay a final dividend for 2009.
Chief executive officer Tom Albanese has grappled with debt that ballooned after Rio's $38.1 billion purchase of Canadian aluminium producer Alcan in 2007. Rio cut spending and jobs, raised a combined $21 billion from a share sale in June and an agreement to create an ironore joint venture with its biggest rival BHP Billion, helping to repay debt after commodity prices plunged.
"Rio still has a large debt pile and is now facing pressure from its largest customer China," Matthew Hasson, mining sales director in London at Arbuthnot Securities, wrote in a note. "We still prefer BHP."
Rio increased 32.5 pence, or 1.4 per ent, to 2,344 pence in early trade on the London Stock Exchange. The shares have gained 90 per cent this year.
"A final dividend will be paid subject to satifactory trading results, progress on divestments and prevailing market conditions," Rio chairman Jan du Plessis said in the statement. The total cash dividend for 2010 will be at least equal to the $1.75 billion paid in 2008, he said.
The company raised $3.7 billion this year selling assets, cut 16,0000 jobs in the first half compared with a target of 14,000, and is on schedule to meet commitments to reduce full-year spending, Albanese said.
Rio, the world's second-largest iron-ore producer, is embroiled in a spying row in China just as talks on iron-ore contracts with Chinese steelmakers remain deadlocked.
China, the largest iron-ore buyer, last week formally arrested four Rio executives including Stern Hu, an Australian and head of he company's iron ore business in China. The four, who were detained in Shanghai on July 5, face charges of bribery and stealing commercial secrets from China's steel industry. Rio said it will support the employees in defending against the allegations.
The arrests came a month after Rio rejected a proposed $19.5-billion investment from state-owned Aluminium Corp of China, also known as Chinalco, in favour of the BHP venture and a rights offer. Teh deal would have allowed Chinalco to double its stake in Rio and own a share in some mines.
The iron-ore talks stalled after the China Iron and Steel Association demanded a cut from last year's rcord price that is steeper than the 33 per cent agreed on by Japanese and Korean cutomers. China will ask Rio, BHP and Brazil's Vale for a 35-per-cent reduction to match the deal agreed to wtih Australia's Fortescue Metals Group, the CISA said on August 17.
Rio's iron-ore unit, its biggest earner, had a 33-per-cent decline in underlying earnings to $1.9 billion in the first half.
The aluminium unit swung to a $689-million loss from a profit of $1 billion a year ago. Earnings from its copper and diamind unti plunged 72 per cent to $472 million in the same period.
Aluminium was the biggest contributor to Rio's sales in 2008, accounting for 42 per cent, followed by iron ore at 30 per cent.
The average price of aluminium for immediate delivery on the London Metal Exchange slumped 53 per cent in the first half to $1,213 a tonne, from a year earlier, while copper fell 50 per cent to $4,067 a tonne.
Uneerlying earnings exllude items such as asset divestments and impairments.
The company said in June it will not pay an interim dividend.
AT A GLANCE
Chief executive officer Tom Albanese has grappled with debt that ballooned after Rio's $38.1 billion purchase of Canadian aluminium producer Alcan in 2007.
"Rio still has a large debt pile and is now facing pressure from its largest customer China," Matthew Hasson, mining sales director in London at Arbuthnot Securities, wrote in a note. "We still prefer BHP."
Rio increased 32.5 pence, or 1.4 per ent, to 2,344 pence in early trade on the London Stock Exchange. The shares have gained 90 per cent this year.
Wednesday, August 19, 2009
PROTESTS IN MAE MOH OVER POLLUTION
Hundreds of villagers in Lampang's Mae Moh district have continued to block a road to a power plant in a bid to halt lignite mining, which they say has caused them problems and bad pollution.
The protestors called for the mining license granted to the Electricity Generating Authority of Thailand to be revoked.
They later agreed to open two lanes of the road to traffic but maintained their rally.
District chief Sermsak Seesant said he had ordered an initial probe into the granting of the licence to find out why it had was approved despite a public referendum against it - which would make the approval a breach of environmental laws.
He said the Interior and Energy Ministries had been informed of the dispute over the mining licence matter and would order the operation to stop if the approval broke the law.
Protest leader Saengjan Moolsow said all 1,654 households in the Huay Khing village that she heads were affected by dust fumes, loud noise and annoying vibration generated by the mine operation.
She said the protest would continue until the mine was shut down or Egat made a statement to clarify why the licence to re-start mining was granted.
The protestors called for the mining license granted to the Electricity Generating Authority of Thailand to be revoked.
They later agreed to open two lanes of the road to traffic but maintained their rally.
District chief Sermsak Seesant said he had ordered an initial probe into the granting of the licence to find out why it had was approved despite a public referendum against it - which would make the approval a breach of environmental laws.
He said the Interior and Energy Ministries had been informed of the dispute over the mining licence matter and would order the operation to stop if the approval broke the law.
Protest leader Saengjan Moolsow said all 1,654 households in the Huay Khing village that she heads were affected by dust fumes, loud noise and annoying vibration generated by the mine operation.
She said the protest would continue until the mine was shut down or Egat made a statement to clarify why the licence to re-start mining was granted.
Tuesday, August 18, 2009
China cancels envoy's tour of Australia
China's cancellation of a senior ministerial visit to Australia has pushed ties to a fresh low at a time when political tensions over Beijing's arrest of an Australian mining executive had appeared to be easing.
Some analysts said that while the political relationship was souring, commercial deals in the lucrative resources sector should be largely unaffected because both countries needed each other too much. Two-way trade is worth $53 billion a year.
Beijing cancelled a visit by ViceMinister for Foreign Affairs He Yafei because Canberra granted a visa to exiled Uighur leader Rebiya Kadeer,blamed by China for instigating last month's ethnic riots in Xinjiang province.
"Australia very much regrets that China has decided to effect that response," Australian Foreign Minister Stephen Smith told parliament yesterday.
"We have a long-standing, productive economic relationship with China. From time to time in any bilateral relationship there will be difficulties.These difficulties need to be managed carefully and successfully, as Australia is currently managing difficulties that we currently have with China."
Political ties between Australia and its biggest trade partner have come under strain since Chinese authorities in early July detained four staff of AngloAustralian mining giant Rio Tinto,including Australian Stern Hu.
They were formally arrested last week on suspicion of obtaining commercial secrets and bribery. But earlier accusations of stealing state secrets were left aside, prompting speculation China was opening the way for an easing of political tensions.
"Clearly Australia-China relations have gone downhill in a major way,"said Alison Broinowski, a former Australian ambassador and AustraliaAsia expert at Wollongong University.
Australia's Mandarin-speaking Prime Minister Kevin Rudd had warned that the world was closely watching how China dealt with the Rio Tinto case.
The detentions coincided with wrangling between Australian miners and Chinese steel mills over iron ore prices and came after a failed $19 billion bid by China's state-owned aluminium group Chinalco for a strategic stake in Rio.
"We are in uncharted waters in the relationship," said Ron Huisken, a China and security expert at the Australian National University in Canberra.
Beijing's unhappiness with Australia dates back to the release in May of a new defence strategy paper in which Canberra pointed to a stronger China as one of the main risks to continued stability in Asia, diplomatic analysts said.
Mr Huisken said China's displeasure should not have come as a surprise, as resource-rich Australia nudged closer to the centre of Chinese concern about securing mineral and energy imports.
Experts were wrong to expect business imperatives and Mr Rudd's China expertise, including a stint as a Beijingbased diplomat, would bring a closer era in Australia-China ties, Mr Huisken said.
Nevertheless, business deals continue apace.
Upstart Australian miner Fortescue Metals Group this week agreed to a slightly cheaper iron ore price with Chinese steel mills than that sought by major miners in exchange for up to $6 billion in funding.
Meanwhile, China's state-owned Yanzhou Coal Mining Co is seeking to buy Australian coal miner Felix Resources Ltd in a $2.9 billion deal requiring foreign investment approval from Australia's government.
Some analysts said that while the political relationship was souring, commercial deals in the lucrative resources sector should be largely unaffected because both countries needed each other too much. Two-way trade is worth $53 billion a year.
Beijing cancelled a visit by ViceMinister for Foreign Affairs He Yafei because Canberra granted a visa to exiled Uighur leader Rebiya Kadeer,blamed by China for instigating last month's ethnic riots in Xinjiang province.
"Australia very much regrets that China has decided to effect that response," Australian Foreign Minister Stephen Smith told parliament yesterday.
"We have a long-standing, productive economic relationship with China. From time to time in any bilateral relationship there will be difficulties.These difficulties need to be managed carefully and successfully, as Australia is currently managing difficulties that we currently have with China."
Political ties between Australia and its biggest trade partner have come under strain since Chinese authorities in early July detained four staff of AngloAustralian mining giant Rio Tinto,including Australian Stern Hu.
They were formally arrested last week on suspicion of obtaining commercial secrets and bribery. But earlier accusations of stealing state secrets were left aside, prompting speculation China was opening the way for an easing of political tensions.
"Clearly Australia-China relations have gone downhill in a major way,"said Alison Broinowski, a former Australian ambassador and AustraliaAsia expert at Wollongong University.
Australia's Mandarin-speaking Prime Minister Kevin Rudd had warned that the world was closely watching how China dealt with the Rio Tinto case.
The detentions coincided with wrangling between Australian miners and Chinese steel mills over iron ore prices and came after a failed $19 billion bid by China's state-owned aluminium group Chinalco for a strategic stake in Rio.
"We are in uncharted waters in the relationship," said Ron Huisken, a China and security expert at the Australian National University in Canberra.
Beijing's unhappiness with Australia dates back to the release in May of a new defence strategy paper in which Canberra pointed to a stronger China as one of the main risks to continued stability in Asia, diplomatic analysts said.
Mr Huisken said China's displeasure should not have come as a surprise, as resource-rich Australia nudged closer to the centre of Chinese concern about securing mineral and energy imports.
Experts were wrong to expect business imperatives and Mr Rudd's China expertise, including a stint as a Beijingbased diplomat, would bring a closer era in Australia-China ties, Mr Huisken said.
Nevertheless, business deals continue apace.
Upstart Australian miner Fortescue Metals Group this week agreed to a slightly cheaper iron ore price with Chinese steel mills than that sought by major miners in exchange for up to $6 billion in funding.
Meanwhile, China's state-owned Yanzhou Coal Mining Co is seeking to buy Australian coal miner Felix Resources Ltd in a $2.9 billion deal requiring foreign investment approval from Australia's government.
TTA BUYS INTO PHILIPPINE ENERGY FIRM
Thoresen Thai Agencies (TTA), a leading dry-bulk shipper, has increased its presence in the energy sector through the purchase of a stake in a Philippines company.
TTA recently acquired a 21.8-per-cent stake in the coal-mining venture Merton Group (Cyprus) via its wholly owned subsidiary Soleado Holdings for Bt169 million.
The move is in line with TTA's diversification strategy, resulting in an extension of its capabilities in coal transportation and logistics.
Managing director ML Chandchutha Chandratat said yesterday that the company's primary objective in this investment was to increase its exposure to the energy sector, as the global demand for energy continues to increase.
"The prospects for the coal business, which remains a primary fuel for power generation - particularly in Asia - remain strong. A variety of forecasts from industry experts and investment analysts project coal demand to continue growing strongly over the next 20 years or more," he said.
Merton group is the sole international partner in SKI Energy Resources (SERI), a joint coal-mining venture established in the Philippines between Merton Group and SKI Construction Group (SKI).
The Philippines government is seeking to actively encourage investment in the coal-mining sector to develop its substantial domestic coal reserves. SERI now holds 3,000 hectares under coal-operating contracts granted by the Department of Energy in the Philippines.
SERI plans to initially develop the mine site at Danao, where coal reserves have already been identified with good thermal characteristics for quality commercial production.
"This investment is quite unique, because it allows TTA to enter the coal industry with a limited upfront investment, unlike many other coal projects in the region. A substantial portion of the concession area remains unexplored," said Chandchutha, adding that it is possible that the company can acquire more exploration concessions elsewhere in Philippines.
"The Merton Group investment is an exciting move for TTA, but we are continually looking for further investments in our focus areas of transport, energy and infrastructure. We are not stopping here," he said.
Merton Group was established in 2007 with the objective of monetising the growing demand for energy worldwide, particularly in the fast-growing economies of Asia such as China and India.
It initially acquired interests in the Naga Mine site in Cebu, Philippines, and subsequently entered into a joint venture with SKI in SKI's Danao site, also in Cebu.
Founded in 1976, SKI is one of the top five general contractors in the Philippines and the one securing coal concessions, which led to its acquisition of the Danao site in 2005.
TTA recently acquired a 21.8-per-cent stake in the coal-mining venture Merton Group (Cyprus) via its wholly owned subsidiary Soleado Holdings for Bt169 million.
The move is in line with TTA's diversification strategy, resulting in an extension of its capabilities in coal transportation and logistics.
Managing director ML Chandchutha Chandratat said yesterday that the company's primary objective in this investment was to increase its exposure to the energy sector, as the global demand for energy continues to increase.
"The prospects for the coal business, which remains a primary fuel for power generation - particularly in Asia - remain strong. A variety of forecasts from industry experts and investment analysts project coal demand to continue growing strongly over the next 20 years or more," he said.
Merton group is the sole international partner in SKI Energy Resources (SERI), a joint coal-mining venture established in the Philippines between Merton Group and SKI Construction Group (SKI).
The Philippines government is seeking to actively encourage investment in the coal-mining sector to develop its substantial domestic coal reserves. SERI now holds 3,000 hectares under coal-operating contracts granted by the Department of Energy in the Philippines.
SERI plans to initially develop the mine site at Danao, where coal reserves have already been identified with good thermal characteristics for quality commercial production.
"This investment is quite unique, because it allows TTA to enter the coal industry with a limited upfront investment, unlike many other coal projects in the region. A substantial portion of the concession area remains unexplored," said Chandchutha, adding that it is possible that the company can acquire more exploration concessions elsewhere in Philippines.
"The Merton Group investment is an exciting move for TTA, but we are continually looking for further investments in our focus areas of transport, energy and infrastructure. We are not stopping here," he said.
Merton Group was established in 2007 with the objective of monetising the growing demand for energy worldwide, particularly in the fast-growing economies of Asia such as China and India.
It initially acquired interests in the Naga Mine site in Cebu, Philippines, and subsequently entered into a joint venture with SKI in SKI's Danao site, also in Cebu.
Founded in 1976, SKI is one of the top five general contractors in the Philippines and the one securing coal concessions, which led to its acquisition of the Danao site in 2005.
Contamination woes continue at Klity
Klity villagers in Kanchanaburi province have no choice but to consume leadcontaminated water as the Pollution Control Department continues to fail to find a way to clean up their creek.
"I don't think the problem will be solved any time soon," said Worasart Apaipong, the department's deputy chief."It's too difficult to remove all the contaminated sediment from the waterway."
Mr Worasart chairs a panel charged with finding a way to solve the lead contamination of Klity creek in the western forest complex in Thong Pha Phum district.
Klity creek, which is a major source of water for Lower Klity villagers, has been heavily polluted by waste from an idle lead processing plant. Scores of villagers, mostly children, are suffering from lead poisoning-related ailments.
The panel of government bureaucrats,academics, environmental activists and villagers is the department's latest bid to tackle the problem.
The agency last year lost a court case filed by 22 affected villagers.
The Administrative Court blamed the department for not only being slow in its efforts to rehabilitate the contaminated creek but also failing to claim compensation from the polluter.
The department was ordered to pay 743,000 baht in compensation to each of the plaintiffs.
The panel will make a final decision on how to rid the area of contamination after the department receives proposals from a consultant firm.
The firm has been asked to study and suggest the most appropriate and effective clean-up operations, the pollution control deputy chief said.
Experts have been at loggerheads over what to do. While some have argued that there is no better solution than trying to remove the lead sediment from the creek, others believe such a move could make the lead spread further in the water. Finding a site to store the lead-tainted soil is another problem.
Earlier, the department said the contaminated sediment should be left where it is.
Surapol Kongchantuek, director of the Karen Studies and Development Centre,who has followed the Klity case, said the consultant firm's proposals would be useless if the department stood firm by its stance that the polluted sediment should be left in the creek.
More than 15,000 tonnes of leadtainted sediment is in the creek, which flows to many major rivers. The department needs to be sincere if people are to expect a proper solution, he said.
"I don't think the problem will be solved any time soon," said Worasart Apaipong, the department's deputy chief."It's too difficult to remove all the contaminated sediment from the waterway."
Mr Worasart chairs a panel charged with finding a way to solve the lead contamination of Klity creek in the western forest complex in Thong Pha Phum district.
Klity creek, which is a major source of water for Lower Klity villagers, has been heavily polluted by waste from an idle lead processing plant. Scores of villagers, mostly children, are suffering from lead poisoning-related ailments.
The panel of government bureaucrats,academics, environmental activists and villagers is the department's latest bid to tackle the problem.
The agency last year lost a court case filed by 22 affected villagers.
The Administrative Court blamed the department for not only being slow in its efforts to rehabilitate the contaminated creek but also failing to claim compensation from the polluter.
The department was ordered to pay 743,000 baht in compensation to each of the plaintiffs.
The panel will make a final decision on how to rid the area of contamination after the department receives proposals from a consultant firm.
The firm has been asked to study and suggest the most appropriate and effective clean-up operations, the pollution control deputy chief said.
Experts have been at loggerheads over what to do. While some have argued that there is no better solution than trying to remove the lead sediment from the creek, others believe such a move could make the lead spread further in the water. Finding a site to store the lead-tainted soil is another problem.
Earlier, the department said the contaminated sediment should be left where it is.
Surapol Kongchantuek, director of the Karen Studies and Development Centre,who has followed the Klity case, said the consultant firm's proposals would be useless if the department stood firm by its stance that the polluted sediment should be left in the creek.
More than 15,000 tonnes of leadtainted sediment is in the creek, which flows to many major rivers. The department needs to be sincere if people are to expect a proper solution, he said.
Coal market lifts Banpu profit 73%
Banpu Plc, one of the region's biggest coal miners, posted a strong increase of 73% in net profit for the second quarter on higher coal sales volume and value,according to chief executive Chanin Vongkusolkit.
The SET-listed company's secondquarter profit totalled 3.98 billion baht,up 73% year-on-year, on sales of 12.93 billion, a 17% increase from a year earlier.First-half profit doubled 8.78 billion baht from 4.37 billion.
The company said higher sales volume and a higher grade of coal resulted in better selling prices from its Indonesian mines, while it also saw gains from its holding in a Chinese coal mining business.
Hebi Mine, a joint venture with Asian American Coal Inc, generated equity income to Banpu of 1.76 billion baht, a 55% increase from the first quarter, as a result of higher output and strong coal prices in China.
Banpu's average coal sales price in the second quarter was US$73.89 per tonne, a 12% decrease from $84.23 a quarter earlier as its contracts for the quarter were priced during the second half of 2008 when market prices were down.
Despite the softening average price,its coal sales volume in the quarter was up 1% to 4.51 million tonnes from the first quarter, on higher production and better management of coal shipments from Indonesia.
Mr Chanin said the company expected to increase its coal output in the latter half of the year in line with the expansion of its Indominco production area in Indonesia.
Meanwhile, its power subsidiary BLCP contributed profit of 1.25 billion baht,up 122% from the first quarter, helped by 286 million baht in foreign-exchange gains.
The China-based power business,Banpu Power Investment (China) Ltd (BPIC), which operates combined heat and power plants, reported a net profit of 101 million, down 55% from the first quarter this year as a result of lower steam demand in line with the postwinter season.
Around 92% of Banpu's total revenue came from coal, rising 18% in revenue to 11.84 billion. Total sales of power and steam from the three combined heat and power plants in China were 1.08 billion baht, accounting for 8% of total sales revenue.
According to Siam City Research Institute, Banpu's net profit in the latter half of the year is likely to weaken mainly due to a shutdown of production at BLCP,and softening coal prices. The brokerage forecasts full-year net profit at 10.9 billion,an increase of 19% year-on-year.
Banpu is also exploring investment opportunities in resource-rich countries such as India and Australia.
Banpu shares closed yesterday on the Stock Exchange of Thailand at 408 baht,down two baht in trade worth 1.31 billion baht.
The SET-listed company's secondquarter profit totalled 3.98 billion baht,up 73% year-on-year, on sales of 12.93 billion, a 17% increase from a year earlier.First-half profit doubled 8.78 billion baht from 4.37 billion.
The company said higher sales volume and a higher grade of coal resulted in better selling prices from its Indonesian mines, while it also saw gains from its holding in a Chinese coal mining business.
Hebi Mine, a joint venture with Asian American Coal Inc, generated equity income to Banpu of 1.76 billion baht, a 55% increase from the first quarter, as a result of higher output and strong coal prices in China.
Banpu's average coal sales price in the second quarter was US$73.89 per tonne, a 12% decrease from $84.23 a quarter earlier as its contracts for the quarter were priced during the second half of 2008 when market prices were down.
Despite the softening average price,its coal sales volume in the quarter was up 1% to 4.51 million tonnes from the first quarter, on higher production and better management of coal shipments from Indonesia.
Mr Chanin said the company expected to increase its coal output in the latter half of the year in line with the expansion of its Indominco production area in Indonesia.
Meanwhile, its power subsidiary BLCP contributed profit of 1.25 billion baht,up 122% from the first quarter, helped by 286 million baht in foreign-exchange gains.
The China-based power business,Banpu Power Investment (China) Ltd (BPIC), which operates combined heat and power plants, reported a net profit of 101 million, down 55% from the first quarter this year as a result of lower steam demand in line with the postwinter season.
Around 92% of Banpu's total revenue came from coal, rising 18% in revenue to 11.84 billion. Total sales of power and steam from the three combined heat and power plants in China were 1.08 billion baht, accounting for 8% of total sales revenue.
According to Siam City Research Institute, Banpu's net profit in the latter half of the year is likely to weaken mainly due to a shutdown of production at BLCP,and softening coal prices. The brokerage forecasts full-year net profit at 10.9 billion,an increase of 19% year-on-year.
Banpu is also exploring investment opportunities in resource-rich countries such as India and Australia.
Banpu shares closed yesterday on the Stock Exchange of Thailand at 408 baht,down two baht in trade worth 1.31 billion baht.
RIO TINTO MOVES SOME STAFF OUT OF SHANGHAI
Rio Tinto, the third-largest mining company, said it moved some employee out of its Shanghai office after the detention of four executives for allegedly stealing state secrts.
"We are constantly moving people around and we have consolidated some activities outside of the Shanghai office," Sam Walsh, head of London-based Rio's iron-ore unit, said yesterday.
Some n on-Chinese workers from Shanghai moved to Singapore, he said, without saying how many.
The six-week detention of the Rio sales executives, Australian citizen Stern Hu and three Chinese nationals, for allegedly stealing state secrets has strained relations between Australia and China and raised concern the company's US$10 billion (Bt340.3 billion) of sales to the Asian nation may be jeopardised. Australia has said the detentions may be connected to iron ore price talks.
"This is a giant game between Australia and one of its biggest trading partners," said Peter Kenyon, professor of economic policy at rutin University's Graduate School of Business in Perth. "They are using lots of tactics to make the negotiations complex as possible, and to a certain extent they are succeeding."
"We are very concerned about it from the basis of he welfare of our employees," Walsh said. "We have very high expectations of ourselves. That's why we are finding it very difficult to understand what is going on there."
China, the world's biggest buyer of iron ore, is Australia's second-biggest trading partner, with two-way trade valued at 68 billion Australian dollars (Bt2 trillion) in 2008.
"We are constantly moving people around and we have consolidated some activities outside of the Shanghai office," Sam Walsh, head of London-based Rio's iron-ore unit, said yesterday.
Some n on-Chinese workers from Shanghai moved to Singapore, he said, without saying how many.
The six-week detention of the Rio sales executives, Australian citizen Stern Hu and three Chinese nationals, for allegedly stealing state secrets has strained relations between Australia and China and raised concern the company's US$10 billion (Bt340.3 billion) of sales to the Asian nation may be jeopardised. Australia has said the detentions may be connected to iron ore price talks.
"This is a giant game between Australia and one of its biggest trading partners," said Peter Kenyon, professor of economic policy at rutin University's Graduate School of Business in Perth. "They are using lots of tactics to make the negotiations complex as possible, and to a certain extent they are succeeding."
"We are very concerned about it from the basis of he welfare of our employees," Walsh said. "We have very high expectations of ourselves. That's why we are finding it very difficult to understand what is going on there."
China, the world's biggest buyer of iron ore, is Australia's second-biggest trading partner, with two-way trade valued at 68 billion Australian dollars (Bt2 trillion) in 2008.
BHP gets new boss
BHP Billiton Ltd/Plc, the world's largest miner, yesterday named veteran former Ford Motor Co chief executive Jac Nasser as its new chairman, following an 18-month selection process.
He will succeed Don Argus, the chairman for more than 10 years, who will retire in early 2010.
Nasser, whose reputation as a costcutter has earned him the nickname "Jac the Knife", was rumoured to be one of the front runners for the job.
He joined the BHP Billiton board as a non-executive director in 2006 and is a member of the board's risk and audit committee.
Nasser,61, was born in Lebanon and migrated to Australia at the age of four.
He began his 33-year career with Ford in Australia before being named head of the global automotive business in 1996 and becoming CEO in 1998. He was ousted as CEO in October 2001, a year the automaker reported a $5.45 billion loss.
The loss in 2001 included the cost of eliminating 35,000 jobs, or about 10% of Ford's workforce, and closing at least three North American assembly plants.
One of the leading criticisms of Nasser among Wall Street analysts at the time was that he went on an acquisitions binge during his tenure at Ford, burning through cash to buy up companies like Volvo cars and Land Rover.
He is currently managing director of private equity company One Equity Partners and an independent non-executive director of BSkyB.
He will succeed Don Argus, the chairman for more than 10 years, who will retire in early 2010.
Nasser, whose reputation as a costcutter has earned him the nickname "Jac the Knife", was rumoured to be one of the front runners for the job.
He joined the BHP Billiton board as a non-executive director in 2006 and is a member of the board's risk and audit committee.
Nasser,61, was born in Lebanon and migrated to Australia at the age of four.
He began his 33-year career with Ford in Australia before being named head of the global automotive business in 1996 and becoming CEO in 1998. He was ousted as CEO in October 2001, a year the automaker reported a $5.45 billion loss.
The loss in 2001 included the cost of eliminating 35,000 jobs, or about 10% of Ford's workforce, and closing at least three North American assembly plants.
One of the leading criticisms of Nasser among Wall Street analysts at the time was that he went on an acquisitions binge during his tenure at Ford, burning through cash to buy up companies like Volvo cars and Land Rover.
He is currently managing director of private equity company One Equity Partners and an independent non-executive director of BSkyB.
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