The mining group Petra Diamonds has discovered a 507.55-carat white diamond at South Africa's Cullinan mine, one of the largest highquality rough diamonds ever found, the firm said yesterday.
"This spectacular gemstone was recovered on September 24 and is currently with experts for analysis," said a statement released by the London-listed company which operates mainly in Africa.
Initial examinations of the diamond which weighs just over 100 grams (3.5 ounces), have shown it to be of exceptional colour and clarity.
The diamond is currently undergoing colour grading, but it is believed to be a rare Type II diamond, with very low traces of nitrogen - considered an impurity - making such diamonds among the most transparent and colourless of the gems.
The precious stone was found alongside three other special white gems of similar colour and clarity, a large diamond of 168.00 carats and two other stones of 58.50 and 53.30 carats.
The mine is renowned for the discovery of the famed Cullinan Diamond in 1905.
Wednesday, September 30, 2009
Sunday, September 27, 2009
New Chinese bids shot down
China's efforts to gain a greater stake in Australia's resource sector floundered yesterday when a Chinese miner terminated a US$400 million deal for a controlling stake in Australian rareearths miner.
China Nonferrous Metal Mining (Group) Co Ltd terminated its bid for Lynas Corp, owner of the world's largest undeveloped deposit of rare earths, citing stiff conditions imposed by Australia's Foreign Investment Review Board.
The investment review board had demanded CNMC reduce its ownership to below 50% and take a clear minority of board seats in Lynas.
"As a result of additional undertakings recently sought by the Australian Foreign Investment Review Board, CNMC has terminated the CNMC transaction," it said.
There is strong public and political opposition in Australia to China's moves to gain a greater hold of its resource sector.
Earlier yesterday, the Australian Defence Mepartment rejected a separate Chinese investment in an outback mining venture, saying it threatened national security.
The proposed project is a joint venture between Wugang Australia Resources,a wholly-owned unit of Chinese stateowned Wuhan Iron and Steel, and Australia's Western Plains Resources.
Australia's Defence Ministry said it would not support the Chinese magnetite resource investment inside the vast outback Woomera missile range, used as a weapons-testing ground by the military and key Australian allies.
The military's lack of support means there is virtually no chance that approval will be given.
Both decisions come at a time of strained diplomatic ties between Canberra and Beijing after an Australian executive working for Anglo-Australian miner Rio Tinto was arrested in China and accused of commercial spying.
"For a long time, China has had an open policy when it comes to foreign companies investing here. We hope other governments can take the same position when it comes to Chinese firms," Foreign Ministry spokeswoman Jiang Yu said yesterday.
China's government, anxious to secure access to Australian resources, became upset at the failure this year of a $19.5 billion tie-up between state-owned metals firm Chinalco and Rio Tinto after Rio walked away from the deal.
In April, Swan rejected Chinese stateowned firm Minmetals'$2.26 billion bid to acquire debt-stressed OZ Minerals on national security grounds, saying the local firm's main mine lay too close to Woomera. Australia finally approved a revised deal whereby Minmetals would buy OZ Minerals' other mines.
Australian Defence Minister John Faulkner said yesterday the ministry's rejection of the Chinese/Woomera deal had nothing to do with China, but was purely a security issue.
"Defence looks at these issues. Its assessment considers issues such as safety concerns, its likelihood to interfere with Defence's weapon testing activities,"he said.
China Nonferrous Metal Mining (Group) Co Ltd terminated its bid for Lynas Corp, owner of the world's largest undeveloped deposit of rare earths, citing stiff conditions imposed by Australia's Foreign Investment Review Board.
The investment review board had demanded CNMC reduce its ownership to below 50% and take a clear minority of board seats in Lynas.
"As a result of additional undertakings recently sought by the Australian Foreign Investment Review Board, CNMC has terminated the CNMC transaction," it said.
There is strong public and political opposition in Australia to China's moves to gain a greater hold of its resource sector.
Earlier yesterday, the Australian Defence Mepartment rejected a separate Chinese investment in an outback mining venture, saying it threatened national security.
The proposed project is a joint venture between Wugang Australia Resources,a wholly-owned unit of Chinese stateowned Wuhan Iron and Steel, and Australia's Western Plains Resources.
Australia's Defence Ministry said it would not support the Chinese magnetite resource investment inside the vast outback Woomera missile range, used as a weapons-testing ground by the military and key Australian allies.
The military's lack of support means there is virtually no chance that approval will be given.
Both decisions come at a time of strained diplomatic ties between Canberra and Beijing after an Australian executive working for Anglo-Australian miner Rio Tinto was arrested in China and accused of commercial spying.
"For a long time, China has had an open policy when it comes to foreign companies investing here. We hope other governments can take the same position when it comes to Chinese firms," Foreign Ministry spokeswoman Jiang Yu said yesterday.
China's government, anxious to secure access to Australian resources, became upset at the failure this year of a $19.5 billion tie-up between state-owned metals firm Chinalco and Rio Tinto after Rio walked away from the deal.
In April, Swan rejected Chinese stateowned firm Minmetals'$2.26 billion bid to acquire debt-stressed OZ Minerals on national security grounds, saying the local firm's main mine lay too close to Woomera. Australia finally approved a revised deal whereby Minmetals would buy OZ Minerals' other mines.
Australian Defence Minister John Faulkner said yesterday the ministry's rejection of the Chinese/Woomera deal had nothing to do with China, but was purely a security issue.
"Defence looks at these issues. Its assessment considers issues such as safety concerns, its likelihood to interfere with Defence's weapon testing activities,"he said.
Thursday, September 24, 2009
Thai firm's Congo tin exit seen as setback
The decision by the Thai unit of Amalgamated Metals Corp to halt tin purchases from the Democratic Republic of Congo may wreck a plan to limit revenue reaching armed groups, according to the tin industry group ITRI.
Thailand Smelting & Refining, the top buyer of tin from Congo, announced the suspension of tin ore purchases last week, citing the threat of misleading and bad publicity for any company that participates in the trade.
That decision may jeopardise an ITRI initiative to certify the origin of tin shipments from Africa's top producer.
"With the withdrawal of AMC, we're not sure we can implement the project,"ITRI sustainability manager Kay Nimmo said yesterday from St Albans, England.
UN reports say profits from tin,columbo-tantalite and gold production in the eastern provinces of North and South Kivu help stoke the armed violence in Congo, where conflict has killed more than 5 million people since 1998. The tin is excavated by hand-diggers and mostly shipped to Asian smelters, before it is used in consumer electronics.
Congo produced 15,500 tonnes of tin,or about 6% of world output, last year.
Thailand Smelting & Refining, which said it would honour existing commit-ments, buys about half of Congo's tin exports, spokesman James MacFarlane said last week.
AMC's exit follows the pullout of another major buyer, Traxys SA, in June.
"The Congolese state lives fromminerals. The economy will be practically paralysed," North Kivu Mines Minister Juvenal Ndabereye said.
A report by Global Witness, which accused companies of buying tin from traders with links to armed groups, spotlighted the need for initiatives such as ITRI's, said Ms Nimmo, who acknowledged there had been threats of sanctions against companies.
Thailand Smelting & Refining, the top buyer of tin from Congo, announced the suspension of tin ore purchases last week, citing the threat of misleading and bad publicity for any company that participates in the trade.
That decision may jeopardise an ITRI initiative to certify the origin of tin shipments from Africa's top producer.
"With the withdrawal of AMC, we're not sure we can implement the project,"ITRI sustainability manager Kay Nimmo said yesterday from St Albans, England.
UN reports say profits from tin,columbo-tantalite and gold production in the eastern provinces of North and South Kivu help stoke the armed violence in Congo, where conflict has killed more than 5 million people since 1998. The tin is excavated by hand-diggers and mostly shipped to Asian smelters, before it is used in consumer electronics.
Congo produced 15,500 tonnes of tin,or about 6% of world output, last year.
Thailand Smelting & Refining, which said it would honour existing commit-ments, buys about half of Congo's tin exports, spokesman James MacFarlane said last week.
AMC's exit follows the pullout of another major buyer, Traxys SA, in June.
"The Congolese state lives fromminerals. The economy will be practically paralysed," North Kivu Mines Minister Juvenal Ndabereye said.
A report by Global Witness, which accused companies of buying tin from traders with links to armed groups, spotlighted the need for initiatives such as ITRI's, said Ms Nimmo, who acknowledged there had been threats of sanctions against companies.
Saturday, September 19, 2009
SCG focuses on overseas coal trading
Siam Cement Group (SCG), Thailand's top industrial conglomerate, is ramping up its coal trading business overseas by opening processing and distributing hubs in Southeast Asia, China and India.
The expansion is expected to lift coal trading by 40-50% in value and turnover next year, said Kalin Sarasin, managing director of SCT Co, a trading arm of SCG.
By the third quarter of 2010, SCT will open hubs in south China, India, Malaysia and the Philippines, each at an investment of 20-30 million baht, he said.
SCT operates two coal hubs in Thailand, and one each in Cambodia, Vietnam and the Philippines.
Coal demand from food, cement,paper and cloth dye sectors is growing.With economies in Malaysia, the Philippines and Indonesia picking up while China's swells, coal demand should surge next year, Mr Kalin said.
SCT has about 30 major clients in Thailand that consume 3,000 tonnes of coal per month, and 100 smaller-scale clients with sales of 300 to 1,000 tonnes.Sales to small clients climbed to 300,000 tonnes in the first eight months from 180,000 tonnes a year earlier, he said.
The company sources coal from Indonesia's Sumatra and the Kalimantan portion of Borneo.
But sales are set to decrease to 3 million tonnes from 3.5 million last year after demand plunged in the first quarter.
Coal sales amount to 17-20% of SCT's core energy business. Other products include recycled goods and industrial products such as plastic, aluminum, tapioca, cement and other building materials.
Mr Kalin said SCT was also going to import biomass materials from Singapore in the current quarter to expand its energy business that had sourced products locally. It is also investing 60 million baht on a coal mixture pilot project in Ayutthaya that will create a value-added product to replace bunker oil to heat boilers.
The project is commercially viable when coal is $70 per tonne, as now. The coal mixture is 20% cheaper than bunker oil, he said.
SCT has 32 offices in 21 countries including Australia, Hong Kong, Taiwan,the US, Bangladesh, the UAE and Jordan.
SCG's coal business is the first of its kind in Thailand with the ISO 14001 environmental standard and the OHASAS 18001 standard for employees welfare.
Shares of Siam Cement (SCC) closed yesterday at 299 baht, up three baht, in trade worth 1.53 billion baht.
The expansion is expected to lift coal trading by 40-50% in value and turnover next year, said Kalin Sarasin, managing director of SCT Co, a trading arm of SCG.
By the third quarter of 2010, SCT will open hubs in south China, India, Malaysia and the Philippines, each at an investment of 20-30 million baht, he said.
SCT operates two coal hubs in Thailand, and one each in Cambodia, Vietnam and the Philippines.
Coal demand from food, cement,paper and cloth dye sectors is growing.With economies in Malaysia, the Philippines and Indonesia picking up while China's swells, coal demand should surge next year, Mr Kalin said.
SCT has about 30 major clients in Thailand that consume 3,000 tonnes of coal per month, and 100 smaller-scale clients with sales of 300 to 1,000 tonnes.Sales to small clients climbed to 300,000 tonnes in the first eight months from 180,000 tonnes a year earlier, he said.
The company sources coal from Indonesia's Sumatra and the Kalimantan portion of Borneo.
But sales are set to decrease to 3 million tonnes from 3.5 million last year after demand plunged in the first quarter.
Coal sales amount to 17-20% of SCT's core energy business. Other products include recycled goods and industrial products such as plastic, aluminum, tapioca, cement and other building materials.
Mr Kalin said SCT was also going to import biomass materials from Singapore in the current quarter to expand its energy business that had sourced products locally. It is also investing 60 million baht on a coal mixture pilot project in Ayutthaya that will create a value-added product to replace bunker oil to heat boilers.
The project is commercially viable when coal is $70 per tonne, as now. The coal mixture is 20% cheaper than bunker oil, he said.
SCT has 32 offices in 21 countries including Australia, Hong Kong, Taiwan,the US, Bangladesh, the UAE and Jordan.
SCG's coal business is the first of its kind in Thailand with the ISO 14001 environmental standard and the OHASAS 18001 standard for employees welfare.
Shares of Siam Cement (SCC) closed yesterday at 299 baht, up three baht, in trade worth 1.53 billion baht.
Sunday, September 13, 2009
Mine blast death toll reaches 42;37 trapped
The death toll from an explosion at an illegal coal mine in central China rose to 42 yesterday with another 37 men still trapped with little hope for survival.
Elsewhere in the same province,Henan,13 workers were killed in a gold mine fire sparked by the severing of electrical wires in a cave-in, the Xinhua news agency reported yesterday.
Six of the 12 miners working underground at the time of the accident escaped to safety, but seven members of a rescue team were later trapped by the fire and also died, Xinhua said.
The accident on Tuesday evening came hours after the explosion at the illegal coal mine in Henan where 93 men had been working underground.
A statement on the State Administration of Work Safety's website did not give a reason for the pre-dawn explosion.It said 14 miners fled to safety.
Two local officials were dismissed because the mine was found to be operating illegally. The mine's owners were placed under police surveillance and the company's bank accounts frozen.
Elsewhere in the same province,Henan,13 workers were killed in a gold mine fire sparked by the severing of electrical wires in a cave-in, the Xinhua news agency reported yesterday.
Six of the 12 miners working underground at the time of the accident escaped to safety, but seven members of a rescue team were later trapped by the fire and also died, Xinhua said.
The accident on Tuesday evening came hours after the explosion at the illegal coal mine in Henan where 93 men had been working underground.
A statement on the State Administration of Work Safety's website did not give a reason for the pre-dawn explosion.It said 14 miners fled to safety.
Two local officials were dismissed because the mine was found to be operating illegally. The mine's owners were placed under police surveillance and the company's bank accounts frozen.
Tuesday, September 8, 2009
China swoops on Australian miners
Chinese state-owned firms expanded their footprint in Australia's mining industry yesterday, agreeing to help fund two iron ore explorers in return for supply contracts and taking a controlling stake in a uranium prospector.
China, the world's third-largest economy, is leading the world out of the deepest global recession in 80 years,and its appetite for raw materials is as strong as ever, especially for Australian commodities such as iron ore.
In two iron ore-related deals announced yesterday, China Railway Materials Commercial Corp forged separate alliances with explorers FerrAus and United Minerals, both operating in west Australia's vast Pilbara iron ore belt.
In the third, China Guangdong Nuclear Power Holding Co Ltd agreed a takeover of uranium prospector Energy Metals .
Another junior iron ore miner, Atlas Iron, revealed to Reuters that it, too,had held inconclusive talks with prospective Chinese investors, though managing director David Flanagan said Atlas did not need fresh equity right now.
All foreign sovereign investments need Australian government approval, and the queue of Chinese state investments awaiting the government's go-ahead is lengthening by the day, all at a time of political tensions between Canberra and Beijing .
In the next few weeks, the Australian government's secretive Foreign Investment Review Board is expected to rule on a Chinese state-owned firm's $400 million deal to take a majority stake in rare-earths company Lynas Corp's.
That deal was announced back in May.
China is swooping on Australian prospectors and miners at a time when they are hungry for new capital to dig new mines and build new rail lines and ports. Much of Australia's resources are in remote outback areas with little infrastructure.
The deep pockets of China Railway Materials could help both FerrAus and United Minerals to develop their Pilbara deposits, including new rail and port facilities needed for it to export their ore from the eastern Pilbara.
The United Minerals deal will help it develop its "Railway Iron Ore" deposit and is conditional on it supplying China Railway Materials with 3 million tonnes of ore a year for 10 years.
"Funds from this capital raising and more importantly the relationship we are building with China Railway Materials Commercial Corp Group will enable the Railway Iron Ore Deposit to be advanced towards production," United Minerals chief executive Matthew Hogan said.
China takes almost 80% of Australian iron ore exports by volume, up from around 20% at the start of the decade.
Australian uranium is also a growing target for Chinese capital, with state and national governments now encouraging new uraniummines afters years of political hostility.
China Guangdong Nuclear (CGNPC)agreed to buy up to 70% of Energy Metals.
"The Energy Metals board believes that CGNPC's financial resources, technical expertise and strategic intent to develop its uranium resource portfolio,will greatly assist Energy Metals in its transition from explorer to developer and producer," chairman Oscar Aamodt said in a statement.
Energy Metals'40% shareholder, Jindalee Resources Ltd, intended to accept the Chinese bid, in the absence of a superior offer, Energy Metals said.
China, the world's third-largest economy, is leading the world out of the deepest global recession in 80 years,and its appetite for raw materials is as strong as ever, especially for Australian commodities such as iron ore.
In two iron ore-related deals announced yesterday, China Railway Materials Commercial Corp forged separate alliances with explorers FerrAus and United Minerals, both operating in west Australia's vast Pilbara iron ore belt.
In the third, China Guangdong Nuclear Power Holding Co Ltd agreed a takeover of uranium prospector Energy Metals .
Another junior iron ore miner, Atlas Iron, revealed to Reuters that it, too,had held inconclusive talks with prospective Chinese investors, though managing director David Flanagan said Atlas did not need fresh equity right now.
All foreign sovereign investments need Australian government approval, and the queue of Chinese state investments awaiting the government's go-ahead is lengthening by the day, all at a time of political tensions between Canberra and Beijing .
In the next few weeks, the Australian government's secretive Foreign Investment Review Board is expected to rule on a Chinese state-owned firm's $400 million deal to take a majority stake in rare-earths company Lynas Corp's.
That deal was announced back in May.
China is swooping on Australian prospectors and miners at a time when they are hungry for new capital to dig new mines and build new rail lines and ports. Much of Australia's resources are in remote outback areas with little infrastructure.
The deep pockets of China Railway Materials could help both FerrAus and United Minerals to develop their Pilbara deposits, including new rail and port facilities needed for it to export their ore from the eastern Pilbara.
The United Minerals deal will help it develop its "Railway Iron Ore" deposit and is conditional on it supplying China Railway Materials with 3 million tonnes of ore a year for 10 years.
"Funds from this capital raising and more importantly the relationship we are building with China Railway Materials Commercial Corp Group will enable the Railway Iron Ore Deposit to be advanced towards production," United Minerals chief executive Matthew Hogan said.
China takes almost 80% of Australian iron ore exports by volume, up from around 20% at the start of the decade.
Australian uranium is also a growing target for Chinese capital, with state and national governments now encouraging new uraniummines afters years of political hostility.
China Guangdong Nuclear (CGNPC)agreed to buy up to 70% of Energy Metals.
"The Energy Metals board believes that CGNPC's financial resources, technical expertise and strategic intent to develop its uranium resource portfolio,will greatly assist Energy Metals in its transition from explorer to developer and producer," chairman Oscar Aamodt said in a statement.
Energy Metals'40% shareholder, Jindalee Resources Ltd, intended to accept the Chinese bid, in the absence of a superior offer, Energy Metals said.
Sunday, September 6, 2009
More public participation urged to solve potash woes
The government is seeking to aid potash mining by increasing public participation to end a fierce dispute between investors and local residents.
"We are doing this in the hope of reducing imports of fertiliser. Since potash is a main ingredient in making fertiliser, if its costs are lower this would help the farm sector too," said Suraphong Chiengtong, a deputy director-general of the Department of Primary Industries and Mines.
A problem-solving committee for the Udon Thani potash mine, for which AsiaPacific Potash Corporation (APPC) holds the exploration concession, will meet next week to work out strategies to promote public participation.
"The potash mine in Udon Thani has faced local opponents for a long time.To solve this we must listen more to local people's demands and share with them the benefits of the mine," said Mr Suraphong.
The committee will soon meet with local residents to hear their views, he added.
The project's opponents have shown positive signs that mutual agreement with investors could be reached, he said.
The Udon Thani project was started in 1984 by a Canadian-Thai joint venture.But strong opposition from villagers led investors to retreat without making any progress.
Italian-Thai Development, Thailand's largest construction company, now holds 90% of shares in APPC. Ital-Thai said earlier that it would sign a concession for mining with the government next year.
Meanwhile, Asean Potash Mining, a joint venture between Asean governments and Thai investors, is likely to find a new investor soon, according to Mr Suraphong.
The struggling company plans to operate a potash mine in Chaiyaphum and is seeking partners to raise capital. Founded in 1990, the company is 71% owned by Thai investors including TMB Bank,Bangchak Petroleum Plc and the Finance Ministry, which owns 22.08%. The remaining 29% stake is held by Asean members including Brunei, Indonesia, Malaysia, the Philippines and Singapore.
As the Finance Ministry is a major shareholder, the Natural Resources and Environment Ministry is likely to approve the company's use of forest reserve land in Chaiyaphum for mining if investors promise high environmental protection.
"Once this process is done officially,potential investors will jump in to solve the company's financial problem," Mr Suraphong said.
New investors need to invest 1 billion baht and to have mining experience,marketing talent and high technology for potash mining, he said.
The mineral is now trading at $700 per tonne. Thailand's annual consumption of potash is 500,000 tonnes, all of it imported. The country has potash deposits of up to 700 million tonnes, mainly in the northeastern region.
Potash mining would require extra environmental and community health impact assessment reports under Section 67 of the 2007 Constitution. The exact guidelines for industries deemed harmful under Section 67 will be finalised soon.
Meanwhile, the department is also promoting local production of dolomite,an important mineral that reduces soil acidity and raises agricultural yields.
"Current dolomite factories are inefficient, though we have rich reserves.We have spent 2 million baht to improve some factories' facilities and are providing free consultancy to improve production,"said Mr Suraphong.
"We are doing this in the hope of reducing imports of fertiliser. Since potash is a main ingredient in making fertiliser, if its costs are lower this would help the farm sector too," said Suraphong Chiengtong, a deputy director-general of the Department of Primary Industries and Mines.
A problem-solving committee for the Udon Thani potash mine, for which AsiaPacific Potash Corporation (APPC) holds the exploration concession, will meet next week to work out strategies to promote public participation.
"The potash mine in Udon Thani has faced local opponents for a long time.To solve this we must listen more to local people's demands and share with them the benefits of the mine," said Mr Suraphong.
The committee will soon meet with local residents to hear their views, he added.
The project's opponents have shown positive signs that mutual agreement with investors could be reached, he said.
The Udon Thani project was started in 1984 by a Canadian-Thai joint venture.But strong opposition from villagers led investors to retreat without making any progress.
Italian-Thai Development, Thailand's largest construction company, now holds 90% of shares in APPC. Ital-Thai said earlier that it would sign a concession for mining with the government next year.
Meanwhile, Asean Potash Mining, a joint venture between Asean governments and Thai investors, is likely to find a new investor soon, according to Mr Suraphong.
The struggling company plans to operate a potash mine in Chaiyaphum and is seeking partners to raise capital. Founded in 1990, the company is 71% owned by Thai investors including TMB Bank,Bangchak Petroleum Plc and the Finance Ministry, which owns 22.08%. The remaining 29% stake is held by Asean members including Brunei, Indonesia, Malaysia, the Philippines and Singapore.
As the Finance Ministry is a major shareholder, the Natural Resources and Environment Ministry is likely to approve the company's use of forest reserve land in Chaiyaphum for mining if investors promise high environmental protection.
"Once this process is done officially,potential investors will jump in to solve the company's financial problem," Mr Suraphong said.
New investors need to invest 1 billion baht and to have mining experience,marketing talent and high technology for potash mining, he said.
The mineral is now trading at $700 per tonne. Thailand's annual consumption of potash is 500,000 tonnes, all of it imported. The country has potash deposits of up to 700 million tonnes, mainly in the northeastern region.
Potash mining would require extra environmental and community health impact assessment reports under Section 67 of the 2007 Constitution. The exact guidelines for industries deemed harmful under Section 67 will be finalised soon.
Meanwhile, the department is also promoting local production of dolomite,an important mineral that reduces soil acidity and raises agricultural yields.
"Current dolomite factories are inefficient, though we have rich reserves.We have spent 2 million baht to improve some factories' facilities and are providing free consultancy to improve production,"said Mr Suraphong.
Rio Tinto suspends china iron ore talks
Rio Tinto has ceased attempts to forge an annual fixed iron ore price with Chinese steel mills, the firm said yesterday, but it denied media reports it was due to the detention of its negotiators in China.
News that negotiations were essentially dead for now was little surprise to analysts given both sides' intransigence,with the world's No.2 iron ore producer sticking with the 33% reduction it agreed with Japanese and South Korean mills in May.
China's industry body dug in its heels for a bigger cut.
But the public acknowledgement of the halt showed Rio was not rushing back to the negotiating table even after spot iron ore prices fell 25% from their 2009 peak, and suggested that there was a growing risk that this year's talks may never formally conclude, a further erosion of the 40-year-old system.
Earlier in the day the Australian Associated Press reported that Rio Tinto's iron ore head, Sam Walsh, had told reporters that the talks had been suspended because of the contentious detention of four Shanghai-based Rio Tinto employees - including lead China negotiator Stern Hu - on allegations of commercial espionage, but a company spokesman denied this.
"Sam Walsh acknowledged there were no talks actively underway at the moment. The benchmark price was set months ago," a Rio Tinto spokesman told Reuters.
"It's got nothing to do with Stern,"he added.
Rio Tinto and fellow Australian iron ore miners BHP Billiton and Fortescue Metals have said mining and shipping of ore to China have not been affected by the detention of the Rio workers, and freight fixtures show that traffic continues apace, despite a brief pause.
Earlier in the day, the Australian Associated Press quoted Walsh as saying after a business function in Perth:"At this point in time we're not negotiating...Remember we have our negotiators detained."
Regardless of the reason, the absence of a price agreement with the Chinese was becoming less relevant as the ore was being "provisionally" priced anyway at the Japanese and South Korean rates,which were agreed for the year to March 31,2010.
"Maybe the year ends without an agreement and the Chinese simply pay the same as the Japanese under the banner of a provisional price, then live to negotiate a fresh contract next year,"said the chief executive of a small-mining company that also sell ore to China and asked not to be named.
Rio Tinto's negotiators were detained and later arrested in an crackdown on speculation in the Chinese iron ore trade,amid concerns that speculators had been ramping up spot prices and undermining the country's steel industry.
Spot prices raced to around $115 a tonne early in August - nearly twice the Japanese and South Korean contract price - but have since tumbled 25% in the past three weeks on signs China's steel demand is weakening.
News that negotiations were essentially dead for now was little surprise to analysts given both sides' intransigence,with the world's No.2 iron ore producer sticking with the 33% reduction it agreed with Japanese and South Korean mills in May.
China's industry body dug in its heels for a bigger cut.
But the public acknowledgement of the halt showed Rio was not rushing back to the negotiating table even after spot iron ore prices fell 25% from their 2009 peak, and suggested that there was a growing risk that this year's talks may never formally conclude, a further erosion of the 40-year-old system.
Earlier in the day the Australian Associated Press reported that Rio Tinto's iron ore head, Sam Walsh, had told reporters that the talks had been suspended because of the contentious detention of four Shanghai-based Rio Tinto employees - including lead China negotiator Stern Hu - on allegations of commercial espionage, but a company spokesman denied this.
"Sam Walsh acknowledged there were no talks actively underway at the moment. The benchmark price was set months ago," a Rio Tinto spokesman told Reuters.
"It's got nothing to do with Stern,"he added.
Rio Tinto and fellow Australian iron ore miners BHP Billiton and Fortescue Metals have said mining and shipping of ore to China have not been affected by the detention of the Rio workers, and freight fixtures show that traffic continues apace, despite a brief pause.
Earlier in the day, the Australian Associated Press quoted Walsh as saying after a business function in Perth:"At this point in time we're not negotiating...Remember we have our negotiators detained."
Regardless of the reason, the absence of a price agreement with the Chinese was becoming less relevant as the ore was being "provisionally" priced anyway at the Japanese and South Korean rates,which were agreed for the year to March 31,2010.
"Maybe the year ends without an agreement and the Chinese simply pay the same as the Japanese under the banner of a provisional price, then live to negotiate a fresh contract next year,"said the chief executive of a small-mining company that also sell ore to China and asked not to be named.
Rio Tinto's negotiators were detained and later arrested in an crackdown on speculation in the Chinese iron ore trade,amid concerns that speculators had been ramping up spot prices and undermining the country's steel industry.
Spot prices raced to around $115 a tonne early in August - nearly twice the Japanese and South Korean contract price - but have since tumbled 25% in the past three weeks on signs China's steel demand is weakening.
Thursday, September 3, 2009
SEC puts three auditors on probation
The Securities and Exchange Commission yesterday sanctioned Kesree Narongdej, the president of the Federation of Accounting Professions, for a questionable audit of Tongkah Harbour Plc (THL).
Also sanctioned were Tipsuda Chumnanvanichkul of KPMG Phoomchai Audit for her audit of Circuit Electronic Industries, and Prawit Wipusirikup of RSM Thailand, for Datamat Plc.
The SEC said the three had been placed on two years' probation. Any future ma-terial errors over the next two years could result in revocation of their rights to audit listed companies.
Prof Kesree, affiliated with AMT Associates, audited THL in 2006, the year the mining company returned to the SET after a trading suspension. THL's 2006 accounts showed a profit of 6.1 million baht, with Prof Kesree offering an unqualified opinion.
But for the first quarter of 2007, THL reported a loss of 29.5 million baht. A SEC investigation found that THL neglected to book certain mining expenses in 2006, which would have reduced profit to 2 million baht. THL also failed to disclose liabilities of 11.6 million baht in 2006 in debt pre-payment fees. The SEC said Prof Kesree neglected to inquire or highlight the transactions as required under accepted accounting principles.
Ms Tipsuda audited CIRKIT for the third quarter of 2004. In response to an SEC query, she said reserves of 924 million baht were sufficient to cover potential losses. CIRKIT later amended its statements and increased provisions by 787 million baht, increasing net losses for the quarter to 809 million from 22 million.
The SEC said Ms Tipsuda failed to seek additional information about the financial position or payment capacity of one of CIRKIT's large debtors before concluding the reserves were sufficient.
For Datamat, the SEC had ordered it to set aside reserves. An amended statement for 2004 showed added reserves of 21.4 million baht, lifting its net loss to 79.9 million baht from 58.5 million.
The SEC said Mr Prawit had failed to gather additional data before concluding additional reserves were unnecessary.
Also sanctioned were Tipsuda Chumnanvanichkul of KPMG Phoomchai Audit for her audit of Circuit Electronic Industries, and Prawit Wipusirikup of RSM Thailand, for Datamat Plc.
The SEC said the three had been placed on two years' probation. Any future ma-terial errors over the next two years could result in revocation of their rights to audit listed companies.
Prof Kesree, affiliated with AMT Associates, audited THL in 2006, the year the mining company returned to the SET after a trading suspension. THL's 2006 accounts showed a profit of 6.1 million baht, with Prof Kesree offering an unqualified opinion.
But for the first quarter of 2007, THL reported a loss of 29.5 million baht. A SEC investigation found that THL neglected to book certain mining expenses in 2006, which would have reduced profit to 2 million baht. THL also failed to disclose liabilities of 11.6 million baht in 2006 in debt pre-payment fees. The SEC said Prof Kesree neglected to inquire or highlight the transactions as required under accepted accounting principles.
Ms Tipsuda audited CIRKIT for the third quarter of 2004. In response to an SEC query, she said reserves of 924 million baht were sufficient to cover potential losses. CIRKIT later amended its statements and increased provisions by 787 million baht, increasing net losses for the quarter to 809 million from 22 million.
The SEC said Ms Tipsuda failed to seek additional information about the financial position or payment capacity of one of CIRKIT's large debtors before concluding the reserves were sufficient.
For Datamat, the SEC had ordered it to set aside reserves. An amended statement for 2004 showed added reserves of 21.4 million baht, lifting its net loss to 79.9 million baht from 58.5 million.
The SEC said Mr Prawit had failed to gather additional data before concluding additional reserves were unnecessary.
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