Wednesday, December 14, 2016

1) MSG Secretariat Inaugural Meeting

2) Copper supply from top mine threatened as export ban looms

1) MSG Secretariat Inaugural Meeting
December 14 11:00 2016

The Melanesian Spearhead Group representatives and senior Police officers will today begin thorough discussions on Police and Security issues at Tanoa International Hotel in Nadi.
The inaugural two days meeting will be chaired by Solomon Islands. The Fiji Police Force will also be making presentations on various progress reports.
The Minister for Defence and National Security, Ratu Inoke Kubuabola last night welcomed the ministers and Police officers through a traditional welcome ceremony at the hotel.
The ceremony was followed by a cocktail.
Ratu Inoke said the meeting was a result of the decision taken by the MSG leaders earlier in July during a meeting.
“We have MSG Police officers from Papua New Guinea, Vanuatu and Solomon Islands and we look forward to the meeting which is hosted by Fiji but chaired by Solomon Islands.”
Meanwhile the chairperson of the MSG Secretariat Meeting and representative from Solomon Islands, Peter Agovaka, said one of the major discussions at the meeting will be in regards to the plans for putting up a regional Police academy.
“This was an idea that came about when Ratu Inoke and I were Foreign Ministers, and now that we look after the interest of Police and Security, we have put it forward to MSG to consider,” Mr Agovaka said.
He said it would be the topic of debate and discussion. But with the regional Police academy, our Police officers will train, share information and resources.
“In our respective countries so Police in the Melanesian regions are working together to make sure that our people are safe,” Mr Agovaka added.
The meeting will follow up on the progress report on the Police and security issues particularly the outcome of the sixth Police Commissioner Conference which was held in Suva in April.
Edited by Maraia Vula


2) Copper supply from top mine threatened as export ban looms
WEDNESDAY , DECEMBER 14, 2016 - 7:20 AM

c) 2016, Bloomberg.
Exports from the world’s second-largest copper mine in Indonesia are under threat as a government ban on overseas concentrate shipments is scheduled to come into force from the middle of January.
While ministers are rushing to revise the regulations so miners that have committed to build smelters can continue to export ore concentrates, an intermediate product used to make copper, there’s no guarantee that the deadline will be met. The rules as they stand now only permit shipments of refined metal after Jan. 11.
Richard Adkerson, chief executive officer of Freeport-McMoRan Inc., the world’s biggest publicly traded copper miner and owner of the massive Grasberg mine in Papua province, says he’s confident the issue will be resolved. He told a conference in the U.S. last week that without a resolution the company would have to cut back operations and potentially curb development of the underground mine where it’s spending $1 billion a year. CRU Group, a consultancy, says the regulations will be changed.
“CRU’s view is that the rules will be revised and Freeport McMoRan will be able to continue to export Grasberg concentrates,” Christine Meilton, principal consultant, copper supply and raw materials, said by e-mail from London. “This may not happen before Jan. 11, when the current export licence is also due to expire, in which case we may see a disruption to exports. Our base case forecast assumes that any disruption does not continue long enough to result in a cutback in production.”
Grasberg is the world’s largest mine in terms of copper capacity after Escondida in Chile, according to the International Copper Study Group, while Freeport says the deposit has the single biggest reserves of gold. Any disruption could support prices of copper, which is the best performer among its peers this quarter, as banks from Goldman Sachs Group Inc. to Citigroup Inc. take a bullish view on the metal next year.
Indonesia, Southeast Asia’s largest economy, prohibited exports of raw, unprocessed ores in January 2014 as it sought to build a processing industry and prevent its mineral wealth from disappearing overseas. While the rules allowed time for producers to build smelters, the government said that after three years shipments of semi-processed ores would no longer be permitted.
Progress building plants has been slow because of problems with investment, power supplies and falling prices for metals, which in January hit the lowest since 2009. Luhut Panjaitan, the co-ordinating minister of maritime affairs, said last month the government is expediting a revision to the law to allow semi-processed exports as long as miners are constructing smelters.
The outlook has been muddied by uncertainty over the role to be played by parliament. The head of a commission which overseas energy and mineral resources policy said in October parliament would only have time to consider a revision to the law next year. The government has said the changes could be made by revisions to regulations rather than to the law itself.
“It’s all still in discussion,” said Bambang Gatot Ariyono, director general of minerals and coal at the Energy & Mineral Resources Ministry. “We are still looking at things from all sides,” he told reporters in Jakarta on Friday.
Whatever the process, this is an important moment for Freeport in Indonesia. The regulation as it stands prohibits the export of concentrates, Adkerson told the conference last week. “If that’s not resolved, that will have a significant impact on us in terms of our employment there, our investments that we’re making,” he said, according to a Bloomberg transcript.
It’s not just a question of concentrate exports. Freeport is also seeking clarity on the conditions that will permit it to operate in the country beyond 2021 when the 30-year term on its contract expires. Then, there is also a requirement for the company to build a new smelter so it can continue to export concentrate under government rules.
“Building a copper smelter in Indonesia is hugely uneconomic because of the excess of smelters globally,” Adkerson said last week. “We’ll arrange project financing. We’ll bring in partners. The world will have a new smelter and we’ll do that. But we can’t start spending money on it until we get a contract extension. It’s a four-year or probably five-year construction project.”
All this is at a time when Freeport is aggressively selling assets to reduce debt, which stood at $19 billion at end-September, and after its credit ratings were cut to junk earlier this year. It’s involved in a tussle over the sale of a copper mine in the Democratic Republic of Congo and is battling bondholder objections to the sale of its Gulf of Mexico assets. Cowen Group Inc., an investment firm, rates the producer as its top metals and mining pick for 2017.
Freeport has forecast sales from Grasberg next year will be 1.45 billion pounds of copper and 2.75 million ounces of gold.
--With assistance from Yoga Rusmana

No comments:

Post a Comment