GLOBAL METALS & MINERALS BRIEFS

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Researched by Industrial Info Resources (Sugar Land, Texas)--

Global Shortfall to Cause Rise in Nickel Prices

Japan's Sumitomo Metals estimates that the global nickel supply will show a shortfall of 40,000 tons, causing the nickel price to rebound in the second half of the year. In the past month, the London Metal Exchange price for nickel has been remained between $19,000 and $20,000 per ton. Because of slack Chinese demand, stainless steel prices have shown little movement.

Aquarius Platinum to Appeal Against Mines Inspector Safety Directive

Aquarius Platinum (ASX:AQP) (Perth, Australia), the world's fourth-largest platinum producer, plans to formally appeal against a directive from the South African inspector of mines to reduce bord widths in their mines from 10 meters to six meters. The directive also stated that extraction rations should be limited to 75%, prominent geological features should be supported by pillars, boxing of roadways must be in one direction, and orientation of leads and lags between headings must be aligned for effective ventilation. This directive is aimed at preventing rockfalls and rockbursts in metalliferous mines and follows a fall-of-ground accident at the Marikana mine in which five miners were killed. Aquarius said that an international mining consultant retained the company agreed that the directive would not make a safer mining environment in relation to this type of accident. Some Anglo Platinum (Johannesburg, South Africa) (JSE:AMS) mines could also be affected.

Forte Energy Builds Major African Uranium Resource Base

Forte Energy NL (ASX:FTE) (Perth, Australia) has declared a maiden Joint Ore Reserves Committee (Jorc)-compliant resource of 1.33 million tons for the Bir En Nar uranium project in Mauritania, in northwest Africa. The project contains an estimated 2.06 million pounds of uranium oxide, with 1.07 million pounds in the indicated category and 0.99 million pounds in the inferred category. This is the company's first Jorc resource in the country and added to its initial resource inventory of 17.7 million tons, with 11.6 million pounds of contained uranium oxide at Firawa in Guinea. Other mineralized zones are indicated near the Bir EN Nar high grade deposit and further drilling campaigns will be conducted to build up the company's Mauritania portfolio.

China Finessing on Rare Earth Metals Supply

Chinese Premier Wen Jiabao told a German trade delegation that China will not block exports of rare earth metals. He said that minerals should be exported at reasonable prices and volumes and that foreign firms would be given the same treatment as Chinese firms if they manufacture in China. German companies are concerned about losing ground to Chinese manufacturers as they move up the value chain. China sources about 90% of the world's reserves of rare earth minerals, which have prime end uses in electronics, digital displays and military applications. Earlier in July it was reported that the central government planned to fix monthly prices for rare earth metals in the five provinces that hold the majority of known Chinese deposits. Chinese planners say that export controls will prevent wasteful exploitation, support volatile international prices and encourage high-tech manufacturers to shift operations to China where rare earth prices are cheaper.

China Becomes Top Consumer of Tungsten, Molybdenum, Vanadium

China is now the largest consumer of tungsten, molybdenum and vanadium. In 2009, China produced 50,000 tons of tungsten (80% of the global total); 73,000 tons molybdenum concentrates ore (38.5% of the global total); and 30,000 tons of vanadium (32% of the global total). China levies a tariff of between 10% and 15% on moly-chemicals exports. In 2009, China saw a minimum increase of 25,000 tons in ammonium paratungstate (APT). In 2010, APT will reach more than 130,000 tons of production capacity, up 8.3%.

Siberia's Zinc Field Secures $1 Billion Development Funding

The Ozernoye zinc field in eastern Siberia is estimated to hold 8.16 million tons of zinc, 1.6 million tons of lead, and 4,500 tons of silver. The area is the world's sixth-largest zinc deposit. In 2009, Russian investment house Metropol began extracting ore from the field and is now securing $1 billion in loans from state bank VEB to further develop the field. Metroplol is discussing the sale of a stake in the project to Metallurgical Corporation of China Limited (HKG:1618) (Beijing, China), China National Machinery Import & Export Corporation (Beijing) and Sumitomo Corporation (TYO:8053) (Tokyo, Japan). The production capacity target is 312,000 tons of zinc per year, with product shipped to China, South Korea, Japan and Russia's Chelyabinsk zinc plant.

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