Newmont May Start Cutting Indonesian Copper Output from June

Newmont Mining Corp will start cutting back production at its Batu Hijau copper and gold mine in Indonesia from around June 1, the U.S. miner said in a statement on Wednesday, if talks with the government remain unresolved over export taxes.

Indonesia in January levied an escalating tax on copper concentrate exports, but both Newmont and rival copper miner Freeport-McMoRan Copper & Gold Inc - who together account for 97 percent of Indonesia's copper output - said the rule conflicts with contracts they signed with Indonesia that exempt them from new taxes and duties.

"Batu Hijau's copper concentrate storage facilities will reach capacity in late May, requiring an orderly ramp down of operations," the firm said in its statement.

"Once the mine's copper concentrate storage is filled, PTNNT (PT Newmont Nusa Tenggara) will move to cease mining and milling."

Before the new export rules, Newmont forecast copper concentrate output for 2014 at 110,000-125,000 tonnes.

Newmont usually supplies around 30 percent of its Indonesian output to the country's only copper smelter, PT Smelting at Gresik.

Copper May be The Best among Base Metals in Near Term: Morgan Stanley

 Copper may be the base metal with the most near-term upside potential, said Morgan Stanley.

According to Morgan Stanley, the complex drifted lower throughout the (last) week on speculative liquidation, but copper held better, particularly at week's end.

"We think the market may be feeling more comfortable with respect to Chinese demand prospects in 2Q vs. 1Q. We think copper possesses the best near-term outlook, as supply appears tight at a time of seasonal demand strength," the firm added.

CMST Says Consortiums Stockpile Nickel in China

An official from China Material Storage and Transportation Co. (CMST) which runs the country’s largest warehouse for nickel said that consortiums are stockpiling the metal, National Business Daily reported today. 

The unnamed CMST official said at a seminar that stockpiling activities by those consortiums were the major reason behind surging nickel prices , the report said. Daily outbound delivery of nickel from its warehouse hit an all-time high of 12,000 tonnes in March, one fifth of the company’s inventory, the official said. 

Nickel prices are expected to continue consolidating at the current 120,000-130,000 yuan ($19,485-21,108) per tonne level, and may hit 180,000 yuan per tonne once breaking the upper band, he added.  

Pennsylvania Zinc Plant Ends Operations; More than 500 Jobs Affected

Horsehead Holding Corp. has announced closure of its Zinc facility in Monaca, Pennsylvania. The shutdown of Monaca plant is part of Horsehead's strategic transition to its newly built Mooresboro, North Carolina facility.

According to reports, the company's decision will affect over 500 full time and contract employees at the site. Around 40 staff is being retained to carry out the final closure procedures. The number of employees would be further down sized by end-May when the demolition activities are expected to begin.

The zinc oxide and high purity zinc metal refinery operation at the Monaca facility had ceased operation on December 23, 2013. Horsehead also had entered into an agreement with Shell Chemical LP towards demolition and other related activities at Shell's expense. As per newspaper reports, Shell plans to convert the site into a hydrocarbon cracking plant.

Horsehead Holding Corp. is the parent company of Horsehead Corporation, a leading U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust. Horsehead's products include zinc oxide (used in the agricultural, chemical, and pharmaceutical industries), zinc dust (used in corrosion-resistant coatings), and nickel-based metals (used as a feedstock to produce stainless and specialty steels).

China Sends Oil Rig To Disputed Waters

Over the weekend of May 3 and 4, China sent an oil rig into disputed waters of the South China Sea to begin oil exploration. The rig is near the Paracel Islands, inside the 200-mile exclusive economic zone of Vietnam, which angrily protested the decision. The Vietnamese government insists that the waters, as well as the oil and gas reserves held beneath, belong to Vietnam.

• VIETNAM CANNOT ACCEPT AND STRONGLY OPPOSES CHINA RIG PLACEMENT

Where boundaries are drawn in the South China Sea has long been a source of regional tension, but China has escalated the conflict by moving to drill the first well inside disputed territory. China said the oil rig would be operating from now until August 15.

Some observers see the move as a careful calculation by Beijing, which believes Vietnam won’t be willing to risk war over Chinese drilling. “It's going to be one more of these small, incremental steps that individually won't lead to conflict, but collectively, over time, gradually will change the status quo,” said Admiral Mike McDevitt U.S. Navy (Ret.), according to Foreign Policy.

For its part, Vietnam is demanding that China cease drilling operations. “All foreign activities in Vietnam's seas without Vietnam's permission are illegal and invalid,” Vietnam’s Foreign Ministry said in a statement. “Vietnam resolutely protests them.”

The move may also be a response to U.S. President Barack Obama’s recent trip to Southeast Asia, which included a deal with the Philippines to allow for a greater American troop presence in the region. The U.S. and the Philippines kicked off a two-week long military exercise on May 5.

The U.S. Energy Information Administration estimates that the South China Sea holds 11 billion barrels of oil and 190 trillion cubic feet of natural gas, most of which is located in disputed territory. China believes the oil and gas reserves could be much larger.

The question now becomes, after his recent Asia trip, is this another red line being crossed for President Obama?

Submitted by James Burgess via OilPrice.com

China Credit Trust Terminates $23-mln Product for Nonggeshan Pb & Zn Project

China Credit Trust Co. in March terminated its product for Nonggeshan Pb&Zn project, valued at 140 million yuan ($23 million), ahead of the due date at the end of May, DZHnews.com reported today.

The termination, which would be considered as China’s first trust product default, was due to inflated evaluation, production halts at the mines and risky usurious loans involved, the report said. China Credit Trust issued the product in August 2011 to acquire a 99% stake in Sichuan Nonggeshan Polymetallic Mining Co. and to develop the Nonggeshan Pb & Zn project, it said. 

In an annual report on the nation's financial stability in late April, the People's Bank of China said some high-risk investment products should be allowed to fail ``natually'' and investors cannot assume a cast-iron guarantee.

Another Example :-

Technical Trading: Gold Bulls Power Through Trendline Resistance

Gold bulls are powering the market higher early Monday, following Friday's large range bullish outside day. The yellow metal has smashed through declining bear trendline resistance and has climbed back above the 20-day moving average. The short-term technical bias is improving.

Taking a look at the daily chart, seen in Figure 1 below, Monday's early gains demonstrate follow-through and confirmation to Friday's bullish outside day (that forms when a market exceeds the previous day's high and low and closes higher on the day). The action marks the $1,272 level as strong nearby support.

On the upside, gold bulls pierced the April 28 minor swing high at $1,306.60—seen at Point A. That zone now becomes short-term support and must hold to keep the near term technical bias positive.

Another bullish technical factor is the market's push above the declining bear trendline drawn off the March 17 and April 14 daily highs, seen in red on Figure 1 below. Sustained gains above that declining trendline will target a quick test of the April 14 daily high at $1,331.40 —seen at Point B. Beyond there, an additional bullish objective lies at $1,360.20, the March 19 daily high and the bottom of an old gap on the chart.

Daily momentum is improving as well, with the relative strength index pointing higher.

Bottom line? The technical picture is turning positive. A myriad of short-term signals are turning bullish. But, the burden remains on the bulls to defend initial support at $1,306.60. If that holds looks for a test of $1,331.40 as soon as this week.

Orignal Post :- Kitco By Kira Brecht