Helix signs copper MoU with Mitsubishi

ASX-listed Helix Resources has signed a A$19.5-million memorandum of understanding (MoU) with Mitsubishi Materials Corporation (MMC) to explore the Joshua copper project, in Chile. Under the terms of the MoU, MMC would fund some A$4.5-million of exploration activities to advance the Joshua project over the next 18 months, earning an initial 20% interest in a joint venture (JV) with Helix. MMC would then have the right to contribute a further A$15-million in funding to earn a 50% interest in the JV, by conducting a 30 000 m drilling programme to define a Joint Ore Reserves Committee-compliant resource, as well as certain prefeasibility studies on infrastructure, mining and processing, environmental reviews and a detailed financial analysis. If MMC elected not to fund the A$15-million, the JV partners would jointly fund or introduce a third party to advance the Joshua project. “The Joshua copper project has significant potential and we welcome MMC's support to create value,” said Helix chairperson Greg Wheeler. “This deal illustrates the unrecognized value in our material asset portfolio and we will continue to seek industry partners to advance and monetise this value.” Following 18 months of activity at the Joshua operation, Helix has identified five priority targets.

  Copper Futures Drop as Scrap Demand Ebbs, China Concerns Mount

Copper fell, capping the biggest weekly drop in three months, as signs of slowing scrap-metal purchases and bank lending in China fueled concern that demand will weaken as the global economy sputters. Scrap discounts to new metal widened 25 percent in the past three months as demand slumped in China, the world's biggest user, according to Metalsco Inc., a St. Louis-based recycler. In China, banks extended 623.2 billion yuan ($99.5 billion) of loans last month, below the 700 billion yuan median estimate of analysts in a Bloomberg survey. In September, copper rose the most since January as central banks expanded stimulus measures.
“There's not much evidence that the demand side of the equation is really as good as prices have suggested,” Bill O'Neill, a partner at Logic Advisors in Upper Saddle River, Jersey, said in a telephone interview. “Scrap is a very good leading indicator of copper prices, and when we see weakening in scrap, it's a signal that demand isn't particularly strong.” Copper futures for December delivery slid 1.3 percent to close at $3.703 a pound at 1:20 p.m. on the Comex in New York. The price fell 2 percent this week, the most since July 6.
The International Monetary Fund reduced its estimates for Chinese growth in 2012 and 2013 and also cut projections for worldwide expansion. No. 2 scrap, a benchmark product, is trading almost 40 cents below Comex futures, Bret Tauben, a trader and part owner at Metalsco, said in a telephone interview. That compares with a discount near 30 cents in the third quarter, he said. Buying interest from China has been weak, he said. Copper production will exceed demand by 293,000 metric tons next year, compared with a deficit of 102,000 tons this year, Credit Suisse has estimated. Fourteen analysts surveyed by Bloomberg said they expect the metal to drop next week, seven were bullish, and 10 were neutral. On the London Metal Exchange, copper for delivery in three months fell 1.3 percent to $8,130 a ton ($3.69 a pound). Zinc, nickel, aluminum lead and tin also dropped.

  Global Lead & Zinc Demand Expected to Rise

Global demand for refined lead metal is expected to rise by 3.4% to 10.80 million tonnes in 2012 and a further 3.3% in 2013 to 11.15 million tonnes. Expected rises in refined lead metal output of 2.9% in 2012 to 10.90 million tonnes and 3.8% in 2013 to 11.32 million tonnes have been influenced by the opening of both new capacity and the reopening of capacity placed on care and maintenance in recent years. The global refined lead metal market will remain in oversupply both this year and next; the extent of the oversupply in 2012 is forecast at 108kt and in 2013 at 174kt. World demand for refined zinc metal will see a decline by 0.3% to 12.71 million tonnes in 2012 followed by a 3.8% increase to 13.19 million tonnes in 2013. World refined zinc metal output is forecast to fall by 2% to 12.86 million tonnes and then to rise by 4.8% to 13.48 million tonnes in 2013. with regard to zinc metal balance, a surplus of 135kt is forecast this year with a more significant excess of 293kt anticipated in 2013.

  China aluminium stockpiles double on high output, slow demand

Commercial stocks of primary aluminium in China have doubled this year after consumption slowed while production stayed strong in the world's top consumer and producer of the metal, sources at smelters, analysts and traders said. Commercial stocks of primary aluminium ingots at warehouses in the four major industrial cities of Hangzhou, Nanhai, Shanghai and Wuxi reached 996,000 tonnes on Thursday, up about 550,000 tonnes from the end of last year, and the highest level since July 2010, said Zhang Chenguang, an analyst at Shanghai-based information provider SMM. They could rise further, he added.
The stocks included metal at Shanghai Futures Exchange warehouses. Aluminium stockpiles at warehouses monitored by the exchange stood at 434,363 tonnes last week, the highest since January 2011 AL-STX-SGH. "Total stocks should be between 1.1 million and 1.2 million tonnes in China," a trade manager at a large smelter said of commercial stocks, including inventories at smelters. "Stocks were built because the growth of local production has been much faster than the consumption rise." Consumption in China has slowed this year as an economic slowdown at home and overseas hit activity, though demand inched up in September after aluminium profile manufacturers received more orders for their product, used in the housing sector.
"Demand has not changed much from September. We have seen a slight recovery on demand from the property market," said an executive at an aluminium products maker in the southern province of Guangdong. He said many exporters of semi-finished and finished aluminium products had received fewer orders in the Canton Trade Fair in early October, which could cut their exports by about 30 percent through March 2013, from the same period a year ago. SMM's Zhang expects China's aluminium consumption to grow 7 to 8 percent this year, from more than 12 percent last year. China's economy grew an annual 7.4 percent in the third quarter, marking the first miss of the official target since 6.5 percent growth in the first quarter of 2009, and leaving the economy on course for its slowest full year of growth since 1999.

  Hindustan Copper signs MoU for speedy clearances

Hindustan Copper Ltd has signed a Memorandum of Understanding with a Madhya Pradesh government undertaking to obtain requisite clearances for its proposed investment of Rs 1856 crore in the state. The MoU was signed between K.D. Diwan, HCL Chairman-cum-Managing Director and Arun Kumar Bhatt, Managing Director, MP Trade & Investment Facilitation Corporation Ltd (TRIFAC), at a recent global investor summit in Indore. HCL plans to build a five million tonne capacity underground mine beneath its present opencast mine at Malanjkhand, by 2017-18. The MoU would enable HCL to obtain necessary clearances, concessions and waivers for the Malanjkhand project from the State Government, according to a HCL release. The government would have the right to terminate the MoU, if HCL does not initiate work on the project in six months.

  Alcircle participates in ALUMINIUM 2012

AlCircle.com participated in ALUMINIUM 2012 Trade Fair & Conference, held at MesseDusseldorf, Germany from 09 October to 11 October 2012 as a media partner and exhibitor. The exhibition unites producers, processors, technology suppliers and consumers along the entire value chain of the industry. This year, it drew over 21,300 visitor and 961 Exhibitors from all over the world.
The exhibition marked the launch of commercial operation for AlCircle by opening up advertisement space sale and 'Corporate Page' booking. As a leading global aluminium industry portal and a visible promotional platform, alcircle.com successfully presented its immense potential to the participants of this prestigious industry event.

Pan Pacific to Offer 15% Cut in Copper Premium for China

Pan Pacific Copper Co., Japan's largest producer, offered a 15 percent cut in next year's premium for refined metal supplied to clients in China and Taiwan, said two executives with knowledge of the pricing.
The Tokyo-based company is proposing to reduce the fee to $85 a metric ton over the price of metal for immediate delivery on the London Metal Exchange, said the executives, who asked not to be identified because the information isn't public.
Pan Pacific's offers for 2013 came before Codelco, the world's largest copper producer, sets its annual sales premiums for buyers in Europe, South Korea and China. Premiums of copper cathode sales decline when the market sees more supply. The premium includes shipping and insurance costs.
“The decline is largely within our expectation as supply will exceed demand next year,” said Syusaku Nishikawa, an analyst at Daiwa Securities Co. “Concern about Europe's debt crisis and China's slowing growth has dimmed the global demand outlook.”
Australia & New Zealand Banking Group Ltd. expects Codelco's annual premiums for Europe to decline to around $85 and $87 a ton in 2013 from $90 a ton this year, the bank said Oct. 1. Codelco was offering Chinese buyers a $5 cut on 2013 annual premiums to around $105 a ton, ANZ said. Pan Pacific's negotiations for annual supply contracts with customers in China and Taiwan have been delayed this year following recent tension over disputed islands known as Senkaku in Japan and Diaoyu in China, the executives said. The company is a venture between JX Nippon Mining & Metals Corp. and Mitsui Mining & Smelting Co.

  HANNOVER Milano Fairs India comes 1st time to North India

For the first time in Greater Noida, HANNOVER MILANO FAIRS INDIA PVT. LTD., is all set to hold 5 concurrent and Industrial Trade Fairs in the city from 21st to 24th November, 2012. With Over 400 participating companies from across the globe, the industry will witness to more than 4000 products on display along with the latest technologies The events are the most sought after Business-to-Business events covering the manufacturing, automation, materials handling, surface technology and laser technology industries.
The shows will also host the premium edition of the International Purchase Managers' Summit – India 2012. Apart from the exhibitions, 8 Seminars and conferences will be the highlights of the shows. The industry forums viz. MDA Forum on Hydraulics and Pneumatics, Laser Forum – Use of Laser in Manufacturing, Automation Seminar, and Conference on Materials Handing, Warehousing and Storage Systems would be held concurrently.
A special live demonstration of Training on Use and Maintenance of Forklifts will be one of the special attractions for the visitors.
Ms. Tessa Marheineke Director, Global Fairs, Hannover Fairs International said, 'Global mega trends such as dwindling resources, sustainability, mobility and urbanization are forcing industry to embrace change and invest for the future.
In 2013 our line-up of leading trade fairs will focus on recent developments in each of the featured sectors. The shows in India are one of the best recognized venues for our shows globally.”