South America has enjoyed robust economic growth in recent years, in part driven by rising global prices for commodities such as oil. Yet energy shortfalls loom on the horizon, both in electricity generation and oil and gas production. Meanwhile, greater state intervention in the energy industry threatens oil and gas production levels in Bolivia and Venezuela, where decisions often stem from political rather than economic considerations. The region’s governments also show little interest in cooperating on energy policy. Though analysts point to some instances in which economic pragmatism trumps politics, South America appears largely resistant to integrating its energy markets. Experts say this lack of cooperation could hinder regional economic growth.
Archive for June, 2008
Energy in South America
June 27, 2008Light at the end of the tunnel in Ecuador
June 27, 2008These are the key points of the Mining Mandate
· “Revocation of exploration and mining concessions where investment has not been made as of December 31, 2007; environmental impact studies are not current; royalties and taxes are unpaid; mining concessions are within protected natural areas, forests and protective buffer zones; of those affecting source of water. All revocations are without any financial compensation.”
· Revocation of mining concessions where greater than three have been granted to a single entity or affiliated parties.
· Immediately suspend all metallic mining activities on concessions that remain until the adoption of a new legal framework to regulate the activity. Single concession metallic operations are excluded from the moratorium.
· “Small-scale, artisanal and subsistence mining activities are not suspended as long as they are not within protected natural areas, forests and protective buffer zones, or those affecting sources of water.”
· Commits to complete the new Mining Law within 180 days of the enactment of the proposal or by October 15, 2008.
· Creates a national mining company under the auspices of the Ministry of Mines and Petroleum.
Century old Mexican mine shuts down due to blackmail
June 27, 2008Sterling Mining decided to shut down one of its mines in Mexico due to a blackmail situation they were experiencing. This resulted in the loss of 105 job posts and 5 scholarships for locals.
It is terrible to read about how a century-old business can be brought down due to blackmail and immoral conduct on the part of a few.
Foreign investment and miners welcome in China!
June 19, 2008Despite the media bashing, mining and exploration companies say they consider China a terrific place in which to do business.
Author: Dorothy Kosich
Posted: Wednesday , 18 Jun 2008
SAN FRANCISCO -
In spite of negative stories by the New York Times and other east coast news media, mining company executives, investors and analysts Tuesday insisted that China is, indeed, a good place for miners and explorationists to do business.
In presentations to the Denver Gold Group’s Asia Pacific Gold Forum in San Francisco, a number of junior explorers/producers had high praise for Chinese officials in their willingness to accommodate and facilitate foreign mining investment and development in China.
Copper, platinum and gold prices on the rise
June 19, 2008Labor strike in Peru contributes to the increase in copper prices. Over the past 3 months, the price of copper increased to reach $8.240. Full story
At the same time, Platinum and Gold rise due to South African situation and oil prices, respectively. Full story
Workers’ strike in Peru affects copper production
June 19, 2008LIMA, June 18 (Reuters) – A labor strike is severely cutting output at Southern Copper’s (SPC.LM: Quote, Profile, Research, Stock Buzz) (PCU.N: Quote, Profile, Research, Stock Buzz) Cuajone mine in Peru, a company officer said on Wednesday, as the union said it would extend the walkout to demand better benefits.
The strike started on Tuesday at the mine of Southern Copper, Peru’s biggest copper producer. Cuajone, located in Moquegua province, churned out 148,936 tonnes of the red metal last year. It came as there was another strike going on at a Peruvian mine of Freeport-McMoRan (FCX.N: Quote, Profile, Research, Stock Buzz).
“We have some minimal labor help, but this (strike) is greatly affecting production,” Alberto Giles, the company’s chief of human resources, told Reuters.
He said the company has asked the government of Peru, the world’s second-largest copper producer, to declare the strike illegal and prod workers to return to work.
Rio Tinto invests in infrastructure
June 19, 2008Rio Tinto announced an increase in its investment earmarked for insfrastructure.
Ecuador’s draft of new mining law coming soon
June 12, 2008At last, the Minister of Energy and Mines, Galo Chiriboga announced that the draft of the law will be released on June 27th. This draft will give a better picture of what lies ahead for mining companies already vested in Ecuador. Interestingly enough, most large-scale mining companies doing business in Ecuador do so thanks to foreign investors, mainly from U.S. and Canada, who put their money down based on Ecuador’s 1991 investor-friendly mining law.
