A long climb out of the coal miners’ slump

Seaborne coal prices are below break-even for many producers, but the bleak outlook may continue. JPMorgan is not expecting a rapid rebound in prices and says a sharp increase in demand is needed to pull coal miners out of the slump.

Ongoing strong supply growth, and weaker demand from China as its economy and steel intensity slow have dragged coking coal – which is used in steel production – toward multi-year lows.

Thermal coal, used in power generation, has been similarly pressured by robust supply and a renewed focus on clean energy alternatives as China battles air pollution.

Clive Palmer’s Mineralogy accused of ‘blackmail’ in mine dispute

The mining company owned by billionaire politician Clive Palmer has been accused of blackmailing and bullying his Chinese investment partners after threatening to suspend operations at a $7 billion Pilbara mine over a disputed sum of less than $300,000, according to the Australian Financial Review.

The allegations, made in the WA Supreme Court yesterday, add to the increasingly bitter feud between Mr Palmer’s Mineralogy and Citic Pacific, operators of the Sino Iron magnetite project southwest of Karratha.

Mineralogy, which holds the tenement rights to the magnetite, sold Citic two billion tonnes of the key steel-making ingredient for $415 million plus royalties in 2006.

The Hong Kong-listed, Chinese state-owned subsidiary subsequently spent $7 billion developing the infrastructure, in a process highlighted by long delays and cost blowouts.

Newcrest's gold trimmings no panacea, say analysts

Analysts have warned that the pending departures of chairman Don Mercer and chief executive Greg Robinson from Newcrest are not a cure-all for the gold producer, according to The Australian.

The departures were announced on Wednesday and followed a series of production downgrades, massive impairment charges on the $10 billion acquisition of the Lihir mine in PNG in 2010 and the group's June continuous disclosure controversy.

The company nevertheless said the departures -- Mercer in December and Robinson in the second half of next year -- simply reflected orderly transition planning.