Copper end use trends

BOSTON (Reuters) - U.S. conglomerate General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) and Abu Dhabi investment agency Mubadala Development Co said on Tuesday they have entered into an $8 billion joint venture with an initial focus on providing commercial finance in the Middle East and Africa.The two companies also plan to work together in the clean energy and water, aviation, and oil and gas sectors, they said."This partnership is consistent with our global growth initiatives and builds on our long-term relationships in a high-growth region like the Middle East," said Jeff Immelt, chief executive of GE, the second-largest U.S. company by market value.The companies said Mubadala "plans over time" to become one of the Fairfield, Connecticut-based company's ten largest shareholders, by acquiring shares in the open market.They also aim to establish a clean energy technology center in Masdar City, a new city in Abu Dhabi that aims to be carbon neutral. GE plans to commit up to $50 million for Masdar's second clean-tech fund.Growth in the Middle East has been a major thrust for GE in recent years. Last year the company generated $5 billion in revenue in the region, up 50 percent from the prior year.

NEC Electronics America Inc. introduced to the Americas twenty-two new 16-bit All Flash microcontrollers (MCUs) for compact, low-power, battery-operated, and sensor-enabled systems. Based on NEC Electronics' high-performance 16-bit 78K0R CPU core, the new 78K0R/Kx3-L MCUs offer very low power consumption to extend battery life, and more on-chip integration to help reduce the size and cost of battery-driven and sensor-enabled systems, such as fire and security alarms, meters, industrial sensors, anti-shake digital cameras, handheld medical diagnostics devices, and data-logging and point-of-sale terminals. In addition to low power consumption, the new lineup offers high-performance on-chip oscillators, built-in circuits for sensor functions, and extended system operating time. "As environmental awareness has grown, energy-saving systems have become particularly reliant on MCU technology," said Jim Trent, Vice President, Multipurpose Microcontroller and Automotive Group, NEC Electronics America. "Over the past several years, NEC Electronics has delivered many ultra-low-power 8- and 32-bit MCUs that have met the demand for energy efficiency. With the introduction of the new 78K0R/Kx3-L devices, however, NEC Electronics is now delivering the benefits of energy efficiency in its 16-bit products."

Applied Nanotech Holdings Inc announced that its subsidiary, Applied Nanotech Inc (ANI), established a strategic development program with Optomec, Inc, a provider of printed electronics for solar, display, electronic packaging and flexible electronics applications. As a part of the commitment, ANI will install a dedicated Optomec M3D aerosol jet printer at its facilities in order to adapt its copper ink to Optomec's patented ultra high resolution printing technology. By utilizing ANI's copper ink, the Optomec printer will offer the solar, display, flexible circuit and PCB manufacturers contact-free deposition of high quality, low cost metal lines, the companies said. According to the companies, the Optomec printing solution is able to produce much finer lines than is currently possible with traditional screen printing and inkjet printing equipment. The combined ANI/Optomec copper ink printing solution will provide an alternative to silver inks facilitating lower cost, coupled with the promise of higher reliability. Furthermore, ANI's copper inks do not require expensive vacuum installation or inert gas environment lowering the cost of the capital for manufacturing equipment.

A strike planned to start on Monday at Southern Copper's Peruvian mine Cuajone has been temporarily suspended pending mediation, officials from the company and union said. Southern, one of the world's largest copper producers, has been hit by strikes this year in Peru as workers demand a larger slice of the country's economic boom. Union leaders had planned to go on strike again because the company had threatened to fire about a dozen workers for participating in recent walkouts. But Roman More, head of the union at Cuajone, said the strike slated for Monday was called off as the company agreed to sit down with workers and the government for talks on Tuesday. Unions from the company's Ilo smelter and Toquepala mine were also expected to participate. "We are going to meet on Tuesday to see if we can reach an agreement about the firings. The meetings were requested by the government," More said. Alberto Giles, the company's human resources director, said the strike plans were scrapped. "In the case of Cuajone ... they suspended the strike plan," he said. "With regards to Ilo, the strike was supposed to start on Wednesday, but I don't think there will be a strike. I think the strike will also be canceled at Ilo." Cuajone, which produced some 148,939 tonnes of copper last year, is Southern's biggest mine in Peru, the world's No. 2 copper producer.

The Yukon Environmental and Socio-Economic Assessment Board (YESAB) has recommended that the controversial Carmacks copper mine project can go ahead, providing that the Western Copper Corporation (TSX: WRN) complies with 148 conditions to mitigate potential adverse impacts. The tiny community of Carmacks with a year-round population of 500 is still considered an important service center for mining and for transportation, a century after it was a popular rest stop for the Yukon gold rush. However, members of the Little Salmon Carmacks First Nation want Western Copper to negotiate a better environmental engineering solution as part of an Impacts Benefits Agreement with the community. Located 38km northwest of the Village of Carmacks and 192 km north of Whitehorse in the Yukon Territory, the Carmacks copper project is planned to be an open-pit operation that will yield about 14,000 tonnes of copper cathode annually. Western Copper has targeted production to begin during the fourth quarter of 2010. Among the comments and concerns raised with the YESAB were routing of mining-related traffic, the heap leach detoxification process, sludge management, heap leach liner performance, and the estimates of closure costs. Among the comments and concerns raised with the YESAB were routing of mining-related traffic, the heap leach detoxification process, sludge management, heap leach liner performance, and the estimates of closure costs. The YESAB Executive Committee said it was satisfied that: Western Copper adequately consulted with the First Nations in whose territory, and the residents of any community in which the project will be located or might have significant or socio-economic effects; The project proponent provided sufficient information in the project proposal to allow for the assessment of potentially significant effects; Significant adverse environmental or socio-economic project and cumulative effects identified within the scope of the scre

African Eagle Resources (AIM: AFE; AltX: AEA) today announced a 20% resource increase at its first copper project, Mkushi in Zambia, that will extend the life of the mine by two years. The project is the company's most advanced project and will generate first revenue for African Eagle over the next three to five years. Mark Parker, managing director of African Eagle, told Mineweb today the Mkushi project's feasibility study was scheduled to be completed by the fourth quarter of this year and the company plans to be in open pit production here by 2010. A full mining licence for the project has also been approved. The project's larger resource of 18.5mt at a grade of 0.83% copper has been upgraded to the indicated category which gives the company and investors greater confidence in it. The bigger resource has extended the life of the mine from six to about eight years, while its profitability level will still be further refined. Parker said the feasibility study has not produced any unwanted surprises at this stage and the company has covered any "unknown unknowns" around the project. Mkushi will produce about 30,000t of contained copper annually once the project is up and running.

Despite a slowdown in the global economy and a softening in demand for aluminium rolled products in some regions, JSE-listed aluminium reroller Hulamin expected global demand to increase this year. CEO Alan Fourie on Tuesday commented that the company, which exported about 70% of its products, had seen some softening in demand for aluminium rolled products in some regions, but added that demand for these products was expected to grow by between 5% and 7% this year. "Obviously the slowdown of the [global] economy puts pressure on margins, it is an economic consequence, but we are still selling into a growing international market," he said. Locally, however, the softening economic climate was expected to impact on sales volumes for the second half of the year. However, Hulamin expected these high-value products to continue growing as a percentage of its sales in the next few years. Fourie noted that five years ago, these products equated to just over 50% of its sales volumes, while their contribution was just below 60% in 2007. They now comprised about 64% of its total sales volumes. Meanwhile, Hulamin stated that its costs had increased by 16%, influenced by a 58% increase in energy costs, increasing alloying costs caused by magnesium prices rising from $2 000/t to $4 500/t, and increases in other metals. Excluding the cost of increasing energy and metals prices, the company's costs had increased by 6%. Fourie noted that while the rising aluminium costs did not affect its profitability, it did have an effect on its working capital. "We hold aluminium in our working capital. So when the aluminium price increases, the cash tied up in working capital increases and we have seen a significant increase in working capital during this period, because the rand price of aluminium has increased by close to 40% in the last six months," he explained. Further, Fourie did not expect the increasing electricity prices to have too great an impact on its futu

Aluminum may have been responding to two different events in the week ending July 11 when it hit a succession of all-time price highs , but the market remains divided over the medium-term direction, given that world fundamentals point to weak demand and rising stock levels. \n\nFundamentally, however, analysts and market players were mixed in their impressions of whether the price could be sustained, especially as word emerged from China that the cuts may not be a certainty. \n\nAluminum finished floor trade for the week at $3,318/mt, up $150 from the July 4 closing price of $3,168. Fundamentally, however, analysts and market players were mixed in their impressions of whether the price could be sustained, especially as word emerged from China that the cuts may not be a certainty. \n\nPointed out a US broker, "When you hear producers [in China] are shutting production because demand is weak, that's normally bearish," yet the market saw "insane" price moves. "I hear metal just continues to pour into warehouses, and not all of it reported, obviously, [since] otherwise you'd see it in the stock numbers. A lot is going off warrant," he pointed out. \n\n\n

Steel prices are expected to reach £1000 a tonne by the end of the year, according to a survey carried out by the Federation of Environmental Trade Associations among a hundred member companies of the Association of Ductwork Contractors & Allied Services - a rise of 50% in just 12 months. The survey also found that while prices had risen by about 20% since December, they were expected to soar by over 30% in the following six months. There is also no sign of when the upward trend will peak. Paul Roxburgh of ADCAS, says, 'This is a problem that affects the whole industry, and one that requires a collective response. 'We will be working with our colleagues in the contracting sector to make sure that there's a realistic approach to increased costs - particularly in the context of long-term fixed-price contracts.' ADCAS is also to boost its efforts to boost efficiency, such as encouraging the use of only standard sizes for spiral ductwork and components.

As China's economic lifeline, the iron and steel industry used to be a black smoke maker and blue-sky killer in the eyes of many people. In 2007, SO2 emissions by China's large and medium-sized steel and iron enterprises were estimated at 756,368 tons, down 0.51 percent year-on-year. And the discharge of industrial coal ash was 382,275 tons with a 2.79 percent decline. Otherwise, soot discharges increased 3.02 percent, totaling 156,648 tons. The Long March of environmental protection and energy efficiency for China's steel and iron enterprises is still challenging, though many in the iron and steel industry have launched a green revolution in order to improve their old image. Wuhan Iron and Steel (Group) Corp (WISCO) is one such environmental protection warrior. As China's thrid largest steel and iron manufacturer, WISCO used to be a major polluter in Wuhan, capital of Hubei province. Many residents complained and criticized the firm, joking that sparrows would turn black after flying over WISCO's mills.

Suspected Communist rebels attacked Xstrata Plc's $3 billion Tampakan mine in the Philippines, which may be Southeast Asia's largest untapped copper deposit, according to the military and project partner Indophil Resources NL. The group burned a drill rig and police are investigating, the Melbourne-based company said today in a statement to the Australian stock exchange. No one was injured in the assault, which took place around midnight on July 20, according to the statement, which did not identify the attackers. The rebels, probably from the New People's Army, ``tried to extort money from the owners of the mine, but they declined to pay the so-called revolutionary tax,'' Armand Rico, a military spokesman, said today by phone from Davao City. Insurgent attacks may undermine the Philippines' drive to develop the nation's mining industry to exploit gold, copper and nickel. Indophil, which also reported an attack on Jan. 1, is the subject of takeover bids from Xstrata Plc, which owns 62.5 percent of the mine, and a rival management group.

ArcelorMittal (NYSE: MT), a steel manufacturer based in New Deli, launched a clean technology venture capital fund to support ventures that have relevance for the carbon-intensive steel industry. The Fund has made its first investment of US$20 million in Miasolé, a California-based pioneer in the development of thin-film solar panels Miasolé has developed unique high volume manufacturing processes that enable efficient production of Copper Indium Gallium Selenium (CIGS) solar products on a flexible stainless steel substrate. This technology promises to dramatically lowers the installed cost of Photovoltaic (PV) systems and will enable renewable energy from the sun to replace carbon generating fossil fuels. Fund managers will be working with leading venture capital firms, including Bessemer Venture Partners, Khosla Ventures, and Kleiner Perkins Caufield & Byers, to identify worthy cleantech ventures. ArcelorMittal also announced that it has created a new carbon fund in order to strategically engage in the carbon market and promote climate friendly solutions that are relevant for the steel industry. The fund, which has an initial investment commitment of €100 million (US$ 157 million) is currently looking at investment opportunities in renewable energy, energy efficiency, methane capture and greenhouse gas reducing technologies--all of which have the potential to generate carbon credits under the Kyoto Protocol. ArcelorMittal intends to use the carbon credits received from these Clean Development Mechanism and Joint Implementation projects for compliance in the EU Emissions Trading Scheme.

The world's first commercial-scale tidal power turbine has delivered electricity into the British grid for the first time in preparation for full-scale operation, Marine Current Turbines announced yesterday. "SeaGen is the world's first commercial-scale tidal stream generating system by a large margin. It is more than four times as powerful as the world's second most powerful tidal current system, which is our own 300kW SeaFlow, installed off Lynmouth on the north Devon coast more than five years ago." Secretary of State for Energy, John Hutton said: "This kind of world first technology and innovation is key to helping the UK reduce its dependency on fossil fuels and secure its future energy supplies" Marine Current Turbines' next project, announced in February 2008, is a joint initiative with npower renewables to take forward a 10.5MW project using several SeaGen devices off the coast of Anglesey, north Wales. It is hoped the tidal farm will be commissioned in 2011 or 2012. The company is also investigating the potential for tidal energy schemes in other parts of the UK, and in North America.

It was reported that high metal prices and inflation at 12% in India will slow copper demand in domestic construction and electrical appliance sectors. However, Indian Copper Development Centre said as the country has ordered all equipment for its power projects, copper demand from the power sector will remain strong. Copper consumption is forecast to grow 8% this year and will reach 1.5Mt of copper in 2012. A similar trend is expected for the country's aluminium demand growth.

Mongolia's political parties are locked in post-election squabbling, but once the dust settles a new government could finally pass deals to tap the coal, copper and uranium that sit beneath its vast deserts and grasslands. But analysts say the deal that goes ahead would be less than ideal for either Mongolia or foreign investors, with the country better served by taxing its mineral wealth, rather than seeking direct government ownership in massive mines. The current law gives the state either a 34% stake or a controlling 51 percent stake in mining projects. An investment agreement with Ivanhoe Mines and Rio Tinto for the Oyu Tolgoi project, still under negotiation, would be the first such deal.

There is no consensus among the analysts on Inmet Mining Corp.'s (IEMMF.PK) C$345-million hostile bid to take out its junior partner Petaquilla Copper Ltd. (PTQLF.PK). On the positive side, Raymond James analyst Tom Meyer wrote that by moving its stake in the Petaquilla copper project from 48% to 74%, Inmet would gain "important strategic flexibility" and lower the risk profile on the project. If Petaquilla Copper was bought out, Inmet and Teck Cominco Ltd. (TCK) would be the sole remaining partners and the legal action between Petaquilla Copper and Teck would presumably end. In a note, Mr. Meyer wrote: With two shareholders in the project as opposed to three, we believe it is safe to say that rational decision-making may likely become less of a bottleneck and the project can move forward at a faster rate. He added that by going to a 74% interest, Inmet could be in a position to potentially buy Teck Cominco's stake as well. Analyst Greg Barnes from TD Newcrest presents the negative view. He wrote that the economics of the Petaquilla project are "marginal" and figures that it would need a long-term copper price above $2.25 a pound for it to work. He also noted a "lack of clarity" on how Inmet could optimize value from the project. He wrote: Until Inmet is able to verify improved project parameters, we feel that the company is overpaying for a project that has less than compelling economics. Over at UBS Securities, analyst Onno Rutten's opinion is a little more mixed. He thinks that Inmet's C$2.00-a-share offer for Petaquilla Copper is "a steep premium," but would accelerate the project's development if it is successful. That could unlock value for Inmet. However, Mr. Rutten shares Mr. Barnes' concerns about the risks of the project; he pointed out that Inmet, a C$3-billion company, is trying to build a project that costs close to C$4-billion. He also said that Petaquilla needs strong copper prices to be economic. But he wrote that the financi

Mitsubishi Electric Metecs plans to set up a joint venture in Suzhou, China with Denkishizai and Nippon Steel Trading. The joint venture will produce copper alloy strips which will then be supplied to Japanese and Taiwanese electronic parts makers in China. The estimated production is around 150t/m to 160t/m. Mitsubishi Electric Metecs will hold 75% of the new company, which Denkishizai will hold 20% and Nippon Steel will hold 5%. Previously Mitsubishi Electric Metecs set up another JV in China in 2004 with Denkishizai in Guangzhou. The Guangzhou JV now produces some 150t/m to 160t/m of copper alloy products.