EuroTire.net

Global mining industry ‘back to boom’ – PwC

Wed, 31 Dec 1969 19:33:30 Eastern Standard Time

By: Loni Prinsloo

With commodity prices and mining revenues returning to record 2007 levels, the global mining industry has essentially returned "back to the boom", a PricewaterhouseCoopers (PwC) executive said on Tuesday, highlighting that growth was largely driven by demand from the Asian powerhouse, China.

Speaking at the release of PwC\'s seventh mining survey ‘Mine - Back to the Boom\' in Johannesburg, PwC mining director Hein Boegman said that the global mining industry should prepare itself for a "water-shed moment" where China would pass North America as the industry\'s largest customer in the "very near" future.

China is predicting an 8% growth for the year, on the back of the economic slump, and Boegman said that it appeared that the Asian country would be a driving force behind the global mining sector, with India, Brazil and Russia following its lead.

China has the world\'s largest population, with more than 1,2-billion people who are rapidly urbanising.

"To accommodate the rapid development of the country\'s economy and infrastructure, as well as several political promises that have to be kept by the Chinese government, the country will have to continue showing growth of between 8% and 10% and buying commodities by the heaps to support growth," said PwC\'s outgoing mining director Hugh Cameron.

"The way that the pricing of iron-ore and copper is currently being determined comes mostly from a big pushback of Chinese buyers, and it seems that the final word on pricing has not yet been spoken," he added.

Boegman noted that South Africa "luckily" had some of the world\'s best iron-ore, copper, and other resources and that it would be able to supply China with quality resources going forward, but cautioned that it had to stay competitive.

He pointed out that one of the main concerns for South African miners was growing costs.

"South Africa\'s mining industry is very labour intensive and it has to constantly deal with wage concerns. In addition, our mines are super-deep and about 50% of fixed costs goes just into cooling these mines. This means that Eskom\'s electricity tariff hikes will put further pressure on the country\'s operating costs."

To read the balance of this article please go to: http://www.miningweekly.com/print-version/global-mining-industry-back-to-boom-pwc-2010-05-25

Bridgestone Sees 15 pct Fall in 2009 Profit-Nikkei

Wed, 31 Dec 1969 19:33:29 Eastern Standard Time

Bridgestone Corp (5108.T), Japan\'s biggest tire maker, expects its operating profit to fall 15 percent to about 100 billion yen ($1.07 billion) in calendar 2009, the Nikkei financial daily reported. Bridgestone said on Dec. 22 that it expected to report a 2008 operating profit of 118 billion yen, down from 249.96 billion in 2007, as automakers cut back on production.

Michelin Reports Cutbacks at Most Global Facilities

Wed, 31 Dec 1969 19:33:29 Eastern Standard Time

November, reports Groupe Michelin, was a month in which month-on-month demand for tires declined sharply in all European, North and South American and Asian markets.
In response to this phenomenon, the company has, it says, “cut back significantly” on operations in most of it global facilities.

Michelin North America (Canada) Announces Price Increase on Commercial Truck Tires

Wed, 31 Dec 1969 19:33:29 Eastern Standard Time

For the first time in three years, Michelin North America (Canada) will increases prices by up to 5 per cent on Michelin® truck tires and by up to 6 per cent on BFGoodrich® commercial truck replacement tires sold in Canada. This price increase will be effective on all shipments scheduled on or after Feb. 1, 2009.

Goodyear Shareholders to Get 80-100% Compensation - Miller to Take up LatAm Assignment