Bolivia global warming summit: a lifeline for “Mother Earth”?
Changing the world is no doubt a daunting task but that’s what leftist Bolivian president Evo Morales and thousands of environmental activists, representatives of grassroots groups, and the envoys of some 90 governments are striving to do this week in the small village of Tiquipaya, in central Bolivia.
The World People’s Conference on Climate Change and the Rights of Mother Earth started on Monday with a speech by Morales that was radical because it called for a new economic system, but was also peppered with some other surprises. Morales, an Aymara Indian who herded llamas as a boy and never finished secondary school, said that eating chicken fed with hormones causes “sexual deviation” in men and that European men lose their hair because they eat GM food.
Overall, Morales’ speech was meant to stir dissent against capitalism. He said that consumerist lifestyle and global warming were cause and effect, and that the only way to stop temperatures from rising is to implement a economic model that he calls “vivir bien” or “to live well” – a political philosophy that draws from ancient indigenous traditions. “Humanity is at a crossroads and must choose whether to continue the path of capitalism and death or take the path of harmony with nature,” he said before a crowd of people in a soccer stadium under a blazing sun that left many – including this correspondent – wishing they had put on sun block. His message has struck a chord in thousands of people worried about global warming, who have travelled from all corners of the world to discuss a solution to what Morales likes to call “the climate crisis”. Bolivia has been among the most vocal opponents of the Copenhagen Accord, the non-binding deal from a summit in December backed by about 120 government and meant to keep any rise in temperatures below 2.0 degrees Celsius above pre-industrial times.
The mood of the summit is chill, with people dancing to traditional music in the streets around the conference buildings, posing for pictures with llamas or eating free meals provided by organizers. The meeting has been dubbed the Woodstock of climate summits because people are allowed in for free, and because there are ad-hoc music concerts, theater, artists painting murals and Indians peddling handcrafts or organic products. “They are taking into consideration the ancestral traditions of indigenous peoples, that is a very positive thing … but this could end being a sing-along, something folkloric,” said Kanasami Gutierrez, a 45-year-old Bolivian. Many participants told me they feel upbeat about the summit because by speaking up they feel they are now part of a solution, rather than part of the problem. “World leaders should listen the people’s voice, and not the voice of the capital. We hope this will be the space to consolidate a large alliance of social groups from all over the world,” said Itelvina Masioli, from Brazil, and a member of Via Campesina, a global farmers’ network. Others fear that the summit could issue a package of resolutions that will be unfeasible and tainted with radical leftist rhetoric, and therefore will not be taking seriously by global leaders in a U.N. meeting scheduled for late this year in Mexico. Author Naomi Klein told Reuters that the most important thing that will come out of the meeting is the “revitalization of the environmental movement, of the climate justice movement.” “The way climate change is discussed in the north is as if it’s something that is going to maybe happen in the future, it’s just hypothetical, all about grandchildren, not about the children that are living today. So it’s important… for people in the north to hear directly from countries like Bolivia that are living climate change now,” she said.
(Pictures: top - Ecuadorian indigenous men attend the World People’s Conference on Climate Change and the Rights of Mother Earth. Centre right: Bolivia’s President Evo Morales speaks during the conference. Both pictures David Mercado/Reuters)
Protest against Sumitomo Bolivia mine worsening
LA PAZ, April 16 (Reuters) – Bolivian peasants on Friday stepped up their protest against the San Cristobal mine owned by Japan’s Sumitomo Corp <8053.T>, overturning containers full of mineral ore and saying they would keep blocking a key railway line until their demands are met.
Protesters on Monday began the blockade of the rail line, which allows the huge San Cristobal silver-lead-zinc mine to export ore to foreign markets via neighboring Chile.
“Our demands are fair and must be met. The mine is ransacking our natural resources. We want compensation for the damage and … we want help with our development,” protest leader Mario Mamani told local radio network Erbol.
He said protesters had seized control of 80 loaded containers of ore, overturned several of them, and stormed a small San Cristobal office near the border with Chile.
“Every five hours we’ll spill the contents of another container,” said Mamani.
In a press statement sent on Friday afternoon, San Cristobal, which is fully-owned by Sumitomo, said the protest about 60 miles (100 km) east of the mine is hurting its “economic and productive activities.”
The statement said the spilling of ore from containers will mean “big losses” for the company and that protesters are also blocking a road in the area, which is disrupting transportation of supplies to and from the mine.
CRU/CESCO-Copper miners wary of looming cost run-ups
SANTIAGO, April 9 (Reuters) – The world’s top copper miners were ebullient this year as the price of the bellwether metal has soared in recent months, but many fear that the rising cost of energy, personnel and equipment could begin to eat into profits, as new projects are brought online.
The price of the metal used in construction and power hit $8,010 a tonne earlier this week in London, its highest since August 2008 and less than a $1,000 shy of its all-time high of $8,940 struck in July 2008.
The strong copper price, driven by surging Chinese demand, has led miners to push forward on copper development projects that were mothballed during the global economic downturn.
But some experts at this year’s CRU/CESCO Copper Conference fear that current capital expenditure estimates for new projects are not fully reflective of the rising cost environment that mining companies face.
“I think we are really at the earliest stages of cost escalation,” said Bob Prieto, senior vice president of engineering of construction company Fluor Corp <FLR.N>.
“If you look at the inputs used for building out new projects. There are basically three: labor costs, fuel costs and steel costs … You have different trends running in all three right now, but all the trends are upwards,” said Prieto.
Also, recent jumps in the price of iron ore and metallurgical coal are poised to increase the price of steel — a key component of a mining company’s cost at the mine construction phase.
Copper miners wary of looming cost run-ups
SANTIAGO, April 8 (Reuters) – The world’s top copper miners are ebullient this year as the price of the bellwether metal has soared in recent months, but many fear that the rising cost of energy, personnel and equipment could begin to eat into profits, as new projects are brought online.
The price of the metal used in construction and power hit $8,010 a tonne earlier this week, its highest since August 2008 and less than a $1,000 shy of its all-time high of $8,940 struck in July 2008.
The strong copper price, driven by surging Chinese demand, has led miners to push forward on copper development projects that were mothballed during the global economic downturn.
But some experts at this year’s Cesco/CRU copper conference fear that current capital expenditure estimates for new projects are not fully reflective of the rising cost environment that mining companies face.
“I think we are really at the earliest stages of cost escalation,” said Bob Prieto, senior vice president of engineering and construction company Fluor Corp <FLR.N>.
“If you look at the inputs used for building out new projects, there are basically three: labor costs, fuel costs and steel costs … You have different trends running in all three right now, but all the trends are upwards,” said Prieto.
Also, recent jumps in the price of iron ore and metallurgical coal are poised to increase the price of steel – a key component of a mining company’s cost at the mine construction phase.
CRU/CESCO-Equinox upbeat on Zambia mine, eyes Uranium plant
SANTIAGO, April 8 (Reuters) – Equinox Minerals Ltd plans to expand its Lumwana copper mine in Zambia and is in talks with possible partners that will allow it to build a $200 million uranium plant on the site, the company’s CEO Craig Williams told Reuters on Thursday.
Australian miner, Equinox <EQN.TO> < EQN.AX>, is currently ramping up output at Lumwana, one of the largest open pit copper mines in Africa.
“We have doubled our exploration budget this year to $10 million on the mining license… really what we’ve got on our license is the makings of a copper province, there is lots of opportunity there,” Williams said in an interview on the sidelines of the CRU/CESCO copper conference in Santiago.
He said the company is looking to produce “up to 150,000 to 170,000 tonnes of copper, and over time we have a Phase II expansion plan … that will push up production to over 200,000 tonnes of copper in the next three to five years.”
Equinox on Wednesday reported a 37 percent jump in output at Lumwana to 30,471 tonnes of copper concentrate in the first quarter, and said the improved output indicated it could meet its full-year 2010 guidance of 135,000 tonnes of copper versus 109,413 tonnes in 2009. [ID:nLDE6361XT]
“At the moment we are a one-mine company … the financial strength of the company is expanding very rapidly and I think it’s appropriate now to be looking around for some geographical diversification. I’d like within a few years to have a second operation somewhere,” Williams said.
He also said Equinox is in talks with off takers, or potential long-term buyers, to build a $200 million uranium plant in Zambia.
CRU/CESCO-Chile debating royalty rise, to honor deals
SANTIAGO, April 5 (Reuters) – Chile’s mining minister on Monday reiterated his pledge to respect existing contracts as the world’s biggest copper producer considers increasing royalties in order to fund post-quake reconstruction.
In an effort to allay fears among miners who worried that a rise in the 5 percent royalty rate could erode profits in an industry still leery of making new investments, Mining Minister Laurence Golborne told Reuters the contracts were inviolate, but avoided any detailed comments on the subject.
“Any solution that we envision in this regard will take into consideration these contracts and the country will obviously respect all the agreements that we have,” Golborne told Reuters ahead of the CRU/Cesco copper conference in Santiago.
He declined further comment on the royalties issue or when the government might make a final decision. It is reported to be considering a rise to 8 percent.
While Chile is considering a number of measures to help finance the multibillion-dollar reconstruction effort following February’s massive 8.8-magnitude quake, many executives say privately they believe it is unlikely to risk investor ire or trigger contractual disputes by raising the royalty rate.
Golborne said the government would consult with private investors before taking any decision that could affect the mining sector.
Chile extracts around 30 percent of the copper mined in the world, and its investment policies can have a material impact on the supply outlook for a market still straining to meet rapidly rising Chinese demand.
Bolivia, China team up on communications satellite
LA PAZ (Reuters) – Leftist Bolivian President Evo Morales signed an agreement on Thursday that paves the way for the acquisition of a $300 million Chinese telecommunications satellite, the latest sign of deepening ties between the resource rich Andean country and commodity-hungry China.
The Morales government announced earlier this week that China will provide Bolivia with a $67 million loan to build infrastructure in the mineral-rich Oruro region and transportation equipment worth $2.6 million to the Bolivian armed forces.
Other recent deals have included a $60 million loan from China late last year, part of which will be used to purchase natural gas drilling rigs. Bolivia has also announced plans to buy six Chinese light military aircraft worth $58 million to fight cocaine traffickers.
“Now the President, the Vice President and the Finance Minister have to guarantee the funds, so that we can sign a contract and … in three years, as the technicians are saying, we’ll launch the Tupac Katari satellite,” Morales said after signing the deal in La Paz.
The satellite, which will be named after an Indian who led an uprising against the Spanish conquistadors in the 18th century, will improve Internet access and communications in remote rural areas, Morales said.
Public Works Minister Walter Delgadillo said the accord signed on Thursday lays out the technical details of the project and the next step is to secure financing from China.
The Bolivian government is negotiating a loan with China for 85 percent of the value of the satellite.
Blackouts could hurt Chile’s copper output
SANTIAGO (Reuters) – Power distribution problems after a devastating earthquake in Chile could cut copper output more than 25 percent in the world’s top producer of the red metal, creating supply fears and lifting global copper prices.
The earthquake and ensuing tsunamis on Feb 27 killed hundreds of people, mangled roads and knocked down buildings in a pile of wreckage that could take years to rebuild.
The 8.8-magnitude tremor spared northern Chile, where most of the country’s copper is mined. But mining operations halted briefly near the epicenter for top producer Codelco as well as for Anglo American <AAL.L> and Antofagasta <ANTO.L>.
Another blackout on Sunday fueled fears of repeated disruptions at mines that produce some 1.5 million tones of copper per year or about 10 percent of global output.
Most mines in Chile have emergency power generators that help keep output at lower levels when energy falters. But repeated outages could damage equipment and trim output targets, experts say.
Shaky energy supplies could also slow recovery of two top oil refineries shut down after being damaged by the quake. Wood pulp output also is down sharply in one of the world’s top producers of the raw material used to make paper.
“Alongside a strong improving demand picture, these kinds of production problems definitely do add a bit of extra support,” said Kevin Norrish, an analyst with Barclays Capital.
Bolivia, Argentina near natgas exports agreement
LA PAZ, Feb 22 (Reuters) – Bolivia and Argentina are likely to sign by March a contract amendment that will extend the deadline for the Andean country to boost natural gas exports to its wealthier neighbor, Bolivian Vice President Alvaro Garcia Linera said on Monday.
Bolivia agreed in late 2006 to nearly quadruple exports of natural gas to Argentina from the current maximum of 7.7 million cubic meters a day but, according to local media and analysts, the two countries have been negotiating an amendment to the deal for some months.
“Our goal is to sign (the amendment) before the end of March with the presence of both presidents. There is agreement on the central points, but the technical details are still pending,” Garcia Linera told a press conference in the southern city of Tarija after meeting with Argentine Planning Minister Julio de Vido.
Garcia Linera said the new deal calls for a gradual increase of Bolivian natural gas exports to Argentina to 16 million cubic meters in 2013 and to a maximum of 27 million cubic meters a day by 2017.
The initial agreement called for Bolivia to send up to 27.7 million cubic meters to Argentina by 2014.
Bolivia plans to boost exports to Argentina mainly by tapping its Margarita field, which is run by Spain’s Repsol <REP.MC>, Garcia Linera said.
For that, the two countries need to build a cross-border pipeline of roughly 50 miles (80 km), de Vido told reporters.
Known lithium deposits can cover electric car boom
MEXICO CITY/LA PAZ (Reuters) – Hopes of an electric car boom are spurring companies to seek new lithium sources, but new finds may be lower quality and costlier to develop than established deposits able to meet demand for years to come.
Lithium is a key component in rechargeable batteries that power laptop computers, digital cameras and cell phones. Demand for the silver-white metal is expected to surge if carmakers start producing electric or hybrid vehicles on a large scale.
Excitement is brewing about new projects in Bolivia — which could hold the world’s largest lithium bounty — and in Mexico, where a small company says it has a site with up to 800,000 tonnes of the highly reactive and versatile metal.
But all lithium deposits are not created equal and experts say the new finds may be poor quality or expensive to extract.
Some companies are choosing to play it safe with leading lithium suppliers and start-ups in Argentina and Chile, the source of over half of the world’s lithium output.
A sister company to Toyota Motor Corp agreed with Australia’s Orocobre Ltd in January to jointly develop a $80-$100 million lithium project at Argentina’s Olaroz salt lake, for example.
“It seems generally accepted that reserves and resources will be adequate, but it’s easy for junior exploration companies to raise money on the strength of the lithium buzz,” Keith Evans, one of the world’s leading lithium experts, said.
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