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NEWS-LEADING DEVELOPMENTS expects to conclude additional sales over the course of the quarter. Copper production increased 29% from the third quarter of 2011 to a record 99,000 mt in the third quarter, which reflects investments Teck has made at the Antamina, Carmen de Andacollo and Highland Valley Copper Operations. With the increase in copper production in the third quarter total cash costs, before by-product credits declined by 6%, and cash costs net of by-product credits, declined by 5% from the second quarter of 2012 to US$1.69/lb. Approximately $1.5 billion of ex- pected capital spending is being deferred from the original 2012 and 2013 capital budgets, which includes: reduced capital spending for Quebrada Blanca Phase 2 and Quintette due to permitting delays for each project; a delay in the Relincho project as a result of external factors related to power and port facilities; a delay in the develop- ment of Fort Hills as its partner updates the design basis for the project; and a deferral of the construction of the Number 4 slag fuming furnace at Teck's Trail Operations. World Gold Council Publishes Conflict-Free Gold Standard The World Gold Council (WGC) pub- lished its Conflict-Free Gold Standard in mid-October 2012 as an industry-led approach to combat the potential misuse of mined gold to fund unlawful armed conflict. WGC developed the standard with its member companies, comprising the world's leading gold mining compa- nies, and with extensive input from gov- ernments, civil society and supply chain participants. The standard, said WGC, is designed to allow gold miners to "assess their operations and provide assurance that they do not cause, support, or benefit unlawful armed conflict, nor contribute to serious human rights abuses or breaches of international humanitarian law. It is designed to increase trust and transparency in the gold supply chain. It provides further confidence that respon- sibly undertaken, gold mining is an important source of social and econom- ic development." Pierre Lassonde, chairman of Franco- Nevada and the WGC board member responsible for leading the development www.e-mj.com of the Standard, said, "I'm proud to have led the work to design the Conflict-Free Gold Standard. The supply chain for gold is highly complex, and this Standardrep- resents a major step towards eradicating gold that fuels conflict from the legiti- mate supply chain. "It is essential that we combat any misuse of gold by militias and criminal networks. This has been the driving force behind the development of this Standard, which will apply to conflict- affected areas globally. "I am particularly pleased by the extent to which we have been able to work with governments and civil society, as well as industry partners, in devising a framework that commands wide support and credibility." Ian Telfer, chairman of the WGC and of Goldcorp, said, "Responsible gold mining is an important contributor to both economic growth and social devel- opment in gold-producing countries. We believe that, where it is responsibly undertaken, gold mining and its related activities can play a crucial role in achieving sustainable development and alleviating poverty, as well as contribut- ing to sustained economic growth." Companies will be required to pub- licly report on their conformance with the standard, and external assurance will be required on this disclosure. South African Miners Sign Wage Agreement The Chamber of Mines, representing AngloGold Ashanti, Gold Fields and Harmony, on October 25, 2012, negoti- ated an agreement between mining house and striking South African miners that allowed most of them to return to work. Unfortunately, another flare up occurred at Anglo American Platinum's (Amplats) Rustenburg operation prevent- ing those miners from returning to work. The Chamber of Mines together with the NUM, Solidarity and UASA, have signed an agreement to give effect to clause 11 of the 2011- 2013 Chamber Gold Wage Agreement. The agreement provides that: • Category 3 employees will all be placed in the higher Category 4, which will now be the entry level for the companies; • The salaries of the Category 4 to 8 em- ployees will be raised by between 1.5% and 2%; • A new operator level for Loader, Loco- motive, Winch and Water Jet Operators will be created within Category 4 and their basic rates will be adjusted by be- tween R250 and R400 per month; and • The Rock Drill Operators will either have their basic rates adjusted by R500 or will receive an allowance of R400. All of these adjustments are in addi- tion to the salary increases that took effect July 1, 2012, and which ranged from 8.5% to 10%. "Stability in the gold mining industry has been achieved at many of the opera- tions and there are hopes that this trend will continue. The safe resumption of normal mining operations is now the top priority," said Dr. Elize Strydom, senior executive of employment relations at the Chamber of Mines. She also indicated that "the unpro- tected industrial action has had a nega- tive impact on the gold mining industry, the country's economy, and on the employees themselves who have forfeited millions of Rands in lost earnings." While many miners have returned to work, the news for Amplats is not so good. The company recently reported it had entered into discussions with its "recog- nized unions" (NUM, NUMSA, UASA) to explore options to facilitate the return to work of the Union and Amandelbult mine employees who are engaged in illegal strike action. The status of the 12,000 dismissed Rustenburg employees also formed part of the discussions. At a meeting held October 26, all par- ties expressed commitment for a return to work. The company made an offer to facilitate a return to work of all striking employees by no later than October 30, 2012. The offer included the reinstate- ment of the dismissed Rustenburg employees. Employees could return to work on the same terms and conditions of employment as applied before the ille- gal industrial action commenced and would receive a final written disciplinary warning. On October, 30, however, protesters set fire to a power station at the Rustenburg operations and blocked entrances. Police fired tear gas and rub- ber bullets at about 1,000 protesters. Amplats is the last major mining compa- ny unable to bring production on line due to labor unrest. NOVEMBER 2012 • E&MJ; 5