The 8 US Big Mining Corps, which generated at least $100 mil of Pretax Income in the most recent quarter, registered a substantial 28% drop in their Total Pretax Income in the 4Q 2011, as compared with the 4Q 2010.
Below here are the Pretax Incomes (PTI) of these 8 US Big Mining Corps in the 4Q 2011, along with a comparison with the prior year’s 4Q of 2010:
....................................................4Q.........4Q.....Increase...
..................................................2011......2010....(Decrease)...
...................................................PTI.......PTI....Amount.....%
..................................................(in millions of dollars).........
Freeport McMoran(1)...............1,253....2,986...(1,733)...-58%
Newmont Mining(2)..................1,036....1,112........(76)....-7%
Southern Copper..........................851......806.........45.......6%
Peabody Energy(3)......................376......279.........97.....35%
CliffsNaturalResources(4)............353......392........(39)...-10%
CONSOL Energy...........................238......138........100.....72%
MDU Resources...........................111.......134........(23)...-17%
Walter Energy.............................109.......141........(32)...-23%
Total all 8................................4,327....5,988...(1,661)...-28%
(1) Freeport McMoran Copper & Gold 2011 PTI was negatively impacted by Labor and Pipeline Disruptions at its Indonesia Operations.
(2) Newmont Mining 2011 PTI excludes a huge Write Down of Property, Plant and Equipment and Mine Development.
(3) Peabody Energy 2011 PTI excludes Transaction-related Acquisition Costs and Gains on Asset Dispositions.
(4) Cliffs Natural Resources 2011 PTI excludes Goodwill Impairment Charge.
Clearly, Freeport McMoran Copper & Gold was the main driver of this substantial drop in 4Q 2011 earnings in this industry.
Let me quote from Freeport McMoran's 4Q 2011 earnings release related to its PT Freeport Indonesia labor problems, and their resolution.
"In December 2011, PT Freeport Indonesia reached an agreement with union officials to end the three month strike that commenced on September 15, 2011. Pursuant to the terms, PT Freeport Indonesia agreed to increase base wages by 24 percent in the first year and by 13 percent in the second year (equivalent to a 40 percent increase over two-years on a compounded basis). PT Freeport Indonesia also paid a bonus equivalent to three months of base wages and agreed to provide other benefits, including enhancements to housing allowances, educational assistance and retirement savings plans. The parties also agreed that future wage negotiations would be based on living costs and the competitiveness of wages within Indonesia."
While it's certainly good to see this labor settlement, I think the extent of the increases in employee wages and benefits, show that the 1% economic stranglehold on the 99% isn't just happening in the US.....it's clearly a global problem.
