Glencore
The logo of Glencore is pictured in front of the company's headquarters in the Swiss town of Baar, November 13, 2012. Commodities trader Glencore is set to all but clinch its $30 billion takeover of Xstrata this week, despite a potential snub for the miner's board if, as expected, investors scrap a controversial pay plan for its managers. Shareholders in both Glencore and Xstrata, the world's fourth-largest diversified miner, will vote in Switzerland on Tuesday. Picture taken November 13, 2012. Reuters/Michael Buholzer

The eight-week high of mining companies has halted as Glencore stocks declined for two consecutive days. The plunge in China’s imports turned out to be larger than previously assessed, and the drop highlighted the economic slowdown of the world’s foremost commodities consumer.

Even after the mining giant put up two copper mines in Australia and Chile for sale on Monday, stocks still fell 2.6 percent by market close in London. Glencore joined the biggest decliners in the 13-member FTSE 350 Mining Index, which slipped 1.2 percent. Anglo American Plc fell 1.8 percent, while BHP Billiton Ltd. declined 1.3 percent, Bloomberg reported.

Revival still dependent on China

Just last week, Glencore led one of the biggest rallies in metals when it revealed its plan of reducing zinc production by a third. However, Goldman Sachs Group was among the naysayers that believed the gains would be short-lived. As improvement is still largely dependent on the Chinese economy, its shift away from a metals-intensive, investment-led growth model will be a challenge to floundering mining players.

“China is the central issue,” according to David Lilley, co-founder of Red Kite which oversees US$2 billion metal hedge funds, said in an interview with Bloomberg. “However, it is noteworthy that the current conditions in the copper market are actually considerably better than most market commentary. Demand has been disappointing, but supply has also been worse than expected.”

Debt-free expanding miners

Mining mammoths are under pressure yet again, especially Glencore, given its struggles to cope with its colossal debts. On the other hand, there are other mining entities, such as Amur Minerals Corporation (London AIM: AMC), that remain debt free.

Amur Minerals remains investor attractive, as its Kun-Manie nickel copper sulphide project continues to bear significant results exceeding expectations. The company’s profitability increased further as a “ Detailed Exploration and Production Licence” on the Kun-Manie project was awarded in May. By that time, Amur Minerals was all ready to conduct a 2015 field season, with supplies to conduct up to 6,000 meters of drilling.

The company recently published its debt-free status on its Interim Results 2015, dated September 29. The report detailed that Amur currently holds a US$8.3 million [AU$11.3 million] cash reserve and a profit amounting to US$2.9 million [AU$3.9 million], with the operating loss deducted already.

Positive outlook for Amur

“The first half of 2015 saw the achievement of a major milestone for Amur with the award of the Production Licence. We thank the shareholders for their continued support and perseverance,” Amur Minerals CEO Robin Young stated.

“There remains a substantial amount of work as we continue to advance Kun-Manie from exploration to pre production, but with Russia’s commitment to the development of the Far East and the dedication of our own staff, we have great opportunity to progress from a pure explorer to become a nickel sector player.”

The remainder of 2015 will see the completion of the infill drilling program and metallurgical test work results leading to further exploration of the economic and production potential of Amur Minerals’ Kun-Manie asset.

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