Twitter

Year: 2012

NEWS RELEASE: Equity financing and market cap decline by more than 40% for TSX-V mining sector: PwC

Juniors rethink growth strategy, while latest market activities hint at potential turnaround in 2013

Click here for: Junior Mine 2012: Must survive before you can thrive

TORONTO, Nov. 5, 2012 /CNW/ – With the Top 100 junior mines on the TSX Venture Exchange (TSX-V) facing decreases in debt and equity financing, as well as market capitalization, miners must either reduce spending substantially or turn to alternative forms of financing for growth, according to PwC’s latest Junior Mine report released today.

The market capitalization of 2012’s Top 100 decreased 43% compared to 2011’s Top 100. As well, the number of mining companies in the Top 100 with market capitalization of more than $200 million dropped to 13 – falling from 2011’s record high of 36 companies. Meanwhile, equity financing decreased by 41% to $1.6 billion compared to $2.7 billion raised by 2011’s Top 100 junior miners.

“In the last year, investors were cautious of the volatile market and not willing to invest. The macro-economic pull-back is driving investors to hold on to or cash-in their investments, leaving junior miners urgently looking for new sources of financing,” says John Gravelle, Mining Leader for the Americas, PwC. “While a dramatic turnaround is not expected anytime soon, recent market activities should give junior miners a resurgence of optimism for 2013.”

With the IPO market falling silent for most of 2012 – only four mining IPOs on the TSX-V were completed in Q3 2012, compared to 14 in Q3 2011—Ivanplats’ $300 million IPO however could signal the new beginning for mining executives looking to initiate IPOs that have been waiting in queue for some time now, continues Gravelle.

Read more

Two unions seek federal court muscle to oust foreign workers from B.C. mine – by Dene Moore (Vancouver Sun – November 5, 2012)

http://www.vancouversun.com/index.html

The Canadian Press – VANCOUVER – Two labour unions want a federal court to overturn temporary work permits issued to Chinese workers at a coal mine in northern British Columbia, arguing that there are unemployed Canadians who could fill the jobs.

Permits have been granted under the federal Temporary Foreign Worker Program to 200 Chinese workers to conduct exploration work at HD Mining International Ltd.’s Murray River mine near Tumbler Ridge, B.C.

The company has said it was not able to find workers in Canada with the specialized skills necessary. But the court action filed by the International Union of Operating Engineers Local 115 and the Construction and Specialized Workers Union Local 1611 maintains that is not the case.

“There is no evidence of a labour shortage nor is there an absence of suitable Canadian citizens or permanent residents for the jobs,” said the application.

It says HD Mining received 300 applications to work at the underground coal mine “despite the fact that HD Mining did not advertise widely and imposed unreasonable and unnecessary requirements on Canadian applicants.”

Read more

Glimmers of hope for junior miners after slow-moving investment nightmare – by Peter Koven (National Post – November 5, 2012)

The National Post is Canada’s second largest national paper.

The carnage in the junior mining world is every bit as bad as advertised, but there are a few glimmers of hope. That is the main message from a review of the sector released Monday by PricewaterhouseCoopers LLC (PwC). The study, conducted annually, chronicles the dramatic ups and downs of the top 100 companies on the TSX Venture Exchange.

Given the lack of financing available to most of these firms, it goes without saying that the past 18 months have been a slow-motion nightmare. According to PwC, the total market cap of 2012’s Top 100 plunged 43% compared with 2011 (as of June 30 in each case). Only 13 of them had market values above $200-million this year, compared with 36 a year ago.

As economic uncertainty increased last year, investors became more risk-averse and demand for junior mining equities evaporated. That made it extremely tough for these companies to stay active. Equity financing among the Top 100 dropped 41% to $1.6-billion year over year, and the smaller exploration plays barely raised anything.

Senior and mid-tier miners have focused on cash conservation and shown little interest in acquiring them. “The pure exploration companies are at a stage where they need to hunker down and make sure they don’t run out of cash before they turn around,” John Gravelle, PwC’s mining leader for the Americas, said in an interview.

Read more

Mining magnate emerges as major U. of Utah donor – by Brian Maffly (The Salt Lake Tribune – November 5, 2012)

http://www.sltrib.com/

Pierre Lassonde » After a career that included environmental and stockholder controversies, the Canadian gold guru is expanding entrepreneurship efforts at the U.

At his inauguration last month, new University of Utah president David Pershing highlighted gifts from the Huntsman and Noorda families, who have long-standing ties to the state. Other donor names familiar to Utahns — Eccles, Marriott, Sorenson, Skaggs and others — are emblazoned on buildings and programs throughout campus.

But it’s Canadian mining-magnate-turned-philanthropist Pierre Lassonde, far less known and with a more distant connection to Utah, who is now emerging as one of the U.’s most generous donors.

Pershing devoted the most literal “face time” to images of Lassonde during his inaugural address, hailing his “unbelievable commitment” to turning students into entrepreneurs. His latest gift will fund the proposed Lassonde Institute, which would provide housing for up to 400 students interested in adding entrepreneurship to their majors, whether or not they are focused on business.

After earning a master’s in business administration at the U. 30 years ago, Lassonde became an astute gold analyst and investor.

Read more

The invisible gold rush – by Sean Phipps (The McGill Daily – November 5, 2012)

http://www.mcgilldaily.com/

Sean Phipps is a U2 Latin American Studies and Environment student. He can be reached at sean.phipps@mail.mcgill.ca.

Canadian imperialism and the gold mining boom

As I write this the price of gold is $1,776.80 an ounce, the highest it’s ever been, up from $1,023.50 in 2008 and $282.40 in 1999. Global economic instability has fueled this dramatic spike, and along with it a massive increase in gold production, an expansion that some have termed “an invisible gold rush.”

In Canada we – or at least some of us – directly benefit from this expansion. 75 per cent of the world’s mining companies (in both production and exploration) are Canadian registered, and several of the industry’s biggest players such as Barrick, Goldcorp, and Kinross are Canadian. And, with a government increasingly working to reflect the needs and interests of the extractive industry, these companies have emerged as key dictators of our country’s economic and foreign policy.

As a country, we are increasingly tied to gold. It is with this in mind that I chose to look at the long and often brutal history of gold mining, the way in which we have viewed gold over time, and to help piece together our strange relationship with this mineral.

Why gold? What has led us to value it above all other substances? Looking at a sample in the display cases in the Redpath Museum, it is hard to deny its beauty. However, gold’s real power has always been symbolic, for gold is wealth itself.

Read more

Thunder Bay Power plant shocker – Thunder Bay Chronicle-Journal Editorial (November 4, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

JUST when Northwestern Ontario had some wind in its sails — bam! — the penny-pinching province becalms mining-related momentum by suddenly cancelling the conversion of Thunder Bay’s electricity generating station from coal to gas. There are a whole raft of questions still to come, and there might well be good answers to them. But for the time being, this plan looks hair-brained.

First, it flies in the face of the province’s vaunted coal phase-out policy built on converting newer plants in order to keep the lights on in various regions. Converting Thunder Bay Generating Station to natural gas and Atikokan to biomass is a central plank in the clean-air platform. Atikokan is still proceeding but it will only produce 20 megawatts at the best of times.

Thunder Bay GS would produce 700 MW from gas. Removing that capacity from the grid would leave the Northwest destitute for electricity just when it needs a lot of it to power the new mining boom, area leaders said Friday at a news conference punctuated with expressions of dismay.

The energy minister cautions this is temporary — for now — while the Ontario Power Authority prepares a new plan for the North built around a doubling in capacity of the east-west tie line to 600 MW.

Read more

Vale partner says Guinea seeks to seize iron ore rights – by Richard Valdmanis, Clara Ferreira-Marques, and Saliou Samb (Reuters Canada – November 3, 2012)

http://ca.reuters.com/

DAKAR/LONDON (Reuters) – The mining arm of Israeli billionaire Beny Steinmetz’s business empire has accused the government of Guinea of seeking to “illegally seize” its assets through a probe into how it won rights to mine part of a major iron ore deposit.

Privately owned BSG Resources, which has been working in the West African country with Brazilian mining major Vale (VALE5.SA: Quote), confirmed it had received a letter from a government commission alleging improper behavior and graft in its winning of rights to develop blocks in the Simandou region.

The Financial Times reported on Saturday that a government committee backed by philanthropist George Soros had launched a corruption probe into the award process for the blocks in 2008 and sent the letter to BSG including a range of charges.

The blocks were stripped from Anglo-Australian miner Rio Tinto (RIO.AX: Quote) and the licenses passed to BSGR in 2008, under a previous administration. Simandou, in Guinea’s hilly and forested southeast, is estimated to hold what could be the world’s largest unexploited iron ore reserves.

“This is the fifth and most clumsy attempt by an already discredited Government of Guinea in an ongoing campaign to illegally seize BSGR’s assets,” BSGR said in a statement.

Read more

Is Indonesia China’s new mining investment hotspot? – by Jeff Hutton (Mineweb.com – October 23, 2012)

http://www.mineweb.com/

Indonesia’s upcoming ban on mineral exports is drawing a wave of Chinese investors but for some it may already be too late to jump on the bandwagon.

JAKARTA (AUSTRALIAN MINING) – Indonesia’s upcoming ban on mineral exports is drawing a wave of Chinese investors and equipment suppliers as local miners are forced to beef up ore processing capability before a 2014 deadline.

The wave may be one of the few bright spots for aspiring Chinese suppliers, many of whom are venturing out of their home markets for the first time, in bid to offset a construction and investment downturn in their home market.

One small example? Tonghua Jianxin Metalurgy Co. The company based in Jilin province, opened its first office outside of China in Jakarta this month, after sealing only its second overseas contract to design, build and commission a nickel ore smelter in July.

The company will build a smelter capable of processing 50 tons of nickel ore a day for Bukaka Forging Industries, whose specialty products include automotive parts and passenger air bridges at Indonesia’s airports.

Read more

The Value of the Prospector – by William Sulzer (1938)

From a speech delivered in 1938 by William Sulzer, a former governor of New York.

The prospector is the most useful man to commerce and the most valuable man of civilization.

Political economists tell us that next to agriculture, mining is the next greatest industry. This is true from the viewpoint that if our soil were untilled, famine would stalk the land.

From a monetary standpoint, however, the mining industry is the greatest in the world. The truth of this assertion becomes apparent when one considers that mining gives us the standard of value by which the price of everything produced by the brain and brawn of man is measured.

Abandon mining and the value of every commodity would be insignificant, humanity would sink back to the barter-and-exchange age, and financial paralysis would lock in its vice-like grasp the industries of mankind.

It would be the greatest calamity that ever befell the human race, and in less than a century, civilization would revert to the barbarism of pre-history, when primitive man knew nothing about copper, gold, silver, iron, lead, zinc and the other mineral resources of Mother Earth.

Read more

The Weird & Wonderful World of Mining – Edition 1 – by Mining IQ

http://www.miningiq.com/

Mining IQ is proud to present The Weird and Wonderful World of Mining. This mining guide e-book contains hundreds of interesting and valuable facts to be shared and enjoyed throughout the mining industry and community.

The book, born from a discussion about all the crazy trivia within the mining industry, has been compiled not only by the Mining IQ team but also from a plethora of Mining IQ members and the outer mining community who have shared with us their favourite titbits.

The e-book contains 10 chapters covering a huge range of topics from historical and famous to business and the community. We will be releasing the e-book two chapters at a time and edition 1 will contain the chapters – Mining in the Community & Largest/ Most Heaviest. Mining IQ is sure the industry will enjoy The Weird and Wonderful World of Mining just as much as we did putting it together.

Click here for access to the e-book: http://www.miningiq.com/business-improvement-and-corporate-strategy/white-papers/the-weird-wonderful-world-of-minin/

Let us know what you think of the e-book on our social media networks! We’d love to hear your feedback or perhaps you too have some weird mining information you’d like to share!

Read more

Advancing safety in mining through better planning and practices in Ontario

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario’s mining industry continues to move towards the goal of zero harm in the workplace by 2015. Every avenue is being explored to reach that target. A presentation by Ontario’s Chief Prevention Officer George Gritziotis at a recent Ontario Mining Association board of directors meeting helps to provide light for the path forward.

“The Prevention Council held its first meeting on September 28 and one of its priorities is a renewed focus on the Internal Responsibility System,” said Mr. Gritziotis. “Health and safety is a tier one public good.” He is looking into having a mine in Northern Ontario participate in a pilot project concerning the re-emphasis on the IRS.

Roy Slack, President of mine contractor Cementation Canada, represents the mining sector and Northern Ontario on the Prevention Council and he was described by Mr. Gritziotis as a “true champion of health and safety.”

Mr. Gritziotis outlined the priorities of the Prevention Council. They include support in health and safety for small employers and small businesses, for vulnerable workers such as youth, immigrants and older workers and for those in high hazard sectors.

Read more

Mining in Nunavut – Booming with new investment – by Liz Kingston, NWT & Nunavut Chamber of Mines (Canadian Mining Magazine – Fall 2012)

This article was originally in Canadian Mining Magazine.

Nunavut is booming. With record mineral investment this year expected to top $550 million, Nunavut is the fourth largest mining investment destination in Canada. With Agnico-Eagle’s Meadowbank gold mine settling into its third year of production, and significant other project investments, mining has risen to 15% of the economy. Statistics Canada says Nunavut recorded the largest economic increase in Canada this past year.

More opportunity is coming. At press time, Baffinland Iron Mines was awaiting the final decision from the Nunavut Impact Review Board (NIRB) for its massive Mary River iron project on North Baffin Island to proceed to permitting. This project proposes construction of Canada’s most northerly railroad and a port to serve the mine, and of course would drive significant jobs and business opportunities for Nunavut and Canada.

As another precedent setter, it would pay $100 million annually in royalties to the Inuit land claim organization, Nunavut Tunngavik Inc., perhaps the largest mining benefit to an Aboriginal group in the country. Given the project’s size and opportunities, it will cement mining as the foundation of Nunavut’s future economy.

Read more

NWT Minerals industry – Multiple projects in EA, Diamonds still #1 – by Tom Hoefer, NWT & Nunavut Chamber of Mines (Canadian Mining Magazine – Fall 2012)

Tom Hoefer is the Executive Director, NWT & Nunavut Chamber of Mines. This article was originally in Canadian Mining Magazine.

The mining industry clearly dominates private sector contributions to the Northwest Territories economy. But then, one might expect it when the NWT is the world’s third most valuable producer of diamonds! Last year diamond production was valued at just over $2 billion, exceeding by 5 times the contributions of mining to either the Yukon or Nunavut’s economies. Add in some tungsten and copper from the Cantung mine, the NWT’s mining industry contributes one third of the GDP; with indirect benefits, it’s contributions are closer to half the economy.

It seems like only yesterday when geologists Chuck Fipke and Stewart Blusson made the first discovery, which resulted in production from our first diamond mine, BHP Billiton’s EKATI in 1998. This was followed in relatively short order with two more mines: Rio Tinto and Harry Winston’s Diavik mine, and De Beers’ Snap Lake mine.

Diamonds continue to create remarkable results. Since production began, our mines have created 20,000 person years of northern employment, and half of that Aboriginal. But that’s not all. Additionally, the mines have paid Northern businesses some $9 billion in capital and operating costs. And for the first time ever in our history – and notable in Canada’s too – $4 billion of that business has been invested with Aboriginal firms. This has created a surge in Aboriginal business creation and growth and is arguably the biggest economic legacy for those communities since the fur trade.

Read more

China eyes Canadian potash, fertilizer sectors – by Jason Fekete (Calgary Herald – November 2, 2012)

http://www.calgaryherald.com/index.html

Two of China’s largest state-owned energy giants – CNOOC and Sinopec – have expressed interest to the federal government about investing in Canada’s potash sector and fertilizer production, government documents obtained by Postmedia News show.

The documents also reveal the Conservative government was aware for the past year, well before the recent controversy over foreign investment rules and the takeover bid for Nexen, that CNOOC was interested in co-operating “with other oil majors in investments in Canada.”

China was also looking for “early completion” of the Northern Gateway oilsands pipeline between Alberta and the B.C. coast currently under review by a federal panel.

As the Conservative government finalizes a new policy framework on foreign investment – and considers CNOOC’s $15.1-billion takeover bid for Calgary-based petroleum producer Nexen – it has been doing so knowing that major Chinese national oil and gas companies have been looking to invest in potash and fertilizer processing as well.

The Harper government has already blocked an attempted hostile takeover of Potash Corp. of Saskatchewan by Australian mining giant BHP Billiton.

Read more

Closer trade and investment ties to China turning into a big headache for Stephen Harper – by Les Whittington (Toronto Star – November 4, 2012)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

OTTAWA—Playing the China card, a key to Stephen Harper’s economic strategy, has proven a lot trickier than the federal Conservatives expected when the Prime Minister signalled in Beijing that Canada was open for business.

Increased trade, investment and energy dealings with Asia, particularly China, underpin the natural resources-heavy cure-all for the economy that the Harper government embraced last winter after U.S. President Barack Obama rejected the $7 billion Keystone XL pipeline from Alberta to the U.S. Gulf Coast.

In response, the Conservatives stepped up efforts to diversify trade and energy sales away from the U.S., touting as a national priority a proposed pipeline to carry oil sands-derived crude from Alberta to British Columbia for shipment to Asia. Regulatory approval was streamlined in hopes of fast-tracking energy sales to China, while the pipeline’s opponents were demonized as anti-Canadian.

And in February, Harper carried out a visit to Beijing characterized as a major breakthrough in Canada-China economic relations, with the Prime Minister initialling a long-sought investment protection agreement between the two countries.

Read more