2012 – Page 57 – Republic of Mining

Friedland seeks funding for Congo project – by Christopher Donville (Bloomberg/Toronto Star – September 14, 2012)

September 14, 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.

VANCOUVER—Robert Friedland, the billionaire who spent the past decade building a $6 billion (U.S.) copper mine in Mongolia’s Gobi Desert, is asking investors to fund projects in an even riskier locale—the Democratic Republic of Congo.

Ivanplats Ltd., a Friedland-controlled mining company, plans to raise about $300 million (Canadian) in an initial public offering in Toronto, according to a person with knowledge of the IPO who declined to be identified because the amount hasn’t been published. Vancouver-based Ivanplats seeks funding for its Kamoa copper project in Congo and to repay debt owed to Israeli investor Dan Gertler, who sold the company a zinc mine in the African country last year, according to a prospectus filed with regulators Sept. 10.

Friedland, 62, five months ago lost control of the Oyu Tolgoi mine in Mongolia after disputes with the government and joint venture partner Rio Tinto Group. He’s now proposing a mining development in Congo, whose government seized copper assets from Canada’s First Quantum Minerals Ltd. in 2010, and in South Africa, where the mining industry is convulsed by labor unrest.

“I would call the DRC the ultimate high-risk, high-reward mining destination—it’s one that’s on the radar of all serious mining companies because of its huge wealth and mineral resources,” James Smither, head of the mining practice at Maplecroft, a Bath, England-based risk-analysis company, said by telephone.

Peter Lougheed, Mr. Alberta, helped the province come of age – by Jeffrey Simpson (Globe and Mail – September 14, 2012)

September 14, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Peter Lougheed was a Progressive Conservative in politics, a Tory in thinking, a gentleman in life, a lawyer in profession, an Albertan in breeding, a Canadian at heart.

He won his last election 30 years ago. Yet, for all but the youngest Albertans, he’s remembered as the best premier Alberta ever had. He would walk the streets of Calgary, or any other Alberta city or town, years after leaving public life and be hailed as “Mr. Premier” or just plain “Peter.” Small of stature but large of reputation, he recalled a time and a government when some of the province’s best and brightest wanted to serve, because it meant working with and under him.

Modern Alberta came of age with Peter Lougheed. He both reflected that modernization and hastened it. He was elected premier in 1971, just before the world oil shock sent world prices soaring, creating a bonanza for Alberta. Suddenly, the province got rich. With that wealth came money and people flocking to Alberta, Albertans moving to Calgary and Edmonton, and a determination by federal governments to spread Alberta’s wealth around the country. They were turbulent times, to say the least, what with energy revenue a national issue, constitutional battles emerging, fiscal deficits growing and governments wrestling with the challenges of stagflation, the deadly mixture of high interest rates, high unemployment and slow growth.

Tributes pour in for Peter Lougheed – by Josh Wingrove, Dawn Walton and Carrie Tait (Globe and Mail – September 14, 2012)

September 14, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

EDMONTON and CALGARY – Regardless of political stripe, no matter the geographic location, tributes poured in to honour former Alberta premier Peter Lougheed, who died in Calgary on Thursday, at the age of 84.

Mr. Lougheed, who had a long history with heart problems but whose family said Thursday evening he died of natural causes, was being cared for in his final days in the hospital that bears his name. “Today Canada lost a truly great man,” Prime Minister Stephen Harper said in a statement, “Peter Lougheed was quite simply one of the most remarkable Canadians of his generation.”

Mr. Lougheed, who kick-started the province’s Progressive Conservative dynasty and reshaped its place in Confederation, was also a lawyer and former CFL player. He served as premier from 1971 to 1985, laying the groundwork for Alberta’s oil sands boom and famously battling Pierre Trudeau over the proposed National Energy Program.

“A master politician, gifted lawyer, professional-calibre athlete and philanthropist, the former premier was instrumental in laying the foundation for the robust economic success that his cherished province of Alberta enjoys today,” the Prime Minister said in the statement.

Unbalanced economy fuelling Ontario job losses, Thomas Mulcair says – by Bruce Campion-Smith (Toronto Star – September 14, 2012)

September 14, 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—Canada’s unbalanced economy has had a “devastating” effect on southern Ontario with the loss of thousands of good-paying manufacturing jobs, NDP Leader Thomas Mulcair says.

After spending four days touring the region this week, Mulcair said he’s not backing down on his view that the failure to develop Canada’s resource riches in a sustainable fashion is costing the economy.

“We’re always going to have a resource-based economy. We always have had and always will have . . . We also had a very strong secondary sector. We built up manufacturing. Those were choices that were made,” Mulcair said in an interview Thursday.

“We’re killing off that balanced economy and it’s really having devastating effects in regions like southwestern Ontario,” he said.

In the past, Mulcair has blamed so-called Dutch Disease for the loss of 500,000 manufacturing jobs across the country in recent years. Taking its inspiration from the impact of natural gas development in the Netherlands, it refers to when natural resource riches drive up the value of a country’s currency and badly damage manufacturing exports.

Vale puts railveyor to test – by Norm Tollinsky (Sudbury Mining Solutions Journal – September 2012)

September 13, 2012

Sudbury Mining Solutions Journal is a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury.

The successful demonstration of Sudbury-based Rail-Veyor Technologies’ innovative material handling system at Vale’s 114 Orebody could lead to a significant change in mine design, enabling smaller openings, improved safety and faster advance rates.

A surface demonstration of the rail-veyor at Vale’s Stobie Mine proved that the technology worked, but it had to be put to the test in an actual mining operation before the company could specify it for future mine developments.

“We proved the ore-handling capability of the rail-veyor at Stobie,” said Alex Henderson, Vale’s general manager of underground technology for base metals. “This demonstration is more about how we integrate it into our development and production processes.”

Assuming the final verdict is positive – and all indications suggest it will be – the rail-veyor can be classified as proven technology and considered as an option in feasibility studies for new mine developments in Sudbury and elsewhere across Vale’s global footprint.

Making deep mining safer – by Darren MacDonald (Northern Ontario Business – September 2012)

September 13, 2012

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

With the future of mining in Sudbury dependent on finding ways to extract ore from deeper underground, a local invention offers hope that it can, one day, be done safer, cheaper and more quickly.

The Canadian Mining Industry Research Organization – CAMIRO – is developing a spray-on liner that would take the place of the shotcrete and screens traditionally used to hold underground tunnels in place. Four millimetres of the bright orange, polyurethane compound would be sprayed onto the walls and ceilings underground by a robot adapted for mining use from the automotive industry.

CAMIRO is a Sudbury-based not-for-profit organization run by the mining industry to manage collaborative mining research. Originally built to spray paint onto cars, the $60,000 robots would be upgraded with scanning and other software so it could coat the area with the liner without any humans being present.

MTI Inc. of Sudbury has been given the job of coming up with a carrier for the robot, which is currently transported using a scoop tram. Charles Graham, managing director of CAMIRO, said the liner has several potential advantages over current practices. Unlike shotcrete, the polyurethane liner is flexible.

Vox: Gold equities: A less than glittery outlook – by David Milstead (Globe and Mail – September 13, 2012)

September 13, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The Denver Gold Forum should be a happy, happy place, what with the precious metal on a multiyear run to levels above $1,700 (U.S.) per ounce. But the forum is not a convention of hoarders of coins and bars; it’s an investment conference for the companies who pull the stuff out of the ground.

And since gold-producer equities have badly lagged gold’s gains over the past couple of years, there was less celebrating, and more head-scratching and soul-searching, in Denver this week.

Even Franco-Nevada Corp.’s Pierre Lassonde, known widely as an off-the-charts bull on the gold price, titled his talk “The best of times, the worst of times” – with gold prices the former, and gold equities the latter.

Why the disconnect? Well, as one company’s director of investor relations explained to me, it wasn’t so long ago that the typical buyers of the stocks were gold bugs who preferred production capability to profitability.

MP foresees fiery clash [mining and First Nations]- by Ron Grech (Timmins Daily Press – September 12, 2012)

September 13, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – MP Charlie Angus (NDP — Timmins-James Bay) foresees a clash between First Nations and mining companies within the Ring of Fire. He believes the federal government has a role to play in helping to prevent it.

“We could end up with clashes on the ground and it seems to be a lot opportunity to have conflict over this,” Angus said Wednesday. “I’ve talked to First Nations and I’ve talked to mining companies in the North who are both very frustrated about the fact when it comes to these negotiations, the feds are not at the table.

“We need to be partners together for development. What we want to see is the feds sitting down at the table” along with the province, First Nation communities and mining companies. The Daily Press asked Angus about building tensions within the James Bay lowlands during a wide-ranging interview on Wednesday in advance of the fall session of parliament which begins Monday.

Among the key concerns for Angus is the plan to increase size of the Timmins-James Bay federal riding which is already larger than some European countries.

South African mine strikes spread – by Geoffrey York (Globe and Mail – September 13, 2012)

September 13, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — Rampaging protesters are wreaking havoc in the world’s leading platinum sector, forcing the closure of another major mining operation as South African workers grow increasingly militant in the aftermath of a deadly police crackdown.

Anglo American Platinum Ltd., the top global producer, decided to shut down four of its shafts on Wednesday when about 1,500 protesting mine workers – many waving machetes and sticks – blockaded roads and marched to the company’s gates near Rustenburg in South Africa’s platinum belt.

Amplats said it closed the mines temporarily because it feared for the safety of its 19,000 workers, who were already facing threats from the protesters on Wednesday. South Africa produces about 80 per cent of the world’s platinum, and Amplats alone is responsible for nearly 40 per cent of the world’s production.

The wildcat strikes have also begun spreading into South Africa’s gold industry, with 15,000 workers off the job at Gold Fields Ltd., the world’s fourth-biggest gold producer. Security guards fired tear gas at thousands of protesting workers on Wednesday when the workers tried to stop a passing train at the mine site.

Pickle Lake pushes east-west Ring of Fire route – by Bryan Meadows (Thunder Bay Chronicle-Journal – September 13, 2012)

September 13, 2012

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

The Township of Pickle Lake wants the province to reconsider its support for a proposed north-south road corridor to Nakina from the Ring of Fire mining camp.

“The businesses in our community stand to lose 30 to 40 per cent of their business due to the north-south route decision,” Mayor Roy Hoffman said Wednesday. “The impact of this could potentially put these businesses ‘out of business’ and put extreme pressure on a community that is already struggling to survive.”

Hoffman explained that a north-south route would impact a supply chain developed over decades through Pickle Lake, which acts as a distribution point for building supplies, fuel, groceries, mail and medical supplies.

“To fundamentally change the flow of traffic to (remote) First Nation communities will have a negative economic impact on the community,” he said, noting that the community prefers that a north-south rail line be constructed to get minerals to market from the Ring of Fire, south to Nakina and the CN Railway main line.

Vale freezes hiring – by Carol Mulligan (Sudbury Star – September 13, 2012)

September 13, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Just weeks ago, Vale Ltd. was advertising to hire 400 new employees at its Canadian operations. Today, a hiring freeze is in effect at Vale operations worldwide — including Sudbury — while the Brazil-based miner deals with “challenges” associated with a huge drop in commodity prices.

Peter Poppinga, chief executive officer of Vale Canada Ltd. and executive director of its base metals operations, wrote to top-level managers last week, saying Vale base metals leaders are reviewing “every aspect of our business as we speak.”

In an email obtained by The Star, Poppinga tells top-level managers the key to short-term and long-term stability is to “reinvent, reshape and turn around” the business.

Poppinga stressed safety must always come “at the forefront,” but he said high-level executives are examining performance across all operations — looking at Vale’s ability “to deliver and be competitive, placing renewed emphasis on value over volume.” The company will have to make some “tough decisions,” said Poppinga, which will be announced in the next four to six weeks.

NEWS RELEASE: Canada’s Mines Ministers Agree to Collaborate on Key Priorities

September 12, 2012

September 11, 2012

CHARLOTTETOWN, PRINCE EDWARD ISLAND – Federal, provincial and territorial energy and mines ministers agreed this week at their annual conference to pursue collective action to strengthen Canada’s position as a global energy and mining leader. The annual Energy and Mines Ministers’ Conference, co-chaired by the Honourable Joe Oliver, Minister of Natural Resources, and the Honourable Wesley Sheridan, Prince Edward Island’s Minister of Finance, Energy and Municipal Affairs, focused on actions needed to realize the economic potential of Canada’s energy and mining sectors.

The ministers emphasized the enormous importance that natural resources play in Canada’s economy. In 2011 the natural resource sectors accounted for 15 percent of Canada’s nominal GDP and directly employed nearly 800,000 Canadians. An equal number of Canadians were employed through related sectors such as industry construction, technology and financial services. Major resource projects currently underway or planned over the next 10 years are estimated to be worth about $650 billion in capital investments.

“Canada’s mining sector is poised to undergo significant growth, creating high-quality jobs for Canadians in every part of the country,” said Minister Oliver. “But we must do more to fully realize Canada’s tremendous resource potential and planned investments. Our success will depend on a world-leading investment environment, greater access to diversified markets, continued innovation, efficient labour markets, stronger environmental protection and enhanced consultations with Aboriginal peoples.”

NEWS RELEASE: Greenstone confirmed as Gateway to the Ring of Fire

September 12, 2012

(Greenstone, Sept. 12, 2012) “More and more it is becoming clear that the Municipality of Greenstone is emerging as the gateway to the Ring of Fire.” These words were used by Greenstone Mayor, Renald Beaulieu, while briefing Councillors on recent developments concerning the Municipality.

The first development is the Noront Resources (NR) announcement that their “base case” is predicated on transporting Ring of Fire ore using the proposed North-South Corridor (with a southern terminus in Greenstone’s Nakina ward. The second is that the Ontario Power Authority (OPA) is now considering an East of Lake Nipigon transmission corridor.

When commenting on NR’s decision to transport ore on the planned north-south road, the Mayor said, “For decades, Nakina was viewed as the end of the road, but increasingly it seems that Nakina, a proud part of Greenstone, will soon be seen as the start of the road.”

Adding greatly to the Mayor’s enthusiasm was the low key, yet pivotal, news that the Northwest Ontario First Nations Transmission Planning Committee (NOFNTPC) has been informed by the OPA that the OPA is now studying an East side of Lake Nipigon transmission line.

Parti Québécois mining promises under scrutiny – by Monique Beaudin (Montreal Gazette – September 10, 2012)

September 12, 2012

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

Premier-designate Pauline Marois made a lot of promises about mining in the election campaign. Her Parti Québécois promised to hike mining royalties, revamp the 25-year Plan Nord and require environmental reviews of new mining projects.

Now the industry and environmental groups are wondering which promises will come true. On Monday, a coalition of environmental groups called on the new government to make good on its promises, while an industry spokesperson denied companies were “in a panic” about the PQ plans.

“Despite being in a minority position, we believe that the Parti Québécois is in a good position to make quick and necessary reforms in Quebec’s mining sector,” said Ugo Lapointe, spokesperson for Québec meilleure mine, a coalition of 30 different groups.

There was a consensus among all political parties that Quebec’s mining law needs to be updated, the group said in a statement. It believes Quebecers should benefit more from the development of the province’s natural resources.

Cliffs defers Ring of Fire chromite production to 2016 – Staff (Northern Ontario Business – September 2012)

September 12, 2012

Cliffs Natural Resources is pushing back the start of production at its Ring of Fire chromite deposit in the James Bay lowlands by one year.

In its latest investor presentation, the Ohio miner said Black Thor will begin production in 2016.

“The final decision on the furnace location (in Sudbury) took Cliffs longer than originally planned,” said spokeswoman Pat Persico by email. “This was due to the necessary discussions held with the province of Ontario regarding power and road. As these are very important decisions driving the long-term project, Cliffs is focused on making the best choices and adjusting schedules accordingly.”

First Nations concerns about the project’s impact on the environment and the lack of consultation were not a factor in adjusting the development timeline, she said.