2012 – Page 58 – Republic of Mining

Robert Friedland returns with Ivanplats IPO – by Peter Koven (National Post – September 12, 2012)

September 12, 2012

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

Robert Friedland is back. The legendary mining promoter has launched a long-awaited initial public offering for Ivanplats Ltd., which controls massive mineral deposits in South Africa and the Democratic Republic of Congo (DRC). The IPO is expected to raise hundreds of millions of dollars, sources said, and could be the largest on the Toronto Stock Exchange this year.

The single largest Canadian IPO of the year is Sunshine Oilsands Ltd. (at $575-million), but that offering was in Hong Kong. The largest TSX IPO was Argent Energy Trust, which raised $244-million. Ivanplats will likely be bigger.

Previous media reports suggested Mr. Friedland wanted to raise as much as $1-billion with this deal. However, sources said expectations are much lower than that, given turbulent market conditions and high risk aversion among investors right now.

The offering marks a return to the TSX for Mr. Friedland, who disappeared five months ago when he resigned from Ivanhoe Mines Ltd. (later re-named Turquoise Hill Resources Ltd.). He left Ivanhoe after Rio Tinto Ltd. took majority control of the company and its flagship project, the Oyu Tolgoi mine in Mongolia.

Despite U.S. ‘tight oil renaissance’, optimism pervades Canada’s oil sands sector – by Jameson Berkow (National Post – September 12, 2012)

September 12, 2012

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

TORONTO – Facing a rising tide of United States tight oil production, Canada’s up-and-coming oil sands producers aren’t afraid of drowning.

Often referred to as ‘the tight oil renaissance’, recent reports have pointed to the rapid growth of production coming from new U.S. resource plays as a major cause for concern over the future competitiveness of upcoming northern Alberta oil sands projects. Yet emerging companies attending the Peters & Co. Ltd. 2012 Energy Conference here remain optimistic their heads will remain above the surface.

Total U.S. oil production is expected to exceed 10 million barrels per day by the end of the decade, according to some estimates, with much of the growth coming from new unconventional plays such as the northern Bakken or the southern Eagle Ford.

The boom has raised questions about the demand for oil imports from Canada’s best energy customer as the U.S. currently gets nearly half the oil it consumes from abroad. However, Glen Schmidt, chief executive of Laricina Energy Ltd., questions whether that ambitious growth will actually materialize.

Teachers learn about modern mining in Ontario – by Liz Cowan (Northern Ontario Business – September 2012)

September 12, 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.

It took five days for Niagara Region elementary school teacher Chris Hoekstra to change her preconceived ideas about mining. “I was thinking picks and shovels, that it was very intrusive, not environmentally friendly, it was eating up our land and why do we really need it,” she said.

After spending five packed days at the Canadian Ecology Centre’s Mining Teachers’ Tour in August – including an underground visit – her view has totally changed.

“I had a picture of going down into a timbered shaft,” Hoekstra said. “But the technology that is used has really impressed me and I didn’t anticipate that. I had no idea of the number of engineers and tradespeople that are required and how environmentally conscious they are to the point of having staff that are just dedicated to that.”

The third mining tour was held Aug. 6 to Aug. 10 at the Mattawa facility housed in Samuel de Champlain Provincial Park.

Billions needed to save Canadian roads, water systems, report says – by Josh Tapper (Toronto Star – September 12, 2012)

September 12, 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.

Canada’s leaky municipal infrastructure faces an increasingly grim future unless the federal government sinks an estimated $171.8 billion into repairing or replacing aging roads and water systems, a new report says.

With the Conservatives’ infrastructure funding plan set to expire in 2014, the Federation of Canadian Municipalities’ first-ever national infrastructure report card called for a commitment from Ottawa to support cash-strapped municipalities, many of which are home to decaying, “at-risk” infrastructure.

The report, a sweeping examination of 123 municipalities that was released Tuesday, paints a bleak portrait of Canada’s roads and wastewater systems. More than half of municipal roads received a grade of “fair” to “very poor” for displaying general physical decline, significant signs of corrosion or “widespread signs of advanced deterioration.”

“(The report) affirms that we know that there is infrastructure that is not meeting a certain standard across the country,” FCM president Karen Leibovici said in an interview. “We need to tackle that . . . to ensure that the infrastructure we have throughout this country is able to meet needs.”

Philippines’ black market is China’s golden connection – by Rosemarie Francisco (Reuters.com – August 23, 2012)

September 12, 2012

http://in.reuters.com/

MOUNT DIWATA, PHILIPPINES – (Reuters) – Erich Mulato walked out of a dingy workshop in this mountain village and into a gold shop next door, clutching a handful of shiny warm nuggets newly refined from the ore he had brought in.

The 53-year-old father of six had come off a 24-hour shift at one of the hundreds of small-scale mines in this region of southern Philippines. He sold the 5.49 grams of gold in his hand – his share of the day’s output – for 8,260 pesos. That’s more than 16 times what a manual laborer earns daily in Manila.

“Here, we can easily make money,” Mulato said, blowing smoke from a cigarette as he waited for his money at the gold shop. “Whatever we want to buy, we can buy … Making a living is better here.” Better for Mulato, but not for the Philippine government.

In all likelihood, Mulato’s gold will find its way through middlemen and into the luggage of a tourist or the black market in Manila – not to its only legal destination, the Bangko Sentral ng Pilipinas or the central bank. Up to 90 percent of small-scale Philippine gold production is being smuggled out of the Southeast Asian country, according to estimates from officials and traders, much of it to China.

UPDATE 2: World’s biggest platinum producer Amplats hit by unrest – by Christy Filen (Mineweb.com – September 1, 2012)

September 12, 2012

www.mineweb.com

Anglo American Platinum spokesperson, Mpumi Sithole has confirmed the miner is working with police to contain an outbreak of intimidation but is unclear how many people are involved.

JOHANNESBURG (Mineweb) – Anglo American Platinum on Thursday said its employees are not on strike but that some were unable to report for night shift last night due to intimidation and threats by ‘unidentified individuals’.

In a move that would suggest an evacuation of sorts, Amplats have decided to ‘re-direct employees to a neutral place’ to ensure their safety and security.

“Our priority is to ensure the safety of our people while we find solutions to address the situation. We will provide update information as it becomes available,” said the company in an email to media.

This update comes after the miner announced last night that it was trying to contain an outbreak of intimidation at its Rustenburg mines and had been working 24/7 to try to prevent the unrest.

Environment and economy – Thunder Bay Chronicle-Journal Editorial (September 11, 2012)

September 12, 2012

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

THE battle between industry and the environment — between progress and pollution — is being waged across Canada and around the world. A generation ago, the modern environmental movement was born to fight specific threats — against whales in the world’s oceans, old growth forests in Ontario and British Columbia, air and water surrounding industrial sites and populous shoreline areas. Lake Erie once was declared “dead” and the restoration of its water quality is an important measure of the ability of governments to jointly act in the public interest on issues that can seem overwhelming.

Since then, global economic challenges have intensified the battle between industry and environment. But this time, governments have to contend with the fact that in order to revive economies and reinstate people’s futures, new industrial activity is essential now despite environmental concerns.

Thus, in Canada we have oilsands and shale gas developments that cause unprecedented environmental disruption, and plans to ship the products in new pipelines despite growing accounts of pipeline spills — all of it encouraged by a federal government that is stripping Canada of parts of its regulatory catalogue.

NEWS RELEASE: MINING POTENTIAL GIVES THE TERRITORIES BRIGHT ECONOMIC PROSPECTS

September 12, 2012

News release 13-24
www.conferenceboard.ca

Ottawa, September 12, 2012 – Despite the global economic uncertainty and the unresolved fiscal and economic woes in Europe, economic growth in the Canadian territories is forecast to outpace the country as a whole for several years to come. Real gross domestic product (GDP) in the territories is expected to grow by 3.6 per cent in 2012, and then accelerate by 5.4 per cent and 4.3 per cent, respectively, in 2013 and 2014, according to The Conference Board of Canada’s Territorial Outlook-Summer 2012.

“Commodity prices have declined in recent months, so the short-term economic outlook for the territories is not as robust as what we were projecting at the start of the year,” said Marie-Christine Bernard, Associate Director, Forecasting and Analysis. “Most mineral exploration plans are proceeding this year, albeit at a somewhat weaker pace than expected six months ago.”

In the medium and long-term, the territories’ economic forecast remains positive and the robust economic outlook can be attributed to new metal mine developments. While a mining project is never guaranteed to proceed, favourable global demand for metals suggest that Canada’s mining potential is bright over the next decade—particularly in the North.

On the fiscal side, all three territories are expected to post balanced budgets this fiscal year. However, the economic outlook among the individual territories varies greatly.

Rob McEwen: gold should be in your portfolio and it’s going to $5,000 – by Lawrence Williams (Mineweb.com – September 11, 2012)

September 11, 2012

www.mineweb.com

In an upbeat presentation at the Denver Gold Forum, Rob McEwen forecast that gold is going to $5,000, while setting out the path forwards for the company which now bears his name – McEwen Mining.

DENVER (MINEWEB) – This year’s Denver Gold Forum kicked off yesterday morning and one of the early speakers was Rob McEwen of McEwen Mining. He has a great name in the industry due to his long term stewardship of Goldcorp, which was largely responsible for building the gold mining major to the strong position it holds today.

Nowadays he runs McEwen Mining – a U.S. headquartered and quoted developing gold producer for which he has the avowed intent of bringing into the S&P 500 by 2015 – and with one gold/silver mine in production, a second just starting up with its first gold pour expected in a matter of weeks, a third in permitting and a very significant copper/gold/silver project at the exploration stage he may be well on his way to achieving this aim.

But it is perhaps as an avowed believer in gold that McEwen attracts a strong following at a conference of this type, perhaps the most significant annual gold event in the calendar- and he opened his presentation with a strong statement of his beliefs in this respect.

Teck admits operations polluted U.S. waters – by Dene Moore (Globe and Mail – September 10, 2012)

September 11, 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.

VANCOUVER — The Canadian Press – Canadian mining giant Teck Resources Ltd. has admitted in a U.S. court that effluent from its smelter in southeast British Columbia has polluted the Columbia River in Washington state for more than a century.

Teck subsidiary Teck Metals made the admission of fact in a lawsuit brought by a group of American Indian tribes over environmental damage caused by the effluent discharges dating back to 1896.

The agreement, reached on the eve of the trial initiated by the Colville Confederated Tribes, stipulates that some hazardous materials in the slag discharged from Teck’s smelter in Trail, B.C., ended up in the Upper Columbia River south of the border.

Specifically, the company admitted: “Trail discharged solid effluents, or slag, and liquid effluent into the Columbia River that came to rest in Washington state, and from that material, hazardous materials under (U.S. environmental laws) were released into the environment,” Dave Godlewski, vice-president of environment and public affairs for Teck American, said in a telephone interview.

Spectra, BG make big pipeline bet in the race to B.C.’s coast – by Brent Jang and Nathan Vanderklippe (Globe and Mail – September 11, 2012)

September 11, 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.

VANCOUVER AND CALGARY — Spectra Energy Corp. and BG Group PLC are proposing a new pipeline megaproject to carry natural gas to the British Columbia coast for export to Asian markets, making it the largest bet yet that the province’s energy riches will find a home abroad in a high-stakes race worth tens of billions of dollars.

The two companies envisage brisk demand for B.C. natural gas from customers in Japan, China and South Korea, and big potential in India and Thailand, said Doug Bloom, president of Spectra’s Western Canadian operations.

In the process, they are attempting to build a future that stands to see Canada’s westernmost province rival Alberta as Canada’s natural gas heavyweight.

“It’s British Columbia that has a massive resource base, and that’s where the bulk of the supply will come from,” Mr. Bloom said in an interview Monday in Spectra’s Vancouver office. “There are enormous amounts of domestic supply and production capability that are way in excess of domestic needs.”

Gold miner Goldcorp is cornerstone of the Red Lake community

September 11, 2012

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 Mining Association member Goldcorp’s Red Lake Mines is the cornerstone of its namesake community in the northwestern corner of Ontario. Though the impact of this mining operation is felt regionally, provincially, nationally and internationally, its role is the most profound within sight of its headframes.

Red Lake, which is located in the Central Time Zone, more than 1,900 kilometres north and west of Toronto, has a current population of about 5,200. It is comprised of the communities of Red Lake, Balmertown, Cochenour, McKenzie Island, Madsen and Starratt-Olsen. Goldcorp is the largest employer in the community with approximately 1,000 workers and 500 contractors on board.

Goldcorp’s operations, which are all underground, in this area are supported by four headframes and hoists and two milling facilities with a capacity of 2,800 tonnes per day. Red Lake Mines is the largest gold producer among Goldcorp’s multiple operations in Canada, the United States and Latin America. In 2012, Red Lake Mines is expected to produce between 460,000 and 510,000 ounces of gold. In 2012, Goldcorp’s total production from all of its operations is expected to be between 2.35 and 2.45 million ounces of gold.

Army of innovators lines energy’s road to success – by Jameson Berkow (National Post – September 11, 2012)

September 11, 2012

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

The challenges facing Canada’s energy industry — to turn one of the most energy-and emissions-intensive resource extraction processes in the world into something more environmentally sustainable — dwarf the innovation hurdles facing other industries. To overcome them, an interconnected army of innovators is key.

“People always ask me why this is so hard,” said Robert Donahue, a consulting research engineer at the Syncrude Ltd. research-and-development (R&D) centre focusing on the restoration of depleted mine sites to their natural state, and a former University of Alberta geotechnical engineering professor. “I tell them I’m trying to reconstruct the earth and I’m trying to do it without geological time on my side. I need to do it in human time.”

Mr. Donahue is part of a growing collective of PhD-toting, private industry-sponsored academics who have been taking research and development in the energy sector to higher and more commercially viable areas.

In traditionally R&D-intensive industries like technology or pharmaceuticals, academic support often comes from the odd breakthrough in a lab or from networks of scientists working in silos that are disconnected from the industries for which their research is intended.

Talisman shifts focus to profitability as new CEO takes reins – by Claudia Cattaneo (National Post – September 11, 2012)

September 11, 2012

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

In barely 20 years since its spinoff from BP PLC, Talisman Energy Inc. grew into one of Canada’s senior players through a unique mix of corporate raids, shrewd exploration, a global mindset and controversy-be-damned attitude.

From the geologically challenging Alberta foothills to the conflict-ravaged desert of Sudan, to the jungles of Peru to shale deposits in Quebec, Talisman pushed hard if it felt the “rocks” were good — as its founder and former CEO Jim Buckee used to say.

But investors have become increasingly disenchanted, resulting in a low stock price and persistent rumours of a sale that intensified since the announcement in July of rival Nexen Inc.’s sale to CNOOC Ltd. for $15.1-billion. Talisman signaled Monday it’s changing course rather than putting itself on the block.

President and CEO John Manzoni, the BP senior executive hired five years ago to continue in Mr. Buckee’s footsteps, stepped down, and Talisman is now under the steady hand of Hal Kvisle, the former TransCanada Corp. president and CEO and a Talisman board member who came out of retirement to pave the way for a new, more shareholder-focused strategy.

China’s imports shrink as slump worsens – by Joe McDonald (The Associated Press/Toronto Star – September 11, 2012)

September 11, 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.

BEIJING, CHINA—China’s imports shrank unexpectedly in August in a sign its economic slump is worsening and the Chinese president warned growth could slow further, prompting expectations of possible new stimulus spending.

Imports declined 2.6 per cent from a year earlier, below analysts’ expectations of growth in low single digits, data showed Monday. That came on top of August’s decline in factory output to a three-year low and other signs growth is still decelerating despite repeated stimulus efforts.

The weakness in China’s demand for imports is bad news for exporters in Southeast Asia, Australia, Brazil and elsewhere that are counting on its appetite for oil, iron ore, industrial components and other goods to offset anemic Western markets.

Analysts expect Chinese growth that fell to a three-year low of 7.6 per cent in the latest quarter to rebound late this year or in early 2013. But they say it likely will be too weak to drive a global recovery without improvement in the United States, which is struggling with a sluggish recovery, and debt-crippled Europe.