British Columbia Mining – Page 57

NEWS RELEASE: BC mining industry financial results dip in 2013

May 14, 2014

http://www.pwc.com/ca/en/index.jhtml

Some industry insiders believe the worst may be over

Click here for the report: http://www.pwc.com/ca/en/mining/publications/pwc-mining-industry-british-columbia-2014-05-en.pdf

VANCOUVER, May 14, 2014 — British Columbia’s mining industry faced significant headwinds in 2013 continuing the slide from a peak in 2011. While total shipments were higher in 2013 than 2012, revenues and earnings were down, according to the PwC BC Mining Industry Survey for 2013.

“In 2013 we saw investment in B.C.’s mining industry remain depressed as prices for its key commodities such as coal, copper, zinc and moly remained soft,” said Mark Platt, survey co-author and leader of PwC’s BC mining practice. “Producers hunkered down to minimize costs as they were hit with increased electricity rates, commodity market volatility, a skilled labour shortage and the additional costs of B.C.’s return to a PST and GST system last year.”

Fully automated mines ‘a distinct possibility’ – by Shawn Conner (Vancouver Sun – May 13, 2014)

May 14, 2014

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

Safety concerns drive mining industry to embrace mechanized performance of repetitive tasks

Increasingly, the mining industry is turning to robotics. In some parts of the world, drones and driverless trucks are being used for mining operations. In B.C., most of the robotics so far are used in drilling. “Underground, we are further ahead than across Canada in terms of either using robotic or semi-autonomous-type pieces of equipment, particularly with drills,” said John Thompson.

A part-time professor at Cornell University, Thompson is the founder of PetraScience Consultants Inc. and is a Chair at the Canada Mining Innovation Council. Many of the machines used for drilling at the New Afton copper-gold mine west of Kamloops are automated or partly robotic.

“Our jumbo drills are semirobotic,” said Sean Masse, mine manager for New Afton, which has both open pit and underground operations. The big Sandvik drills are 12.5 metres long, two metres high and three metres tall. The 21.8-tonne drills bore the holes for the explosives that blast ore free.

“Our surveyors will draw up a design for how the drilling should go, and then we put that card into the jumbo’s computer, and the jumbo will automatically take the drill-bit to where the hole is supposed to be on that pattern. The only thing the operator does is make sure it’s not going to drill into where there’s a remnant of the last (explosive) round.”

Opinion: Change is challenge for mining – by Phil Hopwood (Vancouver Sun – May 12, 2014)

May 13, 2014

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

Phil Hopwood is the Canadian mining sector leader at Deloitte.

Canada’s mining companies must embrace innovation and improve productivity to ensure their future success

As we enter BC Mining Week, it is an appropriate time to take an honest look at the state of the industry in the province. Mining is one of British Columbia’s vital resource industries. It contributed $9.2 billion to the provincial economy in 2012 and it is very much an industry in flux.

Historically, mining companies have waited out the storm as markets have swung, but this time it is different. We are seeing it is imperative for these companies to adjust their way of doing business if they want to survive and thrive. Mining firms continue to be confronted with the compounding challenges of cost inflation, falling commodity prices, supply-demand imbalances and decreased productivity levels.

As skilled workers retire from the workforce, and we continue to see the number of graduates in degrees such as mining engineering decline, mining companies, especially in B.C., need to embrace innovation and revise their core systems and processes while applying new approaches to financial, safety and talent management programs as well as external relations with communities, governments, shareholders and regulators.

Pierre Lebel powers Red Chris mine toward production – by James Kwantes (Vancouver Sun – May 6, 2014)

May 7, 2014

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

‘Finding a way’ to build B.C.’s next mine included a foray into power line construction for Imperial Metals

VANCOUVER — Imperial Metals chairman Pierre Lebel is on the cusp of opening a copper-gold mine, Red Chris, that the company won in a bidding war, financed and developed from an exploration project.

Once it goes into full production in the fall, B.C.’s next mine will employ about 270 people in an area with high unemployment and produce 88 million pounds of copper and 52,700 ounces of gold annually. Not bad for an “accidental” mining executive.

Lebel grew up in the mining hotbed of Sudbury, Ont., but his passion was law. After earning his MBA and a law degree, however, a call from a friend led to Calgary and a job with a small uranium prospect generator called E & B Explorations. That was in 1978.

“Before you know it, you’re doing less and less law and more and more business, and learning as you go along,” Lebel said during a recent interview in Imperial’s Vancouver offices.

E & B became Imperial Metals, and the young lawyer’s temporary gig led to a mine-building career at the helm of a public company that — once Red Chris is up and running — will employ about 900 B.C. residents at three mines.

Conflict Will Be The Norm If Mining Company Ignores Our Concerns – by Annita McPhee (Huffington Post – May 5, 2014)

May 6, 2014

http://www.huffingtonpost.ca/

Annita McPhee is the President of the Tahltan Central Council.

In a pristine corner of northwestern B.C. called the Klappan, a drama is unfolding that might seriously compromise the relationship between First Nations and the booming natural resource sector in B.C.

The 4,000 square-kilometre region southeast of Iskut is called the Sacred Headwaters by Tahltan people because it is the source of three wild salmon rivers — the Skeena, Nass and Stikine — and because it has been full of life for thousands of years. Tahltan people consider the Klappan to be Earth’s birthplace and it’s a well-travelled, traditional hunting ground that carries significant cultural, spiritual and social values for the Tahltan Nation.

Our territory is also rich in mineral and energy resources and that has led to both success stories and conflict as the province and private companies have sought to exploit the natural resources of our territory.

Our people support responsible development that protects the environment and respects Tahltan rights and traditional uses. Companies that understand this, and that commit to working with us in deciding how to use the resources of our territory, have thrived.

Asian coal demand is set for robust revival, study says – by Brent Jang (Globe and Mail – May 5, 2014)

May 5, 2014

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.

SEATTLE — Global coal markets are depressed amid a supply glut, but reports of the commodity’s demise have been greatly exaggerated, a new study says.

Prices for thermal coal, a commodity used by power plants to generate electricity, fell recently to less than $75 (U.S.) a tonne, compared with $190 in mid-2008. And prices for metallurgical (or coking) coal, a key ingredient used in the production of steel, have tumbled to $120 a tonne, from $300 in late 2011.

Some industry observers have warned that there will be many more dark months ahead for the coal industry. But the long-term forecast calls for robust Asian demand, which should give producers hope, as long as they are able to ride out the tough times.

“Despite increasing environmental opposition to the use of coal, coal still plays a crucial role in the global energy mix and will continue to do so for the foreseeable future,” according to a study by Shoichi Itoh, senior analyst at the Tokyo-based Institute of Energy Economics. “The importance of coal use will be all the more important in Asia.”

Alaska Natives and First Nations Unite to Halt B.C. Mine That Threatens Salmon Habitat – by Paula Dobbyn (Indian Country: Today Media Network.com – May 2, 2014)

May 2, 2014

http://indiancountrytodaymedianetwork.com/

It has become an all-too-familiar story: Pristine waters. Salmon habitat. Sacred significance. Mining.

The Unuk River watershed, straddling the border between British Columbia and Alaska, is on track to become ground zero in a struggle to stop the world’s largest open-pit mine, Kerr-Sulphurets-Mitchell (KSM). The fight against it is uniting First Nations and Alaska Natives as they battle to preserve stewardship of the pristine region. And it is just one of five massive projects proposed for the region.

If KSM secures the financing and the regulatory go-ahead, the giant mine would turn 6,500 acres of pristine land into an industrial zone that would generate more than 10 billion pounds of copper and 38 million ounces of gold, according to a project summary. As with any large mine, it would employ a hefty workforce—in this case mostly Canadians—and create taxes and royalty payments for Canada. But it would also produce a slew of waste. And that’s what critics say downstream Alaska communities stand to take on: none of the economic benefits but much of the environmental risk.

With its remote headwaters in British Columbia, the Unuk River is one of the world’s most prolific salmon waters. An international river, the Unuk flows into neighboring Southeast Alaska and its temperate rainforest, the 17-million-acre Tongass National Forest, a place of towering coastal mountains, tidewater glaciers and fog-shrouded islands.

Price slump hits B.C. coal miners – by Brent Jang (Globe and Mail – April 16, 2014)

April 16, 2014

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 — A devastating price slump is hammering British Columbia’s coal sector as a U.S.-based company halts mining in the province while other players face mounting pressure.

Walter Energy Inc. highlighted the troubles Tuesday when it announced its decision to stop B.C. mining until coal prices recover.

Last week Virginia-based James River Coal Co. filed for bankruptcy protection in the United States, underscoring tough times in the global industry.

The coal industry has traditionally been a key driver of B.C.’s economy, with companies generating billions of dollars in revenue every year and employing thousands of workers. Now producers are starting to question the viability of their projects as prices hit new lows.

In 2011, coal prices soared to $300 (U.S.) a tonne. Prices for metallurgical coal have since tumbled to roughly $120 a tonne, hurt by ample new supplies from Australia, slower-than-forecast economic growth in China and a shift away from long-term coal pricing contracts that had provided some stability.

More grassroots prospecting investment required in BC – by Henry Lazenby (MiningWeekly.com – April 14, 2014)

April 15, 2014

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Investment in the grassroots level of prospecting and early-stage exploration are critically needed in British Columbia to uncover new deposits that, in turn, would encourage more investment in advanced exploration and resource development, the Association for Mineral Exploration British Columbia (AME BC) president and CEO Gavin Dirom said.

He told Mining Weekly Online that despite the province attracting significant investment in advanced-stage exploration and resource development, there is a critical need for more investment in grassroots level prospecting to ensure that the province’s mining output remains on an upward growth trajectory.

MONEY MAKES THE DRILLS GO ROUND

Dirom said that British Columbia had succeeded in recent years in attracting more exploration investment. He said the province had managed to lift investor confidence in the past five years or so, attracting more investment than what it typically did in the past, which was a significant development.

UPDATE 4-Osisko takeover battle heats up as Goldcorp raises offer – by Allison Martell and Nicole Mordant (Reuters U.S. – April 10, 2014)

April 11, 2014

http://www.reuters.com/

Osisko Mining Corp on Thursday, squeaking above a white knight bid by Yamana Gold Inc and heightening a bidding war that has helped inject life into a depressed gold mining sector.

Vancouver-based Goldcorp, the world’s second-biggest gold miner by market value, said early on Thursday it increased its offer for Osisko by some 38 percent to about C$3.6 billion ($3.3 billion), or C$7.65 a share.

Osisko is a smaller Canadian gold miner with one producing mine, Canadian Malartic in Quebec. The mine is an attractive asset as it is large and low-cost and located in a stable political jurisdiction.

Goldcorp shares fell nearly 4 percent following the news, reducing the value of its cash-and-stock bid to around C$7.47 a share. Still, the offer remained around 4 percent higher than Yamana’s cash-and-shares offer, based on analysts’ estimates.

Yamana, another Canadian gold miner, launched a complex offer for 50 percent of Osisko’s assets last week. It said at the time that its offer was valued at C$7.60 a share although analysts have pegged it lower than that. Some Osisko shareholders said the new Goldcorp bid was no blockbuster.

Goldcorp Inc hikes hostile bid by $1-billion, but Osisko Mining Corp. still favours Yamana – by Peter Koven (National Post – April 11, 2014)

April 11, 2014

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

TORONTO – The shareholders of Osisko Mining Corp. face a tricky choice: take the clean takeover bid and walk away, or take a more complex deal with a disputed value that management firmly believes is better.

Goldcorp Inc. hiked its hostile bid for Montreal-based Osisko on Thursday to $3.6-billion, or $7.65 a share in cash and stock. The dollar value is roughly $1-billion more than Goldcorp offered in January, when its own share price was significantly lower.

That bid is going up against the multi-faceted transaction Osisko unveiled last week with Yamana Gold Inc., in which Yamana will buy 50% of Osisko’s assets and Osisko will receive funding from two pension funds. The result is that Osisko would distribute about $1-billion to shareholders while continuing to operate its flagship Canadian Malartic mine in Quebec.

To determine which offer is better, investors must decide what they think the new Osisko would be worth after the Yamana transaction. And that is a source of considerable debate. When Osisko announced the deal with Yamana, it assumed a valuation for the new Osisko (“Osisko 2” or “O2”) of $3.35 a share. That gave the whole transaction a value of $7.60 a share, which is very close to Goldcorp’s bid.

Vancouver is biggest winner when forests, farms and mines do well – by Don Cayo (Vancouver Sun – April 9, 2014)

April 10, 2014

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

A lot of city slickers underestimate the value of resources to the B.C. economy, but a new think-tank makes the case that it is Metro Vancouver that benefits most when traditional hinterland industries prosper and grow.

“An initial boost to natural resources in B.C. spreads to other industries through demand for inputs or more spending induced by higher incomes,” writes Philip Cross, formerly StatsCan’s chief economic analyst, in a paper released today by Resource Works, a newly minted, Vancouver-based think-tank that intends to specialize in resource-related issues.

“The income and jobs this generates enriches all of B.C., especially the Lower Mainland,” Cross writes. “It is the cities that provide the wide range of financial, business and even transportation services used by the resource sector. It is also in the cities where the higher incomes in the resource sector and its spinoffs are spent on a wide range of retail and personal services.”

Cross bases his conclusions on sophisticated forecasting techniques developed by StatsCan — a combination of labour market analysis and a detailed analysis of tax records that document purchases by resource firms from suppliers. This not only provided “a precise accounting of all the inter-relationships among industries needed to produce all goods and services in Canada,” but also allowed him to look at how the benefits are shared among regions and provinces.

Goldcorp sweetens hostile Osisko bid to $3.6-billion – by Bertand Marotte and Rachelle Younglai (Globe and Mail – April 10, 2014)

April 10, 2014

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.

MONTREAL/TORONO — Goldcorp Inc. is raising its hostile bid for Osisko Mining Corp. to $7.65 per share or $3.6-billion in an attempt to knock out a friendly deal between Osisko and Yamana Gold Inc.

Vancouver-based Goldcorp said on Thursday its offer now stands at 0.17 of a Goldcorp common share plus an increase in the cash portion of its offer to $2.92 for each Osisko share, from 0.146 and $2.26 respectively.

Goldcorp’s previous unsolicited bid was valued at about $6.30 per share. The agreement between Montreal-based Osisko, Yamana and two of Canada’s biggest pension funds is valued at $7.57 a share. The key asset Goldcorp is after is Osisko’s Canadian Malartic gold mine in northwestern Quebec.

Osisko chief executive officer Sean Roosen said Goldcorp’s offer is an improvement but does not sufficiently value Malartic’s potential. “It’s more respectful but it certainly doesn’t offer the same potency and the upside to Canadian Malartic that the Yamana-Osisko bid does,” he said in an interview.

The Monumental Copper Disconnect – by Christopher Pollon (TheTyee.ca – March 28, 2014)

April 2, 2014

http://thetyee.ca/

Click here for the entire series about copper: http://thetyee.ca/News/2014/03/24/Travels-with-Copper/

Billions to mine, refine and assemble into products that last maybe a year or so? Last in a series.

LANGLEY, B.C. — Not long ago this industrial park was farmland: now it’s home to a virtual mine harvesting metal, plastic and glass from all the electronics British Columbians throw away.

For anyone who has ever disposed of a cell phone, hair dryer or appliance at a B.C. drop-off box, this is where some of it goes: a graveyard of sorts, where “end-of-life” products take the first step toward life anew. In any given month, a million pounds of “e-waste” comes through this plant alone.

Cindy Coutts is the President of Sims Canada, a subsidiary of the biggest urban “mining” company on earth. Walking through the Walmart-sized plant (which will double to 60,000 square feet this year), she grabs a printed circuit board the size of a coffee table book and holds it up. Gold and copper gleam against a green backing.

Welcome to Peak Copper – by Christopher Pollon (TheTyee.ca – March 28, 2014)

April 2, 2014

http://thetyee.ca/

Click here for the entire series about copper: http://thetyee.ca/News/2014/03/24/Travels-with-Copper/

It’s not far off. So, why aren’t there more operations like this one in BC’s north? Fifth in a series.

FORT ST. JOHN, B.C. — The stretch of Highway 97 in the northeastern B.C. Interior between Dawson Creek and Fort St. John is an odd place for a two-kilometre traffic jam — until you consider that this roadway straddles a resource boom.

Gregg Drury is idling his pick-up on a July morning amid logging trucks, oil field suppliers and RVs, trying to get to the metal salvage yard he operates for ABC Recycling near Fort St. John. He’s doing a huge business these days buying all the metal discarded from old farms, local residents, and more than anything else, the oil patch.

“They’re generating incredible amounts of waste up here,” he says. “From pipelines, I get all that steel, but when they tear a plant down for instance, there’s lots of aluminum, stainless steel, and excess copper and wire.”

The metal salvage yard buys thousands of pounds of copper each day. It’s a tiny part of the business by volume, but huge in dollar value. Steel fetches about eight cents a pound, aluminum about 40 cents; copper, anywhere from $2 to 2.40.