A nickel mine and the missing Placentia processing plant – by Trevor Cole (Globe and Mail – June 24, 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.

It’s amazing how often serendipity plays a role in uncovering a great story. One morning in May of 2000, I’d come back from the cafeteria with a coffee in my hand and I was standing restlessly at my desk at the magazine, where I was a staff writer. I’d finished my work on a previous assignment and it was time to look for the next subject. In the few minutes I’d been gone, a pile of office flotsam had landed on my desk.

It was mostly a collection of press releases and industry publications I’d never bothered to look at. At another time, I might simply have moved the pile on to someone else’s desk. But this time I shuffled through it. And about 10 centimetres down, my eyes landed on an edition of The Charter, a thin, weekly newspaper from the little town of Placentia, Newfoundland.

Who knows what it was doing there; maybe the mailroom had misdirected it. With the mildest sense of curiosity, I began to turn the pages of cheap newsprint, and within a minute, I saw that something was going on in Placentia. Furious letters to the editor, stories quoting tirades by Placentia’s mayor against other town leaders. The anger seemed to have something to do with fallout from the huge nickel discovery six years earlier at Voisey’s Bay, Labrador, some 1,100 kilometres to the north.

Read more

Co-operation accord underscores China’s global gold market ambitions Deal signed in Vancouver at international gold – by Gordon Hamilton (Business Vancouver – June 23, 2014)

http://www.biv.com/

Summit could increase investment in B.C.’s resource sector

China took an important step June 18 toward playing a larger role in global gold markets that could lead to more investment in British Columbia’s mining sector, according to the head of the country’s gold mining association.

Xin Song, chairman of the China Gold Association, said a co-operation agreement signed in Vancouver between the association and the World Gold Council (WGC) is a sign of China’s determination to become a more active player in the global gold industry. China’s emergence can be expected to have an impact on the B.C. mining sector, he said.

The accord between the Chinese association and the gold council, which represents the world’s largest mining companies, was the highlight of a daylong gold summit on the world’s most valuable metal. It’s the first time the London-based gold council has held such a meeting in North America.

“Why in Vancouver? Because Vancouver serves as the gateway to Asia and the Pacific and is a mining capital,” said Song. “Signing in such a venue has international impact for us.” Song, who is also president of China’s largest gold company, China National Gold, singled out B.C. as a destination for investment.

Read more

The strike that saved lives [Elliot Lake] – by Alexandra Lopez-Pacheco (CIM Magazine – June-July 2014)

http://www.cim.org/en.aspx

This year marks the 40th anniversary of the Elliot Lake wildcat walkout

Ontario government representatives 40 years ago presented research linking radiation to lung cancer at a conference in Paris, France. In the audience were several members of the United Steelworkers of America (USW), whose organization had been fighting the mining industry and the Ontario government for improved health and safety at the Denison and Rio Algom uranium mines in Elliot Lake, Ontario. In addition to a high incidence of injuries, hundreds of miners were ill or dying from silicosis and lung cancer, which the union believed was caused by silica dust.

The union representatives were shocked to discover the government had found there was another cause behind the high rates of lung cancer – radiation – and had not bothered to inform miners or to take any action to protect them. The USW members shared the news with their co-workers back in Elliot Lake, and this proved to be the last straw. On April 18, 1974, about 1,000 miners from Denison went on a three-week wildcat strike.

“I think the conference, combined with the general dissatisfaction with the occupational health and safety regulations and laws in the province at that time, caused the strike,” says Fergus Kerr, now vice-president of operations at Global Atomic Fuels Corp., who joined Denison in 1977 and became its general manager a decade later.

The strike drew the attention of the media, the public and Ontario’s politicians. Mining health and safety suddenly became a hot-button issue.

Read more

Augusta Resource Corp agrees to HudBay Minerals Inc sweetened takeover offer – by Peter Koven (National Post – June 23, 2014)

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

It took four and a half months of hostilities and the sighting of a rare wild cat. But in the end, HudBay Minerals Inc. got just what it wanted.

The Toronto-based miner unveiled a friendly deal on Monday to buy Augusta Resource Corp. for about $555-million in shares and warrants. And to the surprise of many observers, it only had to boost its original hostile bid by 10% to get the deal done.

When HudBay made its initial offer in February, Augusta chief executive Gil Clausen said it had “no chance of success.” Augusta’s shares were trading far above the bid, and the company thought it would receive all the key permits for its Rosemont copper project in the first half of 2014. That was expected to be a key catalyst for the stock price.

HudBay maintained that Augusta’s permitting timeline for the Arizona-based project was too optimistic. That turned out to be correct — but not for any reason HudBay expected.

Last month, an ocelot was photographed near the Rosemont project site. It is highly unusual for these wild cats to be spotted as far north as Arizona, and as a result, the U.S. Forest Service requested a new round of consultations on the project before permitting would be granted.

Read more

Canada targets South Africa as priority market in Africa – by Geoffrey York (Globe and Mail – June 24, 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.

JOHANNESBURG — South Africa might be strike-plagued, on the brink of recession and refusing to sign any foreign investment treaties these days, but it will remain the linchpin of Canada’s economic strategy on the African continent, International Trade Minister Ed Fast says.

South Africa was officially overtaken by Nigeria this year as the biggest economy on the continent, but Mr. Fast is not ready to accept the new Nigerian numbers. He says Canada will keep betting on South Africa as its top priority market in Africa.

“I know Nigeria is now claiming to be the largest economy,” Mr. Fast said in an interview in Johannesburg on Monday. “Before we draw any conclusions about that, I think you’d have to allow a number of years to go by. South Africa clearly has been the economic leader in Africa.”

Mr. Fast is in the midst of a 10-day tour of four African countries: Burkina Faso, Madagascar, Tanzania and South Africa. Canada has become the biggest foreign investor in two of those countries, Madagascar and Burkina Faso, because of its multibillion-dollar investment in the gold-mining sector in Burkina Faso and nickel mining in Madagascar.

Read more

Yamana struggles to find buyers for Brazil mines – by Boyd Erman and Rachelle Younglai (Globe and Mail – June 23, 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.

Yamana Gold Inc. has been trying to sell mines in Brazil for months, but is struggling to drum up interest in all the properties, people familiar with the matter say.

The Toronto-based company put its three mines in Brazil up for sale at the beginning of the year and hired Royal Bank of Canada to run the process, the sources said. A spokesman for Yamana declined to comment.

The Chapada, Jacobina and Fazenda Brasileiro mines are nearing the end of their lives and are facing problems. They have a combined net asset value of about $3-billion (U.S.), according to a recent report from Canaccord Genuity.

“I am not surprised that people have passed on it because they are very mature mines,” said John Ing, the president of investment firm Maison Placements Canada. “Jacobina has never worked right. Chapada has been a disappointment and Fazenda is very small.”

Yamana was previously focused on building its portfolio in South America until it teamed up with another Canadian miner to buy half of Osisko Mining Corp.’s large gold mine in Quebec.

Read more

Dearth of aboriginal-owned businesses is bad for resource firms – by Barrie McKenna (Globe and Mail – June 23, 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.

OTTAWA — Connie Saliwonczyk is a rarity in Canada – an aboriginal female entrepreneur and a firm supporter of the Northern Gateway pipeline.

Her endorsement of Enbridge Inc.’s pipeline is born out of naked economic self-interest. Her company, based in Alberta’s Frog Lake First Nation, operates various oil patch service vehicles, including a vacuum truck for cleaning up small oil spills. She would be in line to bid for work if the pipeline gets built.

“As a businessperson, it would definitely benefit me,” she said. “And it benefits people on the reserve because I hire First Nations people. For me, it’s showing people that anybody can do it.”

Ms. Saliwonczyk notwithstanding, Northern Gateway now faces a potentially drawn-out legal fight with First Nations, primarily in B.C., that could stall or even block the pipeline, thwarting the dream of getting oil sands crude to the Pacific Coast and on to Asian markets.

Read more

Elko-area mines still thriving despite continued slide in gold prices – by Sean Whaley (Las Vegas Review – Journal – June 21, 2014)

http://www.reviewjournal.com/

ELKO — Nevada’s mining industry might be taking a hit right now because of low gold prices, but walk through this city on any weekday about 6 a.m. and you wouldn’t know it.

Workers in pickups and mining rigs, most of them with the ubiquitous red warning flags called buggy whips, crowd Idaho Street, the main drag. Long lines of traffic roll in from the residential areas south of town along the Lamoille Highway as locals head to the mines for another workday.

Gold prices have plunged over the past 18 months, dropping from a high of about $1,800 an ounce in 2012 to about $1,315 Friday, but don’t tell the people of this mining-centric town in northeastern Nevada. Although some operations are struggling to stay open, here the boom continues for the most part unabated.

Mining is the ninth largest economic sector in Nevada based on gross domestic product, according to the U.S. Commerce Department. There were 12,600 direct mining jobs in Nevada in 2012.

Read more

B.C. Developers Defend Near-Border Mines – by Ed Schoenfeld (Alaska Public Media – June 18, 2014)

http://www.alaskapublic.org/

We’ve heard a lot about mines planned for northwest British Columbia, just across Alaska’s border. Southeast tribal, fishing and environmental groups have blasted those plans. Critics say they’ll pollute rivers that cross the border, damaging or destroying salmon and other fish runs.

Much of the recent focus has been on what’s called the Kerr-Sulphurets-Mitchell or KSM Project, being developed by Seabridge Gold. The site, which also includes copper, is roughly 80 miles east of Wrangell.

Critics say it could damage the Unuk River, which flows into the ocean northeast of Ketchikan. Seabridge says that’s not the case. Brent Murphy is the corporation’s vice president of environmental affairs

“The concern with minimizing downstream environmental impacts has been the guiding principal behind the whole design of the mining project,” Murphy says. Critics say the KSM could be about the same size as the proposed Pebble Prospect, a controversial mine proposed for Southwest Alaska.

They worry about plans for huge, dammed tailing lakes that could leak or break, sending acidic water into nearby streams and rivers.

Read more

COMMENT: Who is anonymous and why is he saying all these nasty things? [African Barrick] – by Marilyn Scales (Canadian Mining Journal – June 19, 2014)

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

The story broke in the June 18 issue of the Wall Street Journal that African Barrick has been accused of paying bribes to officials of the Tanzanian government to facilitate the company’s purchase of land near the North Mara gold mine.

The problem is that the accusation was made anonymously. Why does this person or persons want to hide their identity?

Several explanations come to mind. The accusers may fear reprisals for blowing the whistle. They may not have supporting evidence. They may want to defame African Barrick for a personal reason. They may be hoping to stir up trouble with local communities. Sending the accusations to the US Justice Department and US Securities and Exchange commission, as the accusers did, is a clear attempt to stir up legal trouble.

Making anonymous accusations is cowardly. If the accusations are true, the accuser should stand behind his opinion and offer proof. Not doing might weaken the case, except there are far too many people willing to think the worst of a foreign company in a poor country.

The very idea of an anonymous accusation goes against this writer’s sense of fair play.

Read more

Gold Miners Feel Lucky in Search for Nevada Buried Riches – by Liezel Hill (Bloomberg News – June 18, 2014)

http://www.businessweek.com/

It’s not just gamblers, celebrity chefs and brides-to-be that find Nevada irresistible. About 400 miles north of the Las Vegas strip, the world’s two biggest gold producers are doing some prospecting too.

Even after more than a century and a half of exploration, Barrick Gold Corp. (ABX) and Newmont Mining Corp. (NEM:US) say there’s plenty of hidden gold still to be uncovered in Nevada, which already accounts for a third of their output and produces more of the metal than South Africa and Chile combined. The miners are refining exploration techniques, while looking deeper and in areas they’d previously dismissed to find new resources.

“In a lot of ways, even as mature as northern Nevada is, it’s still young from a discovery standpoint,” said Doug Livermore, Newmont’s regional project director for North America. The state accounts for more than 6 percent of global gold production.

With the 28 percent drop in gold prices last year forcing miners to look for lower-cost ways to increase output and cut exploration budgets, companies such as Barrick and Newmont are focusing more on existing holdings. Nevada’s deposits also offer lower investment risk than mines in less politically stable regions of the world.

One of the two potential new mines that Greenwood Village, Colorado-based Newmont is considering is in Nevada.

Read more

Vancouver-based Tahoe Resources faces lawsuit over violence at Guatemala mine – by Derrick Penner (Vancouver Sun – June 18, 2014)

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

Seven men allege they were shot at close range during a peaceful protest

A group of men wounded last year during a protest outside a Guatemala mine is suing the Vancouver-based mining company, Tahoe Resources Inc., in British Columbia Supreme Court arguing it should be held liable for the alleged violent action against them.

It is the first time a Canadian company has been sued in B.C. for events that occurred at operations outside of Canada, but it follows from three suits against Toronto-based Hudbay Minerals, which were accepted to proceed to trial by an Ontario Superior Court Judge last year, also related to alleged violent incidents in Guatemala.

Together, the suits are part of increasing efforts of non-government organizations seeking greater accountability from Canadian mining companies operating abroad.

“The plaintiffs feel like they’ve not got justice for what happened to them (in Guatemala),” said Matt Eisenbrandt, legal director for the Canadian Centre for International Justice.

Read more

Quebec’s key asset: Ressources Québec’s $1 billion fund helping local projects advance – by Antoine Dion-Ortega (CIM Magazine – June/July 2014)

http://www.cim.org/en.aspx

In April, Montreal-based Stornoway Diamonds put together $944 million in financing, clearing the way to build its Renard diamond mine. As part of the deal, the company secured $220 million from a relatively new subsidiary of the Quebec government, Ressources Québec, and another $105 million from the Caisse de dépôt et de placement du Québec, for a total of $325 million in government funding – a little more than one third of the total construction cost. “The successful completion of these transactions will remove the last remaining financing risk for the project and allow principal project construction to commence,” said Stornoway CEO Matt Manson, when the financing was announced.

Ressources Québec (RQ) was born just two years earlier, as a subsidiary of Investissement Québec (IQ). Jean Charest’s Liberal government set aside $1.2 billion to invest in oil and gas and mining projects through the new body. To try to maximize Quebec’s benefits from the extractive sector, RQ would gather up the government’s $236 million in existing holdings and invest $1 billion more in future projects. Despite two provincial elections and a fair amount of political debate over mining regulations, RQ has become a key player in the financing of new projects in Quebec.

“RQ was the cornerstone of our fundraising,” said Benoit Gascon, president and CEO of Mason Graphite, which completed two funding agreements for a total of $15.6 million on April 28 to advance its Lac Guéret graphite project. “They said: ‘We’re here. Go get the rest, but we’re here.’” RQ’s $3-million investment in the project convinced other brokers of its solidity, he explained. “RQ was clearly the big boost that enabled us to close the campaign on time, and with much more money than we had expected.” Mason Graphite plans to complete its feasibility study in early 2015. Currently, its project has estimated Measured and Indicated Resources of more than 50 million tonnes with an average graphite grade of 15.6 per cent.

Read more

Editorial: Ring road of fire? – by John Cumming (Northern Miner – June 18, 2014)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists.  jcumming@northernminer.com

The surprisingly strong majority win by Ontario Premier Kathleen Wynne and her Liberal party in the provincial election in mid-June has given a boost to potential infrastructure development in the Ring of Fire chromite and base metals camp in northern Ontario.

On the campaign trail and in interviews after the big win, the premier and Finance Minister Charles Sousa spoke many times of the need for the provincial government to spend upwards of $1 billion to open up the camp and spur long-term economic growth in the province’s far north, particularly among the region’s nine First Nations communities.

This pro-Ring of Fire stance contrasted with the second-place Progressive Conservative Party, which promised cuts to the provincial budget, including an end to “corporate handouts” — additional corporate tax cuts notwithstanding.
Voters in the province had a choice between a smaller, leaner government and an activist, progressive one, and they voted en masse for the latter, to the benefit of those promoting Ring of Fire mining projects.

And so the timing was particularly good for a newly released think piece by Nick Mulder through Thunder Bay’s Northern Policy Institute that promotes an “airport–port transportation authority model” as the most applicable corporate body to oversee any new infrastructure into the Ring of Fire.

Read more

Coal mining could make comeback in Crowsnest Pass – by Sam Dodson (World Coal.com – June 19, 2014)

http://www.worldcoal.com/

Straddling the border of Alberta and British Columbia, just south of Calgary, the Crowsnest Pass boasts a rich history of coal mining, dating back to opening of the first mine in 1900. Over the course of the 20th Century, all the coal mines on the Alberta side of the Canadian municipality closed, as the companies that operated the mines struggled with fluctuating coal prices, bitter strikes and industrial action, as well as fallout from underground accidents. A single coal mine operates just across the British Columbia border in Sparwood.

All this could be set to change, however, after a Calgary-based company received regulatory approval to begun exploratory drilling.

Altitude Resources Inc. has been granted permission from the Alberta Energy Regulator to drill four to six core holes for the purpose of coal quality analysis. The drilling programme, with an estimated budget of C$ 1.5 million, will begin as early as August or September.

“It’s the first step in a long process of technical work that we need to do,” said Altitude president and CEO Gene Wusaty. “If the coal quality is what we believe it is, then the next step is go out there and try to prove our resource target tonnage by doing a bunch more drilling.”

In 2013, Altitude Resources announced the formation of an alliance with Elan Coal Ltd, a privately-owned Canadian coal exploration and development company.

Read more