Canadian/International Media Resource Articles – Page 10

First Nations resource development group stalled by the AFN – by Laura Stone (Global News – July 10, 2013)

July 11, 2013

OTTAWA – A government working group set up to ensure aboriginals share the benefits of natural resource development is more than a month behind schedule because the Assembly of First Nations has yet to nominate its members.

The delay comes after the previous incarnation, a joint economic task force, fell apart last November after two AFN appointees quit, according to briefing notes released to Global News under access to information.

The creation of a working group was among the pledges made at this year’s Jan. 11 meeting between Prime Minister Stephen Harper and National Chief Shawn Atleo, and reflects a similar commitment made at the 2012 Crown-First Nations gathering.

The four-member group, with two members and co-chairs each nominated by the AFN and the department of aboriginal affairs, was supposed to start its seven-month term on June 1.

But that hasn’t happened. The federal government has picked its members, but the AFN has not. Once the nominees are in place, Aboriginal Affairs Minister Bernard Valcourt will make the appointments, the note says.

SA gold production plunges, total mining output down 0.7% – by Natasha Odendaal (MiningWeekly.com – July 11, 2013)

July 11, 2013

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

JOHANNESBURG (miningweekly.com) – Statistics South Africa (Stats SA) on Thursday said that mining output during May decreased 0.7%, after a 0.7% revised year-on-year improvement in April.

Gold production emerged as the highest contributor, at -2.4 percentage points, to the decline, while manganese ore, contributing 1.5 percentage points, was a significant positive contributor.

Investment bank Investec’s Kamilla Kaplan commented: “There was a continuation of the trend in gold production that has been in place for much of the last decade. Specifically, that production remained in contractionary territory”.

Gold output, which has been falling since May 2011, plunged 14.6% year-on-year during the month under review, compared with a 3% year-on-year decline reported in April. The gold sector remained a key mineral export, accounting for 8.8% of total export revenues in the first five months of this year.

“At the prevailing gold price, gold miners are already under pressure to sustain operations and will struggle to grant double-digit wage increases sought by the unions [in this year’s wage negotiations],” Kaplan pointed out.

Wave of sackings at nickel mine swamps Forrest’s Poseidon adventure – by Andrew Burrell (The Australian – July 11, 2013)

July 11, 2013

http://www.theaustralian.com.au/business

POSEIDON Nickel chairman Andrew Forrest’s bid to revive the historic Windarra project in the face of worsening nickel prices appears to have suffered a blow after more than 40 contractors were sacked amid speculation the company is attempting to preserve cash.

The suspension of drilling at the Windarra nickel site this week comes after Mr Forrest, the 32 per cent owner of Poseidon, and chief executive David Singleton returned empty-handed from New York last month following a bid to secure about $200 million in debt financing for the project. The job losses at Poseidon follow a wave of redundancies at other mining companies and contractors in the wake of weaker commodity prices.

Sources close to contracting firms at the Windarra site in Western Australia’s Goldfields told The Australian yesterday that about 45 workers were “completely shocked” to be told they had been sacked on Tuesday. They said the move was sudden and contracting firms working at the site had not been previously advised of any shutdown. “They even woke up people who were on night shift to tell them they’d been sacked,” said one worker.

Those made redundant include geologists, geotechnicians, drillers, field assistants, shift bosses, cleaners and caterers. At the meeting on Tuesday, the workers were told that technical problems involving dewatering at the site had forced the shutdown, but that Poseidon Nickel would work to fix the issue.

Anglo American chief warns on S Africa mining talks – by Andrew England (Financial Times – July 10, 2013)

July 11, 2013

http://www.ft.com/home/us

Mark Cutifani, chief executive of Anglo American, warned on Wednesday that the wage negotiations beginning in South Africa’s mining sector will determine not only the future of the industry, but also the future of the continent’s largest economy.

Speaking to the Financial Times a day before gold miners open salary talks, Mr Cutifani said: “[I am] worried for South Africa, I’m worried for the industry and I’m worried for the people. We have got to get the balance right”.

The mining industry in South Africa is entering two-yearly wage negotiations as many companies are still recovering from a weeks of wildcat strikes last year. That unrest is estimated to have cost the industry more than R15bn ($1.5bn) in lost revenue, while some 50 people were killed in strike-related violence.

How the wage talks proceed is seen as a major test for the country’s fragile labour relations, with concerns that any further unrest could have a contagion effect on other sectors.

“The period we are in now is the most important period I’ve seen in my time here in the [South African] industry – it is so critical for the future of the industry and the future of the country,” said Mr Cutifani, who is also president of the South African Chamber of Mines.

Falling metal prices stifle [Ontario] mining exploration – by CBC News Sudbury (July 10, 2013)

July 11, 2013

http://www.cbc.ca/sudbury/

Northern Ontario prospector’s association says its been decades since the industry has been hit this hard

The mining sector is in a cycle of uncertainty and exploration companies are taking the greatest hit, says the president of the Porcupine Prospectors and Developers Association.

Dean Rogers said exploration companies are having difficulties attracting investment — and most aren’t raising enough money to operate.

“No one really has a crystal ball to know just when the cycle will repeat itself,” he said. “It doesn’t appear there’s any need for metals at this time. Industry has slowed down, [and] people aren’t building.” Some junior companies face bankruptcy or have been forced to amalgamate with larger companies, he noted.

Rogers said it has been decades since the industry has been hit this hard, “back in the early 80s, when we were into another sort of recession.”

Ontario’s last chance to revive the Ring of Fire – by Martin Regg Cohn (Toronto Star – July 11, 2013)

July 11, 2013

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.

Will the Ring of Fire, a 4,000-square-kilometre mineral find in the Far North, ever get off the ground?

It was supposed to be Ontario’s next big thing — a $50-billion lucky star. But after years of hype, the Ring of Fire is back on the backburner — far off in time and space.

Plans to build chromite mines in the middle of nowhere, 500 kilometres north of Thunder Bay, are going nowhere fast. The biggest private backer has backed out for now, complaining of government dithering and aboriginal dickering.

Will the Ring of Fire, a 4,000-square-kilometre mineral find in the far north, ever get off the ground? Improbably, two white-haired lawyers from Toronto are trying to restore the flame: They are two hired guns negotiating against each other to find common ground over this remote territory.

Bob Rae represents the First Nations of the Far North. After serving as an unpaid adviser since March, he quit last month as a Liberal MP to take it on full-time.

UPDATE 1-Guatemala seek 2-year moratorium on new metal mining – by Mike McDonald (Reuters U.S. – July 10, 2013)

July 11, 2013

http://www.reuters.com/

(Reuters) – Guatemala President Otto Perez asked the country’s congress on Wednesday to impose a two-year moratorium on new mining licenses to calm tensions in mostly indigenous communities opposed to the industry.

“We are bringing a bill to congress in which we declare a two-year moratorium,” Perez said in a speech late Tuesday night. “We are asking congress to not give any more metal-mining licenses.”

In May, Guatemala’s government declared an emergency in four towns, suspending citizens’ rights to protest in an area where people died during demonstrations against the Escobal silver mine belonging to Canadian miner Tahoe Resources Inc.

Tahoe Resources received the final operating permits in April for its Escobal mine. The company’s top executive, Kevin McArthur, has said he does not expect the project to be affected by the moratorium request.

Government officials said they hope the request for the moratorium will also encourage congress to consider reforms to Guatemala’s mining law, including a proposal presented last year to hike mining royalties from 1 percent of a company’s gross income to 5 percent.

AFRICA INVESTMENT-South African miners demand leap to “living wage” – by Ed Stoddard and Benon Oluka (Reuters India – July 10, 2013)

July 10, 2013

http://in.reuters.com/

JOHANNESBURG, July 10 (Reuters) – “A living wage” is the battle cry of South Africa’s Association of Mineworkers and Construction Union (AMCU) as it and rival unions plunge into pay talks this month with mining houses.

But what is a living wage for a South African miner? Finding a definition, no easy task, has become the goal of an increasingly militant labour force demanding pay increases ranging from 15 to 150 percent, which mining companies can ill afford as precious metals prices tumble and costs surge.

Wage negotiations in the gold sector kick off on Thursday. The issue is complicated by many variables and by the difficulty of defining fair pay for work that may often require only low levels of skill but is very tough and dangerous.

“It’s difficult to put a number on a living wage,” said Boitumelo Sethlatswe, a researcher at the South African Institute of Race Relations.

“It depends how many people are in your household, and are there people in your household with access to social grants such as for old age pensions and child support,” she said.

POSCO may soon get iron ore licence for Odisha plant – by Krishna N Das (Reuters India – July 10, 2013)

July 10, 2013

http://in.reuters.com/

REUTERS – India is expected to grant an iron ore exploration licence to POSCO(005490.KS) for its planned $12 billion steel plant in the country, two government officials told Reuters, in a step that should speed up the project stuck for eight years.

The Supreme Court in May handed a decision on a licence to the government, raising the South Korean firm’s chances of getting access to iron ore for the project billed as India’s largest foreign direct investment.

“POSCO India should get the license in a month or so,” said a senior government official involved with the decision-making. “The government is looking at it positively.”

Another official directly involved in the matter said the government was speeding up the process given that the Supreme Court has already ruled against a lower court order declining a prospecting licence for POSCO. Prospecting licences are generally valid for three years, after which a prospector has to apply for a mining lease.

Access to iron ore, the main raw material in making steel, is the most important factor in POSCO deciding to set up the plant in India, experts have said.

Cliffs Natural Resources CEO Carrabba to retire; Brlas out as exec VP – by Mark Dodosh (Cleveland Business – July 10, 2013)

July 10, 2013

http://www.crainscleveland.com/

Big changes are coming to the executive suite at Cliffs Natural Resources Inc. (NYSE: CLF), which over the last 12 months has seen its stock lose nearly two-thirds of its value and has run into problems with a big investment in Canada.

The Cleveland-based producer of iron ore and metallurgical coal said Joseph Carrabba has informed the Cliffs board of his plans to retire as president and chief executive officer by Dec. 31.

In addition, Cliffs said Laurie Brlas, its executive vice president and president of global operations, has retired and is leaving the company, effective immediately. The company did not give a reason for her sudden departure.

Cliffs said James Kirsch, who currently serves on the board as lead director, has been elected non-executive chairman of the board, effectively immediately, replacing Mr. Carrabba as chairman.

Mr. Carrabba will continue to serve as president and CEO and a director until a successor has been elected, after which point he also will step down from the board.

First Nation reminds IOC suitors of ‘fierce opposition’ to on-reserve mining – by Henry Lazenby (MiningWeekly.com – July 9, 2013)

July 10, 2013

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

TORONTO (miningweekly.com) – The Innu First Nation of Uashat Mak Mani-Utenam has reminded potential suitors of mining giant Rio Tinto’s 58.7% stake in the Iron Ore Company of Canada (IOC), that the Aboriginal group continued to “fiercely oppose” IOC’s mining, railway and port operations within their traditional territory.

The group had, in March, filed legal proceedings against IOC, along with the Innu First Nation of Matimekush-Lac John, asking the Quebec Superior Court to block the company’s operations in Quebec and Labrador. The two groups had also sought C$900-million in compensation, which they alleged represented IOC’s profits at the facilities since 1954.

The Innu groups claimed the miner had violated their rights for nearly 60 years, causing harm by operating a large mining complex and 578 km railway on traditional territory (Nitassinan) in north-eastern Quebec and Labrador since the 1950s, without their prior consent. The facilities were located in the communities of Schefferville, Labrador City and Sept-Îles.

“The Innu are well past their breaking point and, in addition to the legal action, IOC can expect further acts of opposition in the coming months. While it is clear that Rio Tinto is looking to offload assets, the Innu First Nation of Uashat Mak Mani-Utenam cannot help but feel that Rio Tinto is also seeking to offload the ‘Innu problem’,” the group said in a statement on Tuesday.

Commodities super-cycle is ‘taking a break’ – by Eric Ng (South China Morning Post – July 10, 2013)

July 10, 2013

http://www.scmp.com/

Runaway prices in commodities markets have ended, but long-term demand for commodities on the mainland is strong

The commodities “super-cycle”, largely buoyed by Chinese buying, may have ended in terms of runaway prices but robust demand is expected to continue. A more benign price outlook would benefit large commodities consumers and importers like China as it would help contain inflation and promote economic growth.

Eugen Weinberg, head of commodity research at Commerzbank in Germany, said: “Price movements in the market indicate an end to the commodities super-cycle. But we do not believe the super-cycle is coming to an end. It’s just taking a break. “Some 20 million people a year move from the countryside to the cities, triggering a huge demand for better infrastructure.”

Michael Haigh, global head of commodities research at the French bank Societe Generale, said: “We do not think the current commodity super-cycle is over, but it is not as super. It is common to have cycles within super-cycles.”

The super-cycle that began around 2002 was driven by a combination of strong demand from emerging nations and low supply growth. Since last year, growth in global demand has weakened as a result of the sovereign debt crisis in many developed nations, while new supply caught up with demand because of strong investment during the latter years of the boom.

Cliffs CEO Carrabba to leave Cleveland mining company by year’s end – by Alison Grant (Cleveland Plain Dealer – July 10, 2013)

July 10, 2013

http://www.cleveland.com/

Cliffs Natural Resources Inc. announced this afternoon that Joseph Carrabba will retire as president and chief executive officer by Dec. 31. Laurie Brlas, president of global operations and the company’s former chief financial officer, has retired and will leave immediately, Cliffs said.

James Kirsch, who is lead director of Cliffs’ board, has been elected as non-executive chairman of the board, taking that position immediately, replacing Carrabba as chairman. Cliffs also said its board has elected Mark Gaumond, 62, former senior vice chair of Ernst & Young’s Americas division, as a new director.

Also today, Cliffs declared a quarterly cash dividend of $0.15 per share. The dividend will be payable Sept. 3 to shareholders of record as of the close of business on Aug. 15.

The Cleveland-based company has struggled with a softer Chinese construction market, cutting into its seaborne ore sales. Cliffs idled iron ore mines in Michigan and Minnesota and also announced in November it would postpone expansion of its Bloom Lake mine in Canada.

No rail is a pipe dream – by Lorne Gunter (Toronto Sun – July 10, 2013)

July 10, 2013

http://www.torontosun.com/home

As an Albertan and an advocate of pipelines to move oil to refineries and ports, I’ve been asked a dozen times or more since Saturday’s rail disaster in Lac-Megantic, Quebec, whether I think the tragedy that has left at least 13 dead, will spark politicians to approve more pipelines, such as Keystone XL, Northern Gateway or the doubling of Kinder Morgan’s Trans Mountain.

I recognize that now is a sensitive time even to answer such a question. People are dead — people who were minding their own business asleep in their beds or out for a night at a local bar. Our thoughts and prayers should first be with them.

Others have had their lives overturned, either because they lost a loved one in the blast or because their tiny, picturesque world was obliterated when 73 black tanker cars carrying hundreds of thousands of litres of crude oil came hurtling into the centre of town and exploded, “vaporizing” nearly everything standing within a two-block radius.

But to the extent an answer is appropriate now, it’s this: This is not an either/or proposition. Canada will need both pipelines and rail to get its oil to market. And oceangoing tankers, too. And all three are safe. Each can be made even safer. But each is already very safe, particularly when compared to 20 or 30 years ago.

The Guangxi miners in Ghana gold rush – by Anna Healy Fenton (South China Morning Post – June 4, 2013)

July 10, 2013

http://www.scmp.com/

Chinese President Xi Jinping ended his six-day visit to Africa on a high note, leaving behind signed deals and warm pledges. The Republic of Congo was his final stop, after Tanzania and South Africa. He’s committed to a river port in Oyo, Congolese President Denis Sassou Nguesso’s hometown, and a sea port in Pointe-Noire for exporting mineral ore.

Congo is already an established oil producer and China is already its biggest trading partner. Xi announced he wanted to raise ties with Congo “to a new and higher level”.

“We expect to work together with our African friends to seize upon historic opportunities and deepen cooperation … in order to bring greater benefit to the Chinese and African peoples,” he said in Brazzaville.

Fine words indeed. One place he did not go was Ghana, in West Africa, where he could have seen Chinese and African co-operation in action. This is the scene of the gold rush 2013 style, where about 50,000 migrants from Shanglin in southern Guangxi, have received welcomes a little less warm than Xi’s.

Natives of Shanglin, famous for producing and exporting gold miners, started heading to Ghana’s goldfields eight years ago.