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Copper-nickel mining divides Ely [Minnesota] residents – by Dan Kraker (Minnesota Public Radio – May 31, 2013)

http://minnesota.publicradio.org/features/

ELY, Minn. — The polarizing divide over the future of mining around Ely will be on display this weekend, when an anti-mining group opens shop on Sheridan Street, the canoeing mecca’s main drag.

Workers in the new center, dubbed “Sustainable Ely,” will encourage tourists to take action urging President Barack Obama to protect the region’s environment from copper-nickel mining. They also want people to urge Gov. Mark Dayton’s administration to expand a mining protection zone around the Boundary Waters Canoe Area.

Down the street from tourist shops like Mostly Moose and Loony’s Northwoods Emporium, the new center houses a shiny Wenonah canoe dotted with several signatures scrawled in black marker. Anti-mining activists aim to gather thousands more.

“We hope to portage this down the mall in Washington, D.C., and present it to President Obama, and ask him to protect the Boundary Waters watershed from sulfide ore mining,” said Becky Rom, a retired attorney who is among nearly 100 contributors to the center.

Although the center’s organizers see mining as a major environmental threat, many in town believe it copper-nickel mining can be done safely and jumpstart the region’s economy.

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Kyrgyzstan protesters storm Canadian mining office – The Associated Press/CBC News World (May 31, 2013)

http://www.cbc.ca/news/world/

Centerra Gold’s electricity cut off after rioters enter transformer unit

Kyrgyzstan has imposed a state of emergency on a northern district after clashes between riot police and protesters over Centerra Gold’s Kumtor mine.

Hundreds of protesters in Barskoon stormed the office of a gold mine run by the Canadian-based company, demanding its nationalization and more social benefits.

Protests at the Kumtor mine operated by Centerra Gold have been going on for several days. Police arrested 80 people Thursday night after several hundred, some on horseback, entered a power transformer unit and cut off electricity to the mine for several hours. That effectlvely prevented the mine from shutting down.

Centerra says the protests are illegal and that it is working with the government and local authorities to resolve the situation. President Almazbek Atambayev imposed the state of emergency and a curfew on Dzhety Ohuz district of the Issyk Kul region until June 10, his office said.

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Kyrgyzstan imposes state of emergency to protect Centerra mine – by Olga Dzyubenko (Reuters U.S. – May 31, 2013)

http://www.reuters.com/

BISHKEK – (Reuters) – Kyrgyzstan’s government imposed a state of emergency on a northern district on Friday to protect Centerra Gold’s Kumtor mine from protesters.

Police on Friday cleared away demonstators who had been blocking the road to Kumtor for days and arrested 92 people, Prime Minister Zhantoro Satybaldiyev told a news conference.

A few hours later police used tear gas and stun grenades in clashes with villagers who tried to seize a substation and cut power supplies to the mine, a police spokesman said. Several protesters were hurt.

Hundreds of villagers had blocked the road to Kumtor, in Dzhety Oguz district, on Tuesday afternoon and threatened to move on the mine if the government did not tear up its agreement with the company.

President Almazbek Atambayev imposed the state of emergency and a curfew on Dzhety Ohuz district of the Issyk Kul region until June 10, his office said. “Those who broke the law must be brought to justice in line with the full severity of the law,” it quoted Atambayev as saying during a meeting with security officials.

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Pebble Mine could spark economic transformation in SW Alaska – CEO – by Dorothy Kosich (Mineweb.com – May 31, 2013)

http://www.mineweb.com/

The Pebble Project’s estimated $1 billion in annual operating costs “could define a new economic engine for Alaska,” says a new report commissioned by the Pebble Limited Partnership.

RENO (MINEWEB) – A study by economic analysis firm IHS Global Insight advises that development of the Pebble copper deposit “could have significant economic impacts” for the state of Alaska including $136 million to $180 million in yearly taxes and royalties, and support more than 16,000 jobs nationwide during construction including nearly 5,000 jobs in Alaska.

The study, which was commissioned by the Pebble Limited Partnership estimates that Pebble-related jobs could pay an average annual wage of $63,500 per year. “Once the mine is constructed, it could provide approximately 2,900 operating jobs, of which 915 will be at the mine,” said IHS Global Insight. Pebble workers on-site could earn approximately $109,500 per year on average with about 75% of the workers expected to be Alaska residents.

“The Pebble Limited Partnership has the potential to develop one of the most significant discoveries of copper, molybdenum, gold and silver in the world,” said the report.

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[Saskatchewan] Uranium mining legacy expensive – by Ann Coxworth (Saskatoon StarPhoenix – May 30, 2013)

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

Coxworth is a board member and research adviser at the Saskatchewan Environmental Society. Along with all the enthusiasm about the benefits the mining industry has brought to Saskatchewan (Mining: Great for Saskatchewan, SP, May 25), we need to also remember the multimillion-dollar costs that are our province’s inheritance from past mining activities.

The Canadian Nuclear Safety Commission recently reviewed plans for continuing management of some of the contaminated sites in northern Saskatchewan – relics of uranium mining activities that took place during the 1960s and 1970s.

The cost of remediating surface waters to levels compatible with Saskatchewan surface water quality objectives is so overwhelming that we know it will never happen.

Because the companies that caused the pollution are no longer in existence, these costs now fall to the federal and provincial taxpayers. The goal of industry and regulators now is simply to prevent the contamination from getting any worse.

One such contaminated region is the Beaverlodge area. Beaverlodge Lake, just north of Lake Athabasca and east of Uranium City, is linked to Lake Athabasca through a series of small lakes and rivers. It is beautiful, and is home to an abundance of fish.

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Editorial: HD on its feet after a tumble – by John Cumming (Northern Miner – May 29, 2013)

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

Another chapter closed in the HD Mining International saga, with HD celebrating a win in the federal courts against two B.C. unions who had tried to thwart the junior developer’s efforts to import Chinese workers to take a bulk sample at its Murray River underground coal mine project, located southeast of Tumbler Ridge in northeastern B.C.

Once operating, the $300-million Murray River project would produce 6 million tonnes of metallurgical coal per year over 30 years, creating about 600 direct and 700 indirect jobs. HD Mining has already spent $50 million on the project.

The International Union of Operating Engineers, Local 115, and the Construction and Specialized Workers’ Union, Local 1611, had banded together to challenge the federal decision that authorized the temporary use of 201 foreign workers, but the challenge was dismissed on May 21 by the Federal Court of Canada. While the applicants do not represent any workers of HD, they were granted public interest standing and permitted to launch their challenge because they represent mining workers in B.C.

In his decision, Justice Russel Zinn noted that it was the first time a positive decision made under the federal Temporary Foreign Worker Program (TFWP) had ever been challenged, and that it “made for a hard-fought application.”

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Western premiers renewing push for Northern Gateway, Trans Mountain pipelines – by Claudia Cattaneo (National Post – May 30, 2013)

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

With the British Columbia Liberals back in power — thanks in part to the implosion of the opposition NDP over its hard line against heavy oil pipelines — Canada’s three Western provinces are working on a renewed push to make the proposed Northern Gateway and Trans Mountain pipeline projects work.

B.C. Premier Christy Clark, Alberta Premier Alison Redford and Saskatchewan Premier Brad Wall are planning to meet as part of their New West Partnership to discuss the projects, including how to make them more economically relevant to British Columbia.

The inclusion of Premier Wall should help lighten up the cool relationship between the Alberta and British Columbia premiers. Like Alberta, Saskatchewan is an oil producing province that has been hard hit by Canadian oil-price discounts. A vocal supporter of the Keystone XL pipeline, Mr. Wall has been less involved in the West Coast debate.

On Wednesday, during a visit to Alberta that included a stop in Calgary and one in the oil sands, Terry Lake, B.C.’s environment minister, said the premiers’ meeting will happen “shortly” and B.C. has left open “a pathway to yes” to the projects. It involves meeting the five requirements he laid out last July.

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INTERVIEW-Norway oil fund may sell out of mines that mistreat workers – by Gwladys Fouche (Reuters India – May 29, 2013)

http://in.reuters.com/

OSLO, May 29 (Reuters) – Norway’s $740-billion sovereign wealth fund, the world’s largest, is examining labour conditions in the mining industry and may sell out of firms that violate workers’ rights, the head of the fund’s ethics council said.

The fund could also divest from companies involved in cattle ranching, if working conditions on farms are exploitative, and from firms implicated in illegal or unregulated fishing.

“Working conditions, slave-like working conditions, … is a very important priority,” said Ola Mestad. “We have been trying to identify different sectors: (one of them) could be mining.”

The fund invests Norway’s revenues from oil and gas production for future generations. It is one of the world’s largest investors with holdings in some 7,500 companies.

It has excluded firms for what it deems to be unethical behaviour based on the advice of its ethics council, an independent body reporting to the finance ministry, which has ultimate responsibility for the fund. The ministry tends to follow the council’s recommendations. The fund also bans investments in some industries – nuclear arms, anti-personnel landmines, cluster bombs and tobacco.

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Despite challenges, mining on track to invest $50B [in Saskatchewan] – by Bruce Johnstone (Regina Leader-Post – May 29, 2013)

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

Demand for food, energy to increase

Despite the postponement of several multibillion-dollar projects, the head of the Saskatchewan Mining Association is confidently holding to his prediction that the industry will invest $50 billion in the province between 2008 and 2028.

“The outlook for the mining market and sector in 2013 remains strong, if mining companies are strategic in their actions,” Steve Fortney, president of the SMA, told a news conference Monday to launch Mining Week in Saskatchewan. “We need to remain aware of the challenges the industry faces, including increased project and operational costs that are not supported by commodity prices, and a tight labour market.”

Fortney, who is senior director of technical projects for PotashCorp in Saskatoon, was referring to recent announcements by mining companies to delay or cancel major capital projects due to softening commodity prices, a weakening global economy and competition for resources.

Earlier this month, Mosaic announced it was delaying, for up to two years, a couple of expansion projects in Saskatchewan, which would have added another two million tonnes of potash production at a cost of $2 billion.

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AFRICA INVESTMENT-South Africa labour strife creating vicious cycle – by Ed Stoddard (Reuters India – May 29, 2013)

http://in.reuters.com/

JOHANNESBURG – May 29 (Reuters) – Labour unrest in South Africa’s mines, which threatens to spread to bigger sectors like manufacturing, is plunging the economy into a vicious cycle that may spiral into stagflation, disinvestment and more social upheaval.

South Africa’s rand has lost 16 percent against the dollar so far in 2013 and hit new four-year lows this week, with mining worries triggering the latest sell-off – which picked up pace on Tuesday when data showed growth in Africa’s top economy slowed to a snail’s pace as manufacturing output shrank.

All of this is spooking investors and sowing the seeds of more social discontent, as data shows a strong correlation between the rand’s performance against the dollar and inflation, with a time-lag of nine months.

Inflation is currently just under six percent and will accelerate, with the biggest exchange-rate impact likely on food and fuel prices, which will hit working-class households hard.

But the full impact of the rand’s current weakness will only be fully felt nine months hence, after the next round of wage agreements in mining and other sectors have been hammered out.

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Shabangu announces gold, platinum rescue plan – by Idéle Esterhuizen (MiningWeekly.com – May 28, 2013)

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

JOHANNESBURG (miningweekly.com) – Mineral Resources Minister Susan Shabangu on Tuesday announced that her department would develop a rescue plan, aimed at placing South Africa’s wrecked platinum and gold sectors on a recovery path.

Delivering her department’s R1.39-billion Budget Vote in the National Assembly, she said Department of Mineral Resources (DMR) officials had been instructed to “urgently” look at a rescue plan for the gold and platinum sectors, focusing on supply- and demand-side interventions.

“The platinum and gold sectors, which are among the largest sectors of our mining industry in terms of employment, investment and revenue generation, are negatively affected by the persistent global economic environment, which has an adverse bearing on their long-term viability,” the Minister said.

Shabangu stated that South Africa’s recently concluded bilateral agreement with Russia, under which the countries agreed to cooperate on platinum group metals (PGMs) initiatives, would contribute to the creation of a suite of interventions necessary to stabilise the platinum industry.

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Little respite for gold – yet – by Lawrence Williams (Mineweb.com – May 29, 2013)

http://www.mineweb.com/mineweb/

Gold seems rangebound between $1350 and $1400 with no real signs of a breakout up or down, but recent developments in the physical markets may suggest a change ahead.

LONDON (MINEWEB) – Those looking for a sharp upwards reversal in the gold price given the continuing high levels of demand for physical metal, principally from the East and Middle East have so far been disappointed with the yellow metal struggling to retake the $1400 level, so far unsuccessfully. Price setting seems to be remaining well in the hands of North American markets where all that seems to be seen is the continuing offloading of inventory from the big gold ETFs in the light of artificially high stock markets, boosted by siren songs from the politicians and bankers and ever-continuing Quantitative Easing.

There is certainly a degree of continuing nervousness in the precious metals markets with many commentators predicting further falls in gold and silver ahead. What may, however, reverse the trend could be the figures for Chinese gold imports from Hong Kong for April as these may prove to be absolutely enormous.

While purchasing from the Asian markets has steadied a little now, after April’s mega rush, eastern demand mostly remains strong, although that in India has slowed somewhat as the government turns the screws on gold traders, and the farming community – responsible for much of that country’s gold purchasing and hoarding – is now in crop planting mode which tends to reduce demand at this time of year.

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[Saskatchewan] Uranium mine industry under scrutiny – by Shinoah Young (Regina Leader-Post – May 28, 2013)

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

Northerners are in dire need for further education and training when it comes to Saskatchewan’s economic “boom.”

A recent report called the Community Vitality Montoring Partnership Process (CVMPP) suggested that “uranium mining companies should target some education efforts and donations to invest in early childhood development” in northern Saskatchewan. The recent CVMPP report was suggested by northern leaders and put together by InterGroup Consultants Ltd., a company based in Winnipeg.

Thursday at the University of Regina, Thomas Sierzycki, mayor of La Ronge, presented the report regarding the socio-economic impacts of uranium mining in Saskatchewan.

Sierzycki said there needs to be more training and education towards the higher, non-entry level positions in order for northerners to fully benefit from the uranium mining industry.

“The number of people who have higher levels of education has increased (and) the number of people who have long-term, full-time employment have increased. Although because the population has grown so quickly, the proportion hasn’t necessarily (matched) with education,” said Erin Jonasson, a research consultant for InterGroup.

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Kenya to form a mining corporation, says Balala – by Mwaniki Wahome ([Kenya]Daily Nation – May 26, 2013)

http://www.nation.co.ke/-/1148/1148/-/xvvu7uz/-/index.html

A national mining corporation will be formed to act as the investment arm of the government where joint venture with the private investors is involved. This is one of the recommendations in the envisaged mining Bill that is meant to spur growth in the industry.

This was disclosed as stakeholders got closer to striking a deal on contentious issues related to sharing the income realised from mining activities in the country.

Mining Cabinet Secretary, Mr Najib Balala, said after getting Cabinet approval, the public and other stakeholders’ views will be included before the proposed law is taken to Parliament for debate and adoption.

“The national mining corporation is a strategic vehicle through which the government will invest in the mining industry with the private sector,” said Mr Balala. An earlier recommendation was to form a mining authority, but the idea was shelved after it was found that it would not facilitate the commercial interests of the country in the mining industry.

Experts have faulted the current Mining Act, that was put in place by the British colonial regime for being rigid, hence stifling mineral exploration and, at the same time, failing to spell out how benefits of such wealth are to be shared especially with the communities where the resources are found.

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REFILE-Glencore says Iran metals swap deals did not violate sanctions – by Louis Charbonneau (Reuters U.S. – May 24, 2013)

http://www.reuters.com/

UNITED NATIONS, May 23 (Reuters) – Swiss-based commodities giant Glencore Xstrata said on Thursday that it had done nothing wrong when it engaged in metal swaps with Iran, rejecting a suggestion by U.N. experts that such bartering could have been a way of evading sanctions against Tehran over its nuclear program.

A confidential U.N. Panel of Experts report seen by Reuters on Wednesday said alumina-for-aluminum swap deals with Iran by Switzerland-based commodities giants Glencore Xstrata and Trafigura could have been a way to bypass international sanctions.

A Glencore spokesman said the company broke no regulations and did not violate the sanctions. Trafigura did not immediately respond to Reuters’ request for comment.

Reuters reported on March 1 that Glencore had supplied thousands of tons of alumina to an Iranian firm that has provided aluminum to Iran’s nuclear program. Afterward, Trafigura acknowledged it had also traded with the same Iranian firm.

Glencore has confirmed the deals with Iran but insisted it had no knowledge that the company it was supplying alumina to – the Iranian Aluminum Company (Iralco) – was in turn providing aluminum metal to Iran Centrifuge Technology Co (TESA), which the European Union sanctioned in December 2012.

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