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

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Cell Phones, Brought to You by BC Copper via China – by Christopher Pollon (TheTyee.ca – March 27, 2014)

http://thetyee.ca/

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

Home to Apple’s Foxconn plant, Kunshan is China’s Silicon Valley. But for how long? Fourth in a series.

KUNSHAN, CHINA — The kid standing outside the barbed wire fence at Unimicron’s electronics factory near Shanghai is feeling anxious. “Is the work hard?” he asks a middle-aged man, a private recruiter who brought the youth here.

The man tells him to relax. “It’ll be easy. Don’t worry.” It’s a Wednesday morning in September, and I’m standing with a crowd of recent high-school grads gathered to submit resumes at Unimicron, one of the world’s biggest electronics manufacturing companies, and a destination for copper mined 9,000 kilometres away near Princeton, B.C.

These kids are gathered here hoping to land an entry level factory job. High-school grads with no formal training are being offered up to CDN$680 (4000 Renminbi) per month to start, with medical insurance, room and board included (no tattoos allowed, see the translated job ad they are responding to here.)It’s a package that would have been unthinkably rich even five years ago, when Shanghai was booming as a low-cost workshop to the world, drawing millions of migrant labourers from across rural China.

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Where Copper Meets Fire – by Christopher Pollon (TheTyee.ca – March 26, 2014)

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

Naoshima Island in Japan is a surreal melting pot of BC metal and fine art. Third in a series.

From the deck of a private ferry racing across the Seto inland sea, Naoshima Island appears as a tower of yellow rock on the horizon, tipped in a lush emerald. As we approach, blue-uniformed figures appear, darting in tiny vehicles around an imposing industrial complex bearing the red insignia of Mitsubishi, one of the world’s most powerful corporate conglomerates.

If this were a James Bond movie, Naoshima would be the island lair of an arch-villain. Instead it’s home to one of Japan’s oldest operating copper smelters, in almost continuous use since 1917. It’s also the first destination for the raw copper produced at the Copper Mountain mine near Princeton, and much of the rest of the copper mined today in British Columbia.

I came expecting Mordor, only to find the world’s oddest fine art display, with a 230-metre smokestack rising from the northern tip. In a surreal twist that is uniquely Japanese, Naoshima is also a world famous art gallery “park,” covering most of the island’s 17 square-kilometres. It’s home to three major art galleries featuring works by Pollock, Warhol and Monet.

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Betting at the Copper Casino – by Christopher Pollon (TheTyee.ca – March 25, 2014)

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

That would be Vancouver’s mining district, where BC’s future is low-grade and high-risk. Second in a series.

VANCOUVER, B.C. — British Columbia copper ends up in smartphones, in the cars we drive, in our plumbing and electrical systems, as well as in our scrap yards and landfills. But to understand how it gets there, you need to visit a nondescript office tower on Pender Street in Vancouver’s financial district. Or perhaps more aptly put, Vancouver’s mining district.

If mining capital were mineral ore, Vancouver would be the mother lode of all mother lodes. More publicly-traded mining companies are headquartered here (and in Toronto) than anywhere else on earth: 60 per cent of all mining corporations on the planet are found in Canada. Their collective market value in 2012 approached half a trillion dollars: an estimated $449 billion. (See sidebar.)

Many in the mining industry view this global cluster as proof that we are the unrivalled masters of mining on the planet. This has some basis, but the reality is a lot more complex.

“The single largest reason for the concentration of head offices here,” says Alan Young, former executive director of the watchdog group Environmental Mining Council of B.C., “is that stock exchanges like the TSX Venture Exchange or TSX [Toronto Stock Exchange] have been developed to promote venture capital that mid-level and small exploration companies require to exist.”

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REVIEW: Bre-X – Dead Man’s Story – by Marilyn Scales (Canadian Mining Journal – April 1, 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.

You don’t have to be an industry insider to remember the story of Bre-X – the 200 million oz of gold in the jungles of Borneo that disappeared overnight. The story of the company’s rollercoaster ride – propelled by enormous greed – made headlines all over the world and severely damaging the reputation of Canada’s stock exchanges and mining community.

The facts should be familiar. A junior explorer sets out in a remote part of Indonesia to make a gold mine. They drilled, and released promising results. Investors invested, driving up the Bre-X stock price, and the company suddenly had no shortage of investors. More drilling was done, and even better results were released. The analysts loved the project. Bre-X management made higher and higher contained gold estimates – 20 million, 30 million, 100 million, and finally 200 million oz of gold just waiting to make everyone rich.

Of course, promises of huge riches attracts huge appetites. Bigger companies considered buying out Bre-X and gaining control of the Busang gold. The head of the Indonesian government, Suharto, wanted the pot of gold enough to usurp Bre-X’s claim to the property and asked an American miner to develop the project.

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Glencore Xstrata blocking progress at Donkin coal mine – by Roger Taylor (Halifax Chronicle Herald – March 31, 2014)

http://thechronicleherald.ca/

In hindsight it may have been a mistake for the Nova Scotia government to allow mining giant Xstrata plc to win control of the mothballed Donkin coal mine.

It seemed like a good idea at the time to have a company of the stature of Xstrata, with the know-how and financial backing to get the job done, to take over management of the underground mine.

But now, after several years of waiting, the market for coal has changed and so has the makeup of Xstrata, which was acquired by a major competitor, Glencore, in 2012. It didn’t take long for the new company, Glencore Xstrata plc, to realize the Donkin mine was too small for a corporation of its scale and that the return on investment couldn’t possibly meet its expectations.

So Glencore Xstrata announced it would instead sell its 75 per cent stake. But until a buyer could be found it would lay off the few workers looking after the site and would allow the mine to flood.

Although Glencore considers the Cape Breton project small, its 25 per cent minority partner in the Donkin mine, Morien Resources Corp. of Dartmouth, believes the development of the mine is still a winning proposition.

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The Resurrection of Copper Mountain – by Christopher Pollon (TheTyee.ca – March 24 2014)

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

PRINCETON B.C. — The “cradle” of this copper story lies here, about 300 kilometres east of Vancouver near Princeton, B.C., a boom-and-bust mining and logging town that by the late 20th century seemed used up and ready to die.

Between 1927 and 1996, some US$6-billion worth of copper had been dug from the mountains south of town, extracted by at least five corporations, now all long gone. What was left, most traditional assays concluded, wasn’t worth the cost of pulling out of the ground.

But by 2011, change was on the horizon, driven by both new technologies and distant market forces 9,000 km to the east (see sidebar). Under new management, Copper Mountain again began producing raw copper for export, putting 380 people to work full time, and supporting about 1,500 other jobs indirectly.

“I’ve died and gone to mining heaven,” Princeton town councillor Frank Armitage gushed at the mine’s official re-opening. A 40-year veteran of the industry, Armitage is now both Princeton’s mayor and Copper Mountain’s human resources manager.

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Travels with Copper (with INTERACTIVE MAP) – by Christopher Pollon (TheTyee.ca – March 24 2014)

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

Tyee contributing editor Christopher Pollon criss-crossed the Pacific on the trail of BC copper. Here’s why.

I’m standing on top of five billion pounds of copper on a sunny August afternoon in southwest British Columbia near Princeton, trying to figure out where it all goes.

Dust and smoke rise, as explosives shatter seams of rock into moveable chunks 350 metres below me. Bungalow-sized Komatsu trucks (the tires alone cost $40,000 each) wind downward around the terraced edges of the pit toward North America’s biggest hydraulic shovel which can scoop up 80 tons of rock in a single bite. Deceptively toy-like from a distance, the moving parts of the mine perform their ritual 24 hours a day, seven days a week. “Mining on this scale is what makes it economical,” Don Strickland, Copper Mountain’s VP of Operations, tells me.

By last century’s standards, there’s not enough high-grade ore here to warrant mining it. But ever-bigger equipment and new processing methods have made it possible to move — and mine — mountains. With historically high copper prices over the last five years, and most of the world’s best deposits already tapped, Copper Mountain can afford to break and crush 150,000 tonnes of rock a day that will produce just 90 tonnes of refined copper down the road — and still make a profit.

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Barrick Gold slashed chairman’s pay to US$9.5M last year after investor outrage – by John Shmuel (National Post – April 1, 2014)

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

TORONTO — Barrick Gold Corp. unveiled a new compensation package for executives Monday, a year after management faced heavy blowback for a generous signing bonus that made incoming chairman John Thornton one of the highest paid executives in Canada.

The world’s largest gold miner said it had scaled back Mr. Thornton’s pay for 2013 to US$9.5-million, compared with US$17-million the prior year. Mr. Thornton’s original pay package, which included a US$11.9-million signing bonus, caused a rare rejection last year by shareholders of the company’s executive compensation plan.

“We heard shareholders loud and clear,” said Brett Harvey, Barrick’s lead director, adding that he saw the new compensation model as one that others in the industry are “going to follow.”

The new “scorecard” system will see Barrick pay a large chunk of compensation in stock that executives will have to hold until they retire or leave the company. It will also base salary on a number of performance metrics, including delivering planned cash flow, achieving cost targets and meeting earnings expectations. As chairman, Mr. Thornton will not fall under the new scheme.

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Kinross announces lower capital costs for Tasiast in Mauritania – by Henry Lazenby (MiningWeekly.com – April 1, 2014)

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

TORONTO (miningweekly.com) – Canadian miner Kinross Gold on Monday announced the results of a feasibility study that examined the viability of significantly expanding output at its Tasiast mine, in Mauritania, saying that the expected capital cost would be less than what a prefeasibility study (PFS) estimated last year.

The TSX- and NYSE-listed miner said that the initial capital cost to expand the mine would be $1.6-billion, compared with its PFS estimate of $2.7-billion. A thorough review of project design, execution and scope produced about 230 cost-saving initiatives worth about $493-million.

Examples of the cost savings included pre-assembled plant modules, concrete precasting and greater reliance on in-house technical expertise for mine planning, engineering, geological modelling and overall project oversight.

The company also expected a decrease in Tasiast’s expected water demand owing to a planned reduction in dump-leach processing, more accurate mill modelling and greater-than-expected water availability from current sources, which had resulted in the company being able to defer the need to begin building a sea water pipeline from the coast to the mine until 2018.

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Nationalism takes centre stage in Indonesia’s election campaign – by Rieka Rahadiana (Reuters Canada – March 30, 2014)

http://ca.reuters.com/

JAKARTA (Reuters) – Dressed in the style of Indonesia’s first leader, even using replica 1950s microphones, presidential hopeful Prabowo Subianto roared to thousands of supporters at a recent rally in the capital: “Indonesia cannot be bought”.

It is a nationalistic tone that has been on the rise in campaigns by the major political parties ahead of elections to choose a parliament on April 9 and a new president on July 9.

The question of whether Indonesia is souring on the foreign money that helped bankroll much of its growth was thrust into the spotlight this year with a new law that aims to boost the country’s profits by banning the export of minerals unless they have been processed first.

That threatens the fortunes of some of Indonesia’s biggest investors, notably two major U.S. mining companies with large operations in the country – Freeport-McMoRan Copper & Gold and Newmont Mining Corp. To continue exporting, mining firms must now either pay 20-25 percent tax from this year, rising to up to 60 percent by the second half of 2016, or invest hundreds of millions of dollars on new smelters.

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Alphonse and Gaston meet the Ring of Fire – by (Troy Media – March 30, 2014)

http://www.troymedia.com/

Frank Dabbs is a veteran business and political journalist, author of three biographies and a contributor, researcher or editor of half a dozen books. Frank worked in print, radio and television in Alberta for 40 years. Since 2006, he has been a print and television freelancer in Ontario. 

None of the players involved in the development of Ontario’s economic salvation is willing to be the first to commit

ANNAN, ON, Mar 30, 2014/ Troy Media/ – Alphonse and Gaston were two newspaper cartoon characters created in the 1920s by Frederick Opper, and the “glacial” progress of Ontario’s Ring of Fire harks back to them.

Alphonse and Gaston were two waiters who never got anything done because they were too polite. “After you Alphonse,” Gaston said. “No, you first, my dear Gaston,” replied Alphonse.

It’s very reminiscent of what is happening with Ontario’s Ring of Fire, a massive planned chromite mining and smeltering development project in the mineral-rich James Bay Lowlands of Northern Ontario. No one seems willing to be the first to launch the $60 billion mineral discovery in the area.

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Mick Davis is cash heavy and hunting for mining deals – maybe in Canada – by Eric Reguly (Globe and Mail – March 31, 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.

ROME — The new company set up by Mick Davis and other former Xstrata executives, X2 Resources, has raised $2.5-billion (U.S.) in funds and is set to buy mining assets in the belief that the commodities cycle is set for a revival.

X2 announced Monday that it had secured the commitment from five investors, each of which have contributed $500-million. The same five have have agreed to contribute another $1.25-billion in conditional equity funding, raising the potential total to US$3.75-billion.

The identifies of only two of the five investors, Noble Group and TPG, have been disclosed. Noble Group, based in Hong Kong and listed on the Singapore exchange, is one of the world’s largest commodities trading and infrastructure companies. It competes with Switzerland’s Glencore, the new owner of Xstrata. Mr. Davis was CEO of Xstrata until early last year.

TPG is a private American investment firm, with more than $55-billion in assets under management in a broad range of businesses, from energy to biotechnology.

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Tunnel vision: Most Canadian CEOs believe the economy must diversify – by Richard Blackwell (Globe and Mail – March 31, 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.

Almost two-thirds of Canadian executives say the country is too dependent on resource industries and needs to become more diversified to inject better balance into the economy.

But the latest C-Suite Survey of business executives also shows a deep divide between those in the resource sector and those in other sectors, over the long-standing concentration of Canada’s economic might in mining, oil and gas, and other resources.

Sixty-two per cent of respondents said the downturn in commodities is a reminder that there is too much emphasis on extractive industries, and that there is a need for diversification. About 30 per cent said it makes sense to count on the country’s natural resources – and those executives think the sector will recover as the commodity cycle rebounds.

The results reflect very different views depending on which sector the executives work in. Almost 80 per cent of those in the service industry say Canada is too dependent on resources, while only 44 per cent of executives at the top of mining companies feel that way.

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Canada regulator seeks wiretap powers for insider-trading cases – by Cameron French (Reuters U.S. – March 27, 2014)

http://www.reuters.com/

(Reuters) – Canada’s largest capital markets regulator is pushing for an amendment to the country’s Criminal Code that would allow investigators to use wiretaps to investigate insider trading.

Such a step would give Canadian investigators a tool that their U.S. counterparts already have, and one that Ontario Securities Commission (OSC) Chairman Howard Wetston said on Thursday is needed to successfully prosecute a crime where proving intent is key.

The OSC is the largest and most influential of Canada’s provincial and territorial securities regulators, and has jurisdiction over the Toronto Stock Exchange. “In my opinion, we are missing a key tool that would assist in more effectively enforcing provisions against insider trading,” he said in a speech to a Toronto business audience.

“Wiretaps would allow us to obtain direct evidence of the intention – I underline intention – to engage in illegal insider trading and tipping,” he said. Tipping refers to the practice of passing along sensitive information that could then be used for trading.

The wiretapping would not be done by the regulator itself, but rather by provincial and federal police that work with regulators to investigate white collar crimes. Wetston said the OSC has been in early-stage talks with police about the issue.

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