Diamonds – Mining, Lab-Grown and Conflict/Blood – Page 63

Quebec shows tougher approach toward mining sector with access road deal – The Canadian Press/CTV News (November 15, 2012)

November 16, 2012

http://www.ctvnews.ca/

QUEBEC — Quebec’s new government is living up to its pledge to take a tougher stance with mining companies after offloading some responsibility for the construction of a controversial access road.

Finance Minister Nicolas Marceau announced Thursday that Quebec has renegotiated a deal that will see Stornoway Diamond Corp. (TSX:SWY) assume a bigger share of the costs to build a route to its proposed mine.

Marceau expects the agreement on the 240-kilometre highway extension to the Renard diamond mine site will save Quebec taxpayers at least $124 million. “We’re not going to build gold-plated roads with huge cost overruns,” Marceau told a new conference.

“The signal we’re sending to mining companies is that we’re ready to make deals with you, but the terms must be reasonable for Quebec taxpayers.”

PQ officials had expressed concern that costs for the Route 167 project had exploded beyond the estimated budget of $260 million in 2009. By August, the price tag had soared to $472 million.

The new deal will drop the maximum cost down to $304 million, the government insists. The PQ has criticized the previous Liberal government’s northern-development plan — known as the Plan Nord — for being too generous to the mining sector.

Stornoway strikes new deal with Quebec on diamond mine road – by Nicolas Van Praet (National Post – November 16, 2012)

November 16, 2012

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

MONTREAL – Stornoway Diamond Corp. has struck a new deal with the Quebec government on a controversial highway leading to its Renard diamond mine that will see it pay a bigger share of the total costs but ensures construction of the mine itself remains on target for 2013.

The renegotiated agreement is the first of several the Parti Québécois government is looking to revamp as it grapples with significant cost overruns on 20 major infrastructure projects inherited from the previous Liberal administration. The new deal saves Quebec taxpayers $124-million and marks the start of new effort to recoup public money that was bargained away to benefit the private sector, PQ ministers said.

“There are other cases where it will be harder to save money, but we’ll do as much as we can on all the projects,” Quebec Finance Minister Nicolas Marceau told reporters. “We will make sure that, in those deals, Quebecers are not paying too much.”

The Stornoway deal involves the Route 167 extension, a 243-kilometre all-season highway leading to the company’s Renard site. The road, championed publicly by former Premier Jean Charest as one of the centrepieces of his Plan Nord development project, had become a political lightning rod after costs ballooned from initial estimates of $260-million to more than $470-million.

BHP Billiton breaks its diamond engagement – by Pav Jordan (Globe and Mail – November 14, 2012)

November 14, 2012

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.

BHP Billiton Ltd. is out of the diamond business, fed up with prolonged dull prices for gemstones and few opportunities to improve profit margins.

The world’s largest diversified miner said on Tuesday it sold its controlling stake in Ekati, Canada’s first ever diamond mine, to diamond retailer Harry Winston Diamond Corp. for $500-million (U.S.), well below what analysts expected. Billiton’s diamond-marketing operations are also included in the sale.

The deal follows an 18-month lull in diamond prices that began after a darkening global economic outlook left speculators holding gems collected in anticipation of a stronger recovery after the 2008-09 financial crisis. Harry Winston itself, which owns a 40-per-cent stake in the Diavik mine near Ekati, saw average diamond prices drop 10 per cent in the latest fiscal quarter, when profit was cut in half. Rio Tinto PLC owns the remainder of Diavik, and has said it may also seek a buyer for its share in the mine.

More than just a sale, the Ekati transaction marks the end of an era for Canadian diamond mining, ushered in when BHP completed the mine in 1998 just as consumer backlash grew against so-called blood diamonds produced in war zones in Africa where much of the world’s diamond wealth originates.

Four greats to enter Canadian Mining Hall of Fame – by Northern Miner (October 29 – November 04, 2012)

October 31, 2012

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

The Canadian Mining Hall of Fame will welcome four new inductees at its twenty-fifth annual induction dinner on Jan. 10, 2013, at the Fairmont Royal York Hotel in Toronto. The new inductees are Charles E. Fipke, Gerald W. Grandey, Pierre Lassonde and James C. O’Rourke. The Northern Miner is a sponsor of the Canadian Mining Hall of Fame. For tickets and more information, visit www.mininghalloffame.ca.

Geologists and prospectors had searched for diamond deposits in North America for more than a century with only teasing hints of success until discovering a cluster of kimberlites in the Northwest Territories that became Ekati, Canada’s first diamond mine. This groundbreaking discovery, synonymous with the name “Charles E. (Chuck) Fipke,” was the culmination of Fipke’s relentless pursuit of elusive diamond indicator minerals for hundreds of kilometres from the Mackenzie River Valley eastward to their source near Lac de Gras. Other key contributors in his quest were his associate, geologist Stewart Blusson, economic geologist Hugo Dummett and University of Cape Town professor John Gurney. The discovery’s epic success — achieved on a shoestring budget through innovative science — sparked a staking rush, inspired other discoveries and created a new industry for Canada.

Born in Edmonton, Alta., Fipke earned a B.Sc. degree in geology from the University of British Columbia (UBC) in 1970. His adventurous nature took him to Papua New Guinea, South Africa, Brazil and other exotic locales, where he worked for senior companies such as Kennecott and Cominco, and became intrigued with the use of heavy mineral geochemistry as an exploration tool.

Aroland diamond agreement a result of ‘taking time to listen,’ says Debut CEO – by Chris Kornacki (Wawatay News – September 13, 2012)

September 14, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

A diamond exploration company that recently completed an exploration agreement with Aroland First Nation says taking the time to build a respectful relationship was key to the deal.

Chris Meraw, President of Debut Diamonds, told Wawatay News the agreement proves that if companies take the time to get agreements in place with First Nations, both sides can benefit.

“We knew that the modernization of the Mining Act is under process and that you are going to need an agreement with the First Nation in order to use mechanized equipment on their traditional land,” Meraw said. “And we’ve always had a great respect for treaty rights and have built a tremendous relationship with the chief and community.

“The agreement is the result of both sides taking time to listen and discuss and reach an agreement that will benefit everyone,” Meraw said. “If you don’t talk, don’t consult and don’t communicate you’re really not moving ahead in any reasonable way.”

The agreement between Aroland and Debut was just one of two exploration agreements Aroland signed in August. The First Nation also signed an agreement with White Tiger Mining, a German exploration company, giving the company access to explore for gold, copper and silver on its Marshall Lake property 30kms west of Nakina.

Remote Canadian diamond mines rely for supply on world’s longest ice road- by Levon Sevunts (Alaska Dispatch – September 2, 2012)

September 4, 2012

http://www.alaskadispatch.com/

A late March blizzard has finished blowing over much of Canada’s Northwest Territories and Ron Near’s job just got more interesting. A retired Royal Canadian Mounted Police officer, Near is in charge of the world’s longest ice road that connects Yellowknife, the territorial capital, to three diamond mines: Ekati, Diavik and Snap Lake.

The Tibbit to Contwoyto Winter Road – named after the first and the last lakes on the ice road – is a joint venture between BHP Billiton, which owns the Ekati Mine, the Diavik Diamond Mines Inc., which manages the Diavik mine, and DeBeers, which owns the Snap Lake Mine.

The ice road is the only overland resupply route for the mines. They depend on it to truck in a year’s worth of supplies and equipment: everything from diesel fuel and ammonium nitrate for mine explosives to earth moving machines.

And with the ice road open only eight to 10 weeks every year, resupplying the mines is a monumental logistical undertaking executed with military precision.

Anglo CEO [Cynthia Carroll] Doubles Down on New Mines Amid Falling Demand – by Jeremy Kahn (Bloomberg Markets Magazine – September 2012)

August 31, 2012

http://www.bloomberg.com/

Driving northeast from Santiago, the road corkscrews toward the shark’s-grin skyline of the Andes Mountains. In winter, Santiago’s smart set plies this route, heading for virgin-powder days and pisco-sour nights at La Parva ski resort. Most have no inkling that in a high mountain valley just over the ridgeline, excavators the size of houses have sculpted the mountainside into a steeply terraced pit 1,800 feet deep, Bloomberg Markets magazine reports in its September issue.

This is Los Bronces, one of the world’s richest copper mines. Anglo American Plc (AAL), the London-based company that owns Los Bronces, spent $2.8 billion from 2007 to 2011 to double the size of the mine. And Los Bronces is just one of four megaprojects that Anglo Chief Executive Officer Cynthia Carroll has initiated or pushed through construction since she took over in 2007 — each representing a wager in excess of $1 billion on the continued rise of China, India and other emerging markets.

Los Bronces is also at the center of a legal battle between Anglo and Codelco, the Chilean state-owned mining company. The dispute — over whether Anglo can block Codelco from exercising an option to buy half of Anglo’s Chilean subsidiary — has spooked Anglo investors and weighed on the company’s share price, which dropped more than 15 percent from the time the controversy erupted in October to August 8.

NEWS RELEASE: Debut Concludes Agreement With Aroland First Nation and Appoints Martin Doyle to the Board of Directors

August 23, 2012

TORONTO, ONTARIO – (Aug. 23, 2012) – Debut Diamonds Inc. (the “Company” or “Debut”), (CNSX: DDI), is very pleased to announce that it has concluded an Exploration Agreement with the Aroland First Nation (“Aroland”) in connection with the Company’s Nakina diamond exploration project located north of Nakina, Ontario.

The agreement includes benefits for the community of Aroland provided by way of Debut financial contributions in support of certain social and cultural programs, and also includes employment and service related business opportunities. In return, Aroland has approved and will continue to support the Company’s exploration activities for the duration of the project. The agreement provides for the proper handling and protection of any sacred or other culturally significant sites, and contains comprehensive plans for the prevention, mitigation and remediation of any environmental impacts which may result from the Company’s exploration activities in the field.

Chris Meraw, President of Debut Diamonds states, “Our agreement with Aroland emphasizes the need for mutual respect and a positive relationship between the parties during all phases of the project and while this approach not only brings economic opportunities to the community, it also provides an element of certainty for the company’s exploration work in the area.”

Shore Gold to build Saskatchewan’s first diamond mine – by Marilyn Scales (Canadian Mining Journal – August 2, 2012)

August 3, 2012

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.

Driven by diamonds

The idea of finding diamonds in Saskatchewan was met with scepticism in the 1980s. A Russian geophysicist, Dr. J.G. Strnad, predicted the existence of diamondiferous kimberlites, noting the large geophysical anomalies in the province’s sedimentary basin. Knowledgeable diamond miners thought the anomalies too large to be kimberlites. The targets in Saskatchewan certainly were outside (and outsized) their experience in South Africa.

But Strnad was right. The first kimberlite in the Fort à la Corne area was drilled by De Beers in 1988. The next year a venture of Cameco and Uranerz drilled another. The properties were combined as the Fort à la Corne (FALC) joint venture in 1992. Ten years later the JV had a large number of targets, and prioritizing them was difficult.

Not so for Shore Gold of Saskatoon. The company drilled the Star kimberlite in 1996. With one good target, drilling expanded, and eventually in 2002 a bulk sample program was begun.

Diamonds hit rough patch as demand falls – Pav Jordan (Globe and Mail – July 18, 2012)

July 18, 2012

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.

Harry Winston Diamond Corp. is grappling with rising diamond inventories and falling prices, as the slack global economy prolongs a year-long slump.

The Toronto-based gem company said on Tuesday that it would likely not sell all of its production in the fiscal second quarter ending this month, and that it expects to have higher-than-normal inventories as diamond cutters encounter difficulties arranging affordable financing.

“The rough diamond market has experienced softened demand since the beginning of the year,” Harry Winston said in a report. The premier diamond jeweller and luxury retailer – with locations in fashion capitals from New York and Beverly Hills to Paris, Beijing and Hong Kong – estimated that market prices have dipped 8 per cent since April.

Diamond prices are still struggling to recover since falling off a cliff over a year ago, when the global economic outlook darkened suddenly, spoiling the plans of speculators who had stocked up in anticipation of a stronger economic recovery after the 2008-09 crisis.

Diamond mines in Canada at risk – by Matthew McClearn (Canadian Business Magazine – May 04, 2012)

November 4, 2015May 7, 2012

Founded in 1928, Canadian Business is the longest-publishing business magazine in Canada.

Diamonds are symbols of permanence. Some—thought to have arrived on meteorites—may be 10 billion years old, more ancient than the planet itself. The fortunes of diamond mines, by contrast, can be protean. That’s worrisome for the Northwest Territories, home to Canada’s two largest diamond mines, Ekati and Diavik. Since November, their majority owners (multinational mining giants BHP Billiton and Rio Tinto, respectively) both have commenced reviews of their diamond operations, effectively putting both mines up for sale. Some analysts speculate these reviews could result in individual mine sales or initial public offerings of entire diamond divisions.

Canada’s diamond industry has also reached a crossroads, for related reasons. It’s been more than two decades since geologists Chuck Fipke and Stewart Blusson discovered diamond-rich kimberlites in the N.W.T., sparking the biggest staking rush in Canadian history. Their Ekati mine, developed in partnership with BHP, opened in 1998. Rio’s Diavik followed in 2003. It’s tough to understate these mines’ impact on an industry characterized for most of the 20th century by monopolistic practices. By the early 2000s, Canada had become the world’s third-largest diamond-producing nation, behind Botswana and Russia. Our mines helped break the famed De Beers cartel.

It couldn’t last forever, though. In 2007, two men pondered the industry’s future. Tom Hoefer, then manager of public affairs at Diavik, warned at a conference that the industry needed to ramp up exploration. Canada’s mines were all old discoveries, and it was taking ever longer to bring new ones into service.

Innovative CSR solutions for troubled Attawapiskat – by Marilyn Scales (Canadian Mining Journal – April 5, 2012)

November 5, 2015April 6, 2012

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.

Older CMJ readers will remember how the mining companies built remote projects in the middle of the last century. First they found and explored a deposit far from civilization. Next they made a development decision that included building a local town for the workforce. They moved their employees and their families into the town. When the ore ran out, the company moved on leaving the town with little or no economic basis for survival.

Thankfully, we now have better development model, one that does not abandon towns when mining ceases. Modern miners have invented what the Australians call FIFO, meaning fly-in/fly-out operations. We in Canada were pioneers in this practice. Workers are flown to the mine site for periods ranging from days to weeks. They are put up in modern accommodations, well fed, and given plenty of recreational opportunities. Then they fly out, returning to families and homes in usually in the south. Their families enjoy the amenities of city living including educational and employment opportunities. Such opportunities were lacking in small northern mining towns.

The FIFO model works well in developed countries, but it is not appropriate in undeveloped regions. Indigenous peoples in Africa and South America, for instance, do not want to leave their homes for extended periods or they wish to continue their traditional way of living. Canadian miners have again become leaders in the art of giving such people an economic or educational hand up without destroying their culture.