At Alaska mining conference, talk of Pebble and Mount Polley – by Yereth Rosen (Alaska Dispatch News – November 6, 2014)

http://www.adn.com/

The owner of the Canadian mine that suffered a disastrous dam breach in August might face sanctions as serious as criminal penalties, British Columbia government officials said on Wednesday.

Decisions on corrective and possibly punitive steps will be made after provincial officials learn the findings of three separate investigations into the Mount Polley Mine dam failure, said Bill Bennett, British Columbia’s minister of energy and mines.

The Aug. 4 dam failure, though unprecedented for British Columbia, undercut confidence in the safety of mining in the province and around the world, Bennett told an audience at the Alaska Miners Association annual convention in Anchorage. “If it could happen there, where else can it happen? And that’s a question that’s on all of our minds, I think,” he said.

The Mount Polley dam breach has been cited by opponents of the controversial Pebble mine as a harbinger of risks that project poses to Alaska’s salmon-rich Bristol Bay region. Mount Polley is considered a moderate-sized mine for British Columbia; the proposed Pebble copper and gold project would be much bigger, with a much bigger tailings dam and much bigger potential damages, critics say.

Mount Polley’s woes also concern fishermen and environmentalists in Southeast Alaska, many of them already on edge because of spreading mine development just over the border in British Columbia.

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Russia, North Korea Strike Deal: Improved Railway for Mineral Resources – by Yonho Kim (Voice of America – November 8, 2014)

http://www.voanews.com/

WASHINGTON— A senior Russian official said Russia and North Korea are expanding economic ties through a rare joint project that would overhaul the North’s railway system.

Recently, the two countries reached a deal that calls for Russia to improve North Korea’s railway network in return for access to the North’s mineral resources.

According to press reports, Moscow plans to put $25 billion into modernizing more than 3,000 kilometers of the North’s railroads over 20 years.

“The railway modernization project will be funded through the implementing of the product sharing agreement. It’s the result of our discussion with the DPRK’s party. The process of field work and mining will go hand in hand with the process of railway modernization,” said Alexander Galushka, Russia’s minister for the development of the Russian Far East, in an email sent to VOA.

Galushka said a group of Russian firms, including Mostovik, a construction company, is participating in the project. The joint venture is titled Pobeda, which means victory in Russian.

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Iron ore rhetoric should shift from China demand to oversupply – by Clyde Russell (Reuters U.S. – November 7, 2014)

http://www.reuters.com/

LAUNCESTON, Australia, Nov 7 (Reuters) – One of the recurring themes in iron ore’s precipitous decline this year has been the weak state of Chinese demand. The problem with this is that it simply isn’t true.

It doesn’t take much of a search to find media and analyst reports that reference softness in China’s steel market as one of the major reasons for Asian spot iron ore’s 43-percent decline this year to a five-year low of $75.60 a tonne on Thursday.

“Iron ore falls further as Chinese buying interest stalls” was a Reuters headline from Oct. 17.

Just in case anybody thinks I’m picking on my own colleagues, this one is from competitor Bloomberg on Thursday: “Iron drops to lowest since 2009 as APEC curbs dent demand” – a reference to steel mills closures ahead of the upcoming meeting of the Asia-Pacific Economic Cooperation group in Beijing as part of measures to control pollution.

It’s not just news reports, analysts have also pointed to the slowing growth of China’s economy.

“In China, slowing industrial trends and deteriorating property fundamentals are having an adverse impact on bulk commodity demand – prices of iron ore and thermal coal both hit five-year lows,” said a recent research report from a major bank.

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Miners reveal a poverty of thinking on coal – by Richard Denniss (The Age – November 8, 2014)

 http://www.theage.com.au/

Richard Denniss is the Australia Institute executive director.

In a world in which war is waged for humanitarian reasons but sending doctors and nurses to prevent an outbreak of Ebola is considered too risky, almost any spin seems possible. But surely the mining industry’s claim that the best way to tackle global energy poverty is to build more coal mines takes the biscuit.

Coal companies have been very vocal in recent times about the billions of people around the world without access to energy or safe cooking facilities. The CEO of coal mining company Peabody Energy went as far as to say that tackling energy poverty is “the world’s number one human and environmental crisis”.

Now, after a century of making a fortune selling coal to those who could afford it and ignoring those who couldn’t, the mining industry has had an epiphany. Poor people in poor countries lack many of the necessities that Australians take for granted. And, according to their PR firms at least, the miners really want to do something about it.

The world’s greatest hearts and minds have long wrestled with the issue of how to lift people out of poverty. Mahatma Gandi, Nobel laureate Amartya Sen, Microsoft billionaire Bill Gates – they’ve all spent years pondering where best to start and how best to help. Is it by educating the masses, preventing aids and malaria, providing micro finance, or just cutting taxes and letting the market rip?

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Iron Ore Has Biggest Weekly Loss Since May on Supply Glut – by Jasmine Ng (Bloomberg News – November 7, 2014)

http://www.bloomberg.com/

Iron ore capped the biggest weekly decline in more than five months amid expanding global surplus, with Vale SA’s opening of a port in Malaysia highlighting rising supplies and investments by the world’s largest shippers.

Ore with 62 percent content delivered to Qingdao lost 4.7 percent this week to $75.84 a dry metric ton, according to data from Metal Bulletin Ltd. The decline completed three weeks of losses, deepening a bear market. Prices, which rose 0.6 percent today to snap a five-day losing streak, reached $75.38 yesterday, the lowest since September 2009.

The raw material lost 44 percent this year as producers including Brazil’s Vale, the world’s largest shipper, and BHP Billiton Ltd. and Rio Tinto Group (RIO) in Australia expanded supplies and spurred the glut. Data this week showed record exports of the steel-making raw material from Australia’s Port Hedland last month. Mill closures ordered by China this week to curb air pollution for a global summit were also seen hurting demand.

“Demand in China is weak because some mills were asked to stop production before the APEC meeting,” Ben Cheung, head of metals at ABN Amro Group NV in Hong Kong, said before the price data was released. “The major producers are still expanding supply to try to increase market share. The over-supply situation doesn’t look like it will be alleviated next year.”

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Canada’s Potash to spend over $53 million in US Clean Air Act case – by Jonathan Stempel and Rod Nickel (Reuters U.S. – November 6, 2014)

http://www.reuters.com/

(Reuters) – Potash Corp of Saskatchewan Inc agreed to spend more than $52 million on plant improvements and pay a $1.3 million civil penalty to resolve U.S. charges that it violated the Clean Air Act over the emission of harmful pollutants such as sulfur dioxide, U.S. authorities said.

Thursday’s accord with the world’s largest fertilizer producer includes a consent decree, and is the largest in the U.S. Department of Justice’s effort to address Clean Air Act violations by sulfuric acid producers.

It resolves claims by the Justice Department and the U.S. Environmental Protection Agency that three Potash units built or modified several sulfuric acid plants in ways that allowed the emission of excess sulfur dioxide into nearby communities.

Potash spokesman Tom Pasztor said that while the company disagrees with the EPA’s interpretation of the Clean Air Act, “we opted, rather than litigate, to work with them and other regulators to resolve this dispute.”

Sulfur dioxide has been linked to respiratory and cardiovascular problems, including premature death, and contributes to acid rain, haze and smog.

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My Turn: Transboundary mines a looming problem [Mining on British Columnbia/Alaska border] – by Joe Mehrkens (The Juneau Empire – November 7, 2014)

http://juneauempire.com/

Joe Mehrkens is a retired forest economist living in Petersburg.

On Oct. 24, a public forum was held on the potential impacts to the Southeast fishing industry from new large mines in British Columbia. This is not the same old battle between greenies and boomers over development. It is a large, growing problem that has no institutional mechanisms to ensure environmental safeguards or provide any means to compensate third parties for potential damages.

This summer, a large tailings dam failed at the Mount Polley mine. The broken dam dumped 14.5 million cubic feet of water and slurry into salmon waters (Polley Lake, Hazeltine Creek, Quesnel Lake and Cariboo Creek). Even more disturbing, these polluted waters are a tributary of the Frazier River — the most productive sockeye salmon river in British Columbia. While total damages will be not quantified for years, it is characterized as Canada’s worst environmental disaster in modern times. Many more large mines are planned as BC expands its energy grid to new mineral deposits.

The Mount Polley failure may be a harbinger of the future. Environmental restoration will be minimal or nonexistent, and there will be no compensation for damage to non-mining interests — on either side of the border. Even if damaged parties successfully sue for damages, the mining company can go bankrupt. That process can result in shallow pockets when it comes to damage awards.

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Alaska Legislature inherits mother of political footballs – the Pebble Project – by Dorothy Kosich (Mineweb.com – November 6, 2014)

http://www.mineweb.com/

Another ballot measure has thrown yet another hurdle into Northern Dynasty’s quest to develop the Pebble Project.

RENO (MINEWEB) – As Alaskan voters demonstrated they are more than willing to tax and regulate the production, sale and use of marijuana in the state, and resoundingly voted to increase the state’s minimum wage, they are not about to make it easy for the Pebble Mine near Bristol Bay.

Ballot Measure 4, or the “Bristol Bay Forever” initiative, was aimed squarely at the proposed Pebble copper-gold-molybdenum mine in the Bristol Bay region of Southwest Alaska. The measure was passed by a resounding margin of 65.32% to 34.68%, according to the Alaska Division of Elections.

Officially described as “An Act Providing for Protection of Bristol Bay Wild Salmon and Waters Within or Flowing into the Existing 1972 Bristol Bay Fisheries Reserve”, the measure requires the Alaska Legislature to “approve future large-scale metallic sulfide mines in the Bristol Bay Fisheries Reserves (BBFR) by passing a law”.

“The law would have to find that any proposed mine would not endanger the BBFR fishery. The approval would be in addition to any other required permits or authorizations,” according to the full ballot summary.

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Friedland’s Ivanhoe Gets South Africa Platinum Mine Go-Ahead – by Franz Wild (Bloomberg News – November 5, 2014)

http://www.bloomberg.com/

Billionaire Robert Friedland’s Ivanhoe Mines Ltd. (IVN) gained the most in 17 months after overcoming local opposition to get final approval to build one of the world’s biggest platinum mines in South Africa.

The country’s Department of Mineral Resources signed off on the license to produce platinum-group and base metals at the $1.6 billion Platreef project in the northern Limpopo province for a renewable 30-year period, the Vancouver-based company said in a statement today.

The authorization “signals the South African government’s determination to grow our country’s economy,” Mines Minister Ngoako Ramatlhodi said, according to the statement. “The Platreef Project will attract foreign capital, create much needed jobs and contribute significantly to socio-economic development in areas surrounding the project.”

The approval means Ivanhoe’s local unit, Ivanplats, will scrap a plan to cut jobs at Platreef, it said. The company had initiated the process because it said it didn’t have a definite date to start mining.

Ivanhoe jumped the most intraday since May last year, climbing 15 percent to trade at 93 Canadian cents by 10:29 a.m. in Toronto.

Local Prosperity

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Gold firms plan drastic cuts to stay afloat as bullion sinks – by Silvia Antonioli and Nicole Mordant (Reuters India – November 6, 2014)

http://in.reuters.com/

LONDON/VANCOUVER Nov 6 (Reuters) – Struggling gold producers plan increasingly drastic measures such as scrapping dividends, cutting jobs, halting projects and shutting mines to survive the latest price plunge, but not all of them will make it.

Gold tumbled to a more than four-year low of $1,137.40 an ounce this week, rekindling memories of last year’s 28 percent drop to $1,196. That fall put an abrupt end to years of over-spending on expansion projects and forced producers to cut costs.

Gold prices recovered early in 2014, but the slide in the past three months to new lows will force companies to step up their efforts to cope.

According to Citi analysts, about three quarters of gold mining companies burn cash at spot prices just below $1,200 on an all-in cost basis, which includes head office, interest, permitting and exploration costs.

Buenaventura, Medusa and Iamgold are among the highest-cost producers with all-in costs well above $1,300, a Citi note to investors said.

“Everyone has started now to appreciate that the music has stopped and there are only so many chairs,” Mark Bristow, chief executive of gold miner Randgold, said in an interview. He said he was frustrated that not much high-cost production had been shut down so far.

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Technology slashes power use at Glencore’s huge S African chrome smelter – by Martin Creamer (MiningWeekly.com – November 5, 2014)

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

STEELPOORT, Limpopo (miningweekly.com) – The Lion ferrochrome smelter owned and operated by the Glencore Merafe Chrome Venture, uses 37% less electricity than conventional ferrochrome processes to produce the equivalent volume of ferrochrome.

In addition, the smelter needs far less coke than conventional smelters as well as using significant amounts of locally produced, lower cost anthracite and char. (Also see attached video).

Had the Lion operation not installed Premus technology, it would have needed an additional 1 776 MWh to produce the same volume of ferrochrome. Instead, all four furnaces collectively utilise some 4 800 MWh a day. (Also see attached video)

The efficient use of energy – significantly enhanced through pelletising to cope with increasing volumes of fine chrome ore, in-house training programmes to overcome skills shortages, the proximity of the Port of Maputo, the use of more cost-effective upper group two (UG2) chromite ore recovered from platinum tailings, as well as radically reduced use of expensive coke – are the key sources of competitive advantage that place both phases of Lion – known as Lion I and Lion II – in a cost-leadership position.

The UG2 ore is sourced from the nearby Mototolo mine, a platinum joint venture between the London-, Hong Kong- and now also Johannesburg-listed Glencore, black economic-empowerment (BEE) partner Kagiso Tiso and Anglo American Platinum.

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Silver lining in precious metals’ rout catches out coin mints – by A. Ananthalakshmi (Reuters/Daily Mail – November 5, 2014)

http://www.dailymail.co.uk/home/index.html

SINGAPORE/NEW YORK, Nov 5 (Reuters) – A tumble in silver prices to four-year lows has triggered a global scramble by consumers to purchase silver coins and bars as the metal has reached its cheapest level relative to gold in more than five years.

Retailers and distributors in Asia and the United States said they were struggling to get supplies of items such as Canadian Maple Leaf silver coins.

Demand for silver has been strong over the past few months, but retailers say buying interest has soared in recent days as the metal has slid towards its lowest since 2010.

Silver fell to 4-1/2 year lows at $15.17 an ounce on Wednesday, down 21 percent this year so far. “We have seen a significant uptake in demand for silver in recent days, both for coins and for 1,000 ounce bars,” Mark O’Byrne, research director of bullion dealer GoldCore, said.

“Silver Maples are being snapped up by U.S. and Asian buyers as the premiums are lower than for silver Eagles. Silver Philharmonics continue to be popular in Europe as they too are cheaper than Eagles, with a similar premium to Maples.”

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Iron Drops to Lowest Since 2009 as APEC Curbs Dent Demand – by Jasmine Ng (Bloomberg News – November 5, 2014)

http://www.bloomberg.com/

Iron ore declined to the lowest level in more than five years as China ordered some steel mills to reduce production, curbing demand in the world’s biggest user just as increased supplies exacerbate a global surplus.

Ore with 62 percent content delivered to Qingdao fell 2 percent to $76.46 a dry metric ton today, the lowest price since September 2009, according to data from Metal Bulletin Ltd. The drop extends two weeks of losses at the end of October.

The raw material lost 43 percent this year, underperforming all 22 members of the Bloomberg Commodity Index, as producers including BHP Billiton Ltd. expanded supplies and spurred the glut. Some mills in the largest buyer were ordered to suspend output before a summit of world leaders at the Asia Pacific Economic Cooperation forum in Beijing. A recovery in prices may take as long as 18 months, according to Anglo American Plc.

“Steel mills in north China should be working at a reduced rate due to the APEC meeting,” Christian Lelong, an analyst at Goldman Sachs Group Inc. in Sydney, said today before the price was released. “That should be playing a role” in iron ore’s drop, he said by e-mail.

Asia’s biggest economy will host the APEC gathering in the capital from Nov. 7-12, prompting authorities to order factory shutdowns to try to ensure clean air during the event.

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CORRECTED-Gold, diamonds fuelling conflict in Central African Republic- U.N. panel – by Daniel Flynn (Reuters India – November 5, 2014)

 http://in.reuters.com/

DAKAR, Nov 4 (Reuters) – Gold and diamond sales are being used to finance conflict in Central African Republic and United Nations peacekeepers should monitor mining sites to clamp down on illicit trade, a U.N. panel of experts said.

In a report, the panel also said the peacekeeping mission (MINUSCA) should deploy troops to the remote north of the country and use drones to monitor the rebel-controlled region to put an end to simmering violence there.

The mission, which launched in September, is operating at only two-thirds of its planned 12,000-strong capacity.

Central African Republic was plunged into chaos when northern, mostly Muslim Seleka rebels seized control of the majority Christian country in March 2013, prompting a vicious backlash by the largely Christian ‘anti-balaka’ militia.

The panel said that some 3,000 people had been killed between December 2013 – when the U.N. Security Council imposed an arms embargo – and August this year. The number of civilian deaths was falling, however, the panel said.

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Vancouver and Calgary: A Tale of Two Cities – by Donald McInnes (Asian Pacific Post – November 4, 2014)

http://www.asianpacificpost.com/

Donald McInnes has an extensive background in mining and renewable energy ventures in BC and elsewhere. Based in Vancouver, he is a partner of Oxygen Capital Corporation.

Recently Canada 2020 hosted an event in Vancouver called “Cities as Nation Builders” featuring Mayors Robertson from Vancouver and Naheed Nenshi from Calgary. When I looked at the agenda I could not help consider the recent election advertisement of Mayor Robertson.

He demands on one hand that the Federal and Provincial governments help Vision Vancouver pay for and build a subway line to UBC and in the same breath says he must protect us from the Trans Mountain Pipeline.

Everyone in Canada knows that Alberta does not have a provincial sales tax, is near the top in spending more per capita on health care and education and spends more capita on infrastructure than every single other province. How do they do this? I take comfort that Calgarians know, love and celebrate that they are a service and supply centre for the oil patch which gives governments the ability to pay and provide.

By now most Vancouverites will have noticed the crane that was erected at the Seaspan Shipyard in North Vancouver. To me it’s a powerful symbol of economic prosperity and advancement for the province that come from natural resource development.

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