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Iron Ore

Billionaire Battles Native Americans Over Iron Ore Mine – by Christopher Helman (Forbes Magazine – September 9, 2013)

http://www.forbes.com/

Chris Cline became a billionaire through his investments in Illinois coal mines. His privately held Foresight Energy is rolling in profits while other coal companies are failing.

Now Cline hopes to repeat his fortune mining a different mineral, a form of iron ore called taconite, from a giant open pit mine in Wisconsin.

Coal has many detractors, so Cline is accustomed to being in the cross hairs of environmentalist groups. But because Cline’s coal mines are underground operations their impact on the immediate environment is obscured.

That wouldn’t be the case with his proposed taconite mine. Proposed by Gogebic Taconite, which Cline bought a few years ago, the mine would be built in the far northern reaches of Wisconsin near the town of Mellen, in an area crossed by rivers and streams that flow north into Lake Superior.

Wisconing Gov. Scott Walker is in favor of the mine, which is expected to generate 8 million tons a year of taconite and support 700 direct jobs. Naturally, the Sierra Club and Native American tribes are against it.

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Concern growing over Sept-Îles oil spill – by Lynn Moore (Montreal Gazette – September 9, 2013)

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

MONTREAL — An oil spill that happened more than a week ago in Sept-Îles might be far more serious than first reported.

Quebec Environment Minister Yves-François Blanchet visited the area Sunday while cleanup crews tried to contain a large slick before tides and winds take the oil out into the Gulf of St. Lawrence.

While Blanchet urged a more “aggressive approach” to preventing oil spills during his visit, local environmental groups worried about damage to aquatic life in Sept-Îles Bay and beyond.

Overnight on Aug. 31, bunker oil was spilled near a shipping operation of an iron ore pellet plant operated by Cliffs Natural Resources Inc. at Pointe Noire. While the “source of the incident” is under control, investigation into the cause of the incident is ongoing, the company said Sunday.

Some media reports have pointed to a botched reservoir transfer as being at the heart of the problem. Environment Quebec has said that about 450,000 litres of bunker oil were spilled.

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China slowdown spells end of big payday for iron ore traders – by Manolo Serapio Jr and Silvia Antonioli (Reuters India – September 10, 2013)

http://in.reuters.com/

SINGAPORE/LONDON, Sept 10 (Reuters) – With China’s insatiable appetite for iron ore cooling alongside a slowing economy, once in-demand traders of the steelmaking raw material face a new reality: fewer financial perks and tougher resume requirements.

Anyone without a network of connections in top market China need not apply. And the days of guaranteed bonuses to attract the best talent are largely over. Just two years ago, iron ore traders were the envy of even investment bankers, a famously well-paid breed of financial players.

“Two years ago, banks were all over the market. If you could spell iron ore, they wanted you in their team,” said Paul French, the London-based global head of commodities at recruiting firm Global Sage. Now, with iron ore prices retreating from a record near $200 a tonne in 2011 to $134.80, recruiters say the phones are not ringing like they used to.

“I haven’t had a requirement for an iron ore trader for some time. Eighteen months ago we were regularly asked about it and I don’t think we’ve been asked about it in the last 12 months,” said Charles Crichton, Asia general manager at UK-based Commodity Appointments.

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Uruguay Prepares for Iron Rush – by Inés Acosta (Inter Press Service – August 26, 2013)

http://www.ipsnews.net/

The legal framework for large-scale mining is being prepared in Uruguay, a country where mining has never played an important role in the economy but which could become the world’s eighth largest producer of iron ore.

MONTEVIDEO, Aug 26 2013 (IPS) – A bill that would regulate large-scale mining operations is making its way through Uruguay’s two houses of parliament, despite a lack of political consensus and vocal opposition from environmental organisations and other sectors of civil society.

The proposed legislation, submitted by the executive branch and backed by the ruling Frente Amplio (FA) or Broad Front coalition, declares that large-scale mining would serve the “public interest”. But critics charge that the bill was drafted to serve the interests of the Aratirí project planned by the Indian mining group Zamin Ferrous, aimed at the production of 18 million tons of iron ore annually, with a promised investment of three billion dollars.

Opposition to these plans by environmentalists, farmers and other residents of the areas that would be affected by the mining operations is becoming increasingly louder. In the last demonstration against large-scale mining in Uruguay, held on May 10, more than 10,000 participants marched down 18 de Julio Avenue, the main thoroughfare in downtown Montevideo.

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Wisconsin governor, Chippewas battle over open pit mine plan – by Carol Pogash (U.S.A. Today – September 8, 2013)

http://www.usatoday.com/

ODAHAN, Wis. — While laughing children bob in kayaks along the sandy shores of Lake Superior, their somber parents hunch over picnic tables talking about their wild rice, their water, their fish and their way of life. Members of the Bad River Band of Lake Superior Tribe of Chippewa Indians worry about what is to become of their lake, a life source for their people.

Gov. Scott Walker, his fellow Republicans and the governor’s onetime enemies, labor unions, are championing a $1.5 billion open pit mine planned for the Bad River watershed, six miles from the reservation in the pristine Penokee Hills of northern Wisconsin.

On Aug. 30, six Chippewa tribes of Lake Superior sent President Obama a letter requesting the Department of the Interior prepare litigation to protect the wetlands, fisheries, waters and wildlife from mining. The mining area is honeycombed with 70 miles of rivers and streams that flow north into Lake Superior, which the tribes say would be threatened.

This March, Walker signed a bill streamlining the approval process and easing environmental regulations for the proposed open pit iron ore mine, in which wide swaths of earth are removed to extract minerals. The issue playing out in Wisconsin is being repeated elsewhere.

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BURIED SECRETS: How an Israeli billionaire wrested control of one of Africa’s biggest prizes – by Patrick Radden Keefe (The New Yorker – July 8, 2013)

http://www.newyorker.com/

One of the world’s largest known deposits of untapped iron ore is buried inside a great, forested mountain range in the tiny West African republic of Guinea. In the country’s southeast highlands, far from any city or major roads, the Simandou Mountains stretch for seventy miles, looming over the jungle floor like a giant dinosaur spine. Some of the peaks have nicknames that were bestowed by geologists and miners who have worked in the area; one is Iron Maiden, another Metallica.

Iron ore is the raw material that, once smelted, becomes steel, and the ore at Simandou is unusually rich, meaning that it can be fed into blast furnaces with minimal processing. During the past decade, as glittering mega-cities rose across China, the global price of iron soared, and investors began seeking new sources of ore. The red earth that dusts the lush vegetation around Simandou and marbles the mountain rock is worth a fortune.

Mining iron ore is complicated and requires a huge amount of capital. Simandou lies four hundred miles from the coast, in jungle so impassable that the first drill rigs had to be transported to the mountaintops with helicopters. The site has barely been developed—no ore has been excavated. Shipping it to China and other markets will require not only the construction of a mine but the building of a railroad line sturdy enough to support freight cars laden with ore. It will also be necessary to have access to a deepwater port, which Guinea lacks.

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UPDATE 1-Australia ships more iron ore to China as demand stays strong – by Wayne Cole (Reuters U.K. – September 5, 2013)

http://uk.reuters.com/

SYDNEY, Sept 5 (Reuters) – Australian shipments of iron ore to China looked to have stayed strong in August, a month after Australia boasted its second-highest exports ever to the Asian giant and a sign of healthy demand for resources.

Iron ore exports to China from Port Hedland, which handles about a fifth of the global seaborne market for the steel-making raw material, rose 9 percent in August from July.

Ore shipments of 22.3 million tonnes were up a hefty 33 percent on August last year and not far from all-time highs hit in May. Since the figures are released just a few days after the end of the month, they offer a timely leading indicator of demand in China.

Australia is the single largest supplier of the ore to China, ahead of Brazil. Iron ore is Australia’s single biggest export earner, bringing in around A$60 billion ($54.9 billion) in a good year. The strength of shipments increases the chance that Australia will report a trade surplus for August, and also add to economic growth.

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Wisconsin iron ore project accused of ‘sweetheart’ dealmaking – by Dorothy Kosich (Mineweb.com – September 4, 2013)

http://www.mineweb.com/

The fight over the return of Wisconsin iron ore mining is not finished, as opponents try to prove the Gogebic Taconite project will harm water quality in wetlands.

RENO (MINEWEB) – Wisconsin tribes, lawmakers and miners are fighting over an emergency bill introduced in the Wisconsin State Legislature over the long Labor Day weekend and scheduled for hearing Wednesday, which would allow a controversial iron ore project to restrict public access to a parcel of land near the project.

The Gogebic Taconite iron ore company, owned by West Virginia coal magnate, Chris Cline, aims to construct a $1.5 billion iron ore mine in northern Wisconsin after the state legislature enacted permitting reform in March 2013 to bring back iron ore mining to the state. The mine would operate for at least 35 years and generate 700 jobs in an economically hard-hit area of Wisconsin.

However, the battle over the project is far from over as Native Americans have been regularly protesting against it, prompting accusations of “eco-terrorism” by mining officials. In June, protestors were accused of slashing tires, damaging equipment, and knocking over fences on the minesite. Opponents argue the new mine permitting legislation has relaxed environmental regulations that will lead to pollution of the Bad River watershed, which flows north from the proposed mine area into Lake Superior.

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Hope muted but persistent for Labrador Trough iron rush – by Keith Norbury (Canadian Sailings-Transportation & Trade Logistics – August 27, 2013)

http://www.canadiansailings.ca/

Signs abound that enthusiasm for new iron ore mines in the Labrador Trough have tapered off since February 2011 when the spot price was nearly $190 a tonne. Since then, prices have been on a roller coaster, which experienced more downs than ups. They dipped as low as $87 last September, soared back up over $150 in February, and then tumbled back down to below $115 in June.

Coinciding with that volatility, Canadian National Railway suspended a feasibility study on a new $5 billion rail line to serve potential new mines in the Labrador Trough. Mining giant Rio Tinto has put up for sale its 58.7 per cent interest in Iron Ore Company of Canada, one of the Trough’s and Canada’s largest iron ore producers.

Champion Iron Mines Ltd., one of the promising junior players in the Trough, abruptly pulled out of its participation in a new multi-user $220 million multi-user iron-ore port at Pointe-Noire in Sept-Îles, Que. And Cliffs Resources shut down indefinitely its pelletizing plant at Pointe-Noire.

Despite those setbacks, the consensus among financial analysts and economists who follow the trials and tribulations of the iron ore industry, as well as of industry insiders, is that long-term prospects for ramping up iron ore production in the Trough remain solid.

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NEWS RELEASE: Cliffs Natural Resources Inc. Reports on Sustainability Progress

August 27, 2013

For the entire sustainability report, click here: http://www.cliffsnaturalresources.com/EN/Sustainability/Sustainability2012/Documents/Cliffs%202012%20Sustainability%20Report%20-%20Full%20Version.pdf

CLEVELAND, Aug. 27, 2013 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) announced today the release of its 2012 sustainability report, entitled “Embracing our Past, Securing our Future.” The sustainability report is a comprehensive look at Cliffs’ global operations and outlines the Company’s progress in key areas of its sustainability strategy.

(Logo: http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

“This year has been marked by continual change and volatility in the commodities market, which has presented our Company with a number of opportunities and challenges. However, our expectations of personal accountability and business ethics are unwavering,” said David Cartella, vice-president — global environmental affairs, sustainability and counsel. “Going forward, we will continue to build upon a strong foundation of sustainability with the development of a three-year, enterprise-wide strategy. Aligned with business priorities and integrated with operational and functional groups, this strategy aims to maximize our shared value by reinforcing our social license to operate.”

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Ex-Im loan request pits Caterpillar against iron ore miners – by John Myers (Prairie Business – August 26, 2013)

http://www.prairiebizmag.com/

DULUTH, Minn. — It’s not that Minnesota’s congressional delegation doesn’t like Australia, mate. But the idea of a U.S. government bank loaning money to an Australian iron ore mine that will compete with Minnesota taconite?

That’s what they don’t like.

U.S. Sens. Al Franken and Amy Klobuchar and U.S. Rep. Rick Nolan, all Minnesota Democrats, are on record opposing a plan in front of the U.S. Export-Import Bank to invest in equipment for the giant Roy Hill iron mine in Australia’s northwestern Outback.

The Export-Import Bank is considering a request for $650 million in long-term financing to aid the export of $522 million of U.S.-made mining equipment to mine and process ore at Roy Hill. The rest of the money could be going to install the U.S. equipment on site at the mine.

Cleveland-based Cliffs Natural Resources, with four mines in Minnesota and Michigan, has led the charge to stop the loan, saying it threatens U.S. mining jobs and, with new Asian steel produced from Australian ore, eventually threatens U.S. steel industry jobs.

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Iron ore prices moving higher as China steel production rises – by Lawrence Williams (Mineweb.com – August 15, 2013)

http://www.mineweb.com/

After a bit of a dip, iron ore prices are on the rise as Chinese steel production begins to increase again and the world’s top diversified miners will be the likely principal beneficiaries.

LONDON (MINEWEB)  – It should not have escaped anyone who follows the global mining sector’s attention that the world’s three biggest mining companies by a long way, BHP, Rio Tinto and Vale, are also the three biggest miners of high grade iron ore.

There had been much discussion of how these would fare in a Chinese downturn, given that China is by far the world’s largest importer of iron ore and there was comment that iron ore prices would fall dramatically, thus decimating the big three’s revenues and profits – exacerbated perhaps by the fact that they are all growing production with the inevitable additional costs that involves.

What the observers seemed to have failed to take into account is that China, in a recession, is still the equivalent of anyone else in a mega growth phase! Growth falling perhaps from 10% plus per annum to maybe 6 or 7% – figures western economies would give their eye teeth for!

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Iron ore boom vs. Rudd’s doom – by Barry Fitzgerald and Paul Garvey (The Australian – August 16, 2013)

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

ON the hustings and in his campaign ads, Kevin Rudd has been calling the mining boom over.

“The truth is in 2013 the China resources boom is over,” the Prime Minister said on July 11. At the leaders debate on Sunday: “The truth is, with the ending of the decade-long mining boom, we face new economic challenges.” At almost any media opportunity, the mantra is repeated. But he must have forgotten to tell the Chinese — the world’s biggest buyer of mineral commodities.

Ever since returning as PM on June 26, the price of iron ore — Australia’s biggest export by a big margin — has not looked back as Chinese steelmakers frantically restock on the expectation that while there is a slowdown in the country’s infrastructure and urbanisation boom, an economic growth rate of more than 7 per cent on an already greatly enlarged economy means it still needs to suck in vast amounts of the steelmaking raw material.

Iron ore has surged by 26 per cent, or $US29.80 a tonne, to $US142.80 a tonne since Mr Rudd returned to the Lodge and began mapping a re-election strategy that in part at least, links the claimed end to the mining boom to Australia’s ballooning budget deficits.

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ArcelorMittal remains committed to Nunavut iron ore mine – by Robert Gibbens (Montreal Gazette – August 12, 2013)

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

MONTREAL — ArcelorMittal, the world’s largest steelmaker, said Monday it is fully committed to developing a $4 billion open-pit mine with an annual capacity of 18-20 million tonnes of high-grade iron ore on northern Baffin Island in Nunavut.

Steve Wood, ArcelorMittal’s vice-president, Iron Ore Americas, reaffirmed ArcelorMittal’s future plans for long-term development of the Mary River deposits, after addressing the 23rd World Mining Congress at the Palais des Congrès in Montreal. His comments follow skepticism from some industry sources who questioned whether ArcelorMittal was still committed to such a large capacity, following the collapse in global iron ore prices last year, along with a severe slowdown in steel demand.

ArcelorMittal’s commitment to the Baffin Island development comes at a time when executives like Rio Tinto Alcan CEO Jacynthe Côté are talking about the increased risks facing the mining industry, which is struggling with the vagaries of the economic cycle, rising operating, compliance and social costs, and locations that are more remote and challenging.

The blow to iron ore prices last year led ArcelorMittal to reduce its interest in Baffinland Iron Mines Inc. — owner of the almost inexhaustible Mary River deposits — from 75 per cent to 50 per cent.

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Vale Says China Proving Pessimists Wrong on Steel Output – by Juan Pablo Spinetto (Bloomberg News – August 8, 2013)

http://www.bloomberg.com/

Vale SA (VALE), the biggest iron-ore producer, forecast a 10 percent increase in steel output this year in China, the world’s largest steelmaker. China probably will produce 780 million metric tons of steel this year compared with 683 million tons two years ago, underpinning a favorable view on the world’s largest emerging market, Chief Executive Officer Murilo Ferreira said today.

“China has once more proved the pessimists wrong,” Ferreira said during a conference call to discuss quarterly earnings. “Our view related to China continues positive.”

The shares of Vale and major rivals BHP Billiton Plc and Rio Tinto Plc (RIO) rallied today after Chinese imports climbed to the highest in 14 months and an iron-ore index reached a three-month high. The Rio de Janeiro-based company’s shares are down 27 percent this year after a slowdown in commodities demand and rising costs crimped miners’ earnings.

After tumbling 15 percent in the second quarter, iron-ore prices entered a bull market on July 26 after China replenished inventories and boosted steel output. In a presentation on its website today, Vale said a sharp drop in steel inventories in recent months opens the door to greater consumption growth.

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