A nickel mine and the missing Placentia processing plant – by Trevor Cole (Globe and Mail – June 24, 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.

It’s amazing how often serendipity plays a role in uncovering a great story. One morning in May of 2000, I’d come back from the cafeteria with a coffee in my hand and I was standing restlessly at my desk at the magazine, where I was a staff writer. I’d finished my work on a previous assignment and it was time to look for the next subject. In the few minutes I’d been gone, a pile of office flotsam had landed on my desk.

It was mostly a collection of press releases and industry publications I’d never bothered to look at. At another time, I might simply have moved the pile on to someone else’s desk. But this time I shuffled through it. And about 10 centimetres down, my eyes landed on an edition of The Charter, a thin, weekly newspaper from the little town of Placentia, Newfoundland.

Who knows what it was doing there; maybe the mailroom had misdirected it. With the mildest sense of curiosity, I began to turn the pages of cheap newsprint, and within a minute, I saw that something was going on in Placentia. Furious letters to the editor, stories quoting tirades by Placentia’s mayor against other town leaders. The anger seemed to have something to do with fallout from the huge nickel discovery six years earlier at Voisey’s Bay, Labrador, some 1,100 kilometres to the north.

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Indonesian export ban not a hangup for Vale N.L. – by Ashley Fitzpatrick (St. John’s Telegram – May 30, 2014)

http://www.thetelegram.com/

Long Harbour first nickel expected by end of second quarter

A ban by Indonesia on the export of unprocessed ores containing nickel will not affect the startup of Vale’s new hydromet processing facility in Long Harbour.

As previously reported, the plan for the facility in Newfoundland and Labrador is to use nickel matte from Indonesia during startup, before transitioning to ore from the Voisey’s Bay mine in Labrador as a main feed. Workers inspect equipment at Vale’s hydromet nickle processing facility in Long Harbour. — Telegram file photo

The Indonesian nickel matte, at about 78 per cent nickel, is considered less likely to cause difficulties for the Long Harbour commissioning in comparison to the material from Voisey’s Bay, at about 20 per cent nickel, as individual parts of the multibillion-dollar plant are checked and made ready for regular use.

According to Vale’s vice-president of corporate affairs in Toronto, Cory McPhee, the mining giant has been conscious of the potential for the ban on raw exports from Indonesia for years, as the company has multiple processing facilities in that country.

“The Indonesian restrictions on exports of unprocessed ore were first signaled by the Indonesian government years ago with the 2009 Mining Law which included stipulations calling for value-added domestic processing,” McPhee said in an emailed response to questions Thursday.

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Benefits agreement for [Newfoundland and Labrador] Kami iron ore mine announced (CBC News Newfoundland and Labrador – May28, 2014)

http://www.cbc.ca/nl/ The completion of the benefits agreement is a major step for the project, and Labradorians are being told they’ll benefit most, thanks to a Labrador-first hiring protocol. We hear from Natural Resources Minister Derek Dalley, from people on the street in Labrador West – an area still reeling from the closure of the Wabush …

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Swimming in a sea of sharks – by Ashley Fitzpatrick (St. John’s Telegram – May 29, 2014)

http://www.thetelegram.com/

When it comes to iron ore producers, Canada is a minnow in a sea of sharks, according to Alderon Iron Ore president and CEO Tayfun Eldem.

Sea of sharks

Speaking to an Atlantic Provinces Economic Council (APEC) gathering in St. John’s Wednesday morning, he said the country is producing about 45 million tonnes of iron ore a year, almost all from the Labrador Trough region on the Quebec-Labrador border. That production is about one and a half per cent of the total seaborne trade.

He compared this to the region of Western Australia, where mining companies are producing more than 450 million tonnes per year.

About 24 hours before his speech at the Delta Hotel, Alderon’s top man was signing a benefits agreement with the Government of Newfoundland and Labrador, based on the assumption the company’s Kami iron ore mine will be fully financed by the end of the summer — in a world where the sharks are always circling.

The Kami mine would mean $4 billion in tax revenues for the province, $2.6 billion by more conservative government estimates, and 400 long-term jobs post-construction, and would help keep Canada in the game globally as an iron ore producer.

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Kami iron ore mine to tap apprentices – by Ashley Fitzpatrick (St.John’s Telegram – May 27, 2014)

http://www.thetelegram.com/

Pen has been put to paper on an agreement stipulating direct benefits to be seen by Newfoundlanders and Labradorians with the start-up of a new mine in Labrador West.

Premier Tom Marshall (centre) prepares to sign a benefits agreement, alongside Natural Resources Minister Derrick Dalley (left) and Alderon president and CEO Tayfun Eldem. — Photo by Ashley Fitzpatrick

The Kami iron ore mine is being developed under a partnership of Alderon Iron Ore and China’s Hebei Iron and Steel. It is expected to contribute $18 billion to the provincial GDP during a 30-year life, providing the province $2.6 billion in taxes and royalties.

The new benefits agreement looks beyond royalty and taxation numbers, addressing topics including hiring and procurement practices and how the development can help expand the local skilled trades workforce. A signing ceremony was held Tuesday morning at Confederation Building in St. John’s.

The standing deal includes requirements for local-first hiring, the provision of a 40-space child-care centre in Labrador West and a $7-million education and training fund to be provided as the mine goes into production.

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Vale N.L. not ordered to hold back waste – by Ashley Fitzpatrick (St. John’s Telegram – May 8, 2014)

http://www.thetelegram.com/

Former Environment Canada officer details slow response to failed tests

Environment Canada officer Ron Hunter was kept informed as, repeatedly, samples of treated liquid waste from Vale Newfoundland and Labrador’s mine site at Voisey’s Bay failed a key environmental safety test in October 2011.

According to the now-retired officer’s testimony, during a day of trial at provincial court in St. John’s Wednesday, it took the better part of the month and a third failed test before he felt the need to give formal direction to the company about the discharge of the waste into nearby Anaktalak Bay, on the Labrador coast.

Release of treated mine waste into the waters is permitted, but only with regular testing showing it remains within specific parameters, for the protection of the environment.

During Hunter’s testimony, a reference was made to a “final discharge point monthly summary,” stating a total volume of waste released into the bay during the month in question was 492,337 cubic metres — enough to fill 197 Olympic-size swimming pools.

The Telegram has yet to see that document.

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Ministers on the ground in Wabush – by Ty Dunham (St. John’s Telegram – February 18, 2014)

http://www.thetelegram.com/

Government pledges to help displaced workers transition into new jobs

Displaced mine workers in Wabush have been offered help from the provincial government with apprenticeship and worker development programs.

Approximately 400 mine employees have been worried about the future ever since Cliffs Natural Resources announced last week that the Wabush Scully Iron Ore Mine was being idled.

Advanced Education and Skills Minister Kevin O’Brien said his department has a range of programs for those affected. “We can train people not currently trained. We understand there is a highly skilled workforce at Wabush Mines as well,” he said.

Last week, Premier Tom Marshall said cabinet ministers will visit Labrador West regularly to work with the communities to help with the transition. Ministers have met with union officials, municipal leaders and companies to identify opportunities for skilled workers as quickly as possible.

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UPDATE: 500 workers affected as Wabush Mines idled (St. John’s Telegram – February 11, 2014)

http://www.thetelegram.com/

Cliffs Natural Resources is shutting down production at Wabush Mines, affecting 500 workers currently employed there.

The news was confirmed in an official statement by the company. The statement was not specific to the status of Wabush Mines, but instead focused on a more than 50 per cent slash in the company’s capital spending across its business year over year.

Premier Tom Marshall has issued a statement in response to the news. “The decision by Cliffs Natural Resources to idle its mining and processing operations at the Scully Iron Ore Mine in Wabush is very disappointing. While we believe this was undoubtedly a difficult decision for Cliffs, our thoughts are with employees of the mine and their families during this challenging time,” Marshall said.

“I will be in Wabush this week with Ministers Dalley and McGrath for discussions with stakeholders. We will continue to further opportunities for development in Labrador West. We remain confident in the future of the mining industry in the region.”

Wabush Mines started pulling ore from the Scully Mine in 1965. The ore goes to a concentrating plant at site and is then moved, by rail, to Point Noire, Que.

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Quebec v. Labrador: natives and the hydropower sweepstakes – by Bill Gallagher (First Perspective – February 6, 2014)

http://www.firstperspective.ca/

In my book, “Resource Rulers: Fortune and Folly on Canada’s Road to Resources”, I posit that Quebec had already won a 10-year head start over Newfoundland & Labrador in the hydropower race to North American energy markets. Quebec’s strategic power-surge was cemented by the ‘Paix des Braves’ in 2002; universally regarded as a pivotal resource management legal arrangement that fully recognized the Crees as ‘Resource Rulers’ within their vast homeland containing the watersheds.

Conversely, Newfoundland, at the same time, was finally rebounding on its troubled Voisey’s Bay mining project; yet it was soon to find itself back in court fighting the Labrador Metis Nation and losing to them at the appellate level. In fact, the province had earlier lost at the appellate level to the Innu Nation on the Voisey’s Bay project; which loss had instigated a project shut down and stock drop (similar to what is playing out today in the Ring of Fire with Cliffs Natural Resources – in what is fast becoming an almost unbelievable case of history repeats!)

To no-one’s surprise, the announcement of the Muskrat Falls hydropower project in 2011 landed in an unsettled and charged Labrador native empowerment landscape. Both the Labrador Metis Nation (now called NunatuKavut) and the Nunatsiavut Government, launched repeated and sustained press releases and legal maneuvers to persuade the province and its crown utility (Nalcor) to address the pending impacts on their traditional lands.

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Poo, power, profits and the cult of green investment – by Terence Corcoran (National Post – February 6, 2014)

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

From Toronto’s zoo poo bonds the World Bank’s fossil fuel divestment plan to green bonds and Muscrat Falls, green investment is uneconomic

At the high-powered World Economic Forum meeting in Davos last week, the head of the World Bank, Jim Yong Kim, called on the world’s top investors and pension funds to “divest” their fossil fuel stocks and bonds and move cash into green technologies. Canada contributes more than $400-million a year to the World Bank and holds 2.43% voting power: Was that voting power cast in favour of Mr. Kim’s “get out of oil and gas” campaign, in contradiction to the Canadian government’s hunger for fossil fuel expansion and investment?

Not that it matters. The World Bank’s anti-fossil fuel effort, and its specific endorsement of the burgeoning international movement to promote fossil fuel divestment, is part of a globe-spanning effort that encompasses a vast range of initiatives.

Canada is a leader in the field, with many projects underway. These range from the growing issuance of Green Bonds to the building of giant multi-billion-dollar so-called green energy projects.

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How the Polar Vortex revealed the hubris in Newfoundland’s leadership – by Konrad Yakabuski (Globe and Mail – January 9, 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.

Mother Nature just forced two of Canada’s premiers to show what they’re made of, after winter storms left thousands of their citizens without electricity.

Ontario’s Kathleen Wynne was sugar, spice and everything nice, delivering groceries and feeling everyone’s pain. Even when she bungled a gift-card distribution to the powerless, she showed that her heart was in the right place.

Newfoundland and Labrador’s Kathy Dunderdale, however, seemed to lead her province through the outages with neither heart nor head. With most of the Rock in the dark, she dismissed the situation as a non-crisis that underscored the wisdom of her government’s controversial Muskrat Falls hydroelectric project. “Would I have done things differently? Absolutely not,” she insisted after power was mostly restored.

Newfoundland premiers have rarely been known for humility, and Ms. Dunderdale seems to be keeping the tradition alive. But her self-assurance is misplaced.

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Vale commissions hydromet nickel plant at Long Harbour (Northern Miner – December 11, 2013)

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

VANCOUVER — Twenty years after Diamond Fields Resources discovered nickel in at Voisey’s Bay in Labrador and eight years after Vale (NYSE: VALE) predecessor Inco started mining, work is now wrapping up on a state-of-the-art hydrometallurgical facility that will process the mine’s rich nickel–copper–cobalt ore without smelting it.

Vale has been sending ore from its open-pit Voisey’s Bay mine to its smelters in Sudbury, Ont., and Thompson, Man. Starting early next year those long hauls will be over, replaced by shipments to a new facility in Long Harbour, 100 km west of St. John’s, N.L. — keeping a promise made to the provincial government that Voisey’s Bay ore or its equivalent would be refined in-province.

Cutting back on haulage is just one advantage. More important is the new facility design, which represents the first time hydromet technology will be used on a large scale to produce nickel.

Hydrometallurgy uses water, oxygen, solvents and high pressure to dissolve a metal from its ore, or from a concentrate or intermediate product, such as matte (the product of smelting).

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Stop-work orders common at mine sites – by Ashley Fitzpatrick (St. John’s Telegram – November 04, 2013) (Part 1 of 4)

http://www.thetelegram.com/

Safety officers also issued 696 safety directives to IOC and Wabush Mines in last year

Three years on with no occupational health and safety (OHS) officers in Labrador, and the two positions available remain unfilled. Not that Labrador worksites require close supervision, because major employers don’t often violate the province’s OHS regulations.

Except that they have — repeatedly.

Two of the largest employers in the province are in Labrador West — the iron ore mines at Wabush and Labrador City. The Wabush mine is operated by Cliffs Natural Resources and the Labrador City mine is operated by the Iron Ore Co. of Canada (IOC).

According to ServiceNL, the mines have collectively been given 696 directives from visiting provincial government OHS officers in the last year, from Oct. 1, 2012 to Sept. 30, 2013.

Supervisors at the mine in Wabush were handed 235 directives. The Labrador City mine received 461. There were also regular stop-work orders at both sites.

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Chris Verbiski Turned A Nickel Mine Discovery Into Two Of The Finest Fishing Lodges In The World – by Monte Burke (Forbes Magazine – September 4, 2013)

http://www.forbes.com/

This story appears in the September 23, 2013 issue of Forbes.

The best Atlantic salmon fishing outfit in Labrador–and just possibly in all of North America–was born in the gloaming of Sept. 16, 1993, when two mineral prospectors made the discovery of a lifetime. Chris Verbiski, then 25, a college dropout from Newfoundland with an obsession for rocks, had teamed up with a man named Albert Chislett, then 45, to scour the wild, windswept crags of Labrador for diamonds on behalf of a small mining company.

It had been a rough summer. The two men were sun-blistered and swollen with bug bites. They’d burned through their advance money and were nearly broke. Worse: Only a few weeks remained before the weather shut down prospecting in this harsh, beautiful region on the northeast coast of Canada.

On that early evening, as they headed back to camp in the Inuit community of Nain, they spotted something from their helicopter: a thick stripe of rust-colored rock on a hill above Voisey’s Bay. They hovered over it. Verbiski marked the spot on his survey map. But they were low on fuel and couldn’t descend. It seemed promising–perhaps the indicator of a surge of metals that had been pushed to the earth’s surface a billion years ago. After the fruitless summer that hope was all they had.

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A Custom Fit [for Vale’s Newfoundland nickel project] – by Marianne Dupla and Dave Oliphant (Canadian Mining Journal – August 2013)

The Canadian Mining Journal is Canada’s first mining publication.

While it was rigorously testing a customized use of hydrometallurgical technology to assure commercial viability for its mammoth nickel-mining project, Vale Canada Ltd. was also testing a comprehensive effluent treatment program that incorporates new high-rate softening and clarification technology to help protect the environment.

International mining company, Vale, is nearing completion of its US$3.7-billion nickel processing plant at Long Harbour, on Newfoundland’s Placentia Bay. The Brazilian mining company’s wholly owned subsidiary, Vale Canada Limited, formerly known as Vale Inco, is directing the construction of the processing plant, which began in April 2009.

Start-up of the plant is scheduled for August 2013. Once fully operational, it is expected to annually produce 50,000 metric tons of nickel, 4,700 metric tons of copper, and 2,500 metric tons of cobalt.

The mined ore will first undergo a concentrating process at the Voisey’s Bay mine site in Labrador before it is transported by ship to the processing plant at Long Harbour. By processing ore concentrate at the plant, Vale anticipates achieving higher metal recoveries while also eliminating the time and expense of shipping to Ontario or Manitoba for refining.

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