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UPDATE 2-Brazil’s Vale hits iron ore record, base metals output lags – by Stephen Eisenhammer (Reuters U.K. – July 24, 2014)

http://uk.reuters.com/

(Reuters) – Brazil’s Vale SA produced record amounts of iron ore in its latest second quarter, rising to the task of battling Australian rivals for market share, but weaker performance at other divisions fanned some concern ahead of results next week.

Iron ore production rose 12.6 percent to 79.45 million tonnes from a year earlier, Vale said on Thursday, as better weather conditions combined with ramp ups at its two main mine sites in Brazil. The Brazilian company is the world’s largest producer of the mineral.

Vale is expected to post an annual decline in second-quarter net income of more than 40 percent when it reports on July 31, according to an average of analyst forecasts compiled by Reuters.

Giants Vale, Rio Tinto Plc and BHP Billiton Plc are all increasing iron ore capacity in a move expected to squeeze higher-cost producers out of the market. But with iron ore prices .IO62-CNI=SI languishing near 22-month lows during the period, analysts had been looking to Vale’s nickel division to pick up some of the slack.

Some of those analysts were subsequently disappointed as nickel production fell 5.2 percent to 61,700 tonnes due to maintenance at the Sudbury mine in Canada. Its VNC project on the French Pacific island of New Caledonia also suspended operations after an acid spill in May.

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Fifty years on, Big Nickel shines brightly -by Ryan Byrne (Sudbury Star – July 23, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Arguably Sudbury’s most iconic image, the Big Nickel, celebrated its 50th birthday Tuesday, drawing hundreds of people to the monument to welcome in its golden anniversary.

The event kicked off at noon with a full day of live music, activities for all ages, and celebrations of what it means to be a Sudburian.

At 1 p.m. Mayor Marianne Matichuk decreed July 22nd to henceforth be Big Nickel Day. People young and old celebrated with face painting, gold panning, live music from local artists including Chicks with Picks and Larry Berrio and more, with the event wrapping up with a fireworks display late last night.

The Blue Saints Drum and Bugle Corps performed at the start of the event, in honour of their group, which performed at the unveiling of the nickel 50 years ago.

“Commemorating the 50th anniversary of the Big Nickel was really important to us, it’s a big milestone and we’re the keepers of this iconic landmark in Sudbury,” said Dynamic Earth senior manager Julie Moskalyk. “We’re pretty proud to be able to celebrate the Big Nickel like this with the entire community.”

“Fifty years ago, the Sudbury region was a pretty black, barren rock area so the Big Nickel was one of the first ways that Sudbury started to draw tourists,” Moskalyk said. “Today it’s one of the top 10 roadside attractions and it’s a part of a significant tourism draw to the Greater Sudbury region.”

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First Nickel’s plan for Sudbury mine draws praise – by Carol Mulligan (Sudbury Star – July 23, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The owners of First Nickel Inc. have gone “over and above” standard in determining a method to allow workers to safely re-enter and return to work in the area of Lockerby Mine in which two drillers were killed May 6.

Normand Charles Bisaillon, 49, and Marc Methe, 34, were killed by a fall of material, preceded by seismic activity

The men worked for Taurus Drilling, and were not members of Mine Mill Local 598/Unifor, which represents about 150 production and maintenance workers at the mine. But Mine Mill has been involved in the company investigation into the men’s deaths.

First Nickel released a statement Tuesday saying it has been actively cooperating with the Ministry of Labour to determine a method to safely allow workers to re-enter the 65-2 level, an underfill heading, which has been closed since the tragedy.

“Although not ordered by the ministry, First Nickel suspended its underfill operations in all areas of the mine after the accident until satisfied that workers would not be put at risk,” First Nickel said in the statement.

After consulting with outside engineers, FNI developed a plan to resume work on the 65-2 level and in underfill headings, which ensures the safety of workers.

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$3-million Mineral Exploration Assistance Program (MEAP) will support 22 new projects – by John Barker (Thompson Citizen – July 18, 2014)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.  editor@thompsoncitizen.net

Manitoba Mineral Resources Minister Dave Chomiak said June 23 the Mineral Exploration Assistance Program (MEAP), which delivers financial assistance to companies carrying out mineral exploration in Manitoba, would invest $3 million in 2014-15 to support 22 new projects, doubling 2013-14 funding levels. MEAP provides assistance in the form of a partial refund of approved exploration expenditures.

“Doubling our investment will have a positive effect on mineral exploration and development in Manitoba,” said Chomiak. “We are attracting new companies exploring here for the first time, creating good jobs for Manitobans, especially in northern communities.”

The companies are exploring for a variety of commodities including a number of projects for gold, copper, zinc and nickel. There is also one project each for graphite and uranium. Base metals and gold represent 92 per cent of the proposed MEAP projects. Twelve of the projects (54.5 per cent) are exploring for gold; five projects (22.7 per cent) are looking for copper and zinc; and three projects (13.6 per cent) are exploring for nickel.

There are 22 companies involved in 23 projects – 22 of them which are new projects – and three of the companies have been attracted in part by MEAP’s financial assistance to explore in Manitoba for the first time, Chomiak said.

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Vale Canada – by John O’Hanlon (BE Mining – July 16, 2014)

http://www.bus-ex.com/mining

Nickel in demand

The Vale do Rio Doce in Brazil is doubtless an idyllic place beauty as its name, valley of the peaceful river, implies. However the now more prosaically named Vale is a global company with which readers of Business Excellence are very familiar, most recently in our coverage of Vale’s coal mining operations in Mozambique – and indeed, Wales.

However since its 2006 acquisition of Canadian nickel mining operator Inco Vale has been a major player in Canada, where it now has a dozen mines and operational sites. To give an idea of the scale of the Canadian operations, now a wholly owned subsidiary of the Brazilian major, its base metals headquarters in Toronto alone employs 850 people at three sites that administer Vale’s countrywide operations and house the company’s technology development department. Base metals in this context covers almost everything apart from gold, silver and platinum, and definitely includes nickel.

Also in Ontario, though about 400 kilometres to the north of Toronto, Sudbury has enough untapped nickel deposits to support mining for decades to come. In total, Vale has six mines, a mill, a smelter and a refinery in Sudbury, making this one of the largest integrated mining operations on the planet, employing approximately 4,000 people. Raw materials from Vale’s Sudbury operations are shipped to The Port Colborne nickel refinery, a vast 360-acre complex on the shore of Lake Erie in southern Ontario. The refinery dates back to the early days of Inco nearly 100 years ago and employs 170 people in processing nickel, electrocobalt and precious metals, exporting finished nickel products throughout the world.

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Too much time on your iPad? It can cause an allergic reaction – by Lindsey Tanner (Globe and Mail – July 16, 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.

CHICAGO — The Associated Press – Unexplained rash? Check your iPad. It turns out the popular tablet computer may contain nickel, one of the most common allergy-inducing metals.

Recent reports in medical journals detail nickel allergies from a variety of personal electronic devices, including laptops and cellphones. But it was an Apple iPad that caused an itchy body rash in an 11-year-old boy recently treated at a San Diego hospital, according to a report in Monday’s Pediatrics.

Nickel rashes aren’t life-threatening but they can be very uncomfortable, and they may require treatment with steroids and antibiotics if the skin eruptions become infected, said Dr. Sharon Jacob, a dermatologist at Rady Children’s Hospital, where the boy was treated. Jacob, who co-wrote the report, said the young patient had to miss school because of the rash.

The boy discussed in the Pediatrics report had a common skin condition that causes scaly patches, but he developed a different rash all over his body that didn’t respond to usual treatment. Skin testing showed he had a nickel allergy, and doctors traced it to an iPad his family had bought in 2010.

Doctors tested the device and detected a chemical found in nickel in the iPad’s outside coating.

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Nova asset ‘world class’, says Sirius as it publishes DFS – by Esmarie Swanepoel (MiningWeekly.com – July 14, 2014)

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

PERTH (miningweekly.com) – A definitive feasibility study (DFS) into nickel developer Sirius Resources’ Nova project, in Western Australia, has confirmed that the project’s low cash cost would allow it to fall in the lowest quartile of nickel producers globally.

Sirius reported on Monday that the Nova project was expected to generate net cash flow of A$2.74-billion from a nickel revenue of some A$4.53-billion, over the project’s ten-year mine life.

C1 cash operating costs after by-product credits were forecast to be A$1.66/lb nickel in concentrate, which was better than the 2013 scoping study estimates.

The DFS slightly increased the expected capital expenditure for the project to A$473-million, up from the A$471-million estimated in the scoping study, with the capital cost now including extra risk mitigating measures.

The DFS was based on a processing rate of 1.5-million tonnes a year, to deliver about 26 000 t/y of nickel, 11 500 t/y of copper and 850 t/y of cobalt over a ten-year mine life.

The study was based on a maiden probable ore reserve of 13.1-million tonnes, grading 2.1% nickel, 0.9% copper and 0.07% cobalt, for 273 000 t of nickel, 112 000 t of copper and 9 000 t of cobalt.

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BHP nickel sale hits hurdle – by Nick Evan (The West Australian – July 9, 2014)

https://au.news.yahoo.com/thewest/

A native title ruling could throw a shadow over BHP Billiton’s attempts to sell its Nickel West assets, after the Federal Court ruling last week paved the way for native title claims over BHP’s Kambalda nickel concentrator and Gold Fields’ St Ives mine.

In a decision released last week, the Federal Court ruled that the transfer of mining tenements from State Agreements between 2004 and 2007 should have triggered negotiations for a land use agreement with the Ngadju people, who claim native title over the region around Norseman and Kambalda.

The ruling covers more than 200 mining leases transferred from State agreements originally held by Western Mining Corporation.

They include leases over BHP’s Kambalda nickel concentrator and Gold Fields’ 400,000 ounce-a-year St Ives mine, the fourth largest gold producer in Australia last year.

Gold Fields said in January the action could force the closure of St Ives if the native title claimants sought an injunction to do so.

But the company softened its rhetoric this week, saying in a statement the decision “does not affect the grant of mining tenure to St Ives”. It added operations would continue as usual pending the outcome of the process.

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Australian nickel projects on sale – by Lawrence Williams (Mineweb.com – July 7, 2014)

http://www.mineweb.com/

Western Australian nickel assets owned by two of the world’s largest producers of the metal have been sold or are currently up for sale and attracting much interest.

LONDON (MINEWEB) – Australian nickel projects, presumably deemed non-core businesses, by mining majors BHP Billiton, and Norilsk Nickel are either reportedly up for sale, or sales have been agreed, which will see some of the country’s nickel production, or potential output move into the hands of new ownership. Australia was the world’s fourth largest nickel producer (after the Philippines, Indonesia and Russia) in 2012.

BHP Billiton, which had previously sold off its Ravensthorpe nickel mine and metallurgical plant to First Quantum back in December 2009 for $340 million – having cost over $2 billion to build – is now looking to sell the rest of its Western Australian nickel operations which come under its Nickel West banner, comprising the Mount Keith Nickel mine, Leinster Nickel mine, Kambalda Nickel concentrator, Kalgoorlie Nickel rmelter and Kwinana Nickel refinery.

There are reportedly six major potential suitors for the package, including Mick Davis’ X2 Resources. BHP inherited its nickel mining operations through the take-over of Western Mining in 2005.

Simultaneously, Norilsk Nickel the world’s largest nickel producer, has announced that through its Australian subsidiaries, MPI Nickel and Black Swan Nickel it has agreed to sell its Black Swan/Silver Swan assets, also located in Western Australia and currently under care and maintenance, to Poseidon Nickel. Norilsk had been reported as planning to sell all of its Australian assets back in May.

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Trafigura Among Six to Enter BHP Nickel Sale, Review Says – by Ben Sharples (Bloomberg News – July 06, 2014)

http://www.businessweek.com/

Trafigura Beheer BV and Sherritt International Corp. (S) are among six companies to enter the sale process for BHP Billiton Ltd.’s Australian nickel unit, according to a report from the Australian Financial Review.

Glencore Plc, X2 Resources, Jinchuan Group Co. and MMG Ltd., a unit of China Minmetals Corp., are also among bidders that have started due diligence on BHP’s Nickel West business, the newspaper reported today, without saying where it got the information. Emily Perry, a Melbourne-based spokeswoman for BHP, declined to comment in an e-mailed response.

BHP said in May it’s considering selling all or part of its Australian nickel unit as prices surge amid an Indonesian export ban on the steel hardening agent. The due diligence process may take months and BHP is keen to finalize a deal by the end of the year, the newspaper said. The business may be worth more than A$800 million ($749 million), according to the newspaper.

Michael Oke, a spokesman for London-based X2 Resources, Francis de Rosa, a Sydney-based spokesman for Glencore, and Kathleen Kawecki, a Melbourne-based spokeswoman for MMG, didn’t immediately respond to e-mails sent outside of normal business hours seeking comment on the sale process. Three calls to Gao Tianpeng, the general manager of Jinchuan’s asset operation department, went unanswered.

Amsterdam-based Trafigura and Toronto-based Sherritt didn’t immediately respond to e-mails seeking comment.

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Major Partner Won’t Expand Stake In Mine Near Ely – by CBC Minnesota (July 3, 2014)

 http://minnesota.cbslocal.com/

MINNEAPOLIS (AP) — A major partner gave up the right Thursday to take a bigger stake in the proposed Twin Metals copper-nickel mine near Ely in northeastern Minnesota, which has been a target of criticism from environmentalists who fear it will harm the nearby Boundary Waters Canoe Area Wilderness.

Chilean-based mining company Antofagasta PLC said it has terminated its option to buy another 25 percent of Twin Metals Minnesota LLC. The announcement said Toronto-based Duluth Metals Ltd. is now assuming control of the joint venture.

Duluth Metals owns 60 percent of Twin Metals Minnesota. Antofagasta, which could have upped its stake to 65 percent, said it’s now “evaluating its options” for what to do with its 40 percent interest in the joint venture and its 10 percent direct ownership stake in Duluth Metals.

“By doing this today Antofagasta has signaled they intend to walk away from the project,” said Aaron Klemz, spokesman for the Friends of the Boundary Waters Wilderness. An Antofagasta spokesman denied that.

“No they’re not walking away,” spokesman Robin Wrench said by phone. He said Antofagasta still likes the project for the long-term, it’s just not exercising its right to buy a larger stake. The move means Antofagasta is only responsible for 40 percent of the project’s future funding, not 65 percent, he said.

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“You can’t breathe in air with 7000 micrograms of sulfur dioxide.” [Norilsk Nickel – Kola Peninsula] – by Amelia Jaycen (Barents Observer – July 03, 2014)

http://barentsobserver.com/en

BarentsObserver.com is an open internet news service, which offers daily updated news from and about the Barents Region and the Arctic. The site is run by the Norwegian Barents Secretariat in Kirkenes, Norway.

Putin presses Norilsk Nickel to move to a functioning, upgraded plant, dismantle the obsolete polluter in Nikel.

Russia’s Ministry of Natural Resources and Ecology on Tuesday told representatives of “MMC” Norilsk Nickel of the planned decommissioning some of Nikel plant rundown facilities by 2016 and reorganization of metallurgical production at the Monchegorsk plant, which must be upgraded and modernized, the ministry said in a press release yesterday. Monchegorsk is owned by the same company and located some two-hour drive south of Murmansk on the Kola Peninsula.

The program involves modernization and renovation of all stages of processing and consolidation of smelting and refining capacity to a more modern venue including technological upgrading and expansion of refinery at Monchegorsk during 2016-2017. Capital investments in the program total more than 50 billion rubles, the release says.

The decision was made in the course of inter-ministerial consultations, and the updated reconfiguration of Monchegorsk is to be accompanied by a special Russian-Norwegian working group. The parties scheduled a technical workshop for September 2014 in Moscow to plan the next steps.

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Sudbury icon turning 50 – by John Lappa (Sudbury Star – June 27, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

One man’s vision and tenacity to create an iconic landmark was revealed at a book launch at Dynamic Earth in Sudbury on Thursday.

Ted Szilva and his son, Jim, launched their book, The Big Nickel: The Untold Story, at the same location where the Big Nickel was erected and eventually shown to the public 50 years ago on July 22, 1964.

Ted Szilva’s dream to create the Big Nickel attraction was opposed by a number of people and groups, including the old City of Sudbury. “It was a constant fight with the city at the time,” Szilva recalled. “The bureaucrats were against it 100%.”

Then Sudbury Mayor Joe Fabbro, The Sudbury Star and the television station “backed me, so I overcame those obstacles day by day.” Szilva said he overcame his detractors because of his spirituality.

“I consider myself a spiritual man and I prayed on every obstacle that came about. I prayed on it and everything worked out,” Szilva said. Szilva said he came up with the idea of the Big Nickel as part of a centennial project for the city. His idea was rejected, but he continued on his own.

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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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Former Xstrata head makes play for BHP Billiton’s nickel – by Rachelle Younglai (Globe and Mail – June 20, 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.

Mining magnate Mick Davis made an initial bid for BHP Billiton Ltd.’s nickel assets in Australia, but his offer was rejected as too low, a person familiar with the matter said.

X2 Resources, Mr. Davis’ privately held company, has been looking for assets to start building itself into a medium-sized miner, and has raised up to $3.75-billion for acquisitions. It is unknown whether Mr. Davis will increase his bid.

Before X2 , Mr. Davis ran Xstrata Plc, a global mining giant. Xstrata grew by buying out its rivals, including Canadian nickel producer Falconbridge, before it was taken over by Swiss-based Glencore in 2013.

X2 , whose team helped create Xstrata, is one of many private equity firms looking for acquisitions amid the downturn in the commodity industry.

Its strategy is to acquire unwanted assets from the senior miners, which have been re-evaluating their businesses and zeroing in on core operations in order to deal with lower metals prices.

According to analysts, BHP Billiton’s nickel assets, known as Nickel West, contributed just 2.7 per cent of the miner’s overall revenue.

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