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Norilsk Nickel Turns its Attention to the Environment and Tier 1 Assets – by Vladislav Vorotnikov (Engineering and Mining Journal – February 2014)

http://www.e-mj.com/

Something happened on the road to the Voronezh project; environmental activists backed by Putin convinced Russian nickel miners to clean up their act

MMC Norilsk Nickel, the largest mining company in Russia and one of the world’s largest nonferrous base-metal miners, faces very serious pressure from the community and Russian environmental protection organizations. They claim that the company’s activity harms the health of surrounding citizens and nature. These pressures combined with weaker prices for metals are raising future performance standards for the company.

In terms of total world production, Norilsk Nickel mines palladium (41%), nickel (17%), platinum (11%), cobalt (10%, concentrate) and copper (2%). Domestically, the company accounts for all of the platinum production, most of the nickel (96%), cobalt (95%) and a majority of the copper (55%). As an industrial leader, it plays a crucial role in the Russian economy, accounting for about 4.3% of all Russian exports, 1.9% of GDP, 2.8% of total industrial output and 27.9% of output of the non-ferrous metallurgy industry.

Recently Norilsk Nickel updated its development strategy, which, as confirmed by top management, dramatically changes its course for the coming years. The primary focus of development in accordance with the new plan will be on large assets, possibly including Voronezh, the last large non-developed nickel deposit in Europe.

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Update 1 – Vale back at work on Ontario nickel project – by Allison Martell and Euan Rocha (Reuters U.S. – February 3, 2014)

http://www.reuters.com/

(Reuters) – Vale SA’s Canadian unit has resumed work on its Copper Cliff Deep nickel project in the Sudbury basin and expects to complete a feasibility study by the end of the year, a company executive said on Monday.

The project is expected to cost somewhere in the range of a billion dollars to build and could be one of the unit’s lower-cost operations, said Kelly Strong, Vale’s vice president of Ontario and UK operations.

If it goes ahead, the revised project, now dubbed Copper Cliff Mine, would be another boost for the Sudbury basin in northern Ontario, where Vale recently opened Totten, its first new mine in more than 40 years. “It’s going to look a little bit different than the original project – it’s going to be three phases,” said Strong.

The project would merge and expand what are now two separate mines. Its earlier incarnation was put on hold in the wake of the 2008 financial crisis. In 2010, Vale Canada said it was re-evaluating the project, though work did not proceed.

The first of the three phases could start producing within the next two to three years, Strong told Reuters. A final go-ahead will depend on the project securing a green light from Vale’s board in Brazil.

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Vale Sees Nickel Over $20,000 a Ton on Indonesia Ban – by Liezel Hill (Bloomberg News – February 25, 2014)

http://www.bloomberg.com/

Nickel will climb significantly in 2015 and may advance to more than $20,000 a metric ton in the next few years because of Indonesia’s ban on ore exports, said Vale SA (VALE5), the world’s second-biggest producer.

The restrictions that Indonesia put in place last month probably won’t be eased, Peter Poppinga, executive director for base metals at the Rio de Janeiro-based company, said in a Feb. 21 interview. Big price movements are unlikely this year because of the high level of stockpiles in China, he said.

The largest nickel-ore producer banned the export of unprocessed ores in January as it tries to transform itself into a maker of higher-value products. Nickel, used to make stainless steel, climbed 3 percent this year, beating all other base metals in London as Barclays Plc forecast that the curb will help to shift the global market to a deficit from 2015. Vale last week opened its Totten nickel mine in Ontario after investing about C$760 million ($686 million) in the project.

“Next year I see the nickel price jumping quite significantly,” Poppinga said in the interview at the mine. “It is about Indonesia today, everybody knows that. The ore ban is in place and it’s holding, and I think the authorities in Indonesia are very reasonable and very serious about that.”

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Vale’s Totten Mine opens after three-year delay – by Jonathan Migneault (Sudbury Northern Life – Feb 21, 2014)

http://www.northernlife.ca/

It started as a hole in the ground, but after a $760-million investment, Vale’s Totten Mine had its official opening Friday.

Dignitaries from around the province, including Ontario Premier Kathleen Wynne, Sudbury Mayor Marianne Matichuk, and Michael Gravelle, the province’s minister of Northern Develoment and Mines, gathered around the ceremonial ribbon to welcome Vale’s sixth mine in the Sudbury region, and its first to open in nearly 40 years.

Subury MPP Rick Bartolucci, Ontario’s former minister of Northern Development and Mines, had was not present at the ceremony due to a prior commitment. “The 200 jobs that are being created as a result of the Totten Mine will support families and will fuel the economy of this region,” Wynne said at the grand opening.

The premier said the provincial government has an important role to play in developments like the Totten Mine by creating a regulatory environment that encourages businesses to invest and prosper.

The mine was supposed to open in 2011, but a number of factors, including the global economic crisis in 2008 and 2009, slowed Vale’s progress.

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Vale ‘Not in Hurry’ in Over Canada Glencore Negotiations – by Liezel Hill and Juan Pablo Spinetto (Bloomberg News – February 22, 2014)

http://www.bloomberg.com/

Vale SA (VALE5), the world’s second-biggest nickel producer, said it’s not in a rush to reach an agreement with Glencore Xstrata Plc to combine operations in Canada’s Sudbury basin.

“We are studying and we are talking but we are not in a hurry,” Peter Poppinga, Vale’s head for base metals, said yesterday in an interview.

Vale and Glencore, the world’s third-largest refined nickel producer, last year initiated talks on jointly operating mines, mills and smelters in the Sudbury area, about 400kilometers (250 miles) north of Toronto, Poppinga said in November. Vale Chief Executive Officer Murilo Ferreira told reporters on Dec. 18 his Rio de Janeiro-based company expected to make a decision on a possible combination in the first quarter.

Poppinga said yesterday he didn’t expect an agreement “early this year,” and declined to comment further on the talks. Glencore declined to comment on the state of talks with Vale in an e-mail statement.

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Accent: Sudbury’s [Vale] Totten a space-age mine – by Laura Stricker (Sudbury Star – February 22, 2014)

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

In major mining centres, the opening of a new mine is no small feat. Especially when that mine is a company’s first to open in the area in more than four decades – and took seven years to get production-ready.

On Friday, Vale’s Totten Mine, located in the mineral-rich Sudbury Basin, officially opened to great fanfare. The $760-million mine is the company’s sixth in the basin and its first to use the newest, state-of-the-art mining technology.

“It integrates many of the advances that have been developed since the last Vale mine was built 40 years ago. These technical advances will continue to position Sudbury hard rock miners as among the most productive and competitive in the world,” said mining analyst Stan Sudol. “It also ensures that the Totten Mine is at the lower end of the cost curve.

“This is very positive for the Sudbury Basin. Totten confirms that Sudbury is still the richest mining district in North America, bar none. Because so much high-tech innovation has been included in the development of Totten, it also indicates Sudbury’s becoming a global Silicon Valley of underground knowledge, expertise and research and education.”

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New Sudbury mine ‘very important’ to Vale – by Carol Mulligan (Sudbury Star – February 22, 2014)

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

Vale will continue to invest in Canada despite bad market conditions and low nickel prices because of the strength of its assets, and those assets aren’t just its ore bodies and its operations, said Peter Poppinga.

Vale officially opened its newest Sudbury operation Friday, the $760-million Totten Mine, a nickel and copper producer. Totten is state of the art, fully automated, has an outstanding safety record and excellent environmental standards.

“But Totten for us actually means much more,” said Poppinga, president and chief executive officer of Vale Canada, and executive director of Vale Base Metals and Information Technology for Vale SA.

“When I (say) asset I don’t mean only ore, I don’t only mean mines or surface facilities. I actually also mean the people, the workforce, the motivated workforce, and I also mean the stability of the business environment and the regulatory environment.

“This is very important for us,” Poppinga told more than 100 invited guests in the warm room of Worthington mine, 40 minutes west of Sudbury.

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NEWS RELEASE: Vale opens first new mine in Sudbury in over 40 years

(L to R) Cutting the ceremonial ribbon at the official opening ceremony of Totten Mine on February 21st, 2014 are: Conor Spollen, Vice-President, North Atlantic Projects, Vale; Rick Bertrand, President, United Steelworkers, Local 6500; Bob Booth, Totten Mine Manager, Vale; Hon. Marianne Matichuk, Mayor, City of Greater Sudbury; Kelly Strong, Vice-President, Ontario & UK Operations, Vale; Hon. Kathleen Wynne, Premier of the Province of Ontario, Hon. Michael Gravelle, Minister of Northern Development and Mines; Province of Ontario; Peter Poppinga, CEO of Vale Canada and Executive Director of Vale’s Global Base Metals; Chief Paul Eshkakogan; Rob Assabgui, General Manager, Mines & Mill, Vale.

http://www.vale.com/canada/EN/

Canada NewsWire – SUDBURY, ON, Feb. 21, 2014 /CNW/ – Vale celebrated the official opening of Totten Mine today in a ceremony with the Honourable Kathleen Wynne, Premier of Ontario, the Honourable Michael Gravelle, Minister of Northern Development & Mines, members of the Sagamok Anishnawbek First Nation and many other community leaders.

“Totten Mine is Vale’s first new mine in the Sudbury Basin in more than 40 years and represents a significant investment in the future of our operations in Ontario and across Canada,” said Peter Poppinga, President & Chief Executive Officer of Vale Canada and Vale’s Executive Director of Base Metals and Information Technology.

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Environment takes precedence at Sudbury Vale’s Totten mine – by Lindsay Kelly (Sudbury Mining Solutions Journal – November 25, 2013)

Sudbury Mining Solutions Journal  is a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the December, 2013 issue.

Water, emissions priorities for mine design

More stringent environmental oversight of new mine development means more work. But instead of a challenge, it’s actually made the pro­cess easier at Totten Mine because it allows Vale to meet industry expectations and be creative in its approach, said senior environmental specialist Allison Merla.

“There’s the opportunity here to do it right, right away,” said Merla, who acted as the environmental co-ordinator for the mine, ensuring Vale’s permits and requirements met current industry standards.

“If you’re looking at a legacy site that has always done something a certain way for years, and they’re working on some of the older permits or legislative requirements, it takes a while to instill that change. Here, we’ve built it right and we’re going to do it right.”

Every aspect of Totten was designed with the envi­ronment in mind, starting with its overall footprint. The headframe and main operations have been laid out on top of previous mine workings, while the Victoria Creek pumphouse, from which Vale gets its domestic water, has been retrofitted and upgraded to meet today’s standards.

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Sudbury Vale’s Totten mine boasts copper, nickel and PGMs – by Lindsay Kelly (Sudbury Mining Solutions Journal – November 25, 2013)

Sudbury Mining Solutions Journal  is a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the December, 2013 issue.

The mineralization at Vale’s Totten Mine is so rich, ribbons of copper, nickel and precious metal can be viewed at surface just by walking through the parking lot.

“It’s pretty interesting for anybody who likes geology,” said Lance Howland, Totten’s chief mine geologist. “They can go out for their lunch break to look at exactly what’s here, and that’s pretty much what you’d see underground.”

Totten Mine is situated along the Worthington Offset, one of the fractures resulting from the creation of the Sudbury Basin 1.8 billion years ago. Offset deposits like Worthington were formed when pressure caused by molten material cooling around the basin pushed its way into a fracture.

“(The molten material) carried with it the copper, nickel and precious metals, and formed multiple deposits along that string. One of them was Totten Mine,” Howland said. “It’s a pretty unique story and we’ve got some very interesting deposits that a lot of people around the world have come here to see given how unique it is.”

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Vale’s Team Totten rises to challenge – by Norm Tollinsky (Sudbury Mining Solutions Journal – November 25, 2013)

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This article is from the December, 2013 issue.

Ground conditions, water ingress and a 60-year-old timbered shaft among the challenges overcome

When Bob Booth and Gary Annett of the Totten project team hand over the reins to mine manager Dave Pisaric on December 31st, life won’t be near as exciting.

Few mine development projects go exactly as planned. Mother Nature can frustrate the intentions of the most experienced and skilled engineers and geoscientists, as happened at Totten when unfavourable ground conditions and water ingress began bogging things down.

The team stepped it up a notch, hunkered down…and saw it through. Vale decided against the engineering, procurement and construction management (EPCM) approach and kept the project management in house.

Annett, with the ominous title of Totten execution manager, was assigned to Totten in February 2008. A 15-year Vale and Inco mining engineer and alumnus of Laurentian University, Annett worked his way up through operations and spent eight years at the company’s Coleman Mine.

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Wallbridge tries to understand its ‘enigmatic’ minerals – by Jonathan Migneault (Northern Ontario Business – February 13, 2014)

Established in 1980, Northern Ontario Business  provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. 

Around two billion years ago an asteroid or comet approximately 10 to 15 kilometres in diameter collided with what is now the Sudbury basin.

When it entered Earth’s orbit it was travelling at a speed of around 36,000 kilometres per hour. The power of the impact when it hit the planet’s surface was “off the scale,” according to Gordon Osinski, an associate professor of planetary geology at the University of Western Ontario. “It’s an incredible amount of energy deposited almost instantaneously,” he said.

Geological changes can take millions of years, but that impact altered Sudbury’s landscape in a flash. The heat from the impact was so intense it created a pool of molten rock three kilometres thick. Geologists have estimated the crater it created – which is no longer visible today – was around 200 kilometres in diameter.

The Chicxulub crater, underneath Mexico’s Yucatan Peninsula, is around 180 km in diameter. The asteroid impact that created it 65 million years ago is largely credited for the mass extinction of the dinosaurs.

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Royal Nickel Corp: Indonesian Ore Export Ban Opens Door to the Next Generation of Nickel Mines (The Gold Report – February 11, 2014)

http://www.theaureport.com/

DISCLOSURE: Royal Nickel Corp. paid The Mining Report to conduct, produce and distribute the following interview. 

Nickel prices have been weak, but the recent Indonesian government announcement banning ore shipments outside the country may be the shock that reverses the trend. In this interview with The Mining Report, Mark Selby, senior vice president of business development for Royal Nickel Corp., walks through his analysis that indicates nickel price increases and inventory reductions are imminent, while demand continues to grow and over a quarter of global mine supply is shut in.

He considers nickel in 2014 one of the best commodity trades in a generation. To capitalize on this unique set of circumstances, Royal Nickel’s Dumont Nickel Project follows the path of other large-reserve, large-scale mines in the copper and gold sectors that have changed the mining industry and made early investors fortunes.

The Mining Report: The nickel industry has been through tectonic changes in the last 10 years, including large corporate takeovers and fundamental changes in supply available to the market. Can you summarize where the nickel industry has been and where it is going?

Mark Selby: Over the past five years, we’ve seen continued robust growth in nickel demand. Over that period, global nickel demand grew in the high single-digits, while Chinese nickel demand grew at double-digit rates.

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NEWS RELEASE: Royal Nickel Announces Management Changes

Tyler Mitchelson Resigns as CEO, Remains as a Director

TORONTO, Feb. 11, 2014 /CNW/ – Royal Nickel Corporation (“RNC”) (TSX: RNX) today announced Tyler Mitchelson, President & CEO of RNC, has decided to leave RNC in order to take a position with Anglo American Corporation. Mr. Mitchelson will remain as a Director of RNC.

“We thank Tyler for the four years he has led RNC and the significant work he has done to advance the Dumont Nickel Project. We wish him well in his new position,” said Scott Hand, Executive Chairman of RNC.

Effective today, Mark Selby, SVP Business Development at RNC since 2010, has been appointed Interim CEO. Mr. Selby possesses more than 20 years’ experience in finance and corporate development at resource companies, including Inco Limited and Quadra Mining. Mr. Selby will be able to call on Executive Chairman, Scott Hand as well as Directors Peter Goudie and Peter Jones. Mr. Hand is the former Chairman & CEO of Inco which was a major participant in the nickel industry before it was acquired by Vale in 2007. Mr. Jones was President & COO of Inco and Mr. Goudie was Executive Vice-President for Sales and Marketing for Inco with extensive experience in Asia. Mr. Hand, Mr. Goudie and Mr. Jones have been Directors of RNC since 2008.

“The Dumont Nickel Project is a world-class project that will be needed to meet the growing global demand for nickel,” said Mr. Hand.

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Antam and Vale Receive Green Light on Processed Mineral Exports – by Rangga Prakoso (Jakarta Globe – January 27, 2014)

http://www.thejakartaglobe.com/

Antam and Vale Indonesia — two of the biggest nickel producers in the country — have secured a recommendation letter to export their processed mineral products, almost two weeks after the government enforced a ban on ore shipments.

“Vale and Antam don’t have any problems. The others simply have not submitted their respective proposals to the government, which is why I am calling on other miners to do so,” said Susilo Siswoutomo, vice minister at the Energy and Mineral Resources Ministry, on Friday.

Susilo said the government has given Antam approval to export around 17,000 metric tons of ferronickel annually, while Vale is allowed 75,000 tons of nickel matte per year. He did not say whether Antam will be allowed to export its nickel ore.

The vice minister also confirmed the government’s intention to set a “maximum production limit” for minerals to ensure that newly-built smelters in Indonesia can be fed with adequate resources.

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