Nickel – Page 111 – Republic of Mining

Glencore, Vale should join forces, analyst says (CBC News Sudbury – August 9, 2013)

August 12, 2013

http://www.cbc.ca/sudbury/

For an indepth radio report, click here: http://www.cbc.ca/video/news/audioplayer.html?clipid=2400108515

Merging the two mining giants will help reduce redundancies, particulary in Sudbury operations

In a search for cost cutting measures, one mining analyst says a merger between Vale and Glencore should be an option that’s considered. Brazilian mining company Vale released its second quarter results Thursday, which showed an 84 per cent drop in profits.

Base metal prices are also down across the board. Terence Ortslan, managing director with TSO and Associates, an independent mining, metals and fertilizer research firm, said combining operations could help reduce redundancies.

“I think the question is, is it going to be out of necessity, or is it going to be creative in doing things? I think the assets have to be put in a pool to see who can do better and how it’s going to be streamlined in terms of a critical path.”

Glencore recently took over Xstrata — a firm that took over Sudbury’s Falconbridge Ltd. in 2006. Sudbury residents have, for decades, heard and talked about mergers between Falconbridge and Inco Ltd., the company now known as Vale.

Vale mulls hedge tactic – by Reuters and Star Staff (Sudbury Star – August 9, 2013)

August 9, 2013

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

As they continue to work on making their nickel operations more efficient, Vale officials say they may adopt hedge-accounting rules to smooth out the impact of currency fluctuations like those that slammed the company’s second-quarter earnings. Chief Executive Murilo Ferreira made the comments Thursday as the company discussed its second quarter results with analysts and reporters.

Under hedge accounting, companies set aside some dollar-denominated export proceeds to compensate for the impact of exchange-rate moves on the local-currency value of debt, spreading currency gains and losses over several years. The practice is allowed under the International Financial Reporting Standards of the IFRS Foundation, the accounting rule-book used by Vale.

As Brazil’s real currency has weakened, companies have seen the local currency value of dollar debts soar and the cost of servicing the debt rise. Staterun oil company Petroleo Brasileiro SA, Brazil’s largest company by revenue, last month said it had begun to use hedge accounting in May.

“We had a strong financial performance in a challenging environment,” Ferreira said in a conference call with analysts and journalists. “The financial impact of forex does not reflect our true operations.”

Vale aims to stay competitive despite loss in profits (CBC News Sudbury – August 8, 2013)

August 9, 2013

http://www.cbc.ca/sudbury/

Totten Mine in Sudbury still on track to open and create 200 jobs

For a detailed interview with Vale spokesperson Angie Robson, click here: http://www.cbc.ca/video/news/audioplayer.html?clipid=2400029133

Mining giant Vale is reporting its worst profit decline in a decade. In its second quarter report, the company said its profit was $2.78 billion less than in the same quarter last year — and that foreign currency fluctuations are to blame.

In Sudbury, Vale spokesperson Angie Robson said local operations need to continue to focus on reducing costs while minimizing the impact on staff. She noted the company is working to continue being competitive.

“One of the things that we have happening, as an example, is we’re opening Totten Mine by the end of the year,” Robson said. “It’s our first new mine in Sudbury for more than 40 years … we have to continue to look to the future and look for new sources of ore so that we continue to create jobs and so forth.”

She noted the new mine will create about 200 jobs.

UPDATE 2-Vale profit dives on FX charge; cost-cutting continues – by Jeb Blount (Reuters U.S. – August 7, 2013)

August 8, 2013

http://www.reuters.com/

RIO DE JANEIRO, Aug 7 (Reuters) – Brazilian miner Vale SA said on Wednesday its second-quarter profit plunged after the company recorded a surprise $2.78 billion in foreign exchange losses on currency derivatives and debt, one of its worst bottom-line results in a decade.

In the three months ending June 30, net income fell 84 percent to $424 million, compared with a profit of $2.6 billion in the year-ago quarter, Vale said in a statement. The result was below market expectations. The average estimate of 18 analysts surveyed by Reuters was for profit to fall 7.63 percent to $2.46 billion.

Vale said the losses resulted from extraordinary, one-time, non-cash, financial charges that do not reflect its improved operational results. The Rio de Janeiro-based company is the world’s largest iron ore producer, No. 2 nickel miner, and a major producer of copper and fertilizers.

While a stronger dollar led to financial losses and lower profit, it also helped Chief Executive Murilo Ferreira to cut $736 million from the cost of salaries, research, equipment, construction and other goods and services.

Mining a challenging career for Vale manager – Women in Mining: Samantha Espley – by Lindsay Kelly (Northern Ontario Business – August 2013)

August 6, 2013

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.

At her first summer mining job, while an engineering student at the University of Toronto, Samantha Espley was one of four women—of 10 students—hired on at Falconbridge’s Keno Gold Mine in Val d’Or, Que. It wasn’t until later that it dawned on her how unique it was to work with that many other women.

“I didn’t really think much of it at the time until after I realized how few women there really were to choose from,” said Sudbury-based Espley, who was the only woman in her engineering class. “So it was quite a neat experience.”

After graduating, Stan Bharti, who would later bestow Laurentian University’s engineering school with a $10-million endowment, interviewed Espley for her position at Falconbridge, where she remained for a few years before hiring on at Inco (now Vale). Since then, she’s worked in research, been a general foreman underground, acted as superintendent of business systems, and served as manager of nickel services for mining operations. She’s currently the general manager for mines and technical services.

Nickel producers fend off output cuts as losses mount – by Melanie Burton and James Regan (Reuters U.S. – August 2, 2013)

August 2, 2013

http://www.reuters.com/

SINGAPORE/SYDNEY Aug 2 (Reuters) – Nickel miners are clinging to plans to maintain production, despite a growing supply glut and prices around four-year lows, raising the risk of more writedowns and losses being unveiled in the current financial reporting season.

France’s Eramet this week reported a first-half operating loss and warned the second half would be worse due to weak nickel prices, while other top producers such as Vale SA , Glencore Xstrata and BHP Billiton report in the next few weeks.

Between a quarter to a half of the nickel sector could be running at a loss, according to industry estimates, hit by weak demand from China, the world’s top producer and consumer of stainless steel. Nickel is a key component of stainless steel.

Nonetheless, few miners have yet made deep cuts in output and the trend is set to put more pressure on depressed prices.

“It’s a staring contest, no one wants to be the first to take the pain,” said Robin Bhar, an analyst at Societe Generale in London.

Three month nickel on the London Metal Exchange hit $13,205 a tonne on July 9, the lowest since May 2009 and down from nearly $19,000 in February. Nickel is the worst performer on the exchange so far this year, down nearly 20 percent.

Tanzania: Kabanga Nickel Project – Light At the End of Long Tunnel – by Meddy Mulisa (All Africa.com – August 2, 2013)

August 2, 2013

http://allafrica.com/

Bukoba — THE much-awaited Kabanga Nickel Project will soon start its operations, bringing fresh hopes to many in terms of labour and employment, according to President Jakaya Kikwete during his recent tour of Kagera Region.

Kabanga Nickel is an active mine exploration project 130 kms south west of Lake Victoria in Ngara District, Kagera Region. The project is a joint venture between Barrick Gold and Xstrata Nickel.

The Minister for Energy and Minerals, Prof Sospeter Muhongo said the government would buy shares which would later be sold to wananchi. He also appealed to Tanzanians to grab the opportunity for their wellbeing. He said a total of 80 megawatts would be produced at Rusumo Falls to generate power at Kabanga Nickel.

“This is a joint project between three countries -Tanzania, Burundi and Rwanda with each country taking 27 megawatts. Kabanga’s 58 million tonne nickel resource is regarded as one of the best undeveloped greenfield nickel sulphide deposits in the world. Since 2005, there has been continued progress made in the development of the Kabanga Nickel Project with a significant investment to date of over US$205 million in drilling and evaluation studies.

Norilsk sees Indonesia ore ban supporting nickel price – by Fergus Jensen (Reuters U.S. – August 1, 2013)

August 2, 2013

http://www.reuters.com/

JAKARTA – Aug 1 (Reuters) – Nickel prices could recover next year, when Indonesia brings in a planned ban on unprocessed ore exports, said executives from Russia’s Norilsk Nickel, the world’s largest producer of the metal.

Indonesia is the world’s top exporter of nickel laterite ore, which is mostly shipped to China to be used as a cheap substitute for nickel in stainless steel.

A strictly enforced ban on exports of ore would support demand for refined nickel, said Pavel Fedorov, deputy chief executive of Norilsk Nickel, who met government and industry officials in Jakarta to assess how the policy would be implemented.

“We received high-level assurances that there is a game plan in place that would ensure restriction on export of ore would be in place by January and would be subject to very strict rules and regulations,” added Fedorov, who did not name the Indonesian officials he met.

Uncertainty over the policy was hindering investment and disrupting the nickel market, much of which believed the 2014 ban would be delayed “or somehow fudged”, he added.

NEWS RELEASE: KGHM International Enters Into Agreement With Vale, Becoming Sole Operator of the Victoria Project

August 2, 2013

2013-08-02

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 2, 2013) –KGHM International Ltd., formerly Quadra FNX Mining Ltd. (the “Company” or “KGHM International”), is pleased to announce that an agreement between KGHM International and Vale Canada Limited, a wholly-owned subsidiary of Vale S.A. (“Vale”), the global mining company, has been reached regarding the development of the Victoria project as well as the ore off-take to Vale’s processing facilities in Sudbury, Canada.

The Victoria project, located in Sudbury, Ontario, Canada, is a great discovery and world-class project in the Sudbury Basin. The deposit containing ore rich in copper, nickel and precious metals will be extracted as an underground mine.

Under the new arrangement with Vale, KGHM International will build and operate Victoria as the sole owner of the project and Vale will receive a royalty and off-take on all future production from the project.

KGHM International and Vale also re-negotiated the off-take arrangement for all of KGHM International’s production from its mines in the Sudbury Basin in Ontario, Canada. Vale will purchase polymetallic ore from KGHM International and process it at Vale’s Clarabelle mill in Sudbury. The contract is valid for the full life of all KGHM International’s Sudbury mines, including future production from Victoria.

Long view: Lundin Mining plans to be around for a while – by John Pepin (Marquette Mining Journal – July 31, 2013)

August 1, 2013

http://www.miningjournal.net/

HUMBOLDT – Lundin Mining Corp. President and CEO Paul Conibear said the company is looking to be a long-term success and pledged that high standards will be maintained for the Eagle Mine.

“Eagle Mine being successful – not just in the construction ahead of schedule or under budget – but to be able to look back in five, seven, eight, 10, 15 years and know this is an outstanding mine and being recognized in the international community that this is an outstanding mine and still being very welcomed by the community, those are our goals, factors for success,” Conibear said.

Conibear made the comments recently to a crowd of about 200 employees, government and business officials and residents who have supported the Eagle Mine. Those listeners were guests invited to a ceremony at the Humboldt Mill commemorating the transfer of the Eagle Mine project to Lundin.

In June, Lundin purchased the Eagle project from Rio Tinto for $325 million and the Toronto-based company will spend another $400 million through 2014 to get the mine and its Humboldt Mill into production by late 2014, earlier if possible. Full production is targeted for mid-2015 and is expected to last until 2022. Additional minerals to be extracted from the mine will include gold, cobalt, platinum and palladium by-products.

Twin Metals Minnesota: Building the state’s Mining Future – by Bob McFarin (Mesabi Daily News – July 31, 2013)

July 31, 2013

http://www.virginiamn.com/

Bob McFarin is vice president of public and government affairs of Twin Metals Minnesota.

Just over 150 years ago, people came to northern Minnesota in search of gold. Instead, they found a more enduring, but no less valuable resource — iron ore. The rest, of course, is history — Minnesota history shaped by generations of entrepreneurial, daring and hard-working “Iron Rangers.”

Good paying jobs, the ability to raise a family, vibrant communities, quality education and stewardship of the wilderness and environment — these are the past and present values and aspirations that define more than a century of mining throughout Minnesota’s Iron Range.

Twin Metals Minnesota (TMM) is excited to be joining Minnesota’s proud mining heritage. Working in partnership with local communities and state and federal regulators, TMM is pursuing the development and operation of an underground mining project that will be one of the world’s largest sources of copper, nickel, platinum, palladium and gold.

These critical metals are necessary components of myriad products, from simple to complex, that support a modern quality of life —

Rio Tinto-Lundin mark Eagle Mine purchase – by John Pepin (The Mining Journal – July 26, 2013)

July 29, 2013

http://www.miningjournal.net/

Ceremony at Humboldt Mill finalizes transfer

HUMBOLDT – With the sounds of heavy construction equipment rumbling and beeping in the background, about 200 invited guests attended a ceremony in Humboldt Township Thursday commemorating Rio Tinto’s “handing over” the Eagle Mine and Humboldt Mill to new Toronto-based owner Lundin Mining Corp.

The ceremony was held under a tent at the mill, in a parking lot outside the local administrative offices for the Eagle Mine project. The crowd included employees and local officials and residents who have supported the Eagle Mine project.

Past Eagle Mine President Adam Burley – who is leaving Marquette County for a new Rio Tinto post in Salt Lake City – presented Lundin officials with a piece of polished ore from the mine, symbolizing the ownership transfer.

“The main message I want to get across is one of thanks and appreciation for the (Eagle) team support and the community support over these years and I also want to get across a message of pride,” Burley said. “Rio Tinto is proud of what we’ve achieved at Eagle. We do think we’ve raised the benchmark on industry standards and urge the community to share in that pride because they are the ones that have shaped the direction to a very large extent.”

Vale sweetens pot in push to finish Long Harbour (CBC News Newfoundland – July 24, 2013)

July 26, 2013

http://www.cbc.ca/nl/

Vale is putting on a big push to finish the nickel processing facility in Long Harbour, pledging more cash to workers if they meet revised targets. The company says the project is 90 per cent completed, but finishing the job has been a challenge.

The processing facility is behind schedule. It was supposed to be commissioned by the end of June. The new target is Oct. 31.

Vale spokesman Bob Carter says the project has been plagued by shortages of skilled workers and absenteeism. “Resources that were here, and scheduled to be here, are now moving on to other projects,” Carter said.

Vale may hire foreign workers to solve Long Harbour crunch (CBC News Newfoundland – July 23, 2013)

July 26, 2013

http://www.cbc.ca/nl/

Mining giant Vale admits it may have to look outside the country to hire specialized workers to finish its massive nickel processing facility in Newfoundland’s Placentia Bay.

However, Vale says it wants to explore other options first to find such skilled workers as welders and pipefitters for its site at Long Harbour, where the company ultimately intends to process nickel mined at Voisey’s Bay in northern Labrador.

To accomplish that, the company is moving skilled workers from its port site to its main construction site, which the company calls the upper tier. “Because we are short some of those resources, we thought it was best to redirect those resources to the upper tier,” Bob Carter, Vale’s director of corporate affairs, told CBC News.

Vale may hire foreign workers to solve Long Harbour crunch (CBC News Newfoundland – July 23, 2013)

July 23, 2013

http://www.cbc.ca/nl/

Mining giant Vale admits it may have to look outside the country to hire specialized workers to finish its massive nickel processing facility in Newfoundland’s Placentia Bay.

On Friday, layoff notices were handed out to more than 250 workers with skills that are currently not needed at the main site. Vale, which now plans to finish the port site later, admits it is concerned that it will not be able to find all the workers it needs within Canada.

The company is applying to the federal government for permission to bring in foreign workers.