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[New Caledonia] Koniambo nickel commissioning support – control infrastructure – by International Mining (December 27, 2012)

http://www.im-mining.com/

Xstrata Nickel’s Koniambo project in New Caledonia is commissioning as it prepares for first ore by the end of 2012. The project design relies heavily on the use of Profibus DP, a digital communications bus, to link field instrumentation and electrical motor controls to the ABB Distributed Control System that is used for control and monitoring of the facilities. Ian Pearce, Chief Executive of Xstrata Nickel, said in November: “We are very excited about the progress being made at Koniambo, including the successful delivery of Line 1.

It is a testament to our dedicated project and operation teams at Koniambo Nickel that we can now focus on moving to first production. “With the completion of Line 1, the majority of our construction resources will now be devoted to the second production line, which is forecast to be complete in the second quarter of 2013. Koniambo Nickel will ramp up to a steady state annual production run rate of 60,000 t of nickel in ferronickel within two years, by the end of 2014.

“Koniambo Nickel’s mine is already operating with the geological integrity of our resource forecasts intact. The ore-preparation plant and overland conveyer are in operation and the team is working to ensure we have 30,000 t of on-spec ore ready for the metallurgical plant by the end of the year.”

Gary O’Connell, Project Technical Director, along with Thierry Bonnet de Larbogne, KNS Process Control Manager, requested XPS Process Control group to assist in troubleshooting of the Profibus installations when problems were experienced during pre-operations testing. The Process Control group has two certified Profibus professionals (Alan Hyde & Phil Nelson) within the group.

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Vale’s massive $4.2 bn write-down on Onca Puma and Norsk Hydro stake – by Dorothy Kosich (Mineweb.com – December 21, 2012)

ttp://www.mineweb.com/

After selling a majority stake of its bauxite and aluminum assets to Norsk Hydro 22 months ago, Vale is now taking a $4.2 billion write-down on its Hydro shares and its Onca Puma ferronickel ops.

RENO (MINEWEB) – Vale has decided to take a US$4.2 billion write-down on its Onça Puma ferronickel operation, along with the company’s aluminum assets, increasing its fourth-quarter write-downs to US$4.65 billion.

Issues with Onça Puma’s two smelters halted operations since June 2012. After analysis, Vale decided to rebuild one of the furnaces at an estimated cost of US$188 million in 2013 with start-up planned for the fourth quarter of 2013.

“Given this event and in the face of the current market environment for ferronickel, the valuation of Onça Puma determined the need to recognize an impairment charge before tax of $2.848 billion,” the company said Thursday in a news release. “The book value of Onça Puma was US$3.778 billion as of September 30, 2012.”

Meanwhile, Vale observed, “The downward volatility of aluminum prices and the macroeconomic uncertainties about the European economy have contributed to reduce the market value of our 22% stake in Norsk Hydro ASA, a Norwegian aluminum producer, to a level below the book value of our investment.”

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Potanin comes out as CEO in Norilsk Nickel boardroom war deal – by Polina Devitt (Mineweb.com – December 17, 2012)

http://www.mineweb.com/

As the Norilsk Nickel boardroom war comes to a Kremlin/Abramovich–enforced understanding, long-time co-owner, Vladimir Potanin has emerged as the incoming CEO.

MOSCOW (REUTERS) – Norilsk Nickel named longtime co-owner Vladimir Potanin as its chief executive on Monday under a deal to end a boardroom war at the world’s top nickel and palladium producer.

Kremlin-backed oligarch Roman Abramovich will take control of a 20 percent voting stake to act as a buffer between Potanin and rival Oleg Deripaska, who owns a share in Norilsk through UC RUSAL, the world’s largest aluminium producer.

Speaking after his unanimous election by the Norilsk board, Potanin said he planned to stay in the job for between 18 months and two years. The peace deal will last for 10 years, with the core shareholders agreeing to keep their stakes for five.

Abramovich, the billionaire owner of Chelsea soccer club, could also act as a conduit for the Kremlin at the cash-rich company that mines the vast mineral deposits of Russia’s far north.

Having brought an end to the four-year feud between Potanin and Deripaska, he could potentially end up sidelining them as President Vladimir Putin seeks to restore order at the $30 billion miner that was privatised in the mid-1990s.

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Oligarchs, not investors, to get Abramovich Norilsk windfall – by Polina Devitt (Reuters U.K. – December 11, 2012)

http://uk.reuters.com/

MOSCOW – (Reuters) – Roman Abramovich, the Kremlin’s enforcer on a peace deal at Norilsk Nickel, will pay cash straight to the Arctic giant’s two main oligarch owners for a stake in the company, depriving other investors of the windfall from an end a billionaires’ feud.

Norilsk Nickel, which mines the vast mineral deposits of Russia’s far north, was one of the biggest prizes handed to insiders in the post-Soviet carve-up of Russian industry that created a clique of politically powerful tycoons.

For years the world’s largest nickel and palladium producer has suffered from a feud between its two main owners, billionaires Vladimir Potanin and Oleg Deripaska.

Fellow billionaire Abramovich, owner of London’s Chelsea football club, settled the row last week by sweeping in to buy a stake under a deal that appeared to have the blessing of President Vladimir Putin.

A revision, announced on Tuesday by Norilsk and Deripaska’s Hong Kong-listed aluminum producer RUSAL (0486.HK), would see Abramovich buy a slightly smaller stake, but pay for it directly to the two billionaires’ firms, rather than Norilsk.

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Will the real Norilsk owner please stand up? – by Andy Home (Reuters U.S. – December 7, 2012)

http://www.reuters.com/

Dec 7 (Reuters) – The Economist Intelligence Unit (EIU) has just issued a report on doing business in Russia.

“Nothing ventured, nothing gained: Changing international perceptions of Russian business” is based on a survey of 195 senior executives from outside Russia, with particular focus on those who have been or are considering joint venturing with Russian corporates.

“Non-Russian executives have decidedly mixed views of their Russian partners,” the report notes, explaining: “Access to energy and financial resources, and technical know-how, are the big pluses (…) poor language skills, inefficient management and corporate governance are the big minuses.”

Third on the EIU’s recommended list of nine ways for Russian companies to break free of outsiders’ “stereotypes” is to “avoid ‘insider’ practices and back-room deals”. Oh, and one other thing. The study was commissioned by Russian aluminium giant UC RUSAL and is available for download from the company’s website (www.rusal.com).

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Outgoing Norilsk Nickel CEO to get $100m severance deal – by Reuters (Mineweb.com – December 14, 2012)

http://www.mineweb.com/

Sources close to the company say Vladimir Strzhalkovsky will receive a one-off payment of $50 million and two further payments of $25 million each after six months and one year.

MOSCOW (REUTERS) – The departing chief executive of Norilsk Nickel, the Russian mining giant undergoing an ownership shakeup, will receive a $100 million severance deal, two sources close to the company’s shareholders said on Friday.

Vladimir Strzhalkovsky is leaving the world’s largest miner of nickel and palladium to make way for shareholder Vladimir Potanin, who this week struck a deal through which Chelsea soccer club owner Roman Abramovich will become a shareholder.

The sources confirmed a report in the Vedomosti daily that said Strzhalkovsky – who as CEO launched a series of share buybacks and sided with Potanin in a bitter shareholder dispute – would receive a one-off payment of $50 million from Norilsk.

He will receive two further payments of $25 million each after six months and one year.

In this week’s revised deal, Abramovich will buy a stake of 5.86 percent in Norilsk from Potanin and RUSAL, the aluminium company in which Oleg Deripaska is the main shareholder, for $1.5 billion.

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When the big just keeps getting bigger – Duluth releases new metals resource – by Lawrence Williams (Mineweb.com -December 7, 2012)

http://www.mineweb.com/

A significant increase in the enormous Twin Metals polymetallic resource in Minnesota, and identified higher grade zones, means the project economics just look like getting better and better

LONDON (MINEWEB) – With the release of an updated NI 43-101 compliant resource, Duluth Metals is just confirming the massive scale, and strategic mineral content, of the ground which falls under its Twin Metals jv with Antofagasta on the Duluth Metals complex in eastern Minnesota.

What is perhaps most impressive with regard to the future potential of the resource is that it only relates to around 11% of the ground controlled by the jv.

And from Duluth’s own viewpoint it is a resource which does not form part of its additional wholly-controlled ground holdings in the area where it has just started an exploration drilling programme, with four drill rigs turning.

But, coming back to the Twin Metals jv resource, the latest Indicated resource figures come out as containing an enormously impressive 13.7 billion lbs of copper, 4.4 billion lbs of nickel, and 21.2 million ounces of palladium+platinum+gold (TPM).

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Three oligarchs better than two? Abramovich gets stake Norilsk Nickel – by Lawrence Williams (Mineweb.com – December 5, 2012)

 http://www.mineweb.com/

In an attempt to mediate between the warring Russian oligarchs who have the major stakes in Norilsk Nickel, the Kremlin has apparently enforced a deal giving a third tycoon, Roman Abramovich an effective mediating stake.

LONDON (MINEWEB) – As watchers of the world’s largest nickel and palladium miner will know Russian headquartered Norilsk Nickel has been beset by boardroom strife between the two Russian mining oligarchs who each own around 25% of the company – Vladimir Potanin and Oleg Deripaska. Deripaska’s United Company Rusal bought into Norilsk back in 2008 and he and Potanin have been at loggerheads virtually ever since over a number of issues.

Now a third oligarch, Roman Abramovich – perhaps as well known for his control of the UK’s Chelsea football club – is to acquire a 7.3% stake in Norilsk through his holding company, Millhouse, plus a disproportionate board presence – three of the 13 directors – through an escrow deal whereby all three of the major holders put similar 7.3% stakes into an escrow account which Millhouse will control. This will give Abramovich an effective controlling decision-making stake which, it is hoped will act as a mediation between the other two warring oligarchs and bring stability to the major miner

The deal appears to be politically inspired with the Kremlin losing patience on the inter-oligarch rivalries which have beset what is one of Russia’s largest companies and a significant contributor to the economy both in terms of tax take and of raw materials production – Norilsk also being one of the world’s top 10 copper miners.

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UPDATE 5-Vale to scale back investment as global economy bites – by Jeb Blount (Reuters U.S. – December 3, 2012)

http://www.reuters.com/

RIO DE JANEIRO, Dec 3, 2012 (Reuters) – Brazil’s Vale SA , the world’s second-largest mining company, cut estimated 2013 capital spending by 24 percent after a global slowdown and a drop in iron ore prices led the company to rethink expansion.

The retrenchment comes after sluggish growth in the United States, China and Europe diminished demand for metals and weighed on the price of iron ore, Vale’s main product.

Iron ore , a key ingredient in steel, fell to a three-year low in September, and is currently hovering around $115 a tonne. Vale forecasts a $110-$140 a tonne range in the coming year.

Vale will invest $16.3 billion in 2013, down from the $21.4 billion budgeted this year for new projects, research and development and to maintain existing mines and plants, according to a regulatory filing on Monday.

“The outlook for slower expansion of global demand for minerals and metals in the medium term requires rigid discipline in the allocation of capital and greater focus in maximizing efficiency and reducing costs,” the company said in the statement.

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Nickel’s bounce to be hit by heavy 2013 surplus – by Eric Onstad (Reuters U.S. – November 30, 2012)

http://www.reuters.com/

LONDON, Nov 30 (Reuters) – Nickel prices may see a short-term lift over the next several months due to a seasonal rise in demand for stainless steel, but next year’s outlook is burdened by another market surplus.

Nickel, a component in stainless steel, has already seen benchmark prices on the London Metal Exchange shake off a weak performance this year, running ahead of other metals in recent weeks.

This may persist into early next year, but prices will soon be overwhelmed by output from major new mines gearing up and a surge in Chinese pig iron output fuelled by cheap Asian ore.

“There could be a little bit of seasonal pick up, but I struggle to see how nickel prices can improve significantly next year,” said Nic Brown, head of commodities research at Natixis in London.

“You are going to get substantial amounts of cheap nickel ore coming from both Indonesia and the Philippines, as things currently stand, on top of the additional supply from some of these big nickel projects around the world.”

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Canadian Royalties aims to start shipments from Nunavik Nickel in 2013 – by Jane George (Nunatsiaq News – November 28, 2012)

http://www.nunatsiaqonline.ca/

More than 650 people already working on site

A Chinese-owned mine in Nunavik will soon see huge ice-class vessels sailing through Hudson Strait to bring nickel, copper, platinum and palladium to European markets.

After sinking $735 million into infrastructure, Jien Canada Mining Ltd., the owner of Nunavik’s second soon-to-be operating mine, plans to ramp up production in early 2013 and hire more Nunavik workers.

The mine company, which expects to reach full production by 2014, will produce nickel, copper, palladium and platinum for at least 13 years. Located 20 miles from Xstrata Nickel’s Raglan nickel mine, the Nunavik Nickel mine sits in “one of the most inhospitable places in the world,” said its president, John Caldbick in a recent interview.

But the cold, rocky plateau is rich in minerals, and early in 2013 the mine will start processing ore. More than 650 people are now on site, living in its 428-person main camp and other temporary camps. Some workers are excavating ore from the Expo open pit mine, while others complete essential parts of the mine’s infrastructure.

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Nickel Glut Recedes as Biggest Metals Loser Rallies: Commodities – by By Agnieszka Troszkiewicz (Bloomberg.com – November 26, 2012)

http://www.bloomberg.com/

Nickel, this year’s worst-performing metal, is rallying as analysts from Standard Bank Plc to BNP Paribas SA forecast a smaller-than-expected supply glut in 2013.

Standard Bank reduced its estimate for the surplus by 17 percent on Oct. 15, citing project delays, and BNP Paribas said Nov. 12 it now expects output to match demand, after cutting its projection three times since April. Credit Suisse Group AG and Citigroup Inc. also lowered forecasts in the past two months. Nickel will average $19,000 a metric ton in the second quarter, 15 percent more than now, the median of 11 analyst estimates compiled by Bloomberg shows.

Futures fell 68 percent since reaching a record $51,800 in 2007 as higher prices spurred companies from Anglo American Plc to Vale SA to invest in new mines or expand existing ones. The surplus started in 2011 as slower growth weakened demand for stainless steel, which accounts for 65 percent of nickel consumption, and new supply emerged. Analysts are now paring supply forecasts as projects fall behind schedule. Prices rallied 4.4 percent in the past month.

“The market balance is tighter than people had initially thought,” said Leon Westgate, an analyst at Standard Bank in London. “There are a number of operations and significant amount of capacity that may run into various issues. In terms of that producer wall of nickel, it may not be quite as large or impregnable as it looks on paper.”

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Boom bust cycle normal in mining industry [Jason Turnbull interviews mining analyst Stan Sudol] – CBC Radio Sudbury (November 1, 2012)

http://www.cbc.ca/pointsnorth/ Slumping nickel prices and a bit of slowdown on base metal prices have caused speculation that Vale is not interested in maintaining full operations in Sudbury. Points North’s Jason Turnbull interviews Toronto-base mining analyst Stan Sudol about the recent cutbacks by Vale at their Sudbury operations. Click here for the interview: http://www.cbc.ca/video/news/audioplayer.html?clipid=2299263418

Nickel Mining Like its 1864 – by Richard (Rick) Mills (www.aheadoftheherd.com – November 2012)

http://aheadoftheherd.com/

Nickel Sulphide Project Pipeline Empty

Nickel is present in over 3000 different alloys that are used in over 300,000 products for consumer, industrial, military, transport/aerospace, marine and architectural applications.

Nickel’s biggest use, about 65%, is in alloying – particularly with chromium and other metals to produce stainless and heat-resisting steels. Its primary function is to stabilize the austenitic (face-centered cubic crystal) structure of the steel. Normal carbon steel will, on cooling, transform from an austenite structure to a mixture of ferrite and cementite. When added to stainless steel nickel stops this transformation keeping the material fully austenite on cooling. Austenitic stainless steels have high ductility, low yield stress and high tensile strength when compared to carbon steel – aluminum and copper are examples of other metals with the austenitic structure.

Another 20% is used in other steels, non-ferrous alloys (mixed with metals other than steel) and super alloys (metal mixtures designed to withstand extremely high temperatures and/or pressures or have high electrical conductivity) often for highly specialized industrial, aerospace and military applications.

About 9% is used in plating to slow down corrosion and 6% for other uses, including coins, electronics, in *batteries for portable equipment and hybrid cars, as a catalyst for certain chemical reactions and as a colorant – nickel is added to glass to give it a green color.

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Financing in place for Broken Hammer [Sudbury] project, says miner – by Star Staff (Sudbury Star – November 21, 2012)

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

Lively-based Wallbridge Mining Company Limited announced Tuesday it has secured financing to help develop its promising Broken Hammer Project, located north of Capreol.

The company said Callinan Royalties has agreed to provide Wallbridge with a line of credit for $2 million. In addition, Callinan will purchase 8,333,333 units of Wallbridge, at a price of $0.18 per unit, for gross proceeds of $1.5 million, subject to the approval of the Toronto Stock Exchange.

“We are pleased to have entered into this transaction with Callinan, a reputable royalty firm, for two reasons,” Marz Kord, president and CEO of Wallbridge, said in a release. “First, this new capital injection allows Wallbridge to accelerate the development plans for the Broken Hammer Project without significant equity dilution.

“Secondly, Callinan’s interest in financing the corporation at a premium to the current market in return for the option to purchase royalties on our 100%-owned Sudbury properties underscores the inherent value in these exploration assets, as well as broadening our already strong shareholder base.

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