Nickel – Page 121 – Republic of Mining

Vale profits to drop 61%: Analysts – by Jeb Blount and Sabrina Lorenzi (Reuters/Sudbury Star – October 23, 2012)

October 24, 2012

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

RIO DE JANEIRO (Reuters) – Vale SA (VALE5.SA: Quote, Profile, Research, Stock Buzz) the world’s No. 2 mining company, is expected to report that third-quarter profit tumbled 61 percent from a year earlier as output slipped and the price of iron ore and other metals dropped to three-year lows.

Profit is also likely to be hurt by the company’s decision to set aside about $540 million for the possible payment of back royalties in a dispute with Brazil’s government.

Net income likely fell to $1.92 billion in the three months ending September 30 from $4.93 billion the year before, according to the average estimate of 19 analysts in a Reuters poll.

If results expected late on Wednesday confirm the estimate, it will mark the company’s worst quarterly profit in 33 months. Falling prices and weak demand in China, Vale’s largest market, have led the Rio de Janeiro-based company to delay spending, close operations and consider cuts to investments and dividends.

“Third quarter results are likely to suffer from a steep drop in prices,” BTG Pactual Group analysts Edmo Chagas, Antonio Heluany and Gregory Goldfinger wrote in a Monday report.

Study finds [Sudbury’s Wallbridge Mining] Broken Hammer has potential to be viable – by Star Staff (Sudbury Star – October 23, 2012)

October 23, 2012

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

Wallbridge Mining Company Ltd. has released what it’s calling positive results on studies conducted on its Broken Hammer copper and platinum group metal project in Sudbury.

“We are very encouraged by the positive results of the pre-feasibility study,” Marz Kord, president and CEO of Wall-bridge Mining, said in a release.

“The pre-feasibility suggests that the Broken Hammer project has the potential to become economically viable and generate positive cash flow. What’s more encouraging is that the deposit remains open for expansion to the west and to depth.

“The footwall-style Broken Hammer project is in a large land package on the northern rim of the Sudbury basin within a 9 km strike length of very similar geology with extremely strong prospects.”

The Broken Hammer project, located north of Capreol, is planned to be an open pit operation used for the extraction of about 196,000 tonnes of copper, nickel and platinum group metals.

[Manitoba] Province has ‘significant concerns about Vale’s commitment to the Thompson mining operations’ – by John Barker (Thompson Citizen – October 22, 2012)

October 22, 2012

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

Urgent meeting with Poppinga

The provincial government has ‘significant concerns about Vale’s commitment to the Thompson mining operations’ and says it will be meeting on an urgent basis with Vale Canada President Peter Poppinga to discuss issues relating to Thompson, Steve Ashton, Thompson’s NDP MLA and minister of infrastructure and transportation, said Oct. 22.

“Following meetings with Murilo Ferreira, the CEO of Vale in 2011, and a further meeting between the Premier (Greg Selinger) and the CEO in Brazil in May 2012 we have been engaged in discussions with Vale in relation to the fund and other issues regarding the Thompson operation,” Ashton said. “We have made it clear that the Province of Manitoba is committed to continue working for value added jobs from the nickel resource in Manitoba.

“There was progress on these discussions. However the recent announcement on Birchtree and the delay in a decision on the 1 D project has raised significant concerns about Vale’s commitment to the Thompson mining operations.

Vale reports production declines across wide band of commodities – by Dorothy Kosich (Mineweb.com – October 18, 2012)

October 22, 2012October 18, 2012

http://www.mineweb.com/mineweb/view/mineweb/en/page102055?

Bloomberg Industries says Vale’s share of the global seaborne iron-ore market has declined from 28% in the first half of 2011 to 26% for the same period of this year.

RENO (MINEWEB) – Vale has reported production declines in iron ore, pellets, manganese, copper, potash and phosphate rock for the first nine months of this year.

While the Brazilian mega-miner’s coal output increased a record 144.4% during the period, pellet output was up 3.8% and nickel production stayed flat.

For the first nine months of this year, Vale reported iron ore production of 234.5 million metric tons, a 2.2% drop over the 240 million metric tons of production reported during the first nine months of 2011.

“At Carajas we have not been able to match last year’s performance,” said Vale. “Issues with environmental permitting led to the continuation of mining in some older pits, which has entailed lower productivity, lower Fe content and higher costs.”
“Current performance is definitely not consistent with the high quality of our assets and corrective measures are underway,” the company said in its 3Q12 production report.

Sudbury must become ‘self-sustaining’ – Vale by Jonathan Migneault (Sudbury Star – October 18, 2012)

October 18, 2012

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

Vale’s Sudbury operations must become “self-sustaining,” according to a letter sent to the company’s global operations Wednesday by Peter Poppinga, CEO of Vale Canada Ltd.

What that will mean to the company’s Sudbury operations and its 4,000-plus employees will become clear by the end of the week.

“In every area that we operate, there will be conversations with employees about specific actions that can be taken at those sites,” said Cory McPhee, Vale’s vice-president of corporate affairs. “Sudbury is no different.”

McPhee said Vale needs to make changes to improve efficiencies and control costs, while facing a difficult base metals market hampered by weak prices and demand.

He said representatives from the company will be speaking with employees across its global operations, including in Sudbury, before the end of the week to go over exactly what they mean by becoming more “self-sustaining.”

Duluth has big plans for Minnesota mining – by John Chadwick (Mineweb.com – October 3, 2012)

June 19, 2013October 3, 2012

www.mineweb.com

According to the miner, truly magnificent orebodies are being revealed in an area that has already played a very important role in the US mining industry.

LONDON (INTERNATIONAL MINING) – Ore riches that built America have much more to offer. Minnesota’s Iron Ranges to the west of Lake Superior – Vermilion, Mesabi and Cuyuna from the northeast of Duluth down to the south-southwest – have been the most important ore deposits in US history, and continue to be so, providing well over 90% of the iron ore the country needs. Just a few of the great historical landmarks include the establishment, in 1901, of the world’s first multi-billion dollar corporation, US Steel.

Before that, in May 1890, Edmund Longyear (founder of one of the companies that was to become, much later, Boart Longyear) brought the diamond drill to the Iron Ranges. This exploration tool was to be a key to unlocking the riches of the region.
William Boeing made profits from the Mesabi Range and just a few other great names with Iron Ranges associations include Henry Bessemer, Frederick Weyerhaeuser, Andrew Carnegie, John D. Rockefeller, Kelsey D. Chase, and J.P. Morgan.

Of the known US mineral resources, Minnesota accounts for 99% of the nickel, 90% of the iron, 88% of the cobalt, 51% of the platinum and 48% of the palladium, 40% of the manganese and 34% of the copper. America’s third largest mining state may be poised to take the lead. In work pioneered by Duluth Metals, its Senior Vice President, Exploration, Dean M. Peterson and his innovative team, truly magnificent orebodies are being revealed in an area that has already played such an important role in the US mining industry.

Nickel price drop only temporary, TD economist says – by Heidi Ulrichsen (Sudbury Northern Life – September 17, 2012)

September 18, 2012

This article came from Northern Life, Sudbury’s biweekly newspaper.

No need for ‘panic’: mining supply association director

The head of commodity strategy for TD Securities said nickel prices may reach as high as $9 a pound by the second quarter of next year. Speaking at a Sudbury Area Mining Supply and Service Association (SAMSSA) meeting Sept. 17, Bart Melek said nickel prices have sunk in recent months because China just isn’t buying as much of the metal as it once did.

That’s because the country has accumulated a significant stockpile of metals. But as they start to run out, nickel prices will pick up again, he said. TD is predicting that nickel prices will be at $8.23 in the last quarter of 2012, $8.50 in the first quarter of 2013 and $9.00 in the second quarter of 2013.

Currently, nickel prices are sitting at around $8.25 a pound. They reached as low as $7 a pound in August. “I have about $9 in the second quarter of 2013,” Melek said.

“Before that, inventories will have pretty much whittled down. We will already see an impact of production cuts around the world in nickel facilities, bringing that market into a bit of a deficit.

China helping nickel: analyst – by Carol Mulligan (Sudbury Star – September 18, 2012)

September 18, 2012

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

Three key drivers will boost commodity prices in the second half of 2013 — China, China and China — says an economist with TD Securities. China consumes about 40% of the world’s nickel and copper, and its economy is “not c o l l a p s i n g ,” despite some naysayers, says Bart Melek.

China has $3.6 trillion in reserve, a minimum debt to gross domestic product ratio and a “big political incentive” to keep growing, Melek told about 100 people at a breakfast meeting Monday of the Sudbury Area Mining Supply and Service Association.

Stability is important in the one-party state, whose government is determined to keep people employed and food on the table, said Melek. China has also embarked upon a five-year plan to move 20 to 25 million of its citizens every year from rural areas to cities. That requires more housing and transportation services that require copper, nickel and iron ore.

China’s economy may be growing more slowly than it was, but it’s still growing three to four times as fast as our economy, said Melek, head of commodity strategies at TD Securities. Melek is forecasting economic stability in the United States as well, because of a monetary policy to hold interest rates at 0% to 2015.

NEWSRELEASE: Canadian Arrow Commences Nickel Production, Discovers New Nickel Massive Sulphides at Kelex

September 17, 2012

SUDBURY, ON, Sept. 17, 2012 /CNW/ – Canadian Arrow Mines Limited. (CRO: TSX-V) (the “Company”) is pleased to announce it has commenced producing and stockpiling nickel-bearing massive sulphides produced from its Kelex mine. Furthermore, initial mine development and overburden stripping have exposed unexpected near-surface nickel-bearing massive sulphides extending both east and west along strike of, and continuous with, the current production zone. The stripping program will continue to further evaluate the discoveries that continue to project an unknown width, depth and strike distance below overburden cover. Channel sampling is planned once the extent of mineralization is exposed. Results will be published as they become available.

Mr. Kim Tyler, President of the Company stated, “We are pleased to have achieved the production milestone and are particularly excited about the discovery of the new strike extensions. Development work intended for ramp access in unmineralized rock unexpectedly encountered 2 metres of solid nickel-bearing massive sulphide on the sparsely drilled flanks of the known mineralization. The new mineralization will be a welcome addition to our production plans and demonstrates greater continuity of the Alexo Nickel Complex mineralization on the whole.”

Widths of up to 3 metres of continuous massive and semi-massive sulphide over a 22 metre extended strike length on the west and 13 metres of extended strike on the east have so far been exposed. Depth extensions will become better understood as production advances to depth.

North Shore nickel property reconfigured for future operations – by Lindsay Kelly (Northern Ontario Business – September 2012)

September 17, 2012

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.

The year 2011 was a tough one for Ursa Major Minerals.

Last June, a dissenting group of stakeholders sought to replace the board due to a lagging performance on the TSX. Their advances were rebuffed, but then operations at the company’s Shakespeare property west of Sudbury were halted when a processing agreement couldn’t be renegotiated with Xstrata Nickel for the use of its Strathcona Mill.

That’s where things stood until July when Ursa merged with Prophecy Platinum Corp., and now the discord has been laid to rest, according to Prophecy’s president and CEO John Lee. With a vote of 98.9 per cent in favour of the merger, stakeholders showed a vote of confidence in having a larger company carrying the project forward, Lee said.

“I wouldn’t say we’re one happy family…but I think we’ve comfortably put all that behind us and reunited in a way to look for ways to advance Prophecy Platinum going forward,” he added. Now the company is refocusing its efforts on Shakespeare, a nickel-copper-PGM interest located 70 km west of Sudbury near the town of Webbwood. Lee said the company is concentrating on “clearing up the accounts payable” and putting out an updated resource estimate based on the drilling that’s occurred in the last year.

Opening Up The Ring Of Fire: Wes Hanson Discusses Noront’s Nickel-Copper-PGM Feasibility Study – by Kevin Michael Grace (Resourceswire.com – September 11, 2012)

November 3, 2015September 15, 2012

http://resourceswire.com/

Noront Resources Ltd V.NOT announced September 5 the results of a 43-101 feasibility study of its Eagle’s Nest nickel-copper-PGM mine at McFaulds Lake in the Ring of Fire, northern Ontario. Based on metals prices of $9.43 per pound copper, $3.60 per pound copper, $1,600 per ounce platinum, $599 per ounce palladium and $1,415 per ounce gold, the study forecasts an aftertax net present value (NPV) of $543 million (at an 8% discount rate), a 28% aftertax internal rate of return (IRR), a $609-million initial CAPEX, plus a $160-million life-of-mine sustaining CAPEX and a three-year payback period.

Eagle’s Nest contains proven and probable resources of 11.1 million tonnes grading 1.68% nickel, 0.87% copper, 0.89 grams per tonne platinum and 3.09 g/t palladium. The mine is forecast to produce one million tonnes per year, producing 150,000 tonnes of nickel-copper concentrate annually over 11 years, at $97 per tonne or $2.34 per pound of nickel equivalent.

Noront President/CEO Wes Hanson spoke to Kevin Michael Grace September 5, 2012.

RW: What’s your path to production?

WH: In addition to the technical and social risks associated with building any mining project, on top of it for the juniors you always have a challenge of how you’re going to finance construction. We are fortunate enough that the capital costs aren’t overly onerous. We’re only looking at a range of $600 million.

Cuba convicts 12 of corruption in nickel industry – by Laura Kane (Toronto Star – August 22, 2012)

August 22, 2012

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

A Cuban court has convicted a dozen people of corruption in the nickel industry, including two employees of a Cuban-Canadian joint concern, state media announced Tuesday.

Accounting executive Alfredo Barallobre Rodriguez and deputy production director Orlando Carmenaty Olmo of Empresa Moa Nickel SA, a joint operation of Cuba and Toronto-based mining company Sherritt International Corp., were sentenced to six and five years, respectively. Company officials didn’t return requests for comment, and the nationality of the two men couldn’t immediately be confirmed.

High-ranking government officials and an executive at a state-run nickel company were also sentenced in the case, involving a contract for the expansion of the Pedro Soto Alba nickel and cobalt processing plant at the Moa mine. The convictions are the first in a wider crackdown on corruption that has already seen several foreigners, including two Canadians, detained.

Vale says ‘no plans’ to shut down operations – by Carol Mulligan (Sudbury Star – August 20, 2012)

August 20, 2012

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

As senior mining analyst at Salman Partners, an investment dealer, Raymond Goldie keeps a close eye on the nickel industry. But he’s finding it difficult to keep tabs on Vale, one of the world’s largest nickel producers.

That being said, Goldie is predicting Vale could be planning a production shutdown because of the low price of nickel. Nickel has fallen to below $7 a pound, something that could prompt other companies such as Xstrata Nickel and Norilsk to cease production for awhile as well, he said.

Vale spokeswoman Angie Robson said a planned maintenance shutdown is now underway at the company’s Greater Sudbury operations. Robson said the company has no other plans. “We don’t speculate on rumours, but there are no plans to shut down operations,” she said.

Goldie and other mining analysts who used to follow the former Inco Ltd. closely are finding it more difficult to do that now that it’s owned by the Brazil-based mining giant.

Drop in nickel prices temporary, profs say – by Heidi Ulrichsen (Sudbury Northern Life – August 18, 2012)

August 18, 2012

This article came from Northern Life, Sudbury’s biweekly newspaper.

There may have been a drop in nickel prices in recent months, but there’s not much to worry about in the long term, as prices are likely to rise again, according to two Laurentian University professors.

A year ago, nickel prices stood at roughly $10 a pound, and now they’re sitting at around $7 a pound. Jean-Charles Cachon, a professor of strategy in Laurentian’s school of commerce, said the market has dipped because the Chinese government is buying less metals right now.

That’s because they’ve stockpiled a lot of metals over the last five years. “If they stop purchasing, then it has a huge impact on prices,” Cachon said. “My understanding is this is what’s happening right now.”

But Dave Robinson, an economics professor at Laurentian, said he thinks nickel prices are going to go back above their current levels quite soon. “I can’t see them staying down,” he said. “The long-run story is we’re going to get high prices.”