Construction to start this summer on Voisey’s Bay underground mine (St. John’s Telegram – June 11, 2018)

http://www.thetelegram.com/

Construction of the Voisey’s Bay underground mine will proceed this summer, Premier Dwight Ball announced today (Monday) in St. John’s. Eduardo Bartolomeo, executive director of Base Metals, Vale, called the underground mine the natural evolution of the project.

First ore production from the underground mine is expected no later than April 2021 and will allow the continued operation of the Long Harbour processing plant.

According to government, the underground mine will extend the operating life of Voisey’s Bay by at least 15 years and will result in close to $2 billion in capital investment by Vale. It is expected to provide 16,000 person years of employment during the five-year construction period — peaking at 4,800 in 2020.

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FORECAST: EV nickel demand to surge tenfold by 2025, Vale says – by Millicent Dent (Metal Bulletin.com – May 15, 2018)

http://www.metalbulletin.com/

Mass production of electric vehicles (EVs) will transform the nickel market, which must evolve from pricing and supply perspectives in order to meet the anticipated surge in demand.

“We’re already preparing [to enter the EV space] but we’re going to preserve optionality until it’s time and we can extract value,” Robert Morris, Vale’s executive vice president of sales and marketing for base metals, told Metal Bulletin.

Nickel prices are not nearly high enough to incentivize more production to come online. “If we want to supply this battery revolution with the appropriate nickel units, prices will have to be substantially higher,” he said, adding that it would likely take a couple of years for that to occur.

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Vale Reaches $700 Million Deal to Sell Cobalt Output – by Jack Farchy and R.T. Watson (Bloomberg News – June 8, 2018)

https://www.bloomberg.com/

Vale SA reached an agreement to sell future production of cobalt as battery makers look to shore up supply of the metal amid a nascent electric-vehicle boom, people with knowledge of the matter said.

The deal is for about $700 million of cobalt produced at the Voisey’s Bay complex in Canada that predominately churns out nickel, the people said, asking not to be identified because talks are private. Vale’s Rio de Janeiro-based press department declined to comment.

The Brazilian miner has been looking for financing to extend the life of the mine by transiting to underground from open-pit operations and has said publicly that a so-called streaming arrangement was among options.

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A Voisey’s Bay breakthrough? Significant mining announcement coming Monday – by Terry Roberts (CBC News Newfoundland-Labrador – June 8, 2018)

http://www.cbc.ca/news/canada/newfoundland-labrador/

Government, Vale confirms plans for a media event

Nickel prices have soared in recent months, and it now appears that rebound will mean big news for Labrador’s mining sector. Government and company officials have confirmed that a “significant” mining announcement will take place in St. John’s Monday, regarding the long-delayed underground mine at Voisey’s Bay.

“Indeed, the government is making a significant mining announcement on Monday and we look forward to joining them,” a spokesperson for Vale wrote in an email to CBC News Friday morning.

The government confirmed Friday afternoon that Premier Dwight Ball will join leaders from the Brazilian mining giant at 10 a.m. Monday at the Sheraton Hotel. No one will confirm details, but sources say Vale plans to announce that plans to establish an underground mine at Voisey’s Bay are back on track.

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Transparent Nickel Miners Will Have an Edge with Car Manufacturers – by Georgia Williams (Investing News Nickel – June 7, 2018)

Investing News Nickel

The Investing News Network (INN) sat down with Srinath Rengarajan, senior automotive research analyst at Oliver Wyman, at the 6th International Nickel Conference last week.

Topics covered at the show included how nickel will remain relevant in the battery market, the evolution of the electric vehicle (EV) sector and what needs to happen next to ensure green vehicles become a common sight on our roads and highways.

The two-day conference, held in downtown Toronto, was the first time in decades that analysts and specialists from the automotive sector were invited to a nickel-centric conference, a welcome shift from the mining-focused nature of most industry conferences.

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Sudbury Accent: A slow road to the Ring [Part 2 of 5] – by Stan Sudol (Sudbury Star – June 4, 2018)

http://www.thesudburystar.com/

Let’s be brutally honest and frank. Liberal Premier Kathleen Wynne and her mines minister, Michael Gravelle, have utterly failed in moving the Ring of Fire forward, which is located in the isolated James Bay lowlands about 500 kilometres northeast of Thunder Bay.

For slightly more than five years, they have not been able to get shovels in the ground for an essential road into the most promising mineral discoveries in Canada since the Sudbury Basin in 1883, which was found during the construction of the Canadian Pacific Railway.

By coincidence, it took a bit less than five years to build the entire CPR in the early 1880s from Ontario to Vancouver – a distance of roughly 4,200 kilometres. The distance between the Ring and the provincial highway system is about 280 kms.

But to cut both of these politicians some political slack, enormous blame must also be given to the previous Harper and current Trudeau governments, as well. First Nations are primarily a federal responsibility – though that doesn’t prevent the province from stepping in if there is a dire need of some sort.

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Sudbury Accent: Sudbury as the ‘Harvard’ of hardrock mining [Part 4 of 5] – by Stan Sudol (Sudbury Star – June 6, 2018)

http://www.thesudburystar.com/

The Sudbury Basin is Ontario’s metallic equivalent to the Alberta oils sands without the massive open pits as most of the mines historically have been underground. For 135 years, the region’s unique polymetallic ore-bodies have produced nickel, copper and significant quantities of cobalt, gold, silver and platinum group metals (PGMs).

It is the third largest source of PGMs after South Africa and Russia. Many multi-generational families earn good middle-class salaries in the many mines, two mills, two smelters and one refinery. Roughly 30 per cent of provincial mining activity takes place in Sudbury, according to the Ontario Mining Association.

Glencore’s recent C$900 million investment in the development of its Onaping Depth project and Vale’s C$760 million phase one development of its Copper Cliff Deep mine are indications of growing confidence in the future of the region.

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Here are the super-wealthy billionaires’ assets on Kola Peninsula – by Thomas Nilsen (The Barents Observer – June 5, 2018)

https://thebarentsobserver.com/en/

Take a closer look at these eight people. They have two things in common; all are on Forbes list of the world’s billionaires and they are all making big money from industry on the Kola Peninsula.

Alexey Mordashov tops the list, with a private fortune of $18,7 billion. An hour drive south of Murmansk, he runs the iron-ore mines in Olenegorsk. Number two on the list, Leonid Mikhelson is about to create thousands of new jobs just north of Murmansk where the construction of Kola Yard currently is the largest industrial development project anywhere north of the Arctic Circle in Europe.

Other well known oligarchs on the list includes Oleg Deripaska and Vladimir Potanin. Forbes list includes 42 Russians with a private fortune of more than $1 billion. Here, we only include those with big businesses in the Murmansk region.

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ICEBREAKING BULKER FOR CANADIAN ARCTIC MINE (The Motor Ship.com – June 6, 2018)

http://www.motorship.com/

Montreal-based Fednav has ordered a new icebreaking bulk carrier in Japan to sustain the year-round transportation requirements of Glencore’s Raglan nickel mine in northern Quebec, writes David Tinsley.

The 31,000dwt vessel has been contracted through trading house Sumitomo Corporation and will be built by Japan Marine United Corporation (JMU) at the Yokohama shipyard. The template for the project will be provided by Fednav’s 31,750dwt Nunavik, claimed to be the world’s most powerful icebreaking bulker when commissioned in 2014 from JMU’s Tsu yard.

Nunavik is in turn similar in design to the company’s 32,000dwt Umiak 1, delivered in 2006 by JMU predecessor Universal Shipbuilding. Both existing vessels support northern mining operations.

The newbuild will be of Polar Class 4 standard and, as with Umiak 1 and Nunavik, will offer a broader cargo carrying capability than that of a pure bulker. While ensuring a southbound flow of high quality nickel concentrates, she will also be used to transport a variety of supplies to the mining complex on northbound voyages, including equipment, machinery and dry and liquid consumables.

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What Does Northern Ontario Want From Queen’s Park? – by Stan Sudol (RepublicOfMining.com – May 31, 2018)

Northern Ontario Being Strangled

On June 7th, the people of Ontario will be going to the polls in one of the most pivotal elections in the province’s history. While Northern Ontario – north of the French and Mattawa Rivers, as I have never recognized the Parry Sound and Muskoka ridings as being part of the North – encompasses roughly 90 per cent of the province’s land mass, its population has been steadily declining to slightly over five per cent of Ontario’s total.

Unfortunately, our impact on provincial policies is almost negligible.

A buck a beer, cheaper gas, tax breaks combined with unaffordable infrastructure and social commitments, twinning the trans-Canada in Northern Ontario, buying back Hydro One, and jumping on a bulldozer to start building the road into the Ring of Fire are part of a bevy of mostly worthy but unsustainable promises Conservative Doug Ford, Liberal Kathleen Wynne and NDP Andrea Horwath have made.

However, I seldom hear any actual policy initiatives to grow the economy and create wealth so we can afford all these election initiatives and perhaps, just perhaps put a little money on our provincial debt which has more than doubled during the past 15 years under the McGuinty/Wynne Liberal era from about $138 billion in 2003/04 to $325 billion currently and growing. By the way, this is the largest sub-national debt in the world and twice as large as California which has a population of almost 40 million. We are paying roughly $1 billion a month to service that debt. That will surely rise when interest rates, which are at historic lows, eventually start going up!

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Vale to transition Creighton deep zone to all-electric fleet – by By Kelsey Rolfe (CIM Magazine – May 2018)

http://magazine.cim.org/en/

Vale will swap old diesel equipment at Creighton for electric, and develop Upper Kelly Lake, Victor projects as fully electric mines

Vale Base Metals is transitioning its Creighton deep zone to an electric vehicle fleet, and designing its future greenfield operations to be all-electric.

As vehicles in Creighton’s deep zone fleet reach the end of their life, they will be replaced with battery-powered vehicles, beginning this year with an explosives loader and three personnel carriers. Next year 11 new pieces of battery-powered equipment will be brought into operation deep underground, Samantha Espley, the general manager of the mining and mineral processing technical excellence centre at Vale Base Metals, told CIM Magazine.

“This trend will continue as we replace old diesel equipment with a new battery-electric fleet,” she said. In addition, its Upper Kelly Lake project, adjacent to the Copper Cliff mine, and its ultra-deep Victor deposit, next to Glencore’s Nickel Rim Deep, are currently being designed as fully electric mines.

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Commentary: Nickel’s star performance underpinned by old and new drivers – by Andy Home (Reuters U.K. – May 21, 2018)

https://uk.reuters.com/

LONDON (Reuters) – Nickel is turning out to be the star performer of the major industrial metals so far this year. True, the London Metal Exchange (LME) price has retreated from April’s three-year high of $16,690 as panic that U.S. sanctions on Russia might be extended to Norilsk Nickel has dissipated.

But at a current $14,650 per tonne, LME three-month nickel is still up 16 percent on the start of the year. Tin, the second strongest performer among the LME base metals pack, is up by just two percent.

In China the Shanghai Futures Exchange (ShFE) contract largely ignored London’s Russian jitters but has also just notched up its highest trading level in three years. Both London and Shanghai markets are being buoyed by falling visible inventory, which is reinforcing a bullish narrative of supply shortfall.

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Britain yet to renew visa of Russian billionaire Abramovich: sources – by Polina Devitt (Reuters U.S. – May 20, 2018)

https://ca.reuters.com/

MOSCOW/LONDON (Reuters) – British authorities, whose relations with Moscow have been strained, are yet to renew Russian billionaire Roman Abramovich’s visa after it expired last month, two sources familiar with the matter told Reuters.

Abramovich, best known in Britain as the owner of Premier League soccer club Chelsea, is in the process of renewing his visa as part of a standard procedure, one of the sources said.

It is taking longer than usual but there is no indication that the visa will not be renewed as there is no refusal or negative feedback, he added. Millhouse, the company that manages Abramovich’s assets, declined to comment. Britain’s Home Office could not be reached for comment.

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Vale Boss Prefers Giving Away Windfall to Avoid Sins of the Past – by R.T. Watson and Joseph Richter (Bloomberg News – May 18, 2018)

https://www.bloomberg.com/

Vale SA, once the most generous dividend payer among major mining companies, may be poised to regain that status with its chief executive officer nearing debt targets and unwilling to hoard cash or rush into deals.

Like others in the industry, the biggest producer of iron ore and nickel cut dividends to defend against a commodity downturn that eroded profit and pushed up debt metrics.

With prices recovering as supply gluts ease, producers are once again rewarding shareholders. In March, Vale approved a plan to begin paying at least 30 percent of earnings before items minus sustaining investments. For the first quarter, that meant $1 billion.

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Opinion: Rushing to Ruin the Boundary Waters Wilderness – by Richard Moe (New York Times – May 17, 2018)

https://www.nytimes.com/

Minnesota prides itself on being “the Land of 10,000 Lakes.” At least 1,100 lie in the far northeastern part of the state, along the border with Canada, where more than a million acres of pristine waters and unspoiled woodlands are interspersed with canyons, steep cliffs and huge rock formations shaped by glaciers during the last ice age.

Today this region, the Boundary Waters Canoe Area Wilderness, looks almost exactly as it appeared 10,000 years ago when Paleo-Indians lived there.

Sigurd Olson, the naturalist and writer who guided there for three decades, called it “the most beautiful lake country on the continent.” Few who see it would disagree. Today it is the most visited wilderness area in the United States.

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