Nickel – Page 87 – Republic of Mining

[Sudbury Big Nickel Iconic Landmark] Ted Szilva has passed away – by Carol Mulligan (Sudbury Star – March 11, 2016)

March 11, 2016

http://www.thesudburystar.com/

The man responsible for the creation of one of Canada’s best-known landmarks has died at age 81. Ted Szilva was an ambitious young firefighter when he came up with the idea of producing a giant coin as a symbol for the world’s nickel capital.

The replica 1951 nickel, which cost $35,000, led to the creation of Big Nickel Mine, an attraction of Science North, and eventually Dynamic Earth.

Szilva went against public opinion when he set out to produce the Big Nickel. He raised the funds to create the Big Nickel monument by selling medallions and coins he developed. ”I would get $6,000 to $7,000 in one day through the sale of the medallions,” he said told The Sudbury Star’s Harold Carmichael in 2003. He could not get bank financing because he was told his was a “crackpot” idea.

Vale making strides towards underground mine in Labrador – by Terry Roberts (CBC News Newfoundland and Labrador – March 10, 2016)

March 10, 2016

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

Plans to expand Vale’s mining operations in Labrador are progressing as the Brazilian-based mining giant prepares for construction at the Voisey’s Bay site.

A company official says a project team is being assembled in St. John’s, the procurement process is underway, and the process of selecting an engineering and project management contractor is in the final stages.

Civil construction will begin this summer, Vale’s Bob Carter explained in a statement to CBC News, and the new mine is expected to produce first ore in four years. “Next year we will begin the actual underground mine development work,” he wrote.

Unexpected headwinds keep commodity prices lower for longer – by Henry Lazenby (MiningWeekly.com – March 7, 2016)

March 7, 2016

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – A faster-than-expected slowdown in demand for commodities in 2015 has placed a damper on broad-based commodity price recoveries in 2016, compounded by lacklustre global economic growth and record inventories, which will take time to work down as production cutbacks and mine closures take effect.

Analysts representing the world’s top market intelligence firms were talking about commodities and the market outlook in Toronto on Sunday, on the first day of the yearly Prospectors and Developers Association of Canada’s convention – the largest mining show on earth.

Kicking off the afternoon session was Randgold Resources chief executive Mark Bristow, who outlined future strategic paths for mining companies in today’s new environment. He examined the challenges inherent in reconciling the industry’s essentially long-term nature with the market’s short-term demands and explained that the definition of growth was not immutable but changed from stakeholder to stakeholder and at different points in the price cycle.

A plan for Minnesota’s first copper-nickel mine has passed a major milestone – by Steve Karnowski (Vancouver Province – March 3, 2016)

March 4, 2016

http://www.theprovince.com/

ASSOCIATED PRESS-MINNEAPOLIS – A plan for Minnesota’s first copper-nickel mine passed a major milestone Thursday with the Department of Natural Resources approving the project’s final environmental review, meaning the company can now start pursuing the long list of permits it needs to move forward.

DNR Commissioner Tom Landwehr said he determined that the 3,500-page environmental impact statement for the proposed PolyMet mine in northeastern Minnesota meets all the legal requirements. If the project is built as described, he said, “we will meet standards … intended to protect public health and the environment.”

The approval lets PolyMet Mining Corp. begin applying for the more than 20 permits it needs to build the mine near Babbitt and processing operations six miles away near Hoyt Lakes, at the site of the former LTV Steel taconite plant that has been closed since 2001.

NEWS RELEASE: Little Growth Expected in Sudbury and Thunder Bay this Year

March 3, 2016

OTTAWA, March 3, 2016 /CNW/ – Sudbury and Thunder Bay can expect positive but modest growth of around 1 per cent in 2016, according to The Conference Board of Canada’s Metropolitan Outlook: Winter 2016.

“Sudbury and Thunder Bay faced difficult economic conditions in 2015 and weak resources prices will continue to weigh on their economies this year. Though both cities will see positive economic growth this year, it will be modest at best,” said Alan Arcand, Associate Director, Centre for Municipal Studies.

HIGHLIGHTS

Following two years of declines, Sudbury’s economy is forecast to expand by 1 per cent in 2016.
Thunder Bay’s economy will continue to expand in 2016, albeit by a modest 1.1 per cent.
Vancouver will be the fastest growing metropolitan economy in Canada in 2016, with growth of 3.3 per cent.

Vale Looks to Sell Core Assets to Reduce Debt – by Paul Kiernan and Rogerio Jelmayer (Wall Street Journal – February 25, 2016)

February 25, 2016

http://www.wsj.com/

RIO DE JANEIRO—Brazilian mining giant Vale SA became the first of the so-called Big Three iron-ore producers to put core assets on the block as it seeks to reduce high debt levels amid the commodity downturn.

Chief Executive Murilo Ferreira said Thursday in a conference call that Vale wants to reduce its net debt to $15 billion within 18 months, from $25.23 billion at the end of the fourth quarter. But given the uncertain outlook for prices of iron ore and other raw materials, Vale is “actively exploring more aggressive actions for this deleveraging, including the sale of core assets,” Mr. Ferreira said.

“We aren’t attached to assets in any commodity, and we will evaluate all options,” he said.

Western’s not fickle on nickel, but losing dimes – by Paul Garvey (The Australian – February 26, 2016)

February 25, 2016

http://www.theaustralian.com.au/

Western Areas — the last man standing in Australia’s nickel sector — says it is still a long way from following its peers in shutting down its nickel mines, with the company instead pushing ahead with exploration studies despite recording a first-half loss.

The Perth-based miner yesterday axed its dividend and revealed a 10 per cent cut in salaries to its board and senior management after posting a $20 million loss, down from a $23.5m profit one year ago.

Western Areas is the last pure-play nickel company still in production, following the recent decisions by Panoramic Resources and Mincor Resources to shut their remaining mines. The price of nickel, which is used in the production of stainless steel, has fallen to its lowest level in a decade due to a combination of weakened demand and continued oversupply.

World Bank lowers nickel price projection, Terrafame sticks to optimistic forecast (Ujtkset News – Feburary 23, 2016)

February 23, 2016

http://yle.fi/uutiset/

The state-owned company Terrafame, which now owns and operates Talvivaara’s mining operations in Sotkamo, eastern Finland, says it’s sticking to optimistic price forecasts for its business and financial planning. The World Bank however, has forecast a 15-percent drop in market prices for nickel, one of the mine’s main outputs.

Shortly after it acquired the mining operation Talvivaara last August, the state-owned company Terrafame said that it would be basing its business plans on “conservative nickel price forecasts” issued by the World Bank.

“Our business plan is based on it [nickel prices] rising to about 16,000 dollars [per ton] by 2020, which it the World Bank’s forecast. If we stick to this framework, then we will be able to achieve a positive cash flow by the end of 2017 into 2018,” Terrafame board chair Lauri Ratia said in mid-August.

UPDATE 3-Brazil’s Vale posts record iron ore, nickel output even as prices slump – by Jeb Blount (Reuters India – February 18, 2016)

February 19, 2016

http://in.reuters.com/

Feb 18 Brazilian miner Vale SA produced record amounts of iron ore, nickel, copper, cobalt and gold as it battled a slump in global metals prices by boosting output in search of greater market share.

Results, though, were below what some analysts expected even as they helped Vale, the world’s third-largest mining company, meet some of its own output targets.

Fourth-quarter iron ore production rose 2.4 percent year on year to 88.4 million tonnes, its largest ever fourth-quarter total, the company said on Thursday. Output was down 3 percent compared with the third quarter.

Vale freezes hiring in Sudbury – by Carol Mulligan (Sudbury Star – February 18, 2016)

February 18, 2016

http://www.thesudburystar.com/

Vale Ltd. has implemented a hiring freeze at its Sudbury operations as the company faces the challenge of nickel prices that dipped lower than $3.50 a pound this year.

The freeze has been in effect since early January, said Vale spokeswoman Angie Robson, “but even before that, through 2015 given market challenges, we have been very selective in terms of hiring.”

The only exception to the freeze is those roles critical to run the business safely and productively, said Robson.

Low metal prices are putting the squeeze on mining companies everywhere including Sudbury.

As pressure on BHP and Glencore grows, Australia cuts may signal nickel revival – by Melanie Burton (Reuters U.S. – February 10, 2016)

February 10, 2016

http://www.reuters.com/

MELBOURNE – Australian nickel miners are under increasing pressure to suspend or cut production, with investors eyeing key announcements in coming weeks after rival producers in New Caledonia won a pledge of support from France.

Benchmark prices of the steel-making material have fallen more than 45 percent since early 2015 to their lowest since 2003, and are seen grinding lower amid ample global stocks and slowing property growth in top consumer China.

Glencore and BHP Billiton, whose high-cost Murrin Murrin and Nickel West facilities are struggling to sustain operations, are both due to make production and profit reports in coming weeks. News of any output cuts could buoy prices.

Nickel price crushed by weight of ghost stocks – by Andy Home (Reuters U.S. – February 8, 2016)

February 9, 2016

http://www.reuters.com/

LONDON – Another day, another landmark low for the nickel price.

London Metal Exchange (LME) three-month nickel traded down to $7,900 per ton on Monday morning. Forget the troughs of the Global Financial Crisis in 2008. Nickel is now trading at levels last seen in April 2003.

And there may be worse to come.

Might the price of nickel fall below that of copper, which is currently trading on the LME around $4,600 per ton? “Not an inconceivable prospect by any means,” according to one analyst, Leon Westgate of ICBC Standard Bank. (“Commodities Weekly”, Feb. 4, 2016).

Nickel downturn set to bring more pain – by Tess Ingram (Sydney Morning Herald – February 7, 2016)

February 8, 2016

http://www.smh.com.au/

The Kambalda Football Club is in crisis. For the first time since it formed in 1968, the future of the small but prominent club in the historic West Australian mining town is in jeopardy.

The downturn plaguing the nickel sector has forced many of the region’s mines to suspend operations, robbing the club of players for its senior teams.

President Cyril Poke said the club’s woes started last year when local nickel miner Mincor Resources, a long-time sponsor, began cutting jobs as the nickel price sank.

Mincor suspended production at its Mariner and Miitel mines at the end of January. The football club has called a “crisis meeting”.

National view: Slow permitting devastating US mining, manufacturing – by Kevin Kearns (Duluth News Tribune – February 7, 2016)

February 8, 2016

http://www.duluthnewstribune.com/

Kevin Kearns is president of the Washington, D.C.-based U.S. Business and Industry Council, a national business organization that advocates for U.S. manufacturers.

Imagine if significant gold deposits were found in northern Minnesota. That would be a boon for Minnesota mining, since gold is in great demand for use in such diverse products as smartphones and solar panels.

But what if it took 10 years for a mining firm to get the approvals needed to start extracting this gold? Imagine the disappointment in terms of lost job opportunities and lost tax revenue.

It’s not a far-fetched possibility, however, to expect a lengthy process before Minnesota could possibly enjoy any newfound gold wealth.

Commodity Markets Weighed Down By A New Factor, Environmental Metal – by Tim Treadgold (Forbes Magazine – February 4, 2016)

February 5, 2016

http://www.forbes.com/

In theory nickel, a steel-hardening metal, should be poised for a big price recovery as high-cost material is driven from a depressed market, but that’s before a new factor started to influence the business of nickel mining, environmental metal.

Similar in character to another non-market price driver, social metal, the new influence is entirely man made or, to be more specific, government made.

Social metal has been around for decades and is most evident in South American copper-mining countries where governments keep loss-making copper mines open as a way of maintaining employment to avoid social unrest.