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Saskatchewan Mining

‘Mr. Saskatchewan’ Brad Wall steps up as oil economy’s chief defender – by Claudia Cattaneo (Financial Post – February 24, 2016)

http://business.financialpost.com/

The oil crash has been rough on political leaders, but not Saskatchewan Premier Brad Wall. If opinion polls prove accurate, the two-term premier and his Saskatchewan Party are sailing toward another solid majority in the April 4 provincial election.

Wall, 50, remains wildly popular despite his oil-producing province’s economic slowdown and deteriorating government finances. Similar conditions contributed to the defeat last year of conservative, oil-industry supportive governments in Alberta and in Ottawa and are even poking a hole in Wall’s narrative that “Sask. Party times are good times” — as Regina Leader-Post columnist Murray Mandryk recently put it.

“It is pretty interesting to watch how Mr. Wall’s popularity continues to defy the odds,” said Quito Maggi, president and CEO of Mainstreet Research, which has done polling in the province.

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BHP Billiton Ltd still likes giant Saskatchewan potash project, but not in any hurry to develop – by Peter Koven (National Post – February 24, 2016)

http://business.financialpost.com/

The world’s biggest mining company says it is still keen to build the world’s biggest potash mine, despite a severe bear market in the crop nutrient. But it sure doesn’t seem to be in a hurry.

Andrew Mackenzie, BHP Billiton Ltd.’s chief executive, told investors on Tuesday that he doesn’t expect the potash market to make a serious recovery until the early 2020s. “It’s a long way off,” he said on a conference call to discuss half-year earnings.

Melbourne, Australia-based BHP is in the midst of a US$2.6-billion investment to build production shafts at its Jansen project in Saskatchewan. Jansen would be a game-changer in the industry, as BHP is aiming to produce eight million tonnes of potash a year, which would amount to nearly 15 per cent of global supply.

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Suppliers news: $2.6M research cluster to tackle corrosion in Saskatchewan (Northern Miner – February 17, 2016)

http://www.northernminer.com/

The Saskatoon-based non-profit International Minerals Innovation Institute (IMII) has announced a research initiative that could benefit miners in the province.

The Mining Materials Research Cluster “will examine the corrosion of materials used in mineral processing and mining equipment and its supporting infrastructure, used in Saskatchewan’s potash industry,” IMII stated in a press release.

“The high chloride conditions that exist in the industry can cause corrosion and wear to production and related equipment and infrastructure, and lead to hazards to personnel and reduced asset life.”

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Cameco posts lower earnings amid “really tough” global market: CEO – by Alex MacPherson (Saskatoon StarPhoenix – February 8, 2016)

http://thestarphoenix.com/

Five years after the Fukushima Daiichi disaster, the uranium market has not recovered as quickly as expected, forcing Cameco Corporation to “learn to live in a different paradigm,” according to its president and CEO.

“I think everybody underestimated the reaction of Japan,” Tim Gitzel said, noting that while the Japanese government abandoned its plan to phase out nuclear power entirely, its stringent regulatory regime has allowed for just three reactor restarts to date. “We thought that would happen a lot faster,” Gitzel said.

The “really tough” global market, combined with factors such as the devalued Canadian dollar, resulted in Cameco posting a $10 million, or $0.03 per share, loss in the fourth quarter, bringing its yearly earnings to $65 million, or $0.16 per share — a 65 per cent slide from the $185 million it made in 2014.

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Potash Corp. cuts dividend for first time amid lacklustre earnings – by Ian McGugan (Globe and Mail – January 29, 2016)

http://www.theglobeandmail.com/

Potash Corp. of Saskatchewan Inc. has slashed its dividend for the first time in the company’s history, highlighting the tension between generous shareholder payouts and dismal commodity prices across the resource sector.

Jochen Tilk, chief executive of the Saskatoon-based company, said in an interview that the board carefully researched alternatives before deciding on the cut, the first since the company’s initial public offering in 1989.

He said the goal was to arrive at a sustainable payout that would also protect the business’s strong balance sheet. The board ultimately decided to chop the annual dividend by 34 per cent, to $1 (U.S.) a year from $1.52.

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NEWS RELASE: The Government of Canada Invests in Mining Research

International Minerals Innovation Institute Develops a Mining Minerals Research Cluster in Collaboration with the Universities of Regina and Saskatchewan

SASKATOON, SASKATCHEWAN–(Marketwired – Jan. 28, 2016) – Western Economic Diversification Canada

The Government of Canada and the International Minerals Innovation Institute (IMII) today announced that the IMII, on behalf of its potash industry and provincial government members, has entered into research funding agreements with the University of Regina and the University of Saskatchewan. These agreements will see the development of the Mining Materials Research Cluster in Saskatchewan, which will conduct research into the corrosion of materials used in the fabrication of mineral processing and mining equipment used in Saskatchewan’s potash industry.

Under the terms of the agreements, the IMII will fund the Research Cluster for four years to a maximum of $1,200,000. It will be supported by funding from the Government of Canada through Western Economic Diversification Canada (WD), the Natural Sciences and Engineering Research Council (NSERC) and MITACS.

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Potash Corp. sues over alleged flaws in construction of $2.2-billion New Brunswick mine – by Drew Hasselback and Peter Koven (Financial Post – January 22, 2016)

http://business.financialpost.com/

Potash Corp. of Saskatchewan Inc. is suing the engineering company that built part of its $2.2 billion Picadilly mine in New Brunswick, alleging that construction flaws have resulted in the “complete failure” of a mine shaft.

The Saskatoon-based miner seeks unspecified damages from Cementation Canada Inc., which was hired in 2008 to oversee the design and construction of two 900-metre deep shafts at the mine in Penobsquis, N.B.

The timing of this suit is notable, because Potash Corp. announced on Tuesday that it is halting production in New Brunswick and laying off up to 430 workers.

Potash Corp. spokesman Randy Burton said the filing of the lawsuit and the announcement of the production suspension is just a coincidence.

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PotashCorp mine closure in Sussex was unexpected, reporter says (CBC News New Brunswick – January 20, 2016)

http://www.cbc.ca/news/canada/new-brunswick/

Mining reporter Ian McGugan says government intervention would not have stopped the layoffs

The sudden closure of the Picadilly mine operation in Sussex was unexpected even though there were signs the potash industry was in trouble, according to an industry reporter.

Potash Corporation of Saskatchewan announced on Tuesday it was indefinitely closing the Picadilly mine operation and cutting 430 jobs.

Ian McGugan, a mining industry reporter for the Globe and Mail. told Information Morning Moncton on Wednesday there may be hope for the potash industry in the next few years. McGugan says government intervention would not have stopped the layoffs.

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Potash Corp. closes N.B. mine as prices plummet, stock falls – by Ian McGugal (Globe and Mail – January 20, 2016)

http://www.theglobeandmail.com/

In a sign of just how quickly global commodity markets have deteriorated, Potash Corp. of Saskatchewan Inc. is mothballing one of its newest mines – a $2-billion New Brunswick operation that was in production for little more than a year.

The suspension of potash production at the Picadilly, N.B., mine will throw 420 to 430 people out of work. That comes on top of the permanent closing of Potash Corp.’s Penobsquis mine in November, which cost 140 contract jobs in the province.

Plummeting potash prices are mainly to blame. The crop nutrient began its swoon four years ago as weak crop prices and currency declines pinched demand. Prices also suffered from increased competition following the breakup in 2013 of a Russian-Belarussian marketing cartel that previously helped limit supply.

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Potash Corp suspends Picadilly mine in N.B., cuts 430 jobs (CBC News New Brunswick – January 19, 2016)

http://www.cbc.ca/news/canada/new-brunswick/

Saskatchewan company says mining near community of Sussex is suspended indefinitely

Potash Corporation of Saskatchewan is indefinitely suspending its Picadilly mine operation near Sussex, N.B. The move is expected to result in the loss of 420 to 430 jobs.

Mark Fracchia, the president of PCS Potash and a former general manager for the New Brunswick mine, told a news conference that the decision to suspend operations at the mine was “extremely difficult.”

“This is just a very sad day for all of us. Most of all to the people who have given us so many years of loyal service, for the community of Sussex, for the province generally and certainly for all of us at PotashCorp,” Fracchia told reporters.

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NEWS RELEASE: Uranium stocks: How the Athabasca Basin is shaping up in 2016 – by Tommy Humphreys and James Kwantes (Ceo.ca – January 11, 2016)

http://ceo.ca/

The best way to make money as a mining investor is by owning a company that has exploration success, or being on the right side of commodity price moves.

Last year, NexGen Energy (NXE-TSXV) delivered us 95% share price increases thanks to their Athabasca Basin uranium discovery, Arrow. But we’re holding out for a bigger move. We believe Arrow will get larger through exploration, and that the uranium sector is staged for a substantial recovery.

The sector has struggled since the Fukushima nuclear catastrophe of 2011, but change is finally in the air. Japan is restarting some of its reactors and global nuclear power generation is expected to eclipse pre-Fukushima highs within the next two years, according to Forbes.

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“New awakening” in Indigenous engagement – by Ella Myers (Northern Ontario Business – January 11,2016)

http://www.northernontariobusiness.com/

Sean Willy brings a unique perspective to his role as director of corporate responsibility for the uranium producing Canadian Mining and Energy Corporation (Cameco).

Willy was raised in the Northwest Territories and Saskatchewan, and belongs to the Metis Nation of NWT.

He runs the Saskatchewan-based Cameco’s Aboriginal engagement program, bringing personal and professional insight to his role, which he presented at a Goodman School of Mines lecture.

The school’s Nicole Tardif said Willy was brought to Sudbury to share Cameco’s years of experience building strong, mutually beneficial relationships with Indigenous populations in northern Saskatchewan with local academia and industry.

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[Northern Saskatchewan] Gunnar mine tailings cleanup project underway – by Alex MacPherson (Saskatoon StarPhoenix – January 8, 2016)

http://thestarphoenix.com/

After getting the go-ahead from Canada’s nuclear watchdog, the Saskatchewan Research Council (SRC) has begun the process of cleaning up 4.4 million tonnes of radioactive tailings at a derelict uranium mine in northern Saskatchewan.

In November, the Canadian Nuclear Safety Commission (CNSC) approved part of SRC’s quarter-billion-dollar plan to “remediate” the Gunnar uranium mine, which was abandoned in 1964 with virtually no cleanup work.

Now, SRC is seeking a consultant to develop a detailed project plan for covering the tailings deposits with a at least 0.6 metres of earth or aggregate.

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Fission Uranium nears landmark $82-million investment from state-owned Chinese giant CGN Mining Company Ltd – Peter Koven (National Post – December 22, 2015)

http://business.financialpost.com/

Fission Uranium Corp. is closing in on a landmark deal with a Chinese company that would represent China’s first direct investment into a Canadian uranium firm.

Fission and state-owned CGN Mining Company Ltd. have signed a letter of intent for CGN to acquire a 19.9 per cent stake in Fission for $82.2 million. The two sides also plan to enter an offtake agreement in which CGN would buy uranium output from Fission’s Patterson Lake South (PLS) property in Saskatchewan.

Companies often sign letters of intent that never turn into firm deals, but Fission chief executive Dev Randhawa said it is “highly likely” this transaction will close next month. CGN announced the deal publicly on Monday, and it put the money in trust with Fission’s lawyers, he added.

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PotashCorp, Canpotex optimistic, despite potash price drop – by Bruce Johnstone (Regina Leader-Post – December 6, 2015)

http://leaderpost.com/

With last week’s meeting of OPEC in Vienna, market watchers are watching Saudi Arabia — OPEC’s leader and one of the world’s largest producers of oil — to see if oil prices continue to fall.

But another commodity with importance to Saskatchewan has also seen some price slippage recently — potash. While not as sharp as oil’s plunge, potash prices have fallen US$15 per tonne to US$282 per tonne from US$297 since March.

Some commentators suggest that Canpotex, the offshore marketing agency for Saskatchewan’s three major potash producers, is like the OPEC of potash and PotashCorp its Saudi Arabia.

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