Twitter

Saskatchewan Mining

SPECIAL REPORT: Evangelist Len Lindstrom’s African gold mining venture fails – by Geoff Leo (CBC News Saskatchewan – October 09, 2014)

http://www.cbc.ca/news/canada/saskatchewan

700 Canadians, including Saskatoon’s Dean Britton, lose money in ‘God’s business’

A Saskatoon man who invested his life savings in an African gold mining company run by a globe-trotting Canadian televangelist is worried the entire project may have collapsed.

Dean Britton said for the past several years, evangelist-turned-CEO Len Lindstrom has virtually cut off contact with many of the 700 Canadians who invested at least $18 million in Liberty International Mineral Corporation.

And so Britton has taken it upon himself to research the company and communicate with as many of Lindstrom’s investors as possible. “He is such an expert at only telling his half of the story,” Britton said of Lindstrom. “I’m going to show the other half.”

Mining venture seemed like ‘God’s business’

A decade ago, Britton was tantalized by Lindstrom’s investment pitch of an African gold mine. Lindstrom explained he had licenced 21,000 square kilometres of potentially gold-rich land in Liberia.

Read more

Time to buy uranium? The best ways to play it – by Brenda Bouw (Globe and Mail – September 29, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Patience could finally start to pay off for investors waiting for a revival of the uranium market that imploded in the aftermath of Japan’s nuclear disaster in 2011.

After the spot price hit a nine-year low of $28 (U.S.) this spring on oversupply concerns, dragging uranium equities down with it, many investors believe the commodity used to fuel nuclear power plants has finally hit bottom, as the demand picture brightens.

The price has risen about 30 per cent in recent weeks, to $36.50, driven by additional U.S. and European sanctions against Russia, a major uranium supplier, in its conflict with Ukraine. That threatens to put pressure on the global uranium supply, alongside a recent two-week strike at Cameco Corp.’s McArthur River and Key Lake operations in Saskatchewan.

Meantime, Japan is readying the restart of its nuclear program, while China continues its aggressive nuclear plant build-out as part of its strategy to cut pollution by developing cleaner energy sources.

“I think the worst is behind us in the uranium space,” said BMO Nesbitt Burns analyst Edward Sterck. While he doesn’t expect a big rally in uranium and is neutral on the overall sector right now, Mr. Sterck sees investors slowly returning to the space.

Read more

Canada’s small fertilizer companies shuffle ranks, search for capital – by Rod Nickel (Reuters India – September 17, 2014)

http://in.reuters.com/

(Reuters) – Capital-strapped small fertilizer companies in Canada are shuffling their senior executive ranks to draw investors in a period of weak prices.

Stonegate Agricom Ltd, which is developing a phosphate mine in Idaho, said on Tuesday that Chief Executive Mark Ashcroft resigned, the latest change at the top among small players in the sector. Others that have installed new senior executives this year include Canada’s Arianne Phosphate and Karnalyte Resources Inc.

Fertilizer values are rising off the floor prices reached earlier this year, but their upside looks limited, Rabobank said in a report on Monday.

Stonegate’s parting with its CEO was mutual, said co-chairman Ian McDonald, who will carry out CEO duties on an interim basis with co-chairman Kerry Knoll. He declined to give further details.

“Nobody’s having any parties, because nobody’s happy, but there’s been no pressure here based on Mark’s performance,” McDonald said.

Stonegate shares dropped 3 Canadian cents, or about 19 percent, to 13 cents in Toronto. For the year, the stock is down nearly one-third.

Read more

Northern companies establish Saskatchewan mining presence – by Lindsay Kelly (Northern Ontario Business – September 16, 2014)

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.

It was during a trip to Toronto about a year ago that Wayne Ablitt and Don Croteau realized they were both thinking of expanding into Western Canada with their respective companies, Jannatec Technologies and Schauenburg Industries Ltd. But with expansion comes considerable expense, not to mention the challenges of breaking into a new market.

“We stopped and looked at each other and said, ‘Why not do something together rather than duplicate things?’” recalled Croteau, managing director of Schauenburg’s North Bay office.

So Croteau and Ablitt devised a plan to bring the two companies together, sharing costs and resources, and a year later, D3 Mining Solutions is ready to debut from its Saskatoon office.

Joining the partnership are suppliers Porcupine Canvas out of Timmins and Maslack Supply out of Sudbury, along with a Winnipeg-based dome manufacturer. The companies will retain their individual identities and home locations, but will operate in Saskatchewan together under the umbrella company D3 Mining Solutions.

Read more

Allan potash mine: All trapped workers returned to surface, some ‘grouchy and hungry’ (CBC News Saskatoon – September 11, 2014)


 

http://www.cbc.ca/news/canada/saskatoon

All miners returned to surface, some after more than 24 hours underground

Miners who spent some 24 hours trapped underground at PotashCorp’s Allan mine east of Saskatoon have made their way to the surface, after a fire forced dozens of workers to seek shelter in safety stations on Wednesday.

Around 8:30 p.m. CST Thursday, the last three workers who were in safe spaces below ground were up and out. Earlier in the day, 51 of their co-workers returned to the surface.

A union leader said he was able to speak to some of the workers who were brought up and reported they were safe, but some were “grouchy and hungry”. Mike Belyk was one of the workers who returned to the surface Thursday afternoon.

“[I’m] just relieved to be back up, to get home see your family,” he said. “Other than that it wasn’t too, too bad.” Belyk said miners were in contact with rescue teams and people found ways to pass the time. “We had communication. Played cards. Played a lot of cards.”

Read more

Potash Corp. Veteran Challenges Uralkali With Russian Mines – by Yuliya Fedorinova (Bloomberg News – September 8, 2014)

http://www.bloomberg.com/

OAO EuroChem, a Russian fertilizer maker building $7.4 billion of potash projects, is gearing up to challenge the dominance of OAO Uralkali with production from its two mines reaching the market in five years.

“We expect we’ll be able to mine the first potash at both mines in late 2017,” Clark Bailey, EuroChem’s mining head, said in an interview. About two more years will be needed to start shipments to external customers, he said.

EuroChem is developing an annual capacity of 8.3 million metric tons of potash, a form of potassium that strengthens plant roots, in two phases at the Verkhnekamskoe deposit in the Perm region and in another two at the Gremyachinskoe deposit in the Volgograd region in western Russia. The company controlled by billionaire Andrey Melnichenko kept its pace even as Uralkali plunged the $20 billion market into turmoil in July last year by ending a marketing venture with Belarus that accounted for 40 percent of worldwide potash exports.

EuroChem, which already produces nitrogen and phosphate nutrients, plans to consume a portion of the potash itself to boost its output of complex fertilizers. Even as it bets on cost advantages such as proximity to a port to take on market leaders, the key to EuroChem’s success in potash could lie in the efficiency of suppliers such as K+S AG (SDF), Europe’s largest.

“While EuroChem’s projects are the only ones at an advanced stage in the industry globally, they’re more likely to take market share from high-cost producers like K+S than from low-cost producers like Uralkali,” ZAO Raiffeisenbank analyst Konstantin Yuminov said by phone.

Read more

Potash miners face over-supply threat of their own making – by Rod Nickel (Reuters U.S. – September 4, 2014)

http://www.reuters.com/

WINNIPEG Manitoba – (Reuters) – A pickup in fertilizer demand has brightened the outlook for North American potash companies who suffered through plunging prices and profits after a European trading consortium collapsed in 2013.

But any celebration among investors may be premature.

A surplus of potash mining capacity is set to grow even larger in coming years, weighing down the global industry while favoring low-cost eastern European producers over North American miners, who are sticking to a marketing strategy that risks falling behind the times.

And the times are changing. Belarusian Potash Company (BPC), the counterpart to North America’s potash trading consortium Canpotex Ltd, collapsed a year ago, with one partner looking to increase volumes rather than limit output and hope for higher prices.

The first new mines in Western Canada in four decades are also under construction and would be fierce rivals to Canpotex partners Potash Corp of Saskatchewan, Mosaic Co and Agrium Inc.

This year, global capacity will hit 82 million tonnes, but demand will fall well short, even at a record-high level of 57 million tonnes, according to London-based commodity research firm CRU. That gap is set to widen slightly by 2020, when capacity looks to reach 99 million tonnes, far more than is needed to meet demand of only 73 million.

CRU’s demand forecast is based on an assumption that demand will grow faster than it has in the last seven years. If it does not, the supply-demand gulf will grow even wider.

Read more

Tough conditions for cleanup 50 years later of former Saskatchewan uranium mill – by Rob Drinkwater (Lethbridge Herald – August 31, 2014)

http://lethbridgeherald.com/

Edmonton – CANADIAN PRESS – More than 50 years after a Saskatchewan uranium mill that is a key part of Canada’s nuclear history closed, heavy machinery is once again rumbling across the remote northern corner of the province.

But this time workers at the former Lorado mill are cleaning up a massive pile of radioactive, acidic tailings that has poisoned a lake and threatened the health of wildlife and hunters for decades.

“I think we’re a lot more environmentally aware than we were 40 or 50 years ago,” said Ian Wilson with the Saskatchewan Research Council, which is the Crown-owned company that’s carrying out the cleanup.

The Lorado mill is near Uranium City, less than 50 kilometres from the Northwest Territories boundary. It’s where uranium mining once supported a community of up to 5,000 people.

The Canadian Nuclear Safety Commission says the town was one of several in Canada to rise following the Second World War and during a boom in uranium demand that was driven by military needs.

Read more

After 33 years, uranium riches finally in sight for Cameco at Cigar Lake – by Peter Koven (National Post – September 2, 2014)

The National Post is Canada’s second largest national paper.

Stepping out of the shaft and into the underground workings at Cigar Lake, it is hard to believe that anything ever went wrong here.

The Northern Saskatchewan mine looks pristine and ready to go. A massive jet boring system 480 metres below the surface has begun extracting uranium ore from the deposit by pumping water upward at supersonic speed. Other tunnels are filled with a dizzying network of storage, piping and processing infrastructure to handle the incredibly rich ore and deal with the incredibly poor ground conditions.

Along with the nearby McArthur River mine, this is easily the richest uranium operation in the world, with grades that are more than 100 times the world average. In terms of complexity, it’s roughly a million times the world average. It took 33 years of work to move Cigar Lake from discovery to production. The very fact it exists is a credit to human technology and engineering.

But until recently, it didn’t feel like such a triumph. When a crew tried to step out of that same underground shaft in February 2010, they could barely take a step.

“They found a metre of mud right through the mine. Just complete mud,” recalls Tim Gitzel, the chief executive of Cameco Corp., which built the mine and owns half of it. “They couldn’t even get the cage down because there was so much mud.”

The crew was the first one to enter the mine after a devastating flood in 2008, that that came on the heels of one in 2006. The two disasters cast a black cloud over Cameco and made a lot of people wonder if the Saskatoon-based company could ever get this mine working properly.

Read more

Nuclear watchdog requests safety checks after B.C. mine breach – by Dene Moore (CTV News/Canadian Press – August 19, 2014)

http://www.ctvnews.ca/

VANCOUVER — A toxic spill from a British Columbia mine has prompted the country’s nuclear watchdog to request a series of checks at uranium facilities. The Canadian Nuclear Safety Commission will discuss the failure of the tailings pond at the Mount Polley gold and copper mine during a meeting Wednesday.

In the interim, the commission has asked the uranium mining and milling operations it oversees to ensure that all necessary inspections and monitoring are in compliance with licence conditions.

“The recent tailings dam breach that occurred at the Mount Polley mine in British Columbia on Aug. 4, 2014, has raised awareness of issues associated with tailings impoundments,” said a letter sent to Areva Resources, Cameco Corp. , Rio Algom, Willet Green Miller, P.J. Brugger and Associates, EWL Management Ltd. and Denison Mines Inc.

“This is a reminder that vigilance must be maintained by ensuring that tailings dams continue to be properly designed, constructed, operated, maintained and monitored to prevent such occurrences.”

The companies were asked to confirm that mitigation measures are in place in the event of a tailings breach. They’re also asked to confirm the safety of tailings facilities and report any identified gaps to the commission by Sept. 15.

Read more

First Nations youth mining camp expands – by Scott Larson (Saskatoon Star Phoenix – August 8, 2014)

http://www.thestarphoenix.com/index.html

When Reneya Lemaigre arrived last year at the inaugural Mining Matters Mining Rocks Earth Sciences Camp she didn’t know anyone and didn’t know what to expect.

But it didn’t take long for the teenager from Clearwater River Dene Nation to shrug off her fears and have a great time at Christopher Lake’s The Quest camp.

“The staff were really nice and comforted me,” Reneya said. “After the first day I was fine for the rest of the week.” “She started meeting new friends and when the day came for her to go home, she didn’t want to go,” added her mother, Rana Janvier.

The pair are once again making the six-hour drive this weekend from Clearwater River to Christopher Lake to attend the mining camp that will have about 30 teens attend this year.

The camp is put on with the sponsorship of six junior mining companies – Foran Mining Corp., Masuparia Gold Corp., NexGen Energy Inc., Alpha Exploration Inc., Fission Uranium Corp. and North Arrow Minerals – and PDAC Mining Matters. “The program is expanding,” said Barbara Green Parker, PDAC’s manager of Aboriginal Education and Outreach Programs.

They had 18 kids attend last year and expect about 30 this year – from Amisk (Denare Beach), Pelican Narrows, Buffalo Narrows, Clearwater River Dene Nation and Deschambault.

Read more

Group calls for government inspections of Sask. mine ponds (CBC News Saskatchewan – August 07, 2014)

http://www.cbc.ca/news/canada/saskatchewan

Mining companies currently hire independent consultants and present those reports to government

On the heels of one the the worst spill disasters in Canadian history, some people in Saskatchewan are worried about how this province protects and regulates tailings ponds.

It comes after the Mount Polley Mine tailings pond wall collapsed in B.C. Water, contaminated from years of mining, is flowing into nearby lakes and rivers.

In Saskatchewan, mining companies hire consultants for tailings pond inspections. Those reports are passed on to the Ministry of Environment for review.

Peter Prebble of the Saskatchewan Environmental Society said he would prefer the government do its own inspections of the tailings ponds and not rely solely on the company’s reports.

“There’s been a real tendency in Saskatchewan to encourage self regulation by companies, in other words, to encourage them to take more responsibility for ensuring that regulations are met. I’m worried that we’re moving too far in that direction,” he said.

In B.C., a total of 10 billion litres of water and 4.5 million cubic metres of metal-laden sand has leaked out of the tailings ponds.

Read more

Manitoba looks to jump into potash industry, develop mine (CBC News Manitoba – July 23, 2014)

http://www.cbc.ca/news/canada/manitoba

The Manitoba government is hoping to develop a significant potash deposit in the western part of the province near Russell, Man. Chris Radford, Mayor of Russell, said having the potash industry present would be great for his community.

“Well this would be fantastic news for our area,” said Radford. “It’s something that obviously we’ve been looking forward to for a long time. There have been a lot of times that they have talked about this in the past and we certainly hope that this time things will be able to move forward.”

The province-owned Manitoba Potash Corporation has acquired the rights to a vast deposit of the mineral, used as a key ingredient in fertilizer. It has bundled together the mineral rights to much of the potash in the province.

The next step will be to ask major players in the industry to do a feasibility study on developing a mine, said Manitoba’s Minister of Mineral Resources Dave Chomiak

“We’ve gone to the market and asked people to look at it and see if they are interested in doing a feasibility, which if proved positive, would lead to a potash development,” he said.

Chomiak said It could take up to a decade to develop a potash mine, but it could generate as many as 600 jobs and provide hundreds of millions of dollars in royalties for the province.

Read more

UPDATE 2-Potash Corp boosts outlook as profit tops expectations – by Rod Nickel (Reuters U.S. – July 25, 2014)

http://www.reuters.com/

(Reuters) – Potash Corp of Saskatchewan raised its full-year earnings outlook on Thursday after second-quarter profit fell less than expected due to improving global fertilizer demand.

Earnings have declined year over year for four straight quarters as the price of the crop nutrient hit a six-year low earlier this year. The breakup last year of global trading partnership Belarusian Potash Co accelerated the price slide, as it created more competition among producers.

Lower prices have recently rekindled demand, however, and cost-cutting has also improved Potash Corp’s bottom line.

Shares of Potash Corp jumped 4 percent to $37.62 in premarket trading. “The key question is, ‘Is this just pent-up (potash) demand finally being satisfied, or is it going to continue into 2015,'” said Peter Prattas, analyst at Cantor Fitzgerald. “Our view is that demand has room to increase slightly in 2015, but we’re not going to continue with the momentum we’ve had to start the year.”

The company said it has a strong potash order book from U.S. buyers for the second half, and Canpotex Ltd – its offshore trading partnership with Mosaic Co and Agrium Inc – is fully committed through the third quarter.

Read more

Market leadership CEO’s goal – by Scott Larson (Regina Leader-Post – July 14, 2014)

http://www.leaderpost.com/index.html

Plans to maintain, expand status

THE STARPHOENIX – Jochen Tilk is beginning to settle into his new role as president and CEO of Potash Corporation of Saskatchewan, the largest fertilizer company in the world.

The 50-year-old has been on the job just a week after taking over from the retiring Bill Doyle, who spent the last 15 years as CEO and president overseeing the massive growth of the company.

Tilk has 30 years of experience in mining, most recently as president and CEO of Inmet Mining, a Canadian company with global operations. He now takes over the reins of a company in a sector that has weathered a few rough years.

Last July, the $20-billion global potash market was rocked when industry giant OAO Uralkali, the Russian half of BPC, split with its Belarusian partner, sending potash prices down 25 per cent.

This year, PotashCorp laid off 1,045 employees, or almost 20 per cent of its workforce. Tilk spoke to The Star-Phoenix about his goals and expectations for Potash-Corp. What follows is an edited version of that conversation.

Read more