Vale – Page 57 – Republic of Mining

Vale steels itself for changing times – by Joe Leahy (Financial Times – June 3, 2014)

June 3, 2014

http://www.ft.com/home/us

The helicopter circles over a range of verdant mountains in the Carajás National Forest, a park in Brazil’s Amazonian state of Pará.

In spite of the thick jungle on their lower slopes, some of the peaks are strangely bare. This is a clue as to what lies below the surface – a giant iron ore body known by miners as Carajás Serra Sul S11D, which decodes as Carajás southern mountain range iron ore body 11, block D.

The discovery is so large it will boost the production of Brazilian miner Vale, the world’s second-largest iron ore miner by volume, by nearly a third after it comes on-stream in 2016 compared with the company’s expected production this year of 312m tonnes. Vale claims it is the largest such project in the iron ore industry.

“We are flying above the S11D,” says Jamil Sebe, Vale’s director of northern region ferrous metal projects, above the noise of the helicopter rotors. “Where you have iron, you don’t get trees, that’s one of the ways to discover iron ore.”
Conceived during the commodity supercycle of the past decade, the $20bn project to develop S11D comes as the environment for the industry is changing radically.

Iron ore prices in May suffered their sixth monthly consecutive drop, marking a record losing streak for the steelmaking ingredient.

TWO MINING BEHEMOTHS BATTLE AN ISRAELI BILLIONAIRE – by Patrick Radden Keefe (The New Yorker – June 2, 2014)

June 3, 2014

http://www.newyorker.com/

One day in November, 2008, two rival groups of mining executives convened for a meeting in a black office tower on the southern tip of Manhattan. They represented two of the largest mining companies in the world: Brazil’s Vale, and its Anglo-Australian competitor, Rio Tinto. Vale was interested in acquiring a stake in one of Rio Tinto’s most prized projects: a mountain range in the tiny west African nation of Guinea, which contained the planet’s richest deposit of untapped iron ore and was known as Simandou.

When they met that day, executives from Rio Tinto acknowledged that their legal claim to Simandou was under threat. In the summer of 2008, the government of Guinea had rescinded its right to develop the concession, and a new player had emerged on the scene: an Israeli billionaire named Beny Steinmetz, who had made his name in the diamond trade and now had designs on Simandou.

The negotiations between Vale and Rio Tinto eventually fell apart, but Rio Tinto’s concerns turned out to be well founded. Guinea granted Steinmetz’s company, B.S.G.R., exploration rights to half of the Simandou deposit. Then, in 2010, B.S.G.R. announced that it was forming a joint venture to develop the ore—with Vale. The leadership at Rio Tinto was incensed: not only had they lost half of their precious asset to Steinmetz but he had then gone into business with their chief competitor, with whom they had only recently been negotiating a joint venture themselves.

UPDATE 1-New Caledonia allows conditional restart of Vale nickel mine – by Cecile Lefort (Reuters U.S. – June 1, 2014)

June 2, 2014

http://www.reuters.com/

SYDNEY, June 2 (Reuters) – New Caledonia authorities said on Monday they have authorised a conditional restart of Brazil-based Vale’s nickel operations, which were suspended more than three weeks ago after acid-tainted effluent spilled into a river.

The leak sparked violent riots by young Melanesians that caused more than $20 million in damage to buildings, equipment and vehicles and left three policemen with gunshot wounds.

Police remained on alert as protesters maintained a presence near the plant. “The situation is calm and some (protesters) are still camping near the plant,” said a local government spokeswoman.

Some protesters, who have been frustrated by the lack of response from indigenous Kanak chiefs to the chemical spill, are seeking the permanent closure of the mine – something Vale said last week was not on the table. Vale could not immediately be reached for comment on when production would restart.

The Southern Province of the French-administered Pacific island noted it was Vale’s sixth major incident at the $6 billion Goro site and set hightened safety standards as a condition of the mine operations resuming.

Indonesian export ban not a hangup for Vale N.L. – by Ashley Fitzpatrick (St. John’s Telegram – May 30, 2014)

May 30, 2014

http://www.thetelegram.com/

Long Harbour first nickel expected by end of second quarter

A ban by Indonesia on the export of unprocessed ores containing nickel will not affect the startup of Vale’s new hydromet processing facility in Long Harbour.

As previously reported, the plan for the facility in Newfoundland and Labrador is to use nickel matte from Indonesia during startup, before transitioning to ore from the Voisey’s Bay mine in Labrador as a main feed. Workers inspect equipment at Vale’s hydromet nickle processing facility in Long Harbour. — Telegram file photo

The Indonesian nickel matte, at about 78 per cent nickel, is considered less likely to cause difficulties for the Long Harbour commissioning in comparison to the material from Voisey’s Bay, at about 20 per cent nickel, as individual parts of the multibillion-dollar plant are checked and made ready for regular use.

According to Vale’s vice-president of corporate affairs in Toronto, Cory McPhee, the mining giant has been conscious of the potential for the ban on raw exports from Indonesia for years, as the company has multiple processing facilities in that country.

“The Indonesian restrictions on exports of unprocessed ore were first signaled by the Indonesian government years ago with the 2009 Mining Law which included stipulations calling for value-added domestic processing,” McPhee said in an emailed response to questions Thursday.

COLUMN-Goro nickel project is not just Vale’s problem now – by Andy Holm (Reuters India – May 29, 2014)

May 30, 2014

http://in.reuters.com/

The opinions expressed here are those of the author, a columnist for Reuters. May 29 (Reuters) – It’s hard not to have a grudging respect for Brazil’s Vale when it comes to the company’s Goro nickel project in New Caledonia. Others would surely have walked away from what must be one of the most problematic start-ups in the history of base metals.

Over-budget and years late even before the plant was first switched on in 2010, it has since been plagued by technical set-backs, unscheduled closures and, now, violent attack by locals. Vale has remained commendably undaunted throughout.

Yet each new start has swiftly been followed by new adversity. Even rebranding the operation as Vale New Caledonia (VNC), that tried-and-tested corporate exercise in drawing a line under historical problems, hasn’t worked.

Goro, using the relatively new high-pressure-acid-leach (HPAL) technology, continues to defy Vale’s boundless optimism and to drain money from its bottom line.

Until Jan. 12 this year it was, however, just Vale’s problem. But in the wake of the Indonesian nickel ore ban that kicked in on that date, Goro risks becoming a bigger problem for the entire nickel market.

Vale sounds new cautionary note on possibility smelter and refinery will remain open beyond 2015 – by John Barker (Thompson Citizen – May 29, 2014)

May 30, 2014

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

Pending federal sulphur dioxide (SO2) emission standards issues remain, as do questions over availability of nickel sulphide concentrate feed

“On the business side of things, the often talked about last year $100-million challenge, was, we have to say, a roaring success,” Mark Scott, general manager of mining and milling for Vale’s Manitoba Operations, told about 30 members and guests at the Thompson Chamber of Commerce’s weekly luncheon May 28, as he delivered a presentation entitled, “Standing on our own Two Feet.”

At the same time, however, Scott sounded a new cautionary note on the possibility of the smelter and refinery remaining open beyond next year, saying the “base case remains” that they both “will close at some point in 2015.”

Pending federal sulphur dioxide (SO2) emission standards issues remain, as do questions over availability of nickel sulphide concentrate feed, he said. The announcement that the smelter and refinery would close was originally made on Nov. 17, 2010, with Vale saying at the time it was “phasing out of smelting and refining by 2015” in Thompson.

COMMENT: Riots at Goro cause $30M in damage – by Marilyn Scales (Canadian Mining Journal – May 28, 2014)

May 30, 2014

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

It appears that Vale SA has run into a spot of trouble at the Goro laterite nickel mine in New Caledonia. Turns out it was a rather large spot that will take $30 million to repair.

Following a 10,000-litre acid spill that ran into a nearby creek and killed thousands of fish earlier this month, Vale was ordered to suspend operations. This is reportedly the fifth such spill in as many years. The first spill occurred during plant commissioning in 2009. It was a reported 40,000 litres, 2,500 of which found its way into the local river.

The recent riots were sparked when local youths protested the reopening of the plant, even with the promise of more stringent safety precautions. There are many who would like to see the project permanently shuttered. Over 48 hours, activists torched vehicles, equipment and buildings at the mine site. They blockaded the roads near the mine, reportedly using mining equipment including excavators to keep the police at bay.

Vale shutdown period in Sudbury ends this week – by Carol Mulligan (Sudbury Star – May 28, 2014)

May 28, 2014

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

Smoke will be pluming again out of the 381-metre Superstack at Vale’s Copper Cliff Smelter Complex when the 2014 planned maintenance period ends Thursday. After three weeks of being shut down, production will resume with feedback at the smelter’s two furnaces.

Instead of annual shutdowns for maintenance as occurred for decades, the nickel giant now schedules maintenance periods every 18 months.

This year, the planned maintenance period for Vale’s surface plants — its mill, smelter and refinery — began the week of May 5 and is the final stages of completion, company spokeswoman Angie Robson said. Planned maintenance periods for the company’s Sudbury mines will be staggered throughout the spring and summer.

Robson said there is considerable economic benefit to the community during these maintenance periods because several local mining supply and service companies are involved in the work. During planned maintenance periods in surface plants, as many as 1,200 workers are typically employed.

Protesters burn vehicles, buildings at New Caledonia nickel mine – by Cecile Lefort and Melanie Burton (Reuters U.S. – May 26, 2014)

May 27, 2014

http://www.reuters.com/

SYDNEY – (Reuters) – Dozens of protesters caused tens of millions of dollars in damage to vehicles, equipment and buildings at Vale’s nickel mining site in New Caledonia, as anger boiled over at a chemical spill into a local river.

The $6 billion Vale plant at Goro in southern New Caledonia was closed earlier this month after some 100,000 liters of acid-tainted effluent spilled, killing about 1,000 fish and sparking protests at the mine site.

The Vale plant had been expected to produce about 40,000 metric tons of nickel this year, out of global supply of around 2 million metric tons. But it has been beset by problems in recent years, including several chemical spills and violent protests.

Tensions between the local population and Brazil-based Vale escalated over the weekend with young protesters frustrated at the latest spill by the Brazilian-based giant and a lack of response from indigenous Kanak chiefs, according to local media reports. Television footage showed images of burnt mining vehicles and equipment.

“There was damage at the site, but no damage to the plant. We had burned vehicles, one administration building was damaged, but no damage to the plant itself,” Vale spokesman Corey McPhee told Reuters.

NEWS RELEASE: Cue the third annual Vale Sudbury concert series

May 21, 2014

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Vale aims to launch its third annual Vale Concert Series on the right note this evening with East Coast blues singer and song writer Charlie A’Court as the featured performer. This is the first of five monthly concerts from May to September being held at the Grace Hartman Amphitheatre near Ramsey Lake. The start time for all events is 7 p.m. and while admission is free, donations to the Sudbury Food Bank are welcomed.

Vale announced the 2014 musical series on a high note with a $50,000 donation to the Sudbury Food Bank. Over the past two summers, the Vale Concert Series has raised $32,000 for the local food bank and collected more than 2,200 pounds of food.

The series also promotes Canadian musical culture by bringing a diverse range of musical talent to perform live for audiences in Sudbury. “Vale is proud to host what is quickly becoming a great tradition in our community and we sincerely hope that members of the community come out again to enjoy these amazing concerts,” said Kelly Strong, Vice President of Vale’s Ontario & U.K. Operations.

“Since beginning the Vale Concert Series two years ago, we have been amazed at the generosity of the people in our community who come out to enjoy the concerts,” said Mr. Strong, “We thought it was appropriate to show Vale’s continued support through this $50,000 donation, which will help the Sudbury Food Bank operate and feed more than 17,000 people a month in Greater Sudbury.”

In The Amazon, A New Mining Frontier For Iron Ore – by Marina Amaral (Huffington Post/Angencia Publica – March 4, 2014)

May 16, 2014

http://www.huffingtonpost.com/theworldpost/

Meet Canaã dos Carajás, the new frontier of iron ore mining. It’s in the South of Brazil’s Para, where jobs and mining royalties did not bring as much progress as expected.

Between 1982 and 1985, Brazil’s last military ruler, João Figueiredo, settled 1,551 families through colonization projects around the mining area of the Carajás Forest, in the south of Para state in the Amazon. The project to exploit the world’s biggest high-grade iron ore, discovered in 1967, started to get momentum after the first mine in Serra de Carajás (Carajas Hills) was opened. Today it is a complex that produces about $13 billion worth of iron ore per year, most of which is exported.

The early settlers, however, had no idea that they were going to live on top of the “biggest project ever” of Vale — the world’s second mining corporation.

The goal of the military government was to reduce land conflicts in the Bico de Papagaio (“Parrot’s Beak”) region. The region was the center of the Araguaia guerrilla in the 1970s and is mainly situated around reserves holding an estimated 18 billion tons of iron ore, as well as deposits of manganese, copper, nickel, and gold.

Today, Vale digs 110 million tons of iron ore from the North Hills of Carajás. With the new project, called S11D, the company aims to double the production by exploring the South Hills of Serra dos Carajás until 2016.

Vale could keep smelter and refinery open until 2019 – John Barker (Thompson Citizen – May 14, 2014)

May 15, 2014

‘Vale will continue to invest in Thompson without a strategic partner,’ spokesman says

Vale Canada Limited’s Manitoba Operations has a green light from federal environmental officials on keeping its Thompson smelter and refinery open until the end of 2015.

Pending new federal sulphur dioxide (SO2) emission standards, pursuant to The Canada-Wide Acid Rain Strategy for Post-2000, set to come into effect in 2015, could have required a reduction in airborne emissions of approximately 88 per cent from current levels at the Thompson operation.

The Canada-Wide Acid Rain Strategy for Post-2000 was agreed to in 1998 by federal, provincial and territorial ministers of energy and environment to fulfill an earlier commitment in their 1994 “Statement of Intent on Long-Term Acid Rain Management in Canada,” which in turn built on the 1985 Eastern Canada Acid Rain Program.

Vale N.L. not ordered to hold back waste – by Ashley Fitzpatrick (St. John’s Telegram – May 8, 2014)

May 9, 2014

http://www.thetelegram.com/

Former Environment Canada officer details slow response to failed tests

Environment Canada officer Ron Hunter was kept informed as, repeatedly, samples of treated liquid waste from Vale Newfoundland and Labrador’s mine site at Voisey’s Bay failed a key environmental safety test in October 2011.

According to the now-retired officer’s testimony, during a day of trial at provincial court in St. John’s Wednesday, it took the better part of the month and a third failed test before he felt the need to give formal direction to the company about the discharge of the waste into nearby Anaktalak Bay, on the Labrador coast.

Release of treated mine waste into the waters is permitted, but only with regular testing showing it remains within specific parameters, for the protection of the environment.

During Hunter’s testimony, a reference was made to a “final discharge point monthly summary,” stating a total volume of waste released into the bay during the month in question was 492,337 cubic metres — enough to fill 197 Olympic-size swimming pools.

The Telegram has yet to see that document.

Anglo May Sell Brazil Nickel Unit to Vale, Deutsche Bank Says – by Firat Kayakiran (Bloomberg News – May 8, 2014)

May 9, 2014

http://www.bloomberg.com/

Anglo American Plc (AAL), which is reviewing assets globally as it tries to return to profit, may offer its Brazilian nickel unit to the nation’s largest miner Vale SA as metal prices increase, Deutsche Bank AG said.

Nickel will probably peak at $27,000 a metric ton in 2017, Deutsche analysts Rob Clifford, Anna Mulholland and Paul Young wrote in a report dated yesterday, raising the bank’s forecast of $20,000 a ton in 2018. The metal has surged 40 percent in London trading this year after leading global miner Indonesia barred exports of raw ores in January.

Anglo’s Barro Alto unit, which missed its target of an annual capacity of 36,000 tons at the end of 2012 because of setbacks at its two furnaces, said last month it aims to reach the mark by 2016. It plans to fix one of the furnaces this year and the second one in 2015. The mine produced 25,100 tons of nickel last year, Anglo said in February.

“We would suspect that Vale, having undertaken a similar rebuild program at its Onca Puma, could be interested in acquiring the Barro Alto operations and may consider taking on the assets prior to the completion of any refurbishment program if that were to be reflected in the price,” the Deutsche analysts said in the report.

Nickel soars to two-year high on Goro mine halt, shortages – by Eric Onstad and Harpreet Bhal (Globe and Mail – May 9, 2014)

May 9, 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.

LONDON — Reuters – Nickel raced to its strongest level in more than two years on Thursday as industrial consumers scrambled to secure supplies and speculators extended their buying spree after Vale halted its Goro nickel operations in New Caledonia.

Though the Goro shutdown was not expected to have a major impact on physical nickel supplies, it served to fire up bullish sentiment and chart-based purchases.

The nickel market, which has soared nearly 40 per cent this year, was already nervous about shortfalls from top producer Indonesia and worried about potential Russian supply problems.

“Today we’ve seen some panicked consumer hedging and the hedge funds have already been in there for a while,” said analyst David Wilson at Citi in London.

Three-month nickel on the London Metal Exchange (LME) surged 6.1 per cent to a high of $19,786 a tonne, the strongest since March 2, 2012. It later retreated to $19,451 a tonne at 1421 GMT, up 4 per cent from Wednesday’s close, with trading volumes of over 10,700 lots compared with Wednesday’s full-day volume of 5,121.