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Vale workers rescued from rooftop: Final update – by Carol Mulligan (Sudbury Star – August 29, 2013)

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

Two employees working on a roof had to be rescued and were taken to hospital for examination, but there were no injuries after a $2-million fire broke out at Vale’s Clarabelle Mill on Wednesday at 9:15 a.m.

Thirty firefighters from five downtown stations responded in 10 vehicles and, in about 90 minutes, contained a fire that was belching black smoke into the area, said a fire official.

Leo Frappier, senior public safety officer with Greater Sudbury Fire Services, said at 11 a.m. the fire had been downgraded from a Level 2 to a Level 1, and was contained to the building. A Level 2 fire is one in which there could have been “contaminants in the air, but there’s none,” said Frappier.

Vale spokeswoman Angie Robson said no one was injured and there was no threat to public safety. By mid-afternoon, Robson said the fire seemed to have been confined to one of three crushing lines at the mill, so the impact on production was expected to be minimal.

The cause of the fire was unknown, she said, and there was no estimate of damage.

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Potash Collapse Signals Buy Not Build for Vale: Corporate Brazil – by Juan Pablo Spinetto (Bloomberg News – August 26, 2013)

http://www.bloomberg.com/

Turmoil in the global potash market is creating an opportunity for Vale SA to buy assets at a discount as the mining company leads Brazil’s bid to become self-sufficient in crop nutrients.

Vale, whose output at Brazil’s only potash mine dropped for the past three years, should abandon plans for greenfield projects and consider instead purchasing existing producers or their assets, according to Stifel Nicolaus & Co. Potash companies are trading at a “great discount,” making acquisitions a cheaper option for Vale than starting from scratch, said Terence Ortslan, managing director of research firm TSO & Associates.

Vale suspended two potash projects in Argentina and Canada worth $8.9 billion in the past year as cost increases made the ventures unfeasible. Fertilizer producer shares have slumped 14 percent on average since July 30 when OAO Uralkali ended output restrictions through a venture with Belaruskali, triggering speculation prices would tumble. Their average price-to-book ratio fell to 1.69 yesterday from 2.55 at the end of last year.

“It’s tough to justify the economics of a new project at today’s pricing,” Stifel Nicolaus analyst Paul Massoud said by telephone from Washington.

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Iron ore prices moving higher as China steel production rises – by Lawrence Williams (Mineweb.com – August 15, 2013)

http://www.mineweb.com/

After a bit of a dip, iron ore prices are on the rise as Chinese steel production begins to increase again and the world’s top diversified miners will be the likely principal beneficiaries.

LONDON (MINEWEB)  – It should not have escaped anyone who follows the global mining sector’s attention that the world’s three biggest mining companies by a long way, BHP, Rio Tinto and Vale, are also the three biggest miners of high grade iron ore.

There had been much discussion of how these would fare in a Chinese downturn, given that China is by far the world’s largest importer of iron ore and there was comment that iron ore prices would fall dramatically, thus decimating the big three’s revenues and profits – exacerbated perhaps by the fact that they are all growing production with the inevitable additional costs that involves.

What the observers seemed to have failed to take into account is that China, in a recession, is still the equivalent of anyone else in a mega growth phase! Growth falling perhaps from 10% plus per annum to maybe 6 or 7% – figures western economies would give their eye teeth for!

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A Custom Fit [for Vale’s Newfoundland nickel project] – by Marianne Dupla and Dave Oliphant (Canadian Mining Journal – August 2013)

The Canadian Mining Journal is Canada’s first mining publication.

While it was rigorously testing a customized use of hydrometallurgical technology to assure commercial viability for its mammoth nickel-mining project, Vale Canada Ltd. was also testing a comprehensive effluent treatment program that incorporates new high-rate softening and clarification technology to help protect the environment.

International mining company, Vale, is nearing completion of its US$3.7-billion nickel processing plant at Long Harbour, on Newfoundland’s Placentia Bay. The Brazilian mining company’s wholly owned subsidiary, Vale Canada Limited, formerly known as Vale Inco, is directing the construction of the processing plant, which began in April 2009.

Start-up of the plant is scheduled for August 2013. Once fully operational, it is expected to annually produce 50,000 metric tons of nickel, 4,700 metric tons of copper, and 2,500 metric tons of cobalt.

The mined ore will first undergo a concentrating process at the Voisey’s Bay mine site in Labrador before it is transported by ship to the processing plant at Long Harbour. By processing ore concentrate at the plant, Vale anticipates achieving higher metal recoveries while also eliminating the time and expense of shipping to Ontario or Manitoba for refining.

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Glencore, Vale should join forces, analyst says (CBC News Sudbury – August 9, 2013)

http://www.cbc.ca/sudbury/

For an indepth radio report, click here: http://www.cbc.ca/video/news/audioplayer.html?clipid=2400108515

Merging the two mining giants will help reduce redundancies, particulary in Sudbury operations

In a search for cost cutting measures, one mining analyst says a merger between Vale and Glencore should be an option that’s considered. Brazilian mining company Vale released its second quarter results Thursday, which showed an 84 per cent drop in profits.

Base metal prices are also down across the board. Terence Ortslan, managing director with TSO and Associates, an independent mining, metals and fertilizer research firm, said combining operations could help reduce redundancies.

“I think the question is, is it going to be out of necessity, or is it going to be creative in doing things? I think the assets have to be put in a pool to see who can do better and how it’s going to be streamlined in terms of a critical path.”

Glencore recently took over Xstrata — a firm that took over Sudbury’s Falconbridge Ltd. in 2006. Sudbury residents have, for decades, heard and talked about mergers between Falconbridge and Inco Ltd., the company now known as Vale.

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Vale mulls hedge tactic – by Reuters and Star Staff (Sudbury Star – August 9, 2013)

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

As they continue to work on making their nickel operations more efficient, Vale officials say they may adopt hedge-accounting rules to smooth out the impact of currency fluctuations like those that slammed the company’s second-quarter earnings. Chief Executive Murilo Ferreira made the comments Thursday as the company discussed its second quarter results with analysts and reporters.

Under hedge accounting, companies set aside some dollar-denominated export proceeds to compensate for the impact of exchange-rate moves on the local-currency value of debt, spreading currency gains and losses over several years. The practice is allowed under the International Financial Reporting Standards of the IFRS Foundation, the accounting rule-book used by Vale.

As Brazil’s real currency has weakened, companies have seen the local currency value of dollar debts soar and the cost of servicing the debt rise. Staterun oil company Petroleo Brasileiro SA, Brazil’s largest company by revenue, last month said it had begun to use hedge accounting in May.

“We had a strong financial performance in a challenging environment,” Ferreira said in a conference call with analysts and journalists. “The financial impact of forex does not reflect our true operations.”

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Vale aims to stay competitive despite loss in profits (CBC News Sudbury – August 8, 2013)

http://www.cbc.ca/sudbury/

Totten Mine in Sudbury still on track to open and create 200 jobs

For a detailed interview with Vale spokesperson Angie Robson, click here: http://www.cbc.ca/video/news/audioplayer.html?clipid=2400029133

Mining giant Vale is reporting its worst profit decline in a decade. In its second quarter report, the company said its profit was $2.78 billion less than in the same quarter last year — and that foreign currency fluctuations are to blame.

In Sudbury, Vale spokesperson Angie Robson said local operations need to continue to focus on reducing costs while minimizing the impact on staff. She noted the company is working to continue being competitive.

“One of the things that we have happening, as an example, is we’re opening Totten Mine by the end of the year,” Robson said. “It’s our first new mine in Sudbury for more than 40 years … we have to continue to look to the future and look for new sources of ore so that we continue to create jobs and so forth.”

She noted the new mine will create about 200 jobs.

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Vale Says China Proving Pessimists Wrong on Steel Output – by Juan Pablo Spinetto (Bloomberg News – August 8, 2013)

http://www.bloomberg.com/

Vale SA (VALE), the biggest iron-ore producer, forecast a 10 percent increase in steel output this year in China, the world’s largest steelmaker. China probably will produce 780 million metric tons of steel this year compared with 683 million tons two years ago, underpinning a favorable view on the world’s largest emerging market, Chief Executive Officer Murilo Ferreira said today.

“China has once more proved the pessimists wrong,” Ferreira said during a conference call to discuss quarterly earnings. “Our view related to China continues positive.”

The shares of Vale and major rivals BHP Billiton Plc and Rio Tinto Plc (RIO) rallied today after Chinese imports climbed to the highest in 14 months and an iron-ore index reached a three-month high. The Rio de Janeiro-based company’s shares are down 27 percent this year after a slowdown in commodities demand and rising costs crimped miners’ earnings.

After tumbling 15 percent in the second quarter, iron-ore prices entered a bull market on July 26 after China replenished inventories and boosted steel output. In a presentation on its website today, Vale said a sharp drop in steel inventories in recent months opens the door to greater consumption growth.

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UPDATE 2-Vale profit dives on FX charge; cost-cutting continues – by Jeb Blount (Reuters U.S. – August 7, 2013)

 http://www.reuters.com/

RIO DE JANEIRO, Aug 7 (Reuters) – Brazilian miner Vale SA said on Wednesday its second-quarter profit plunged after the company recorded a surprise $2.78 billion in foreign exchange losses on currency derivatives and debt, one of its worst bottom-line results in a decade.

In the three months ending June 30, net income fell 84 percent to $424 million, compared with a profit of $2.6 billion in the year-ago quarter, Vale said in a statement. The result was below market expectations. The average estimate of 18 analysts surveyed by Reuters was for profit to fall 7.63 percent to $2.46 billion.

Vale said the losses resulted from extraordinary, one-time, non-cash, financial charges that do not reflect its improved operational results. The Rio de Janeiro-based company is the world’s largest iron ore producer, No. 2 nickel miner, and a major producer of copper and fertilizers.

While a stronger dollar led to financial losses and lower profit, it also helped Chief Executive Murilo Ferreira to cut $736 million from the cost of salaries, research, equipment, construction and other goods and services.

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Mining a challenging career for Vale manager – Women in Mining: Samantha Espley – by Lindsay Kelly (Northern Ontario Business – August 2013)

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.

At her first summer mining job, while an engineering student at the University of Toronto, Samantha Espley was one of four women—of 10 students—hired on at Falconbridge’s Keno Gold Mine in Val d’Or, Que. It wasn’t until later that it dawned on her how unique it was to work with that many other women.

“I didn’t really think much of it at the time until after I realized how few women there really were to choose from,” said Sudbury-based Espley, who was the only woman in her engineering class. “So it was quite a neat experience.”

After graduating, Stan Bharti, who would later bestow Laurentian University’s engineering school with a $10-million endowment, interviewed Espley for her position at Falconbridge, where she remained for a few years before hiring on at Inco (now Vale). Since then, she’s worked in research, been a general foreman underground, acted as superintendent of business systems, and served as manager of nickel services for mining operations. She’s currently the general manager for mines and technical services.

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Falling profits for Vale – by Reuters and Star Staff (August 6, 2013)

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

Battered by falling iron ore and nickel prices, Vale on Wednesday is expected to report a 30% drop in second-quarter profit to $1.85 billion US from a year earlier, analysts are predicting. If so, it would be Vale’s eighth consecutive quarterly profit fall, according to the average preliminary estimates of seven analysts surveyed by Reuters.

Most of the decline is due to a 12% drop in average iron ore prices and a 38% decline in nickel prices, more than offset-t ing increases in volumes shipped by the world’s No. 1 iron ore miner and No. 2 nickel producer.

Its shares have been the worst performer among the world’s big five mining companies, down 27% this year, despite a rally from nearly four-year lows in July. Of the big five, Rio Tinto, Brazil’s Vale, Glencore Xstrata and Anglo American are expected to report sharp drops in profit.

They have been slammed by weaker copper, iron ore and coal prices as they struggle to sell off assets. Anglo — the first of the diversified majors to publish results — said last week underlying operating profit fell in the six months to $3.3 billion, ahead of a consensus estimate of $3.12 billion.

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NEWS RELEASE: KGHM International Enters Into Agreement With Vale, Becoming Sole Operator of the Victoria Project

2013-08-02

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 2, 2013) –KGHM International Ltd., formerly Quadra FNX Mining Ltd. (the “Company” or “KGHM International”), is pleased to announce that an agreement between KGHM International and Vale Canada Limited, a wholly-owned subsidiary of Vale S.A. (“Vale”), the global mining company, has been reached regarding the development of the Victoria project as well as the ore off-take to Vale’s processing facilities in Sudbury, Canada.

The Victoria project, located in Sudbury, Ontario, Canada, is a great discovery and world-class project in the Sudbury Basin. The deposit containing ore rich in copper, nickel and precious metals will be extracted as an underground mine.

Under the new arrangement with Vale, KGHM International will build and operate Victoria as the sole owner of the project and Vale will receive a royalty and off-take on all future production from the project.

KGHM International and Vale also re-negotiated the off-take arrangement for all of KGHM International’s production from its mines in the Sudbury Basin in Ontario, Canada. Vale will purchase polymetallic ore from KGHM International and process it at Vale’s Clarabelle mill in Sudbury. The contract is valid for the full life of all KGHM International’s Sudbury mines, including future production from Victoria.

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Vale sweetens pot in push to finish Long Harbour (CBC News Newfoundland – July 24, 2013)

http://www.cbc.ca/nl/

Vale is putting on a big push to finish the nickel processing facility in Long Harbour, pledging more cash to workers if they meet revised targets. The company says the project is 90 per cent completed, but finishing the job has been a challenge.

The processing facility is behind schedule. It was supposed to be commissioned by the end of June. The new target is Oct. 31.

Vale spokesman Bob Carter says the project has been plagued by shortages of skilled workers and absenteeism. “Resources that were here, and scheduled to be here, are now moving on to other projects,” Carter said.

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Vale may hire foreign workers to solve Long Harbour crunch (CBC News Newfoundland – July 23, 2013)

http://www.cbc.ca/nl/

Mining giant Vale admits it may have to look outside the country to hire specialized workers to finish its massive nickel processing facility in Newfoundland’s Placentia Bay.

However, Vale says it wants to explore other options first to find such skilled workers as welders and pipefitters for its site at Long Harbour, where the company ultimately intends to process nickel mined at Voisey’s Bay in northern Labrador.

To accomplish that, the company is moving skilled workers from its port site to its main construction site, which the company calls the upper tier. “Because we are short some of those resources, we thought it was best to redirect those resources to the upper tier,” Bob Carter, Vale’s director of corporate affairs, told CBC News.

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