Vale – Page 65 – Republic of Mining

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

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.

On Friday, layoff notices were handed out to more than 250 workers with skills that are currently not needed at the main site. Vale, which now plans to finish the port site later, admits it is concerned that it will not be able to find all the workers it needs within Canada.

The company is applying to the federal government for permission to bring in foreign workers.

Vale holds open houses on EIS for potash mine – by Regina Leader Post (July 19, 2013)

July 19, 2013

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

Vale Potash Canada held open house information meetings to discuss the environmental impact statement (EIS) for its proposed Kronau potash mine in Kronau, about 30 km southeast of Regina, on Wednesday and nearby White City on Thursday.

While the Brazilian mining giant’s proposed potash solution mine project was put on hold last August, there’s still considerable interest in the $3-billion project and its potential environmental impact on the area, according to a spokesperson for Vale Potash Canada.

“What we’re trying to get across to people is that if the Kronau project proceeds … the commitments attached to the EIS still apply,” said Lara Ludwig, community relations lead for Vale Potash Canada. About 170 people attended the Kronau session, which was similar to the crowd at the first public information meetings on the Kronau project in 2011, Ludwig said.

“A lot of people had questions about how the internal option analysis is going and what the status (of the project) is. From our perspective, … it was a good opportunity to reconnect and answer any questions.”

Last August, the giant mining company decided to temporarily suspend further work on the 2.9-million tonne per year project due to the tough global economy, although work on the EIS and finding a secure water source for the mine continued.

UPDATE 3-Big iron ore miners go for volume even as glut looms – by James Regan (Reuters U.S. – July 17, 2013)

July 17, 2013

http://www.reuters.com/

SYDNEY, July 17 (Reuters) – Record iron ore output from BHP Billiton and other mining giants appears to defy logic, with demand for the steel-making raw material cooling in top customer China and a price-eroding supply glut looming.

But the sector’s heavy guns are digging more for less to tighten their stranglehold on the world’s second-biggest commodity market, as competitors struggle.

In mining parlance, this is known as a “rebalancing” strategy, designed to improve the operating margins of the majors to such an extent that smaller competitors or new projects may be all but squeezed out.

“The majors want to maximise those economies of scale,” said MineLife sector analyst Gavin Wendt. “As long as they keep margins well ahead of a declining iron ore price, they are winning.” BHP Billiton, Rio Tinto and Fortescue Metals Group, with their iron ore operations in Australia, and Brazil’s Vale are leading the charge.

Seaborne-traded iron ore prices, which have lost 10 percent so far this year, are forecast to hit their lowest in four years by the end of 2013 as these big miners dig deeper and faster.

Double Standards (Vale waste spill) – St. John’s Telegram Editorial (July 13, 2013)

July 15, 2013

http://www.thetelegram.com/

There’s an old saying about money and moguls: if you owe the bank $10,000 and you can’t pay, you’re in trouble. But if you owe the bank $10 million and you can’t pay, your banker’s in trouble.

It’s got to do with scale: essentially, there’s a point at which your size creates its own kind of motion — or its own kind of inertia — and you end up being treated differently than anyone else might be.

Keep that in mind and ask yourself if it might apply to this question: if Vale/Inco has a problem with toxic waste spilled into Arctic waters, is that really their problem or, given their size, is it a problem for the provincial government?

Because Vale is having a problem — one that they may well be trying very hard to solve, and one that the federal government has recently charged them over. Vale was charged with three charges related to the release of toxic materials into Anaktalak Bay in Labrador.

But just try getting anyone to talk about not only the issues involved in the case, or about Vale’s past record of failing a series of tests on effluent, and you find that everyone is pretty much mum.

Brazil indigenous protest blocks major iron ore railway (BBC – July 10, 2013)

July 11, 2013

http://www.bbc.co.uk/news/

Brazilian indigenous people in the Amazon region have blocked one of the country’s most important railways in a protest for better public services. The railway is owned by mining giant Vale and connects the world’s largest iron ore mine, Carajas, to a port on the northern coast near Sao Luis.

The track transports more than 100m tonnes of the mineral each year. It is the second time this week that the trains have been halted by protesters of neighbouring villages.

Protesters from several tribes burned wood on the railway in the Amazonian region of Alto Alegre do Pindare, demanding better transport, education, health and security.

Last week, they blocked the railway for two days. Earlier this week, residents of another village near Sao Luis, in the state of Maranhao, also stopped the trains in a protest. They want Vale to act on their behalf in negotiations with the authorities.

Because of the protests, the passenger train that transports about 1,500 passengers a day between the city of Parauapebas, in Para, and Sao Luis has not resumed its regular service since last week.

Feds, province [Newfoundland] mum on Vale charges – by Ashley Fitzpatrick (St. John’s Telegram – July 11, 2013)

July 11, 2013

http://www.thetelegram.com/

The federal government has refused to comment on the charges being pressed against Vale Newfoundland and Labrador for alleged illegal release of liquid waste into Anaktalak Bay, Labrador.

Three charges are being laid against Vale relating to alleged breaches of the federal Fisheries Act over the course of almost a month in October 2011.

In response to questions on the case, Environment Canada issued a response by email, received by The Telegram at 9 p.m. Wednesday: “Thank you for contacting Environment Canada. However, as this case is currently before the courts, it would be inappropriate to comment.” The paper posed questions about the Vale case to communications staff at the provincial and federal level throughout the day Wednesday.

The questions — including whether or not the provincial government was aware of the allegations against Vale — have bounced between the federal Department of Fisheries and Oceans (DFO) representatives, a provincial spokesperson for DFO, the Environment Canada communications office in Ottawa and provincial communications staff from Service NL to Environment and Conservation.

Manitoba sulphur dioxide emissions will soon be drastically reduced – by Ian Graham (Thompson Citizen – June 14, 2013)

July 5, 2013

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

There was good news and bad news about Manitoba’s environment in the Canadian Council of Ministers of the Environment’s 2010-2011 progress report on the Canada-Wide Acid Rain Strategy for Post-200 that was released earlier this spring.

The bad news was that Manitoba was the third-largest emitter of sulphur dioxide (SO2) in Canada in 2010, accounting for 14 per cent of the total, behind only Alberta t 27 per cent and Ontario at 20 per cent.

The good news was that SO2 emissions from Manitoba in 2010 were down 44 per cent from their 2008 level, to 197,000 tonnes from 350,000 tonnes, thanks in part to the closure that year of Hudbay’s copper smelter in Flin Flon, which was expected to reduce total emissions of SO2 by 185,000 tonnes per year. That was the largest relative decrease in S02 emissions in any province over the same two-year period.

And while it will not be good for the local economy, the scheduled closure of Vale’s smelter in Thompson in 2015 is expected to reduce the amount of sulphur dioxide emitted in Manitoba by another 185,000 tonnes.

Birchtree: Vale sheaths the Sword of Damocles – Editorial (Thompson Citizen – May 15, 2013)

July 5, 2013

It was one of the rare good news announcements to come from Vale, still Thompson’s most important employer, in the last 2½ years: Birchtree Mine, which opened in 1968, is “no longer scheduled to be placed on care and maintenance in August,” Lovro Paulic, vice-president for Vale’s Manitoba Operations, told employees in an internal Manitoba Operations update circulated May 6.

Still, it must be seen in perspective for what it is: good news by virtue of not being bad news. The status quo hasn’t changed and there is no net gain here. The good news is that for the time being at least there is no loss either. Still, it must be seen in perspective for what it is: good news by virtue of not being bad news. The status quo hasn’t changed and there is no net gain here. The good news is that for the time being at least there is no loss either. About 185 Vale employees work at Birchtree Mine, along with approximately 25 non-Vale contractors.

Kelly Strong, Vale’s vice-president of Ontario and UK operations since last November, told a packed luncheon last month in Sudbury that nickel prices of a little more than $7 a pound are comparable to $2.50 a pound a decade ago, and are creating huge challenges for Vale. Nickel prices were under $7 last week. Strong said several factors have substantially increased mining costs, including oil prices that have increased by 350 per cent, and the Canadian dollar, which has increased in value by 60 per cent compared to the U.S. dollar.

NEWS RELEASE: Vale obtains installation license for [Brazil iron ore project Carajás] S11D – (July/03/2013)

July 4, 2013

http://www.vale.com/en/Pages/default.aspx

Vale informs that it has obtained the installation environmental license (LI) to the iron ore project Carajás S11D, the highest grade and lowest cost world-class project in the industry. With the issuance of the LI, Vale’s Board of Directors approved the complete S11D program, comprised of investments in the mine, processing plant, railway capacity and port.

The LI was issued by Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (IBAMA) and is part of the project’s second phase of licensing, which authorizes the plant construction. S11D is the largest project in Vale’s history and also in the iron ore industry, being a major lever for value creation, production capacity growth and for maintaining Vale’s undisputed leadership in the global market in terms of volume, cost and quality. A high value-adding project.

The total capex for S11D is US$ 19.671 billion, estimated at a 2.00 BRL/USD exchange rate, encompassing: the development of mine and processing plant (US$ 8.089 billion) and logistics (US$ 11.582 billion).

The project has a nominal capacity of 90 million metric tons per year (Mtpy) of iron ore with proven and proved reserves of 4.240 billion metric tons with an average ferrous content of 66.7%, low impurities and estimated cash cost (mine, plant, railway and port after royalties) of US$ 15.00 per metric ton (at a 2.00 BRL per USD exchange rate). S11D is expected to start-up in 2H16 and to deliver full capacity production in the 2018 calendar year.

Insurgency threat may dim Mozambique’s shine for investors – by Marina Lopes and Pascal Fletcher (Reuters U.S. – June 20, 2013)

June 27, 2013

http://www.reuters.com/

MAPUTO/JOHANNESBURG – (Reuters) – An economic take-off in Mozambique driven by bumper coal and gas discoveries two decades after the end of a civil war is facing disruption from disgruntled former guerrillas who feel they have not benefited from the post-conflict dividend.

A public threat by the ex-rebel Renamo opposition party to paralyze central rail and road links has put the Frelimo government on alert and alarmed diplomats and investors.

A slide back into the kind of all-out war that crippled the former Portuguese southern African colony between 1975 and 1992 looks unlikely. Nevertheless, Mozambique’s rebirth as an attractive tourism and investment destination could lose some of its momentum after armed attacks in the last two months blamed on Renamo.

The raids in central Sofala province killed at least 11 soldiers and police and three civilians and came after Renamo leader Afonso Dhlakama returned with his civil war comrades to the Gorongosa jungle base where they operated in the 1980s.

“It does bring back all those fears of the war,” said Joseph Hanlon, a senior lecturer at Britain’s Open University and an expert on Mozambique.

Vale Sees China Slowdown Blunted by Brazil Real Depreciation – by Juan Pablo Spinetto & Laurie Hays (Bloomberg News – June 17, 2013)

June 18, 2013

http://www.bloomberg.com/

Vale SA (VALE5), Brazil’s largest exporter, said further local currency depreciation could counter cost rises and a slowdown in Chinese iron-ore demand as it seeks to regain market share from Rio Tinto Group and BHP Billiton Ltd. (BHP).

The real, the worst-performing emerging-market currency in the past three months, probably will weaken to about 2.40 from 2.15 per U.S. dollar, bolstering Brazil’s competitiveness, said Jose Carlos Martins, Vale’s executive director for ferrous and strategy. China’s iron-ore and steel demand growth is set to slow to about 5 percent from 10 percent in the first five months of the year, he said.

“The Brazilian currency will devalue further,” Martins, 63, said in a June 14 interview at the company’s Rio de Janeiro headquarters. “The slowdown in China is negative, devaluation is positive because not only our costs in dollars will be reduced but also investments will be lower.”

Vale is seeking to return to profit growth and boost investor confidence by cutting costs, selling assets and focusing on the iron-ore business, its most lucrative unit. The company, the worst-performing major mining stock this year, posted first-quarter profit that surpassed analysts’ expectations for the first time in eight quarters.

The real lost 7.8 percent against the dollar in the past three months through yesterday to the weakest level in four years as faltering economic growth and speculation the U.S. Federal Reserve will pare back monetary stimulus lures money away from Latin America’s biggest economy.

Excerpt: From Meteorite Impact to Constellation City: A Historical Geography of Greater Sudbury – by Oiva W. Saarinen

June 12, 2013

To order a copy of “From Meteorite Impact to Constellation City”, please click here: http://www.wlupress.wlu.ca/Catalog/saarinen-meteorite.shtml

From International Nickel Company to Inco, and Merger with Mond (1902–1928)

Between 1902 and 1928, International Nickel prospered from the pre-war European demands for nickel in armour plate, the military needs of the First World War, increased peacetime uses for nickel in the United States, and the impact of the roaring twenties. By 1903, nickel production from Sudbury exceeded that of its main rival, New Caledonia. This dominance became continuous after 1905. The control of Sudbury’s wealth was paralleled by the dominance of International Nickel within the nickel industry. Through the use of long-term contracts with its consumers, the company was able to thwart competitors from entering the market, especially in the United States.

Its ability to meet the growing global demand for nickel was facilitated by the opening of Creighton mine in 1901 and the growth of this operation by the First World War into the world’s largest operating mine.10 Its output far surpassed that of the company’s other major source, Crean Hill.

Also significant was the opening of a new smelter by the CCC in Copper Cliff in 1904 which heralded the appearance of the first of three great smokestacks which dominated the Sudbury skyline for years to come. These smokestacks served to disperse the sulphur fumes released during the smelting process into the atmosphere.

OMA NEWS RELEASE: Vale’s Kelly Strong elected as the OMA’s 78th chairman

June 10, 2013

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.

The Ontario Mining Association’s Board of Directors has appointed Kelly Strong as the new chairman of the industry organization. Mr. Strong is Vice President of Vale’s Ontario and U.K. Operations. The OMA, whose members are involved in various aspects of the environmentally responsible exploration, production and processing of mineral resources in Ontario, is one of the longest serving trade organizations in the country. This year, the OMA is celebrating its 93rd anniversary.

Mr. Strong becomes the 78th chairman of the OMA. He succeeds Marc Boissonneault, Xstrata Nickel’s Vice President for Sudbury Operations. Mr. Boissonneault served in this position for three years. We thank him for his leadership and his efforts as OMA Chairman on behalf of OMA members and the entire industry.

“We greatly appreciate the dedication and direction of Mr. Boissonneault during his tenure as OMA Chairman,” said OMA President Chris Hodgson.

“During his chairmanship, mining had a positive and important presence at Queen’s Park, the membership of the OMA expanded and many of the outreach and education efforts such as the So You Think You Know Mining high school video competition gained widespread acceptance and interest.”