1984 Falconbridge tragedy still echoes for Sudbury residents, mining community – by Benjamin Aubé (CBC News Sudbury – June 20, 2018)

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

Disaster led to 1986 inquiry into mine ground control and emergency preparedness

June 20, 1984, is a day that still resonates in the minds of many Sudbury residents and throughout the mining community. About 200 workers were on shift at Falconbridge Mine that morning. Four of them never got out.

At 10:12 a.m., a seismic event that registered a 3.5 on the Richter scale struck the mine, causing a major rock fall and trapping many of the miners.

Despite rescue attempts over the next several days, Sulo Korpela, Richard Chenier, Daniel Lavallee and Wayne St. Michel each lost their lives. On Wednesday, an annual service commemorating the 34-year anniversary of the tragedy was held at the Mine Mill 598 Unifor Campground at Lake Richard.

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US risked Chinese battery monopoly had Gertler dispute escalated – by David McKay (MiningMx.com – June 19, 2018)

https://www.miningmx.com/

GLENCORE’S workaround the US sanctions placed on Dan Gertler, the Congo’s mining tycoon, was a remarkable piece of pragmatism on behalf of the Swiss miner and minerals trader, but it may have also been informed by a broader concern.

The concern is that in failing to settle the matter, the assets from which Gertler was demanding the resumption of royalties – the Mutanda and Kamoto Copper mines – would have been expropriated by the Congolese government with whom Gertler is close.

It’s quite likely then, given China’s obvious comfort in operating in the Congo, that its companies may have bought the mines and taken control of a large slug of world cobalt (and copper) supply that is crucial to battery manufacture. Controlling the cobalt market would give the Chinese unprecedented control over the world automotive sector.

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Glencore settles with Gertler over Congo royalties – by Barbara Lewis (Reuters U.S. – June 15, 2018)

https://www.reuters.com/

LONDON (Reuters) – Glencore has settled a mining row in Democratic Republic of Congo with Israeli billionaire Dan Gertler by agreeing to pay royalties in a currency other than U.S. dollars, lowering the risk of disruption to copper and cobalt supplies.

U.S. sanctions on Gertler, Glencore’s former Israeli partner in Congo, had triggered litigation and a legal tangle that investors said might affect supplies of cobalt, needed for electric vehicle batteries, from the world’s biggest producer of the metal.

Glencore earlier this week reached a settlement in another dispute involving its Kamoto copper and cobalt mine in Congo, although it remains at odds with the Congolese government over a mining code that increases taxes and royalties on minerals.

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Congo’s Miners Face Harsh New Reality as Mining Law Finalized – by Thomas Wilson (Bloomberg News – June 13, 2018)

https://www.bloomberg.com/

The options for mining companies battling new legislation in the Democratic Republic of Congo — Africa’s biggest copper producer and the source of two-thirds of the world’s cobalt — have just about run out.

After six months of lobbying, companies including Glencore Plc and Randgold Resources Ltd. have got nowhere in their battle to push back against the mining law, which voids existing agreements and increases their costs. Congo approved the final part of the bill on Friday, and despite earlier indications from President Joseph Kabila that the rules might be eased, the law hasn’t been weakened in any way.

While the constitution bars Kabila from running for a third term, Congo’s embattled leader has refused to rule himself out as a candidate in elections later this year, and his campaign to wring more revenue out of mining companies is proving popular with voters.

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Glencore Faces New Legal Challenge Against Congo Cobalt Mine – by William Clowes and Thomas Wilson (Bloomberg News – June 8, 2018)

https://www.bloomberg.com/

(Bloomberg) — For Glencore Plc in the Democratic Republic of Congo, problems don’t form an orderly queue: they pile up on top of each other.

In the latest example of the commodity giant’s deteriorating relationships in the country, a convicted fraudster has resurrected a legal claim the company considered dead, launching a billion-dollar bid for compensation for a 19 percent stake he previously held in Mutanda Mining Sarl — the world’s biggest cobalt miner.

The lawsuit, the third court action this year challenging Glencore’s control of its prized Congolese mines, is another headache for the Swiss commodity trader as it faces down the government over a new mining code that hiked taxes.

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Sudbury Accent: Sudbury as the ‘Harvard’ of hardrock mining [Part 4 of 5] – by Stan Sudol (Sudbury Star – June 6, 2018)

http://www.thesudburystar.com/

The Sudbury Basin is Ontario’s metallic equivalent to the Alberta oils sands without the massive open pits as most of the mines historically have been underground. For 135 years, the region’s unique polymetallic ore-bodies have produced nickel, copper and significant quantities of cobalt, gold, silver and platinum group metals (PGMs).

It is the third largest source of PGMs after South Africa and Russia. Many multi-generational families earn good middle-class salaries in the many mines, two mills, two smelters and one refinery. Roughly 30 per cent of provincial mining activity takes place in Sudbury, according to the Ontario Mining Association.

Glencore’s recent C$900 million investment in the development of its Onaping Depth project and Vale’s C$760 million phase one development of its Copper Cliff Deep mine are indications of growing confidence in the future of the region.

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ICEBREAKING BULKER FOR CANADIAN ARCTIC MINE (The Motor Ship.com – June 6, 2018)

http://www.motorship.com/

Montreal-based Fednav has ordered a new icebreaking bulk carrier in Japan to sustain the year-round transportation requirements of Glencore’s Raglan nickel mine in northern Quebec, writes David Tinsley.

The 31,000dwt vessel has been contracted through trading house Sumitomo Corporation and will be built by Japan Marine United Corporation (JMU) at the Yokohama shipyard. The template for the project will be provided by Fednav’s 31,750dwt Nunavik, claimed to be the world’s most powerful icebreaking bulker when commissioned in 2014 from JMU’s Tsu yard.

Nunavik is in turn similar in design to the company’s 32,000dwt Umiak 1, delivered in 2006 by JMU predecessor Universal Shipbuilding. Both existing vessels support northern mining operations.

The newbuild will be of Polar Class 4 standard and, as with Umiak 1 and Nunavik, will offer a broader cargo carrying capability than that of a pure bulker. While ensuring a southbound flow of high quality nickel concentrates, she will also be used to transport a variety of supplies to the mining complex on northbound voyages, including equipment, machinery and dry and liquid consumables.

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What Does Northern Ontario Want From Queen’s Park? – by Stan Sudol (RepublicOfMining.com – May 31, 2018)

Northern Ontario Being Strangled

On June 7th, the people of Ontario will be going to the polls in one of the most pivotal elections in the province’s history. While Northern Ontario – north of the French and Mattawa Rivers, as I have never recognized the Parry Sound and Muskoka ridings as being part of the North – encompasses roughly 90 per cent of the province’s land mass, its population has been steadily declining to slightly over five per cent of Ontario’s total.

Unfortunately, our impact on provincial policies is almost negligible.

A buck a beer, cheaper gas, tax breaks combined with unaffordable infrastructure and social commitments, twinning the trans-Canada in Northern Ontario, buying back Hydro One, and jumping on a bulldozer to start building the road into the Ring of Fire are part of a bevy of mostly worthy but unsustainable promises Conservative Doug Ford, Liberal Kathleen Wynne and NDP Andrea Horwath have made.

However, I seldom hear any actual policy initiatives to grow the economy and create wealth so we can afford all these election initiatives and perhaps, just perhaps put a little money on our provincial debt which has more than doubled during the past 15 years under the McGuinty/Wynne Liberal era from about $138 billion in 2003/04 to $325 billion currently and growing. By the way, this is the largest sub-national debt in the world and twice as large as California which has a population of almost 40 million. We are paying roughly $1 billion a month to service that debt. That will surely rise when interest rates, which are at historic lows, eventually start going up!

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Glencore Goes From Crisis to Crisis With Possible Bribery Probe – by Thomas Wilson (Bloomberg News – May 21, 2018)

https://www.bloomberg.com/

It’s becoming hard to keep track of all of Glencore’s legal battles in the Democratic Republic of Congo.

The world’s biggest commodity trader is facing the possibility of a bribery investigation by British prosecutors over its work with Dan Gertler, an Israeli billionaire and close friend of Congo President Joseph Kabila.

That’s on top of other disputes, like a conflict with Gertler over unpaid royalties. The Swiss trader is also fighting the government over a new mining code that hikes taxes, and is part of a court case with Congo’s state-owned miner Gecamines, which is pushing to dissolve a local operating unit, saying Glencore overburdened it with debt.

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Tanzania cancels license of Barrick, Glencore nickel project – by Fumbuka Ng’wanakilala (Reuters U.S. – May 12, 2018)

https://www.reuters.com/

DAR ES SALAAM (Reuters) – Tanzania has revoked a retention license for an undeveloped nickel project jointly owned by Barrick Gold Corp and London-listed miner Glencore Plc as part of enforcement of a new mining regime.

The license for the Kabanga nickel project in northwestern Tanzania was among 11 retention licences canceled by the government under the Mining (Mineral Rights) Regulations of 2018, which were approved in January.

A retention license is granted to holders of a prospecting license after they identify a mineral deposit within the prospecting area which is potentially of commercial significance but cannot be immediately developed due to technical constraints, adverse market conditions or other economic factors.

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Glencore’s Congo mining conundrum – by Barbara Lewis and Aaron Ross (Reuters U.K. – May 3, 2018)

https://uk.reuters.com/

LONDON/DAKAR (Reuters) – Miner and commodities trader Glencore (GLEN.L) is embroiled in a legal tangle over its copper and cobalt operations in Democratic Republic of Congo, where conflict and changes to regulations have deterred many mining firms.

U.S. sanctions on Glencore’s former Israeli partner in Congo have been a trigger for litigation. At the same time, relations with the Congolese authorities are under strain from a dispute with the government over a new mining code.

Investors are watching closely, particularly for any impact on supplies of cobalt from Congo, which is by far the world’s biggest producer of the metal whose uses include making alloys for jet engines and batteries for electric cars and mobile phones.

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Glencore Is Said to Take Congo Rift With Gertler to London Court – by Thomas Wilson (Bloomberg News – May 2, 2018)

https://www.bloomberg.com/

Glencore Plc’s clash with former partner Dan Gertler over unpaid royalties at a key Congolese copper mine deepened as the legal battle spread to a London court.

The Swiss miner was on Tuesday granted a temporary injunction against the Israeli billionaire after petitioning the London court to rule against a Congolese judge’s decision last week to freeze assets at its Kamoto Copper project, people familiar with the matter said.

Gertler is claiming $2.28 billion in damages and unpaid royalties, which Glencore stopped paying after he was sanctioned by the U.S. in December.

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Copper and cobalt markets at risk of supply disruptions – by Neil Hume and Henry Sanderson (Financial Times – April 30, 2018)

https://www.ft.com/

Glencore and Freeport-McMoRan under pressure in DRC and Indonesia

The commodities industry has been focused on the crisis surrounding Rusal, the Russian aluminium producer, but a number of disputes entail higher prices for copper and cobalt.

In the past week, the Democratic Republic of Congo’s state-owned mining company has filed legal action against Glencore, while in Indonesia the government has imposed new environmental standards on the giant Grasberg copper and gold mine owned by Freeport-McMoRan.

“Political risk has gone from being little thought about to being a major concern,” Michael Stoner, an analyst at Berenberg, said.

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Glencore Drops as Clash With Former Partner Adds to Congo Issues – by Thomas Wilson (Bloomberg News – April 30, 2018)

https://www.bloomberg.com/

Glencore Plc dropped the most among the U.K.’s biggest stocks as the company clashed with a former partner over royalties at key copper and cobalt mines in the Democratic Republic of Congo.

The shares fell as much as 3.9 percent after the company said late Friday that a Congolese court authorized bailiffs to freeze certain Glencore assets after Israeli billionaire Dan Gertler served orders on local units for almost $3 billion in damages.

The damages relate to royalties from the Mutanda Mining and Kamoto Copper projects, which Glencore stopped paying to Gertler since he was sanctioned by the U.S. for alleged corruption in December.

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Katanga Mining faces threat from Congo company – by Geoffrey York (Globe and Mail – April 25, 2018)

https://www.theglobeandmail.com/

Congo’s state-owned mining company has accused Toronto-listed Katanga Mining Ltd. of draining hundreds of millions of dollars from their joint-venture copper and cobalt mining company.

Katanga, owned by Swiss-based mining giant Glencore PLC, had seen its share price soar over the past year on projections that it will become the world’s biggest producer of cobalt, an essential element in batteries for electric cars.

The boom in electric cars, which has led to a tripling of cobalt prices over the past two years, has boosted Glencore into a powerful position as a dominant supplier to the auto industry, despite investor jitters about instability and corruption in the Democratic Republic of the Congo.

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