Republic of Mining

COLUMN-Zinc spreads explode as tightness bites London shorts – by Andy Home (Reuters U.K. – September 26, 2017)

September 26, 2017

http://uk.reuters.com/

LONDON, Sept 26 (Reuters) – Zinc bulls have been waiting a long time for this, but the slow-burning supply crunch has at last travelled all the way down the supply chain to bite holders of short positions on the London Metal Exchange (LME). LME time spreads exploded last week and they’ve grown wilder still this week.

The benchmark cash to three-month spread CMZN0-3 closed on Monday at a backwardation of $66 a tonne. That’s the widest cash premium since January 2007. Contraction of the forward curve reflects acute tightness on the cash date itself as evidenced by continuing turbulence within even the shortest-dated of LME spreads.

With exchange stocks falling and more metal being cancelled before physical load-out, those who have taken short positions look set for a torrid time. However, this sort of extreme tightness on the LME could yet prove a double-edged sword for bulls if it sucks “hidden” metal out of off-market storage.

[Alaska mining] Actor Leonardo DiCaprio donates $80,000 to Southeast group (Juneau Empire – September 23, 2017)

September 25, 2017

http://juneauempire.com/

You might call it a titanic contribution. The Leonardo DiCaprio Foundation, founded in 1998 by the eponymous screen actor, announced an $80,000 grant to the Southeast Alaska Indigenous Transboundary Commission (SEITC) on Tuesday. The money will help the group in its efforts to protect Southeast waters from Canadian mining projects they believe are threatening their indigenous way of life.

The donation was made as part of a $20 million philanthropic effort, according to Hollywood Reporter. DiCaprio announced the portfolio of grants at a climate change conference at Yale University.

SEITC is comprised of 16 federally-recognized tribes and is based out of Kasaan, Alaska. In a Friday phone conversation, Chairman Frederick Otilius Olsen, Jr. said the money will help the group protect the environment from industrialization rapidly occurring across the border from Southeast Alaska.

Northern Ontario First Nations take federal and Ontario governments to court over $4 annual treaty payments – by Olivia Stefanovich (CBC News Sudbury – September 25, 2017)

September 25, 2017

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

Beneficiaries of the Robinson-Huron Treaty have not seen annuities go up since 1874

Twenty-one First Nations in northern Ontario are taking the federal and Ontario governments to court in Thunder Bay, Ont. on Monday to demand an increase to their annuities, which have not been raised in over 140 years. Since 1874, beneficiaries of the Robinson-Huron Treaty have been collecting $4 annually.

The treaty was originally signed in 1850. It stated that payments were supposed to increase if the resource revenues generated from the territory produced such an amount as to enable an increase without incurring a loss, according to Serpent River First Nation Chief Elaine Johnston.

“So Canada and Ontario receive revenues from the land that we agreed to those treaties,” Johnston said. “But we haven’t seen a recognition for that.” Now First Nation leaders who are part of the treaty spanning north of Parry Sound to Sudbury and west to Lake Superior are taking legal action to order an acknowledgment of a century-old promise.

MOVING MOUNTAINS FOR AN IRON RANGE FUTURE – by Aaron Brown (Hibbing Daily Tribune – September 24, 2017)

September 25, 2017

http://www.hibbingmn.com/

Aaron J. Brown is an author and community college instructor from Northern Minnesota’s Mesabi Iron Range. He writes the blog MinnesotaBrown.com and hosts the Great Northern Radio Show on Northern Community Radio (KAXE.org).

Soon the Hull Rust Mine View in historic North Hibbing will be closed for good, set to reopen next year at a new location to the east. Shortly thereafter Hibbing Taconite will blow to bits the very mountain of taconite on which the viewing stand sits to send the iron ore on its way to become steel.

A quick review of Iron Range history shows that such displacement is hardly new. They call Hibbing, after all, “The Town That Moved,” relocated some ninety years ago to accommodate mining in the same North Hibbing area where Hibbing Taconite will expand its pit.

Similar movements happened this summer as the state relocated Highway 5 near Chisholm for mining.

Mining juniors increase exploration spending – by Paul Garvey (The Australian – September 25, 2017)

September 25, 2017

http://www.theaustralian.com.au/

Australia’s junior resources sector has started to crank up its spending as it continues to shake off the post-downturn funk and capitalise on the increased amounts of cash available to it.

The latest quarterly analysis of the financial health of the country’s listed exploration companies by accounting and advisory firm BDO, to be released today, shows a big increase in the amount spent by the nation’s small-caps on investing and exploration as well as doubling in the number of $10 million-plus capital raisings.

The amount spent by the nation’s juniors on investment during the quarter more than doubled from $133m in the March quarter to $269m in the June quarter, in another reflection of improved confidence and a brighter outlook for the junior exploration sector.

Exclusive: VW moves to secure cobalt supplies in shift to electric cars – by Pratima Desai (Reuters U.S. – September 22, 2017)

September 25, 2017

https://www.reuters.com/

LONDON (Reuters) – Germany’s Volkswagen (VOWG_p.DE) is moving to secure long-term supplies of cobalt, a vital component of rechargeable batteries, as the group accelerates its ambitious shift to electric cars. Cobalt industry sources told Reuters that VW, the world’s largest automaker, has asked producers to submit proposals on supplying the material for up to 10 years from 2019.

Volkswagen, which decided on the strategic shift to electric vehicles (EVs) after it was engulfed in the “dieselgate” scandal, plans to invest more than 20 billion euros ($24 billion) in zero-emission vehicles by 2030 to challenge pioneer Tesla in creating a mass market.

The company, which aims to make up to three million EVs a year by 2025, wants all the cobalt tender proposals submitted by the end of September. “The tender doesn’t actually tell you how much cobalt they want. They tell you how many EVs they want to make, you have to work out the cobalt content yourself,” one cobalt industry source said.

In Wisconsin, GOP pushes to end sulfide mining moratorium – by Todd Richmond (Washington Post – September 24, 2017)

September 25, 2017

https://www.washingtonpost.com/

Associated Press – MADISON, Wis. — Gov. Scott Walker voted to ban copper and gold mining in Wisconsin two decades ago. Now he may be asked to lift the one of-a-kind prohibition as his fellow Republicans push to continue opening up the state’s north woods to mining.

Conservationists have warned pollution from mining for so-called sulfide ores such as copper, zinc and gold could devastate northern Wisconsin’s water — one of the reasons the Legislature adopted a de facto moratorium on such mines in 1998. But after relaxing the state’s iron mining laws four years ago, GOP lawmakers have introduced a bill that would lift the prohibition. They say they want to jump-start the economy in the rural, sparsely populated northern half of the state.

The measure could put Walker in a tough situation, forced to choose between sticking with his long-ago vote when he was in the Assembly or signing the bill in hopes of sparking a slumbering industry. Supporting the measure would be a reversal he might have to explain on the campaign trail next year.

Study: Female gold diggers at risk of passing mercury to unborn babies – by Lucas Ngasike Standard Media – September 25, 2017)

September 25, 2017

https://www.standardmedia.co.ke/

Women in gold mining sites in Migori County are exposed to high levels of mercury that could harm them and their unborn babies.

A global study found nearly half of Kenyan women involved in artisanal and small-scale gold mining (ASGM) had mercury levels that exceeded 1 ppm, which approximately corresponds to the US Environmental Protection Agency reference dose.

Mercury levels above 1ppm can be linked to brain damage, IQ loss, and kidney and heart damage. But foetal neurological damage can begin at mercury levels greater than 0.58ppm for which an even higher percentage (71 per cent) of Kenyan women involved in the study were found to be exposed to.

Gold companies take a shine to China’s Silk Road – by Tom Daly (Reuters U.S. – September 24, 2017)

September 25, 2017

https://www.reuters.com/

TIANJIN, China Sept 24 (Reuters) – As far as China’s miners are concerned, the modern-day Silk Road is paved with gold. Buoyed by a 15 percent rise in the gold price this year, Chinese mining executives in Tianjin this weekend were talking up their ambitions for overseas expansion.

In doing so they embraced Chinese President Xi Jinping’s Silk Road Economic Belt and 21st Century Maritime Silk Road, now being promulgated around the world as the Belt and Road Initiative, the geographical scope of which has not been precisely defined.

Song Xin, CEO of China National Gold Group Corp, told a session of the China Mining conference on Saturday that his company would “intensify exploration and capital allocation in Belt and Road countries”, which he said account for 80 percent of global gold consumption.

All global warming predictions are infallible… until they’re not – by Rex Murphy (National Post – September 25, 2017)

September 25, 2017

http://nationalpost.com/

There is a disturbance in the troposphere, much perturbation. The little Gore molecules that do so much to keep everybody in the climate change industry in a sweat are slacking off. The results are—let me coin a word—undeniable. The world’s leading climate entrepreneur’s new PowerPoint agitprop, An Inconvenient Sequel: Truth to Power, hasn’t stirred the waters or warmed the air.

Take note of that bathetic subtitle, Truth to Power. With just about every government and sub-sovereign government in the world on side, every progressive university in full harmony, every pseudo-science radio and TV program treating global warming with the reverence only found these days among Scientologists and faith healing sorcerers, and every celebrity that owns a yacht and a private jet willing to swear, “It’s real and it’s happening,” which side do you think has the “Power?”

Not to mention the annual mass march of the penguins—sorry, my mistake—the annual trek (by jet) of the hordes of NGOs, Greenpeace camp followers, Green parties, and bureaucrats to Rio or Paris or Beijing or Marrakesh to piously intone The End is Near under the illustrious banner of the Intergovernmental Panel on Climate Change and the Conference of the Parties.

Excerpt from J.P. BICKELL: The Life, the Leafs, and the Legacy – by Jason Wilson, Kevin Shea and Graham MacLachlan

September 25, 2017

To order a copy of “J.P. BICKELL: The Life, the Leafs, and the Legacy”: https://www.dundurn.com/books/JP-Bickell

Jason Wilson is a bestselling Canadian author, a two-time Juno Awards Nominee, and an Adjunct Professor of History at the University of Guelph. He has performed and recorded with UB40, Ron Sexsmith, Pee Wee Ellis, and Dave Swarbrick. Jason lives in Stouffville, Ontario.

Kevin Shea is a renowned hockey historian and bestselling author of fourteen hockey books. He is the Editor of Publications and Online Features for the Hockey Hall of Fame, a member of the Toronto Maple Leafs Historical Committee, and a founding member of Road Hockey to Conquer Cancer. Kevin lives in Toronto.

Graham MacLachlan is a relative of J.P. Bickell who has an extensive business background in international trade that is equalled by his involvement in hockey in the IIHF, the WHL, Hockey Canada, Hockey Alberta, and Hockey Calgary. Graham lives in Calgary, Alberta.

OVERVIEW

He stayed out of the spotlight, but Leafs fans know J.P. Bickell cast a long shadow.

A self-made mining magnate and the man who kept the Maple Leafs in Toronto and financed Maple Leaf Gardens, J.P. Bickell lived an extraordinary and purposeful life. As one of the most important industrialists in Canadian history, Bickell left his mark on communities across the nation. He was a cornerstone of the Toronto Maple Leafs, which awards the J.P. Bickell Memorial Award to recognize outstanding service to the organization.

Bickell’s story is also tied up with some of the most famous Canadians of his day, including Mitchell Hepburn, Roy Thomson, and Conn Smythe. Through his charitable foundation, he has been a key benefactor of the Hospital for Sick Children, and his legacy continues to transform Toronto.

Investors wary as Tanzania moves to assert more control over mines – by Katharine Houreld and Zandi Shabalala (Reuters U.S. – September 24, 2017)

September 25, 2017

https://www.reuters.com/

NAIROBI/LONDON (Reuters) – New laws and a crackdown on mining firms in Tanzania has slowed fresh investment in what has long been seen as one of Africa’s brightest mining prospects as companies assess the consequences of government efforts to claim a bigger slice of the pie.

Takeover bids and exploration plans have been canceled and workers laid off. The share prices of many firms listed in Australia, Britain, South Africa and Canada with interests in Tanzania have halved as the value of their investments tumble.

The tumult follows the passage of three laws in July that, among other things, hike taxes on mineral exports, mandate a higher government stake in some mining operations and force the construction of local smelters to bring Tanzania higher up the mining food chain.

Five big ideas for Northern Ontario: The biggest barrier isn’t cost, though; it’s attitude – Charles Cirtwill (Northern Ontario Business – September 25, 2017)

September 25, 2017

https://www.northernontariobusiness.com/

Twice last month, we were challenged to think BIGGER in terms of our vision for the future of our region and our country. First came Dr. David Robinson’s piece in this magazine decrying the incrementalist nature of the recently released provincial multi-modal transportation study.

Then came Conrad Black, in the pages of the National Post, reminiscing about the days of real policy debate in this country and putting forward some big ideas of his own for transformational change. So, here are five big ideas for Ontario’s North.

One, connect Highway 11 through Aroland to Armstrong and over top of Lake Nipigon to Savant Lake. If we are serious about a dedicated truck route, electronic vehicles, and creating a true transportation grid, that will do it. If the bridge at Nipigon is ever blocked again, the country will not be cut in half. Such a route also “opens up” the mid-north and would tie nicely into the proposed infrastructure for the Matawa communities and the Ring of Fire.

(Russia Mining) World’s Biggest Country Doesn’t Have to Go Far for Cheaper Labor – by Anna Andrianova and Yuliya Fedorinova (Bloomberg News – September 25, 2017)

September 25, 2017

https://www.bloomberg.com/

Just a seven-hour drive south of Moscow, Stary Oskol could be a world away when it comes to the costs of running a business. For Metalloinvest Holding Co., the bargain was too good to pass up.

Starting in July, Russia’s largest iron-ore producer is relocating some management personnel from the capital to the old mining center that’s perhaps best known as the home of the country’s most celebrated mixed-martial-arts fighter.

And once its new service hub there is up and running, the company expects to cut its expenses for operations such as bookkeeping and human resources by almost a third. Billionaire Alisher Usmanov’s Metalloinvest is the latest among a slew of major companies that are seizing on the discrepancies in pay and costs, queuing up for smaller towns left behind during the oil boom years of the past decade.

A Mining Billionaire Takes His War on Slavery to the UN – by Katie Robertson (Bloomberg News – September 21, 2017)

September 22, 2017

https://www.bloomberg.com/

Andrew Forrest walks up to CEOs and confronts them with the ugly truth: You may be a slaveholder. The Australian billionaire, who founded Fortescue Metals, one of the world’s largest iron ore producers, has spent years trying to convince anyone who will listen that slavery thrives in the modern world—and that they need to do something about it.

Since confronting the practice in his own company’s supply chain, Forrest has been on a mission to abolish forced labor and human trafficking. This year, he made it to the United Nations.

A special panel of world leaders addressing global slavery was chaired by U.K. Prime Minister Theresa May on Tuesday on the sidelines of the General Assembly and was attended by UN Secretary General António Guterres and senior White House adviser Ivanka Trump, among others.