Republic of Mining

Mining Capital Can’t Win as Canada Stocks Lag Metal Gains – by Kristine Owram (Bloomberg News – September 6, 2017)

September 7, 2017

https://www.bloomberg.com/

Industrial metals have posted their longest run of weekly gains since 2006 and gold’s had its best month since January, but the commodity-heavy equity benchmark in the world’s mining capital just can’t seem to gain any traction.

It’s the latest frustration for Canada’s S&P/TSX Composite Index, which has lagged all but one of its developed-market peers this year even as base metals have rallied on stronger Chinese demand and gold has gained amid geopolitical uncertainties.

Chalk it up to the previous base-metal slump from 2011 to early 2016 which has shrunk the industry and scarred investors. The materials sector, dominated by miners such as Barrick Gold Corp. and Teck Resources Ltd., is about half as important as it was to Canada’s equity benchmark six years ago.

Fast is slow: Will Ontario really build a road to the Ring of Fire? – by Jon Thompson (TV Ontario Northwestern – August 31, 2017)

September 7, 2017

http://tvo.org/

ANALYSIS: Kathleen Wynne said she’d take her time to get the road right. Jon Thompson asks what took her off course

Kathleen Wynne’s government says it likes to get relationships right: It pledged to get things right with the feds in the 2016 Ontario budget. In a 2015 address to the Association of Municipalities of Ontario, Wynne herself committed to “getting it right” when it comes to Queen’s Park’s relationship with cities.

Wynne often uses the phrase when discussing Ontario’s relationship with the Matawa tribal council, whose lands and lifestyles the proposed Ring of Fire mining development — consisting of huge chromite and nickel deposits nearly 600 kilometres northeast of Thunder Bay — could alter considerably.

When critics allege progress on that file has stagnated, Wynne again stresses the importance of “getting it right.”

However, in recent months the premier has tried to speed up the Ring of Fire’s development and events from last week suggest “getting it right” may have been a sound approach after all.

Should Ontario Northland be the railroader for the Ring of Fire? – by Ian Ross (Northern Ontario Business – September 6, 2017)

September 7, 2017

https://www.northernontariobusiness.com/

Regional railway says it has the smarts, capability to serve James Bay mining camp

The Ontario Northland Railway (ONR) is ready to be a logistical player in the Ring of Fire, if and when an ore haul railroad is required.

Now that Queen’s Park has unveiled a road-building timetable to reach the Far North mineral deposits, Ontario Northland Transportation Commission president-CEO Corina Moore said the North Bay-headquartered Crown railroader has the ability to do the job.

“Ontario Northland remains interested in providing input on how we can provide rail support in the future with regards to the Ring of Fire,” said Moore in an email. She was responding to comments made by Noront Resources president-CEO Alan Coutts, who hinted that the ONR could serve as the exclusive railroader to the Ring.

“When the Ring of Fire chromite market grows to a level requiring rail, Ontario Northland has the experience, technology, and capabilities to safely operate and maintain the rail infrastructure,” replied Moore.

Brazilian mining giant Vale gears up for ‘in-house’ diversification, possible acquisitions (Platts.com – September 6, 2017)

September 6, 2017

http://blogs.platts.com/

Speculation has mounted in recent weeks on possible plans by Brazilian mining company Vale’s new CEO Fabio Schvartsman to diversify and make new acquisitions. New strategic partnerships are in theory ruled out because Vale is big enough “to set its own, even more ambitious goals,” according to the new CEO.

New developments may be known on October 18, the date of Vale’s next general shareholders’ assembly, when a “diagnostic report” on the company’s activities, called for by the new CEO, may be considered by board members.

Indications are that Schvartsman — CEO of a paper and pulp concern before he took over the helm of the Brazilian mining giant in May — is concerned over Vale’s dependence on standard iron ore products, the company’s mainstay.

The battery revolution: balancing progress with supply chain risks (RCS Global – August 2017)

September 6, 2017

http://www.rcsglobal.com/

For the full report: http://www.rcsglobal.com/wp-content/uploads/rcs/pdfs/RCS-Global%20The-Battery-Revolution.pdf

The lithium-ion (Li-ion) battery is set to fuel a revolution in electric vehicles (EV), home energy storage and even the powering of entire cities. Yet, increasing demand for the Li-ion battery is revealing and amplifying a wide spectrum of risks associated with the materials that make up the battery itself.

As new battery technology transforms consumer markets, there is a growing realisation that the transition to electric is not without social and environmental impact in the countries where battery materials – specifically cobalt, lithium, nickel, graphite and manganese – are mined and chemically processed into battery grade materials.

These risks present significant reputational, legal, compliance and commercial concerns for major industries harnessing the battery revolution including automotive, electronics and utilities infrastructure. For local communities, the risks represent impacts that could exacerbate or even cause environmental and social problems ranging from air pollution to child labour to conflict.

[Sweden Iron-Ore Mining] How to Move a Town (Bloomberg News – September 5, 2017)

September 6, 2017

https://www.bloomberg.com/

The citizens of Kiruna, Sweden, always knew they’d have to move to accommodate the local iron-ore mine. They just didn’t expect it to happen so soon, or so all at once.

Appropriately, it was the dog musher who broke trail. Sune Stralberg, 66, is a national champion musher, a maker of dogsleds, and owner of Bjorkis Hundprodukter, a one-stop shop for organic kibble, spare sled parts, and dog leads and harnesses.

All of this makes him a local celebrity in his hometown of Kiruna, Sweden’s northernmost city. He has the white beard and jovial affect of a skinny Swedish Santa and speaks in lovely, lilting sentences, even when he’s recounting painful memories, such as one from three years ago, when he was forced to move his shop out of its longtime home and into a strip mall 2 miles down the road.

He had little choice—the ground beneath the old shop was on the verge of collapse, like much of the rest of the town. “I already knew that I would move because of the iron,” Stralberg says with a shrug. “Everyone knew.”

Heading into public hearing, Nunavut, Agnico Eagle disagree over caribou – by Jane George (Nunatsiaq News – September 5, 2017)

September 6, 2017

http://www.nunatsiaqonline.ca/

Final NIRB hearing into Whale Tail gold mine project starts Sept. 19 in Baker Lake

Parties planning to attend the upcoming public session on Agnico Eagle Ltd.‘s Whale Tail gold mine project near Baker Lake have plenty to read and think about between now and the public hearing set for between Sept. 19 and Sept. 22 in Baker Lake before the Nunavut Impact Review Board.

That’s because the mining company submitted a 208-page document to the NIRB Aug. 28, responding to multiple opinions expressed by stakeholders. This document contains detailed responses to comments that the NIRB received from such groups as the Baker Lake Hunters and Trappers Organization, Inuit organizations and the Government of Nunavut about Agnico Eagle’s Whale Tail project.

Despite the heavy use of acronyms and diplomatic jargon like “values” and “appreciates” in the document, it’s likely that big, unresolved issues around caribou will be among topics discussed in Baker Lake. Much of the discussion on caribou in Agnico Eagle’s response is heavily technical.

Russia Has a Gem of an Idea to Take on India – by Yuliya Fedorinova, Olga Tanas and Thomas Biesheuvel (Bloomberg News – September 6, 2017)

September 6, 2017

https://www.bloomberg.com/

Russia wants its biggest diamond miner to work more closely with the country’s top gem cutters so the industry can better compete in a market that’s dominated by Indian manufacturers.

As part of a plan to boost the competitiveness of Russian diamonds, the government wants Alrosa PJSC to offer more favorable terms to cutters including Kristall Production Corp., Russia’s largest, according to Deputy Finance Minister Alexey Moiseev. The producer, which digs more gems out of the ground than any other firm, is mostly state owned.

“Cooperation currently is rather limited and it has to expand,” Moiseev said in an interview in Moscow. Alrosa has largely shunned cutting and polishing to focus on mining, where it can get bigger margins.

Ban on mineral ore export may backfire, mining stakeholders warn – by Louise Maureen Simeon (Philippine Star – September 5, 2017)

September 6, 2017

http://www.philstar.com/

MANILA, Philippines — A planned ban on the export of mineral ores may hit the country’s economy and will likely risk its reputation in global markets, mining stakeholders warned. While the Chamber of Mines of the Philippines (COMP) is all for the domestic processing of minerals, it maintained that a total ban on exports will not work for the country.

Citing Indonesia, which instituted an export ban in 2014, as an example, COMP executive director Ronald Recidoro said the move may not be applicable to the Philippines and may even backfire.

“Indonesia saw that the experiment did not work and it is now creating havoc within their economy. And we do not want to go through that,” Recidoro said during the opening day of the Mining Conference Philippines 2017 on Tuesday.

[Barrick Dominican Republic – Pueblo Viejo Mine] Local hiring program changing lives: (Barrick Beyond Borders – August 27, 2017)

September 6, 2017

(Video: I am Barrick Pueblo Viejo)

http://barrickbeyondborders.com/

Poverty is the hard reality for many people in the communities surrounding the Pueblo Viejo mine in the Dominican Republic

Isidro Felix and Bladimir Morillo did not have high expectations when they heard Barrick had acquired a majority interest in the Pueblo Viejo mine. Felix, who is from the town of El Maricao, just three miles from Pueblo Viejo in the Dominican Republic’s Sanchez Ramirez province, sums up the prevailing view in his community at the time.

“Barrick will come, bring people from other countries to work at the mine, and forget about us.”

Morillo, who hails from El Naranjo, just two miles from the mine, says his community had similar sentiments. Today, however, 11 years after Barrick acquired its interest in Pueblo Viejo and 5 years after the mine entered production, perceptions have changed.

Mine Tales: Gold helped Arizona gain territory status – by William Ascarza (Arizona Daily Star November 2, 2014)

September 6, 2017

http://tucson.com/

Prized among civilization for more than 5,000 years, gold’s role as a precious metal influences world commerce and stimulates exploration. Its symbol, AU, represents the Latin word for gold: aurum.

Gold, the most malleable and ductile of metals, is also resistant to chemical attack and is highly reflective. One ounce of gold can be flattened to cover in excess of 150 square feet. Although widely distributed, it occurs in small amounts in less than one seven thousandth of an ounce (0.004g) per ton in the Earth’s crust.

An excellent conductor of electricity and heat, it has been used as a medium of exchange and is invaluable for industrial uses including metal alloys, computer circuitry, solders and jewelry. It was highly sought after by early European explorers including Francisco Vasquez de Coronado’s attempt to discover the Seven Cities of Cibola in 1540, and continues to play a critical role in Arizona’s mining history.

Philippines’ Duterte wants to keep open-pit mining ban – by Manolo Serapio Jr (Reuters U.S. – September 5, 2017)

September 6, 2017

https://www.reuters.com/

MANILA (Reuters) – Philippine President Rodrigo Duterte said on Tuesday he agreed with banning open-pit mining in the world’s top nickel ore exporter given the environmental damage it causes but would give mining firms time to find other ways to extract minerals.

Duterte said in a televised speech that the extraction process was a “dangerous environmental activity” and that he had asked Environment and Natural Resources Secretary Roy Cimatu “to look into the eventual closure of open-pit mining”.

“I agree with (former Environment Secretary) Gina Lopez that that has to stop some time. But I’ll give the mining companies enough elbow room … for eventual change in the modality of getting what’s inside the bowels of the earth,” Duterte said.

Protecting livelihoods is key to mining the DRC’s riches – by Nelson Alusala (Institute For Security Studies – September 6, 2017)

September 6, 2017

https://issafrica.org/

Conflict minerals can only be properly regulated if communities’ welfare is part of government planning.

The Democratic Republic of the Congo (DRC) has the potential to become Africa’s richest economy, going by the quantities of its natural resources. At the centre of the riches are over 80 million hectares of arable land and over 1 100 types of minerals and precious metals.

But despite the DRC’s wealth, the livelihoods of ordinary citizens remain dismal. With barely any government structures in some of the country’s remote communities, people have learnt to fend for themselves. The country’s human development index dropped steadily from 105th in 1980 to 176th out of 188 in 2014. And with election uncertainties this year, the general situation in the country could worsen, according to the African Economic Outlook.

Research by the Institute for Security Studies (ISS) among the mining communities in South Kivu reveals critical issues at the centre of the economic well-being of such people. These small-scale or informal miners live in villages, most of them hardly accessible.

Teck Resources slides 7% after Chinese sovereign wealth fund slashes stake – by Geoff Zochodne (Financial Post – September 6, 2017)

September 6, 2017

http://business.financialpost.com/

Vancouver-based Teck Resources Ltd. announced Tuesday that a Chinese sovereign wealth fund has nearly halved its stake in the Canadian miner, a decision that comes amid signals Beijing wants state-owned enterprises to invest more at home.

Teck said one of the subsidiaries of China Investment Corp. had sold, in a private transaction, 42 million Class B subordinate voting shares of Teck, worth about 7.36 per cent of the outstanding Class B shares. CIC still indirectly holds about 10.4 per cent of the outstanding Class B shares, Teck said.

The company’s stock fell 6.68 per cent Tuesday, closing at $29.47 on the Toronto Stock Exchange. Teck said it was informed by CIC that the fund’s transaction was “in the ordinary course of its portfolio adjustment” and that it plans on holding onto its remaining shares as a long-term investor.

First female general manager at Kalgoorlie Super Pit promises to shake up status quo – by Bettina Arrow , Sam Tomlin and Jarrod Lucas (Australian Broadcasting Corporation – September 6, 2017)

September 6, 2017

http://www.abc.net.au/

The first woman to run Kalgoorlie’s iconic Super Pit has promised to shake up the status quo at Western Australia’s most famous gold mine. Cecile Thaxter officially began as general manager at Kalgoorlie Consolidated Gold Mines on Monday, taking charge of more than 1,100 workers and millions of dollars in gold reserves.

Born in Jamaica and educated at Columbia University in New York, Ms Thaxter worked in investment banking prior to shifting into mining, where she worked in various executive roles for Super Pit co-owner Newmont Mining. As mining companies continue to push for greater female representation in senior roles, she said she was delighted by the accomplishment.

“Not necessarily for the first [woman], but for the second, third and others that come along.” Having most recently managed Newmont’s Phoenix/Lone Tree mine in Nevada, Ms Thaxter comes to Kalgoorlie-Boulder at an interesting juncture in the mine’s life.