Republic of Mining

RPT-COLUMN-Coal price surge justified by China’s dynamics, for now – by Clyde Russell (Reuters U.S. – August 21, 2017)

August 21, 2017

https://www.reuters.com/

LAUNCESTON, Australia, Aug 21 (Reuters) – How much of the current surge in thermal coal prices in Asia is because of a fundamental shift in the supply-demand balance, and how much is down to speculative froth? This is a question often asked when a commodity experiences a strong gain – or drop – in price, especially when the fundamentals don’t appear to have shifted that much, at least on a casual view.

Virtually everybody in the coal industry can agree that the strong performance in seaborne thermal coal this year is being driven by market dynamics in top importer China. What’s harder to work out is whether this rally will run out of steam or whether there has been a structural change in the market.

The argument for a structural change in China is quite compelling. It goes a long way toward justifying some of the explosive 43.2 percent rally in spot cargoes from Australia’s Newcastle port in the past three months.

NORONT NEWS RELEASE: PROVINCE OF ONTARIO TO FUND RING OF FIRE ROAD PROPOSALS LED BY MARTEN FALLS, WEBEQUIE AND NIBIMINIK FIRST NATIONS

August 21, 2017August 21, 2017

http://norontresources.com/

TORONTO, ONTARIO—August 21, 2017—Noront Resources Ltd. (“Noront”) (TSX Venture: NOT) participated in a joint announcement today by Premier Kathleen Wynne and the Chiefs of Marten Falls, Webequie and Nibiminik First Nations, which formally committed provincial funding to two First Nations road proposals that will provide community and industrial access to the Ring of Fire Mining District.

Road Proposals

The provincial government agreed to support and fund the following road proposals which will connect First Nation communities to the Ring of Fire:

•An east-west road connecting Webequie and Nibinamik First Nations to the provincial highway network north of Pickle Lake (the “East-West Road”). This road will continue from the Community of Webequie to the Ring of Fire.
•A north-south community access road is being planned for construction by the Marten Falls First Nation with an option to expand the road to the Ring of Fire to support the development of chromite mining (the “North – South Road”).

News Release: Ontario and First Nations Moving Ahead With Road to Ring of Fire (August 21, 2017)

August 21, 2017August 21, 2017

Province Supporting First Nations Proposal to Build All-Season Access Road

Ontario is taking an important next step toward developing the Ring of Fire, working with Webequie, Marten Falls and Nibinamik First Nations to plan and construct a year-round access road into the proposed mining development site being pursued by Noront Resources Ltd. As part of this project, the province is also working with First Nations to build all-season access roads to their communities.

Premier Kathleen Wynne was in Thunder Bay today with the Minister of Northern Development and Mines, Michael Gravelle, to announce that Ontario will support First Nations to plan and construct an east-west road connecting the Webequie and Nibinamik communities to the provincial highway network north of Pickle Lake. This project would provide all-season access to both First Nations communities as well as into the Ring of Fire development.

The province is also supporting Marten Falls First Nation to plan and construct an access road connecting the community to the existing provincial highway network at Aroland/Nakina. Communities are working to begin environmental assessments of these projects by January 2018 and plan to begin construction in 2019, pending all necessary approvals.

Historicist: The Man the Rocks Talked To: A.P. Coleman uncovered Toronto’s prehistory, among other adventures – by Dennis Duffy (Torontoist.com – August 19, 2017)

August 19, 2017

http://torontoist.com/

Such a map as Coleman’s (and he drew many such, across Canada and elsewhere as he
took his geology students along on summer expeditions) was more than a guide to the
origins of the Sudbury Big Nickel that you can spy from the Trans-Canada. It helped
provide the kickoff for the exploitation of Northern Ontario’s mineral—as opposed
to timber—resources. It also promoted the growth of Bay Street, which has done so
much to reshape Ontario’s image and boost Toronto’s takeoff toward its present
position in the financial and commercial life of the country.

If you’re at the Evergreen Brick Works Market in the Don Valley, walk north along some 200 yards of lovingly created wetland. When you’ve gone about 50 yards past that, you will be on a little rise. Look behind over your shoulder for a view of the downtown skyline.

Then keep on walking until you get to a little cul-de-sac and look at the cliff face that you have been staring ahead at for the last while. It is overgrown. The small plaque in front of you states that you are facing one of the oldest geological formations in the Toronto region and that it was first “discovered” (let’s be more precise and call it “labelled”) in the 1890s by geologist A.P. Coleman (April 4, 1852–February 26, 1939), a scientist and public intellectual of great renown in his day and a figure still dimly remembered now. Coleman’s work on the traces of the last great ice age (the Pleistocene) enable us to view the Brick Works park within the broad perspective of the long history of our city.

Four warning signs that Teck’s spectacular gains are over – by David Berman (Globe and Mail – August 18, 2017)

August 18, 2017

https://www.theglobeandmail.com/

Teck Resources Ltd. rewards nimble investors who can move against the current, selling the stock when times are good and buying it when the outlook is dismal. Today, conditions are excellent for the Vancouver-based miner, and that suggests shareholders should consider departing from this roller coaster of an investment.

On the surface, this might not sound like a great idea, given Teck’s stellar second-quarter results, released late last month. Teck, which produces copper, zinc and steelmaking coal from mines in Canada, the United States, Chile and Peru, topped analysts’ estimates with a profit of $577-million or $1 a share – way up from a profit of just 3 cents a share a year ago.

Analysts had been expecting a profit of 90 cents a share, according to Reuters. The company’s debt levels are also falling, which is good. Net debt per share declined to $9.59, according to a report from Canaccord Genuity, down from $13.42 a share last year, which is a steeper drop than analysts had been expecting.

[U.S. Environmental Movement] What can really be done about foreign influence in elections? – by Gary Mason (Globe and Mail – August 18, 2017)

August 18, 2017

https://www.theglobeandmail.com/

Vivian Krause, a B.C.-based independent researcher and writer who has investigated
the role U.S.-based foundations play in the financing of Canadian environmental
groups claiming charitable status, has submitted a 200-plus page complaint with
Elections Canada on the same subject….“But Canadian elections should be fought
using Canadian resources. Tides has Canadianized its money through Tides Canada,
but that’s just cosmetics. They are breaking the spirit of the law here,
in my opinion.”

When an investigation by The Guardian pulled back the curtains on the winning campaign in the Brexit referendum, the newspaper made a somewhat shocking discovery: evidence of foreign intrusion.

It was revealed that factions behind the Leave campaign were employing the services of analytics firms based offshore: AggregateIQ in Victoria, and another in the United States, Cambridge Analytica, a company owned by U.S. billionaire Robert Mercer, one of the men who bankrolled Donald Trump’s campaign for the U.S. presidency.

The microtargeting strategies used by the Leave forces were highly effective and almost certainly swung the vote in their favour. But what has some concerned are indications that perhaps not everything about the involvement of the foreign entities was above board.

Exclusive: AngloGold Ashanti revives plans to spin off South Africa mines – sources – by Zandi Shabalala and Clara Denina (Reuters U.S. – August 18, 2017)

August 18, 2017

https://www.reuters.com/

JOHANNESBURG/LONDON (Reuters) – AngloGold Ashanti is considering separating its South African assets from the rest of its portfolio, two sources familiar with the matter told Reuters, three years after shareholders revolted against a similar effort.

Africa’s top bullion producer has hired Deutsche Bank to evaluate options but discussions are at an early stage, one of the sources said. AngloGold and Deutsche Bank declined to comment.

The miner is looking at listing its international assets, which include gold mines in Western Australia and Brazil, in London, while the South African assets, some of which will be sold as part of the plan, will remain in the existing Johannesburg listing, the sources added.

Booming thermal coal price on China demand cheers miners – by Henning Gloystein and Jim Regan (Reuters U.K. – August 17, 2017)

August 17, 2017

https://uk.reuters.com/

SINGAPORE/SYDNEY (Reuters) – Australian thermal coal prices for spot cargoes above $100 a tonne, lifted by reports of strikes and strong Chinese demand, are providing a boost in earnings and share prices for miners like Glencore and Whitehaven Coal.

A crackdown on illegal mining and pollution in China has curbed domestic supplies, just as a heat wave and lower hydro power output have boosted demand for coal for power generation, forcing up prices. A similar squeeze in 2016 pushed prices to $114 a tonne and miners are again eyeing windfall profits, despite warning that the market is volatile.

“Coal demand remains strong, especially in Asia,” said Paul Flynn, managing director of Whitehaven Coal (WHC.AX). “Imports of thermal coal into China have been higher than anticipated, and when combined with weather related constraints on supply from Indonesia and some production issues in Australia, have pushed up the price of seaborne thermal coal.”

BHP commits $2.5bn to extend life of Spence copper mine in Chile – by Cecilia Jamasmie (Mining.com – August 17, 2017)

August 17, 2017

http://www.mining.com/

Mining giant BHP (ASX:BHP) greenlighted Thursday a long-awaited $2.46 billion expansion of its Spence copper mine in Chile, which will add another 50 years to the operation’s productive life.

The decision comes at a time when copper prices have reached their highest levels since late 2014 and will boost BHP’s annual copper production by around 185,000 tonnes of copper over the first decade of the expanded operation, with first production expected in 2021.

Spence’s expansion contemplates the construction of a concentrator plant and a desalination plant at Mejillones port, located about 60 km north of Antofagasta city, which will be built and operated by a third party. BHP has committed to a 20-year lease nominally worth $1.43 billion.

Zinc Breaks Through $3,000 Barrier as Metals Rally Gathers Pace (Bloomberg News – August 16, 2017)

August 17, 2017

https://www.bloomberg.com/

Zinc surged above $3,000 a metric ton for the first time in almost a decade while aluminum approached a three-year high, adding momentum to a metals rally fueled by bets on tightening supplies and robust demand.

Zinc jumped as much as 5.8 percent to $3,132.50 a ton on the London Metal Exchange, the highest since 2007, before settling at $3,119 at 5:51 p.m. in London. Aluminum rose as much as 2.7 percent to the highest since September 2014, while nickel, copper and lead also advanced. The rally boosted mining shares, with Freeport-McMoRan Inc. among the biggest gainers.

An index of base metals has climbed to a more-than two-year high amid better-than-expected demand in China and a weakening dollar. The Asian nation is stepping up efforts to shut illegal aluminum and steel plants to cut emissions and excess capacity.

Rare earths make electric comeback after bust – by Henry Sanderson (Financial Times – August 16, 2017)

August 17, 2017

https://www.ft.com/

After a spectacular bust in 2012 and several years of stagnant prices, rare earths mined mainly in China are making a comeback.

The expansion of electric vehicles and the renewable energy industry are partly behind this year’s renaissance for the 17 minerals, which are also used in smartphones and consumer electronics. Back in 2010 their soaring price caused such angst in Washington over China’s stranglehold on the market that the subject earned a subplot on the House of Cards TV series.

Additional mining capacity, as well as end users turning to alternatives, triggered a dramatic price collapse in 2012. Five years on and it is the role of rare earths in permanent magnets used in electric vehicles and wind turbines that has reignited interest.

Sudbury gold explorer ready to take a chunk out of Quebec: Wallbridge Mining chases permit for bulk sample at high-grade gold project – by Staff (Northern Ontario Business – August 17, 2017)

August 17, 2017

https://www.northernontariobusiness.com/

A Sudbury junior miner is making preparations to extract a large bulk sample at an advanced gold project in northwestern Quebec. Wallbridge Mining announced that it has received a Certificate of Non-Liability from the Government of Quebec for the dewatering of the pit and ramp at its Fenelon Gold Project, and to take a 35,000-tonne bulk sample at the property, located 75 kilometres north of Mattagami.

The company said this allows them to proceed with an application for a certificate of authorization from the regional authority responsible for issuing permits. This review process is underway and typically takes 60 to 75 days.

After acquiring the old mine property last October, Wallbridge announced a positive prefeasibility study at Fenelon last February. Located in the gold-rich Abitibi region, it’s roughly on the same latitude – and just over the Quebec border – from the Detour Lake open-pit mine in northeastern Ontario.

Editorial: Terrorist attacks plague Burkina Faso – by John Cumming (Northern Miner – August 16, 2017)

August 17, 2017

http://www.northernminer.com/

This week has been a particularly bloody one for sub-Saharan, West Africa mining nations, with major terrorist attacks on targets a day apart in Burkina Faso and Mali.

In Burkina Faso’s capital Ouagadougou on Aug. 13, two attackers arriving on motorcycles — described as “very young” by one witness — shot dead 16 people, including at least eight foreigners, in a Turkish restaurant named Aziz Istanbul in what Burkina Faso President Roch Marc Christian Kaboré condemned as “a despicable attack that has Ouagadougou in mourning.”

The restaurant was said to be packed with foreigners, who had gone to spend the evening watching soccer on TV. In a counter assault that lasted until morning, the two attackers were killed by state security forces, five of whom were among the additional 22 people wounded, according to Agence France Presse. Some 40 people were freed by the counter assault.

Lonmin was once valued at billions, take a look at the troubled mine – by Dineo Faku (Independent Online – August 16, 2017)

August 17, 2017

https://www.iol.co.za/

CAPE TOWN – As South Africa commemorates the fifth anniversary of the Marikana shooting, Lonmin – which saw police gun down 34 mineworkers at a koppie outside the platinum producer’s Marikana Mine – today is a shadow of its former self and the platinum sector decimated. Around 80% of platinum mines in South Africa are under water and earnings negative at current spot prices.

In the past five years 70000 jobs have been lost in the industry as companies grappled to stay afloat, and another 20000 mine workers face the prospects of losing their jobs as AngloGold Ashanti, Bokoni Platinum Mine and Sibanye Gold flagged that they would mothball shafts.

Since 2012 Lonmin once valued in billions, has lost most of its market capitalisation and is now South Africa’s worst performing platinum stock on the JSE. On August 14, 2012, its market cap was £18.32bn (R317.38bn) and yesterday it was only at £307.85 million.

Casanova of the Klondike – by Pierre Berton (Globe and Mail – December 24, 2004)

August 17, 2017

https://www.theglobeandmail.com/

Of all the eccentric characters who made their pile in the Klondike, my favourite is Swiftwater Bill Gates, a moon-faced little American smooth-talker who was transformed from a penniless dishwasher in Circle City, Alaska, to a potential millionaire.

He might have become a millionaire, had he managed to hold on to his wealth, the bulk of which came from a share he held in Claim No. 13 on Eldorado Creek. Considered unlucky at first because of its number, it turned out to be one of the richest pieces of ground in the gold fields.

A legendary gambler and skirt-chaser, he dropped $500 in less than five minutes at faro and promptly stood drinks for the crowd at a cost of $112. He also lost $5,000 on one bet during a stud poker game he was just watching. When short of cash, he would borrow it at 10 per cent a month in interest so he could shoot pool at $100 a frame.