Republic of Mining

One Billion Tons of Iron Ore Headed for China as Miners Jump – by Jasmine Ng (Bloomberg News – July 13, 2017)

July 13, 2017

https://www.bloomberg.com/

Iron ore imports by China this year are on course to exceed 1 billion metric tons by a comfortable margin, breaking 2016’s record, after first-half figures showed another jump in cargoes and highlighted the ability of the top steelmaker to absorb rising supplies. Miners’ shares advanced.

Shipments in June were 94.7 million tons, up from 91.5 million in May, according to customs data on Thursday. In the first six months, imports rose to 539 million tons, 9.3 percent higher than the same period in 2016. Last year, China only just beat the 1 billion ton mark, importing 1.024 billion tons.

Asia’s top economy has been pulling in ever-greater volumes of low-cost ore to meet resilient demand from mills, who’ve benefited from rising steel prices in the second quarter.

We’re living in a world of energy contradictions – by Peter Tertzakian (Financial Post – July 12, 2017)

July 13, 2017

http://business.financialpost.com/

The clutch is completely disengaged between consumer trends and conjectures about the imminent demise of oil, making the future cloudy at best

Last week’s announcement by Volvo that every car, “it launches from 2019 will have an electric motor,” jolted oil investors. Then France amped up the newswire by switching on a ban: No more combustion car sales by 2040. To cap off a trilogy of electric vehicle (EV) proclamations, Elon Musk lit up the twitter feed with a photo of Tesla Motor’s first Model 3 production car.

Oil companies and investors should take note. These announcements are impacting the industry and will increasingly do so. But it’s not because electric cords are going to replace pump hoses anytime soon.

The demand for oil is as robust as it’s ever been, thanks to barrels that are priced 60 per cent lower than they were three years ago; the linkage of petroleum to the world economy is actually strengthening not weakening.

Controversial Alaskan gold mine could be revived under Trump’s EPA – by Brady Dennis (Washington Post – July 11, 2017)

July 12, 2017

https://www.washingtonpost.com/

The Trump administration has taken a key step toward paving the way for a controversial gold, copper and molybdenum mine in Alaska’s Bristol Bay watershed, marking a sharp reversal from President Barack Obama’s opposition to the project.

The Environmental Protection Agency on Tuesday proposed withdrawing its 2014 determination barring any large-scale mine in the area because it would imperil the region’s valuable sockeye salmon fishery. The agency said it would accept public comments on the proposal for the next 90 days.

“The facts haven’t changed. The science hasn’t changed. The opposition hasn’t changed,” said Taryn Kiekow Heimer, a senior policy analyst at the Natural Resources Defense Council, which has fought the proposed mine. “The fact that it’s the wrong mine in the wrong place hasn’t changed. But the politics have changed.”

South Africa Needs a New Direction – by Editorial Board (Bloomberg News – July 12, 2017)

July 12, 2017

https://www.bloomberg.com/

Unless something changes, it’s on the fast track to an economic disaster.

The International Monetary Fund just pointed out that “South Africa’s vulnerabilities have become more pronounced.” That’s one way of putting it. A potentially prosperous and dynamic economy is on the fast track to ruin. Altering its course will take real political reform.

Unemployment has risen five percentage points since 2008, to a hope-crushing 28 percent. The country’s population is expanding faster than its economy, which lately has grown at less than half the rate of sub-Saharan Africa as a whole. And its inequality is among the highest in the world.

These are the fruits of failed economic policy. Yet far from grasping the need for change, at a recent conclave of the ruling African National Congress, President Jacob Zuma championed ideas for entrenching his dominance and enriching his supporters.

Find solutions to support both mining and the environment – by Adam Ulbricht (St. Cloud Times – July 11, 2017)

July 12, 2017

http://www.sctimes.com/

Minnesota has a rich history of industry that has shaped the character of our state. From the Great Northern Railroad to the Minneapolis flour mills to premiere medical facilities, our state has contributed to the progress of the United States. But perhaps no other industry in Minnesota has played a larger role for that progress beginning in the mid-19th Century than that of mining.

I recently had the pleasure of spending time on two of our state’s three iron ranges. Here I got a first-hand look at the past and present of this proud industry. Coming from Central Minnesota, I share a mutual respect for mining given our own tradition of being a supplier of granite.

Minnesota’s commercial iron ore mining history dates back to 1884 with the opening of the Soudan Mine near the town of Tower on the Vermilion Range. The “Cadillac” of mines first started as an open pit but operations moved underground to capture the rich ore. By the time the mine closed in 1962, they had reached 2,341 feet below the surface, marking the deepest point in our state!

Tapping into potential graphite boom no easy task – by Jennifer Wells (Toronto Star – July 12, 2017)

July 12, 2017

https://www.thestar.com/

Any talk of electric vehicles draws intense response from readers, much of it positive, some of it smartly critical.

Here’s one. “Remember a Tesla battery contains about 150 lbs of graphite which is a product so toxic that it is only allowed to be mined in CHINA (where worker safety is of little importance).”

Yes, China produces the lion’s share of the world’s graphite, as key a component in the lithium-ion battery as the lithium itself. According to the U.S. Geological Survey, China produced 66 per cent of the world’s graphite in 2016. India was a distant second at about 14 per cent.

Not all Indigenous peoples oppose pipeline development – by Ken Coates (Globe and Mail – July 10, 2017)

July 12, 2017July 12, 2017

https://www.theglobeandmail.com/

Broad claims by politicians on behalf of Indigenous peoples reveal how little
public recognition there is of the great efforts Indigenous peoples have made
to secure a fair place for their communities and companies in the resource
sector. Pipeline firms have numerous agreements with Indigenous communities.
So do forestry and mining companies. Indigenous leaders may oppose one
project, but accept another.

The lessons for Canadian politicians should be clear by now. Not all Indigenous
peoples oppose development. Many, if not most, realize their hopes for economic
well-being and independence from the Government of Canada rest on carefully
planned and appropriately structured resource projects.

Ken Coates is a Munk Senior Fellow with the Macdonald-Laurier Institute.

Federal NDP leadership candidate and current Ontario MPP, Jagmeet Singh, is the latest politician to jump into the critical world of Indigenous affairs by offering quick and simple solutions to complex issues.

He has declared that he will, if elected prime minister, adopt and implement the United Nations Declaration on the Rights of Indigenous Peoples, stop the Kinder Morgan pipeline to the B.C. coast and kill the Energy East pipeline for good measure.

These are no doubt popular positions in some NDP circles, and even with significant numbers of Indigenous communities, but it is a mistake to project them uncritically onto Indigenous peoples.

Deep Sea Mining and the Controversial Solwara 1 Project in Papua New Guinea – by Peter Neill (Huff Post – July 11, 2017)

July 12, 2017

http://www.huffingtonpost.com/

Peter Neill is the Director of the World Ocean Observatory.

It has been some time since we’ve reflected on the issue of deep sea mining — the search for minerals of all types on the ocean floor.

We have seen already how marine resources are being over-exploited — over-fishing by international fisheries being the most egregious example, mining for sand for construction projects and the creation of artificial islands, the exploitation of coral reefs and certain marine species for medical innovations and the next cure for human diseases based on understanding and synthesis of how such organisms function.

The Deep Sea Mining Campaign, an organization based in Australia and Canada, has been following the saga of Solwara 1, proposed by Nautilus Inc. for offshore Papua New Guinea that continues to seek financing year after year since 2011.

Copper-Inflow Chatter Masks Looming Deficit, Top Miner Says – by Laura Millan Lombrana (Bloomberg News – July 11, 2017)

July 12, 2017

https://www.bloomberg.com/

A surge in copper stockpiles isn’t sounding any alarm bells with the world’s biggest producer as supply struggles to match demand.

After tumbling to a four-month low in June, global warehouse inventories have jumped about 15 percent this month, spurring concern that demand for the metal used in wiring and plumbing is waning. Prices have retreated in July.

Codelco Chairman Oscar Landerretche looks at the seesawing of stockpiles and futures contracts as a consequence of increasing financial transactions that can obfuscate longer-term supply and demand factors.

Canada wildfires disrupt industry, force 14,000 from homes – by Ethan Lou (Reuters U.S. – July 11, 2017)

July 11, 2017

https://www.reuters.com/

CALGARY, ALBERTA – Rapidly spreading wildfires in Western Canada’s British Columbia on Monday disrupted timber and mining operations, damaged equipment at a regional electric utility and forced thousands from homes in the interior of the province.

Authorities said at least 10 of more than 200 fires burning across the province were close to residential communities. Some 38,000 hectares (93,900 acres) had been ravaged as of midday on Monday. No deaths or serious injuries have been reported, but some 14,000 people have been forced from their homes.

West Fraser Timber Co said it had temporarily suspended operations at 100 Mile House, Williams Lake and Chasm. It said the sites have total annual production capacity of 800 million board feet of lumber and 270 million square feet of plywood.

Michelle Ash: Barrick Gold’s Chief Innovation Officer: Digital Mining

July 11, 2017

http://www.ideacity.ca/

Michelle Ash is the Chief Innovation Officer at Barrick, where she looks at how innovation can not only drive productivity in the existing business, but how it can be harnessed to deliver alternative business models.

She joined Barrick in January 2016, with more than 20 years’ experience in the mining and manufacturing sectors, with a focus on business improvement and change management.

Previously she was Chief Operating Officer for Acacia Mining in Tanzania, spearheading business improvement programs that resulted in operational improvements and cost-savings.

Cheryl Recollet : Wahnapitae First Nation Director of Sustainable Development – Mining and Indigenous People – New Cooperation

July 11, 2017

http://www.ideacity.ca/

The Wahnapitae First Nation, near Sudbury, has taken a proactive approach to promote environmental sustainability in dealing with mining companies. Cheryl Recollet, Director of Sustainable Development, will tell us how and why the partnership works.

Cheryl Recollet is the key point of contact for consultation and negotiation strategies with industry and the government — including implementing and monitoring environmental components of mining relationships.

George Salamis: Executive Chairman of Integra Gold Corp. – Mining Disruption: An Overview

July 11, 2017

http://www.ideacity.ca/

Last year he challenged the industry to “get off the sidelines and into the innovation game.” Get ready to be astounded by what that means.

With over 25 years of experience in the mining industry, George Salamis understands the opportunities. He issued his challenge at Integra’s 2016 Gold Rush Challenge, the industry’s largest ever crowdsourcing campaign. Now new technologies such as machine learning, artificial intelligence and virtual reality are being applied to mineral exploration, and George is in demand as a speaker who can explain what’s happening now, and what’s coming next.

Todd White: Executive Vice President and Chief Operating Officer of Goldcorp Inc. on Designing Mines of the Future (Idea City.ca – June 2017)

July 11, 2017

http://www.ideacity.ca/

Todd White is Executive Vice President and Chief Operating Officer of Goldcorp Inc. He has a multinational background in large-scale development projects, management systems and operational efficiency over two decades. He’s a strong voice for continuing innovation in the mining industry.

He was formerly Senior Vice President, South America at Newmont Mining Corporation, responsible for leading business excellence, operations and environmental stewardship.

Could DRC’s resource wealth be the key to ending its conflicts too? – by Keith Slack (Oxfam America – July 10, 2017)

July 11, 2017

https://politicsofpoverty.oxfamamerica.org/

If there is to be a chance at peace, comprehensive mining reforms are needed to fight poverty and violence in DRC.

Africa watchers will know that the Democratic Republic of Congo (DRC) is once again poised on the verge of violent conflagration. How the country got there and how it might pull itself back from the brink are of keen interest to those of us who work on the “resource curse.”
DRC’s pathways into violence, and likely out of it, are deeply connected to its vast mineral resources. Harnessing those resources for development, rather than empowering those who would rip the country apart, is DRC’s defining development challenge – one that implicates everyone with a stake in the country’s future: donor countries, mining companies, civil society, and of course the country’s citizens and government.

DRC’s current crisis stems from President Joseph Kabila’s defiance of the country’s constitution and failure to leave office at the end of his term last year, and the foregoing of elections to choose his replacement.