Republic of Mining

How to finally ignite Ontario’s Ring of Fire – by Heather Hall and Ken S. Coates (Thunder Bay Chronicle-Journal – May 23, 2017)

May 23, 2017

http://www.chroniclejournal.com/

Premier Kathleen Wynne has jumped into the long-standing debate over the Ring of Fire in Northern Ontario. Last week, she called on northern chiefs to seize the province’s offer to spend $1 billion on crucial road development and to not “squander” the opportunity for economic development in an area desperate for work and social improvements.

The premier’s blunt intervention is a sign of the pent-up frustration among governments, companies and indigenous communities about the slow progress and endless negotiations surrounding the region’s vast deposits of chromite, nickel and other minerals.

While the premier may feel frustration, in Northern Ontario there is a widespread feeling in many indigenous communities that the infrastructure needs of resource firms get more attention from government than the serious community infrastructure deficits that have existed for years. Many indigenous communities in Northern Ontario, especially in the Far North, have to deal with a variety of deplorable conditions, including over-crowded housing, a lack of clean drinking water, limited or non-existent road access, and a myriad of social, economic and cultural challenges.

BHP talks up Saskatchewan potash project – by Matt Chambers (The Australian – May 23, 2017)

May 23, 2017

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

BHP’s board could have the most expensive single development approval decision in the miner’s history in front of it next financial year, in the form of a $US4.7 billion ($6.3bn) investment in the Jansen potash project in Saskatchewan.

Lost in the ramp-up of activist fund Elliott Management’s hostilities last week was the revelation that the miner is nearly ready to give approval to the first production stage of the Jansen project, where it has approved $US3.8bn to sink 1km-deep shafts to get to the big potash deposit.

The enthusiastic BHP mood around potash will create trepidation among some investors that the Elliott push to create value through an oil and gas restructure and share unification is accelerating potash development, while Canadian analysts have queried whether the global potash market can support it.

Botswana Clash With Billionaires Could Tarnish Its Reputation As Resource Investor’s Paradise – by Kenneth Rapoza (Forbes Magazine – May 2, 2017)

May 23, 2017

https://www.forbes.com/

At first glance, there is simply no country like it in Africa. Within the continent, Botswana is considered to be the crème de la crème. It’s corruption perception score is better than every BRICS nation plus Mexico, according to Transparency International. It’s resource rich, known mainly for its diamond wealth, and has rolled out the red carpet for foreign firms with what seems like reliable, steady rule of law. This is the place to be.

Some say not so fast. Deloitte Botswana senior manager, Brian Watts, argues that appearance belies a true scale of graft. It is done by multiple actors all throughout the value chain. Watts estimates at least 5% loss due to fraud even in the private sector, in telcos.

Most cases are not disclosed to the public, Watts said during an event for whistleblowers back in March. In mainly state-controlled natural resources sector the stakes are much higher.

From Yukon to Patagonia, Gold Explorers Stir After Sleep – by Danielle Bochove (Bloomberg News – May 18, 2017)

May 23, 2017

https://www.bloomberg.com/

From Canada’s Yukon to southern Patagonia, outbreaks of gold-rush fever are popping up as bullion markets stage a tentative recovery.

The number of holes drilled at gold deposits has been rising steadily for more than a year, according to S&P Global Market Intelligence. And while early-stage exploration budgets haven’t kept pace with spending at existing mines, prospecting hot spots are starting to pop up in traditional destinations Canada, Australia and Latin America.

In some parts of Argentina, exploration has jumped about 50 percent, mainly for lithium but also for gold in provinces such as Santa Cruz, according to state-controlled energy company YPF SA. Chile’s government also sees a pickup this year with prospectors focusing on both copper and gold. Colombia is also attracting more attention.

Mining magnate Frank Giustra takes a break from producing Blade Runner sequel to return to his first love — mining – by Natalie Obiko Pearson (Financial Post – May 20, 2017)

May 23, 2017

http://business.financialpost.com/

Bloomberg News – Frank Giustra likes to see big where others think small. The Canadian mining maverick’s latest target is a subterranean patch of red earth in southwestern Mexico. In January his new undertaking, Leagold Mining Corp., bought the Los Filos mine from Goldcorp Inc. for US$350 million.

It wasn’t the open pits churning out 200,000-plus ounces of the precious metal that caught this attention — it was the untapped deposit stretching for roughly 600 meters below. “We just looked at it and thought: This is a jewel,” Giustra, 59, said in an interview at his downtown Vancouver office, where a George Rodrigue blue dog painting hangs at the entrance.

The plan is to use Los Filos to build “a major gold producer over the next two, three, four years,” he says. “Unless the world changes dramatically, I think we’ll pull it off.” Giustra has a track record of finding the sparkle in the dirt. He’s used what he calls a grow-by-acquisition model to help build Endeavour Mining Corp. as well as a predecessor to Goldcorp, which is now one of the largest gold producers and Leagold’s biggest shareholder.

Rex Murphy: Notley learns a hard truth about social licence — it’s not meant to be granted, ever. That’s the point – by Rex Murphy (National Post – May 20, 2017)

May 23, 2017

http://news.nationalpost.com/

Social licence is one of those phrases, like cultural appropriation, or — a while back — civil society, that just seem to pop into lexical existence, almost out of nowhere, and instantly take on the authority of unchallenged and long-accepted concepts. They are mouthed in every parliamentary speech, are munched over by the solons of the afternoon panel shows, and crowd the editorial and opinion pieces of all the finest newspapers.

Yesterday they were unheard and unseen. Today they are presumed to be the boundary stones of argument and discussion. It is all so fast. One other note on usage: these terms and their semantic kin usually emerge from the fertile lexicography of the social justice camp, which is only appropriate since “social justice” is itself a term from the same fertile semantic factory.

Today, I turn to social licence (I’m saving “cultural appropriation” and its many novelties and self-contradictions for another day). Justin Trudeau is a fan of social licence. Speaking before the high council of the Sanhedrin at the Calgary Petroleum Club, before he was prime minister, Trudeau (as is his way with nebulous but high sounding concepts) gave the vague, trendy formulation full authority:

Dungeons of gold: Sex, booze and braais in underground mine cities – by Graeme Hosken and Jan Bornman South Africa Times Alive – May 22, 2017)

May 23, 2017

http://www.timeslive.co.za/thetimes/

Millions of rands in sex, food and alcohol is being traded in secret underground cities linked to illegal mining activities in small towns such as Welkom in the Free State.

The town, once a hive of legal mining activity, was the site of one of the worst illegal mining disasters South Africa has seen when at least 34 “zama zamas” were killed in an underground explosion last week. In the aftermath of the explosion illegal miners, police and mine security experts have told stories of underground passages and tunnels in which everything is available for a steep price.

The existence of more than 6000 disused gold, chrome, diamond and platinum mines across South Africa has allowed for the creation of a thriving underground economy. One mining expert says the underground industry supports thousands above ground.

Mining world looks to Northern Ontario for innovation – by Norm Tollinsky (Sudbury Mining Solutions Journal – May 18, 2017)

May 19, 2017

http://www.sudburyminingsolutions.com/

Congratulating mining contractor Cementation for its grand prize victory at the Disrupt Mining event co-sponsored by Goldcorp and Integra Gold during the PDAC in March, Rick Howes, president and CEO of Dundee Precious Metals made an observation about the important role that Northern Ontario plays in the global mining industry.

“I’m a Northern Ontario boy. I spent most of my career in Northern Ontario and I see how far we’re spreading our influence globally,” Howes told a standing room only audience attending a panel discussion sponsored by the Centre for Excellence in Mining Innovation.

Fellow panelist Fred Stanford, former president of Ontario Operations for Vale and currently president and CEO of Torex Gold Resources works in Mexico, said Howes. “I work in Europe and Africa.”

Rick could have gone on an on. Roy Slack and Alun Price Jones, the two Cementation executives who are championing the company’s innovative injection hoisting solution that wowed the Disrupt Mining judges are from North Bay.

Canadian Industry leaders debate state of mining technology (Sudbury Mining Solutions Journal – May 18, 2017)

May 19, 2017

http://www.sudburyminingsolutions.com/

Following are edited excerpts from a Centre for Excellence in Mining Innovation (CEMI) panel discussion at the PDAC March 6th featuring Zachary Mayer, manager, mine technical services, Kidd Operations, Glencore; Rick Howes, president and CEO, Dundee Precious Metals; Fred Stanford, president and CEO, Torex Gold Resources; and Conor Spollen, COO, Canada and the U.K., Vale Canada. The discussion was moderated by Steve Paikin, host of the popular TV Ontario current affairs program, The Agenda.

Steve Paikin: What are the most pressing technology problems facing the underground mining industry?

Zach Mayer: At Kidd, we’ve done a lot over the last four or five years…We have autonomous loaders and Canada’s largest ventilation-on-demand system. We have wireless communication, proximity warning, collision avoidance and super sophisticated geotechnical modelling.

From my perspective, the hardest thing is just selling the idea of why we need to put all this stuff in, what it’s going to do for us. Coming up with a business case has always been a challenge. Luckily, we have the right people in the right places who understand the KPIs we’re going after.

Pasinex shines at Pinargozu mine in Turkey – by Salma Tarikh (Northern Miner – May 1, 2017)

May 19, 2017

http://www.northernminer.com/

Pasinex Resources — the 50%-owner of the high-grade Pinargozu zinc mine in southern Turkey — has seen its shares climb more than 300% over the past year. Driving the share-price appreciation have been improvements at the Pinargozu mine and the soaring zinc price following supply shortages.

In a telephone interview from Turkey, Pasinex’s founder and CEO Steve Williams says the company has just started reaping the production benefits at Pinargozu.

“The big thing with us was that the last few years were terrible and tough times. And we took the decision to build the mine. This year is where we are really going to benefit … And we expect to show the market that we will have a very good year of zinc production.”

Canada’s Trevali picks up Glencore zinc mines in Africa – by Cecilia Jamasmie (Mining.com – May 18, 2017)

May 19, 2017

http://www.mining.com/

Trevali Mining’s (TSX:TV) shareholders approved Thursday a planned acquisition of Glencore’s two African zinc mines, in a transaction that makes of the Canadian miner one of the few multi-asset, low-cost global zinc producers.

The acquisition of about 80% of Rosh Pinah mine in Namibia and a 90% stake in in the Perkoa mine in Burkina Faso, will help the Vancouver-based firm’s total production double to about 410 million pounds per year.

The deal also includes gives Trevali an effective 39.24% interest in the Gergarub project in Namibia, an option to acquire the Heath Steele property in Canada, and certain related exploration properties and assets, it said in the statement.

South32 Needs a Spouse in a Hurry: Merge With Teck Resources – by David Fickling (Bloomberg News – May 19, 2017)

May 19, 2017

https://www.bloombergquint.com/

(Bloomberg Gadfly) — For all the debate about activist investor Elliott Management Corp.’s assault on the mining company now rebranding itself as BHP, there’s another question investors should be pondering: What’s going to become of Billiton?

South32 Ltd., the company spun out of BHP Billiton Ltd. in 2015 and consisting largely of sub-scale assets brought into the business in its 2001 merger with Billiton Plc, has put in a creditable performance of late.

As Elliott would be happy to point out, South32’s shares have risen about 28 percent since the split, compared with a 21 percent drop at its larger sibling. After two years of losses, analysts expect $1.24 billion of net income in the year through June. In a mining industry still groaning under the weight of its debts, South32’s $859 million net cash pile is the biggest after Coal India Ltd. and Hindustan Zinc Ltd.

AuRico Gold, First Nations ink impact benefit accord – by Henry Lazenby (MiningWeekly.com – May 19, 2017)

May 19, 2017

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – TSX-listed AuRico Metals and First Nations surrounding the Kemess underground project have signed an impact benefits agreement (IBA) for the Kemess underground project, in British Columbia, solidifying local relationships and ensuring the project provides economic opportunities and benefits to the region and local stakeholders.

Toronto-based AuRico signed the IBA with the Takla Lake, Tsay Keh Dene and Kwadacha First Nations, who are together called the Tse Keh Nay (TKN) – an alliance of three Sekani First Nations.

The IBA provides a framework that formalises the long-term cooperative relationship between AuRico and the TKN First Nations over the life of the project. The IBA captures the mutual commitment to consult and maintain an open, respectful and cooperative relationship throughout the development and operation of the Kemess underground project.

China claims breakthrough in mining ‘flammable ice’ (BBC.com – May 19, 2017)

May 19, 2017

http://www.bbc.com/

China has for the first time extracted gas from an ice-like substance under the South China Sea considered key to future global energy supply. Chinese authorities have described the success as a major breakthrough.

Methane hydrates, also called “flammable ice”, hold vast reserves of natural gas.
Many countries including the US and Japan are working on how to tap those reserves, but mining and extracting are extremely difficult.

The catchy phrase describes a frozen mixture of water and gas. “It looks like ice crystals but if you zoom in to a molecular level, you see that the methane molecules are caged in by the water molecules,” Associate Professor Praveen Linga from the Department of Chemical and Biomolecular Engineering at the National University of Singapore told the BBC.

Canada’s Boy Miners – by Robert McIntosh (Canada’s History — May 9, 2017)

May 19, 2017

http://www.canadashistory.ca/

Like children in other late nineteenth and early twentieth-century Canadian communities, boys in colliery towns and villages worked.

“Long before your city boys are astir the pit boy is awakened by the steam whistles, which blow three long blasts at half-past five o’clock every morning, thus warning him that it is time to get up. Breakfast partaken of, he dons his pit clothes, usually a pair of indifferent-fitting duck trousers, generously patched, an old coat, and with a lighted tin lamp on the front of his cap, his tea and dinner cans securely fastened on his back, he is ready for work.

He must be at his post at 7 o’clock. Off he goes, and in a few minutes with a number of others, he is engaged in animated conversation, and having a high old time generally, as he is lowered on a riding rake to the bottom of the slope.”

— Halifax Morning Chronicle, 4 December 1890

Like children in other late nineteenth and early twentieth century Canadian communities, boys in colliery towns and villages worked. Like other children also, these boys started to work at an early age. Even well after the turn of this century, according to mining historian Lynne Bowen, “if a boy who had lived in a coal town got tired of school and was anxious to make a little money, the obvious thing for him to do was to go to work in the mines.