Republic of Mining

Mining progress will bring jobs, benefits to Minnesota – by Russell Hess (Post Bulletin – January 19, 2017)

January 19, 2017

http://www.postbulletin.com/

Russell Hess, of Plainview, is political coordinator of the Laborers District Council of Minnesota and North Dakota and a board member of Jobs for Minnesotans.

There is no doubt that we all want to protect the Boundary Waters Canoe Area Wilderness. It is an undisputed national treasure, and we’re fortunate that it is in our own backyard.

That said, anyone implying that potential mining activities would destroy this pristine area shows a lack of understanding of the strict existing environmental and regulatory protections at the state and federal levels.

Twin Metals Minnesota, the company for which the federal government denied renewal of its mineral leases, has yet to even propose a project. The federal leases in question have been in place for more than 50 years and have been twice renewed by the federal government without controversy and with acknowledgment that the leases pose no adverse environmental impacts.

BHP Billiton, Vale closer to Samarco dam settlement – by Peter Ker (Australian Financial Review – January 19, 2017)

January 19, 2017

http://www.afr.com/

BHP Billiton and Brazilian miner Vale have struck a preliminary agreement with Brazilian prosecutors, which lays out a path for a future settlement of the largest legal claim eminating from the Samarco dam disaster.

The dam disaster killed 19 people in the Brazilian state of Minas Gerais in November 2015, and as the owners of Samarco, BHP and Vale have been locked in legal negotiations with Brazilian regulators and prosecutors ever since.

The Brazilian government agreed to a reparation and rehabilitation package worth 9.2 billion Brazilian Real ($3.7 billion) in March 2016, but that deal was suspended when independent federal prosecutors in Brazil lobbed a 155 billion Brazilian Real ($63.7 billion) claim in May 2016.

Vancouver junior inks $1 billion a year potash deal – by Frik Els (Mining.com – January 18, 2017)

January 19, 2017

http://www.mining.com/

Encanto Potash Corp. (CVE:EPO) on Wednesday announced the finalization of a blockbuster agreement with India’s national farmers co-operative to supply a minimum of 5 million tonnes of potash per year for the next twenty years.

Vancouver-based Encanto’s is advancing a $2.9 billion potash project in the Saskatchewan province of Canada in a joint venture with the Muskowekwan First Nation.

Encanto President Stavros Daskos said the deal is “clearly a defining moment for our company and the industry. India imports 100% of its potash and is susceptible to cartel-like practices from producers that can hurt its national food security.”

Indigenous community deserves our R-E-S-P-E-C-T – by Marilyn Scales (Canadian Mining Journal – January 1, 2017)

January 19, 2017

http://www.canadianminingjournal.com/

The holidays have been enjoyed, resolutions made, and the time has come to get a fresh start with a new year. And there is no better place to start than with respect for the indigenous peoples of Canada.

In November, the Canadian Aboriginal Minerals Association held its annual conference in Ottawa, and I was privileged to attend. The quality of the program was excellent.

It addressed jurisdictional, environmental, legislative, and legal aspects of the industry from both the community and industry viewpoints. Most importantly it addressed the needs and desires of the aboriginal youth who will be tomorrow’s leaders. They will be involved and knowledgeable.

Across all of the speakers a few key themes emerged. Indigenous people desire respect – be they First Nations, Metis, Inuit or others.

Buying Quebec hydro power a dim prospect for Ontarians – by Konrad Yakabuski (Globe and Mail – January 13, 2017)

January 19, 2017

http://www.theglobeandmail.com/

The Green Energy Act was written by Liberal-friendly renewable energy
lobbyists who managed to persuade the former Dalton McGuinty government
that there were big political dividends in making Ontario a wind and
solar powerhouse….As long as this madness goes on, instead of common-
sense energy planning, it’ll be one (price) shock after another for Ontarians.

U.S. wholesale electricity prices hit record lows in 2016 to the delight of millions of residential and industrial power customers who pay rates tied to the spot market. Cheap natural gas, which displaced coal as the main source of U.S. power generation last year, boosted the competitiveness of U.S. industrial power users and even led to a drop in residential electricity rates.

In October, U.S. residential electricity prices averaged 12.5 cents (U.S.) per kilowatt-hour, or about 16.5 cents (Canadian), according to the U.S. Energy Information Administration.

That may not sound like a bargain compared to Ontario, until you consider it is an all-in price that includes distribution and transmission costs, as well as taxes. It also marks a 2.1-per-cent price drop from 2015.

Moody’s base metals optimism rises despite seeing price fall back this year – by Henry Lazenby (MiningWeekly.com – January 19, 2017)

January 19, 2017

http://www.miningweekly.com/

TORONTO (miningweekly.com) – Market analyst and ratings agency Moody’s Investors Service has adjusted upwards its pricing sensitivities for base metals in 2017, but says despite the recent run-up in base metal prices not being sustainable, some of the positive sentiment will remain.

Moody’s said Wednesday it expected the market to be more volatile than usual, based on continued high trading activity, as traders and investors responded to changing market sentiment on growth expectations.

Metal prices have risen in response to stimulus spending in China and expectations that the incoming US Presidential administration under Donald Trump will increase infrastructure spending.

Trump Makes Canadian Mine Explorer With Zero Revenue Great Again – by Natalie Obiko Pearson (Bloomberg News – January 19, 2017)

January 19, 2017

https://www.bloomberg.com/

There’s one thing Donald Trump is already making great again: a small Canadian explorer with rights to one of the world’s largest undeveloped copper and gold deposits.

Northern Dynasty Minerals Ltd. has more than tripled since the U.S. election to approach a four-year high this week amid speculation the incoming administration will allow the explorer’s long-stalled Pebble project in Alaska to move ahead. Last week, the Vancouver-based company drummed up C$43 million ($32.4 million) in a secondary share offering to investors eager for a stake in a resource it estimates at more than 6 billion tons of ore.

That’s quite a revival for Northern Dynasty, whose sole project had appeared all but dead only a year ago. After peaking at a market value of almost $2 billion in 2011, the company’s luck turned — it was abandoned by Anglo American Plc and Rio Tinto Group amid a commodity rout, and it was obstructed by the Environmental Protection Agency after the project had already burned through more than $550 million.

Canada’s Strongbow’s UK partner to explore for lithium in Cornwall – by Barbara Lewis and Peter Hobson (Reuters Canada – January 19, 2017)

January 19, 2017

http://ca.reuters.com/

LONDON (Reuters) – British company Cornish Lithium said on Thursday it had reached a mineral rights agreement with Canada’s Strongbow Exploration (SBW.V: Quote) to explore for lithium in Cornwall, southwest England, stoking hopes for a British mining revival.

Cornwall historically was a mining hub for metals such as tin and copper and the British government is keen to resurrect the industry as it seeks to bolster the economy against the shock of leaving the European Union.

Cornish Lithium said new technology offered the potential to extract lithium from underground hot springs and to supply products to the rapidly growing battery market for electric cars and for power storage.

Contaminated mine ‘an embarrassment to Canada’, says Yukon judge – by Paul Tukker (CBC News North – January 18, 2017)

January 19, 2017

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

Supreme Court justice cites ‘unscrupulous and unchecked profiteering’ at BYG’s Mount Nansen mine

A Yukon judge has delivered a strongly-worded “wake up call” to Canadian taxpayers, who are now on the hook for another expensive mine cleanup in the territory.

Yukon Supreme Court justice Ron Veale approved a clean up plan for the abandoned Mount Nansen mine site, last spring — to be paid for by Ottawa — but issued his written decision this week.

He used the opportunity to lambaste the mine’s former owner, Toronto firm, BYG Resources, for an “unscrupulous history of … operational mismanagement” that left a big, toxic mess for government to deal with. “This case stands as a painful reminder of the lasting and egregious damage that unscrupulous and unchecked profiteering can bring about in the mining sector.

‘I don’t see a wave of M&A’: Gold miners eye partnerships to boost growth amid spending slump – by Sunny Freeman (Financial Post – January 19, 2017)

January 19, 2017

http://business.financialpost.com/

The world’s largest gold mining companies expect more consolidation in the sector ahead — even if their own companies are more interested in partnerships, top executives at the TD Securities Mining Conference said Wednesday.

For years, miners have been focused on slashing capital costs, many aiming to bring down all-in sustaining costs — the industry benchmark — to about US$700 an ounce.

But after years of declining reserves and with the gold price expected to fare better in 2017, many C-suite executives speaking at the conference said they expect a pick up in exploration and consolidation in the industry. However, many of the majors said they were more focused on partnering on projects rather than outright acquisitions.

NEWS RELEASE: Justice Department, EPA and The Navajo Nation Announce Settlement for Cleanup of 94 Abandoned Uranium Mines on The Navajo Nation (January 17, 2017)

January 19, 2017

January 17, 2017 – The United States and the Navajo Nation have entered into a settlement agreement with two affiliated subsidiaries of Freeport-McMoRan, Inc, for the cleanup of 94 abandoned uranium mines on the Navajo Nation. Under the settlement, valued at over $600 million, Cyprus Amax Minerals Company and Western Nuclear, Inc., will perform the work and the United States will contribute approximately half of the costs.

The settlement terms are outlined in a proposed consent decree filed today in federal court in Phoenix, Arizona. With this settlement, funds are now committed to begin the cleanup process at over 200 abandoned uranium mines on the Navajo Nation.

The work to be conducted is subject to oversight of the U.S. Environmental Protection Agency (EPA), in collaboration with the Navajo Nation Environmental Protection Agency.

On oil sands, ignore Jane Fonda’s foolery, listen to Trudeau’s truth – by Gary Mason (Globe and Mail – January 19, 2017)

January 19, 2017

http://www.theglobeandmail.com/

If you ever want an Albertan mad at you, mention something about the oil sands they don’t like. Last week, many in the province were setting their hair on fire over a visit by movie-star activist Jane Fonda and later comments by Prime Minister Justin Trudeau about Alberta’s energy future.

I get the animus Ms. Fonda’s visit incited. Albertans are tired of jet-setting do-gooders flying in from their L.A. manses, or whichever homes in whichever countries they might be coming from, to do passovers of the oil sands and proclaim how awful it all is.

Before Ms. Fonda, it was the actor Leonardo DiCaprio. Before Mr. DiCaprio, it was the singer Neil Young. Before Mr. Young, it was the director James Cameron. The script is always the same: Meet with environmental activists and First Nations leaders and decry the violation of the Earth they have witnessed.

Davos: The Rich Are Worried – by Gwynne Dyer (Gwynne Dyer Website – January 18, 2017)

January 19, 2017

http://gwynnedyer.com/

“I can’t wait to see how the incoming administration deals with AI (artificial intelligence),” said US Secretary of State John Kerry, in a less-than-gracious reference to the fact that the Trump team hasn’t got a clue about the real driving force in the changing world economy.

What was striking was that Kerry didn’t have to clarify his remark for the 2,000 “global leaders” – politicians, bureaucrats, business representatives and public intellectuals – who are in the Swiss alpine town of Davos for the annual World Economic Forum (WEF). They all know what he’s talking about.

This year’s Davos gathering is actually focused on the rise of populism and simple-minded attacks on globalisation (Donald Trump, Brexit et al.). That’s only to be expected, since the world’s ultra-rich are potentially threatened by that sort of thing. But they didn’t get rich by being stupid, and they have a fairly sophisticated analysis of what’s causing it.

Diamond Lobby Wants to Get Serious About Millennials – by Thomas Biesheuvel (Bloomberg News – January 18, 2017)

January 18, 2017

https://www.bloomberg.com/

The diamond industry is looking to up the ante on its effort to win over younger consumers more interested in gadgets and gastronomy.

The Diamond Producers Association lobby will ask its backers including top miners De Beers and Alrosa PJSC to raise its budget to as much as $60 million a year from $6 million, said people familiar with the plans, who asked not to be identified as discussions are private.

The group was set up in 2015 with an eye to try reviving the glory days of half a century ago when slogans like “a diamond is forever” were ubiquitous in popular culture.

Davos boosts platinum fuel cell outlook with hydrogen council launch – by Martin Creamer (MiningWeekly.com – January 18, 2017)

January 18, 2017

http://www.miningweekly.com/

JOHANNESBURG (miningweekly.com) – Hydrogen-powered fuel cell electric vehicles (EVs) offer the most natural solution for emission-free vehicles, discharging only water and requiring negligible change to current driving and refuelling habits, which is why 13 leading energy, transport and industry companies this week chose Davos to launch a global hydrogen initiative aimed at beating climate change.

Collectively representing revenues of €1.07-trillion and 1.72-million global employees, the new Hydrogen Council is going all out to position hydrogen as the answer to the world’s search for a carbon dioxide-free environment – which is a major boost for platinum-catalysed fuel cells.

At Davos, hydrogen was declared the clean fuel that can take the world into a no-carbon future, on the back of technology breakthroughs that include liquefied hydrogen now being safely transportable in much the same way as oil.