Republic of Mining

Rio Tinto shareholders flag culture of fear concerns – by Neil Hume and Jamie Smyth (Financial Times – November 27, 2016)

November 28, 2016

https://www.ft.com/

Large shareholders in Rio Tinto have voiced concerns about the miner’s handling of a payments crisis in Africa, accusing it of failing to stand behind senior executives in the face of possible anti-bribery investigations.

The decision to sack Alan Davies, an executive once in charge of a controversial iron ore project in Guinea, risks creating a culture of fear inside Rio, two investors told the Financial Times, warning it could slow decision-making and cost them future deals.

“This has to have an impact,” said one top 10 shareholder who declined to be named. “The message it sends [to senior managers] is that you’re expendable.”

Hooded protesters shut down Los Bronces copper mine in Chile again – by Fabian Cambero (Reuters U.K – November 26, 2016)

November 28, 2016

http://uk.reuters.com/

LIMA – Global miner Anglo American Plc (AAL.L) halted all activity at its Los Bronces mine in Chile after hooded protesters seized installations early on Saturday in the second illegal occupation of the copper deposit this month, the company told Reuters.

Anglo said it was not certain who the protesters were. The latest seizure immediately followed what Anglo called an agreement between companies it uses to provide services at the mine and the Federation of Contract Workers union.

But the union indicated that it was not satisfied, and would continue to demand better contracts for workers, blaming Anglo American for an “insufficient” offer given the rise in the company’s shares, which spiked with the price of copper after Donald Trump’s surprise victory in the U.S. presidential election earlier this month.

In Mineral-Rich DRC, Widespread Poverty Is Driving Children to Work in, Near Mines – by Noella Nyirabihogo (Mexico Star – November 8, 2016)

November 28, 2016

http://www.mexicostar.com/

Global Press Journal – Despite the immense mineral wealth in DRC, people here live in endemic poverty. In Rubaya, a powerful evidence of that poverty is the large number of young children who have dropped out of school or who have fended for themselves from an early age.

A 2009 law prohibits all forms of economic exploitation of any person under 18 years of age, and some of the larger mines have removed children from their sites to comply with that law, even as they declined to confirm there were children working at the sites.

In addition to the DRC’s law, the International Labour Organization states that mining is one of the worst forms of child labor, calling it a “work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or morals of children.”

Not all foreign investment is in Canada’s national interest – by Sean Speer and Shuvaloy Majumdar (Globe and Mail – November 28, 2016)

November 28, 2016

http://www.theglobeandmail.com/

Let us be precise: Chinese SOEs are controlled and influenced by
the Chinese government and are plainly agents of the Chinese state.
Former senior CSIS official Ray Boisvert has said: “state-owned
enterprises have the same marching orders or essentially the same
mandate or mission” as the broader Chinese state. These companies
have non-market objectives including corporate espionage, the
acquisition of strategic resources and geopolitical calculations.

New reports that Ottawa may relax restrictions on foreign investment in previously protected sectors such as broadcasting and telecommunications is welcome news. It’s the type of structural reform that could provide a long-term boost to the Canadian economy. The Trudeau government has already signalled progress on opening up the aviation sector and will deserve considerable credit if it maintains such ambition across other parts of the economy.

But such a liberalization should not be executed unthinkingly. Federal investment policy should be prepared to distinguish between state-owned enterprise (SOE) investment and investment from different sources – and maintain the capacity to exclude investments that aren’t in the national interest.

Digging deep for mining resurgence in Queensland’s northwest – by Tenton Akers (Queensland Courier Mail – November 26, 2016)

November 28, 2016

http://www.couriermail.com.au/

Mount Isa, Australia – A “SUPER pit” and revamped royalty scheme could be the key to preventing the mining boom from turning to bust in the state’s northwest. Mount Isa, the engine room of Queensland’s economy for 50 years, has had its setbacks over the decade due to poor mineral prices, but community leaders and residents are confident the ¬rivers of gold can flow again.

Straight-shooting local MP Robbie Katter said greater government incentives were needed, not just meaningless words filled with empty promises that have dogged the north for too long.

Pointing to a diagram drawn on his whiteboard at his Mount Isa ¬office, he floats the idea of a Canadian-inspired mining royalties “ramp up” scheme that he believes could be a game changer for the region.

Alberta makes $1.36-billion deal with power producers to shutter coal units – by Jeff Lewis (Globe and Mail – November 26, 2016)

November 28, 2016

http://www.theglobeandmail.com/

CALGARY — Alberta is paying a hefty price to soothe investor fears as it ditches coal-fired power in a massive shakeup to its electrical grid.

The province’s NDP government late on Thursday announced a deal to pay three major power producers $1.36-billion over 14 years as compensation for shutting down coal units years ahead of schedule. Funds will be paid using the province’s levy on large carbon emitters.

It also said it settled a dispute with Capital Power Corp. and reached tentative deals with Altagas Ltd. and TransCanada Corp. over cancelled power-purchase agreements, heading off a potentially costly legal spat. A dispute with Calgary’s city-owned utility, Enmax Corp., remains unresolved.

China’s iron ore imports on track to top 1 billion tonnes; India shipments surge – by Manolo Serapio Jr (Reuters India – November 25, 2016)

November 25, 2016

http://in.reuters.com/

MANILA – China’s iron ore imports from India surged in October and purchases from Australia grew slightly, data showed on Friday, with total shipments to the world’s top buyer of the steelmaking commodity on course to top 1 billion tonnes this year.

Shipments from Australia, which account for nearly two-thirds of China’s imports, rose 3 percent to 49.89 million tonnes last month, according to China’s official customs data. Shipments from No. 2 supplier Brazil increased 17 percent to 17.88 million tonnes.

China’s total iron ore imports were 80.8 million tonnes in October, the lowest since February, but the biggest volume ever for the month of October.

Gold Recovers From Nine-Month Low as Dollar’s Rally Fizzles – by Kevin Crowley and Joe Deaux (Bloomberg News – November 25, 2016)

November 25, 2016

https://www.bloomberg.com/

Gold pared a third weekly drop as the dollar halted a rally that sent bullion prices to a nine-month low and pushed silver into a bear market.

Bullion’s first gain in four days cut this week’s loss to 2 percent. Prices have tumbled as strong economic data and the prospect of more spending after Donald Trump’s U.S. election win boosted bets for higher interest rates. Investors are selling out of gold-backed funds at the fastest pace in three years.

The metal rebounded on Friday as the Bloomberg Dollar Spot Index retreated from a recent high. Gold’s decline earlier stalled at $1,171.18 an ounce, which is near a 61.8 percent retracement of the rally from December to July. The Fibonacci figure is used by some traders and analysts to determine support levels.

Dr. Copper hints mining sector officially out of intensive care – by Cecilia Jamasmie (Mining.com – November 24, 2016)

November 25, 2016

http://www.mining.com/

Prices for the metal soared again Thursday to more than $5,700 a tonne

Copper, until recently one of the worst performing commodities in the past two year, is having a great month, with prices up about 20% to more than $5,700 a tonne Thursday.

The rally, which began on the heels of Donald Trump winning in the US presidential election, has been partly based on speculation regarding the impact of the President-elect’s $500 billion infrastructure plans on demand for the metal.

It has also been fuelled by a pick-up in Chinese imports, responsible for some 49% of global copper demand, which is seen a good omen for the industry’s health.

Discredited DMR making ill-considered demands on struggling industry – by Martin Creamer (MiningWeekly.com – November 25, 2016)

November 25, 2016

http://www.miningweekly.com/

The Department of Mineral Resources (DMR) is making ill-considered demands that have little hope of being met. Instead of following the continent’s African Mining Vision and Zambezi Protocol, the DMR is going out on a dictatorial limb.

In April, when it gazetted a revised version of the Mining Charter outside the usual consultative process that characterised the first two charter iterations, it promised to engage with labour and business, but failed to keep that promise.

Instead, it cold-shouldered the Mining Industry Growth, Development and Employment Task Team, known as Migdett, which has been the three-part labour, business and government structure used to move South African mining forward.

Goldcorp job cuts ‘devastate’ Red Lake as Ontario town loses 3 per cent of workforce – by Cathy Alex (CBC News Thunder Bay – November 25, 2016)

November 25, 2016

http://www.cbc.ca/news/canada/thunder-bay/

‘Wall Street gets a cold, we get pneumonia,’ mayor says of job cuts at gold mine

The town of Red Lake, Ont., about 570 kilometres northwest of Thunder Bay, is “devastated” by the loss of three per cent of its workforce after the GoldCorp gold mine cut 27 jobs, says Mayor Phil Vinet.

“We’re a gold-mining town, and we’re subject to the whims or the rigours of Wall Street,” Vinet said. “When the price of gold on Wall Street drops, or Wall Street gets a cold, we end up with pneumonia.”

“You hate to lose even one of these jobs in the mine,” he added. “These are good jobs, they’re high paying and these people have lived in the community for a long time.” With people potentially leaving town to find new employment, the community will feel the impact on both the economic, and social level, said Vinet.

Glencore still digging Sudbury – by Ella Myers (Northern Ontario Business – November 25, 2016)

November 25, 2016

https://www.northernontariobusiness.com/

Ultra deep progress shows confidence in Sudbury Integrated Nickel Operations, says VP

Glencore plans to dig deeper into Sudbury in the upcoming year. Peter Xavier, vice-president of their Sudbury Integrated Nickel Operations, said they anticipate board approval shortly for two ultra deep mine sites in the region, at their flagship Nickel Rim and their proposed Onaping Depth, now under development.

“These projects are on the cusp of approval… they’re not guaranteed,” said Xavier, who presented an update on the miner’s Sudbury operations at a Greater Sudbury Chamber of Commerce luncheon, Nov. 24. At Nickel Rim site, they’re looking at extending their existing operations by 1,000 metres to a depth of 2,700 metres to access a sizable nearby deposit.

At their newer Onaping Depth site, they’re working on a deposit that could not be safely accessed until recent innovations in ultra deep mining technology. Xavier said both projects will move onto full-fledged development in 2017.

Everything you need to know about Saskatchewan’s potash industry cutbacks – by Alex MacPherson (Saskatoon StarPhoenix – November 24, 2016)

November 25, 2016

http://thestarphoenix.com/

Potash Corp. of Saskatchewan Inc.’s announcement that it plans to permanently reduce production at its Cory mine west of Saskatoon, resulting in 140 layoffs, and temporarily halt production at two other operations, is the latest in a long string of industry cutbacks this year. Here’s everything you need to know about Saskatchewan’s potash industry, and the challenges it faces.

Q: What does the province’s potash industry look like?

A: It’s dominated by three companies — PotashCorp, Mosaic Co. and Agrium Inc. — operating nine mines. A tenth, K+S Potash Canada’s Legacy project, is in the commissioning phase and expected to reach full production next year.

Together, these mines have a capacity of more than 30 million tonnes, or about half of total global demand. BHP Billiton has said its Jansen mine — which, at eight million tonnes per year, could be the world’s largest — could come online in the decade following 2020.

UPDATE 1-Kirkland Lake shareholders vote for Newmarket takeover -sources – by John Tilak and Nicole Mordant (Reuters U.S. – November 24, 2016)

November 25, 2016

http://www.reuters.com/

Nov 24 More than 80 percent of Kirkland Lake Gold shareholders have voted in favor of the mid-tier miner’s takeover of Newmarket Gold, according to two sources familiar with the situation, marking the end of a contentious process.

Over 90 percent of the Newmarket shareholders who voted on the acquisition also backed Kirkland’s all-stock offer, valued at about C$1 billion ($741.34 million) when announced on Sept. 29, the sources said on Thursday on condition of anonymity as the matter is confidential.

Kirkland Lake shares were down 0.3 percent at C$7.34 on the Toronto Stock Exchange on Thursday, while Newmarket’s stock was up 0.3 percent at C$3.43. Silver Standard’s stock was down 0.3 percent at C$13.12.

Traders Scramble for Aluminum in a World Saturated With Supply – by Mark Burton and Agnieszka de Sousa (Bloomberg News – November 24, 2016)

November 25, 2016

http://www.bloombergquint.com/

(Bloomberg) — The world is awash with aluminum, but on the biggest metals bourse it can be hard to get.

At one point this week, the metal was so scarce on the London Metal Exchange that traders paid the highest fee in four years to roll forward their short positions for one day. That shows the difficulty of buying back aluminum in a market where warehouse inventories are shrinking and one company controls at least half of the available stockpiles and short-dated positions.

The difficulty that metals traders experienced in finding aluminum on the LME may seem odd considering the abundant global supply of the metal. Harbor Intelligence estimates more than 13 million tons of aluminum are held in warehouses outside the LME’s network, enough to supply the U.S. for at least two years.