Republic of Mining

China’s Hunger for Commodities Wanes, and Pain Spreads Among Producers – by Clifford Krauss New York Times – January 9, 2016)

January 11, 2016

http://www.nytimes.com/

Chile is expanding its largest open-pit copper mine below the northern desert to dig up 1.7 billion additional tons of minerals, even as metal prices plummet around the globe.

India is building railroad lines that crisscross the country to connect underused coal mines with growing urban populations, threatening to dump more resources into an already glutted market.

Australia is increasing natural gas production by roughly 150 percent over the next four years, as energy companies build half a dozen export terminals to serve dwindling demand.

Across the commodities landscape, this worrisome mismatch mainly traces back to the same source: China.

Brazil mine disaster: Samarco downgrades Rio Doce waste levels – by Barry Fitzgerald (The Australian – January 9, 2016)

January 11, 2016

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

Satellite imagery has prompted the BHP Billiton and Vale-owned Samarco to claim that the volume of waste material released into the Rio Doce river system when its tailings dam in Brazil’s Minas Gerais state collapsed is less than first thought.

Initial reports after the devastating November collapse put the volume of tailings (a non-toxic mix of water, silica, fine iron ore and manganese) at more than 50 million cubic metres. That has now been downgraded to about 32 million cubic metres.

The lower figure nevertheless represents one of the biggest ever tailings dam failures. It was also one of the most deadly, with 17 people killed and two still listed as missing.

Goldman, JPMorgan, Glencore defeat U.S. lawsuit over zinc prices – by Jonathan Stempel (Reuters U.S. – January 7, 2016)

January 11, 2016

http://www.reuters.com/

A U.S. judge on Thursday dismissed a private antitrust lawsuit in which zinc purchasers accused affiliates of Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Glencore Plc (GLEN.L) of conspiring to drive up the metal’s price.

In an 87-page decision, U.S. District Judge Katherine Forrest in Manhattan said purchasers failed to show that the defendants artificially inflated zinc prices by violating the Sherman Act, a federal antitrust law.

“It remains possible that shenanigans drove up the price of physical zinc,” Forrest wrote. “But, at long last, plaintiffs have not adequately alleged that such price movement was due to a plausible antitrust violation, as opposed to parallel, unilateral conduct beyond the reach of that statutory scheme.”

Surat firms upbeat as prices of polished diamond recover in Jan – by Melvyn Reggie Thomas (Times of India – January 11, 2016)

January 11, 2016

http://timesofindia.indiatimes.com/

Surat: The new year has ushered in a positive note for the diamantaires in Surat. After facing a sharp decline in 2015, the polished diamond prices recovered in the new year giving hope to diamantaires over improved market condtions.

According to US-based Rapaport group, the certified polished diamond prices in various category rose by 0.50% to 4.7%. The increase was recorded for the first time after the polished diamond prices witnessed a continuous decline in 2015. According to Rapaport’s Rapnet Price list, the polished diamond prices in various categories decreased between 5.8% and 14.5% last year.

Market sources said that the polished diamond market sentiment improved in December due to shortages supporting prices and dealers filling last-minute holiday orders.

[Northern Saskatchewan] Gunnar mine tailings cleanup project underway – by Alex MacPherson (Saskatoon StarPhoenix – January 8, 2016)

January 11, 2016

http://thestarphoenix.com/

After getting the go-ahead from Canada’s nuclear watchdog, the Saskatchewan Research Council (SRC) has begun the process of cleaning up 4.4 million tonnes of radioactive tailings at a derelict uranium mine in northern Saskatchewan.

In November, the Canadian Nuclear Safety Commission (CNSC) approved part of SRC’s quarter-billion-dollar plan to “remediate” the Gunnar uranium mine, which was abandoned in 1964 with virtually no cleanup work.

Now, SRC is seeking a consultant to develop a detailed project plan for covering the tailings deposits with a at least 0.6 metres of earth or aggregate.

King Coal comes to Cape Breton: U.S. billionaire looks to resurrect the fabled Donkin mine project – by Joe O’Connor (National Post – January 11, 2016)

January 11, 2016

http://news.nationalpost.com/

Elin Nordegren, famously known as Tiger Woods’ ex-wife, had the New York gossip-mongers in a tizzy in early December.

Nordegren appeared at the launch of Marchesa shoes in a Marchesa dress with a plunging neckline and with Chris Cline, her billionaire ex-boyfriend — and her first boyfriend post-life-with-Tiger — on her arm.

Cline is often referred to as King Coal, a self-made man, straight out of West Virginia — where his grandpappy dug for the stuff with a pickaxe — an American success story. The 57-year-old owns a yacht with a submarine, and made a fortune by betting on American coal mining when no one else was willing to make that bet.

Gold down, but stocks turmoil keeps it close to nine-week highs – by Clara Denina (Reuters U.S. – January 11, 2016)

January 11, 2016

http://www.reuters.com/

LONDON – Gold retreated on Monday as the dollar rose versus the euro, but was still around a nine-week high as pressure on Asian stock markets continued to support investors’ flight to safety.

Asian shares sank to their lowest in over four years after the People’s Bank of China guided the yuan’s midpoint rate sharply stronger, a move that might calm concerns about a competitive devaluation but only added to market confusion as to Beijing’s ultimate intent on its currency policy.

European shares were steadier, slightly weighing on bullion prices, usually seen as a safer bet by investors.

Spot gold was down 0.1 percent at $1,103.06 an ounce by 1301 GMT, while U.S. gold futures gained 0.5 percent to $1,103.60.

Canada forgot to plan for its future by leaning on oil and the loonie – by Saeid Fard (Globe and Mail – January 9, 2016)

January 11, 2016

http://www.theglobeandmail.com/

Saeid Fard is a blogger and digital designer in Vancouver.

When the United States and much of world entered into a recession following the global financial collapse of 2008, Canadians escaped relatively unscathed, thanks in part to a well-regulated banking system that had greater reserve requirements and was less entangled in the global financial web than its U.S. and European counterparts.

But an unfortunate consequence of our insulation from global ills was that we did not subject ourselves to the kind of economic self-examination forced on other countries. Instead, consumer debt continued to rise, real estate prices continued to escalate and our economy grew worryingly reliant on just two industries: petroleum and housing.

Off the backs of those industries, Canada’s gross domestic product (GDP) grew by 19 per cent between 2010 and 2014. But most of that growth was driven by factors outside Canada’s control. China’s economy was booming and, with it, its insatiable need for resources.

Saudi Arabia’s Aramco may be world’s most valuable company — but it comes with a lot of baggage – by Yadullah Hussain (National Post – January 9, 2016)

January 11, 2016

http://news.nationalpost.com/

ANALYSIS – It may be the worst time for an oil and gas company to seek a public listing, but the world’s largest oil producer is contemplating just such a move.

Saudi Arabian Oil Co., or Saudi Aramco, confirmed Friday it’s studying “various options” to list “an appropriate percentage” of the company’s share on the market or list a bundle of its downstream subsidiaries.

The news, initially revealed by the powerful deputy crown prince Mohammad Bin Salman Al-Saud, comes at a curious time, as crude oil prices have fallen 45 per cent over the past 12 months and some analysts are not ruling out a drop to the mid-US$20s per barrel as early as February.

Despite the poor fundamentals, long-term oil bulls may not be able to ignore the prospect of a stake in a behemoth responsible for a daily output of 10 million barrels — or one out of every eight barrels produced in the world.

How this northeastern Quebec city is getting burned by the collapse in iron ore prices – by Damon van der Linde (National Post – January 9, 2016)

January 11, 2016

http://news.nationalpost.com/

SEPT-ÎLES, QUE. — At the corrugated-iron-walled congress centre in this northeastern Quebec city on a snowy late-November day, organizers of a chamber of commerce luncheon are turning away late arrivals.

They’ve run out of extra seating for members of the business community who have crowded into a dining hall decked out in Christmas cheer. But they’re not here for merriment. They’ve come to a presentation by Luc Dion, president of Sept-Îles’ economic development committee, about the region’s economy.

The gift many were hoping for ahead of the festive season was some relief from the economic crisis that has been grinding deeper into the region for the last several years, since iron ore prices fell from a high of nearly US$190 a tonne in early 2011 to a low of US$37 mid-December.

Brazil cautious on re-starting hydro dams after mining spill – by Luciano Costa (Reuters U.S. – January 8, 2016)

January 11, 2016

http://www.reuters.com/

SAO PAULO – Four hydroelectric dams along Brazil’s Rio Doce remain closed for an indefinite time after a deadly mining spill in November flooded the river with thick mud, according to water agency ANA.

ANA said in an emailed statement that only one of four hydro plants along the 800 km (497 mile) river, which runs through states of Minas Gerais and Espirito Santo, had requested to power up as the others continue to assess potential damage from the spill.

The bursting of a dam at the Samarco iron ore mine on Nov. 5 caused Brazil’s worst environmental disaster, releasing between 30 million and 60 million cubic meters (7.9 billion to 15.9 billion gallons) of mining waste. The resulting flood killed at least 17 people, left hundreds homeless and polluted the river.

KWG looks towards the East to finance its proposed Ring of Fire railway – by Henry Lazenby (MiningWeekly.com – January 9, 2016)

January 11, 2016

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – KWG Resources is looking to the Far East to secure funding for its proposed 340 km rail corridor, which the project developer believes holds the key to unlocking the vast mineral wealth of the James Bay Lowlands of Northern Ontario.

“The reason KWG is looking to China to fund its proposed railway line is to increase the odds of securing an offtake partner, which is the critical prerequisite to making the emerging Ring of Fire (RoF) mining camp economically viable. The Chinese are the ultimate offtaker, since they use most of the steelmaking raw material,” said KWG president and CEO Frank Smeenk in an interview with Mining Weekly Online.

He explained that ferrochrome did not have a terminal market place like precious metals did, but instead relied exclusively on contract trading – the same as with iron-ore and coal.

Ontario’s Nipigon River bridge fails, severing Trans-Canada Highway – by Amy Husser (CBC News Thunder Bay – January 10, 2016)

January 11, 2016

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

‘This is the one place in Canada where there is only one road, one bridge across the country’

A newly constructed bridge in northern Ontario has heaved apart, indefinitely closing the Trans-Canada highway — the only road connecting Eastern and Western Canada.

The Nipigon River Bridge has been closed for “an indefinite time due to mechanical issues,” according to the Ontario Provincial Police. The bridge remains open to pedestrian traffic.

Steven Del Duca, minister of transportation for Ontario, said in a statement late Sunday the ministry “will do everything they can do to restore the bridge quickly, while also making sure that the safety of the travelling public remains of paramount importance.”

Turning Sudbury’s regreening expertise into actual green – by Ella Myers (Northern Ontario Business – January 08, 2016)

January 11, 2016

http://www.northernlife.ca/

Protocol under development aims to turn local environmental knowledge into marketable product

Sudbury’s environmental destruction and subsequent reclamation is one of the city’s defining moments. From a blackened, barren nickel capital to a beacon of regreening and responsible mining around the world, Sudbury has come a long way since the 1970s.

A major project is germinating between the mayor’s office and Laurentian University that would capitalize on the expertise built from the recovery process.

Laurentian’s vice-president of research, Rui Wang, had introduced the Sudbury Protocol at the Greater Sudbury Development Corporation’s (GSDC) first Resourceful City talk in November.

[Only Road Between East and West Canada Severed] New Bridge crippled (Thunder Bay Chronicle-Journal – January 11, 2016)

January 11, 2016

http://www.chroniclejournal.com/

The newly-constructed Nipigon River Bridge has come apart, sparking a state of emergency in the Municipality of Greenstone and blocking traffic along the Trans-Canada Highway.

Provincial police closed off the road along Highway 11/17 near the Northern Ontario township Sunday afternoon. With the bridge out, this leaves motorists with no options to directly drive across the country. They would need to take a long detour through the United States.

In a news release, the Ministry of Transportation said that safety is their top priority and conditions are being assessed. The official MTO Twitter handle — @511Ontario — stated “duration of (closure) unknown at this time, possibly will be days.”