Republic of Mining

Maximum pain for commodities. Are we there yet? – by Clyde Russell (Reuters U.S. – November 26, 2015)

November 26, 2015

http://www.reuters.com/

Nov 26 – The dominant theme of commodity markets in recent months, in virtually every article or conversation at events, has been how much lower can prices possibly go. The answer is simple, they will stop falling when the point of maximum pain is reached.

With the prices of many commodities at multi-year lows and the broad Bloomberg Commodity Index close to its weakest in more than 16 years, many commodity producers, investors and traders are becoming desperate for any positive signs.

But any bottoming of prices, or indeed the start of a rally, requires more than desperation, it needs fundamental re-alignment of the existing supply-demand balances.

Rio Tinto says licence to operate will ‘make or break’ miners – by Amanda Saunders (Sydney Morning Herald – November 26, 2015)

November 26, 2015

http://www.smh.com.au/

Rio Tinto coal and copper boss Jean-Sebastien Jacques says thermal coal prices are likely to stay depressed for five to seven years but copper could stage a recovery in two years.

Thermal coal is languishing near US$51 ($70) a tonne, down 20 per cent this year, and a huge drop on the $US150 a tonne it was trading at during the peak of the boom in 2011.

Metallurgical coal prices, like thermal coal, also had “a long way to go” before there was any light at the end of the tunnel, Mr Jacques said.

Rio Tinto has been readying to bow out of coal, restructuring its Hunter Valley business and kicking off its staggered exit two months ago with the $US606 million ($867 million) sale of a minority stake in Bengalla, one of its three mines in the New South Wakes region, to New Hope Group.

[British Columnbia] Clark needs to step up on environment – by Stephen Hume (Vancouver Sun – November 25, 2015)

November 26, 2015

http://www.vancouversun.com/

Wednesday’s agreement between Premier Christy Clark and Alaska Gov. Bill Walker promising protection for shared environments from new mining developments on trans-boundary salmon rivers won’t quell the grassroots opposition swelling in the Northern U.S. state.

In fact, it might even make things more difficult for B.C.’s ambitious northwest development plans. Alaskan First Nations, fishing and environmental groups are already signalling a desire to trigger U.S. federal intervention through the International Joint Commission under the 1909 Boundary Waters Treaty.

What happened to the Northern Gateway and Keystone XL pipelines — once promoted as a sure thing to carry Alberta’s oilsands crude to tidewater — might serve as a cautionary examples.

Mud from Brazil dam burst is toxic, U.N. says – by Stephen Eisenhammer and Sonali Paul (Reuters U.S. – November 26, 2015)

November 26, 2015

http://www.reuters.com/

RIO DE JANEIRO – Mud from a dam that burst at an iron ore mine in Brazil earlier this month, killing 12 people and polluting an important river, is toxic, the United Nations’ human rights agency said on Wednesday.

The statement contradicts claims by Samarco, the mine operator at the site of the rupture, and Samarco’s co-owner, BHP Billiton (BHP.AX)(BLT.L), that the water and mineral waste contained by the dam are not toxic.

Citing “new evidence,” the UN’s Office of the High Commissioner for Human Rights said in a statement the residue “contained high levels of toxic heavy metals and other toxic chemicals”.

Keep Cobalt’s History Alive – by Nicole Guertin

November 26, 2015

Click here for crowdfunding campaign: https://fundrazr.com/campaigns/d143Pd

The Cobalt silver rush was more important than the Klondike gold rush but few people know of its existence. By buying a book, you are helping share the incredible history of Cobalt and raise money for the Historic Cobalt Legacy Fund.

My name is Nicole Guertin and I am the co-owner of the Presidents’ Suites with my partner Jocelyn Blais. The Presidents’ Suites consists of historical homes situated on the shores of beautiful Lake Temiskaming. We are passionate about the region’s unique history and would like everyone to share our passion.

Nickel goes below $4: Mining suppliers get hit – by Jonathan Migneault (Sudbury Northern Life – November 25, 2015)

November 26, 2015

http://www.northernlife.ca/

In a year that has seen two mine closures in Greater Sudbury, the low price of nickel has also resulted in a significant downturn in jobs available for the city’s mining supply and services sector, says the Sudbury Area Mining Supply and Service Association (SAMSSA).

SAMSSA executive director Dick DeStefano said his members have been mum on the impact low nickel prices has had on their businesses, but said it has definitely resulted in fewer contracts with larger firms like Vale and Glencore.

Nickel hit a multi-year low of US$3.75 a pound Monday, and climbed slightly Tuesday to $3.92 a pound by 3:50 p.m.

[Mining Potential] Shifting Afghan Gears: Build, Don’t Blast – by Edward Corcoran (Huffington Post – November 25, 2015)

November 26, 2015

http://www.huffingtonpost.com/

Ret. Strategic Analyst, U.S. Army War College.

Afghanistan has enormous economic potential as outlined in a recent US Army review; developing this is the key to stability. Despite fourteen years of US military support, the situation has deteriorated to the point that the senior US officer has stated flatly, “we have to provide our senior leadership options different than the current plan.”

This plan focuses on building up the capacity of the forces; it ignores the underlying reality that security simply cannot be achieved without development. No wonder Americans want out. Over 3,000 US service members and civilians have been killed and more than 20,000 wounded; direct, short-term costs come close to a trillion dollars.

Take heart, gold bugs. Here’s why you can be bullish about the metal – by John Shmuel (National Post – November 25, 2015)

November 26, 2015

The National Post is Canada’s second largest national paper.

Despite years of selloffs that have left gold prices at levels not seen since 2009, some think there’s reason to be bullish.

Gold prices dipped slightly Wednesday as investors drove up the U.S. dollar and market fears over the conflict between Turkey and Russia appeared to subside. Gold prices for the December delivery contract on the New York Mercantile Exchange fell 0.5 per cent to US$1,068.40 an ounce.

But HSBC Securities sees upside from current level, saying the precious metal will see an average price of US$1,205 next year — up roughly 11 per cent from current levels.

Battery power gains traction [Underground Mining] – by Norm Tollinsky (Sudbury Mining Solutions Journal – November 2015)

February 21, 2016November 26, 2015

http://www.sudburyminingsolutions.com/

Diesel still rules, but the beginning of a transition to battery-powered vehicles in underground mining appears to be underway.

Industrial Fabrication, a Sudbury-based manufacturer of underground utility vehicles, has three Minecat UT150-EMVs in operation – one at Vale’s Creighton Mine, one at Glencore’s Fraser Mine, both in Sudbury, and one at Goldcorp’s Musselwhite Mine 480 kilometres north of Thunder Bay in northwestern Ontario.

The Sudbury manufacturer first looked at battery power in 2004, but backed away because “at that time we felt the technology wasn’t ready for underground,” said Industrial Fabrication vice-president Daryl Rautiainen.

Dynamic Earth breaks ground on outdoor science park – by Ben Leeson (Sudbury Star – November 25, 2015)

November 26, 2015

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A slag dump-inspired slide, an amphitheatre stage made from a mining truck bed, a climb-on Creighton Mine – the functional will become fun when Dynamic Earth unveils a new outdoor science park, due to open in June 2016.

Staff from Science North and Dynamic Earth joined City of Greater Sudbury Mayor Brian Bigger for a press conference in the Atlas Copco Theatre on Wednesday to announce the science park, part of a $3 million attraction renewal initiative, for which the city has kicked in $250,000.

“Visitors to Dynamic Earth, no matter what their ages, get to work and they get to play with real mining equipment and technologies and, of course, learn about the earth and earth sciences,” said Julie Moskalyk, senior manager at Dynamic Earth.

Rough diamond bubble bust (Part 2) – by Martin Rapaport (Miningweb.com – November 25, 2015)

November 26, 2015

http://www.mineweb.com/

What can be done to save the diamond trade?

So how do we get out of this mess? While a comprehensive plan detailing all the necessary initiatives is beyond the scope of this article, there is one vital emergency measure that must be taken. The mining companies must urgently inject profitability into the diamond trade, by immediately reducing rough prices by 30 percent to 50 percent.

Discussion issue 1

Many in the trade oppose lower rough prices because they think this will not increase demand. They miss the point that the primary reason for the rough price drop is to rapidly and effectively increase profits and liquidity in the trade. An increase in demand due to a rough price drop is an added benefit.

PRECIOUS-Gold drops on dollar, but political risk tempers losses – by Clara Denina (Reuters U.S. – November 25, 2015)

November 25, 2015

http://www.reuters.com/

LONDON, Nov 25 The price of gold edged down on Wednesday on a rebounding dollar and expectations of a U.S. rate hike next month, but the downside was capped by retail demand emerging on tension between Turkey and Russia.

Turkey shot down the Russian jet near the Syrian border on Tuesday, saying the plane had violated its air space, in one of the most serious publicly acknowledged clashes between a NATO member country and Russia for half a century.

The tensions initially triggered a sell-off in equities and the dollar, while boosting safe-haven yen, gold and government debt.

Rough diamond bubble bust (Part 1) – by Martin Rapaport (Mineweb.com – November 25, 2015)

November 25, 2015

http://www.mineweb.com/

Artificially high rough diamond prices are going to collapse taking companies and banks with them.

The diamond industry is undergoing fundamental structural change as the rough diamond distribution system self-destructs amid collapsing rough prices. Frankly, it’s good news. Unprofitable, unsustainable and unfair rough prices have been the bane of our industry.

For too many years artificially high rough prices have stolen profits from our trade. The hard-working cutters, polished dealers, jewelry manufacturers, designers and retailers who have honestly added value to diamonds have not received their fair share of diamond profits.

Tailings Dams and Due Diligence – Questions for the Board, shareholders and potential investors – by Steve Mackowski (InvestorIntel.com – November 24, 2015)

November 25, 2015

http://investorintel.com/

A large tailings dam has burst. Its contents; millions of tonnes of sludge, a muddy deluge, have spewed forth and destroyed a local village with tragic loss of life.

The tidal wave of man-made misery and despair continues seemingly unstoppable contaminating water ways, destroying the ecology so necessary to the local indigenous people, polluting water sources, on its way downstream.

What is the overall impact to the local environment? What is the sociological loss? What is the cost of remediation? What is the consequent legal cost? What is the loss of reputation cost?

Dr. Copper’ plunges to US$2 for first time since 2009: ‘Things are quite horrible and about to get worse’ – by Peter Koven (National Post – November 25, 2015)

November 25, 2015

The National Post is Canada’s second largest national paper.

Copper goes by the nickname “Dr. Copper,” because the red metal is viewed as a barometer for the global economy. And unfortunately, it hasn’t been saying anything cheery of late.

Copper prices plunged back to US$2.00 a pound this week, the first time they have touched that level since the last gasps of the Great Recession in 2009. Prices are down nearly 60 per cent from their 2011 highs of more than US$4.60, and plenty of experts think they will keep going lower.

“What the market is telling us from the price is that things are quite horrible and about to get worse,” said Bart Melek, head of commodity strategy at TD Securities.