Republic of Mining

Mark Steen remembers… “My Old Man:” The Uranium King…Part 2 – The author debunks a few tall tales and tells what really happened in 1952 – by Mark Steen (Canyon Country Zephyr – April/May 2002)

March 31, 2017September 30, 2015

http://www.canyoncountryzephyr.com/

At the beginning of my first article in The Zephyr about my father, Charlie Steen, and his discovery of the Mi Vida mine and its consequences, I wrote that people couldn’t seem to resist the impulse to distort and rewrite the history of Moab’s most famous prospector. I pointed out that falsehoods about my father’s uranium discovery and his role in the Uranium Boom were now finding their way into print in historical publications.

Potato Chips & Bananas

Two good bad examples of people distorting the truth or concocting half-truths about my father’s role in changing the course of the uranium industry clearly illustrate this point. In Utah’s official centennial history, Utah: The Right Placeby Dr. Thomas G. Alexander, the author has my Dad feeding his family on “potato chips and bananas” while he searched for uranium “with a Geiger counter under one arm and a bundle of Geological Surveys under the other.”

Aside from the well-known fact that my father couldn’t afford a Geiger counter and the lack of printed geological information about the Big Indian area prior to the Uranium Boom, Dr. Alexander, who has three university degrees in history, actually seems to think that six people could live for more than two years on potato chips and bananas! I wonder what level of sobriety the old timer who spun that yarn was in when that tale was told?

“My Old Man:” The Uranium King (Part 1) – Charlie Steen’s youngest son ‘sets the record straight’ about the life and times of Moab’s most famous prospector – by Mark Steen (Canyon Country Zephyr – February/March 2002)

March 31, 2017September 30, 2015

http://www.canyoncountryzephyr.com/

My father, Charlie Steen, has always maintained that the truth about his discovery of the Mi Vida mine and its consequences is a much better story than the fiction and half-truths that people insist on perpetuating. Despite the fact that his uranium discovery is one of the most publicized and well documented mineral discoveries in history, people can’t seem to resist the impulse to distort and rewrite history.

Unfortunately, this isn’t confined to bar-room reminiscences and tales told by old miners in rest homes. Articles about other peoples’ roles in my father’s discovery and observations by individuals who never met any of the players involved in the events of fifty years ago are now finding their way into print in historical publications. These accounts range from hard-luck stories about people who staked the Mi Vida ore body before my father, but couldn’t raise the money to drill where they knew a fortune was awaiting them, to lies about grubstakers being cheated out of millions because they couldn’t prove they had financed Charlie Steen’s prospecting activities.

Perhaps the most absurd of all of these revisionist discovery stories is the one that has my father’s jeep-mounted drill breaking down two or three miles from his intended destination; and, since he couldn’t go any further, he supposedly decided to drill for uranium where his rig had come to a halt. In this patently false version, Utah’s premier uranium mining area owes its discovery more to mechanical failure than to human endeavor.

Glencore seen reluctant to step up asset sales to include top mines – by Eric Onstad and Olivia Kumwenda-Mtambo (Reuters U.S. – September 29, 2015)

September 30, 2015

http://www.reuters.com/

LONDON/JOHANNESBURG, Sept 29 (Reuters) – Debt-laden Glencore may unload all its agricultural assets instead of just a stake, analysts said, but the commodity group is unlikely to expand its divestment programme to include top mines.

Selling assets is one prong of a wider strategy by the Swiss-based trader and miner to cut about a third of its $30 billion debt and to regain the trust of investors after its shares tumbled by about three quarters this year to record lows amid weak global commodity prices.

On Tuesday, Glencore shares bounced and the group said it was “operationally and financially robust”.

Earlier this month, Glencore outlined a plan to reap $2 billion for its debt reduction plan by selling a minority stake in its agricultural business and also the rights to precious metals extracted from its copper and zinc mines, among other possible asset sales.

On Monday, Glencore provided a taste of what might come with the $8 million sale of a Brazilian nickel project.

Glencore Copper Mines Seen Top of China’s Asset Shopping List – by David Stringer (Bloomberg News – September 30, 2015)

September 30, 2015

http://www.bloomberg.com/

As Glencore Plc looks to reduce its debt load by selling assets, analysts say Chinese companies would be most interested in the Swiss trader’s copper mines.

With China’s economic slowdown roiling commodity markets, Glencore has announced measures to shore up its balance sheet, including issuing new shares, scrapping dividends and selling assets. While it hasn’t flagged its copper operations alongside options including the sale of stakes in agriculture assets and precious metals streaming deals, the China Mining Association, Argonaut Securities Asia Ltd. and Clarksons Platou Securities say the Chinese would be willing buyers.

China’s commodities companies are seizing on the turmoil in markets to fund or buy suppliers or assets. Iron-ore giant Vale SA signed four deals with Chinese counterparts in May including a credit agreement worth as much as $4 billion, while MMG Ltd., the overseas unit of China’s biggest state-owned metals trader, led a group that bought the Las Bambas copper project in Peru from Glencore last year for about $6 billion.

“If Glencore wanted to have some asset sales then they could definitely speak to some of these Chinese companies,” Helen Lau, a mining analyst at Argonaut Securities, said by phone from Hong Kong. Potential buyers are seeking assets with high grade, good logistics and low political risks, Lau said. “Of course the price is very, very important.”

Plan for cleaning up uranium tailings ready for approval – by Alex MacPherson (Saskatoon StarPhoenix – September 28, 2015)

September 29, 2015

http://www.thestarphoenix.com/

The cleanup of a derelict northern Saskatchewan uranium mine could move one step closer this week.

The Saskatchewan Research Council (SRC) — which is overseeing the multi-million-dollar Gunnar Remediation Project on behalf of the provincial government — will present its plan to cover the site’s three tailings deposits at a Canadian Nuclear Safety Commission (CNSC) hearing in Ottawa on Wednesday.

Canada’s nuclear watchdog will consider evidence presented by all interested parties, including the SRC and northern First Nations, before making its decision, which is expected in about six weeks, a CNSC spokesman said Monday.

The Gunnar mine site is located near Uranium City on the northern shore of Lake Athabasca, about 800 kilometres north of Saskatoon. The deposit was discovered in 1952 and mining commenced three years later.

When it was operational, the site featured an open pit mine, an underground mine, two acid plants, a uranium mill, and various ancillary buildings. Three tailings deposits totalling some 4.4 million tonnes and a large waste rock pile eventually accumulated on the site.

COLUMN-Trouble looms for developing countries as commodity revenues collapse – by John Kemp (Reuters U.S. – September 29, 2015)

September 29, 2015

http://www.reuters.com/

(Reuters) – Slumping commodity prices pose a serious challenge to economic and political stability in developing economies across Latin America, Africa, the Middle East and Asia.

According to the United Nations Conference on Trade and Development, 94 developing countries depended on commodities for more than 60 percent of their merchandise export revenues in 2012/13.

Sixty-three developing economies were considered “extremely commodity dependent” with commodities accounting for more than 80 percent of export earnings (“State of commodity dependence” April 2015).

Most commodity-dependent developing countries rely on raw material exports for more than 20 percent of their entire economic output, in some cases rising to more than 50 percent, according to UNCTAD (“Key statistics and trends” June 2015).

During the boom years, the value of commodity exports from developing countries jumped from $2.0 trillion in 2009/10 to $3.2 trillion in 2012/13, mostly as a result of higher prices, which gives some idea of the scale of revenues now at risk.

Why it’s too late to sell mining stocks but not too early to buy – by Steve Johnson (Australian Financial Review – September 28, 2015)

September 29, 2015

http://www.afr.com/

Steve Johnson is chief investment officer of Forager Funds Management.

China’s economy had me puzzled back in 2011. My understanding was that the country’s growth miracle was founded on exporting cheap goods and labour to the rest of the world. That, presumably, would make it highly dependent on global GDP growth.

Yet as the United States and Europe – which combined, make up some 50 per cent of global GDP – were muddling their way through the worst recession since the 1930s, China was reporting economic growth of well in excess of 10 per cent per annum. How is it possible for an export-driven economy to grow at double-digit rates when its main trading partners are shrinking?

As an Australian fund manager, I needed to answer that question. China’s hectic growth was driving voracious demand for Australian resources. That, in turn, was propping up our economy and sending resources stocks (we didn’t have one in the portfolio) to stratospheric heights.

My research uncovered all the usual bull and bear arguments. The bulls argued that China’s migration of its population from unproductive peasants to educated city-dwellers had many decades to run, and that China’s GDP per head was still a small fraction of that in the US or Japan.

How Alcoa Inc’s split could finally bring it together with Alcan – by Jonathan Ratner (National Post – September 29, 2015)

September 29, 2015

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

Alcoa Inc.’s plans to split into two publicly traded companies isn’t expected to be completed until the second half of 2016, but that won’t stop it from looking to the future, which may mean some big acquisitions down the road.

Dividing the upstream and downstream businesses will draw attention to the company’s sum-of-the-parts valuation, but Michael Gambardella at J.P. Morgan doesn’t think that represents real value creation. The analyst thinks the plan could lead to modestly higher overhead costs and won’t generate any savings.

He suggested Alcoa would be wise to take a second step and combine the upstream business with another large aluminum producer, which should create significant additional value in a depressed metal price environment.

“This potential value creation could occur from significant cost cutting opportunities with greater scale and better market conditions from supply cuts, and potentially from further consolidation activities triggered by such a transaction,” Gambardella told clients.

Mining industry facing major hurdles – by Douglas Morrison (Northern Ontario Business – September 25, 2015)

September 29, 2015

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Douglas Morrison is the President and CEO of the Sudbury-based Centre for Excellence in Mining Innovation (CEMI) and network director, Ultra-Deep Mining Network.

The mining industry, in Canada and elsewhere, is facing major challenges — now brought into sharp focus by weak demand and low prices. But the problems within the mining industry have been developing for some time and it is naive to think that increased metal prices, through increased demand, will solve this. And although ‘cost-cutting’ that most companies are using may limit some damage in the very short term, it will make it all the more difficult to go on to address the real issues — deep-seated issues that have been ignored for too long.

There are essentially five issues the mining industry Canada needs to address: people, mine productivity, environmental performance, exploration, and new mine development. Each of these will be discussed in turn over the next few issues and I believe that collective action by the industry is the only real way forward. But — first things first —people.

The demographics of the mining industry are reaching crisis proportions. For several years, the federal Mining Industry Human Resources Council (MiHR) has issued reports projecting the future demand and supply of every category of employee, highlighting the developing chasm of a shortfall of well over 100,000 over the next 10 years.

Ontario mining state of play – by Douglas Morrison (Northern Ontario Business – August 28, 2015)

September 29, 2015

Douglas Morrison is the President and CEO of the Sudbury-based Centre for Excellence in Mining Innovation (CEMI) and network director, Ultra-Deep Mining Network.

Ontario will have to confront a decline in the mining industry over the next five to 10 years. Major mining operations, such as Kidd Creek in Timmins, will close in five years’ time and there are no major operations of this scale in development, or new deposits of this scale being drilled off.

Moreover, the Prospectors and Developers Association of Canada (PDAC) has documented a large decrease in prospecting activity in the province. An operation of the scale of Kidd Creek takes about 10 years to bring into steady-state production — so if we started building one tomorrow, there would still be a production gap of at least five years.

In Ontario we have the largest, most comprehensive and most coherent mining service and supply sector anywhere in the world. This sector of the industry provides three to four jobs for every direct job in active mining operations, but as the total amount of mining production in Ontario decreases, the service and supply sector must contract also.

World’s best coming to Sudbury for mining games – by Keith Dempsey (Sudbury Star – September 29, 2015)

September 29, 2015

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

The Nickel City will host the 2016 International Mines Rescue Competition. Hosted by Workplace Safety North and Ontario Mine Rescue, the event will bring mine rescue teams from around the world for the competition, which will be held from Aug. 19-Aug. 26.

Vale, Glencore, KGHM, Goldcorp and Drager are sponsoring the event.

“Quite frankly, the competition we’ll see is second to none,” Alex Gryska, Canada International Mines Rescue Competition co-ordinator, said. “If you take a look at this event, you’re going to have volunteers and full-timers (taking part), so you’ll have individuals that are in this event who are full-time mine rescue responders, so the level of capability will be extremely high.”

Hosting the International Mines Rescue Competition in Canada has been something Gryska has been chasing for years.

“I’ve been connected with the International Mines Rescue body since 2001, and my colleagues oversee mine rescue in their respective organizations, so I’ve been connected with them,” Gryska said.

NEWS RELEASE: Northern Superior Initiates Final Preparations for Trial Against the Ontario Government: October 5th, 2015

September 29, 2015

www.nsuperior.com

Sudbury, Ontario, September 29, 2015 – Northern Superior Resources Inc. (TSXV: SUP) (“Northern Superior” or “NSR”) has completed preparations for its trial against the Ontario Government, set to begin October 5th 2015. The following press brief is intended to assist NSR’s shareholders, stakeholders and interested parties following the litigation.

Background

1. NSR is a small junior mineral exploration company with its head office in Sudbury. It explores for gold in Québec and Ontario. NSR is a reporting issuer in British Columbia, Alberta, Ontario and Québec.

2. Starting in mid-2005 and through to December 2011, NSR obtained certain mining claims (described below in more detail) under Ontario’s Mining Act. Under the provisions of the Mining Act in force at the time the claims were acquired, this entitled NSR to enter and exclusively use the areas of the claims as was necessary for prospecting and mineral exploration. With the mining claims, NSR also obtained the right to apply for further rights to extract minerals and to develop and operate a mine(s).

3. At the time NSR obtained its claims, nothing in the Mining Act provisions regarding mineral claims addressed Aboriginal consultation nor required anything from NSR in this regard. NSR assumed that Ontario had done or would do what was required in order to be able to grant NSR the exploration rights associated with the Claims and for NSR to be able to actually conduct the exploration it wished to carry out. No one suggested otherwise to NSR.

BHP Billiton sees strong earnings growth even in low carbon world (Reuters U.S. – September 29, 2015)

September 29, 2015

http://www.reuters.com/

MELBOURNE – BHP Billiton, the world’s largest miner, said on Tuesday it sees its earnings doubling over the next 15 years, even in a world where carbon emissions are cut to limit global warming to 2 degrees Celsius.

Under pressure from UK investors who fear fossil fuel assets could become worthless under tough climate policies, BHP released analyses of its copper, coal, oil, gas, potash, uranium and iron ore assets showing the company will hold up well under what it considers the most realistic scenarios.

Even with the 2 degrees C limit – equivalent to a rise of about 3.5 degrees Fahrenheit – that has been set for UN climate talks later this year, demand in 2030 for all of BHP’s commodities except thermal coal would be higher than in 2014.

Uranium would be the biggest winner as more nuclear power would be needed, BHP said. “In this scenario, our portfolio remains resilient, and our analysis indicates that margins remain strong and even increase in some commodities,” Chief Commercial Officer Dean Dalla Valle told reporters ahead of an investor briefing in London.

NDP lays out Northern Ontario platform – by Keith Dempsey (Sudbury Star – September 29, 2015)

September 29, 2015

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

An NDP government led by Tom Mulcair would spend $1 billion over 20 years to help develop the so-called Ring of Fire, the party’s northeastern Ontario candidates said Monday.

An NDP government would also make FedNor a full standalone regional economic agency and increase its funding by $12.6 million; and it would take a number of steps to improve the lives of natives living in first nations across Northern Ontario, the candidates said.

They outlined the party’s Northern Ontario platform during a press conference at the Northern Ontario School of Medicine in Sudbury.

“We’re the only party that has (a platform),” said Claude Gravelle, who is running to hold on his Nickel Belt seat. “We’re unique people in Northern Ontario. The highlights in this platform for me is the $1 billion in the Ring of Fire. The Ring of Fire has to be developed. The Ring of Fire will be developed, and when it’s developed, that will create jobs throughout Northern Ontario.”

Glencore Rebounds as Analysts Say $50 Billion Plunge Is Overdone – by Jesse Riseborough (Bloomberg News – September 29, 2015)

September 29, 2015

http://www.bloomberg.com/

Glencore Plc, the commodities group that’s lost almost $50 billion in market value this year, rallied in London as analysts said the rout probably didn’t reflect its true value and Citigroup Inc. wrote the management should consider taking the company private.

The Swiss company rose as much as 11 percent on Tuesday, clawing back some of the 29 percent slump yesterday driven by concern the company has too much debt to withstand the declines in commodities. Even so, Glencore’s credit-default swaps rose again today, signaling that the company has a 56 percent chance of default in five years, according to data from S&P Capital IQ’s CMA.

“The pummeling of Glencore yesterday was irrational,” Robin Bhar, an analyst at Societe Generale SA, said by phone from London. “Unless you think commodity prices are going close to zero, then this was overdone.”

Glencore has been embroiled in a China-led slowdown that’s hit prices for commodities from oil to copper to coal, heightening investor concern about its debt and sending the shares down 77 percent this year.