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Election 2015: Liberals, Greens and NDP Q&A on mining in Canada – by John Cumming (Northern Miner – September 30, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

With Canadians looking ahead to a federal election on Oct. 19, The Northern Miner submitted mining-related questions to the leaders of the four major political parties running across Canada. The following are the answers from the Liberal Party of Canada leader Justin Trudeau, Green Party of Canada leader Elizabeth May, New Democratic Party of Canada leader Tom Mulcair, and their respective parties (The Conservative Party of Canada did not respond):

The Northern Miner: In recent years the federal government has moved to streamline environmental permitting for miners by trying to avoid duplication of provincial efforts. Do you support this approach? Does the federal government have a unique role to play in avoiding catastrophic tailings dam failures such as the one we saw at Mount Polley in B.C. in 2014?

Justin Trudeau/Liberal Party: The Harper government has eroded the credibility of Canada’s environmental reviews by narrowing their application, limiting public participation and slashing the capacity of the federal government to protect the environment. They have ended over 50 years of environmental oversight in Canada by repealing the Canadian Environmental Assessment Act so that the federal government can sidestep environmental reviews of potentially harmful projects.

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Wynne’s losing performance: How Ontario’s growth-killing policies are sinking the economy – by Philip Cross (National Post – October 1, 2015)

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

Ontarians are clearly having buyer’s remorse after re-electing its Liberal government last year, with two-thirds now believing that Ontario is headed in the wrong direction. An exasperated Kathleen Wynne recently asked “What is it that especially disqualifies me for the job I’m doing?” as Premier of Ontario. Well, since she asked, let’s list the problems the Liberal government has created.

Start with persistent slow economic growth. Since 2002, real GDP growth in Ontario has been consistently below the national average, with a total shortfall of over 10 percentage points. Two-thirds of this gap occurred outside of recession years. Meanwhile, Ontario’s unemployment rate rose above the national average in 2007 for the first time on record and has stayed there.

Ontario has lost its traditional above-average income status in Canada. In the decades after World War II, real disposable income per capita in Ontario was 20 per cent above the national average; in the 1990s under the Harris government, it was still 10 per cent above average. In 2012 and 2013, incomes in Ontario fell below the national average for the first time ever.

Ontario now qualifies for equalization payments, confirming its shift from “have” to “have-not” status within Confederation.

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Coal threatens Poland’s image as European role-model – by Marcin Goettig (Reuters U.S. – October 1, 2015)

http://www.reuters.com/

WARSAW, Oct 1 (Reuters) – Coal mining has taken centre stage in the campaign for this month’s parliamentary election in Poland, an outsize political role that threatens the country’s hard-won economic growth and reputation in Europe.

Once a pillar of the communist-era economy, coal mines escaped the “shock therapy” that helped turn Poland into one of the European Union’s most resilient economies and a role-model for the rest of the bloc in investors’ eyes.

Successive governments have shrunk the sector, but kept it in state hands, conscious of public support for the miners, whose predecessors lost lives opposing martial law in 1981 and helped overthrow communism.

The mines have lost more than $850 million since the start of 2014 as coal prices slipped to decade lows, and efforts to prop them up have brought Poland into conflict with the European Union on both competition and environmental grounds.

The bloc wants to cut carbon dioxide emissions by at least 80 percent by 2050, and the highly polluting Polish hard coal sector will come under further scrutiny with the approach of talks on a global climate deal in late November.

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First Nations spar over pipelines – by Claudia Cattaneo (National Post – October 1, 2015)

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

A new dynamic is emerging in oil pipeline politics – First Nations clashing with First Nations.

On Wednesday, the same day the aboriginal-led Eagle Spirit pipeline proposal announced it secured support – after three years of trying — of every First Nation chief along its route in British Columbia, other First Nations chiefs were meeting in Vancouver to discuss forming a national alliance to fight oil sands pipelines.

Chiefs from Manitoba, Ontario and Quebec appeared before the annual assembly of the Union of B.C. Indian Chiefs and won unanimous backing for a resolution “to develop shared positions and coordinated strategies for addressing climate change and other environmental and cultural impacts of tar sands development.”

The visiting chiefs said they were inspired by their Western Canadian counterparts’ battles against Enbridge Inc.’s Northern Gateway and now want to “extend that wall of opposition out East to stop the TransCanada (Corp.) Energy East tar sands pipeline,” Grand Chief Serge Simon of the Mohawk Council of Kanesatake, a Quebec band, said in a statement.

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Vale Gain Spells Iron Pain With Giant Mine Ahead of Schedule – by Danielle Bochove and Juan Pablo Spinetto (Bloomberg News – October 1, 2015)

http://www.bloomberg.com/

The world’s top iron-ore producer has some bad news for the oversupplied market: its biggest project is running ahead of schedule.

S11D, part of the Carajas mining complex in northern Brazil, is on track to beat a targeted December 2016 start date, Vale SA Chief Financial Officer Luciano Siani said in an interview Wednesday.

The project — the industry’s largest and, according to Vale, the most profitable — will add 90 million metric tons of annual capacity to global supply, although Vale intends to control the speed at which it hits the market, Siani, 45, said in Toronto, where he is holding meetings with investors and analysts.

“We will manage the ramp up in order to preserve the premium for this high grade ore,” he said.
While S11D coming on stream sooner than planned would be a boon for Vale’s debt-reduction ambitions, it looms as another strain on an iron-ore market buffeted by a series of expansions by Vale and its main rivals in Australia at a time of slowing Chinese growth.

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Silver-coin shortage shows bright side of precious metal collapse – by Marcy Nicholson, A. Ananthalakshmi and Jan Harvey (Reuters U.S. – September 30, 2015)

http://www.reuters.com/

NEW YORK/LONDON/SINGAPORE, Sept 30 (Reuters) – The global silver-coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U.S. buyers racing abroad to fulfill a sudden surge in demand.

The U.S. Mint began setting weekly sales quotas for its flagship American Eagle silver coins in July because it can’t meet demand, and the Canadian mint followed suit after record monthly sales in July. In Australia, the Perth Mint sold a record of more than 2.5 million ounces of silver this month, nearly four times more than in August, and has begun rationing supply of a new line of coins this month, a mint official said.

“Silver demand is absolutely through the roof,” said Neil Vance, wholesale manager at the Perth Mint. “There seems to be a bit of frenzy as people think there is a shortage of silver. But in fact it is a (crunch in) manufacturing capacity.”

While demand has risen in response to the slump in spot prices to $14.33 an ounce in late July and its subsequent drop to fresh six-year lows below $14 an ounce in August, mint officials also said they were caught out by the sudden interest in coins.

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Arizona still tops in copper, up 28% in 50 years – by Tom Tracey (Verde Independent – September 29, 2015)

http://verdenews.com/

CLARKDALE — Copper: So important was it to the history of Arizona that it remains front and center on the state flag as a copper-colored star.

Over the years, Arizona has consistently produced more copper than all the other states combined. In fact, 28 percent more copper is being produced now than 50 years ago.

You don’t have to look far for copper. It’s found in airplanes, automobiles, coins, computers construction materials, cookware, radios, telephones, TVs and video games, according to the Arizona Farm Bureau.

“Here at the museum, we have a panel that shows where copper is used,” said Drake Meinke, founder of the Copper Art Museum in Clarkdale.

“For art purposes, about 3 percent of the world’s supply is fabricated into something. The other 97 percent is used for electrical, transportation and construction uses,” said Meinke.

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NEWS RELEASE: SNC-Lavalin exercises its option to sell its interest in Madagascar’s Ambatovy Nickel Project

MONTREAL, Sept. 30, 2015 /CNW Telbec/ – SNC-Lavalin (TSX: SNC) announced today that it has exercised its option to divest its five percent ownership interest and the balance of its loans in the Ambatovy Nickel Joint Venture Project, a laterite nickel mine operation and a hydrometallurgical processing plant in Madagascar, to Sumitomo Corporation, an existing partner, for a cash consideration of approximately CDN$600 million.

The Company was initially awarded an EPCM contract for the Ambatovy nickel and cobalt operation in 2007. The mine―the largest capital project in Madagascar’s history―has a capacity to annually produce 60,000 tonnes of refined nickel, 5,600 tonnes of refined cobalt and 210,000 tonnes of ammonium sulphate fertilizer for a minimum of 29 years. On September 21, 2015, the Ambatovy project achieved financial completion. Accordingly, SNC-Lavalin has chosen to exercise its put option and has received its proceeds.

“We are pleased to have been involved in building the Ambatovy operation with our joint venture partners these past seven years and helping this unique mining project achieve crucial key milestones over this time,” said Robert G. Card, President and Chief Executive Officer, SNC-Lavalin Group Inc. “With nickel being the country’s largest export, Ambatovy will continue to contribute to the country’s future growth and generate long-term economic and social benefits for the people of Madagascar.”

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Installment #4 – “My Old Man:” The Uranium King – The Final Chapter (for now) in the colorful history of Charlie Steen – by Mark Steen (Canyon Country Zephyr – August/September 2002)

http://www.canyoncountryzephyr.com/

In order to follow the history of the exploration and development of the Big Indian mining district it is necessary to understand a few things about the geology of the uranium ore deposits that were found after Charlie Steen discovered the Mi Vida mine. The most important thing to remember is that none of the ore deposits discovered during the next four years were exposed on the surface.

Although the ore bearing host rocks in the Moss Back member of the Chinle formation did outcrop in a few places along the face of the escarpment overlooking the Big Indian Wash, all of the uranium that was found after 1952 was discovered by exploration drilling. My father’s discovery proved that someone could walk over $100 million worth of uranium ore without knowing what lay beneath their feet unless they were willing to risk money on wildcat drilling in the search for totally hidden ore deposits.

Although the Big Indian mining district was developed from the single drill hole Charlie Steen had drilled through 14 feet of high-grade uranium ore on July 6, 1952, none of the other mines in the district were brought into production on the basis of one drill hole. After the Mi Vida mine proved the existence of uranium ore in the Chinle formation, drilling became the chief guide to finding more ore in the district.

Any drill hole that encountered good mineralization of minable thickness required additional drilling to block out the ore body.

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Installment #3 – “My Old Man:” The Uranium King – Charlie Steen strikes it rich and fight his partners to han on to the Mi Vida Mine – by Mark Steen (Canyon Country Zephyr – June/July 2002)

http://www.canyoncountryzephyr.com/

A few days after the Denver Post published its closely worded story about my father’s Big Indian uranium discovery, Moab’s Times-Independent ran an article based on the same announcement that Dad had given to the Denver newspaper. Although the Times-Independent article actually contained more details about the high-grade nature of the uranium mineralization contained in the discovery drill core, not a single person among the newspaper’s readership expressed any interest in helping Dad develop his prospect.

None of the area’s long-time uranium prospectors and miners were convinced that Charlie Steen had really found a uranium bonanza. Folks laughed when they heard that someone from Texas was claiming to have discovered a million dollars worth of uranium in a mining district that everyone knew the experts had already examined and written off as a loser.

In early September, Dad received a letter postmarked Casper, Wyoming from William T. Hudson, his former boss at the Chicago Bridge and Iron Company’s Houston, Texas office. Bill Hudson had overseen the college loans that my father worked off during the summers and had written to congratulate him after reading the Denver Post article.

AT LONG LAST! Charlie tries on a new pair of boots.

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Aborigines have a right to economic development – by Wayne Bergmann (The Australian – September 30, 2015)

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

In his victory speech, new Prime Minister Malcolm Turnbull announced: “There has never been a more exciting time to be alive than today and there has never been a more exciting time to be an Australian. We will ensure that all Australians understand that their government recognises the opportunities of the future.”

If federal, state and territory governments are to ensure that Aboriginal Australians are included in these “opportunities of the future”, it is obvious their first priority should be to support the economic initiatives of Aboriginal people.

Remarkably, some governments do not understand this. Take the most recent Queensland state governments.

On Cape York Peninsula near Aurukan, there’s $20 billion worth of bauxite waiting to be mined. The traditional owners of the area, the Wik and Wik Way people, eager to be part of the economic development of their region, formed a joint venture with an Australian mining company to create Aurukan Bauxite Developments and planned to mine the resource.

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BHP Billiton’s split may have lessons for Alcoa – by James Regan (Reuters U.S. – September 29, 2015)

http://www.reuters.com/

SYDNEY – In what could be a cautionary tale for Alcoa Inc, global miner BHP Billiton’s decision to spin off non-core businesses into a separate company is yet to pay off for shareholders.

Alcoa announced on Monday it will break itself in two, separating a faster growing plane and car parts business from traditional alumina and aluminum production as shareholders seek higher returns amid a commodity slump.

BHP used a similar rationale for ring-fencing select operations in Australia, southern Africa and South America into what became South 32 last May to concentrate on its most profitable commodities.

South32 shares fell to a record low on Tuesday of A$1.38, more than a third below its listing price. BHP stock, at A$21.61 at Australia’s Tuesday close, is the lowest in seven years.

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NEWS RELEASE: Trans-Pacific Partnership will benefit Canada’s mining sector

Canadian economy cannot afford to be left out of major trade deal

OTTAWA, Sept. 29, 2015 /CNW/ – The Mining Association of Canada (MAC) expressed its firm support for Canada’s participation in the Trans-Pacific Partnership (TPP).

“Canada’s mining industry has been a strong advocate for liberalized trade and investment flows for many years,” stated Pierre Gratton, MAC’s President and CEO. “NAFTA, free trade agreements with Chile, Peru, Colombia, and other countries in Latin America, Africa, and Asia have all helped to increase Canadian exports and investment, supporting jobs for Canadians here and abroad. TPP, representing such a massive trade block, including critical emerging markets, is a trading partnership Canada must not risk being left out of.”

The TPP is a multilateral trade negotiation that currently comprises 12 countries: the United States, Australia, Japan, Mexico, New Zealand, Singapore, Malaysia, Vietnam, Peru, Chile, Brunei Darussalam, and Canada. Together, these countries represent a market of nearly 800 million consumers and a combined GDP of $28.5 trillion – nearly 40% of the global economy.

Canada’s exports of metals and minerals to TPP countries were worth on average $158.6 billion per year from 2012 to 2014. Through the reduction of tariffs, operators in Canada stand to gain significantly with TPP partners.

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West Virginia Miners Play Second Fiddle to the Molly Maguires – by Mark Hand (Counter Punch.com – September 29, 2015)

http://www.counterpunch.org/

In search of improved working conditions and livable wages, mine workers in two major coal producing states resorted to violence against coal mine owners and managers. The militants in one of those states are celebrated as heroic fighters of America’s industrial age. In the other state, the miners’ campaign for human progress is omitted from state history books.

In Pennsylvania, the state contributed funds to build a monument to honor the Molly Maguires, a secretive Irish organization that allegedly killed coal company officials as retribution for their treatment of miners. In museums and gift shops in the state’s anthracite coal region, visitors can purchase t-shirts and other memorabilia honoring the Mollies, 20 of whom were hanged after they were found guilty of murder and other serious charges in the late 1870s.

A big-budget Hollywood movie, titled The Molly Maguires, was released in 1970 with a radical coal miner, played by Scottish actor Sean Connery, as the hero and a Pinkerton detective, played by Irish actor Richard Harris, as the anti-hero.

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NEWS RELEASE: Iran mining eyes $15 billion of foreign investment (Press TV – September 29, 2015)

http://www.presstv.ir/

Iran plans to attract $15 billion of foreign investment in its vast but largely underdeveloped mines and mining industry sector, an official says.

“The huge quantities of mineral resources call for attracting and absorbing domestic and foreign sources,” Deputy Minister of Industry, Mine and Trade Mohammad Khazaee said on Tuesday.

Iran’s mineral reserves are estimated at a whopping 60 billion metric tons, including 37 billion metric tons of proven deposits. Officials say known reserves have been found on explorations over only 7% of Iran’s total area.

“The mining sector is in fact the main base and the mother of development for other sectors which needs special attention,” Khazaee said.

“According to the sixth national development plan which is in the formulation stage, $15 billion in foreign investment is envisaged to be attracted in the mines and mining industries sector,” he added.

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