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NEWS RELEASE: Morgan Stanley Pressured to Drop Coal Financing

Rainforest Action Network Announces Campaign as Next Major Bank Targeted Since Bank of America Coal Milestone

San Francisco – Today, Rainforest Action Network (RAN)announced that Morgan Stanley is the next major investment bank being targeted with a public campaign to demand that the bank commit to stop financing coal mining and coal-fired power.

“Morgan Stanley has longstanding financing relationships withsome of the worst offenders from the global coal mining industry, including Peabody Energy, the world’s largest private sector coal mining company,” said Ben Collins, Senior Research and Policy Campaigner at RAN. “Last year alone, the bank financed $477 million for coal mining.”

Morgan Stanley continues to finance top producers of mountaintop removal coal, even as eleven of its competitors have committed to cut financing for the practice. The bank also financed $1.2 billion in 2014 for the largest operators of coal-fired power plants in the world such as RWE, Europe’s largest single emitter of carbon dioxide.

For fifteen years, RAN has been holding the U.S. banking sector accountable for its environmental and human rights impacts, most recently campaigning against Bank of America’s coal financing.

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Aluminum Makers Call for `Green’ Trademark to Sell at a Premium – by Yuliya Fedorinova (Bloomberg News – September 21, 2015)

http://www.bloomberg.com/

The biggest aluminum producers are discussing the introduction of a “green” trademark for the lightweight metal that could be sold at a premium and encourage carbon footprint reductions among rivals, United Co. Rusal’s deputy chief executive officer said.

“Since many of consumers, such as the car industry, are working on becoming more nature-friendly, the issue of clean aluminum output becomes important,” Oleg Mukhamedshin said in an interview last week. As an example, “even if a car with an aluminum body enables lower CO2 emissions, more pollution could have been caused by the company producing that metal, which damages the idea of clean vehicles.”

Automakers including Ford Motor Co. are turning to aluminum as they seek to reduce vehicle weights to meet stringent fuel-efficiency requirements. In 2014, Rexam Plc approved a program to cut its cans’ carbon footprint by 25 percent through 2020, the packaging company said in a 2015 report. Energy comprises most of the aluminum industry’s costs, and carbon dioxide generated by fossil fuels such as coal makes up almost 60 percent of global greenhouse-gas emissions, according to the U.S.

Environmental Protection Agency.

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Pope Francis And Coal Country Catholics – by Dan Boyce (Inside Energy – September 20, 2015)

http://insideenergy.org/

Pope Francis is visiting the U.S, this week. On Thursday he will make a historic address to Congress.

Some conservative Catholics say Pope Francis is meddling in American politics with his recent encyclical on the environment, the biggest papal statement ever on the subject and one which included a call for action on climate change. Meanwhile, for the faithful in western coal country, he is raising moral questions.

Donna Zofcin’s husband was injured in a coal mining accident in Kentucky. He was paralyzed for a time, then doctors helped him walk again. He died a few years later, in 1992. Still, the walls of her humble Cheyenne, Wyoming home are an homage to coal, with framed watercolor prints of mining equipment. Living now in the country’s biggest coal state, that theme still runs through her life. So too, does her Catholic faith.

“Oh, we’re very devout,” Zofcin said of her and her family, “and we go to church every Sunday.”

Back in June, Wyoming’s State Bishop, Paul Etienne, delivered a special homily at Zofcin’s church in Cheyenne. The homily focused on the Pope’s headline grabbing encyclical. A challenging and bold teaching, Etienne said, which lines out humanity’s responsibility to be good stewards of the earth.

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Miners turn to alternative finance to cut debt as downturn grinds on – by Nicole Mordant (Reuters U.S. – September 21, 2015)

http://www.reuters.com/

DENVER – A niche form of mining industry finance is emerging as the new go-to funding for miners bowed by debt, another sign of the sector’s distress as it plods through the fourth year of a commodities’ downturn.

Glencore, the world’s third-biggest miner, is in talks to raise more than $1 billion in so-called “streaming” deals, coming on the heels of transactions by No.1 gold producer Barrick Gold and diversified miner Teck Resources .

More such deals are expected as shareholders, ratings agencies and lenders pressure miners to slash debt amid a gloomy commodity price outlook and as other debt-cutting tools such as asset sales, dividend cuts and share issues are not enough.

Until now so-called “streaming” finance – upfront funds for miners in exchange for a portion of a mine’s future output – has most commonly been used by mid-sized miners with limited access to capital to fund mine builds.

That the world’s biggest miners are now prepared to do deals that see them giving up a portion of their future production, earnings and cashflow to cut debt is a reflection of their limited options.

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Barrick says strong interest in U.S. gold asset sale – by Nicole Mordant (Reuters U.S. – September 20, 2015)

http://www.reuters.com/

There has been strong interest in a package of six U.S. gold assets that Barrick Gold Corp (ABX.TO) wants to sell, a senior Barrick executive said on Sunday, adding that he expects a deal to close before year end.

The interest has been largely from North American-based miners, Barrick President Kelvin Dushnisky said.

Denver-based Newmont Mining Corp (NEM.N) and Toronto-based Kinross Gold Corp (K.TO) are likely buyers of the assets, an investment banking source said, speaking on condition of anonymity. Kinross declined to comment and Newmonth could not immediately be reached for comment.

As part of its plan to cut at least $3 billion in debt this year, Barrick, the world’s biggest gold producer, last month said it would sell six of its U.S. gold mines and projects: Bald Mountain, Round Mountain, Spring Valley, Ruby Hill, Hilltop and Golden Sunlight assets.

“We just started it (the sale) but already the level of interest is extremely high,” Dushnisky told Reuters in an interview at the Denver Gold Forum, an annual gold industry conference.

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Guinean Boom in Top-Quality Bauxite Set to Boost Economy – by Franz Wild and Ougna Camara (Bloomberg News – September 21, 2015)

http://www.bloomberg.com/

Red bauxite powder mined by Guinea’s biggest producer — flowing past a mangrove swamp on a conveyor belt and plunging through a giant funnel into the Rio Tamara ship — has been the country’s steadiest source of income since it was first mined four decades ago.

The company churning out the ore — owned by Rio Tinto Plc, Alcoa Inc., Dadco Alumina & Chemicals Ltd. and the government — will also lead a new wave of investment that may spur the West African nation’s economy and more than double bauxite output, which is refined and then smelted into aluminum.

Compagnie des Bauxites de Guinee’s $1 billion plan will almost double its annual production to 28.5 million metric tons within five years, Chief Executive Officer Namory Conde said. Four other developments could see a further 20 million tons added to Guinea’s annual exports.

“There’s going to be a lot more bauxite coming out of Guinea,” Conde said at CBG’s headquarters in the town of Kamsar, where the ship was being loaded. “Our quality is much better than around the world.

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Peru: Pope Gets Pushback on Environment – by Justin Catanoso (Pulitzer Center.org – September 20, 2015)

http://www.pulitzercenter.org/

LA OROYA, Peru – In Pope Francis’ teaching doctrine on climate change and environmental sustainability, released in June to worldwide attention, he intertwines two threads that often dangle separately: nature and the world’s poor.

“A true ecological approach always becomes a social approach,” Francis writes in his papal encyclical. “It must integrate questions of justice in debates on the environment, so as to hear both the cry of the earth and the cry of the poor.”

There are few places on Earth where the cry of both is louder than in this city of 33,000 more than 2 miles high in the central Andes. La Oroya, Peru, is recognized as one of the world’s most polluted places. A smoke-belching smelting plant for copper, zinc and lead, operating from 1922 to 2009, made it so. Chernobyl makes those same lists.

Every child in town has excessive levels of lead in his or her blood, according to health officials. The soil is contaminated with sulfur dioxide. Portions of the Montaro River, which flows past the smelting plant, has been dead for years. Seven decades of acid rain chemically transformed the mountains surrounding the plant so that they look like molten wax, not solid rock.

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Day at the Denver Gold Forum – How to invest in junior golds – by Lawrence Williams (Lawrieongold.com – September 21, 2015)

http://lawrieongold.com/

This year’s Denver Gold Forum got off to a good start Sunday afternoon/evening with early registration, a well provisioned opening reception and an opening keynote address. The reception featured also seventeen junior gold, silver and pgm miners/developers which attracted decent attention from the assembled throng.

The opening keynote was from Adrian Day of the eponymously named asset management company. Day was giving attendees his expert advice on investment in gold mining companies – a sector which has been on the decline for the past four years since gold came off its September 2011 brief peak, but which could well be offering tremendous upside should gold be on the recovery trail once more.

The past three years in particular have seen numerous occasions when investment advisers have been calling a bottom to gold’s decline, only for the price stutter and fall further. Could this be the time to climb in and make mega profits assuming one picks the right stocks. The optimistic investor may well feel it to be so – and it is perhaps fair to say the lower the gold price falls the less the potential downside, but it still remains a potentially very volatile market.

Definitely not one for widows and orphans. Some will feel that the best time to re-enter it is just when all the mainstream analysts are calling for ever lower prices – as happened when gold fell to its recent low point of around $1,080.

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Resources firms endorse call for aboriginal veto rights to projects – by Shawn McCarthy (Globe and Mail – September 21, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Two of Canada’s biggest resources companies have endorsed a call for governments and industry to clearly assert the right of aboriginal communities to veto major projects that negatively affect their traditional territories.

Suncor Energy Inc. and Tembec Inc. are members of the Boreal Leadership Council that is releasing a report Monday calling for the adoption of the principle of “free, prior and informed consent” when industry is working with indigenous populations. The council is composed of businesses – including Toronto Dominion Bank – environmental groups and First Nations that work together on northern issues.

Aboriginal communities have frequently reaped benefits in agreements with resources companies over development projects, but often complain they are not treated as full partners and have little real power over the fate of projects. In recent years, Canadian courts have made clear that these communities need to be consulted and their concerns accommodated, and that where they have clear title to land, their consent must be given.

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Kinross Gold struggling to reverse losses at Mauritania’s Tasiast mine – by Geoffrey York (Globe and Mail – September 21, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

NOUAKCHOTT, MAURITANIA — When the executives of Kinross Gold Corp. fly in from their Canary Islands office to the dusty capital of the desert country where their flagship African gold mine is located, they can’t avoid seeing the hulking symbol of mining failure that dominates the skyline: the empty shell of a 15-storey skyscraper that the state mining company had started building.

Mauritania’s state-owned iron-ore company, SNIM, was due to finish the tower months ago. Instead it sits half-built and abandoned, flanked by a pair of idle construction cranes. There are no signs of life. The foreign construction contractors are long gone, leaving behind piles of sand and cement blocks.

Plagued by strikes and weak iron-ore prices, SNIM is in deep trouble, while most of Mauritania’s other resource projects are winding down or shelved. The national economic slump has compounded the pressure on Kinross as it struggles to reverse the losses at its huge Tasiast gold mine on the edge of the Sahara in northwestern Mauritania.

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KGHM to shut down McCreedy mine: Union – by Ben Leeson (Sudbury Star – September 21, 2015)

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

In the face of weak commodity prices, KGHM International will shut down the McCreedy West Mine next month, the union representing representing workers there told the Sudbury Star on Sunday.

Myles Sullivan, area co-ordinator for the United Steelworkers, said the company has informed members the mine will be placed under care and maintenance effective Oct. 1, affecting about 25 employees.

“In total, there’s about 40 of our members that are being laid off locally,” Sullivan said.

“It’s really hard. Things are tough in mining right now, with the price of nickel and copper and everything being low. We kind of hoped the (lower) dollar would help offset some of that and I’m sure it’s helping, but it’s still not enough.”

Based on seniority and qualifications, Sullivan said, some workers from McCreedy may have the opportunity to work at the nearby Morrison deposit. Attempts to contact a KGHM representative for comment on the weekend were not immediately successful.

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How smaller Canadian gold miners are thriving despite today’s gloomy price environment – by Peter Koven (National Post – September 19, 2015)

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

KIRKLAND LAKE, ONT. – Deep underground in Kirkland Lake, 300 kilometres north of Sudbury, it is hard to think about the rich veins of gold near at hand. The heat and humidity overpower everything else.

Crews are currently working 5,400 to 5,600 feet below surface, making it one of Canada’s deepest gold mines. And in this part of the world and at these depths, a first-time visitor would find the temperature suffocating.

Work crews start dripping with sweat almost as soon as they step out from the shaft underground to begin their shift. Mining this far down is technically challenging and not for the faint of heart. But more than 100 years after the first shaft was sunk in this sturdy Northern Ontario community, it looks as attractive as ever — even if it is surrounded by an environment of gloomy gold prices.

The Kirkland Lake operation, known as Macassa, is one of the world’s richest gold mines by any measure — the data service IntelligenceMine ranks it second overall. The mine’s owner, Kirkland Lake Gold Inc., likes to say that of the world’s 10 highest-grade operations, this is the only significant one that isn’t owned by a major company.

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Even the stars of mining deals are sidelined in sinking market – by Eric Reguly (Globe and Mail – September 19, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

ROME — You know that something is seriously awry in the global mining industry when the two smartest men in the room – Ivan Glasenberg and Mick Davis – are crouching under rocks. Mr. Glasenberg, CEO and co-founder of Glencore , the world’s top commodities trader, is busy whittling down a mountain of debt in the wake of the company’s submarine performance on the London Stock Exchange. Mr. Davis, the former CEO of Xstrata , launched X2 Resources a couple of years ago but has yet to do a deal.

The mining market, in other words, is moribund. No one is selling, no one is buying and values are still in retreat. If either Mr. Glasenberg or Mr. Davis were convinced the bottom had been reached, you would think they would find ways to swing back into deal-making mode, for that was what they did best.

Today’s commodities markets are not about growth; they are about survival, and the body language of the industry’s biggest players suggests that won’t change any time soon.

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Opinion: Alaska needs iron-glad guarantees on B.C. mines – by Dale Kelley and Cynthia Wallesz (Vancouver Sun – September 18, 2015)

http://www.vancouversun.com/

Dale Kelley is executive director of the Alaska Trollers Association. Cynthia Wallesz is executive director of United Southeast Alaska Gillnetters.

We were among a group of fishing, environmental and tribal representatives who met recently with Alaska Lt.-Gov. Byron Mallott, B.C. Mines Minister Bill Bennett and other officials on transboundary mining issues. Bennett’s visit was largely the result of Alaskans’ resistance to B.C.’s aggressive mining agenda and the risks it poses to our region.

Our organizations represent thousands of Southeast Alaska fishing families and businesses who fear development near the border could threaten water quality, habitat and the fish we rely upon. Last year’s tailings breach at the Mount Polley mine and plans to open several large acidic mines near our rivers heighten those concerns.

While the meeting was a good first step to starting a discussion with Canada, it did not alleviate our concerns.

Bennett told us the status quo cannot continue, but that he understands no amount of money or jobs is worth sacrificing our resource values. We absolutely agree.

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U.S. Steel Canada threatens to leave Canada if court rejects request – by Greg Keenan (Globe and Mail – September 18, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

U.S. Steel Canada Inc. is threatening to cease operating in Canada by the end of the year if an Ontario Superior Court judge rejects its request to stop paying municipal taxes, halt payments into pension funds, and cut off health care and other benefits to 20,000 retirees and their dependents.

A decision by the company’s parent, United States Steel Corp., to shift production of high-value-added steel to U.S. mills means the Canadian unit requires a “business preservation order” that will allow it to keep operating, U.S. Steel Canada said in a court filing.

Unless the court approves U.S. Steel Canada’s motion to conserve cash by slashing spending, “we don’t see any way to avoid ceasing operations at the end of 2015,” the company’s president, Mike McQuade, said in a separate memo to employees.

The prospect of a shutdown of operations in Hamilton and Nanticoke, Ont., comes as U.S. Steel and its Canadian unit prepare to enter mediation efforts after a year of protection from creditors under the Companies’ Creditors Arrangement Act.

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