Republic of Mining

Petcoke: the ticking time bomb at the heart of aluminum – by Andy Home (Reuters U.S. – September 16, 2015)

September 17, 2015

http://www.reuters.com/

LONDON – The world is producing too much aluminum. That’s what the price says. London Metal Exchange metal for three-month delivery is currently trading just above $1,600 per tonne, a level which is simply not sustainable for many higher-cost producers.

There have been plenty of smelter closures and curtailments. But not enough, particularly in China, which is exporting its surplus to the rest of the world in the form of semi-fabricated products.

Widespread allegations that some of these are “fake semis” have added extra heat to already simmering trade tensions. Aluminum’s problems have a lot to do with the metal’s production process.

Bauxite, the key metallic input, is a commonly occurring mineral and one that can be easily scooped out of the ground without the need for “hard rock” mining.

That abundance of supply has been proven by Indonesia’s ban on exports of bauxite to China.

Chile Begins Relief Efforts After Powerful Quake Kills Eight – by Javiera Quiroga and Eduardo Thomson (Bloomberg News – September 17, 2015)

September 17, 2015

http://www.bloomberg.com/

Chile began dispatching emergency crews and assessing damage left by the biggest earthquake in the world this year that claimed 10 lives and forced more than a million people to evacuate coastal areas.

After a tsunami alert was lifted early Thursday, residents of towns in the region of Coquimbo began returning to their homes, many of which had crumbled in the 8.3-magnitude earthquake. Tsunamis caused severe damage to the region’s main port, Interior Minister Jorge Burgos said.

The disaster brought back memories of an even-stronger 2010 quake that trigged a tsunami that killed hundreds. Copper prices, which had jumped after the quake hit at 7:54 p.m. local time Wednesday, retreated after producers said their mines escaped damage. Chile is the biggest producer of the metal.

“Once again we’ve been forced to face a tough blow from nature,” President Michelle Bachelet said in televised remarks. “Today our main focus is on supporting and helping people.”

On Thursday, Bachelet embarked on a tour of the hardest hit areas near the cities of Illapel and Coquimbo.

UPDATE 3-Potash Corp, K+S not actively discussing takeover -Potash CEO – by Rod Nickel (Reuters U.S. – September 16, 2015)

September 17, 2015

http://www.reuters.com/

(Reuters) – Potash Corp of Saskatchewan is not actively discussing its takeover proposal with Germany’s K+S, but remains interested in a combination of fertilizer producers that would aid North American potash sales and offer new access to Europe, Chief Executive Jochen Tilk said on Wednesday.

Potash Corp’s standing offer of 7.9 billion euros ($8.90 billion) or 41 euros per share is appealing to K+S shareholders, Tilk said at an investors’ conference in New York organized by Credit Suisse.

“It was attractive when we made it (in July). Marketing conditions have changed, we think it’s even more attractive now,” he said. “I will not put words in K+S shareholders’ mouths but I think most of them feel that is an appropriate offer in terms of premium.”

A K+S spokesman declined to comment. Shares of K+S dipped after Tilk’s comments and closed down 0.2 percent at 33.58 euros in Frankfurt. Potash shares were up 1.8 percent at $25.44 in New York and up 1.3 percent at C$33.51 in Toronto on Wednesday afternoon.

BHP’s Andrew Mackenzie more bullish on China – by John Kehoe (Australian Financial Review – September 17, 2015)

September 17, 2015

http://www.afr.com/business/mining/

BHP Billiton chief executive Andrew Mackenzie has signalled that China may have turned a corner, saying he had shifted from a slight “bear” on the world’s second largest economy three months ago to once against siding with the China “bulls”.

Mr Mackenzie, speaking in Washington, said BHP’s key commodities including iron ore, coal, copper and oil were “still flowing” through Chinese ports and there was no inventory build-up.

“If we compare to three or four months ago, things are a little better, not worse,” Mr Mackenzie said after delivering a speech to the US Chamber of Commerce.

BHP’s business activity offers a sneak peak into key sections of the Chinese economy, because the miner is a large supplier of commodities used to construct buildings, bridges, cars and other metals-intensive objects.

A range of recent disappointing economic data suggests Australia’s biggest export market may be slowing faster than most economists had anticipated.

Canada – a land of golden opportunity. As is Australia, Ghana etc – by Lawrie Williams (Lawrieongold.com – September 16, 2015)

September 17, 2015

http://lawrieongold.com/

I have just been sent a copy of a new Newsletter being put out by Peartree Securities – which reckons to be the largest provider of mining flow-through capital in Canada so knows something about junior mining. While the newsletter theoretically looks at Canadian resources in general it is most relevant to the hugely depressed junior gold sector and could well be being initiated at a most opportune time for investment in this volatile part of the market.

True resource analysts have been calling the bottom in the gold price dip for the past couple of years – and still gold has trended lower. As we have pointed out before, the lower the price falls, though, perhaps also the lower the downside investment risk in percentage terms. Gold has been fairly steady in its current range in US dollar terms of late and while some analysts – notably from the bullion banks – are calling for further falls still, triggered by US Fed interest rate raising forecasts.

We are of the opinion that, even so, any further downside is definitely limited given the likely minimalist rate raising that may be contemplated by the Fed if and when it actually takes place. While holding gold may not generate any interest, rates are still likely to remain in negative territory in real terms after any initial raise – a factor which just doesn’t seem to be being taken into account by the investment sector.

Canadian rare earth elements miners band together for survival in pricing downturn – by Peter Henderson (Canadian Press/CTV News – September 16, 2015)

September 17, 2015

http://www.ctvnews.ca/business/

TORONTO — Experts say government support for research and development of Canada’s rare earth elements has encouraged new co-operation in the usually dog-eat-dog world of junior mining companies.

China is the world’s major supplier of rare earth elements, prized for their unique properties — including powerful magnetic fields — and used in high-tech goods such as smartphones, laptops and electric cars.

Prices rose dramatically in 2011, and by 2013 there were at least 11 Canadian projects at the advanced exploration stage before a steep slide in value put a halt on development.

Ian London, who heads the Canadian Rare Earth Elements Network, said companies are instead working together to develop new methods for extracting and refining the 17 metals that make up the rare earth group.

“Now that there has been a lull that’s gone on for a little while, folks have become much more realistic and are looking to address those challenges,” he said.

Tesla plans to buy lithium for Gigafactory from nearby Nevada mine – by Katie Fehrenbacher (Fortune Magazine – September 16, 2015)

May 13, 2016September 17, 2015

http://fortune.com/

The electric carmaker may get some of the lithium it needs for its Nevada battery factory from a local mining project.

Tesla plans to buy lithium, a critical ingredient in its batteries, from a mining project that’s under development 200 miles from its battery factory near Reno, Nev.

Pure Energy Minerals, which is leasing the Nevada land for mining, announced the supply agreement with the electric car maker on Wednesday.

The deal is highly unusual in the world of battery manufacturing. Much of the world’s lithium comes from Argentina, Chile, Bolivia, Australia and eastern China, and is shipped long distances to battery makers in Asia.

Moving forward [Iron Ore Company of Canada] – by Ty Dunham (St. John’s Telegram – September 16, 2015)

September 17, 2015

http://www.thetelegram.com/

IOC’s Wabush 3 project approved for development

The Iron Ore Company of Canada (IOC) has received approval for the expansion of the Wabush 3 pit.

The Iron Ore Company of Canada in Labrador City received the long awaited approval for the Wabush 3 open mining pit development. — Photo by Ty Dunham/The Aurora

The provincial government gave the green light to the environmental assessment last week, giving company the go-ahead on a critical project that will provide sustainability over the amount of ore that goes to the plant to meet the rate of production.

Marsha Power Slade, senior adviser for external relations and corporate affairs for IOC, said while IOC started focusing on the project 2 1/2 years ago, discussions on the expansion began five to seven years ago.

She added the additional pit would allow for greater ore flexibility due to its low strip ratio.

Sudbury’s Wallbridge Mining signs $11-million deal – by Staff (Sudbury Star – September 17, 2015)

September 17, 2015

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

Lonmin Canada Inc. and Lonmin Plc will spend $11 million over four years in a joint venture agreement with Sudbury-based Wallbridge Mining Company Limited.

In exchange, Lonmin can earn up to a 50 per cent interest in Wallbridge’s four Parkin Properties located North of Sudbury. The deal was announced Wednesday.

“Our business plan … focuses on acquiring value-accretive near-term production opportunities, as well as advancing our exploration properties, including our Parkin Properties, through joint venture partnerships,” Marz Kord, president and CEO of Wallbridge, said in a release.

“I am pleased that we have not only advanced our discussions regarding some external assets, but have now amended the (North Range Joint Venture agreement) with Lonmin to include our Parkin Properties. This plan provides the company with sustainable cash flow, while maintaining active exploration for large-scale discovery upside in the Sudbury camp.

COLUMN-For Rio Tinto, it doesn’t matter being right on iron ore – by Clyde Russell (Reuters U.S. – September 16, 2015)

September 17, 2015

http://www.reuters.com/

(Reuters) – There’s been considerable debate over who is right on the outlook for China’s vast steel sector – the bullish iron ore miners or the bearish analysts and steel producers.

Rio Tinto, the Anglo-Australian miner that’s likely to claim top spot among iron ore producers, has resolutely stuck to its view that China’s steel output will top out at 1 billion tonnes per annum, around 2030.

There’s been no shortage of people lining up to challenge that position, and even number three miner BHP Billiton has rowed back slightly from the 1 billion tonne forecast, to expecting peak output around 935 to 985 million tonnes in the mid-2020s.

The Chinese steel sector thinks peak steel was already achieved with last year’s total of around 823 million tonnes, and is forecasting that output will slip slightly in coming years.

There are more bearish forecasts about, with one research house saying in a recent report that steel output will retreat to 650 million tonnes by 2017 as property demand falls back to levels before the stimulus prompted by the 2008 global recession.

The sexiest mining company in the world – by Warren Dick (Mineweb.com – September 16, 2015)

September 17, 2015

http://www.mineweb.com/

And it’s not just Mila Kunis that’s bringing a sparkle to investors’ eyes.

JOHANNESBURG – So you’re probably thinking the world’s sexiest mining company is a gold company? Heavens, no! (BTW that’s so 1980’s). Is it a diamond company? Mmmm, close. But no cigar. So what is it then? Why, it’s actually a coloured gemstone miner called Gemfields, listed in London.

Gemstones comprise rubies, sapphires and emeralds – amongst many others – and Gemfields has been very good at pulling them out, hand over fist, from its Kagem emerald mine (Zambia) and Montepuez ruby mine (Mozambique).

But to call it just a mining company might be a bit restrictive. “We’re in the business of stimulating both demand for, and supply of, our gemstones,” said CEO Ian Harebottle in an interview with Mineweb recently.

Tesla and the mining business – by Don Brunell (The Star – September 16, 2015)

May 13, 2016September 16, 2015

http://www.grandcoulee.com/ Grand Coulee Dam Community

Tesla is the premium entry in the electric car market, with a starting price of $75,000. According to the Wall Street Journal, the high-end “Signature” model costs $132,000, slightly more than the base price for Porsche’s AG’s 911 GT3.

Even with a $7,500 federal tax credit, an assortment of state tax credits, and $10,000 in fuel saving over five years, the driver’s investment is over $110,000 – far beyond the reach of the average family.

However, Tesla’s luxury styling and impressive performance give high-end buyers the best of both worlds – luxury transportation and the satisfaction of environmental stewardship. In that light, it might surprise some that Tesla’s success depends, in large part, on lithium mining.

Tesla cars are made of carbon fiber and powered by racks of lithium-ion batteries. Strong, light, and cost-efficient, carbon fiber is being used increasingly by commercial airplane manufacturers. On board Boeing’s 787, the batteries are lithium-ion as well.

Like Boeing and Airbus, auto manufacturers are under economic and regulatory pressure to produce more fuel-efficient products.

Noront CEO outlines big plans in the Ring of Fire (Northern Miner – September 16, 2015)

September 16, 2015

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

VANCOUVER — Noront Resources (TSXV: NOT; US-OTC: NOSOF) has emerged as a leader across the Ring of Fire region in the James Bay Lowlands of Northern Ontario, and it has a long-term plan in the works it hopes will establish a world-class nickel sulphide and chromite camp in the region.

The company is knows it won’t be a quick process, but a commitment to social license and First Nation partnerships could lead to successes where larger companies have failed.

Noront made headlines in late March when it acquired 103 claims in the Ring of Fire from beleaguered U.S. base-metal miner Cliffs Natural Resources (NYSE: CLF) for US$20 million. The deal was financed via a US$22.5-million loan agreement that saw Franco-Nevada (TSX: FNV; NYSE: FNV) pick up a 3% royalty on the Black Thor chromite deposit and a 2% royalty on Noront’s properties in the region with the exception of its advanced-stage Eagle’s Nest nickel platinum group metals project.

“We’d always had our eye on consolidating the Ring of Fire because we view it as an emerging camp. I mean you have a greenstone belt with a big ultramafic complex that seems to be chalk full of discovery potential,” said president and CEO Alan Coutts during an interview.

INTERVIEW-Zambia to triple power generation in two years with solar – by Stella Mapenzauswa and Chris Mfula (Reuters India – September 16, 2015)

September 16, 2015

http://in.reuters.com/

LUSAKA, Sept 16 (Reuters) – Zambia expects to triple power output to 6,000 megawatts (MW) in 2 years through expansion of solar energy by foreign investors, the head of its investment agency said.

Erratic electricity supplies have hit mining in the continent’s second biggest copper producer, where the bulk of its generation capacity of 2,200 MW of power is water-powered.

The power problems and copper price slide have driven the kwacha currency to record lows amid a selloff in commodity-linked currencies as top copper consumer China’s economy has slowed.

Zambia Development Agency (ZDA) Director General Patrick Chisanga said he had held “very positive” talks with an unnamed German company aiming to invest $500 million in a solar power plant but did not disclose its planned location.

“It is planned that they could produce about 400 megawatts of power in two steps,” Chisanga told Reuters.

Fortescue Metals inks deal with Australian Aboriginal Mining – by Anne Lu (International Business Times – September 16 2015)

September 16, 2015

http://www.ibtimes.com.au/

Fortescue Metals Group Limited inked an Iron Ore Sale and Purchase Agreement with Australian Aboriginal Mining Corporation Pty Ltd on Monday, the companyannounced in a statement.

The five-year deal will allow the indigenous-owned AAMC to transport up to two million tonnes of iron ore yearly from its Pilbara mining operation through Fortescue’s world-class port or rail facilities. Fortescue can then purchase the iron ore or sell it on behalf of AAMC.

The agreement will help create Australia’s first Aboriginal owned and operated iron ore mine.

“Today’s agreement underlines very clearly Fortescue’s commitment to provide meaningful opportunities for Aboriginal business development. The company is focused on building up Aboriginal communities through full economic participation rather than passive welfare,” said Fortescue CEONev Power.

Indeed, the company’s Billion Opportunities program has awarded more than AU$1.8 billion in contract value to Aboriginal businesses and joint ventures. Fortescue’s workforce is 13 percent Aboriginal.