Republic of Mining

Coal India aiming to double output to one-billion tons a year by 2020 – by Ajoy K Das (MiningWeekly.com – July 17, 2015)

July 20, 2015

http://www.miningweekly.com/page/americas-home

KOLKATA (miningweekly.com) – Coal India Limited (CIL) dreams of producing one-billion tons of coal a year by 2020, and, as the sixth-largest miner in the world, having big dreams is not unusual. However, if past performance is seen as an indicator of future performance, then it has a lot of sceptics to prove wrong.

“CIL’s major challenge is to meet the rising demand from the power sector . . . and this is how the dream of achieving the one-billion-tons-a-year coal production [target] began,” the miner states in its Roadmap for Enhancement of Coal Production.

“The idea of ramping up production germinated at grassroots level and traversed up, growing bigger as the possible potential was realised,” the vision document adds.

With a current production of 494-million tons a year, the target centres on achieving a 15% compound average annual growth rate (CAGR). However, the road ahead may not be that easy as, over the past five years, CIL’s yearly growth rate has averaged between 0% and 7%, with the latter achieved only in the previous fiscal year.

Pope Francis says mining sector needs radical paradigm shift (Vatican Radio – July 17, 2015)

July 20, 2015

http://en.radiovaticana.va/

(Vatican Radio) Pope Francis on Friday (July 17th) sent a message to the organizers and participants of a Vatican meeting that is looking at the often highly negative impact of mining operations on local communities. Organized by the Pontifical Council for Justice and peace, the 3-day meeting is being attended by representatives from communities impacted by mining operations across the world.

In his message sent to the Council’s President, Cardinal Peter Turkson, the Pope spoke of the cry for justice coming from these communities for their lost lands, the violence, threats, corruption, the trampled human rights, the dire working conditions, and sometimes the slavery and human trafficking as well as the pollution of water, air and soil.

The Pope urged the entire mining sector to carry out a radical paradigm shift to improve the situation in many countries. He said all parties needed to adopt a behaviour that is inspired by the fact that we make up one human family and engage in a sincere and respectful dialogue to deal with this crisis.

A press conference was held in the Vatican earlier on Friday to illustrate the theme of this meeting on the impact of mining operations which is “United with God listen to the cry.”

NEWS RELEASE: Harte Gold Signs US$6M Term Sheet and Milling Agreement

July 20, 2015

Toronto – July 16, 2015 – HARTE GOLD CORP. (“Harte Gold”) (TSX: HRT/FSE: H4O/OTC: HRTFF) is pleased to announce a number of recently completed key milestones in support of Harte Gold’s 70,000 tonne Advanced Exploration and Bulk Sampling Program (AEBSP) on the Company’s 100% owned Sugar Zone Gold Deposit located north-east of White River, Ontario.

Highlights – Advanced Exploration and Bulk Sampling Program

• An indicative Term Sheet has been signed with Auramet International LLC for a gold loan of up to US $6,000,000 together with a working capital facility; both of which are subject to due diligence, credit review and legal documentation. Due diligence will begin shortly with a final Agreement expected to be signed by the end of August
• Letter of Intent has been signed with Barrick Gold Corporation to process the 70,000 tonne Sugar Zone Bulk Sample at the nearby Hemlo Mill with the final Agreement expected to be signed by the end of August
• Roadworks to the Portal site on schedule for completion by the end of July
• Initial blasting of the portal location will be initiated in July with collaring in August
• Heads of Agreement for a Fixed Price mining contract has been signed with Technica Mining, final Agreement expected to be signed by the end of July
• Optimized mine plan will accelerate the AEBSP production schedule and shorten project timelines.

Is Brad Wall the only premier who cares about 2015, not just 2050? – by Rex Murphy (National Post – July 18, 2015)

July 18, 2015

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

The distant future is a politician’s most useful friend — it is where every good and noble thing they promise actually happens. It is where the clutter of present events and the roiling fortunes of this busy harsh and confounding world do not impinge on their their wildest wishes.

For example, under Ontario’s green ambitions, we are given to understand the goal is to reduce carbon dioxide emissions by a full 80 per cent by 2050. This is Premier Kathleen Wynn’s pledge, a commitment that will take merely 35 years to be tested — a generous breathing space by any standards for a political commitment, and which happily just might be the identical term it takes to learn all there is to know about the infamous billion-dollar cancellation of a couple of Ontario gas plants a couple of elections ago.

We have long since learned, and from a thousand examples, that the promises of most politicians barely survive the time it takes to make them. Antiques like me remember the bitter mocking Pierre Trudeau once gave Robert Stanfield on the latter’s promise to introduce wage and price controls — “Zap! You’re frozen!,” said the wily Trudeau — only to pirouette mere days after an election to introduce … wage and price controls.

Pledges three, four or 10 decades out are perfect vapourings. To call them useless is to elevate their dignity. To build present-day policy under the umbrella of such projections is to blend fantasy and irresponsibility.

Production cuts by Vale and Rio will not solve iron ore glut – by Neil Hume (Financial Times – July 17, 2015)

July 17, 2015

http://www.ft.com/home/us

The bruised and battered iron ore industry finally received some good news this week. First, Vale said it would withdraw 25m-30m tonnes of annual production from the market then Rio Tinto cut its total 2015 export forecast by 10m tonnes to 340m tonnes.

While welcome, it would be a mistake to think these announcements mark the beginning of a disciplined response from the industry’s biggest producers to an ongoing supply glut. They don’t.

Take Vale’s “cut”. After its share price jumped more than 6 per cent on the news, the Brazilian miner moved to clarify the remarks made by Peter Poppinga, its executive director of ferrous minerals.

Vale said there was no change to its output guidance for the year of 340m tonnes, or its longer-term target to produce 450m tonnes by 2018. Rather it was cutting production of high cost iron ore — the key ingredient in steelmaking — and replacing it with cleaner, lower cost output from some of its other mines.

Gold stocks crash – Barrick plummets to 25-year low – by Frik Els (Mining.com – July 17, 2015)

July 17, 2015

http://www.mining.com/

On Friday, the price of gold dropped to the lowest level since April 2010 after the Fed said the world’s largest economy favours a rate rise this year which boosted the dollar and Chinese disclosure about its gold holdings disappointed the market.

Futures contracts in New York with August delivery dates were trading at $1,131.20 an ounce in afternoon trade, down more than 1% from yesterday’s close in a second day of losses.

The gold market has turned overwhelmingly bearish with large gold futures investors such as hedge funds slashing long positions – betting on a rising price – to less than 1m ounces, the lowest in at least nine years. At the same time speculators’ short positions – bets that gold could be bought cheaper in the future – jumped to all-time record highs.

Gold’s weakness led to a brutal sell-off among the world’s top gold miners. More than 22m Barrick shares changed hands as the share tumbled 5% to the lowest since 1990.

The sell-off was led by Barrick Gold Corp (NYSE:ABX, TSE:ABX), the world’s top producer of the metal, which tumbled 5% to the lowest in USD terms since 1990. More than 22m shares changed hands, double the usual daily volume for the share.

Slump in nickel prices rattles small Australian miners – by Melanie Burton and James Regan (Reuters U.S. – July 15, 2015)

July 17, 2015

http://www.reuters.com/

A 30 percent slump in nickel prices this year has piled pressure on small Australian miners, forcing some of them to delay new projects and expansions as they wait for the market to recover.

Poseidon Nickel became the latest miner to succumb when it said on Thursday it would put its Lake Johnston mine on care and maintenance – a sign casualties were mounting amid near record metal stockpiles and weak demand from key consumer China.

Exchange stockpiles of the metal used to make stainless steel nearly doubled in the 18 months to June, pressuring benchmark prices to six-year lows of $10,430 per tonne last week, down 32 percent since the start 2015.

“When you’ve got 70 percent of an industry at break-even or loss making you’re going to see people defer projects and shut down,” said UBS analyst Daniel Morgan in Sydney.

“I think you’ll see a steady stream of these type of announcements for the next several months,” he added.

NIRB process will be thorough, Baffinland assures stakeholders (Nunatsiaq News – July 16, 2015)

July 17, 2015

http://www.nunatsiaqonline.ca/

Mary River dependent on growing its business to international market, company says

Baffinland Iron Mines Corp. got what it wanted earlier this week when the federal government granted the mining company an exemption that will allow its Phase 2 shipping expansion proposal to go directly to the Nunavut Impact Review Board for an environmental review.

But the mining company, which operates the Mary River iron mine in North Baffin, was hesitant about celebrating that news, given the reaction from a number of organizations, who say the request should never have bypassed the regional land use plan.

In a July 15 release, Baffinland said the NIRB assessment process will provide an opportunity for all stakeholders to look at the company’s proposal, which includes the expansion of their iron ore shipping season to about 10 months of the year and an increase in ore production from 4.2 million metric tons to 12 million metric tons per year.

“The project approval process in Nunavut is demanding and thorough, as it should be,” said Baffinland CEO Tom Paddon. “Baffinland’s continuing wish is that the project be given a fair and timely hearing. Proceeding to the environmental assessment process will ensure that occurs,” Paddon said.

5,000 year old mine, and the inspiration behind Rio Tinto, set to reopen – by Lawrie Williams (Mineweb.com – July 17, 2015)

July 17, 2015

http://www.mineweb.com/

One of the world’s most fascinating and oldest mines, Rio Tinto in Spain, is now at the final stage of development ahead of re-opening.

There now seems to be nothing in the way to prevent the full-scale go-ahead by AIM and TSX listed EMED Mining from re-opening one of Europe and the World’s most historic mining sites.

The Rio Tinto mine in Spain has been mined since 3000 BC, as well as being the birthplace at the end of the 19th Century of one of the world’s biggest mining companies – Rio Tinto, although it is no longer involved in the Spanish mine.

EMED has now announced receiving the final operating licence from the Rio Tinto Municipality, which is the last piece of paper necessary to let it go ahead with initiating mining operations at the historic site. Wet commissioning of the rebuilt and refurbished concentrator is already under way and the company says it is now scheduling first commercial production in Q3 this year.

Company CEO, Alberto Lavandira commented on the permitting award: “The receipt of the licence is a major milestone for the company as it represents the final permit required to start building up production over the next few months, ahead of the originally anticipated target date of January 2016.”

Progress on Ring of Fire development: slow and fraught with complications – by Jax Jacobsen (SNL.com – July 14, 2015)

July 17, 2015

https://www.snl.com/

When Cliffs Natural Resources Inc. suspended development on its chromite project in Ontario’s remote Ring of Fire in November 2013, many saw it as an opportunity for the province to get serious about addressing critical infrastructure and Aboriginal issues.

The Ring of Fire region, located in northwestern Ontario near the Manitoba border, is believed to possess between C$30 billion and C$50 billion in mineral resources, with Ontario’s Ministry of Northern Development and Mines estimating its value as high as C$60 billion. The Ontario Chamber of Commerce argued that development will generate as much as C$9.4 billion in GDP and create up to 5,500 jobs on an annual basis, all within the first 10 years of development.

This would be a substantial boon for the region, which is home to numerous First Nations communities but with very little business development or opportunity, due to its lack of transportation infrastructure connecting it to the rest of the province.

In May 2014, Ontario Premier Kathleen Wynne pledged C$1 billion for infrastructure spending to encourage mineral development in the region if she were re-elected. Wynne also pledged to create a development corporation to encourage and oversee development there.

Coal Producers Face New Stream Protection Rule From Interior – by Mark Drajem (Bloomberg News – July 16, 2015)

July 17, 2015

http://www.bloomberg.com/

Coal producers would be subject to new restrictions under an Obama administration proposal that would limit operations near streams and curb the disposal of waste, a plan that had been criticized even before it was issued.

The proposal from the Interior Department’s surface mining office, released Thursday, would replace a Bush-era regulation that was tossed out by a federal court. The rule would require companies to avoid mining practices that permanently pollute streams, destroy drinking water sources, increase flood risk or threaten forests.

“As we engage in mining, let’s do so in a way that helps mitigate the impact they can have on the environment,” Interior Department Secretary Sally Jewell said on a conference call. The rules would provide “a modern and balanced approach to energy development,” she said.

The rules won’t take effect until finalized, probably next year. They are meant to deal with the destruction of streams, watersheds, endangered species and forests tied to mountaintop mining for coal.

Hampton wants better relationship between feds and First Nations – by Amber McGuckin (Kenora Daily Miner and News – July 16, 2015)

July 17, 2015

http://www.kenoradailyminerandnews.com/

The Harper Conservatives are failing to work with Treaty 3 and Nishnawbe Aski Nation First Nations, causing an economic delay in creating good jobs and a better economy in Northwestern Ontario, according to Howard Hampton, federal NDP candidate in the Kenora riding.

“The Harper Conservatives’ refusal to cooperate with First Nations is delaying vital development projects for the Northwest,” said Hampton. “The Ring of Fire, four-laning the Trans-Canada from Manitoba to Kenora, and building a hydro transmission line to the Far North could all be a reality if the Conservatives would stop ignoring the First Nations in the region.”

Hampton noted that many mining, forestry and pipeline companies understand the importance of working in partnership with First Nations to move their projects forward.

“There is a clear connection between working in partnership with Shoal Lake 40 First Nation to build the ‘Freedom Road’ and a water treatment facility and moving forward with the four-laning of the Trans-Canada Highway from Manitoba to Kenora,” said Hampton.

POSCO may scrap planned $12 billion India steel project – by KRISHNA N. DAS AND JATINDRA DASH (Reuters India – July 16, 2015)

July 17, 2015

http://in.reuters.com/

NEW DELHI/BHUBANESWAR, INDIA – South Korean steelmaker POSCO could scrap plans for a $12 billion project it agreed to set up in India a decade ago, after a new law made it costlier to source iron ore for the plant, a company spokesman told Reuters.

The U.S.-listed shares of POSCO fell as much as 3.3 percent to their lowest in more than six and a half years after the report.

The 2005 project to set up a steel plant in Odisha state was billed as India’s biggest foreign direct investment at the time, but it has encountered a series of delays.

The company waited almost a decade to acquire land for the proposed 12 million-tonnes-a-year steel plant due to opposition from local tribal groups.

A mining law enacted in March by India means the company would now also have to buy a mining license in an auction. Originally, the Odisha government had promised to help the company obtain the licence for free.

Nexen pipeline leak in Alberta spills 5 million litres (CBC News Edmonton – July 16, 2015)

July 17, 2015

http://www.cbc.ca/news/canada/edmonton

Nexen Energy spill south of Fort McMurray covers about 16,000 square metres

One of the largest leaks in Alberta history has spilled about five million litres of emulsion from a Nexen Energy pipeline at the company’s Long Lake oilsands facility south of Fort McMurray.

The leak was discovered Wednesday afternoon. Nexen said in a statement its emergency response plan has been activated and personnel were onsite. The leak has been stabilized, the company said.

The spill covered an area of about 16,000 square metres, mostly within the pipeline corridor, the company said. Emulsion is a mixture of bitumen, water and sand. The pipeline that leaked is called a “feeder” and runs from a wellhead to the processing plant.

“All necessary steps and precautions have been taken, and Nexen will continue to utilize all its resources to protect the health and safety of our employees, contractors, the public and the environment, and to contain and clean up the spill,” the company said in the statement issued Thursday.

Lake Shore rocks the boat on Temex, Oban – by Kip Keen (Mineweb.com – July 17, 2015)

July 17, 2015

http://www.mineweb.com/

New offer upsets junior multi-merger.

It seems some Temex shareholders were near prescient in spurning Oban Mining. As noted in these pages, back in early June Oban Mining – a vehicle backed by some heavy hitters on the Canadian mining scene – made waves with a rather rare kind of offer: a merger with four other junior exploration companies with cash and/or exploration assets.

The deal involved arrangements with Eagle Hill Exploration, Temex Resources, Ryan Gold and Corona Gold. The former two have smallish, but high-grade gold resources, while the latter two mostly have cash.

In this, there was strong support in favour of the Oban proposition by Eagle Hill, Ryan Gold and Corona shareholders with lock-up share agreements covering 57%, 29% and 45% of their respective share counts.

But Temex was another case. As one analyst noted on a conference call around the time of the deal’s announcement last month, only 1% of Temex shareholders agreed to lockup in the Oban deal. Pitiful, really. Indeed, one disgruntled shareholder noted on that same call that the premium Temex would get in the deal (via shares in Oban) was less than the other juniors were getting.