Republic of Mining

Northern Superior Resources vs. Ontario postponed to October (CBC News Sudbury – May 29, 2015)

June 1, 2015

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

Outcome of lawsuit between junior miner and province to determine duty to consult with First Nations

A Sudbury junior miner said the province is balking at producing promised documents in a $110 million lawsuit.

Northern Superior Resources is suing the Ontario government for failing to consult with First Nations on mining claims A trial date set for Monday has been pushed to October.

The president and CEO of Northern Superior Resources, Tom Morris, said the delay is a result of the government’s failure to disclose certain documents by the deadline.

The litigation, Morris said, is based on the company’s loss of several gold claims in the northwest near the Manitoba border in 2011 after a series of disputes with the Sachigo Lake First Nation.

“We’re looking for a settlement,” he said. “We’re looking to get our investment back so we can redeploy our monies elsewhere. I do have a fiduciary duty to recover those monies for our shareholders.”

Platinum sector faces its Kodak moment in fuel cell technology – by Clara Denina and Silvia Antonioli (Reuters U.S. – May 29, 2015)

June 1, 2015

http://www.reuters.com/

LONDON, May 29 (Reuters) – Platinum miners betting on fuel cell vehicles to help boost demand for the precious metal and lift moribund prices are in danger of having their hopes dashed, at least in the medium term: electric and hybrid cars are taking a bigger share of the market.

The world’s three largest platinum producers Anglo American Platinum (Amplats), Impala Platinum and Lonmin are all investing in projects related to fuel cell technologies, which generate electricity that can power vehicles by combining hydrogen and oxygen over a platinum catalyst.

But analysts doubt fuel cell vehicles will rival the growth of their electric counterparts, mostly because battery recharging stations are less costly and already more widespread than hydrogen refuelling stations.

“As out of the two new technologies only fuel cells use platinum, I guess the miners think they have no choice,” Macquarie analyst Matthew Turner said. “But people are buying electric cars…and that’s not the case for fuel cells.”

Amplats, which has invested about $35 million in the last five years in companies developing new uses for platinum, mostly through fuel cell technology, is mindful of the stakes.

Sudbury letter: Liberals fail the North: PC leader – by Patrick Brown (Sudbury Star – May 28, 2015)

June 1, 2015

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

Patrick Brown is the Ontario PC leader.

Re: New PC leader urged to speak up for Ring of Fire, May 24:

During my leadership campaign, I vowed to make Northern Ontario a priority. On Friday, one of my first trips as the new leader of the Ontario PC Party was meeting with the Northern community and visiting Ontario’s Ring of Fire.

Over the past 12 years, the Liberal government has ignored the value and potential of Northern Ontario. Just like her predecessor, Dalton McGuinty, who said “we are not going succeed in Ontario by pulling stuff out of the ground”, Premier Kathleen Wynne has also shown her disregard of Northern Ontario by ensuring no progress has been made in developing the Ring of Fire.

This Liberal government is failing to unlock the full economic potential of the Ring of Fire and instead continues to blame the federal government, which is simply asking for a plan and is not about to write a blank cheque.

[War Plan Red-U.S. Invades Canada] Sudbury’s nickel important to Americans’ military might – by Stan Sudol (Northern Life – February 5, 2006)

June 1, 2015

http://www.northernlife.ca/

Please note that this article, was originally published in 2006.

If the Yanks went to war with the Brits in the 1920s, American troops would have tried to invade Sudbury from northern Michigan

Canada and the United States have been economic and military allies for most of the 20th century, notwithstanding the bad chemistry between our leaders from time to time. Hopefully Prime Minister Stephen Harper will be able to soon repair the damage in relations caused by the Paul Martin Liberals.

However, throughout much of American history, many influential politicians were firmly committed to the expansionist ideology of Manifest Destiny. This is the belief that the United States has an “inherent, natural and inevitable right” to annex all of North America.

So it should not be a huge surprise to learn that the United States military had prepared a Joint Army and Navy Basic War Plan to invade Canada in the late 1920s, and updated it in 1935. The document called War Plan Red was declassified in 1974. However, the story resurfaced a short time ago in a Washington Post (Dec.30, 2005) article by journalist Peter Carlson headlined Raiding the Icebox; Behind Its Warm Front, the United States Made Cold Calculations to Subdue Canada.

NEWS RELEASE: Official opening of the Port of Saguenay rail link and intermodal rail yard – Vital rail link for the regional mining industry in Quebec

June 1, 2015

SAGUENAY, QC, May 29, 2015 /CNW Telbec/ – The Honourable Denis Lebel, Minister of Infrastructure, Communities and Intergovernmental Affairs and Minister of the Economic Development Agency of Canada for the Regions of Quebec, on behalf of the Honourable Lisa Raitt, Minister of Transport, was joined today by Mr. Serge Simard, Parliamentary Assistant to the Premier for the Saguenay–Lac-Saint-Jean region and Member for Dubuc, on behalf of the Honourable Robert Poëti, Quebec Minister of Transport, Mr. Jean Tremblay, Mayor of the City of Saguenay, and Mr. Richard Létourneau, Vice Chairman of the Board of Directors of the Saguenay Port Authority to mark the official opening of the rail link connecting the Grande-Anse terrminal in the Port of Saguenay to the Roberval-Saguenay rail line and of the intermodal rail yard at the Port of Saguenay.

The 12-kilometre rail link and the intermodal rail yard at the Port of Saguenay will facilitate the transfer of goods from the railway network to ships docking at the Grand-Anse marine terminal. Traffic will be bidirectional.The new rail link will provide shippers with additional transportation options, increase the efficiency and capacity of port operations, and facilitate interprovincial and international trade.

The Grande-Anse terminal in the Port of Saguenay benefits from its deep water location, its industrial development potential, and its geographic location near urban services in the heart of a region that has direct access to the regions of Northern Quebec and has a number of heavy industries, particularly in the aluminum manufacturing and forestry sectors.

NEWS RELEASE: ONTARIO HIGH SCHOOL STUDENTS & TEACHERS AWARDED OVER $42,000 IN CASH PRIZES AT ROYAL ONTARIO MUSEUM

May 29, 2015

Best Overall Entry: Women, The Future and Mining – by Marika Moskalyk, Marymount Academy, Sudbury

To view all the winning entries, click here: http://sytykm.oma.on.ca/peopleschoice/awardwinners?year=2015&utm_source=2015+SYTYKM+news+release&utm_campaign=SYTYKM+winners+announced&utm_medium=email

TORONTO, Ontario – The Ontario Mining Association today announced the winners of 7th annual So You Think You Know Mining video competition, which challenges students to tell imaginative stories about the benefits of mining to society.

Nearly 300 videos from across the province were evaluated by an independent panel of media and mining professionals to determine the winning entries in nine award categories, with prize money ranging from $2,500 to $5,000, and each winning video earning a $500 bonus for the contestant’s school. In addition, the public voted online to select the winner of the $2,500 People’s Choice Award.

Fortune Lost: The short, brutal and costly ride of China Investment Corp. in Canada – by Peter Koven and Claudia Cattaneo (National Post – May 29, 2015)

May 29, 2015

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

As May 19th, 2015 approached, China Investment Corp. was faced with a scenario that every pension or sovereign wealth fund dreads: whether to allow one of its key investments to live or die.

SouthGobi Resources Ltd. has become a sad story in Canada’s mining sector. The Vancouver-based company, which operates in Mongolia, is almost entirely out of cash. Its operations are deep in the red. Its CEO recently resigned. And a Mongolian court this year fined the company US$18.2 million in a very dubious tax-fraud case.

SouthGobi had a US$7.9 million interest payment coming due to China Investment Corp. (CIC) on the 19th that it was in no position to pay. State-owned CIC had two options, neither very attractive: call the loan and potentially force SouthGobi into creditor protection, or defer the payment and let the company stagger along for another couple of months trying to seek rescue funding. Not surprisingly, CIC chose the latter.

The mess at SouthGobi is just the latest misfortune among several significant bad calls CIC ended up making in its investments in Canada. Since beginning to stake major capital here six years ago, the corporation’s short experience in Canada is a story of lousy timing, costly miscalculations, and an investment strategy too vulnerable to the allure of speculative ventures talked up by sophisticated stock promoters — and not enough on conservative plays better able to withstand volatile commodity markets.

The iron ore price equation that makes Fortescue attractive for China – – by Anne Hyland (Australian Financial Review – May 29, 2015)

May 29, 2015

http://www.afr.com/

CITIC Group and Baosteel Group, which are said to be interested in Fortescue Metals Group, are two of the most politicised companies in China. Baosteel is China’s leader in the steel industry and CITIC was anointed to make significant investments outside China, such as the $10 billion Sino Iron project, which has been described as the worst mining investment in Australia in the past decade.

What is almost certain is that CITIC and Baosteel, which is developing an iron ore project with Aurizon, won’t bid against each other for Fortescue or other resource companies. It would be politically unpalatable in China and it’s typically not what China Inc does.

While there would be a dozen companies in China capable of taking out Fortescue, only one would get the green light, say veteran China observers.

At the Stockbrokers Association conference on Thursday, Li Xinchuang, president of the China Metallurgical Industry Planning Association, firmed up speculation with comments that Fortescue would benefit from a Chinese investor, while saying he didn’t believe the argument that there was a global oversupply of iron ore.

The road to recovery for Ontario’s mining sector is paved in gold – by Robert Spence (Mining Global.com – May 28, 2015)

May 29, 2015

http://www.miningglobal.com/

Ontario is one of the top mining jurisdictions in the world. In recent years, the jurisdiction has been in a downturn.

The province, which is home to more than 40 operating mines, is the largest producer of gold, nickel, copper and platinum metals in Canada. Ontario’s mineral production is valued at $9.2 billion with more than $4 billion annually invested in research and development (R&D), exploration, construction and equipment.

In a recent article by NorthernLife.ca, industry stakeholders agreed that Ontario is falling behind as a mining jurisdiction. The article spotlights that while the province has shifted its focus to the Ring of Fire, which many believe is moving slower than anticipated, key figures see the government neglecting other parts of the province.

“All we hear about is the Ring of Fire. Let me explain something about the Ring of Fire. It’s not the only thing going on in this province. I’m sick to death of it,” said Gino Chitaroni, president of the Northern Prospectors Association.

“We have a lot of projects out there that could be economic very shortly, but we have to encourage them,” Chitaroni said. “I don’t see it happening.”

Norway oil fund plans to withdraw from coal-burning utilities – by David Crouch and Pilita Clark (Financial Times – May 27, 2015)

May 29, 2015

http://www.ft.com/intl/world/europe

Gothenburg and London – Norway’s $916bn oil fund will consider pulling billions of dollars of investments out of coal in a move that threatens European utilities using the fossil fuel to generate power.

Members of the finance committee of Norway’s parliament confirmed on Wednesday night that opposition and governing parties had reached agreement that the fund should withdraw investments from companies whose business relies more than 30 per cent on coal, measured either by revenue from fossil fuel or by the percentage of power they generate from it.

The proposal will be put to parliament on Thursday for a vote on June 5 but cross-party agreement means it is very likely that it will be passed.

Norway’s move is one of the most significant responses yet to a global divestment campaign that aims to ‎stigmatise the use of coal and other fossil fuels because of their input to climate change.

“This will make a huge difference, it will have influence on ordinary miners and energy companies,” said Terje Breivik, a Liberal party member of the finance committee. “The main explanation is that the oil fund itself is aware of the financial risk due to climate problems.”

The History of Erie Mining Company (Hometownfocus.us – May 29, 2015)

May 29, 2015

http://www.hometownfocus.us/

A project to document the history of the pioneering research, preliminary pilot plant, and construction and operation of the world’s first completely integrated taconite mine.

In early 2014, a team of willing and dedicated former Erie Mining Company/ LTV Mining employees began meeting monthly at the Hoyt Lakes City Hall. The team set as its purpose to document the initial development of Minnesota’s taconite Industry by preparing a history of the pioneering research, construction and operation of Erie Mining Company and the establishment of the town site of Hoyt Lakes.

Partnering with the St. Louis County Historical Society, the group established a goal of publishing a quality book, containing both the technical and pictorial history of the mine, plant site, railroad, power plant and harbor, town sites of Hoyt Lakes, Taconite Harbor, and Murphy City as well as the personal stories and experiences of the employees, contractors, vendors, and “town folk” who built and operated one of the world’s largest and most innovative green field mining operations, and one of our nation’s largest private capital enterprises of the past century.

The group contacted local historians, the Minnesota Historical Society and others, who confirmed that there are no comprehensive, historically accurate books documenting the history of the Erie Mining Company, or for that matter, any of Minnesota’s taconite mining and processing operations.

Editorial: Making the case for subsidizing Arctic work -Editorial (Northern Miner – May 28, 2015)

May 29, 2015

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

Five industry groups focused on mining and mineral exploration in northern Canada have produced a timely report that quantifies the extra costs of carrying out work in Canada’s remote Arctic and sub-Arctic areas, and makes recommendations on how various levels of government can encourage mining activity in these places.

Called Levelling the playing field: Supporting mineral exploration and mining in remote and northern Canada, the report was produced by the Association of Consulting Engineering Companies Canada, the Mining Association of Canada, the Northwest Territories and Nunavut Chamber of Mines, the Prospectors & Developers Association of Canada and the Yukon Chamber of Mines.

They describe a “hefty cost premium” associated with working in remote and northern parts of Canada, and the challenges that industries in southern Canada don’t have to face: remoteness, severe weather, undeveloped infrastructure, and in many cases, sparse or no populations for hundreds of kilometres.

The main — and not particularly surprising — finding, backed up by empirical evidence, is that the “cost premium for both exploration and mining is directly linked to the transportation deficit” in remote and northern Canada, and that the “primary driver of cost variation was the distance of a project from the transportation infrastructure required to service the needs of the project.”

China Dotes on South American Infrastructure – by Tim Maverick (Wall Street Daily – May 28, 2015)

May 29, 2015

http://www.wallstreetdaily.com/

In April, I told readers about the billions of dollars China was pumping into the New Silk Road, connecting Pakistan to China. But China isn’t stopping there. It seems the economic powerhouse has also set its sights on South America.

Chinese Premier Li Keqiang just completed an extensive nine-day tour of Brazil, Peru, Chile, and Colombia. These four countries account for 57% of China’s quickly increasing trade with South America.

In January, Li promised $250 billion in investment into South America over the next decade. As of the end of 2014, China had already invested nearly $100 billion into its favorite countries.

On his current tour, Li is lavishing billions more on a number of deals, most of which center around infrastructure, such as rail.

You see, China is unflinching in its quest for power and security. Meaning the Chinese want to ensure speedy delivery of the precious commodities produced in South America.

Chinese President’s new Silk Road plan will fail unless ideas are free to travel – by Carl Mortished (Globe and Mail – May 29, 2015)

May 29, 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.

“One Belt, One Road” is China’s slogan for a 21st-century revival of the ancient trading routes that linked Han Dynasty silk merchants with Central Asia and the Mediterranean. President Xi Jinping’s big idea is investment in roads, railways, ports and pipelines that will link China to the world.

However, the ancient Silk Road was more than a caravan of camels loaded with stuff. It was also a convoy of ideas, and this may be where the Chinese Communist Party’s great ambition comes a cropper.

The first question you have to ask is why China needs such a vision of a new Silk Road.

The Chinese President sought to give a romantic gloss to his plan when he first mentioned it in 2013 on a visit to Kazakhstan, noting the thousands of years of trade between the two nations on the Silk Road. Last year, he announced a $40-billion (U.S.) infrastructure fund to build roads, railways, ports and airports across central and south Asia, and this year China reaffirmed its political ties to Pakistan with a promise of $45-billion of infrastructure investment.

S. Africa Plans $124 Million Payout for Lung-Diseased Miners – by Kevin Crowley (Bloomberg News – May 29, 2015)

May 29, 2015

http://www.bloomberg.com/

South Africa plans 1.5 billion rand ($124 million) of payouts from a compensation fund for miners suffering from lung diseases that affect about 700,000 people, Health Minister Aaron Motsoaledi said.

Companies including AngloGold Ashanti Ltd., the world’s third-biggest miner of the metal, are participating in the project rolled out by the Department of Health to unblock a backlog of 500,000 claims. Compensation will apply to sufferers of tuberculosis, silicosis, and other illnesses, Motsoaledi said. Workers from other countries are also eligible to apply, he said.

“Our goal is to compensate current and ex-mineworkers who have submitted valid and compensable claims,” he told reporters in Carletonville, a gold-mining town 86 kilometers (53 miles) west of Johannesburg. “I’m here to pay back the money.”

Silicosis, a lung disease caused by inhaling dust from mines, causes scar tissue in the lungs, increasing vulnerability to tuberculosis that can kill more than half of sufferers if not properly treated. South Africa is source of about a third of all gold yet produced globally and the continent’s biggest coal producer.

Separately, lawyers representing sufferers of silicosis say companies including AngloGold and Harmony Gold Mining Co. are to blame for workers catching the disease because they operated without adequate ventilation for the past 60 years.