Republic of Mining

HISTORY: In 1923 Timmins already bustling – by Karen Bachmann (Timmins Daily Press – May 23, 2015)

May 26, 2015

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – A few stories from the year 1923… let me first, however, set the mood. According to a number of news sites, some of the big news events for that year included the discovery of King Tutankhamun’s tomb (in February), the eruption of Mt. Etna in Sicily, which left over 60,000-plus homeless (in June) and the Great Kanto earthquake that nearly flattened Tokyo (over 100,000 people were killed).

Calvin Coolidge was sworn in as president of the United States after the death of President Warring Harding in August of that year – Harding had suddenly died while he was staying in the Palace Hotel in San Francisco, Calif.

In Canada, William Lyon McKenzie King continued on as Prime Minister, and, overseas, a young Adolph Hitler led the Nazi Party in a failed coup d’état in Germany (known as the Beer Hall Putsch). On the popular culture scene, Time Magazine was launched (and is still in print today), women’s one-piece bathing suits were all the rage (woo-hoo!) and Agatha Christie cranked out another Hercule Poirot mystery (“The Murder on the Links”).

So while the Cotton Club opened in New York City, Pablo Picasso built the stage sets for Jean Cocteau’s production of “Antigone” and Albert the Duke of York married Elizabeth Rowes-Lyon (later known as King George VI and Queen Elizabeth), this is what was happening in the Porcupine in 1923…

NEWS RELEASE: Barrick Announces Strategic Partnership with Zijin Mining Group

May 26, 2015

All amounts expressed in US dollars unless otherwise indicated.

TORONTO, May 26, 2015 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or “the company”) today announced that it has formed a strategic partnership with leading Chinese mining company Zijin Mining Group Co., Ltd (“Zijin”).

As a first step, Zijin will acquire 50 percent of Barrick (Niugini) Limited (“BNL”), the company which owns 95 percent of and manages the Porgera Joint Venture gold mine in Papua New Guinea. In addition, Barrick and Zijin have signed a long-term strategic cooperation agreement which outlines the intent of both companies to collaborate on future projects and joint investments, leveraging the strengths of each company.

“A twenty-first century mining company with global reach and the intention to become an industry leader must, by definition, have a distinctive relationship with China. This is particularly true in our industry, where China has become both the largest producer and consumer of gold, and a major source of capital and expertise for the mines of the future,” said Barrick Chairman John L. Thornton. “Our partnership with Zijin is the first step in a long-term strategic relationship with one of China’s leading mining companies—a multi-faceted partnership that will provide significant opportunities to work together on an ongoing basis as we continue to create value for our respective owners.”

“A strategic partnership with Barrick is an excellent fit for Zijin and a powerful combination as we look to expand our business globally outside of China. Our companies have complementary expertise and experience and share a common vision for creating long-term value for our owners,” said Zijin Chairman Chen Jinghe.

UPDATE 2-Barrick sells Australian Cowal gold mine to Evolution for $550 mln – by Sam Forgione and Sonali Paul (Reuters U.S. – May 25, 2015)

May 25, 2015

http://www.reuters.com/

NEW YORK/MELBOURNE, May 25 (Reuters) – Barrick Gold , the world’s top gold producer, has agreed to sell its Cowal mine to Evolution Mining for $550 million in a deal that will turn Evolution into Australia’s second largest producer of the precious metal.

The deal gives Evolution a large, low-cost mine that will boost its output to around 800,000 ounces a year, around one-third the output of top Australian producer Newcrest Mining .

“This is a truly transformational acquisition for Evolution,” Executive Chairman Jake Klein said after the deal was announced on Monday. “This is the high quality asset we have been looking for to cornerstone our business.”

Barrick put Cowal up for sale along with its Porgera mine in Papua New Guinea, among other assets, in an effort to cut debt by $3 billion by the end of this year.

Analysts congratulated Evolution for snaring Cowal for well below the $650 million price tag it had been expected to fetch.

European mining seemingly regaining lost lustre as at least one mine opens each year since 2008 – by Ilan Solomons (MiningWeekly.com – May 22, 2015)

May 25, 2015

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

HANNESBURG (miningweekly.com) – Europe is remarkable in that its mining industry predates the Roman Empire, yet large portions of unexplored territories with highly prospective resources remain, says European metals and minerals mining representative body Euromines president Mark Rachovides.

Mattia Pellegrini, head of the raw materials, metals, minerals and forest-based industries unit of the European Commission* Directorate-General for the Internal Market, Industry, Entrepreneurship and Small and Medium-sized Enterprises, tells Mining Weekly that the body recently commissioned a study to assess the competitiveness of the European mining industry.

The results highlighted that the 28 member countries of the European Union (EU) have an active nonenergy extractive industry that produces a wide range of commodities.

He adds, however, that the results also showed the EU’s “modest” contribution to the global production of mineral resources. “Nevertheless, when one considers investment in exploration in some of the EU member States during the past five years, there is an encouragingly increasing trend,” states Pellegrini.

Forrest fire: Twiggy’s secret bid to salvage iron ore price – by Andrew Burrell and Paul Garvey (The Australian – May 23, 2015)

May 25, 2015

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

For the second time in five years, Andrew Forrest has been comprehensively out-lobbied, out-manoeuvred and out-muscled in Canberra’s halls of power by his despised rivals BHP Billiton and Rio Tinto.

The billionaire chairman of Fortescue Metals Group is seething at being snookered again by two multinationals he believes are hellbent on pushing him out of business by driving down the iron ore price.

“This won’t be the end of it — he won’t stop now,” said a close ¬associate of Forrest’s after Joe Hockey bowed to the demands of BHP and Rio by announcing on Thursday that there would be no ¬inquiry into the iron ore market.

Another was more blunt: “He will keep going — he actually believes his own bullshit.”

Sure enough, at the crack of dawn yesterday, the indefatigable Forrest hit the national airwaves from Perth in a bid to reboot his campaign, suggesting BHP and Rio had sent “plane loads” of ¬lobbyists to Canberra in recent days to convince the government to call off the planned inquiry.

[Potash Mineral] Products ‘feed and fuel the world’ (Saskatoon StarPhoenix – May 22, 2015)

May 25, 2015

http://www.thestarphoenix.com/index.html

Pamela Schwann, executive director of the Saskatchewan Mining Association, answered a few questions from Paul Sinkewicz during the seventh annual Mining Supply Chain Forum held April 14 and 15 in Saskatoon

Q How important is mining to Saskatchewan’s economy?

A Mining is one of Saskatchewan’s key economic engines of growth, directly contributing approximately seven per cent of our GDP. When you also include the related service sector industry that supplies to the mining sector, that number adds up into the double digits.

Q What role does mining play in the lives of Saskatchewan residents?

A On the surface, this is what you see: There are over 25 different mining operations in Saskatchewan spread out across the province from the coal mines along the U.S. border to the potash deposits that stretch across the south central part of the province to the uranium and gold mines in the northern part of Saskatchewan.

[Iron] Range Resiliency Tested Again: WE WILL PERSEVERE – by Bill Hanna (Mesabi Daily News – May 23, 2015)

May 25, 2015

http://www.virginiamn.com/

Resilient — adjective.

1. Springing back; rebounding.

2. Recovering readily from adversity or the like.

The word resilient definitely defines a strong quality of the Iron Range, its people and our No. 1 industry of mining.

The Range has had to bounce back several times from economic difficulties associated with the ore and steel industries. And we have done so repeatedly through hard work, innovation and a never-give-up attitude.

The Range’s resiliency is now being tested once again because of a downturn in the ore and steel industries brought on in a major way by illegally subsidized steel that has flooded the U.S. market and a glut of iron ore that has lowered prices for the resource.

These certainly are some tough times for mining on the Iron Range. But, once again, the resolve of the companies and people who flip the switch of the industry to make it go will persevere.

EXECUTIVE COMPENSATION: Gold company stock options lose their glitter – by David Milstead (Globe and Mail – May 22, 2015)

May 25, 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.

Canada’s gold companies are notorious, to use a loaded word, for the millions of dollars they’ve paid their executives in the past several years even as the price of gold, and the companies’ share prices, have tumbled.

But there’s one place in the summaries of executive pay where gold chief executive officers are racking up zeros: The current profits of the stock options they hold.

A look at the options held by the top executives at five major TSX-listed gold companies – Goldcorp Inc., Barrick Gold Corp., Agnico Eagle Mines Ltd., Yamana Gold Inc. and Eldorado Gold Corp. – shows none of the five men held any stock options at the end of 2014 that were “in the money,” or exercisable for any profits.

That certainly could change if the mining industry’s fortunes improve, because many of the options don’t expire for two to five more years. On the flip side, however, a number of the options the executives held at the end of 2014 have since expired, useless.

A prolonged slump, then, could mean that what has been a key compensation tool will turn out very different than expected.

Indian PM breathes life into Posco’s stalled project – by Ajoy K Das (MiningWeekly.com – May 21, 2015)

May 25, 2015

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

KOLKATA (miningweekly.com) – South Korean steel major Posco’s plans for securing iron-ore resources for its $12-billion Indian investments have been thrown a lifeline through the intervention of Indian Prime Minister Narendra Modi.

The project, which has been hanging fire for over a decade, was given a nudge following the Prime Minister’s two-day Seoul summit with Korean President Park Geun-hye, followed by a meeting with Posco CEO Kwon Oh Joon earlier this week.

Senior officials in the Steel Ministry said that the Indian Prime Minister held a series of talks on bilateral economic issues with Korean political and business leaders, but Posco investments, almost on the verge of being scrapped, did not specifically figure during this visit.

This initially was considered a disappointment, as Posco’s plans to set up a 12-million-tonne-a-year steel plant in the eastern Indian port town of Paradip, in Odisha, linked to the Khandadhar iron-ore reserves, represented the single largest foreign direct investment in the country, the official said.

However, soon after his return, Modi was reported to have pushed for several initiatives aimed at getting the stalled project off the ground.

[Mining] Education, research help create success – by Brian Burton (Saskatoon Phoenix – May 20, 2015)

May 25, 2015

http://www.thestarphoenix.com/index.html

Alberta couldn’t do it — but Saskatchewan did. Today it’s home to the world’s first carbon capture and storage (CCS) operation at a coal-fired power plant.

Alberta approved three coal-based CCS projects and saw proponents back away from all of them. Meanwhile, SaskPower completed its $1.5-billion CCS unit at the Boundary Dam coal-fired power plant in 2014 and now captures 1.2 million tonnes of carbon dioxide a year, equivalent to removing 250,000 cars from the road. Captured carbon dioxide is mostly injected into Weyburn and Midale oil reservoirs; earning a revenue on CCS, boosting oil production, prolonging oilfield life and raising provincial crude royalties.

While some jurisdictions, notably Ontario, have turned their backs on carbon-heavy coal, Saskatchewan is making the technical and environmental case for continued use of a resource that provides about 70 per cent of its electric power.

“It enables the continuation of coal use in the generation of electric power,” says David Grier, chief strategist with Innovation Saskatchewan. Without CCS, he says, new carbon dioxide limits could have spelled the end of coal mining in the province.

Nickel Mine, Lead Bullets: Maya Q’eqchi’ seek justice in Guatemala and Canada – by Sandra Cuffe (Mongabay.com – May 19, 2015)

May 25, 2015

http://www.mongabay.com/

German Chub faces the judge as he responds calmly and evenly to question after question during cross-examination. He uses his arms to lift himself up and shift a little in his wheelchair. Other young Maya Q’eqchi’ men had to carry him up the stairs to the second-floor courtroom in Puerto Barrios, a bustling Caribbean port city in eastern Guatemala.

Five and a half years ago, Chub was playing soccer in the community of La Unión, in the department of Izabal, when security guards from the Guatemalan Nickel Company (CGN), a mining corporation, showed up, he told the court. Chub heard a commotion coming from the direction of company-owned hospital property and approached the fence separating the company complex from the soccer field to see what was going on, he said.

“I saw Mynor Padilla pointing his pistol at me,” Chub testified. “When I turned around, I heard the gunshot.”

Chub is one of several Maya Q’eqchi’ community members shot on September 27, 2009 during a crackdown on protests over threats that a group would be evicted from its ancestral lands near CGN’s Fenix ferro-nickel mining project. Chub is paralyzed from the chest down as a result, and doctors determined it too risky to remove the bullet lodged near his spine.

UPDATE 1-Potash Corp evaluating SQM, ICL stakes; other holdings ‘strategic’ – by Rod Nickel (Reuters U.S. – May 21, 2015)

May 25, 2015

http://www.reuters.com/

May 21 (Reuters) – Potash Corporation of Saskatchewan Inc Chief Executive Jochen Tilk said on Thursday that he views the company’s stakes in fertilizer companies Sinofert Holdings and Arab Potash Company as “strategic,” but continues to review whether to keep its shares in ICL and SQM.

Tilk, speaking at a BMO investor conference in New York, said if Potash Corp could not build on its SQM and ICL minority stakes, it will consider whether it should keep them.

Potash Corp has control over how Jordan’s Arab Potash Company markets its potash, and Tilk said the Sinofert stake gives Potash a window into the Chinese market. But the company does not have as much influence as it wants over SQM and ICL.

Tilk said in an interview that he has not spoken with Israeli Prime Minister Benjamin Netanyahu about whether he would permit a foreign company to take control of ICL, in which the government holds a golden share.

Potash Corp tried under former Chief Executive Bill Doyle to gain a majority stake in ICL, but ran into strong opposition and backed off in 2013.

New PC leader [Patrick Brown] urged to speak up for Ring of Fire – by Staff (Sudbury Star – May 25, 2015)

May 25, 2015

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

Northern Development and Mines Minister Michael Gravelle is calling on the new leader of Ontario’s Progressive Conservatives to stand up to the Harper government and demand federal funding for the Ring of Fire.

Patrick Brown is the former Barrie Conservative MP who won the provincial PC leadership earlier this month. “Mr. Brown is no longer part of the federal Conservative caucus and has the opportunity to speak freely,” said Gravelle. “I hope he uses this as a chance to stand up for the North.”

Gravelle said the Liberal government of Premier Kathleen Wynne has committed $1 billion to develop the Ring of Fire and reached a regional framework agreement with the chiefs of the Matawa Tribal Council.

“Meanwhile, the federal government hasn’t stepped up to the plate,” said Gravelle. The Thunder Bay-Superior North MPP said Brown recognized the importance of the Ring of Fire in a leadership debate in Sudbury on Nov. 24, 2014.

Gravelle said Brown told an audience he believes there’s tremendous opportunity “for our party to highlight a credible plan for how we’re going to make sure … the Ring of Fore develops, and it’s going to be extremely beneficial to all Ontario, but especially Northern Ontario.”

Ontario’s new PC Leader [Patrick Brown] tours Ring of Fire with Nipissing MPP – by KA Smith (Bay Today – May 22, 2015)

May 25, 2015

http://www.baytoday.ca/

After a helicopter tour of the Ring of Fire, Ontario PC Leader Patrick Brown met with supporters at the Discovery North Bay Museum early Friday evening.

Brown told reporters, “I wanted to make my first trip as the Ontario PC leader to Northern Ontario to show it’s a priority for me.” Brown toured a parcel of the Ring of Fire with representatives of NORONT Resources and Nipissing MPP Vic Fedeli.

Brown is calling for the Ring of Fire to be at the centre of any economic plan for Northern Ontario. Brown denounced the Liberal government for their inaction. “Talk is cheap. There hasn’t been a single application. There hasn’t been a foot of road built and there hasn’t been a foot of rail built.”

“I just feel we’ve let down this opportunity. It is tremendously fortunate for Ontario to have resources like that, whether it’s the chromite or the nickel. Seeing the tests, and seeing the base camp reminds me sort of like a new frontier. This is an opportunity in North Ontario that we have to forge.”

Brown says there has to be an easing of red tape, energy costs have to come down and there must be a plan for transportation.

Fortescue’s Andrew Forrest maintains iron ore rage – by Paul Garvey (The Australian – May 22, 2015)

May 22, 2015

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

Fortescue Metals Group founder Andrew Forrest has vowed to continue his calls for greater scrutiny of mining giants BHP Billiton and Rio Tinto, despite the federal government’s official rejection of an inquiry into the iron ore market.

Joe Hockey yesterday declared that the inquiry — originally supported by Tony Abbott — would not go ahead, drawing an angry response from Mr Forrest.

The billionaire mining entrepreneur, who has been campaigning for months for governments to pressure BHP and Rio over their strategy to continue lifting iron ore production, said the “hysterical” lobbying of multinational mining giants caused the inquiry to stall.

In an opinion piece written for The Australian, Mr Forrest questioned what the mining giants had to fear from an inquiry.

“Those that paint me as an interventionist from behind their Singapore tax shields know the iron ore industry is an oligopoly in which the big three each wield more market power than Saudi Arabia in oil and where the barriers to entry are huge and built on decades of subsidies,” he said.