Republic of Mining

Peru may declare state of emergency in province hit by anti-mining protests (Fox News Latino – May 7, 2015)

May 8, 2015

http://latino.foxnews.com/index.html

Peru’s government is studying the possibility of declaring a state of emergency in the southern province of Islay, where protests against Southern Copper’s Tia Maria project have left two dead and nearly 200 injured in recent weeks.

President Ollanta Humala’s administration is considering adopting a different strategy in response to the clashes in Islay, a province in the Arequipa region where local farmers launched an “indefinite strike” 45 days ago, Energy and Mines Minister Rosa Maria Ortiz told Radio Programas del Peru on Thursday.

“(Declaring a state of emergency) is one of the possibilities being considered. We haven’t decided yet. We’re going to continue discussing this matter at the Cabinet level and with the president,” Ortiz said.

She lamented that negotiations between the government and opponents of the copper project broke down once again on Thursday, when local authorities and grassroots leaders in Islay abandoned the talks without reaching an agreement.

The minister blamed the mine opponents for the failure of the talks, saying they had demanded cancelation of the project as a pre-condition.

Kincardine nuclear waste site gets federal seal of approval – by John Spears and Lauren Pelley (Toronto Star – May 7, 2015)

May 8, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Deep Geologic Repository proposed by Ontario Power Generation at its Bruce site is “not likely to cause significant adverse environmental effects,” report concludes.

A federal panel has given an overall seal of approval to the controversial nuclear waste disposal site proposed for a subterranean crypt below the Bruce nuclear station near Kincardine, Ont.

“The Panel concludes that the project is not likely to cause significant adverse environmental effects” given the measures contemplated to curb them, says the report by the Joint Review Panel.

The panel’s favourable view of the project, proposed by Ontario Power Generation, overcomes a major regulatory hurdle in the construction of the Deep Geologic Repository, or DGR in industry jargon, which would see nuclear waste buried hundreds of metres underground near the shore of Lake Huron.

Press Release: Antwerp Strengthens Ties With Canadian Miners (May 8, 2015)

May 8, 2015

https://www.awdc.be/en/homepage

Press Release: Canada is the third-largest diamond producer in the world and one of the most important suppliers of rough diamonds to Antwerp. Last week, the Antwerp World Diamond Centre (AWDC), spearheaded by governor Cathy Berx, traveled to Montreal, Toronto and Yellowknife. The meetings with mining company Stornoway Diamond Corp. provided strong indications the company is considering to commercialize its entire production from the Renard mine in Quebec through Antwerp.

Stornoway is the first producer to exploit a mining area in the Canadian province of Quebec. The Renard mine is expected to yield 1.6 million carats of diamonds annually, with a value of $304 million and production estimated to hit the market as of the second half of 2017. If the Renard production is marketed in Antwerp, the share of rough diamonds from Canada on the Antwerp market could increase by 64 percent.

As trade center and diamond producer, Antwerp and Canada have always maintained a close relationship because of the quality demands that both implement with regard to transparency, ethical values and observance of national and international standards.

In recent years, Canada has undergone significant changes with regard to diamond mining. Ari Epstein, the CEO of the AWDC, said, “A number of legislative changes have ensured that the regional and local authorities, such as the Northwest Territories, have obtained wider competencies as concerns the mining industry.

Important to get Ring of Fire ‘right’: Gravelle – by Jonathan Migneault (Sudbury Northern Life – May 08, 2015)

May 8, 2015

http://www.northernlife.ca/

Mines minister addresses Chamber of Commerce

Despite some frustration the Ring of Fire development has been at a standstill for years, Minister of Northern Development and Mines Michael Gravelle said it’s important to “get it right” before moving ahead with any infrastructure investments.

Gravelle was in Sudbury Thursday, where he addressed the city’s Chamber of Commerce with an update on Ontario’s mining sector.

While the province has committed to invest $1 billion to build infrastructure to connect the remote Ring of Fire mineral deposit by road, it has not yet provided any details as to when that work will begin.

“Timelines can and may be altered depending on moving forward with the work we’re doing with the Ring of Fire Development Corporation,” Gravelle said after his speech.

Gravelle said the companies involved in the Ring of Fire understand moving their deposits into production will take time. “(Noront Resources president and CEO Alan Coutts) wants to see the project move as quickly as possible, but he’s cautious, as we are, that we make sure the First Nations that are directly impacted by any mine development, that we make sure they can see real benefits from the project,” Gravelle said.

First Nations firmly rooted on both sides of the resource development debate – by Trevor McLeod and Roger Gibbins (Troy Media – May 6, 2015)

May 8, 2015

http://www.troymedia.com/

Trevor McLeod is the Director of the Centre for Natural Resources Policy at the Canada West Foundation and Roger Gibbins is a Senior Fellow with the Foundation. www.cwf.ca

CALGARY, AB – Potential resource developments too often face an unbridgeable abyss, with project proponents perched on one side and First Nations and environmentalists on the other. Unfortunately, the historic bridge-builders are absent.

Governments have abandoned the space and are assumed to favour project proponents. Regulators, like the National Energy Board, are able to answer “how” a resource might be developed but do not always have the scope to answer the “should” question.

And so we have a stalemate, which is a win for those opposed to development – and a signal to the business community to take its money elsewhere.

If we rethink our initial assumptions, however, we may realize it is a mistake to place First Nations on either side of the abyss. In fact, they are firmly rooted on both sides.

Will Notley refine Alberta’s oil royalty regime or her election promises? – by Konrad Yakabuski (Globe and Mail – May 8, 2015)

May 8, 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.

A few weeks ago, Rachel Notley stood in front of an oil upgrader in Edmonton and accused the governing Progressive Conservatives of squandering Alberta’s wealth “with a fire sale of our resources.” The PCs, she said, were more interested in creating jobs in Texas than at home.

Ms. Notley, leader of Alberta New Democrats and now premier-designate, promised that the NDP would introduce a new royalty regime that would “reward value-added processing” of Alberta’s oil within the province, producing thousands of new jobs and generating hundreds of millions of dollars in new taxes.

What seemed then like boilerplate NDP talk denouncing the “rip and ship” mentality of Alberta’s oil industry has taken on real currency with Ms. Notley’s stunning electoral victory. The vow to create a new Resource Owners’ Rights Commission to review Alberta’s royalty structure, with an emphasis on adding value, is sending shudders down the spines of oil executives but has Alberta’s top union exec “walking on air.”

No free rides for women in mining – by Len Gillis (Timmins Daily Press – May 7, 2015)

May 8, 2015

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – A woman with extensive mining engineering experience told an audience of Timmins business women on Thursday there are opportunities for more females in the mining industry. She said it is now up to women to seek out mining employment and go for it.

Sophie Bergeron, the underground manager at Hoyle Pond for Goldcorp Porcupine Gold Mines, has worked in mining in both Canada and South America. She was the keynote speaker at the Women in Business luncheon hosted by the Timmins Chamber of Commerce on Thursday.

Bergeron’s education as a mining engineer set her off on a journey to Xstrata’s Raglan mine in far Northern Quebec, where she took on a number of jobs because she said she asked for them.

Women are still in a minority in mining and while Bergeron said the numbers are gradually improving, she urged women to seek out the jobs they want and to aggressively ask for those roles. Bergeron said many of the jobs she has worked at came about because she specifically asked to do those jobs.

She explained that in all experience, she was never offered a job in mine production department.

Freeport-McMoRan Copper & Gold, Inc. History (1912 – 2004)

May 8, 2015

For a large selection of corporate histories click: International Directory of Company Histories

Freeport-McMoRan Copper & Gold, Inc. is engaged in exploring, mining, producing, processing, and marketing metals. It is one of the world’s largest and lowest-cost producers of copper, and it controls the single largest gold reserve in the world. Its principal asset is its Grasberg mine, in Papua (formerly Irian Jaya), the western half of the island of New Guinea, in Indonesia. This huge mine has proven copper and gold reserves expected to last for some 30 years. The mine is partially owned by Freeport’s principal subsidiary, FT Freeport Indonesia.

Roots in the Early 20th Century

Freeport McMoRan began in 1912 under the name of Freeport Sulphur Company. It pioneered the use of the Frasch invention in the United States as an engineering method to mine sulfur. Prior to the Frasch invention, Italy monopolized the sulfur market because of its cheap labor. Herman Frasch’s invention, which utilized machinery rather than manual labor, allowed U.S. companies to produce the element at competitive world prices. The process involved flushing large quantities of hot water into pipelines sunk inward toward the sulfur find.

As the ore melted, it was pumped to the surface in liquid form. The process initially had been engineered on a find near Lake Charles, Louisiana, in 1894.

South African Empowerment Rule Change May Hurt Top Companies – by Franz Wild and Christopher Spillane (Bloomberg News – May 6, 2015)

May 7, 2015

http://www.bloomberg.com/

Some of the biggest companies in South Africa could fall foul of regulations and lose business after the government changed how it will evaluate their compliance with rules to award shares to black people.

Black empowerment programs benefiting community and special interest trusts and employees will carry less weight when setting a company’s compliance rating than previously, the Department of Trade and Industry said in a notice on Tuesday. The rating is needed to secure business from government and some other companies.

“It’s a really big issue,” Verushca Pillay, a director at Cliffe Dekker Hofmeyr’s corporate and commercial practice in Johannesburg, said by phone on Wednesday. The black empowerment “compliance level is relevant to them winning business from other companies and from government,” she said.

South Africa’s empowerment regulations are designed to boost participation in the economy by black citizens and other groups who were disadvantaged during apartheid, which ended with all-race elections in 1994. The rules had given companies benefit for training black managers, promoting women and helping develop communities, as well as handing over ownership.

Participation of First Nations vital to success – by Tim Gitzel (Saskatoon StarPhoenix – May 7, 2015)

May 7, 2015

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

Tim Gitzel is president and CEO of Cameco Corporation.

Development of Canada’s wealth of resources has potential to deliver many generations of prosperity for Canadians.

We have what the world needs. Over the next decade, an estimated $675 billion in resource development projects are planned across Canada. This is a truly incredible opportunity.

We can attract billions in capital investment and become a trusted, reliable supplier of energy, minerals and other materials for the rapidly growing economies of China, India and other developing nations. These projects would deliver high-quality employment and business opportunities for many thousands of Canadians and strong, sustained revenue for governments.

However, without respectful, mutually beneficial partnerships between industry and Canada’s aboriginal people, none of this will happen.

Almost all of the major resource projects on the horizon have a footprint on aboriginal traditional territory. Aboriginal people must be effectively consulted and engaged in the development of natural resources and must share in the prosperity it brings. Otherwise, the incredible opportunity will be lost.

Bank Of America Backs Away From Funding Coal Mining – by Kate Sheppard (Huffington Post – May 6, 2015)

May 7, 2015

http://www.huffingtonpost.com/politics/

WASHINGTON — Bank of America is cutting off its financing for coal extraction projects, the company announced at its shareholder meeting Wednesday.

“With regard to coal, over the past several years, we have been gradually and consistently reducing our credit exposure to companies focused on coal mining,” said Andrew Plepler, Bank of America’s Corporate Social Responsibility executive, at the meeting. The new policy, he said, “reflects our decision to continue to reduce our credit exposure, over time, to the coal mining sector globally.”

“Today, our renewable energy portfolio is more than three times as large as our coal extraction portfolio,” Plepler continued. “The transition from high-carbon energy to low-carbon energy will continue. At Bank of America, we will continue to do our part to accelerate this transition for our customers, clients and communities.”

The bank said that going forward, it will continue to reduce the credit it extends to coal extraction companies. Bank of America spokeswoman Laura Hunter told The Huffington Post that the bank will continue supporting technologies like carbon capture and storage (CCS) to help reduce the impacts of burning coal, and would work with clients, including mining companies, “that are diversifying to other fuel sources.”

Special Report: Why gold threatens Ivory Coast’s peace – by Joe Bavier (Reuters U.S. – May 7, 2015)

May 7, 2015

http://www.reuters.com/

GAMINA, IVORY COAST – (Reuters) – Nestled among the cocoa plantations of western Ivory Coast is a gold mine that does not feature on any official maps. It is not run by an industrial mining company, nor does it pay taxes to the central government.

The unlicensed mine is a key part of a lucrative business empire headed by the deputy commander of the West African nation’s elite Republican Guard, United Nations investigators allege. He is one of the principal players in a network of senior officers – former rebel commanders who have integrated into the Ivorian army – that has seized control of mines that generate tens of millions of dollars a year, and that engages in illegal taxation, smuggling and racketeering, they say.

Interviews with more than two dozen military insiders, diplomats, U.N. officials, local authorities, analysts and miners also reveal that the network of former rebels continues to maintain loyalist fighters under their exclusive control. A confidential U.N. arms inventory, reviewed by Reuters, showed that one former rebel commander possesses enough weapons – from surface-to-air missiles to millions of rounds of ammunition – to outgun the Ivorian army.

A senior Ivorian army officer said that the network represents a parallel force within the military that threatens the stability of the country, which has emerged from a 2011 civil war as one of Africa’s fastest growing economies.

NEWS RELEASE: NAN CHALLENGES FEDERAL COMMITMENT TO MEETING INFRASTRUCTURE NEEDS OF FIRST NATIONS

May 7, 2015

http://www.nan.on.ca/

(May 6, 2015) – THUNDER BAY: Nishnawbe Aski Nation (NAN) Grand Chief Harvey Yesno is challenging the Government of Canada’s commitment to meeting the infrastructure needs of First Nations despite claims made by Indian and Northern Affairs Minister Bernard Valcourt in the House of Commons yesterday.

When pressured by the Opposition over his government’s failure to assist with the a state of emergency in Shoal Lake No. 40 First Nation, which is cut off from the mainland without ferry service and has spent the last 17 years on a boil water advisory, the Minister made vague references to Canada-wide funding commitments his government has repeated for years instead of making a firm commitment to fixing the water and infrastructure needs of Shoal Lake and many First Nations.

“The dire situation in Shoal Lake is very much like that across much of NAN territory, where many First Nations have been on drinking water advisories for more than 10 years and nearly all communities are in need of new or upgraded water and wastewater systems and other critical infrastructure like housing, police, firefighting, health care and education facilities,” said Grand Chief Harvey Yesno. “It is shameful that the Minister is touting nearly decade-old funding commitments instead of making the necessary investments to improve the quality of life in our impoverished communities. If the Minister was truly committed to the health and safety of First Nations we would see more action from this government.”

NEWS RELEASE: Key Components of Global Silver Demand Rose in 2014

May 7, 2015

https://www.silverinstitute.org/site/

(New York City – May 6, 2015) Key components of global silver demand rose in 2014, with global silver jewelry demand posting a new record last year and silverware offtake rising to its highest level since 2006. This was coupled with notable growth in key silver industrial end uses, including ethylene oxide, photovoltaics, and brazing and alloys, according to World Silver Survey 2015, released today by the Silver Institute. Gains in supply from mine production and producer hedging were partially offset by a continued decline in scrap supply.

Silver Fabrication Demand

Total silver physical demand stood at 1.07 billion ounces last year, the fourth highest level recorded since 1990, but a 4 percent decline from the 2013 total. A main factor in the decrease in physical demand was a fall in coin and bar demand from 2013, which had been a record year.

The largest component of physical silver demand, industrial applications, which accounted for 56 percent of total physical silver demand, was marginally lower by 0.5 percent. On a regional basis, a modest increase in industrial demand in developing countries, led by 4 percent growth in China and Taiwan, was offset by weaker demand in advanced countries in 2014. This marks the fifth consecutive year of Chinese industrial demand growth. Last year’s industrial demand total for Taiwan was 23 percent above their 2009 figure.

Short-term investment undermines sustainable growth – by Dominic Barton (Globe and Mail – May 7, 2015)

May 7, 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.

In a world that desperately needs long-term investment, we face a daunting shortfall. Global long-term investment collapsed during the Great Recession of 2008 and has not recovered since. Across advanced economies, real private business investment fell by 10 to 25 per cent from 2007 highs, and recovery has been slow.

Business investment is a key determinant of long-term growth, and essential for creating jobs. The world is facing a vast unmet infrastructure challenge: Investments of nearly $60-trillion (U.S.) are needed in roads, rail networks, airports, sea ports, water and telecommunications by 2030. Moreover, in industries with the biggest need for innovation, such as health care, research and development spending is declining.

In this context, long-term investment is needed now. Yet short-termism is actually on the rise.

Indeed, it has become the norm in our capital markets. Almost all public companies dedicate significant resources to meeting quarterly earnings guidance, and assess their performance relative to it. Since more than 50 per cent of a typical company’s value comes from activities that will take place three or more years in the future, businesses are clearly failing to make profitable investments as a result.