Republic of Mining

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.

Don’t count out India for Asia’s top economy – by Gwynne Dyer (Sudbury Star – May 7, 2015)

May 7, 2015

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

The picture of the two Asian giants that most people carry around in their heads shows China racing ahead economically while India bumbles along, falling ever further behind.

People even talk about the 21st century as “China’s century”, just as they called the 20th century the “American century”. But it may turn out to be only China’s quarter-century.

The headline economic news this year is that India’s economy is growing faster than China’s. Not much faster yet, according to the official figures — a 7.5% annual rate for India vs. 7.4% for China — but there is good reason to suspect that the real Chinese growth rate is considerably lower than that.

Anybody who goes to both countries will see that India has a huge amount of catching up to do. The contrast in infrastructure is especially striking: China has 100,000 kilometres of expressways (freeways, motorways); India has only 1,000 km.

The differences in income and productivity are also very big: Gross domestic product per capita in China is between three and five times higher than in India, depending on how you calculate it.

Cominco Ltd. History (1906 – 2001)

May 7, 2015

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

Incorporated in Canada in 1906, Cominco Ltd. has emerged as a leading integrated zinc and copper producer. With mines in Canada, the United States, Chile, and Peru, Cominco is the world’s largest producer of zinc concentrate as well as the fourth-largest zinc metal refiner. Additionally, Cominco produces lead, silver, gold, germanium, and indium. The company’s head office is situated in Vancouver, British Columbia, Canada, while it oversees subsidiaries worldwide. Teck Corporation is the largest single shareholder with 44 percent of Cominco’s Common Shares.

The Beginning: 1850-1900

Cominco’s history reaches back to the Gold Rush in the second half of the 19th century. Thousands of placer prospectors flocked to the unexplored wilderness that was later to become the Province of British Columbia. (Placer refers to a gravel deposit containing particles of gold). Although the Gold Rush ended after ten years, it hastened the proclamation of the Colony of British Columbia in 1858 and influenced the development of trails throughout the region.

The newly created trails made it possible for the remaining prospectors to move further afield. Before long, placer gold was discovered in various parts of the Kootenay region in southeastern British Columbia. Soon after, steamboat service along the upper Columbia River made it easier for miners, prospectors, and others to reach the area.

Despite these transportation enhancements, mining activity was limited until the coming of the railways 20 years later.

Kinross keen on M&A but will take a disciplined approach: CEO – by Euan Rocha (Reuters Canada – May 5, 2015)

May 6, 2015

http://ca.reuters.com/

TORONTO (Reuters) – Kinross Gold K.TO is scouting for acquisition opportunities but vows it will be disciplined and only strike a deal if it offers value to shareholders, the Canadian gold miner’s chief executive said on Tuesday.

“On the external front, we are looking like everyone else is,” Paul Rollinson said in an interview. “But at the end of the day we will be disciplined.”

The CEO spoke as the Toronto-based company reported results that edged past expectations.

Investors have punished Kinross for a risky deal in 2010 that eventually soured badly. In March, the company settled a lawsuit that had accused it of defrauding investors by making a bet on Red Back Mining and its Tasiast mine in Mauritania that has led to over $6 billion in writedowns.

Its share price has fallen nearly 90 percent since the time the Red Back deal closed in September 2010. Despite this, Kinross, whose assets include operations in Russia, Brazil and the United States, among other countries, is once again scouting for assets with an eye to future growth.

Mine rescue teams from district converge on Timmins – by Len Gillis (Timmins Daily Press – May 6, 2015)

May 6, 2015

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – It’s Ontario Mine Rescue competition week in Timmins. Beginning today and carrying through to Friday, mine rescue teams from Timmins and Kirkland Lake will be taking part in a double district competition.

Two of the North’s best-known mining communities will be holding their annual district events at the McIntyre Arena with four teams competing for the Timmins district title and four teams vying for the Kirkland Lake district title.

Competing for the bragging rights in Timmins are Glencore Kidd Operations who are last year’s local winners, Goldcorp Porcupine Gold Mines, Lake Shore Gold and Dumas Mining. Competing for the Kirkland Lake title are Kirkland Lake Gold Inc., AuRico Gold, SAS St. Andrew Goldfields Ltd., and Primero Gold Black Fox Mine.

By Friday night, two teams will emerge as district winners and with that they also win the right to represent their district at the All-Ontario Mine Rescue competition which is to be held in Thunder Bay on June 11 and 12. Timmins Mine Rescue officer Manny Cabral said the annual competitions are important to the overall mine rescue program because the competition teams learn from the annual exercise and bring that knowledge back to their mine rescue colleagues at their particular mine.

Kidd Mine, Minister Gravelle announce legacy fund – by Alan S. Hale (Timmins Daily Press – May 5, 2015)

May 6, 2015

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Kidd Operations is looking to maintain its practice of supporting local non-profit organizations beyond the year 2021, when their mining operations in Timmins are set to come to an end.

On Monday, the mining company announced that it and the Ontario Trillium Foundation will spend $500,000 each over the next six years to create a $1-million “legacy” endowment fund. After the mine is closed, the fund will be managed by the foundation and will be distributed as grants by a volunteer board.

According to Kidd Operations’ general manager, Tom Semadeni, the deal to create the new fund with the government-run foundation was two years in the making.

“We realized that Kidd has had a very significant involvement in the community, and we’re aware that when we leave there will be a potential void. So we want to provide a lasting legacy, where we could still provide support to the community,” said Semadeni. “We worked together with the Trillium Foundation on what would be a reasonable sized endowment that could be managed going forward.

PRECIOUS-Gold down as strong shares, U.S. yields offset weaker dollar – by Clara Denina (Reuters U.S. – May 6,2015)

May 6, 2015

http://www.reuters.com/

LONDON, May 6 (Reuters) – Gold edged down on Wednesday, as the impact of stronger European shares and higher U.S. real yields counteracted the effects of a weaker dollar and prospects that the Federal Reserve will not raise interest rates at its meeting in June.

Spot gold was down 0.2 percent at $1,190.53 an ounce by 1011 GMT, while U.S. gold futures for June delivery lost $3.20 an ounce at $1,190.00.

Gold was depressed by rebounding European shares as strong euro zone services data and corporate results offset a sell-off in the region’s government bonds and a rise in the euro.

The metal, which pays no interest, was also under pressure from a two-month high in the benchmark 10-year U.S. Treasury yield.

“One might be puzzled why the gold price is not reacting to a weaker dollar but you have to look at U.S. real yields, which correlate the most to the gold price, and these have risen,” Macquarie analyst Matthew Turner said.

Mining far more expensive in Canada’s North: Report – by Lisa Wright (Toronto Star – May 5, 2015)

May 6, 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.

Groups recommend tax credits to help build infrastructure to reach remote sites.

The cost of building new mines is up to 2.5 times higher in northern Canada than in the rest of the country, creating major obstacles to extracting metals in remote regions and putting the industry’s long-term viability in jeopardy, warns a new report.

A significant cost premium is directly linked to the lack of infrastructure in the north, says the report released Tuesday by several industry groups, including the Mining Association of Canada and the Prospectors and Developers Association of Canada.

The study shows that unlike many of their southern counterparts, mining companies operating in these remote areas need to invest in costly but essential ports, power plants, winter roads, permanent roads and housing. And in most cases, there are also sparse populations or no people for hundreds of kilometres from the project or mine.

Despite Canada’s leadership in the global mining business, reserves for several base metals such as nickel, lead and zinc have been in significant decline since the 1980s, and production volumes have fallen relative to other mining countries, the report notes.

Kinross reports solid Q1 earnings, agrees to settle class action suit – by Peter Koven (National Post – May 6, 2015)

May 6, 2015

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

TORONTO – Kinross Gold Corp. reported solid earnings on Tuesday, beating analyst estimates in the first quarter even though most of its competitors failed to meet them.

The Toronto-based miner also announced it has agreed to pay $12.5 million to settle a Canadian class action lawsuit, eliminating a time-consuming headache. The legal action was tied to the company’s statements about the Tasiast expansion project in Mauritania, which did not live up to its original expectations.

In March, Kinross reached a US$33 million settlement of a similar class action suit out of the United States. Chief executive Paul Rollinson noted that there is no cost to Kinross, as the money is paid out through directors and officers insurance. The company made no admission of guilt in either case.

“When settling these things, it’s really a call on time and cost and energy efficiency,” he said in in an interview.

Alberta’s oil patch now in uncharted waters with NDP premier – by Jeffrey Jones (Globe and Mail – May 6, 2015)

May 6, 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.

Calgary — The Alberta oil patch is in uncharted political territory after the NDP’s unprecedented rise to power. The energy sector, the province’s dominant industry and one that’s been friendly with the Progressive Conservatives, will find itself dealing with a left-of-centre premier and ruling party that have been among its harshest critics on issues of royalties, taxes and environmental policy.

NDP Leader Rachel Notley, who ended nearly 44 years of Progressive Conservative rule in Alberta in an extraordinary majority win on Tuesday, has said her government would review the royalties rates paid by oil and gas companies, increase corporate taxes, strengthen environmental rules and halt the practice of spending taxpayer dollars to promote pipeline projects in Washington and elsewhere.

The stunning change comes at a time when oil prices are just starting to recover from lows that had sapped billions of dollars of government energy revenues as the sector fell into a downturn.

The NDP’s stated policies are “directionally negative” for the industry, as they point to higher costs, said Samir Kayande, analyst at ITG Investment Research in Calgary. For instance, a royalty review does not suggest that rates will be cut, he said.