Republic of Mining

Inquest: Policies must be acted upon: miner – by Carol Mulligan (Sudbury Star – May 4, 2015)

May 4, 2015

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

The last time Ryan St. George saw Jordan Fram was about a week before the young miner’s death. Both were stopped at an intersection, St. George on his motorcycle and Fram in his new truck.

Fram yelled over to St. George: “Hey, you’re driving a motorcycle with shorts and sandals,” chiding him for not riding safely.

“That was Jordan. He cared about people,” said St. George at the last day of the inquest into the deaths of Fram, 26, and his supervisor Jason Chenier, 35, at Vale’s Stobie Mine.

St. George is a member of United Steelworkers Local 6500, a former miner who represented his union at the coroner’s inquest.

He gave what was one of several powerful closing statements Friday to a three-woman, one-man jury. A fifth juror dropped out a week into the proceedings because of medical reasons. St. George said he believes, like Fram, “that people care about each other.

Gold: This chart should scare you – by Magnus Heystek (Mineweb.com – May 4, 2015)

May 4, 2015

http://www.mineweb.com/

How the death of an industry is felt by everyone.

I started my career in financial journalism in January 1980. The gold price had just hit a record $850 an ounce, the rand was trading at $1.35 – no mistake – and Johannesburg was literally the City of Gold.

At the time, South Africa was the world’s largest producer of gold (over 1,000 tonnes per annum), platinum and other precious metals. We were truly the centre of the mining universe and our politicians of the time couldn’t stop reminding the outside world how important we were to them….

The Johannesburg Stock Exchange (JSE) gold board had over 30 gold mining companies listed; and then there were the mining holding companies: the Anglos, Gencore, Rand Mines, JCI and many smaller ones.

The financial and investment community literally lived from gold-fix to gold-fix, still then relayed to the waiting world from London via telex messages, which came spattering out into the hands of the copy boys whose sole task was to tear a strip of paper with either good or bad news and run to whomever was paying his salary.

Alaska turns up the heat on proposed B.C. mines – by Gordon Hoekstra (Vancouver Sun – May 3, 2015)

May 4, 2015

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

Lt. Gov. Mallott to meet with cabinet ministers, business and First Nations leaders

B.C.’s push to develop mines in its shared watersheds with Alaska is under increasing scrutiny from the American side of the border.

Concerns over multiple proposed metal mines near the southeast Alaska border has drawn Alaska’s Lt. Gov. Byron Mallott — and a coterie of commercial fishing, conservation and First Nation groups — to British Columbia this week.

In a visit that coincides with mining week in B.C., Mallott will meet with B.C. Energy and Mines Minister Bill Bennett, Environment Minister Mary Polak, industry representatives and First Nation leaders.

The Alaskan fishing, conservation and aboriginal representatives are in B.C. to build alliances in their push for more scrutiny of the potential effects on Alaska waters that support a multi-billion-dollar fishery.

They believe that B.C.’s review process is not adequate and want Alaska to have a seat at a table, potentially through an international joint commission, to examine potential cumulative effects on water and salmon. The groups are also concerned about compensation if there is a disaster.

Giustra fights back after U.S. campaign smears – by Don Cayo (Vancouver Sun – May 1, 2015)

May 4, 2015

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

Vancouver mining magnate Frank Giustra finds himself caught up in the repeated mudslinging that surrounds Hillary Clinton’s campaign to become the next U.S. president. He doesn’t like it, and he’s fighting back.

His story has yielded big headlines in big-name media — The New York Times and The Washington Post, to name just two. And it has been playing out over the better part of a month as new angles are explored and old ones rehashed.

It’s a story made complex both by innuendo and by the muddying, glossing over or ignoring of timelines that might cast factual information in another light. And, of course, the Twitterverse and Internet are awash in vitriol from those who accept innuendo and suggestions as literal truth.

But the basic facts, neither damning nor exculpatory in themselves, are simple. They include:

• Billionaire Giustra and former U.S. President Bill Clinton, have become fast friends in the past decade. They travel the world together in Giustra’s jet to look in on philanthropic projects they jointly support. Giustra has given Clinton’s foundation many tens of millions of dollars, and he has raised many tens of millions more from rich acquaintances.

U.S. to evaluate uranium mine cleanups on Navajo land -Justice Dept – by Sandra Maler (Reuters U.S. – May 1, 2015)

May 4, 2015

http://www.reuters.com/

WASHINGTON – (Reuters) – The U.S. government will put $13.2 million into an environmental trust to pay for evaluations of 16 abandoned uranium mines on land belonging to the Navajo Nation in Utah, Arizona and New Mexico, the Justice Department said on Friday.

The Justice Department said the agreement was part of its increased focus on environmental and health concerns in Indian country, “as well as the commitment of the Obama Administration to fairly resolve the historic grievances of American Indian tribes and build a healthier future for their people.”

The investigation of the sites is a necessary step before final cleanup decisions can be made, it said in a statement, adding the work would be subject to the approval of both the Navajo Nation and the Environmental Protection Agency.

“The site evaluations focus on the mines that pose the most significant hazards and will form a foundation for their final cleanup,” Assistant Attorney General John Cruden of the Justice Department’s Environment and Natural Resources Division said in the statement.

The Navajo Nation encompasses more than 27,000 square miles (70,000 square km) within Utah, New Mexico and Arizona.

Uranium Mines Dot Navajo Land, Neglected and Still Perilous – by Leslie MacMillan (New York Times – March 31, 2012)

May 4, 2015

http://www.nytimes.com/

CAMERON, Ariz. — In the summer of 2010, a Navajo cattle rancher named Larry Gordy stumbled upon an abandoned uranium mine in the middle of his grazing land and figured he had better call in the feds. Engineers from the Environmental Protection Agency arrived a few months later, Geiger counters in hand, and found radioactivity levels that buried the needles on their equipment.

The abandoned mine here, about 60 miles east of the Grand Canyon, joins the list of hundreds of such sites identified across the 27,000 square miles of Navajo territory in Arizona, Utah and New Mexico that are the legacy of shoddy mining practices and federal neglect. From the 1940s through the 1980s, the mines supplied critical materials to the nation’s nuclear weapons program.

For years, unsuspecting Navajos inhaled radioactive dust and drank contaminated well water. Many of them became sick with cancer and other diseases.

The radioactivity at the former mine is said to measure one million counts per minute, translating to a human dose that scientists say can lead directly to malignant tumors and other serious health damage, according to Lee Greer, a biologist at La Sierra University in Riverside, Calif.

Rio Tinto CEO says iron ore demand still strong in Asia – by Vicky Validakis (Australian Mining – May 4, 2015)

May 4, 2015

http://www.miningaustralia.com.au/home

Rio Tinto CEO Sam Walsh says commodity markets must remain open as debate continues to rage over his company’s iron ore strategy.

Speaking in Seoul, Walsh said when the commodity cycle became tough, there was a temptation to turn inward. “But we must keep our minds and our markets open,” Walsh said.

“There is a temptation to be parochial, to believe that artificial and temporary barriers will alleviate the pain of awkward transition — when to the contrary, being parochial may delay necessary change or amplify the response required.

“We can see such requests and pleas for new barriers, from some in government and some in business.”

While Walsh did not tie his comments directly to iron ore or the company’s Pilbara mines, they came at the same time FMG’s chairman Andrew Forrest had another go at Rio for its plans to ramp up production.

With iron ore prices down to around $US57 a tonne, major miners BHP and Vale announced revised plans to limit some production.

Green Fire (American Mining Themed Movie – 1954)

May 4, 2015

http://en.wikipedia.org/wiki/Main_Page

Green Fire is a 1954 Eastmancolor MGM movie directed by Andrew Marton and produced by Armand Deutsch, with original music by Miklós Rózsa. It stars Grace Kelly, Stewart Granger, Paul Douglas and John Ericson.

Plot[edit]
Rugged mining engineer Rian Mitchell (Stewart Granger) discovers a lost emerald mine in the highlands of Colombia, which had last been operated by the Spanish conquistadors. Rian is a man consumed by the quest for wealth. However, he has to contend with local bandits and a savage jaguar.

Taken to recuperate at the plantation home of local coffee grower Catherine Knowland (Grace Kelly) and her brother Donald (John Ericson), Rian manages to charm Catherine.

Asarco Incorporated History (1899 – 1991) – International Directory of Company Histories

May 4, 2015

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

ASARCO Incorporated is a world leader in the production of nonferrous metals, including copper, lead, zinc, silver, and gold. Among the mines operated by ASARCO or its associated companies are the Mission and Ray open-pit copper mines in Arizona; the Silver Bell Mine in Arizona; the Continental Mine in Montana; four zinc mines near Knoxville, Tennessee; the West Fork and Sweetwater lead mines in Missouri; the zinc, lead, silver, and gold mine at Leadville in Colorado; the Troy silver-copper mine in Montana; and two silver mines in Idaho, at Galena and Coeur. Processing facilities operated by ASARCO include copper smelters in Hayden, Arizona, and El Paso, Texas; a copper refinery in Amarillo, Texas; a lead smelter in East Helena, Montana; and a lead refinery in Omaha, Nebraska.

In 1990 ASARCO and its associated companies in Australia, Mexico, and Peru accounted for 12% of free-world mine production of copper, 14% of silver, 14% of lead, and 9% of zinc. Through its subsidiaries, ASARCO is heavily involved in the manufacture of specialty chemicals for electroplating, metal finishing, and electronics applications.

In addition to processing the products of its own mines, ASARCO acquires ore from other companies, either to process for a fee or to process and then sell on the open market. Consumers encounter these refined metals in many forms, including zinc in the form of flashlight batteries, copper in the form of car radiators, lead in the form of automotive batteries, and silver in the form of coatings on photographic film. ASARCO has entered into hazardous-waste recycling as well.

Sudbury Steelworkers ratify new contract with Vale (Sudbury Star – May 1, 2015)

May 1, 2015

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

United Steelworkers locals 6500 and 6200, representing production and maintenance employees in Sudbury and Port Colborne, have voted to accept a new five-year contract, Vale announced Friday.

The new agreement takes effect on June 1. When the polls closed earlier today, 76.7% of members in Sudbury and 87% of members in Port Colborne had voted in favour of the new five-year deal.

“We are extremely pleased with the outcome,” Mitch Medina, Vale’s lead negotiator, said in a release. “A new five-year agreement, delivered a month before the old contract expires, points to a maturing in our labour relations. By the time the new contract expires in 2020 we will have enjoyed an unprecedented full decade of labour peace.”

The new five-year deal contains improvements in contract language, wages, benefits and pensions. USW Locals 6500 and 6200 represent 2,800 production and maintenance employees in Sudbury and Port Colborne.

Vale ups stakes in iron ore war – by Stephen Bartholomeusz (The Australian – May 1, 2015)

May 1, 2015

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

Of far greater consequence to Rio Tinto, BHP Billiton and Australia than Andrew Forrest’s complaints about their volume and cost-driven iron ore strategies is what the “other” major seaborne producer does in response to the crash in iron ore prices.

They might be encouraged by the commentary that accompanied Vale’s first-quarter results overnight.

The Brazilian group is the larger of the three major seaborne iron ore producers and is in the midst of an ambitious and expensive ($US17 billion) program to increase its production by 40 per cent, to almost 460 million tonnes a year from last year’s 327 million tonnes.

As with all the other producers, Vale is slashing costs to try to dampen the impact of the dive in iron ore prices and was able to proclaim that, for the first time in its history, cash costs were less than $US20 a tonne. A significant component of the $US13 a tonne reduction in cash costs was a 20 per cent, or $US4.50 a tonne, fall in freight costs.

Vale has traditionally been competitive with Rio (RIO) and BHP (BHP) in production costs and its ore is generally of higher quality. Its disadvantage has been distance from China and the impact that freight costs have had on its landed costs.

Company announces amidst protests that Mount Polley mine could restart in months – by Dirk Meissner (Canadian Press/Brandon Sun – April 30, 2015)

May 1, 2015

http://www.brandonsun.com/

VICTORIA – The open-pit, gold-and-copper mine hit by a devastating tailings pond breach that caused an environmental disaster in central British Columbia could be operating safely and near full capacity within months, the company has announced.

Steve Robertson, vice-president of corporate affairs at Imperial Metals Corp., (TSE-Ill), said Wednesday that more than 50 per cent of Mount Polley’s 370 employees would be back at work if the Vancouver-based company is granted a permit to restart operations.

“If we get a permit approving the restart of the mine in June, it’s going to take a few weeks, but within a few weeks we would be able to be up and running,” he said. “What we’re proposing is a modified restart.”
Robertson said the startup phase would not be full speed.

He said 276 people were employed doing restoration in March, but those numbers are fluctuating.

Environmental and aboriginal groups say they will oppose any decision that allows Mount Polley, blamed for spilling 24-million cubic metres of silt and water into nearby lakes and rivers last August, to resume operations.

Rio Signals Ready to Step Up on Dealmaking as Market Bottoms – by David Stringer (Bloomberg News – May 1, 2015)

May 1, 2015

http://www.bloomberg.com/

With the mining sector seen nearing the bottom of the cycle, Rio Tinto Group signaled to analysts it’s ready to resume mergers and acquisitions.

The company is prepared to look for a deal if it can secure the right asset at the correct valuation and win investor backing, Morgan Stanley said after an analysts’ meeting this week with Chief Financial Officer Chris Lynch.

An acquisition would be Rio’s first since 2012, according to data compiled by Bloomberg. As asset valuations get pushed lower, larger producers may be changing their attitude toward deals, according to Argo Investments Ltd.

“If they can buy tier-one assets at valuations that are closer to the bottom of the cycle, then that’s not a stupid thing to do,” said Jason Beddow, chief executive officer of Argo Investments, which manages about A$5 billion ($4 billion) in Australia and holds Rio shares.

The value of completed mining deals fell in 2014 to $51.3 billion, the lowest annual total in 10 years, according to data compiled by Bloomberg.

Barrick Gold hires BlackRock fund manager to help with turnround – by James Wilson (Financial Times – May 1, 2015)

May 1, 2015

http://www.ft.com/intl/companies/mining

Barrick Gold, the world’s largest gold producer by output, is hiring one of the UK mining sector’s best known fund managers as part of executive chairman John Thornton’s push to improve the struggling company.

Catherine Raw is joining Barrick’s leadership team from BlackRock, the asset manager, where she was co-head of its largest mining fund and highly critical of the performance and strategy of most of the world’s largest gold miners. The sector needed “to start seeing some really painful decisions being made”, Ms Raw said in December.

Barrick has shaken up its top ranks since Mr Thornton, a former Goldman Sachs banker, took over as executive chairman last year from founder Peter Munk. The Canadian miner has come under fire from investors after three consecutive years of net losses driven largely by writedowns on misfiring projects and acquisitions.

Mr Thornton — who pledged to review Barrick’s management pay policy after it was rejected at an advisory vote at this week’s annual shareholder meeting — has repeatedly said the company needs to do a better job of allocating investment to projects.

Church of England Dumps Coal as Fossil-Fuel Divestment Gains – by Thomas Biesheuvel (Bloomberg News – May 1, 2015)

May 1, 2015

http://www.bloomberg.com/

It appears coal mining isn’t God’s work. The Church of England will dump its holdings in coal and oil-sand producers and has ruled out backing companies with exposure to the most polluting fossil fuels, joining the movement that wants investors to help fight climate change.

The church’s investment arm said on Thursday that it will sell its 12 million-pound ($18.3 million) coal and tar sands investments. The church also vowed not to invest in any business that gets more than 10 percent of its revenue from the fuels, ruling out companies including Peabody Energy Corp. and Suncor Energy Inc.

The move by the church, created by Henry VIII’s split from the Roman Catholic Church in the 16th century and still headed by the Queen, is a victory for environmental activists seeking to stigmatize oil and coal companies in the way South Africa and tobacco companies have previously been targeted.

“Climate change is already a reality,” said the Reverend Richard Burridge, deputy chair of the church’s ethical investment advisory group. “The church has a moral responsibility to speak and act on both environmental stewardship and justice for the world’s poor who are most vulnerable to climate change.”