Republic of Mining

Sudbury Accent: The prodigal ling returns to Ramsey – by Bruce Heidman (Sudbury Star – March 21, 2015)

March 23, 2015

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

They aren’t even close to pretty and their song is not nearly as sweet, but the return of ling to Sudbury’s Ramsey Lake after a 100-year absence is serving as a veritable canary in a coal mine.

Local fish biologists were stunned when it came to their attention that ling, an environmentally sensitive cold-water fish also commonly known as burbot, have returned to Ramsey, where the last recorded catch came in 1912. The discovery is significant because it shows the lake has bounced back even better than scientists thought from decades of environmental degradation, mostly due to sewage, mining and acid rain.

Local biologist John Gunn, one of a handful of scientists who have done extensive research on Ramsey Lake, Sudbury’s crown jewel, for the better part of 30 years, didn’t believe the news when he first heard it.

“We were shocked,” he said. “We didn’t think for all the work and time we have spent around that lake that something like that would slip by us. They are not a species people move around and they are a very clean water fish that has been lost in Killarney and Temagami, and the ling disappeared before the lake trout, so when we saw a pollution-sensitive species disappear and then start swimming around in front of the (Living With Lakes Centre) building, we were surprised.

Poles Steel for Battle, Fearing Russia Will March on Them Next – by Rick Lyman (New York Times – March 14, 2015)

March 23, 2015

http://www.nytimes.com/

KALISZ, Poland — For evidence of how much President Vladimir V. Putin of Russia has jangled nerves and provoked anxiety across Eastern Europe, look no farther than the drill held the other day by the Shooters Association.

The paramilitary group, like more than 100 others in Poland, has experienced a sharp spike in membership since Mr. Putin’s forces began meddling in neighboring Ukraine last year.

Thirty students took an oath to defend Poland at all costs, joining nearly 200 other regional members of the association — young men and women, boys and girls — marching in formation around the perimeter of the dusty high school courtyard here. They crossed Polish Army Boulevard and marched into the center of town, sprawling in four long lines along the edge of St. Joseph’s Square.

Gen. Boguslaw Pacek, an adviser to the Polish defense minister and the government’s chief liaison with these paramilitary groups, marched with them. He has been making the rounds in recent months of such gatherings: student chapters like this one, as well as groups of veterans, even battle re-enactors.

One of those who took the oath in Kalisz was Bartosz Walesiak, 16, who said he had been interested in the military since playing with toy soldiers as a little boy, but had been motivated to join the Shooters Association after Russia moved into Crimea.

Ontario’s Ring Of Fire, Formerly ‘The Next Oilsands,’ Sold For Peanuts – by Sunny Freeman (Huffington Post – March 23, 2015)

March 23, 2015

http://www.huffingtonpost.ca/business/

A junior miner will soon be the biggest player in Ontario’s fledgling Ring of Fire mining development, after agreeing to pay US$20 million for the properties of Cliffs Natural Resources, a U.S. mining giant who has abandoned hope of developing the area.

Toronto-based Noront Resources is getting quite the deal for about 103 mining claims — including Cliffs’ flagship $3.3 billion Black Thor chromite deposit — in the region estimated to be worth $50 billion during the height of the commodity boom. Cliffs paid $240 million for the assets in 2009.

The market has since shifted and a lack of concrete movement in talks between First Nations, government and developers has turned many miners off of the 5,000 square kilometre area said to be rich with chromite, copper, zinc, platinum and other valuable metals.

The Ring of Fire was once touted as Canada’s next oilsands, but interest in the area has fallen off and the prospects for development in the remote region, located on First Nations land, have dimmed.

Cliffs decided to suspend its projects in the area in late 2013, citing numerous delays and difficulties that prevented the project from moving ahead.

NEWS RELEASE: Noront Resources to Acquire Cliffs Chromite Properties in the Ring of Fire

March 24, 2015March 23, 2015

TORONTO, ON–(Marketwired – March 23, 2015) – Noront Resources Ltd. (“Noront”) (TSX VENTURE: NOT) has entered into an agreement to acquire, among other things, the shares of Cliffs Chromite Ontario Inc. (“CCOI”) and Cliffs Chromite Far North Inc. (“CCFNI”), both indirect wholly owned subsidiaries of Cliffs Natural Resources Inc. (NYSE: CLF) (“Cliffs”), which hold mining claims in the Ring of Fire mining district, for an acquisition price of US$20 million (the “Transaction”).

The Transaction includes the acquisition of approximately 103 claims currently owned by CCOI and CCFNI, including: a 100% interest in the Black Thor chromite deposit; a 100% interest in the Black Label chromite deposit; and, a 70% interest in the Big Daddy chromite deposit. It also gives Noront 85% ownership of the McFauld’s Lake copper zinc resource.

Upon closing, Noront will hold a total of approximately 360 mining claims and roughly 65% (80,000 hectares) of the emerging mining camp known as the Ring of Fire, located 500 kilometres northeast of Thunder Bay. These additional assets, alongside Noront’s existing Eagle’s Nest nickel-copper-platinum group element deposit and its Blackbird chromite deposit will allow Noront to further its vision of becoming the leading resource company in the area.

“This purchase consolidates the world-class discoveries made in the Ring of Fire,” said Noront President and CEO Alan Coutts. “It also underscores Noront’s long-standing belief and commitment to the region.

Rickford gives chamber an F for Ring of Fire grade – by Carol Mulligan (Sudbury Star – March 21, 2015)

March 23, 2015

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

If FedNor Minister Greg Rickford were rating the Ontario Chamber of Commerce’s performance, he would give it a failing grade.

The Conservative MP for Kenora said he rejects a chamber of commerce report in which the Conservative government of Prime Minister Stephen Harper was given an F for not making development of the Ring of Fire a national priority.

“I don’t accept it,” Rickford told reporters Friday at a news conference to announce funding for the Advanced Medical Research Institute of Canada.

“The federal government has been working with communities. They (the OCC) didn’t talk about the new runways we put in there, surfaces for communities to land and do exploration activities, investment in small business centres, the support for the environmental assessment process that was hiring first nations people and making important contributions from the first nations communities to that.”

Rickford also cited the high completion rate of students in a training program the federal government funded with Confederation College in Thunder Bay and Matawa first nations as another indication of his government’s support for the area.

Minister rejects Ring of Fire report – by Jonathan Migneault (Northern Ontario Business – March 20, 2015)

March 23, 2015

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Canada’s Minister of Natural Resources said he rejects an Ontario Chamber of Commerce report that gave the federal government a failing grade in its involvement in the Ring of Fire development.

“I don’t accept it,” said Minister Greg Rickford during a visit to Sudbury. “The federal government has been working with communities.”

In its report card on progress, or lack thereof, near the remote Ring of Fire mineral deposits, the Ontario Chamber of Commerce said, “The federal government has yet to demonstrate that the Ring of Fire is an economic development priority.”

The report went on to say the federal government should commit to matching the $1 billion the provincial government set aside to build infrastructure to access the Ring of Fire chromite deposits in the remote James Bay lowlands.

“They didn’t talk about the new runways we put in to land and do exploration activities,” Rickford said. “Nor did I see mention of the great relationship we have with the province on a couple of key initiatives, one of which we announced at PDAC (the Prospectors and Developers Association of Canada Conference), and that was to focus squarely on specific infrastructure projects that could open up regional development.”

Time for Ring of Fire is now – by Allan O’Dette (Timmins Daily Press – March 20, 2015)

March 23, 2015

The Daily Press is the city of Timmins broadsheet newspaper.

Allan O’Dette is the President & CEO of the Ontario Chamber of Commerce.

Earlier this week, federal Treasury Board President Tony Clement left many in the business community scratching their heads when he said that the Ring of Fire will not be developed “before economic conditions improve.”

Until then, he said, it is not realistic to expect his government to step in and “boost” the Ring of Fire. Minister Clement’s comments are perplexing. To which economic conditions is he referring?

The downturn in the global commodity cycle has had little impact on the economics of the Ring of Fire, which hinges on the forecast price of nickel and demand for stainless steel. The outlook for these indicators is positive: nickel prices are projected to increase by up to 40% over the next four years and demand for stainless steel remains strong, driven upward by robust consumer demand in developing countries for stainless steel appliances.

It would appear that Minister Clement’s comments are informed by a false narrative that has caught on in the discourse about the Ring of Fire: that the downturn in iron ore prices is impacting the economics of the Ring of Fire.

Empire Editorial: On the topic of transboundary mines, a response to Mr. Bill Bennett Posted (Juneau Empire – March 22, 2015)

March 22, 2015

http://juneauempire.com/

The Tulsequah Chief Mine, located south of Juneau on the Taku River just across the Canadian border, has leached acid runoff into the Taku River since its closure in the 1950s.

Alaskans — Native tribes, commercial fishermen, local governments and ordinary residents — feel it is not at all respectful to leave a mine in ruin, leaching acid runoff. Nor do we feel this is in any way an example of “environmental protection.”

As B.C. forges ahead with 30 new mines to add to the existing 123 along the transboundary region, we’d like to see a firmer grip on reality and less public relations spin from our Canadian neighbors. We need actual compromise and solutions. (Juneau Empire Editorial-March 22, 2015)

It’s not often the Juneau Empire offers a rebuttal to an submitted column. Waging a back-and-forth war of words isn’t fair for the other party. We buy ink by the barrel and have dedicated staff to get the word out online as well.

However, we must respond to the Feb. 24 My Turn penned by Bill Bennett, the Minister of Mines for British Columbia.

Let us start off by addressing the first portion of Mr. Bennet’s piece when he states it was “unfortunate your editorial has seized upon the Mount Polley mine tailings storage facility failure to undermine the long tradition of respectful relations and co-operation between British Columbia and Alaska on mining development and environmental protection.”

Mount Polley spill leads to new rules for tailing ponds (Canadian Press/CBC News B.C. – March 2015)

March 20, 2015

http://www.cbc.ca/news/canada/british-columbia

Companies have to enhance safety and cut the risk of dam failures

The disastrous collapse of the Mount Polley mine tailings pond in B.C.’s Interior last year has spurred changes to provincial environmental requirements for new mines with similar dams.

Developed in collaboration between the ministries of environment and mines, the new rules say mining firms must consider the possibility of a tailings disaster and evaluate the environmental, health, social and economic impacts of an accident.

Environment Minister Mary Polak said Thursday that companies currently under environmental assessment have been anticipating the changes.

“I think there’s an understanding within the industry that after Mount Polley, the world has changed,” Polak said. “We have to be able to assure the public that what’s happening in the province for resource development is safe.”

On Aug. 4, 2014, the massive dam storing tailings from the gold and copper mine gave way, spilling 24 million cubic metres of mine waste and water into nearby lakes and rivers.

Global diamond jewellery demand hits record $81bn – by Martin Creamer (MiningWeekly.com – March 20, 2015)

March 20, 2015

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

JOHANNESBURG (miningweekly.com) – Global demand for diamond jewellery grew 3% to a record $81-billion in 2014, De Beers said on Friday, while pointing out a slower last-quarter pace of growth across the luxury goods category in both the US and China, the biggest and second–biggest diamond-jewellery markets respectively.

De Beers diamond industry insight data, which was released at midnight, shows that the top five diamond markets – which make up 75% of total sales – all grew in currency terms and that the momentum should continue through 2015 (Also see Creamer Media TV video attached).

“It was another strong year for diamond jewellery demand across the world, as we saw continued growth across both mature and quickly developing markets,” De Beers CEO Philippe Mellier commented in a media release to Creamer Media’s Mining Weekly Online.

The US, as the world’s largest market, last year represented 46% of total diamond jewellery sales, after leaping 7% higher to $37-billion, with China at a 5%-higher $10-billion in second spot.

Including Hong Kong and Macau, the Chinese market now represents 14% of the total value of the global diamond jewellery market.

Potash Corp profit to take $100-million hit this year after Saskatchewan tax-rule changes – by Peter Koven (National Post – March 20, 2015)

March 20, 2015

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

Saskatchewan is preparing to review its byzantine potash royalty regime, and Premier Brad Wall thinks it is long overdue.

“Without the incentives that are overlaid on top of the royalty structure for brownfield and greenfield investment, we have the highest potash taxes on earth,” he said in an interview. “Higher than Russia.”

But in this week’s budget, Mr. Wall introduced one interim tax change that has already drawn a furious response from the world’s biggest fertilizer company.

Saskatchewan is stretching out the timing in which miners make deductions for expansions and maintenance spending. That has a significant impact on Potash Corp. of Saskatchewan Inc., which is wrapping up a $6-billion expansion program in the province. Potash Corp. expects budget proposals will cut its pre-tax earnings by $75-million to $100-million this year.

“Changing the rules midstream impacts the ability of our shareholders to earn a fair return on their capital and undermines Saskatchewan’s relative competitiveness,” chief executive Jochen Tilk said in an uncharacteristically harsh statement.

It takes chutzpah for Potash to protest new tax regime – by Sean Silcoff (Globe and Mail – March 20, 2015)

March 20, 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.

Saskatchewan is blessed with the world’s largest bounty of potash – and cursed with the worst tax system for capitalizing on its bounty of the naturally-occurring fertilizer. It is a regime so complex that nobody – miners, investors or governments – has a clue how to forecast the tax outlay from year to year. Even University of Calgary tax expert Jack Mintz, who has written extensively about it, calls the regime “the most complicated thing I’ve seen in my whole career.”

Finally, after much prodding, the government of Brad Wall is promising to do something. In the provincial budget tabled this week, the Premier promised “a broad review of the entire potash tax regime.” Change can’t come soon enough. Potash Corp. of Saskatchewan, the industry’s largest miner, isn’t happy, but it has a lot of nerve to complain.

Saskatchewan’s potash tax system, according to a recent paper co-written by Dr Mintz, is convoluted, inefficient and uncompetitive. There are three levels of levies, creating a “tax jungle” that leaves producers subject to marginal effective tax and royalty rates last year ranging from 0.3 per cent to 22.6 per cent. It’s a wild and ridiculous range, especially considering the rate in other potash-producing countries amounts to one number, usually in the mid-teens or low 20s.

Yukon Zinc granted creditor protection after mine closure (CBC News North – March 19, 2015)

March 20, 2015

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

Yukon Conservation Society concerned about $3 million environmental security owed by Wolverine Mine

Yukon Zinc has been granted creditor protection by the Supreme Court of British Columbia, nearly three months after closing the Wolverine Mine, located north of Watson Lake.

The company owes more than $646 million to hundreds of creditors, but documents listed with PricewaterhouseCoopers Inc. show that most of the debt is owed to its parent company, JinDui Cheng Canada Resource Corporation Limited, which has a head office in Vancouver.

About $50 million is owed to businesses in and outside Yukon including Alkan Air, Air North, P.S. Sidhu Trucking, Northern Industrial Sales and Small’s Expediting Services. The Companies’ Creditors Arrangement Act, which Yukon Zinc is protected under, is a federal law that basically gives a company time to try to work out its financial difficulties with its creditors.

In this situation, Yukon Zinc says its creditors are required to continuing providing goods and services to the mine in accordance with existing agreements. Invoices after March 13 will be paid in full by the company, but invoices before that date “cannot be paid.”

Bay Street loses millions on Silver Wheaton bought deal – by Tim Kiladze (Globe and Mail – March 19, 2015)

March 20, 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.

The unsold shares from Silver Wheaton Corp.’s billion-dollar financing are finally sitting in the hands of investors, but getting them there required the underwriters to endure substantial losses.

Earlier this month, the company, which specializes in buying royalty streams from miners, launched an $800-million (U.S.) share offering, worth roughly $1-billion (Canadian), to help finance the acquisition of a gold stream from Vale SA. The money was raised by way of a bought deal, in which a company issues equity to a syndicate of underwriters who then re-sell the shares.

Investors have been more than willing to help fund asset purchases over the past few months by buying shares in bought deals, such as Fairfax Financial Holdings Ltd.’s $650-million offering that was tied to its $1.88-billion (U.S.) acquisition of Brit PLC. For this reason, Silver Wheaton’s underwriters hoped — perhaps justifiably — their deal would sell quickly, but it ran into trouble from the get-go.

As soon as word got out that the deal was struggling, investors backed away, and multiple sources said the deal was likely only one-third sold. To get rid of the remaining shares, the investment banks re-priced the remaining stock this week at a substantial discount to the original offer price.

COMMENT: Quebec okays controversial Arnaud apatite [phosphate rock] mine – by Marilyn Scales (Canadian Mining Journal – March 19, 2015)

March 20, 2015

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

One of the hottest topics debated by residents of the town of Sept-Isles, QC, lately has been the fate of the proposed Arnaud open pit apatite mine. The project is owned by Invstissement Quebec and Yara International, a Norwegian fertilizer manufacturer.

Not surprisingly many residents of the North Shore town are wildly opposed to a large open pit on the edge of town. Even the Bureau d’audiences publicques sur l’environement (BAPE) said the project was “unacceptable” in its present form last year. The bureau cited the risk of water contamination and landslides.

Union members and the potential pool of workers for the project insist it must go ahead if the region is to have any economic hope. The Arnaud mine would create perhaps 330 jobs over its 30 year life, and it would be a welcome step toward diversifying the local economy.

Then on Monday, March 16, 2015, Quebec environment minister David Heurtel gave the project the province’s blessing. He said the operator has agreed to 11 conditions spelled out by BAPE to lessen the impact of the mine. And the new development is in line with the province’s Plan Nord.