Republic of Mining

Newmont to Consider Gold Deals Even as It Reduces Debt – by Liezel Hill (Bloomberg News – February 23, 2015)

February 24, 2015

http://www.bloomberg.com/

(Bloomberg) — Newmont Mining Corp., the largest U.S. gold producer, said it will consider acquisitions as well as the expansion of existing operations.

Like some of its biggest competitors, Newmont is focusing on its most efficient mines following a decline in the gold price. The company has sold about $1.4 billion of assets in the past two years and is building a mine in Suriname. Still, it won’t rule out buying low-cost and long-life mines in safe jurisdictions, Chief Executive Officer Gary Goldberg said.

“We’re always looking to improve our portfolio,” he said Monday in an interview in Hollywood, Florida, where he was attending the BMO Global Metals & Mining conference. “We’ve got a great organic pipeline but also it doesn’t hurt to just look around.”

While Goldberg declined to comment on specific assets Newmont would consider buying, he said the 50 percent of the Kalgoorlie Super Pit mine that Newmont doesn’t own would “fit in” with some of his acquisition criteria.

Barrick Gold Corp., the world’s largest gold miner, is the other Super Pit owner. That stake would be Barrick’s last remaining Australian asset if it offloads the Cowal mine, the sale of which was announced last week.

Commentary: Quebec gov’t to stabilize legislative framework for mining – by Emmanuel Sala and Jean-Philippe Latreille (Northern Miner – February 20, 2015)

February 24, 2015

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Quebec’s position as the most attractive jurisdiction for mining exploration took quite a tumble in last year’s Fraser Institute survey, falling to twenty-first place. The political uncertainty in the past few years which has surrounded the debates on reforming the mining legislative framework undoubtedly accounts for this decline.

However, recent developments lead us to believe there will be a return to the predictability and stability that once made Quebec a haven for mining businesses and investors.

First, on Dec. 10, 2013, the saga of the Mining Act reform, which started four years earlier, almost to the day, and led to the introduction of four different bills in the Quebec legislature, finally ended with the passage of Bill 70. This bill is in fact a simplified version of the sweeping overhaul of the Mining Act proposed by the previous minority government, which was received with some reservation and criticism by the opposition parties. Nevertheless, Bill 70 still contains provisions that impose new constraints and restrictions on mining corporations.

Furthermore, on June 4, 2014, the newly elected majority government tabled its Budget 2014–15, which introduced measures to support natural resource development in Quebec.

Nevada’s new mining mantra: Quality trumps quantity – by Marc Davis (BNW News)(Mineweb.com – February 24, 2015)

February 24, 2015

http://www.mineweb.com/

A far less glamorous species of ore has become the quarry of a few shrewd mining juniors – copper oxides.

Due to its wealth of prolific gold deposits, Nevada is fondly known as ‘elephant country’ to mining companies – big and small – that hope to hunt down their own epic discoveries. However, it’s a far less glamorous but nonetheless potentially very valuable species of ore that’s lately become the quarry of a few shrewd mining juniors – copper oxides. This strategy reflects the new reality in mining: Quality trumps quantity.

In other words, cash-strapped mining companies nowadays are quite happy to find modestly-sized, relatively high-grade deposits that can be commercialized at a fraction of the cost of huge ‘elephant-sized’ deposits. If these buried riches are near-surface – as is the case with some oxide deposits – the returns can be even more robust due to reduced pre-production expenditures.

Among Nevada’s new breed of ‘quality-oriented’ explorers is Discovery Harbour Resources (TSX.V: DHR). This mining junior recently drilled into what appears to be a near-surface copper oxide skarn deposit near the town of Lovelock in west central Nevada.

This is where an initial drill program has intersected as much as 74.2 feet (22.6 metres) averaging 1.2% copper at a fairly shallow depth at the 2BAR Project. Additionally, sweet spots as rich as 5.6 feet (1.7 metres) averaging 5.89% copper were also encountered within about 100 feet of the surface.

Fraser Institute, junior miners slam Ontario Mining Act – by Staff (Northern Ontario Business – February 24, 2015)

February 24, 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.

The uncertainty created by the Ontario government in its mishandling of First Nations consultation were cited by the Fraser Institute in its choice to drop the province down in its annual rankings of global mining-friendly jurisdictions.

Ontario placed 23rd, falling nine spots from last year’s survey. Much of the blame is being placed on the regulatory and policy confusion created within the resource industry stemming from the province’s amendments to the Mining Act and in dealing with First Nations issues.

“In Ontario, the new Mining Act amendments regarding First Nations consultation have resulted in complete incomprehensibility of rights on all sides,” said Kenneth Green, the institute’s senior director of energy and natural resources, in a Feb. 24 news release.

The Calgary-based think tank annually ranks 122 jurisdictions around the world based on geological attractiveness, government policy and investment.

The report included a survey and comments from mining companies on operating in Ontario. One respondent aid the act has resulted in “near-veto powers against exploration” by First Nations concerning their traditional lands, while other called it an “impractical regulation” that’s caused a “misinterpretation of rights on all sides.”

BHP’s iron ore outlook holds little cheer for small miners – by James Regan (Reuters India – February 24, 2015)

February 24, 2015

http://in.reuters.com/

SYDNEY, Feb 24 (Reuters) – Global miner BHP Billiton on Tuesday batted away suggestions of a turnaround in iron ore prices anytime soon – a bad omen for smaller producers struggling close to the break even point.

Chief Executive Andrew Mackenzie, releasing BHP’s half-year results, said iron ore demand in the all-important Chinese market was flat, although imports have increased by displacing higher-cost domestic supply.

But as supply costs have fallen, the price – around $62 a tonne – is now “more reflective of the medium-term fundamentals”, he said.

That’s a hefty enough price to keep BHP, the world’s third-biggest iron ore miner, and fellow mega-producers Vale and Rio Tinto in the black but is borderline for smaller rivals.

Atlas Iron, which plans output of about 14 million tonnes in fiscal 2015 against BHP’s 245 million tonnes, posted an underlying net loss of A$139 million ($108 million) for the half-year, against a A$61 million profit a year earlier.

Fipke, Ulansky take uranium hunt outside the Basin – by Tommy Humphreys (Ceo.ca – February 24, 2015)

February 24, 2015

http://ceo.ca/

Chad Ulansky cut his teeth on Ekati, Canada’s first diamond discovery, but it’s uranium that he’s hunting for now in Canada’s frozen North.

The Kelowna geologist is president and CEO of Northern Uranium (TSXV:UNO), which is exploring in northwestern Manitoba just beyond the eastern edge of the prolific Athabasca Basin.

Ulansky got his start as a geologist with Chuck Fipke’s Dia Met Minerals, which discovered Ekati, Canada’s first diamond mine, at Lac de Gras in 1991. The discovery by Fipke and Dia Met partner Stu Blusson, which came after years of systematic exploration, rocked the global diamond industry and sparked the biggest staking rush since the discovery of gold in the Klondike.

NEWS RELEASE: The Fraser Institute: Saskatchewan Ranks First in Canada and Second Worldwide in Annual Global Mining Survey; Ontario and B.C. Slipping

February 24, 2015

www.fraserinstitute.org

Click here for full report: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/survey-of-mining-companies-2014.pdf

CALGARY, ALBERTA–(Marketwired – Feb. 24, 2015) – Saskatchewan is the most attractive jurisdiction for mining investment in Canada, according to an annual global survey of mining executives released today by the Fraser Institute, an independent, non-partisan Canadian policy think-tank.

The Fraser Institute Annual Survey of Mining Companies, 2014, rates 122 jurisdictions around the world based on their geologic attractiveness and the extent to which government policies encourage exploration and investment. Saskatchewan ranks as the top jurisdiction in Canada and finishes second worldwide behind Finland.

“In addition to being blessed with an abundance of mineral potential, Saskatchewan gets credit for having a government with a transparent and productive approach to mining policy,” said Kenneth Green, Fraser Institute senior director of energy and natural resources and director of the Survey of Mining Companies.

“The province offers a competitive taxation regime, good scientific support, efficient permitting procedures and clarity around land claims. That’s what miners look for.”

NEWS RELEASE: The Fraser Institute: Quebec’s Mining Reputation Rebounds in International Mining Survey

February 24, 2015

www.fraserinstitute.org

Click here for full report: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/survey-of-mining-companies-2014.pdf

CALGARY, ALBERTA–(Marketwired – Feb. 24, 2015) – Quebec is re-establishing itself as one of Canada’s – and one of the world’s – most attractive jurisdictions for mining investment, according to an annual global survey of mining executives released today by the Fraser Institute, an independent, non-partisan Canadian policy think-tank.

The Fraser Institute Annual Survey of Mining Companies, 2014, rates 122 jurisdictions around the world based on their geologic attractiveness and the extent to which government policies encourage exploration and investment. In this year’s survey, Quebec jumps up six spots and now ranks as the number three jurisdiction for mining investment in Canada and sixth worldwide.

“Quebec was atop the national and international rankings from 2007 to 2010 but tumbled down the list in recent years as a result of increased red tape, royalty hikes and uncertainty around new regulations,” said Kenneth Green, Fraser Institute senior director of energy and natural resources.

“The confidence mining executives now have in Quebec is due in part to the province’s proactive approach to mining policy and its Plan Nord strategy to encourage investment and mineral exploration in northern Quebec.”

Deep sea mining hopes hit by New Zealand decision – by Jamie Smyth (Financial Times – February 22, 2015)

February 25, 2015February 23, 2015

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

Sydney – A decision to block a deep sea mining venture off the New Zealand coast has cast a shadow over an emerging global industry that proponents say could revolutionise how minerals are extracted.

The sea floor is rich in copper, nickel, manganese, cobalt, zinc and a host of other minerals used in technology products. Improvements in undersea extraction technology have now put these within reach of miners.

New Zealand has lead the way in developing sea floor mining. But progress has now stalled following this month’s rejection by environmental regulators of a proposed project by Chatham Rock Phosphate off the coast of Canterbury, the second mine application refused within a year.

The decisions were welcomed by green groups, who fret that mining would damage vulnerable undersea ecosystems, which are relatively underexplored. But their delight is not shared by companies eyeing deep sea prospects.

“To say we are bitterly disappointed is an understatement,” said Chris Castle, Chatham Rock Phosphate’s managing director. “This will make it even harder, if not impossible for companies to attract capital for new projects in New Zealand.”

For almost 20 years deep sea mining has been flagged as a commercial opportunity. David Cameron, UK prime minister, claims it could be worth £40bn to the UK over a 30-year period.

B.C. mines minister aims for right audience with next trip to Alaska – by Tamsyn Burgmann (Canadian Press/Vancouver Sun – February 22, 2015)

February 23, 2015

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

VANCOUVER – British Columbia’s mines minister is making plans to visit Alaska’s indigenous fishing community after admitting his first trip to the state following the Mount Polley disaster addressed “probably the wrong audience.”

Bill Bennett spoke at a major mining industry conference last fall, but met with none of the tribal groups in the southeast region presumed most threatened by upstream mining across the border in B.C.

In retrospect, Bennett said people living off the sea in the transboundary region have every right to be concerned about mines in his province, but that he wants to stem the rising anxiety by sharing more information.

“They do not have the kind of information and understanding of how we do things here in British Columbia that they need to have, and that’s probably our fault,” he told The Canadian Press. “I think that we can relieve some of these fears.”

Bennett has asked a binational economic think-tank to consider organizing a symposium to bring both sides together in one of the southeastern Alaska towns at the heart of its multibillion-dollar fishing industry.

Bennett said he hopes the Pacific NorthWest Economic Region will convene a forum in a few months to share best practices and raise awareness about B.C.’s “rigorous” permitting process.

Nearly 500 miners rescued from South African gold mine (Deutsche Welle – February 23, 2015)

February 23, 2015

http://www.dw.de/

All 486 miners trapped after a fire broke out in a South African gold mine over the weekend have been rescued. Some of the miners were trapped at a depth of nearly 3.5 kilometers.

The miners, who had been trapped by the fire, were rescued Sunday, according to officials from the Harmony Gold Mining Company.

“We are extremely grateful that all of our colleagues have been brought to surface, without injury,” said Harmony Gold spokeswoman Charmane Russell. “Fortunately in this instance, things went according to plan.”
The men were at work in the mine near Carletonville, southwest of Johannesburg, when a fire broke out at around 7:40 a.m. local time (0540 UTC). The miners were told to move to refuge bays within the mine.

“Our employees have been trained for this,” Russell said. Rescue teams were called in to contain the fire and then moved from level to level to locate the trapped miners.

South African President Jacob Zuma told his fellow citizens to keep the trapped miners in their thoughts during the rescue operation. “I urge all South Africans to keep the miners in their thoughts and prayers during this difficult period,” Zuma said.

COLUMN-Iron ore can’t go back to the future to annual pricing – by Clyde Russell (Reuters U.S. – February 23, 2015)

February 23, 2015

http://www.reuters.com/

LAUNCESTON, Australia, Feb 23 (Reuters) – Iron ore should go back to the future and reinstate annual contract pricing, according a former executive of top miner Rio Tinto. He’s wrong.

Mal Randall, who spent more than 25 years at Rio Tinto and also helped set up an Australian iron ore miner, said the move to iron ore spot pricing from 2010 onwards was a disaster, the Australian Financial Review reported on Monday.

Up to a few years ago, iron ore had been priced through annual talks between steelmakers and their largely Australian suppliers. This changed, largely at the behest of former BHP Billiton chief executive Marius Kloppers, who wanted to take advantage of a shortage of supply to generate higher returns for his iron ore mines.

“It was orchestrated and brought in by a guy that has no responsibility now, Kloppers who used to run BHP,” the newspaper quoted Randall as saying. “It’s great to make these changes and then he’s gone.”

Randall, who now chairs mineral sands company MZI Resources, is correct insofar as the spot market pricing is no longer working in the favour of the big miners.

Growing demand for cheap minerals, energy opening up high-yielding investment opportunities – by Henry Lazenby (MiningWeekly.com – February 23, 2015)

February 23, 2015

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

NTO (miningweekly.com) – In a world where the economic outlook is uncertain and opinions diverge at best, the overarching trend of divergent lifestyles around the world is providing fuel for a new generation of critical-thinking miners have undergone a paradigm shift in approaching the business in a much cleverer, even holistic, way.

It is currently hard to pinpoint whether economies are at inflationary or deflationary inflection points, stabilising or destabilising, and a host of investors have all but written off the mining and exploration and production industries for not providing financial returns in a low-price environment.

While North Americans experience some of the highest-quality lifestyles in the world, this was not the case in places such as China, Indonesia and elsewhere in the developing world, New York-based House Mountain Partners founder and co-author of The Disruptive Discoveries Journal, Chris Berry recently told resource investors in Vancouver. But, they were gaining, and they were gaining fast.

According to him, the burgeoning global middle class and the inevitable economic growth it brought could not be supported without reliable access to cheap commodities and cheap energy, which was opening up a brave new world for shareholders trying to find high-yield investment opportunities, when bond yields globally were at historic lows or, in many cases, negative.

Barrick rides the DeLorean – by Kip Keen (Mineweb.com – February 23, 2015)

February 23, 2015

http://www.mineweb.com/

Barrick’s quest for greater relevancy.

Under the heading “Taking Barrick ‘Back to the Future’” Barrick Gold touted a plan to transform itself into a leaner, meaner cash machine with management and operational changes along with debt reductions in its forth quarter overview. Most who were around in the 1980s will get the movie reference at play. Back to the Future was a trilogy of movies that features Marty McFly, played by Michael J. Fox, who rides a time machine built into a DeLorean DMC-12 car, famously featuring gull-wing doors, to make his and his family’s present better than the past.

The nut of the first and subsequent movies is that things have not turned out as they should have, or as McFly would have them turn out. The first movie is about McFly and Doc Brown, played by Christopher Lloyd, going back to the 1950s by accident, and then their subsequent attempts to get back to the future (i.e. the 1980s) harnessing the power of lightning to run the DeLorean which, depleted of fuel, needs lots of energy to time travel. In the process, McFly rights – or rewrites – history for his family.

He helps his Dad, in a moment of confrontation, upstage Biff and save Lorraine from the then teenage bully’s advances. Soon thereafter McFly returns to the future – or the present 1980s. And what he finds is nicer than what he previously knew. His dad is no longer a loser and his mum is happy. Biff is a deadbeat.

PRECIOUS-Gold turns down as Greek accord is drafted, 4th weekly drop – by Marcy Nicholson and Clara Denina (Reuters U.K. – February 20, 2015)

February 20, 2015

http://uk.reuters.com/

NEW YORK/LONDON, Feb 20 (Reuters) – Gold turned lower in choppy dealings on Friday, flirting with a seven-week low after the euro zone discussed extending the Greek bailout by just four months, while prices headed for their fourth straight weekly drop.

A draft text on extending Greece’s bailout from its international creditors proposes prolonging the program by four months rather than a previously suggested six, officials from Greece and other euro zone states said on Friday.

Spot gold turned down 0.7 percent at $1,198.55 an ounce by 2:49 p.m. EST (1949 GMT). The metal has lost 2.5 percent so far this week, dipping to its lowest in six weeks at $1,197.56 on Wednesday, when hopes for a successful resolution to Greece’s debt talks boosted investor appetite for risk.

U.S. gold futures for April delivery settled down $2.70 an ounce at $1,204.90 on the day. “Overall, gold is lower as the market grows increasingly optimistic about a positive resolution, hence less need for a safe haven investment,” said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.

The euro traded near session highs against the U.S. dollar after the Greek bailout was drafted.