Republic of Mining

Methodology change sees Indian economy grow faster than China’s – by Rajesh Kumar Singh and Manoj Kumar (Reuters India – February 9, 2015)

February 9, 2015

http://in.reuters.com/

NEW DELHI – (Reuters) – Taken at face value, India on Monday became the fastest growing major economy in the world after its statisticians changed the way they measure Asia’s third-largest economy and showed it clocked faster growth than China in the December quarter.

It marks a dramatic turnaround for an economy that a fortnight ago was assumed to be struggling to gain momentum under Prime Minister Narendra Modi’s reform-minded government. Prior to Modi’s election last May, the economy had endured its weakest phase of growth since the 1980s.

The statistical recovery is in large measure due to changes both in the way authorities calculate gross domestic product (GDP) and the base year. Under the new method, the economy expanded 7.5 percent year-on-year during the last quarter, higher than 7.3 percent growth recorded by China in the latest quarter.

New Delhi also revised up growth for the first half of fiscal 2014/15 to 7.4 percent from the 5.5 percent reported earlier and forecast the full-year GDP growth to accelerate to 7.4 percent from a revised 6.9 percent a year earlier.

The new estimate is sharply higher than the Reserve Bank of India’s (RBI) growth projection of around 5.5 percent for the year under the old method.

The reading has left economists confounded as it is at odds with other indicators such as industrial production, trade and tax collection figures, which suggest the economy is still suffering from slack.

Sudbury needs premier needs to act boldly [turn Laurentian in global Harvard of hardrock mining] – by Stan Sudol (Sudbury Star – February 9, 2015)

May 4, 2015February 9, 2015

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

Note: this is the second of two parts.

Sudbury: Paris of the Mining World

While I can’t remember who coined the phrase, “Sudbury, the Paris of the Mining World” – I wish I had been that clever – there is an amazing amount of truth to the statement. Obviously, in no uncertain terms, does any part of Sudbury remind anyone – even in a drugged or drunken state – of Paris.

However, my lake-filled, mid-sized hometown does have a wide variety of retail, tourist, educational and other amenities that most tiny isolated mining towns do not and it is located only 400 km north of Canada’s largest city, Toronto.

A few years ago, a colleague who moved from Red Lake to Sudbury almost considered herself in “mining heaven” with the abundance of amenities not found in that tiny gold mining centre.

In addition to the Ontario government’s new differentiation and international student outreach policies, there are many other reasons why all post-secondary mining programs should be relocated to Sudbury’s Laurentian University.

Accent: Laurentian as ‘Harvard of Hardrock Mining’ – by Stan Sudol (Sudbury Star – February 7, 2015)

May 4, 2015February 9, 2015

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

Note: This is the first of two parts.

Laurentian University economics professor David Robinson, who ran for the Green Party in Sudbury’s provincial byelection on Thursday, has done a terrific job in highlighting mining issues and his plans to ensure that Sudbury continues to become Ontario’s centre of mining excellence.

It’s a refreshing policy approach that often gets overlooked by other politicians, but in fairness to Glenn Thibeault and even Premier Kathleen Wynne, both have also mentioned — but not with the same passion as Robinson — and promoted Sudbury’s mining sector.

However, as with many issues related to Premier Wynne and the mining sector — including the Ring of Fire — there seems to be more “political talk” and very “little solid walk.” Actually, dodging and spinning would be a better description of her government’s mining policy in general.

If Premier Wynne is truly serious about promoting and establishing Sudbury as a centre of mining excellence, then she must merge and relocate all of Ontario’s university mining programs to Laurentian and significantly expand and establish a “Global Harvard of Hardrock Mining” with a mandate to educate the next generation of miners in Canada and from around the world.

With this consolidation, not only would the premier solidify Sudbury’s premier role in underground mining, supply and services, mining education and research in Canada, she would also dovetail with current policy proposals from her own Ministry of Training, Colleges and Universities that are trying to cut duplication in the university sector and increase the number of international students attending the province’s universities.

Gold mining stocks massacred – by Frik Els (Mining.com – February 6, 2015)

February 9, 2015

http://www.mining.com/

Gold on Friday dropped more than 2% after a stronger than expected jobs report in the US rekindled fears that interest rates in the world’s largest economy may rise sooner than thought.

In afternoon trade on the Comex division of the New York Mercantile Exchange gold for April delivery shed 2.2% or $27.70 to $1,235.00 an ounce after earlier in the day falling to a low of $1,228 an ounce.

Gold’s 2015 gains – the metal is still up 4% or just over $50 since the start of the year – have been ascribed to safe haven buying amid currency turmoil, a slowing global economy and a debt crisis in the Eurozone.

But with the first hike in more than six year likely at the Fed’s June meeting raising the opportunity costs of holding gold because the metal provides no yield, gold traders refocused their attention on fundamental factors.

Higher rates also boost the value of the dollar – already trading at multi-year highs – which usually move in the opposite direction of the gold price. Investors have been worrying over further asset writedowns, a declining production profile and problems at board level.

Cliffs terminates Ring of Fire assessment process – by Staff (Northern Ontario Business – February 6, 2015)

February 9, 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 federal environmental assessment of Cliffs Natural Resources’ chromite project in the Ring of Fire has been terminated.

The Cleveland-based iron ore miner notified the Canadian Environmental Assessment Agency (CEAA) on Jan. 5 that it wanted to halt the comprehensive study process that began in September 2011. The CEAA posted the notice of termination on its website, Feb. 5.

Cliffs is now looking to sell its chromite properties in the James Bay lowlands, including its flagship Black Thor deposit. It’s been part of a slow retreat by Cliffs, once regarded as the star mining player in the Ring of Fire, to eventually pull up stakes in Ontario following a management shakeup last summer.

New Cliffs chairman and chief executive officer Lourenco Goncalves told national media outlets last fall that the Ring of Fire didn’t fit into their long-range strategy. The company, instead, is focusing on its core iron-ore assets in Michigan and Minnesota, and catering to its domestic customers.

Since 2010, Cliffs spent $500 million on outlining the mineral potential at Black Thor, but ran into a series of obstacles in securing agreements with the provincial government and First Nations on extending transportation infrastructure into the remote region.

A Silver Lining Coated in Coal Dust in Eastern Ukraine – by Andrew E. Kramerjan (New York Times – January 31, 2015)

February 9, 2015

http://www.nytimes.com/

SNIZHNE, Ukraine — Outside Vladimir Moroz’s snug little brick home, winter and hardship grip war-stricken eastern Ukraine. Money is scarce, the store shelves are bare and an icy wind whips over the snowy steppe.

Inside, a retired miner smiles broadly. He peels off his gloves and flexes his cold-stiffened hands over a stove and his prized, glowing, once-illicit source of warmth: backyard coal dug from dangerous, unregulated mines.

In a region plagued by upheaval and misfortune, coal miners who take pride in their grit and self-reliance have found at least one silver lining in changes sweeping over their land. The rebel government has decided to allow private mining, a long-stigmatized, legally proscribed but nevertheless widespread practice in Ukraine’s east.

“I have my own potatoes, my own carrots, my own cabbage and my own mine,” Mr. Moroz said, referring to the dank pit under a shed out back. “This is how we live.”

Deep in the backcountry of Donbass, as the rebellious region of eastern Ukraine is known, rich seams of coal undulate just under the hills. In places, kicking back the topsoil with a boot reveals glistening layers of coal, as mysterious and alluring to these miners as onyx.

Gangs Live Underground for Months to Feed Illegal Gold Trade – by Kevin Crowley (Bloomberg News – January 19, 2015)

February 9, 2015

http://www.bloomberg.com/

(Bloomberg) — Hein Westraadt, a security manager at South Africa’s largest gold producer, was finishing up some paperwork when a colleague rushed to his desk with a tip-off.

Thirty-three illegal miners had smuggled themselves into one of Sibanye Gold Ltd.’s biggest mines, and had been stealing ore undetected for three months, while living more than a mile underground.

Westraadt’s discovery is a window into South Africa’s illegal precious-metals trade, worth as much as $1.3 billion a year, spanning poor immigrants, mine employees, metal dealers, makeshift refineries and criminal gangs. The concoction of corruption and poverty that encourages men to mine illegally is spreading the problem from abandoned mines to working ones, threatening the operations of a 120-year-old industry that has produced a third of all the world’s gold.

“It’s a huge problem across South Africa,” said Graham Briggs, chief executive officer of Harmony Gold Mining Co., which shut Kusasalethu, its biggest operation, for two weeks in October after it was invaded by more than 100 alleged illegal miners. “There’s certainly more aggression and it’s more competitive. Any number of illegal miners can be a threat to your organization, especially from a safety perspective.”

REVIEW: MURDOCH MYSTERIES MINES SILVER AND GROUP OF SEVEN – by Greg David (TV-EH.com – January 20, 2015)

February 7, 2015

http://www.cbc.ca/murdochmysteries/

http://www.tv-eh.com/

Not sure if my spring/2014 essay [ http://bit.ly/1upri55 ]on Northern Ontario mining history had any influence on CBC to incorporate the Cobalt Silver Rush into a recent episode of the highly acclaimed “Murdoch Mysteries”, but you have to give the giant broadcaster credit for helping educate all Canadians about a little known part of our history! (Stan Sudol – Owner/Editor RepublicOfMining.com)

TV, eh? covers news, reviews and interviews about Canadian television shows, with the odd foray into the odd industry that produces them.

For over 15 years, Greg David has been a television critic for TV Guide Canada, the country’s most trusted source for TV news. He is a member of the Television Critics Association. greg@tv-eh.com

Kazakhstan and the Emerging Market Gold Rush – by Paolo Sorbello (The Diplomat- February 4, 2015)

February 5, 2015

http://thediplomat.com/

Kazakhstan produces around 22 tons of gold each year, a figure comparable to neighboring Kyrgyzstan (18 tons), but only a quarter of Uzbekistan’s production (92 tons). Gold is not a major feature of Kazakhstan’s mining industry, which is dominated by chromium, copper, zinc, and uranium, but it is becoming a key asset for the country’s central bank.

All of the gold produced in Kazakhstan for the last two years has been bought out by the central bank, both under the supervision of former chairman Grigori Marchenko and through the orders of his successor, Kairat Kelimbetov. Albert Rau, Kazakhstan’s minister for investments, said that “given the turbulent global economy condition, the National [Central] Bank has been buying out all the fine gold produced.” The reason for this gold rush can be explained by a spiral of financial decisions by central banks across the world.

Gold prices suffered a hit as the U.S. Federal Reserve (Fed) was rumored to increase rates this year for the first time in nearly a decade. Apart from short-term fluctuations, however, the precious metal is still priced at just below $1,300 per ounce. The eurozone instability and the Swiss franc’s decoupling from a single-currency peg have turned gold into a more palatable commodity for investors.

Contextually, China, Russia, Belarus, Malaysia, Iran, Azerbaijan, and Kazakhstan have hoarded gold to diversify their portfolios and avoid excessive competition for the dollar that would only strengthen the greenback against their own currencies. Only countries that are financially stable – or that are trying to recover from shocks, like Russia and other oil-exporters – are in the market for gold. Financially weaker countries, such as Mozambique, Ukraine, and Tajikistan, had to reduce gold reserves to fuel their national economies.

South Korea’s POSCO faces another setback in India – by Krishna N. Das and Jatindra Dash (Reuters India – February 5, 2015)

February 5, 2015

http://in.reuters.com/

(Reuters) – South Korea’s POSCO (005490.KS) will have to bid for an iron ore licence to feed its planned $12 billion steel plant in India, a minister said, in a setback for the company that was expecting the government to allocate it a mine without any competition.

The project to be set up by the world’s sixth-largest steelmaker has been caught up in a regulatory maze for the past decade, but the company had waited in the hope of getting preferential access to iron ore in Odisha.

But steel and mines minister Narendra Singh Tomar on Thursday ruled out an exception to an executive order mandating auctions for all new mines. This will mean POSCO’s costs will likely rise if it does manage to win a mine.

“Even I’ll have to bid for a mine if I want one,” Tomar said, as the government looks to overhaul the past practice of handing over mines and reduce chances of corruption. The government’s decision, however, goes against the recommendation of Odisha to grant POSCO a mine without an auction.

“It was an international commitment and we had recommended on the basis of the request made by the (previous) central government,” Odisha’s steel and mines minister Prafulla Kumar Mallik told Reuters. “If POSCO will have to bid, it will be a setback for the project.”

Currency conspiracy theory wide of the mark with iron ore – by Clyde Russell (Reuters U.S. – February 5, 2015)

February 5, 2015

http://www.reuters.com/

LAUNCESTON – Some people love conspiracy theories and the latest is that the Australian central bank is deliberately weakening its currency to save the country’s big iron ore miners.

That’s the opinion of Lourenco Goncalves, chief executive of U.S.-based iron ore and coal miner Cliffs Natural Resources but, like virtually all such theories, it fails the test of logic and credibility.

Goncalves argues that the Reserve Bank of Australia (RBA) has manipulated its currency to help his much bigger rivals, the Anglo-Australian pair of Rio Tinto and BHP Billiton.

In comments made on Tuesday, the same day Australia’s benchmark rate was cut by 25 basis points to a historical low of 2.25 percent, the outspoken CEO said the RBA was “taking no prisoners” with the Australian dollar.

“They want to help BHP, they want to help Rio Tinto, they want to help that lady over there, Gina whatever,” Goncalves said, a reference to Australia’s richest person, Gina Rinehart, whose company is due to start up the 55 million tonne a year Roy Hill mine in Western Australia later this year.

B.C. conservation officers raid two sites in Mount Polley investigation – by Sunny Dhillon (Globe and Mail – February 4, 2015)

February 5, 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.

VANCOUVER — Conservation officers investigating the Mount Polley mine spill have finished raiding two sites, though it remains unclear what charges could be laid, or when.

Officers executed search warrants at the mine, near Williams Lake, and the company’s Vancouver office on Tuesday. The spill occurred in August, when 25 million cubic metres of water and mining waste breached a tailings pond and entered Polley Lake and Quesnel Lake.

The investigation is being led by the B.C. Conservation Officer Service, a government agency that focuses on natural resource law enforcement and human-wildlife conflicts.

Chris Doyle, an agency inspector, said Wednesday he could not indicate when the investigation would be complete. “We don’t have a firm timeline, just due to the complexity of the investigation. The goal is obviously to gather the best evidence possible,” he said in an interview.

Mr. Doyle was tight-lipped when asked what officers were hoping to recover from the raids. More than 70 officers were involved, he said.

Crashing Ruble Means Russia Has Cheapest Costs for Gold – by Andrey LemeshkoYuliya Fedorinova (Bloomberg News – February 3, 2015)

February 5, 2015

http://www.bloomberg.com/

(Bloomberg) — The ruble is crashing. Oil is at a five-year low, and economic sanctions have slammed the brakes on the economy. It’s a good time to mine gold in Russia.

With gold typically priced in dollars, and labor and other expenses paid in rubles, Russian mining companies led by Polyus Gold International Ltd. are gaining from the weak currency. It doesn’t hurt that the price of gold has climbed about 7 percent this year as slowing world economies spur demand for the metal.

Russia is the biggest producer after China and its mining companies now have the lowest costs in the world, according to BCS Financial Group, a Moscow-based investment company. What’s more, the country’s central bank is buying up gold from domestic companies as efforts to curb the economic crisis decrease its foreign currency reserves.

“This year may become historically best for the Russian gold producers in terms of margins,” said Kirill Chuyko, head of equity research at BCS Financial Group, in a telephone interview. “Despite the double-digit inflation, their costs may decline as much as 25 percent this year.”

Still, the gains may be less pronounced in the future, according to Natalia Orlova, chief economist at Alfa Bank in Moscow. The central bank’s gold reserves may now be adequate, she said, and its purchases may not climb at the same pace as in 2014.

Will this year’s Mining Indaba be changing for the better? – by Lawrence Williams (Mineweb.com – February 4, 2015)

February 5, 2015

http://www.mineweb.com/

Jonathan Moore, MD of one of the world’s biggest resource investment conferences, talks to Mineweb on how this this major event is still evolving.

The exodus of people from the mining financial and investment capitals of the cold northern hemisphere to Cape Town’s balmy summer climate is already under way, and will become something of a flood as the week continues. They will be heading to the Investing in African Mining Indaba and the satellite events springing up around Africa’s, and one of the world’s, biggest mining investment conferences. What changes are they likely to see this year following the event’s change of ultimate ownership to the London-based Euromoney empire.

Talking to Jonathan Moore, the Mining Indaba’s MD for the past five years (although ownership has changed the specific Indaba conference organisation group continues under his direction), we are already beginning to see changes as the event continues.

Maybe it has plateaued in numbers of attendees for the moment, but that is more a function of the big downturn in the global mining sector as much as anything conference-specific. And anyway Cape Town is perhaps hard pressed to accommodate many more people at this the peak of its tourist season.

Overall the conference organisers are expecting around 7,000 attendees – and with accompanying spouses, ‘very good friends’, and those attending satellite events, or just hanging around on the conference periphery to take advantage of possible networking opportunities without paying for conference attendance, there will probably be some 10,000 plus related people heading south and thus helping boost the Cape Town economy.

City eager to work with chiefs on rail link to Ring of Fire – by Len Gillis (Timmins Daily Press – February 5, 2015)

February 5, 2015

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Mushkegowuk Grand Chief Lawrence Martin says the chiefs and Elders who gathered in Kashechewan last week agreed to the idea of taking over Ontario Northland Railway and extending rail service to the Ring Of Fire.

Along with that, Martin said he wants Timmins to be included in the venture with this city becoming the site of a new chromite ore refinery. Timmins Mayor Steve Black said he supports the Mushkegowuk initiative.

The idea, which was first revealed by The Daily Press two week ago, seeks to expand the Ontario Northland rail link north beyond Moosonee, to include other communities on the James Bay coast and on to the Ring of Fire.

Martin, who is meeting with government officials in Toronto this week, said he was more than pleased with the fact that the Mushkegowuk Tribal Council annual general assembly, held in Kashechewan last week, gave full support to the railway expansion idea.

“Yes, it went very well,” Martin said. “What we did first is show the people all the activity in and around the area, all the mining claims in our territories, some of the exploration work that is going on now and the expansion of De Beers and, of course, all this talk of the Ring Of Fire.”