Republic of Mining

The Klondike Gold Rush debuts Jan. 6 on PBS – by Tony Wong (Toronto Star – January 1, 2015)

April 5, 2015January 5, 2015

http://www.pbs.org/wned/klondike-gold-rush/home/

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.

Documentary about Yukon gold rush in the late 1800s based in part on Charlotte Gray’s Gold Diggers.

Canadian author Charlotte Gray has mined literary gold by plumbing the history of the Klondike. Her well-reviewed 2010 book Gold Diggers: Striking It Rich in the Klondike spawned a scripted miniseries executive-produced by Ridley Scott, starring Tim Roth and Sam Shepard on the Discovery Channel. And now PBS is premiering TheKlondike Gold Rush on Tuesday, Jan. 6.

The documentary is not entirely based on Gray’s book, but the Ottawa author is featured extensively in the hour-long program, along with historians Michael Gates and Terrence Cole.

“People set off with very little clue about where they were going, they were swept up in this mass hysteria,” says Gray in the film. “The saying was that there was gold as thick as a cheese on a sandwich.”

Merry Mining Christmas and Happy New Year from RepublicOfMining.com – Be Back January 5, 2015

December 23, 2014

Chilean mining firms nervous about impending labor reforms – by Fabian Cambero (Reuters U.S. – December 22, 2014)

December 22, 2014

http://www.reuters.com/

SANTIAGO – Dec 22 (Reuters) – Mining firms in Chile, the world’s top copper producer, say the government has left them in the dark over a new labor bill to be delivered to Congress this month, undermining the confidence of investors grappling with low metal prices.

President Michelle Bachelet’s socialist government says it wants to modernize collective contract negotiations and strengthen unions, though it has been vague on details. Senators close to the government have said it could seek to limit mining companies’ ability to replace workers during strikes.

The labor reform is part of a battery of measures aimed at reducing Chile’s gaping wealth gap, and Bachelet faces a tricky balancing act as mining accounts for half of Chile’s exports.

Mining companies fret the reforms will jack up labor costs and increase the power of unions in a country where strikes are relatively uncommon.

“It’s not the moment to implement a radical labor reform because we have had too many changes and each change creates uncertainty,” said Diego Hernandez, president of Antofagasta Minerals.

State-run Codelco and private firms like BHP Billiton, Anglo American, Glencore, and Antofagasta are all juggling weak copper prices, due to slacker demand from China, and surging costs.

Iron Ore Extends Drop to Five-Year Low as China Economy Weakens – by Jasmine Ng (Bloomberg News – December 22, 2014)

December 22, 2014

http://www.bloomberg.com/

Iron ore sank to the lowest level since 2009 as supply exceeds demand and China, the biggest user, contends with its weakest expansion in almost a quarter century.

Ore with 62 percent content delivered to Qingdao, China, retreated 1.8 percent to $67.90 a dry metric ton, data compiled by Metal Bulletin Ltd. showed. That’s the lowest since June 3, 2009, and extends this year’s slump to 50 percent.

The steel-making raw material is headed for the biggest annual loss in at least five years as BHP Billiton Ltd. (BHP), Rio Tinto Group and Vale SA (VALE5) expanded output, betting increased production will boost revenue and force less competitive mines worldwide to close. Gripped by a property downturn and excess capacity, China is set to grow 7.4 percent this year, the slowest full-year expansion since 1990. Australia cut its price estimate for next year by 33 percent as a surplus builds.

“The falling price this year has been far deeper than anyone anticipated,” Andrew Hodge, an analyst at Wood Mackenzie Ltd. in Sydney, said before today’s prices were released. “China has had weaker than expected demand from its own residential property sector. For the big three, they have the lowest cost operations so there’s no reason to stop producing,” he said, referring to BHP, Rio and Vale.

The market needs to absorb a surplus of about 110 million tons next year, almost double the 60 million tons in 2014, Goldman Sachs Group Inc. estimated in October. The bank forecasts a price of $80 next year.

Editorial: Top stories of 2014 – by John Cumming (Northern Miner – December 22, 2014)

December 22, 2014

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists. jcumming@northernminer.com

Mining and mineral exploration are by nature businesses for optimists, but looking back over 2014, it’s hard not to conclude that difficulties and disasters tended to outweigh the brighter spots of achievement and growth. Here is our choice of the top stories of 2014:

10. Peter Munk’s exit — One of the giants of Canadian mining took his final bow in the mining world in April 2014, as Barrick Gold founder and chairman Peter Munk delivered his last address to shareholders at the company’s annual meeting. Having played a pivotal role in growing Barrick from modest beginnings to the world’s No. 1 gold producer, Munk’s reputation as a company builder is secured. As the year progressed, Barrick saw a major turnover in top management.

9. Rise of the house of Lundin — While other miners focused on cutbacks, the Lundin Group of Companies was a mine developer and bargain hunter. On top of financing numerous struggling juniors, the Lundin group piled up successes such as Lundin Mining’s start-up of its Eagle mine in Michigan and purchase of the Candelaria mine from Freeport-McMoRan; Fortress Minerals’ purchase of Kinross Gold’s Fruta del Norte project; and Lucara’s continued success in diamonds.

8. Crises in West Africa — A favourite destination for junior gold miners had a deadly year marked by an outbreak of Ebola that killed 7,300 people in Sierra Leone, Liberia and Guinea.

Obama signs mining land swap measures into law – by Dorothy Kosich (Mineweb.com – December 22, 2014)

December 22, 2014

http://www.mineweb.com/

Two copper projects in Arizona and Nevada will now advance to the next stage as the National Defense Authorization Act has now become law.

The NDAA includes land swaps that benefit the Resolution Copper Project in Arizona. Rio Tinto Copper’s CEO says the passage of the land exchange at Resolution will help it establish the full potential of the resource and provides a clear road map to commercial development.

President Barak Obama has signed the National Defense Authorization Act (NDAA) into law, which includes riders containing the largest public lands package since 2009, which includes land swaps that benefit the Resolution Copper Project in Arizona and the Pumpkin Hollow Copper Project in Nevada.

A joint venture of Rio Tinto and BHP Billiton allows for the exchange of 2,400 acres of federal land at Oak Flat around the deposit for 5,400 privately owned acres of land held by Resolution Copper including riparian habitat on the lower San Pedro River.

The high-value conservations land were identified through the input from the U.S. Forest Service, the Bureau of Land Management, the Audubon Society and others. The swap consolidates ownership of the land where the mine will be developed and operated.

Turning point for coal? Japanese trading firms snap up coal assets – by Yuka Obayashi and Sonali Paul (Reuters India – December 22, 2014)

December 22, 2014

http://in.reuters.com/

TOKYO/MELBOURNE, Dec 22 (Reuters) – Only a few months ago, a potential buyer said Japanese trading house Marubeni Corp was prepared to sell a costly stake in a Canadian coal mine for as little as $1.

But a flurry of acquisitions of high-quality coal assets by Japanese firms in recent weeks signals that some trading houses at least are betting a depressed coal market where prices have halved in three years may be bottoming out.

This vote of confidence comes amid signs that coal demand in Japan and emerging markets such as India is holding up well despite weaker demand in markets such as China, where coal imports in the first 11 months fell nearly a tenth.

Japan is the world’s second-biggest coal importer behind China, importing almost 200 million tonnes a year.

Recent acquisitions include the first coal investment by Mitsui & Co in 10 years. It is purchasing a stake in a Mozambique mine operated by Brazil’s Vale, in which the trading firm has an indirect stake.

“The biggest reason for participating in the Moatize project is to retain excellent quality metallurgical coal that is scarce globally,” Tetsuya Fukuda, general manager of Mitsui’s coal division, said. “With the resource supercycle, we had been not able to buy any assets.”

Nickel Shortage Propels Philippines Mining Boom: Southeast Asia – by Ian Sayson (Bloomberg News – December 21, 2014)

December 22, 2014

http://www.businessweek.com/

Michael Defensor is racing to mine and ship nickel from projects across the Philippines to plug the gap in global supplies left by Indonesia’s ore-export curbs.

“Indonesia’s ban affected us positively,” said Defensor, chairman of Pax Libera Mining Inc. and the nation’s environment secretary from 2004 to 2006. He’s preparing four new sites for next year after opening two in the past two years. “We will maximize this window and ship as much as we can.”

The Indonesian curbs, designed to promote local processing, started in January and were upheld in court this month. The ban initially drove prices to a two-year high in May, before larger-than expected Philippine exports and slowing Chinese growth reversed the rally. Citigroup Inc. says it’s still bullish on nickel because the country won’t be able to expand supply much more and a global shortage will emerge.

Futures on the London Metal Exchange, the global benchmark for the metal used to make stainless steel, traded at $15,550 a metric ton on Dec. 19, from this year’s high of $21,625 in May. The price is still 12 percent higher for the year, making nickel the best performing industrial metal on the LME.

“Everyone will try to max out their permit,” said Ramon Adviento, a mining analyst at Maybank ATR Kim Eng Securities in Manila. “The low-hanging fruit has already been harvested even before the ban, so there is probability that the Philippines won’t meet the gap” left by Indonesia, he said.

Mining company says it’s committed to Superior’s success – by Emily Bregel (Arizona Daily Star – December 21, 2014)

December 22, 2014

http://tucson.com/

The mining company seeking to acquire a copper deposit just outside Superior wants to help the town prepare for life after the ore body is depleted and the mine shuts down.

“We want to help them be sustainable and self-sustaining,” said Vicky Peacey, Resolution Copper Mining’s senior manager for environment, permitting and community. She notes that the mine has contributed to the town’s efforts to revitalize and has supported the chamber of commerce, local schools and recreation groups. “It’s not just about mining. It’s about diversifying.”

Leaders in the mining town of Superior — who voted last year to revoke the town’s written support for the Resolution mine — agree with the company on that point, at least.

Town attorney Steve Cooper said Superior could become a tourist destination, based in part on the outdoor recreation and natural beauty surrounding the mining town.

“The area in and around Superior is beautiful,” he said, describing a plan to build a trail along Queen Creek from the Oak Flat campground to the Boyce Thompson Arboretum to the west. “We want to basically try to make the town a multi-business community, versus having a one-employer town.”

‘No hope for Harlan’: Deep in coal country, pondering future without it – by Allen G. Breed (The Associated Press – December 20, 2014)

December 22, 2014

http://www.middletownpress.com/

HARLAN, Ky. – The rest of the house is just waking as Scottie Sizemore plops down in a rocking chair on his front porch with a cup of coffee. The sun has yet to crest the ridge above, where mist clings like clouds that couldn’t quite make it over.

Sizemore is the fourth generation of his family to mine coal in Harlan County. He knows he’ll probably be the last.

For over a century, life in Central Appalachia has been largely defined by the ups and downs of the coal industry. Through all the bust years, there was always the promise of another boom. Until now.

There is a growing sense in these mountains that this downturn is different, deeper. That for a variety of reasons — economic, environmental, political — coal mining will not rebound this time.

State and federal initiatives are exploring everything from ecotourism and small farmer loans to regional tax incentives for job creators. Some here pray for a regulatory climate change that would breathe new life into the region’s mines. For Sizemore and his wife, Madonna, the answer is simple, if painful. They’re leaving.

Good environment, good jobs: We can have both – by Frank Ongaro (Mesabi Daily News – December 20, 2014)

December 22, 2014

http://www.virginiamn.com/

Frank Ongaro is executive director of Mining Minnesota, which is a group working with local citizens, businesses and other organizations to bring growth and job creation to the state through responsible development of natural resources.

But this simply isn’t a fair or accurate portrayal of the issues at hand. We are all environmentalists and we all enjoy the beauty and serenity of Minnesota’s wilderness. Our state has a lot to offer outdoor enthusiasts, and with a population above 3.5 million, there are many people who call Minnesota home who have an interest in protecting the outdoors for future generations.

A majority of these 3.5 million individuals also need jobs — jobs that support their families and provide opportunities for future generations of Minnesotans. Thankfully, we can have both — the environment and mining have coexisted for more than 130 years and with modern technologies, will continue to do so as we expand the state’s rich mining tradition.

Mining copper, nickel, platinum and palladium from one of the world’s largest, untapped source of these strategic metals in Minnesota’s Duluth Complex will provide thousands of high-quality jobs in a range of sectors, as well as the metals we all need for the growing green economy. Wind turbines and solar equipment require copper. Electric cars and rechargeable batteries use nickel and copper. The autocatalysts in cars require platinum and palladium.

OBITUARY: Entrepreneur Terry Howes made a fortune through once-dormant mining stocks – by Tom Hawthorn (Globe and Mail – December 22, 2014)

December 22, 2014

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.

Terry Howes was a prospector who made a fortune from mining, though he never stuck an axe in the ground, or swished a pan of gravel in a Klondike river. Instead, he surveyed dusty documents in archives, seeking nuggets of information in which could be found unclaimed treasure.

Mr. Howes had several eureka moments by locating shareholders of once-dormant mining stock that had become valuable. Mr. Howes took a percentage of his findings as a reward.

“I don’t know of anyone else who does what I do,” he told the Toronto Star in 1989. “I got the idea when the price of gold went up eight or nine years ago. I was aware there were a good many gold-mining companies that had lost all their value. … Now suddenly they were valuable again. I thought it might be a good idea to track down shareholders and tell them what they had.”

The laborious and painstaking search along a paper trail might be described as a get-rich-slow scheme. Mr. Howes, who has died at 85, also operated a company called Locator of Missing Heirs Inc. As the name promised, he tracked down those owed money from an estate, negotiating a fee with the heirs for the service.

Massive B.C. gold mine near Alaska border gets environmental approval – by Terri Theodore (Canadian Press/Vancouver Province – December 20, 2014)

December 22, 2014

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

VANCOUVER — The federal government approved the environmental assessment application on Friday for the massive KSM gold and copper mine in northwestern British Columbia near the Alaska border.

The mine, which is owned by Seabridge Gold Inc. (TSX:SEA), is considered the largest undeveloped gold reserve in the world and also has copper, silver and molybdenum deposits.

The project would be just 35 kilometres from the Alaska border, and in August the state took the rare step of asking the Canadian government for involvement in the approval process over concerns for its rivers and fish.

But the Canadian Environmental Assessment Agency concluded in its report that the KSM project isn’t likely to cause significant adverse environmental effects.

Seabridge CEO Rudi Fronk said the company was confident it would receive the approval because it has spent six years and $200 million working with government, local First Nations and the state of Alaska. The company conducted 40 working group sessions with federal and provincial regulators, First Nations and American regulators, he said.

Israeli billionaire fails to silence critic over mine deal – by Henry Mance (Financial Times – December 21, 2014)

December 22, 2014

http://www.ft.com/home/us

An Israeli diamond billionaire is facing defeat in an audacious attempt to use data protection laws to stifle one of his loudest critics.

Beny Steinmetz is engaged in a long-running legal battle with Global Witness, a campaign group that has raised “corruption concerns” about how BSG Resources, the mining arm of his family conglomerate, acquired rights to Africa’s largest iron ore project. Both Mr Steinmetz and BSG Resources deny wrongdoing in relation to the Simandou concession in Guinea.

Lawyers for Mr Steinmetz and three BSGR directors had tried to invoke the UK’s Data Protection Act to force Global Witness to reveal what data it held in relation to them and, if necessary, to destroy it. That move, which Global Witness said would compromise its confidential sources, was the first time privacy laws had been used in such a manner.

Last week, the Information Commissioner’s Office (ICO) rejected Mr Steinmetz’s request, saying Global Witness’s activities were exempt from data protection requirements because they were “for the purposes of journalism”. Global Witness says on its website that it campaigns “to stop elites getting away with looting entire states . . . and for an end to the exploitation of our environment”.

The case has been keenly watched by lawyers at news organisations, who foresaw a significant impact on investigative journalism had the lawsuit succeeded.