Republic of Mining

Tumbler Ridge Residents Fear for Town’s Future – by Jeremy J. Nuttall (The Tyee.ca – November 18, 2014)

November 19, 2014

http://www.thetyee.ca/

‘It’s not nice’ in region that brought in foreign workers.

Two years after politicians rushed to defend a mining company that was hiring workers from China over locals in Tumbler Ridge, B.C., residents are worried about their town’s future after layoffs at two nearby mines.

“It’s not nice,” said Clayton Knowles, who lost his job at Wolverine mine seven months ago. “Every day I’m counting the hours I get to make sure I can pay my mortgage.” As residents fret about their economic futures, local politicians are conspicuously silent.

“The federal government, the provincial government are not going to help this town,” Knowles said. “They haven’t yet, have they?”

A local newspaper recently quoted Tumbler Ridge’s deputy mayor as estimating that the unemployment rate in the town of 2,700 was as high as 70 per cent. And some local residents told The Tyee that people are leaving their homes behind as they flee the desperate economic circumstances of the town.

In April, Tumbler Ridge was walloped with news that Walter Energy’s Wolverine coal mine would be idled due to poor coal prices. Months later, Peace River Coal said it would follow suit at the end of the year, also citing low prices and a need for maintenance.

‘Yes’ vote in Swiss referendum not certain to lift gold prices-Deutsche Bank – by Jan Harvey and Anirban Nag (Reuters U.S. – November 17,2014)

November 19, 2014

http://www.reuters.com/

Nov 17 (Reuters) – A vote in favour of boosting Switzerland’s gold holdings at a Nov. 30 referendum won’t necessarily lift bullion prices, Deutsche Bank said in a note, adding there was a “considerable” chance the motion would pass.

The Swiss National Bank could spread out its gold buying, take transactions off market, or use derivatives to cushion gold prices from the impact of a ‘yes’ vote, Deutsche said.

The “Save our Swiss gold” proposal, spearheaded by the right-wing Swiss People’s Party (SVP), would force the SNB to hold at least 20 percent of its assets in gold, make it repatriate gold held overseas and commit never to sell bullion.

A survey last month said the proposal had 44 percent support, short of the majority needed to pass into law. A poll this month showed support had waned.

Gold bulls have flagged the vote as a potential driver of higher prices, but Deutsche said gold, now 38 percent below its 2011 record high, would not necessarily benefit.

Canada’s Estractive Sector Strategy well received, expected to fuel prosperity of sector – by Tracy Hancock (MiningWeekly.com – November 19, 2014)

November 19, 2014

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

JOHANNESBURG (miningweekly.com) – The Canadian government has an important role to play in supporting both the global competitiveness of the Canadian mineral industry and its ability to contribute to the sustainable development of the societies in which it operates, said Prospectors & Developers Association of Canada (PDAC) president Rod Thomas on Tuesday.

The organisation has welcomed Canada’s commitment to assist the mineral exploration and mining industry to succeed abroad, noting that measures to support the sector were included in the updated Corporate Social Responsibility (CSR) Strategy for the Canadian International Extractive Sector that was released on November 7, as well as the Extractive Sector Strategy on Tuesday in Ottawa by Minister of International Trade Ed Fast and Minister of Natural Resources Greg Rickford.

The Ministers made the announcement at the Mining Association of Canada’s annual Mining Day on the Hill luncheon. The Extractive Sector Strategy builds on Canada’s plan for responsible resource Development, ensuring that mining and energy continued to represent an engine of economic growth and prosperity for Canadians.

“Our government recognises the importance of the mining industry to Canadian jobs and long-term economic prosperity. We’re working aggressively to attract investment and open new markets. Once again, we are demonstrating our commitment to creating the conditions that enhance Canada’s competitive position as a global mining leader, ” said Rickford.

NEWS RELEASE: Cliffs Natural Resources Inc. to Pursue Exit Options for its Eastern Canadian Operations

November 19, 2014

CLEVELAND, Nov. 19, 2014 /CNW/ — Cliffs Natural Resources Inc. (NYSE: CLF) announced today that it is pursuing exit options for its Eastern Canadian iron ore operations which may result in the closure of the Bloom Lake mine.

Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer said, “Despite the continued interest of the prospective equity partners in Bloom Lake and in its high quality ore, the potential investment is not achievable within a time frame acceptable to Cliffs. With expansion no longer viable, we have shifted our focus to executing an exit option for Eastern Canadian operations that minimizes the cash outflows and associated liabilities.”

The Company previously disclosed that to make Bloom Lake viable, the development of the mine’s Phase 2 was necessary. The investment was estimated to cost $1.2 billion. In the event of a closure, the estimated closure costs are expected to be in the range of $650 million to $700 million in the next five years.

Cliffs stated also that the Company’s subsidiary, Cliffs Quebec Iron Mining Limited, along with Bloom Lake General Partner Limited and The Bloom Lake Iron Ore Limited Partnership, recently lost an arbitration claim they filed against a former Bloom Lake customer relating to the August 2011 termination of an iron ore sales agreement. In November 2014, the arbitrators decided in favor of the former customer and awarded it damages in an amount of approximately $71 million as well as attorneys’ fees and accrued interest from the date of termination of the offtake agreement in August 2011.

Lawrence Martin elected Mushkegowuk Grand Chief – (CBC News Sudbury – November 17, 2014)

November 19, 2014

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

Lawrence Martin has been elected as the new Grand Chief of the Mushkegowuk Council. Martin, who is a member of the Moose Cree First Nation, beat out six other candidates in a by-election. He has also served as Mushkegowuk Grand Chief before, from 1998 to 2001.

The grand chief position has been open since the death of long-time leader Stan Louttit, who lost a battle with cancer in June. “We have a lot of the housing issues, we have a lot of the water and sewage problems,” Martin said of the challenges he will face as Grand Chief.

“But there’s all kinds of money out there. Minister Rickford just announced the Canada Build program that has millions and millions of dollars and now we can actually start applying for those funds for the infrastructure in the communities.”

After Martin served a term with Mushkegowuk Council, he was active in off-reserve politics. He served as mayor of the towns of Cochrane and Sioux Lookout.

“Lawrence Martin made history as the first Aboriginal person in Ontario elected to lead a non-native municipality, then made history again by becoming one of the only people in Canada elected to lead two different municipalities,” Nishnawbe-Aski Nation Grand Chief Harvey Yesno said in a release.

Ring of Fire funding held up by Ottawa, Ontario battle – by Bill Curry (Globe and Mail – November 19, 2014)

November 19, 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.

OTTAWA — Plans to spend billions of federal and provincial dollars on infrastructure in Ontario are being held up by a behind-the-scenes battle over the Ring of Fire, as the province wants Ottawa to match $1-billion in new money to develop the ambitious mining project.

Nearly two years have passed since Ottawa announced a 10-year, $14-billion Building Canada Fund for infrastructure, but the Conservative government is expressing its strong frustration that Ontario has yet to submit a list of projects. Ottawa has said Ontario qualifies for $2.7-billion from the fund, but the province argues that using that money for the Ring of Fire would leave very little for other provincial needs such as transit and new roads.

As a result, the two governments appear to be at loggerheads, though ministers and officials are attempting to break the impasse. The waiting, combined with falling chromite prices, has proved to be too much for Cleveland’s Cliffs Natural Resources – the region’s leading mining firm is now looking to sell its Ring of Fire assets.

Federal Natural Resources Minister Greg Rickford, who represents the Northwestern Ontario riding of Kenora, insisted Tuesday that there is momentum around the Ring of Fire and that he expects the two governments to make progress shortly.

MPP says Ontario dragging its feet on Ring of Fire – by Jeff Labine (Timmins Daily Press – November 19, 2014)

November 19, 2014

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The MPP for Timmins-James Bay is blaming the Liberal government for squandering the proposed Ring of Fire project and causing friction with mining companies.

Ontario Finance Minister Charles Sousa delivered his fall economic statement, saying the government is working to meet fiscal targets despite modest economic growth and later than expected revenues. He said the revenue projection for 2014-15 is $118.4 billion – $509 million lower than first forecast.

In that same report, Sousa once again called on the federal government to match the Liberal’s $1-billion investment into the Ring of Fire.

New Democrat MPP Gilles Bisson said because the Liberals have dragged their feet, major companies like Cliffs Natural Resources have left the project. He said Cliffs and many other mining companies continue to voice their frustration with the government.

“They have been talking about the Ring of Fire for eight or nine years,” he said. “They have mentioned it now in two or three budgets and a couple of Throne Speeches. Now they got this fallacy going on that they are going to do something when it comes to infrastructure in the Ring of Fire but we have to wait for the feds.

Feds prepared to spend billions on Ring of Fire – by Len Gillis (Timmins Times – November 18, 2014)

November 18, 2014

www.timminstimes.co

Federal mines minister Greg Rickford said this week the federal government is ready to ante up its share of infrastructure funding for nationally significant projects such as the Ring of Fire mining development.

But he made it clear that the Province of Ontario will have to pay a share of those costs as well. Rickford, Canada’s Minister of Natural Resources, was speaking at the annual Mining Day event on Parliament Hill on Tuesday. The event was sponsored by the Mining Association of Canada. The Timmins Times requested a copy of his speech.

Rickford, the government MP for Kenora, said he recognizes the importance of mining on both the provincial and national levels, in that it continues to generate tens of billions of dollars to Canada’s GDP (gross domestic product).

“Bottom line – mining is a cornerstone of Canada’s economy and our quality of life,” he said. He admitted that as a Northern MP, he has a continuing local interest.

“My riding has a dynamic mining sector, with some of this country’s biggest mines. As your own figures show, the sector is directly responsible for providing more than 380,000 jobs. The industry is a major employer of Aboriginal Peoples, providing employment to over 10,000 individuals,” Rickford told the audience.

Media Statement: Dealing With Occupational Lung Disease – A Collaborative Initiative By SA Mining Companies

November 18, 2014

Five companies to seek comprehensive solution on occupational lung disease

Johannesburg, 18 November 2014: Anglo American South Africa, AngloGold Ashanti, Gold Fields, Harmony and Sibanye (“the companies”) announce that they have formed an industry working group to address issues relating to compensation and medical care for occupational lung disease (OLD) in the gold mining industry in South Africa.

The companies intend to engage all stakeholders in order to work together to design and implement a comprehensive solution that is both fair to past, present and future gold mining employees, and also sustainable for the sector.

To this end, the companies are arranging initial meetings with the departments of health, labour and mineral resources, organised labour, legal representatives of claimants and other mining companies. It is intended that this will lead to an intensive engagement process during 2015 intended to lead to a comprehensive solution.

The companies believe that fairness and sustainability are necessary to any comprehensive solution. The solution needs to be a product of the engagement process that has been initiated.

The companies are among respondent companies in a number of lawsuits related to occupational lung disease. These companies do not believe that they are liable in respect of the claims brought, and they are defending these.

Perception study of Aboriginal Canadians reveals low opinion of mining industry – by Creamer Media Reporter (MiningWeekly.com – November 18, 2014)

November 18, 2014

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

JOHANNESBURG (miningweekly.com) – A Canada-wide survey of Aboriginal Canadians who reside in rural and/or remote communities has revealed that only 38% have a favourable perception of the mining and mineral exploration industry. This is a considerable difference compared with the positive approval among Canadians cited in recent industry studies, ranging between 76% and 82%.

The results provide valuable insight on how mining proponents can gain social license by building positive relationships with Aboriginal communities, addressing concerns and ensuring the communities benefit from proposed projects.

Canada’s Minister of Natural Resources and the Federal Economic Development Initiative for Northern Ontario, Greg Rickford, on Monday highlighted the importance of mining to Aboriginal peoples and the Canadian economy, as well as the potential presented by areas with high mineral development opportunities such as the Ring of Fire and the North.

When addressing attendees of the Canadian Aboriginal Minerals Association’s twenty-second annual conference, the Minister also emphasised the Canadian government’s commitment to responsibly developing Canada’s natural resources, which includes engaging with communities and environmental stewardship.

Rickford underscored the government of Canada’s ongoing efforts to increase Aboriginal participation in the mining industry with a particular emphasis on Aboriginal youth.

Twenty-Nine Coal Mining Deaths: Should The Former CEO Go To Prison? – by Ken Silverstein (Forbes Magazine – November 17, 2014)

November 18, 2014

http://www.forbes.com/

During the 2014 Midterm Elections, most candidates for federal and state offices in Appalachia couldn’t get enough of coal — races, in essence, to see who could be the most pro-coal. Now, though, with criminal charges just announced against one of the coal barons, elected officials are running in the opposite direction.

Those living in West Virginia’s coal towns have long known of Don Blankenship, the former chief executive of Massey Energy that is now owned by Alpha Natural Resources ANR -6.9%. To shareholders, he had been a no-nonsense guy, increasing mining production while adding to Massey’s bottom line. To miners and regulators, however, he has been the ultimate hard-ass, caring nothing about the little guy.

Lacking sentimentality is not a crime. But ignoring established mine-safety laws while misleading shareholders about those priorities is illegal. That is what the U.S. District Court for Southern West Virginia is alleging in its four-count indictment against Blankenship, released late last week. If found guilty of all charges, the former CEO could face up to 31 years in prison.

“He could have talked himself into believing that he knew the industry and the risks better than the government. He could also have chosen to close his eyes to the risks and was driven purely by greed. He could also try to justify it by reasoning that if someone dies, then it is simply a function of being in a dangerous business,” says Jane Barrett, professor of law and director of the Environmental Law Clinic at the University of Maryland Law School, in an interview.

How big miners are reliving the late 90s bust – by Steve Todoruk (Business Excellence Mining – November 18, 2014)

November 18, 2014

http://www.bus-ex.com/

Steve Todoruk, a mining veteran who joined Rick Rule in 2003 at Sprott Global Resource Investments Ltd. says he’s seeing some key similarities between today and the last big bear market for resource stocks, which lasted from around 1998 to 2001. Many of today’s mining legends made their reputation and their fortune during that time.

The last time we saw this happen was in the late 1990s. Gold was around $300 per ounce; silver was near $6; and copper was $0.60 a pound.

Commodity prices had fallen so much that big miners were producing near or below the sale price of their product. In some cases, the more they produced the more money they lost. Many mines had been shut down or were in the process of closing due to their inability to produce a profit.

Copper miners needed around $1.10 per pound to make a decent profit. At $0.60 these companies were losing their shirts. In the gold space, Goldcorp was one of the very few miners to eke out a small profit because they had only one mine, which happened to be one of the richest high-grade gold mines in the world.

Today, most industry experts believe that the ‘all-in sustaining cost’ to produce one ounce of gold is somewhere between $1,000 and $1,300. The all-in sustaining costs include all the costs of running current mining operations plus cash spent finding new ounces to replace mined reserves.

Japan’s nuclear restart to boost Australian uranium industry – by Vicky Validakis (Australian Mining – November 18, 2014)

November 18, 2014

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

The Minerals Council of Australia says Australia’s uranium industry is set for a boost as Japan moves to restart nuclear reactors for the first time since the Fukushima meltdown.

Two reactors at Japan’s Sendai nuclear plant in the south west of the country are due to restart next year after receiving approval from local governor Yuichiro Ito.

This is the first time a reactor will restart since an earthquake triggered a tsunami in 2011, causing a meltdown at the Fukushima facility.

All of Japan’s 48 nuclear plants were shut down in response, but Prime Minister Shinzo Abe has been pushing for their reopening as the cost of importing oil and gas hurts the Japanese economy, BBC reported.

Before the meltdown nuclear energy produced around 30 per cent of Japan’s power. “I have decided that it is unavoidable to restart the No. 1 and No. 2 Sendai nuclear reactors,” Ito said. “I have said that assuring safety is a prerequisite and that the government must ensure safety and publicly explain it thoroughly to residents.”

Executive director for uranium at the Minerals Council of Australia Daniel Zavattiero said the move was good news for the local uranium industry and its 4000 workers.

Coal Rush in India Could Tip Balance on Climate Change – by Gardiner Harris (New York Times – November 17, 2014)

November 18, 2014

http://www.nytimes.com/

DHANBAD, India — Decades of strip mining have left this town in the heart of India’s coal fields a fiery moonscape, with mountains of black slag, sulfurous air and sickened residents.

But rather than reclaim these hills or rethink their exploitation, the government is digging deeper in a coal rush that could push the world into irreversible climate change and make India’s cities, already among the world’s most polluted, even more unlivable, scientists say.

“If India goes deeper and deeper into coal, we’re all doomed,” said Veerabhadran Ramanathan, director of the Center for Atmospheric Sciences at the Scripps Institution of Oceanography and one of the world’s top climate scientists. “And no place will suffer more than India.”

India’s coal mining plans may represent the biggest obstacle to a global climate pact to be negotiated at a conference in Paris next year. While the United States and China announced a landmark agreement that includes new targets for carbon emissions, and Europe has pledged to reduce greenhouse gas emissions by 40 percent, India, the world’s third-largest emitter, has shown no appetite for such a pledge.

“India’s development imperatives cannot be sacrificed at the altar of potential climate changes many years in the future,” India’s power minister, Piyush Goyal, said at a recent conference in New Delhi in response to a question. “The West will have to recognize we have the needs of the poor.”

NORCAT training centre at Collège Boréal – by Len Gillis (Timmins Daily Press – November 17, 2014)

November 18, 2014

http://www.timminspress.com/

TIMMINS – NORCAT, the Sudbury-based mining research and innovation agency, has opened a training and development centre in Timmins. The facility is set up at the Timmins campus of Collège Boréal.

NORCAT Timmins, as the facility is called, will provide programs, services and training resources that focus on such things as reducing injuries, saving lives and enhancing productivity in the workplace, said Ken Stewart, the manager of training and development for NORCAT Timmins.

Stewart said Northern College had previously established an e-learning training partnership in Timmins but he said there was a market demand to “grow the business” in Timmins.

“Certainly we will have classroom training and this will enhance their e-learning courses. We have in excess of 50 courses,” Stewart said.

NORCAT has set up two training and e-learning classrooms at the college and Stewart said he is confident that Northeastern Ontario mining operations will soon be taking advantage of the facility.

“Of course, the big thing now is simulation training. That is huge. NORCAT has a simulator in Sudbury. We can look forward to seeing either that simulator, or a stand alone simulator, come to Timmins to be used with the local mining community,” said Stewart.