Republic of Mining

US warns Zimbabwe over US$3bln Russia deal – by Staff Reporter (New Zimbabwe – October 3, 2014)

October 6, 2014

http://www.newzimbabwe.com/index.aspx

THE United States has reportedly warned Zimbabwe about its growing economic dealings with Russia after Harare recently sealed an agreement with Moscow for a US$3 billion platinum mine.

According to Herald columnist Nathaniel Manheru, who is thought to be President Robert Mugabe’s spokesman George Charamba, the Obama administration threatened further sanctions against Zimbabwe over its ties with Russia.

Manheru’s claims could not be verified with the US embassy in Harare late Friday night. The US has imposed sanctions against Moscow, tightening restrictions on major Russian state banks and corporations, after accusing the Kremlin of providing military backing to Ukrainian separatists and generally destabilising the region.

Zimbabwe’s Pen East Investments has teamed up with Afronet, a consortium of three Russian partners, to form Great Dyke Investments, which is developing the US$3 billion Darwendale platinum project.

At full development in 2024, the mine will produce 800,000 ounces of platinum, pushing Zimbabwe’s output over one million ounces, and create 8,000 jobs.

B.C. signed-off on tailings dam repair after fissure found in 2010 – by Justine Hunter (Globe and Mail – October 5, 2014)

October 6, 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.

VICTORIA — The owners of the Mount Polley mine say a crack in their tailings dam found in 2010 was almost a kilometre away from the spot where the dam containing toxic waste failed this summer, and the company “fully complied” with a series of recommendations to improve safety in response to that initial fissure.

But NDP Leader John Horgan is calling for the release of technical documents to show just what the company and the province knew about the safety of the dam prior to the Aug. 4 breach in the dam that flushed 24 million cubic metres of water and mine tailings into Quesnel Lake in central B.C.

The last geotechnical inspection by the ministry of mines at Mount Polley took place in September of 2013 and resulted in no orders related to the tailings storage facility, according to ministry officials.

The government has not opened its inspection files, saying it must “protect the integrity and independence” of an independent engineering investigation and inquiry into the tailings pond breach that is expected to be completed in January.

“The most horrific environmental disaster in B.C.’s history wouldn’t have happened if everything was fine,” Mr. Horgan said Sunday. “They are trying to say everything that could be done, was done, but they won’t release the documents to show what they did.”

UPDATE 3-BHP aims to slash iron ore costs to become cheapest supplier – by Silvia Antonioli and Sonali Paul (Reuters India – October 6, 2014)

October 6, 2014

http://in.reuters.com/

LONDON/MELBOURNE, Oct 6 (Reuters) – BHP Billiton aims to cut its iron ore production costs by more than 25 percent and squeeze more tonnes from its mines as it aims to overtake rival Rio Tinto as the world’s cheapest producer, the world’s largest miner said on Monday.

BHP, the No. 3 iron ore producer behind Brazil’s Vale and Rio Tinto, outlined the cost-cutting and expansion plan even as iron ore prices have slumped 42 percent this year, as it sees demand picking up over the medium term.

“We will continue to squeeze the lemon because at the end of the day it’s just so value accretive,” Jimmy Wilson, the head of BHP’s iron ore division, told reporters in a video conference ahead of an analyst tour of its West Australian mines.

Miners’ focus has shifted to cost cutting as iron ore prices have dropped from about $190 a tonne in 2011 to less than $80 now, sinking to five-year lows as supply growth from the mega producers has exceeded demand growth by more than two to one.

BHP said it aims to cut production costs, excluding freight and royalties, to less than $20 a tonne in the medium term, from $27.50 for financial year 2014. That compares with Rio Tinto’s cash cost of $20.40 a tonne in the first half of 2014.

“The name of the game in the past was volume above and before everything else. Now cost is much more important and we are finding a lot more opportunities,” Wilson said.

NDP critic knocks Liberals over Ring of Fire – Michael Mantha Letter to the Editor (Sudbury Star – October 4, 2014)

October 6, 2014

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

Michael Mantha is the MPP for Algoma-Manitoulin and the NDP Critic for Northern Development and Mines.

Re: Minister defends record on Ring of Fire

Northern Development and Mines Minister Michael Gravelle’s letter to the editor criticizing NDP Leader Andrea Horwath on the Ring of Fire demonstrates the Liberal government’s failure to develop the project and Premier Wynne’s lack of leadership for Northern Ontario.

The minister claims his government is leading the way to drive development in the Ring of Fire and that significant progress has been made despite his government’s widely reported failures on the project. Ask Northerners what they think about the Liberal record on Ring of Fire.

After lack of action on the Ring of Fire over the last seven years and a vague announcement of creating a development corporation, the Wynne government gave itself a deadline of 60 days to create that corporation that was to include partners in industry and First Nations. What the Wynne government produced, in order to meet its self-imposed deadline, was a board comprised of four government bureaucrats sitting at the table by themselves.

The Wynne government failed to bring industry together. Premier Wynne and Minister Gravelle failed to bring First Nations together.

Ontario Premier Wynne Mandates Environmental And Energy [and Ring of Fire] Priorities – by Marc McAree and Julie Abouchar (Mondaq.com – October 6, 2014)

October 6, 2014

http://www.mondaq.com/

Willms & Shier Environmental Lawyers LLP

Ontario Premier Kathleen Wynne released mandate letters to her cabinet ministers on September 25, 2014, outlining key priorities for each ministry. Premier Wynne’s marching orders include many environmental and energy priorities. Key environmental priorities relate to climate change, waste diversion and reduction, pollution prevention, drinking water quality for First Nations and invasive species. Notable among the Premier’s energy priorities are protecting Ontario’s interests in pipelines and advancing renewable energy policies.

Environmental Priorities

Climate Change – the Ministry of Environment and Climate Change (MOECC) will lead the development of a new long-term climate change strategy for the province in 2015 that will look forward to 2050 and contain an action plan to achieve greenhouse gas (GHG) reduction targets for 2020. MOECC will work with other key ministries such as the Energy, Transportation and Natural Resources and Forestry, amongst others to implement the strategy and achieve targets. Other climate change efforts identified in the mandate letter include public and stakeholder engagement on climate change, developing a Canadian Energy Strategy that includes coordinated GHG emission reduction efforts, and developing new alternative fuel rules later this year to help energy-intensive industries reduce GHG emissions.

Pollution Prevention and Responsibility – the MOECC will place greater emphasis on pollution prevention and the “polluter pays” principle, focusing first on contaminated sites. Premier Wynne also encourages the MOECC to review the legislative framework to ensure a comprehensive approach to hold polluters responsible for decisions affecting the environment.

In memory of Walter Curlook (1929 – 2014) Inducted in Canadian Mining Hall of Fame in 1997

October 5, 2014

http://mininghalloffame.ca/

Walter Curlock passed away on October 3, 2014. The following two profiles are from the Canadian Mining Hall of Fame and Sudbury Living Magazine.

Walter Curlook is a man of vision who helped shape the world’s largest nickel producer. Throughout his lengthy career with Inco, he has been responsible for fostering new technologies and products, new working environments and a new era of government and public relations. Aptly described as “an industrial Renaissance man of the 20th century,” he has achieved distinction in mining, metallurgy, environmental protection, and research and development.

Born in 1929 in Coniston, Ontario, Curlook, at age 15, began part time work at Inco’s metallurgical plants in Sudbury. After graduating from Sudbury High School, he earned an undergraduate degree in science from the University of Toronto, followed by a graduate degree and his Ph.D.

At 25, Curlook joined Inco as a research metallurgist in Copper Cliff. With a keen interest in research and an understanding of the benefits of innovation, he earned rapid advancement. In 1989, he was elected a director of Inco and, in 1990, became President Commissioner of PT International Nickel Indonesia. He remains active, even in retirement, and is currently President of Goro Nickel, an Inco joint venture in the South Pacific.

Curlook’s technical achievements reflect his knack for converting theories and good ideas into practical applications. He has been granted 12 process patents and has two more pending.

KWG, Noront react to Cliffs shakeup – by Ian Ross (Northern Ontario Business – October 3, 2014)

October 3, 2014

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

Frank Smeenk was direct in his appraisal of Cliffs Natural Resources ending up on the wrong end of an acrimonious proxy fight with a New York hedge fund. “I thought they deserved everything that befell them,” said the president-CEO of KWG Resources. “They haven’t been easy to get along with at all.”

There’s no love lost between the Toronto junior and the Ohio miner, but a change in leadership and corporate philosophy in Cleveland may signal the thawing of a frosty relationship.

The head of KWG wasn’t at Cliffs’ July 29 shareholders meeting to gloat over the demise of the old guard at the 167-year-old mining giant, but it was a get-acquainted opportunity to meet the new blood as Casablanca Capital seized control of the board of directors.

Casablanca has vowed to make good on its promise to carve off Cliffs’ costly international projects, including its mothballed Ring of Fire chromite properties, like the Black Thor deposit, from its core U.S. mines.

“I’m trying to persuade them that KWG can be the (development) vehicle,” said Smeenk, “that it might be opportune for (us) to be their partner of choice.

Sourcing practices changing as US law on mineral imports from Africa’s Great Lakes region takes hold – by Anine Vermeulen (MiningWeekly.com – October 3, 2014)

October 3, 2014

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

For decades, the trade in tin, tantalum, tungsten and gold (also known as 3TG), along with various other minerals and resources, has played a central role in funding and fuelling some of the world’s most brutal conflicts.

According to international nongovern- mental organisation Global Witness, revenues from the extraction and sale of these natural resources, also known as ‘conflict minerals’, not only provide armed groups with the means to operate but also provide State security forces and corrupt officials with off-budget funding.

Section 1502 of the Dodd Frank Act – the US’s conflict minerals law – is the first piece of legislation that aims to break the links between the lucrative minerals trade in certain African regions and the abusive armed groups that prey on and profit from these regions’ minerals trade.

The Dodd Frank legislation was passed in July 2010 and the final rules for Section 1502 were released in 2012.

“The Dodd Frank Wall Street Reform and Consumer Protection Act came into effect in January last year, and Section 1502 on conflict minerals requires compliance from all public companies that are listed with the US Securities and Exchange Commission (SEC),” ENSAfrica mining and environmental law director Lloyd Christie tells Mining Weekly.

Naomi Klein’s revolutionary dreamland – by Terence Corcoran (National Post – October 3, 2014)

October 3, 2014

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

Parts of Naomi Klein’s new climate-revolution/kill-capitalism manifesto, This Changes Everything: Capitalism vs. The Climate, make for damn good reading. Especially worthy are chapters and sections that explore the group-grope shenanigans of big corporations and pro-business environmental groups as they spent much of the last decade jumping into bed with one another.

But the good bits are not enough to salvage This Changes Everything, a 560-page call-to-arms in which Ms. Klein proposes to overthrow four centuries of Enlightenment-driven human achievement. Down with Francis Bacon, Adam Smith, the scientific method and pretty much all of the core ideas that created the Western world. Notwithstanding all the media attention she’s been getting on the book for the last few weeks, it’s a campaign that’s doomed to fail for any number of reasons.

But there is enough in Ms. Klein’s latest work to keep readers of all ideological stripes engaged, if not enraged. And that includes the free-marketers she wants to put out of business.

A major Klein target is Richard Branson, the media-darling head of Virgin Group who — after a personal PowerPoint presentation from Al Gore on climate change at the Branson mansion — concluded that “we are looking at Armageddon.” Mr. Branson was so alarmed at this pending end of the world shock that he decided to launch a “new Virgin approach to business.” He called it Gaia Capitalism, and made a high-profile pledge at the 2006 Clinton Global Initiative in Manhattan to spend $3-billion to develop bio-fuels as an alternative to climate-destroying oil and gas. Mr. Branson also launched the Virgin Earth Challenge and the Carbon War Room.

Gold’s Faces Big Chart Test After This Week’s Weakness – by Debbie Carlson (Kitco News – October 03, 2014)

October 3, 2014

http://www.kitco.com/

(Kitco News) – Gold prices fell under $1,200 an ounce this week for the first time in 2014, and several market watchers said it’s likely that the yellow metal will seek to take out the 2013 lows, possibly as soon as next week.

Looking at technical price charts, a nearby continuation chart shows the December 2013 low of $1,180, which is just above the June low of $1,179.40. Market watchers said with gold falling as low as $1,190.30 Friday, there’s a good chance bearish traders will try to test the strength of those support levels.

“It’s a matter of when, not if,” said Dave Toth, director of technical research at RJ O’Brien.

December gold futures fell Friday, settling at $1,192.90 an ounce on the Comex division of the New York Mercantile Exchange, down 1.9% on the week. December silver fell Friday, settling at $16.826 an ounce, down 5.7% on the week.

In the Kitco News gold survey, out of 37 participants, 26 responded this week. Of those, seven see higher prices, 16 see lower prices and three see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

NEWS RELEASE: IAMGOLD to sell Niobec for a total consideration of US$530 million – Will focus on profitably growing its core gold business

October 3, 2014

All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.

TORONTO, Oct. 3, 2014 /CNW/ – IAMGOLD Corporation (“IAMGOLD” or “the Company”) today announced that it has reached an agreement to sell its Niobec mine, one of the world’s three niobium producers, to a group of companies led by Magris Resources Inc. for cash proceeds of $500 million after tax upon closing. The sale of Niobec, which is located in Saint-Honoré-de-Chicoutimi in the Saguenay-Lac-Saint-Jean region, Quebec, is to include the adjacent rare earth element (“REE”) deposit. The total consideration of $530 million for the transaction is comprised of a cash payment of $500 million payable on closing, as well as an additional $30 million when the adjacent REE deposit goes into commercial production. A 2% gross proceeds royalty will be payable on any REE production.

“This sale unlocks the value of Niobec for our shareholders, positions IAMGOLD as a pure gold play and significantly improves our liquidity, which provides us with the opportunity to further improve the grade and cost structure of our portfolio of gold assets,” said the Company’s President and CEO, Steve Letwin . “On behalf of the Board of Directors, I extend my thanks to the entire Niobec team for their outstanding efforts over the years to improve their operating performance and strengthen the attractiveness of this asset. I also commend all our employees who continue to work hard and find innovative ways to improve productivity and reduce costs, getting us closer to our target of being free cash flow positive at our owner-operated gold mines, including capital spending.”

“Niobec has been a steady contributor to our operating cash flow since 2006 when we acquired this asset as part of a larger transaction,” said Carol Banducci , IAMGOLD’s Executive Vice President and CFO. “We are pleased that the group of companies is led by Aaron Regent, who brings a wealth of experience in mining and finance to Niobec.

The North is the Future of Ontario – Dave Canfield (Netnewsledger.com – September 26, 2014)

October 3, 2014

http://www.netnewsledger.com/

Northern Ontario is Ontario’s Future

THUNDER BAY – “We are the future of Ontario,” stated Northern Ontario Municipal Association (NOMA) President Dave Canfield. Speaking to the Northwestern Ontario Regional Conference, Friday morning Canfield updated the delegates,

“Getting our communities up and running is critical,” added Canfield, sharing with the delegates that at the recent AMO meetings, that the provincial government is listening. “Premier Wynne was present for the entire hour,” added Canfield, explaining that was the first time that had happened”.

Energy remains a focus for NOMA. Canfield explained that in talks with OPA, most of the time the elected officials, and communities are right. Getting the needed power in the region, not just for mining, but for forestry is important.

Infrastructure funding is a success for the north. There was $100 million announced in the budget. Canfield explained that it might take a bit of time to get it going, but the groundwork has been done.

Forging a New Path – NAN Grand Chief Yesno

Nishnawbe-Aski Nation Grand Chief Harvey Yesno addressed the delegates. One of the goals is building permanant infrastructure into our communities. The Grand Chief spoke on how high costs for transportation and food is impacting the region.

Michael Gravelle on negotiations between mining companies and First Nations – interview by Markus Schwabe (CBC News Sudbury – October 2, 2014)

October 3, 2014

http://www.cbc.ca/morningnorth/ We contacted the Minister of Northern Development and Mines, Michael Gravelle, to talk about the difficulties in negotiations between mining companies and First Nation communities. Click here for the interview: http://www.cbc.ca/morningnorth/past-episodes/2014/10/02/michael-gravelle-on-negotiations-between-mining-companies-and-first-nations/

My Take on Snow Lake II: Ribbon cut at Reed – by Marc Jackson (Thompson Citizen – October 3, 2014)

October 3, 2014

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. editor@thompsoncitizen.net

Prior to Sept. 16, Hudbay Minerals had opened a total of 26 mines in the province of Manitoba; staying true to that prolific nature, the company opened two more on this historic afternoon. A mere two hours after they cut the ribbon on the massive Lalor Project, Hudbay and VMS officials had the scissors out and were doing it all over again 80 kilometres down the road at the Reed Mine!

As the snow swirled outside, close to 100 people gathered in the welcome warmth of Reed’s surface shop to break bread, and toast the province’s newest mine.

As he did previously in the day, Hudbay Manitoba business unit vice-president Rob Winton very capably acted as emcee and after smudging the gathering place with sage and sweetgrass, Opaskwayak Cree Nation elder Nathan McGillivary once again delivered wise words and a welcome prayer.

To bring any mine to production involves a long list of those who were key through a variety of stages. Thanking them is no small feat, but acknowledging their contributions is certainly one of the ways this is accomplished. Mr. Winton did this in thanking Steve West (now retired) head of the environment department, as well as environmental lawyer Sheryl Rosenberg for their tireless work on the environmental licensing and in putting the Reed Mine on the map. He praised them for the high standards that had been set and met at the site. Steve Polegato was also commended for bringing the mine in on time and budget.