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Iron Ore Seen Weak by Albanese as High-Cost Mines Hurting – by Jasmine Ng and Rishaad Salamat (Bloomberg News – September 29, 2014)

http://www.bloomberg.com/

Iron ore prices that retreated to a five-year low this month will remain weak for a sustained period as supply exceeds demand and China’s economy slows, according to Tom Albanese, former head of Rio Tinto Group.

High-cost producers are facing a “pain point” at prices of about $80 a metric ton, Albanese, chief executive officer of London-based Vedanta Resources Plc (VED), said in interviews with Bloomberg Television and a reporter today. While low-cost producers would still be able to make good money in iron ore, there will be closures of higher-cost mines over time, he said.

The raw material lost 42 percent this year as Rio Tinto and BHP Billiton Ltd. (BHP) expanded supplies, pushing the market into a glut just as demand growth slowed in China. Australia’s state forecaster cut its price estimates for this year and 2015 last week and predicted further closures of high-cost producers. Iron ore is heading for “pitiless pricing” on the expansions by major miners, according to Credit Suisse Group AG.

“At $80, the prices are at a pain point for many higher-cost producers,” said Albanese, who headed Rio from 2007 to 2013. “In this environment, you now have supply probably in excess of demand. It doesn’t take much to drive prices lower.”

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Time to buy uranium? The best ways to play it – by Brenda Bouw (Globe and Mail – September 29, 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.

Patience could finally start to pay off for investors waiting for a revival of the uranium market that imploded in the aftermath of Japan’s nuclear disaster in 2011.

After the spot price hit a nine-year low of $28 (U.S.) this spring on oversupply concerns, dragging uranium equities down with it, many investors believe the commodity used to fuel nuclear power plants has finally hit bottom, as the demand picture brightens.

The price has risen about 30 per cent in recent weeks, to $36.50, driven by additional U.S. and European sanctions against Russia, a major uranium supplier, in its conflict with Ukraine. That threatens to put pressure on the global uranium supply, alongside a recent two-week strike at Cameco Corp.’s McArthur River and Key Lake operations in Saskatchewan.

Meantime, Japan is readying the restart of its nuclear program, while China continues its aggressive nuclear plant build-out as part of its strategy to cut pollution by developing cleaner energy sources.

“I think the worst is behind us in the uranium space,” said BMO Nesbitt Burns analyst Edward Sterck. While he doesn’t expect a big rally in uranium and is neutral on the overall sector right now, Mr. Sterck sees investors slowly returning to the space.

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David Black faces skepticism over West Coast refinery – by Brent Jang (Globe and Mail – September 29, 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.

VANCOUVER — David Black is undeterred by skeptics and insists his vision for an export refinery makes sense for British Columbia’s energy market and Alberta’s oil sands.

For the past two years, the B.C. newspaper publisher has been investing his own money to get the ball rolling on Kitimat Clean Ltd., an ambitious project that aims to turn bitumen from the oil sands into refined products, such as gasoline, for shipping in tankers to Asian energy buyers.

“There is money to be made, but I got into this because I want to reduce the environmental risk,” the founder and chairman of Black Press Group Ltd. said in an interview from Victoria. The risk that he is referring to is the fear of a massive oil spill from tankers off the West Coast, a concern that is shared by First Nations in British Columbia.

If a tanker hauling gasoline were to leak in the waters near Kitimat, B.C., it will be easier to contain and clean the spill because the fuel won’t sink to the bottom of the ocean like bitumen would, Mr. Black argues.

His venture carries a hefty $32-billion price tag – $21-billion for the refinery in Kitimat, $8-billion for the pipeline and $3-billion on other infrastructure and a tanker fleet.

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New wave of diamond fever sweeps Northwest Territories; Prima Diamonds lands prime real estate (Mining and Exploration – September 2014)

http://www.miningandexploration.ca/

Diamond deposits, in the words of one senior geologist, are like pigeons. Where you find one, you’re likely to find an entire flock.

That’s the guiding logic behind a new wave of diamond mine development and claim staking in the Slave Craton in Northwest Territories. The NWT already serves as host to some of the world’s richest diamond mines, starting with Ekati and Diavik, followed by Snap Lake, all in the central corridor of the Slave Craton.

Next to follow is the Gahcho Kué Diamond Project southeast of the prolific Ekati and Diavik diamond mines. When it begins production in 2016, Gahcho Kué is reputed to become one of the largest and richest new diamond mines in the world. This $700 million project has a combined probable mineral reserve estimated at 55.5 million contained carats. De Beers Canada owns 51 per cent of Gahcho Kué and is the operator of the proposed mine. Mountain Province Diamonds, which discovered the Gahcho Kué diamond resource, owns 49 per cent.

Next to Gahcho Kué is the Kennady North Project with four confirmed diamond pipes. Two of the pipes returned diamond sample grades two to three times greater per tonne than Gahcho Kué, as reported by the company.

Circling in the vicinity of Gahcho Kué are projects led by successful veterans of the original 1990’s Canadian diamond rush: Randy Turner, CEO of Canterra Minerals; Buddy Doyle, exploration director and vice-president of Margaret Lake; and Patrick Evans, president and CEO of Kennady Diamonds.

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Mining the legacy of Genghis Khan – by Dave Tacon (Sydney Morning Herald – September 29, 2014)

http://www.smh.com.au/

It’s more than 800 years since Genghis Khan and his Mongol horde galloped out of central Asia, but today Khan looms large in the Mongolian capital Ulaanbaatar. He is the face of commerce emblazoned on bank notes and multiple brands of vodka. There is even a Grand Khan Irish Pub.

From the steps of parliament, a statue of Khan glares down from a bronze throne. On the banks of the Tuul River, 54 kilometres east of the city, he sits mounted on the world’s largest steel horse, one hand grasping a golden whip.

Under Khan’s advance, all those centuries ago, cities fell, east and west, their civilian populations put to the sword. At his peak, Khan ruled a quarter of the world’s population. Only the Black Death halted his men and heralded his empire’s gradual decline, which culminated in the humiliation of Mongolia’s annexation by Russia in 1783.

Mongolia emerged from the 1991 collapse of the Soviet Union a dusty backwater, but with its culture mostly intact, isolated by a national language spoken only by its own people and a population of around 2.5 million. The once mighty empire was now sandwiched between two dominant neighbours, Russia and China, with combined populations almost 500 times their own.

Still, the last 20 years have seen a meteoric rise in the fortunes of Mongolia. The country is experiencing its most profound social and economic changes since Khan’s reign.

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India turns to nuclear as energy crisis deepens – by Aditya Phatak (Phys.org – September 28, 2014)

http://phys.org/

India’s new prime minister is turning to nuclear energy to ease a power crisis made worse by the cancellation of hundreds of coal mining permits, but he faces scepticism both at home and abroad.

Energy-starved India relies on coal to produce two thirds of its electricity, but power blackouts are common and demand is rising quickly as the economy and middle class expand.

On Wednesday, the Supreme Court cancelled over 200 coal mining permits because the licensing process was deemed illegal, making the need for alternative energy sources yet more pressing.

Prime Minister Narendra Modi has made nuclear a priority as he seeks to fulfil his campaign pledge to kickstart the country’s flagging economy.

But to succeed, he will need to convince a sceptical public that nuclear is safe, and dispel foreign proliferation concerns to secure the imports of uranium and technology that India needs to produce atomic energy.

“Concerns of power disruptions raised post the Supreme Court judgement on the coal issue show how reliance on single source of energy is unhealthy,” said Amit Bhandari, energy and environment fellow at Gateway House, a Mumbai-based think-tank.

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Money for mine researchers in Sudbury – by Carol Mulligan (Sudbury Star – September 27, 2014)

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

Two Sudbury research organizations received almost $900,000 in funding from the Northern Ontario Heritage Fund Corp. on Friday for projects that will make mining safer for workers and more economically viable.

About $784,000 will go to the Centre for Excellence in Mining Innovation to help develop a mobile canopy system that will make it safer for workers to tunnel into ore bodies and will almost triple the rate at which they do it.

Another $100,000 was announced for a diesel emission reductions research project being conducted by the Canadian Mining Industry Research Organization (CAMIRO) to test filters to protect miners from diesel fumes underground.

The funding was announced by Premier Kathleen Wynne in the Vale Cavern at Science North. Wynne said the two projects will help create and retain as many as 500 jobs, and pave the way for new mining operations that will create many more jobs in the long term.

She made the announcement the day after convening a full cabinet meeting at the Willet Green Miller Centre and attending at $1,750-a-plate dinner to boost the coffers of the Ontario Liberal Fund.

Wynne also attended a Franco-Ontarian Day ceremony on Thursday and jogged early Friday morning in the fog along the Jim Gordon Boardwalk, leading a group of students from Laurentian University, many of them members of the Young Liberals Association.

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For Miners, Increasing Risk on a Mountain at the Heart of Bolivia’s Identity – by William Neumansept (New York Times – September 16, 2014)

http://www.nytimes.com/

POTOSÍ, Bolivia — The silver in this mountain helped finance the Spanish empire. It created vast fortunes for some and misery for many more. It fueled the early growth of European capitalism, setting the stage for the modern era.

But now, after centuries of hauling out its riches, miners working near the peak have clawed away so much of the interior of the mountain that it is caving in from the top down.

At the peak of this historic mountain — known as Cerro Rico, or Rich Hill, standing at more than 15,600 feet — a giant sinkhole has opened, a jagged mouth in the blood-red rock. In June, Unesco warned that the mountain, depicted at the center of Bolivia’s flag, faced a critical risk of collapse at its summit.

“Since the internal structure of the upper part of the Cerro Rico is severely weakened due to continuous exploitation,” it said, “there is a significant risk that miners could die from collapses inside the tunnels.”

In July, the government said that it planned to shut down mines above 14,435 feet, where about 1,500 miners work in conditions that can range from rudimentary to brutal. Many thousands of miners work in mines farther down the mountain.

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[Mining Documentary] The golden people of Baker Lake (2012) – produced by Ivor Barr (Copyright IDNR-TV)

IDNR-TV Natural Resources television

http://www.agnicoeagle.com/en/

The Meadowbank mine is located in the Kivalliq region of Nunavut, about 2,600 kilometres northwest of Toronto. It is 300 kilometres west of Hudson Bay and 110 kilometres by road north of Baker Lake, the nearest community. Meadowbank was Agnico Eagle’s largest gold producer in 2014, with 1.8 million ounces of gold in proven and probable reserves* (17 million tonnes at 3.2 g/t). The mine is located on a very large property that has exploration potential for gold.

Meadowbank depends on the annual, warm-weather sealift by barge from Hudson Bay to Baker Lake for transportation of bulk supplies and heavy equipment. An all-weather road links Baker Lake to the site. An on-site airstrip is used for shipping food and goods and for transporting employees, who work on a fly-in, fly-out basis.

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[Mining Documentary] Troilus: A Mining Heritage Story (2010) – produced by Ivor Barr (Copyright IDNR-TV)

IDNR-TV Natural Resources television Troilus is a closed open pit gold, copper and silver mine located in northwestern Quebec, 120 km from the Cree community of Mistissini and 175 km from Chibougamau. The mine was in operation from 1996 to 2010 and was owned by Inmet Mining Corporation which was subsequently taken over by First …

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Vale, nickel giant, gets into the bee business in Sudbury, Ont. – by Markus Schwabe (CBC News Sudbury – September 26, 2014)

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

Bees help enhance the seeding of flowering plants, ‘which helps with the biodiversity of our city’

Mining company Vale is hoping honey bees will encourage its re-vegetation project in Sudbury. For decades, nickel producer Vale (formerly INCO) dumped tons of molten slag around its refinery in Copper Cliff. The by-product of the nickel-smelting process accumulated until black mountains were formed.

In 2006, Vale embarked on a $10 million re-vegetation project to grade the landscape, cap the slag with soil, then scatter the ground with clover, grass and wildflower seeds. Trees were also planted.

This year Vale contacted the services of a retired Vale employee, Wayne Tonelli, to raise honeybees on the property. “With all the wildflowers, it was thought to promote pollination and help the re-vegetation process,” the Vale superintendent of decommissioning and reclamation said.

Seven hives are now buzzing with more than 350,000 bees. The hives are situated in an old utility trailer owned by Vale, which allows for the bees to enter, but keeps predators likes bears out.

Dr. Jennifer Babin-Fenske of Earthcare Sudbury supports in the initiative.

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NEWS RELEASE: DIRT WINNERS ANNOUNCED AT RED CARPET EVENT CELEBRATING STUDENTS’ SUCCESS – Friday 26 September 2014

 

http://www.sacome.org.au/

The South Australian Chamber of Mines and Energy (SACOME) is proud to announce the student winners of its unique initiative Dirt TV, following a high profile Awards Ceremony at the National Wine Centre in Adelaide last night.

Sweeping the prize pool was Mining: So good its nearly a crime, by James Haskard and Lachlan Blake, taking out both the BHP Billiton Best Overall Video Award and also the SACOME People’s Choice Award – receiving 30% of total public votes.

Jason Kuchel, Chief Executive of SACOME said “Mining: So good its nearly a crime is a fantastic example of what can be created without high tech equipment, the need for special settings or effects but simply using a clever idea, excellent script and fantastic execution.”

“James and Lachlan rightly took away $6,000 for their efforts, plus another $500 for their school, Concordia College.”

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NEWS RELEASE: The First Nations in Quebec stand united in their opposition to uranium mining

WENDAKE, QC, Sept. 25, 2014 /CNW Telbec/ – At a workshop on uranium development hosted by the Assembly of First Nations Quebec-Labrador (AFNQL) today, First Nations from across the province reaffirmed their opposition to uranium development on their territories and throughout Quebec. The workshop brought together representatives of First Nations from across Quebec to discuss the future of uranium development in Quebec.

In March 2013, the AFNQL passed a resolution inviting its members to voice their opposition to uranium development and to declare a global rejection of the exploration and exploitation of uranium on all First Nation territories. This followed the resolution adopted by the Grand Council of the Crees in August 2012 declaring a permanent moratorium on uranium development in Cree territory.

“The exploration and exploitation of uranium constitute major and irreversible threats to our population, our territories and the resources they contain”, said Chief Terence McBride, the Chief of Timiskaming First Nation and member of the Interim Chiefs Committee for the AFNQL. “As First Nations, we have a sacred duty to protect our territories and ensure the sustainable development of our natural resources.”

“Our experience here today has clearly demonstrated that the First Nations of Quebec and Labrador are united in our opposition to uranium development in our territories,” continued Grand Chief Matthew Coon Come of the Cree Nation. “We strongly encourage all the First Nations and citizens in Quebec to clearly and publicly express their opposition to uranium development.”

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AngloGold sets about ‘new’ old strategy – by David McKay (MiningMx.com – September 25, 2014)

http://www.miningmx.com/

[miningmx.com] – THE flight from gold amid expectations of rising rates and a stronger dollar have to some extent masked the impact of AngloGold Ashanti’s aborted rights issue and de-merger strategy on the gold firm’s share price.

The share was already under pressure from September 1 losing about 7% over seven days as the dollar gold price sank – now down to its lowest levels for the calendar year . On September 9, however, it shed 15% as investors took a dim view of the $2.1bn rights issue proposal.

It regained ground by September 15 when the de-merger was formally rejected by management, but has since fallen another 4% as the pressure on it and all other South African gold stocks has intensified.

Not even Harmony Gold or Sibanye Gold, which have seen the rand gold price strengthen whilst the dollar gold price has fallen 6% this month, have been immune from the selling.

“I don’t anyone thinks the gold sector has been over-bought, there is just negativity about the outlook with most people expecting a stronger dollar, with rising interest rates but with no real inflationary pressures,” an analyst said. “Investors are obviously concerned about cash flows and future impairments. And there are quite a lot of redemptions from funds,” he said.

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Renewed Plan Nord to be announced next week – by Andy Blatchford (CTV News Montreal – September 26, 2014)

http://montreal.ctvnews.ca/

The Canadian Press – MONTREAL — More than 500 scientists from Canada and around the world are urging Quebec’s premier to stick to his pledge to preserve a huge section of the province’s north as part of an ambitious development plan.

Philippe Couillard has been promising to breathe new life into the Liberals’ multibillion-dollar northern development project since the party regained power earlier this year.

For years, the Liberals have touted the “Plan Nord” as a way to create thousands of jobs through energy development, mining and tourism in Quebec’s north, on an area about twice the size of France.

But the proposal, first unveiled in 2011, caught the attention of the international scientific community for its other key goal: to protect half of that boreal wilderness from industrial development.

On Friday, a group of international scientists will send a letter to Couillard, encouraging him to move forward on a sustainable-development and conservation project they believe could “serve as a model for the rest of the world.”

The scientists are also calling on Couillard to ensure aboriginal and local communities in the remote region are partners in the project.

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