Republic of Mining

UPDATE 2-Eramet delays Indonesia mine, backs ban to help nickel – by Gus Trompiz (Reuters India – February 21, 2014)

February 21, 2014

http://in.reuters.com/

PARIS, Feb 21 (Reuters) – French mining and metals company Eramet postponed its flagship nickel mine project in Indonesia on Friday citing depressed prices which it said would find support from the country’s ban on unrefined mineral exports.

Benchmark prices of nickel, mainly used in stainless steel, languished at four-year lows for much of 2013 due to global oversupply, leaving many producers operating at a loss.

Indonesia, the world’s largest exporter of nickel ore, last month went ahead with a ban on shipments of unrefined metals, including the ore, boosting international prices on prospects that the global surplus would be curbed.

“We hope that this ban is going to be kept firmly in place,” chairman and chief executive Patrick Buffet said at a presentation of Eramet’s 2013 results.

“This is the factor that could bring a recovery in the nickel market within a reasonable period.” Uncertainty over policy ahead of parliamentary and presidential elections this year had contributed to Eramet’s decision to delay a final investment decision on the Weda Bay mining project, Buffet said.

Where the world’s mineral industry meets – by Staff (MiningWeekly.com – February 21, 2014)

February 21, 2014

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

It has been referred to as the Oscars or the Super Bowl of the mineral exploration and mining and exploration sector – the annual Prospectors & Developers Association of Canada’s (PDAC) Convention, the mineral industry’s most popular networking and educational event.

Now in its eighty-second year, the convention attracts investors, analysts, mining executives, geologists, prospectors and international government delegations from all over the globe.

In 2013, 25% of convention delegates were international – reflecting the evolution of the convention from a national event into an international one. Outside of Canada, the largest number of attendees in 2013 came from the US, Australia, Peru, Mexico and England.

“The PDAC Convention has really hit its stride in terms of its place in the global mineral industry,” says PDAC president Glenn Nolan. “In the early 1990s, the PDAC began to build up an international reputation. Since then, the PDAC Convention has come to be known as the global networking opportunity for the mineral exploration and development industry.”

Quebec Aims to Save Head Office Jobs by Blocking Bids – by Frederic Tomesco (Bloomberg News – February 21, 2014)

February 21, 2014

http://www.bloomberg.com/

Quebec will move to shield businesses from hostile takeovers and buy direct stakes in oil and mining projects to nurture homegrown companies, Finance Minister Nicolas Marceau said.

Marceau proposed amendments to the province’s Business Corporations Act that would give public companies “adequate means of defense” against unsolicited bids. The measures are aimed at preserving head-office jobs that help generate C$5 billion ($4.5 billion) in economic activity, according to Marceau’s budget released yesterday in Quebec City.

Quebec’s moves come as Montreal-based Osisko Mining Corp. (OSK) seeks alternatives to a C$2.96 billion hostile bid from Goldcorp Inc. (G) that it rejected as too low. U.S. retailer Lowe’s Cos. (LOW) dropped its plan for an unsolicited takeover of Quebec rival Rona Inc. (RON) in 2012 after the proposal sparked opposition from provincial politicians and investors such as the Caisse de Depot et Placement du Quebec.

“Being masters and prosperous in our own house also means protecting the head offices of Quebec businesses,” Marceau said, according to the text of a speech to the Quebec legislature. “The presence of head offices in Quebec is both a major source of wealth and a strategic factor in economic-development decisions.”

Study shows Ring could generate $25 billion benefit – by Caro Muligan (Sudbury Star – February 21, 2014)

February 21, 2014

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

A new study released by the Ontario Chamber of Commerce, Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire, shows the mining development could generate more than $25 billion across numerous sectors in Ontario by 2047.

That would include $2.7 billion in revenues for the financial services sector and $1.2 billion for the wholesale and retail trade sectors.

“Our study makes it clear that the short-and long-term economic impacts of the Ring of Fire extend far beyond mining,” says Allan O’Dette, President and CEO of the Ontario Chamber of Commerce. “It’s time to broaden the Ring of Fire conversation to include all of Ontario, not just the Far North.”

“The Ring of Fire will generate an estimated $6.2 billion for Ontario’s mining sector in the first 10 years of its development, with much of this mining activity being concentrated in Northern Ontario,” says David Boyce, Chair of the Board, Greater Sudbury Chamber of Commerce. “Development of the Ring of Fire is important to all Ontarians, regardless of geography. The positive impacts will be felt across the province in the form of increased GDP, job creation, and government revenue.”

Environmental watchdog urges rejection of Sept-Îles mining project – by Michelle Lalonde (Montreal Gazette – February 19, 2014)

February 21, 2014

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

Quebec’s environmental watchdog, the BAPE, has recommended the provincial environment minister not approve a controversial phosphate rock mine in Sept-Îles “in its current form.”

The report from the Bureau d’audiences publiques sur l’environnement, made public on Wednesday, says the mining company, Mine Arnaud Inc., has not provided enough convincing evidence that its proposed open pit mine won’t contaminate nearby waterways or cause landslides.

“This is only the second time in 30 years that the BAPE has rejected a mining project for environmental reasons,” said Ugo Lapointe of Québec meilleure mine, a coalition of groups critical of Quebec’s mining industry. “It’s a very harsh judgment on this project.”

The Arnaud Mine, a joint project between Investissement Québec and a Norwegian firm called Yara international ASA, would produce apatite, a type of phosphate rock used to make agricultural fertilizer. Mine proponents said it would directly create about 330 permanent jobs, and another 425 indirectly, and otherwise stimulate the economy of the Sept-Îles region during the next 23 years.

At almost a kilometre wide, 3.7 kms long, and 240 metres deep, the mine would be the largest open pit mine in an inhabited area in Quebec.

Canada: Disclosure Of Oil And Gas & Aboriginal Payments Uncertain, Despite Release Of Recommendations On Mandatory Disclosure Of Payments From Canadian Mining Companies To Governments – by Julie Abouchar (Mondaq.com – February 21, 2014)

February 21, 2014

http://www.mondaq.com/

Willms & Shier Environmental Lawyers LLP

Companies and Aboriginal communities negotiating resource agreements should note the Resource Revenue Transparency Working Group’s January 16, 2014 release of its Recommendations on Mandatory Disclosure of Payments from Canadian Mining Companies to Governments. The Recommendations stem from Canada’s June 2013 commitment to enhance transparency in the extractive sector.

The Working Group is comprised of representatives from the Mining Association of Canada, the Prospectors & Developers Association of Canada (PDAC), Publish What You Pay Canada and the Revenue Watch Institute. The Working Group’s transparency initiative is widely supported by Canadian mining companies.

Companies and Aboriginal communities want to know how the reporting would work and whether payments under resource agreements/IBAs will come under the purview of any Canadian requirements. The recommendations do not currently include oil and gas or Aboriginal payments. However, such payments could follow in a second phase of the project, dubbed “transparency 2.0” by Working Group member and PDAC Executive Director, Ross Gallinger, at an Ontario Bar Association address on February 19, 2014. To take effect, the recommendations must next be adopted, following discussions with provincial securities commissions and the provincial finance ministries. Presumably, Aboriginal communities would be consulted about making IBA payments subject to reporting.

COLUMN-Gold bulls hostage to uncertain China, India – by Clyde Russell (Reuters India – February 20, 2014)

February 20, 2014

http://in.reuters.com/

LAUNCESTON, Australia, Feb 20 (Reuters) – Gold bulls have been tempted out of hiding by bullion’s strong start to the year, but the basis for optimism looks unsteady and largely hostage to what happens in China and India.

Spot gold has gained 8.8 percent so far this year to end Feb. 19 at $1,311.32 an ounce, recovering almost a quarter of its 28-percent loss in 2013.

The World Gold Council (WGC), which represents producers, is unsurprisingly upbeat, with Marcus Grubb, the managing director for investment, saying 2014 is going to be “much better” for gold investment and returns will be positive. Notwithstanding that the council’s job is to portray gold in a positive light, it’s worth looking at why it thinks this is the case.

It basically comes down to three factors, ongoing strong demand from China, a recovery in Indian imports as the government relaxes restrictions and an improvement in investment demand, reversing 2013’s huge outflows from exchange-traded funds (ETFs).

China became the world’s top gold consumer last year, overtaking India, with demand rising 32 percent to 1,065.8 tonnes, according to the council’s Gold Demand Trends report on Feb. 18.

Award-winning golf resort was once a Florida phosphate mine – by Tamara Lush (Waterloo Record – February 20, 2014)

February 20, 2014

http://www.therecord.com/waterlooregion/

BOWLING GREEN, Fla. — What do you do with 15 million cubic yards of sand? If you’re Mosaic, one of the world’s largest phosphate companies, you build two award-winning golf courses. And a spa. And an edgy, modern hotel.

In the middle of Central Florida, far from any theme park or beach. Streamsong Resort opened its golf courses and clubhouse in late 2012, and last month, it unveiled its 216-room lodge. It’s located in the tiny community of Bowling Green, which is closer in DNA to cattle ranches than Disney.

In fact, Streamsong is difficult to find; the journey from the Tampa Bay area included a turn at a ramshackle BBQ restaurant and a drive past several cows. A medium-sized metal sign with the resort’s name is the only thing signalling that one has arrived on the property.

Visitors are first greeted by the sight of large, grass covered dunes and blue lakes, and instead of the flat landscape of Central Florida, there are hills and dips and yes, some green of the golf courses. A modern-looking hotel, with its slightly curved exterior, is nestled near a lake.

The whole landscape is nothing like anything in Florida, possibly because it’s not groomed and plucked and patterned with palm trees. The property is oddly wild and rough, yet Zen-like and tranquil.

Emerging markets seen as an opportunity again – by Paul Brent (Globe and Mail – February 20, 2014)

February 20, 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.

After a bleak period, hopeful signs on horizon for some of the world’s budding economies

Emerging markets have been hammered by recent tapering of the U.S. Federal Reserve’s quantitative easing program, which has hit both currencies and equity valuations as investor money has sloshed back into the developed world, specifically the U.S. markets.

Savvy investors need to ask how long this shift will last given some pretty strong fundamentals for select economies in the developing world and some signs that the vaunted U.S. recovery is not as strong as expected.

Emerging markets investment firm Ashmore Investment Management argued last week that the groundwork, in the form of five conditions, has been laid for an emerging markets turnaround.

The so-called hot money of retail investors that poured into those markets in 2012 and much of 2013 has left (at a loss, mostly). The firm also expects emerging markets economies will pick up this year, achieving an average 5-per-cent growth rate.

China accuses mining tycoon of leading criminal gang – by Gillian Wong (Globe and Mail – February 20, 2014)

February 20, 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.

BEIJING — The Associated Press – Authorities on Thursday accused a Chinese mining tycoon of running a vast mafia that blackmailed, beat and gunned down rivals in daytime attacks, travelled in Rolls Royces and Ferraris and fostered ties to prosecutors and police with drug-fueled parties.

The high-level investigation centring on Liu Han, the former multimillionaire chairman of energy conglomerate Sichuan Hanlong Group with stakes in Australian and U.S. miners, and his brother Liu Wei and 34 associates has exposed ties between organized crime and Chinese officialdom.

The gang bust in southwestern China appears to be part of a sprawling shakeup of Sichuan province that has ensnared senior politicians and influential businessmen in a wide-ranging corruption crackdown launched by President Xi Jinping. Many of the Sichuan cases are believed linked to Zhou Yongkang, a former security czar who until recently was one of the country’s most powerful leaders, and is reportedly himself the subject of a graft investigation.

How Mobile is Transforming the Energy and Natural-Resources Sector: The New Canary in the Coal Mine – by Jon Hurdle, Mark Svenvold, Sarah Wachter (The Economist Intelligence Unit – February 2014)

February 20, 2014

http://www.economistinsights.com/home

For the full report, click here: http://www.economistinsights.com/sites/default/files/EIU%20New%20canary%20in%20the%20mine%20Feb2014.pdf

Introduction

In the historically hazardous mining industry, a new generation of mobile technologies are improving health and safety, while boosting productivity, by changing how people work in mines and plants and improving communications—often without reliance on vulnerable wireless networks.

The increasing use of devices such as handhelds, laptops and tablets is promoting the automation of work processes, speeding maintenance, aiding inspections and providing workers with step-by-step procedures that are designed to maximise production and prevent accidents. Mine operators are winning these gains even though they must operate underground or at remote surface mines, where wireless connections are often limited if available at all.

Workers or supervisors following procedures loaded onto mobile devices are less dependent on instructions received via traditional communications networks such as tracking and telemetry systems, which—whether wired or wireless—are vulnerable to rock falls, explosions or other underground emergencies.

Exciting new gold mechanisation achieving more success – AngloGold – by Martin Creamer (MiningWeekly.com – February 19, 2014)

February 20, 2014

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

JOHANNESBURG (miningweekly.com) – The demonstrably successful new AngloGold Ashanti gold-mining technology has produced 40 kg of gold from ore with enormously valuable gold grades of more than 200 g of gold for every ton mined.

The South African Technology, as it has been called, has so far mined only in no-go areas, which have been bypassed for conventional mining on the grounds of being excessively hazardous.

Revealing this after presenting a magnificent set of results with every metric excelling with the exception of the lagging gold price, AngloGold Ashanti CEO Srinivasan (Venkat) Venkatakrishnan told Mining Weekly Online that the company was now rolling out the technology on five sites using locally produced raise-boring equipment (also see attached video).

“We continue to invest in the South African technology piece,” he said, describing it as the “single key we have to improve productivity, which is the answer to a number of issues within the South African mining industry”.

UPDATE 2-Vale may sell Brazil potash project on tax dispute -CEO (Reuters U.S. – February 19, 2014)

February 20, 2014

http://www.reuters.com/

BRASILIA, Feb 19 (Reuters) – Vale SA may sell a $4 billion potash fertilizer project in Brazil’s northeastern state of Sergipe if it is unable to reach a tax accord with municipal authorities, Chief Executive Officer Murilo Ferreira said on Wednesday.

Shareholders “cannot be subject to fiscal uncertainties” about the project Ferreira said during a hearing before a Senate committee in Brasilia. Vale, the world’s No. 3 mining company by market value, is the world’s largest iron ore producer and a growing fertilizer producer.

Vale plans to shut down its planning work at the site on Feb. 28 if there is no resolution, Ferreira said. Sergipe Governor Jackson Barreto said at the same hearing that the state will find a solution to the tax problem. The impasse stems from a battle between rival Sergipe towns Capala and Japaratuba over the location of the mine’s planned processing facility on their territory so they can reap the expected tax benefits.

“We won’t do anything to hurt the state, but lacking a political solution we’ll hire a bank to sell the project to somebody interested in developing it,” Ferreira said.

NEWS RELEASE: Ontario’s Ring of Fire Could Generate Tens of Billions of Dollars in Economic Activity and Thousands of Jobs in the Province, New Study Shows

February 20, 2014

Read Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire at http://www.occ.ca/portfolio/beneath-the-surface-uncovering-the-economic-potential-of-ontarios-ring-of-fire/

TORONTO, ON, FEB 20, 2014: A new report from the Ontario Chamber of Commerce reveals that Ontario’s Ring of Fire, the mineral resource-rich region in the James Bay Lowlands, will generate up to $9.4 billion in new economic activity over the first 10 years of operation and sustain 5,500 jobs annually.

According to the study, Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire, the mining development could generate more than $25 billion across numerous sectors in Ontario by 2047, including $2.7 billion in revenues for the financial services sector and $1.2 billion for the wholesale and retail trade sectors.

Mine safety group promises public meetings – by Carol Mulligan (Sudbury Star – February 20, 2014)

February 20, 2014

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

The first two meetings of the Mining Health, Safety and Prevention Review Advisory Group were held in private, but there will be ample opportunity for people to have their say about how to improve mine safety, says the head of the review.

George Gritziotis, Ontario’s chief prevention officer, said public consultations will be held in six mining communities — including Sudbury — and people can make submissions at those meetings, online, by fax and by mail.

Gritziotis was chosen by Labour Minister Yasir Naqvi to lead the group guiding a comprehensive mining safety review to be completed within a year.

It held its second meeting in Sudbury on Wednesday, at which members mapped how public consultation will be conducted, Gritziotis told reporters during the noon break of the group. “Our sense is we’re going to get nuggets out of these consultations that will help frame some of the work we’re doing going forward,” he said.