Republic of Mining

China and Russia’s US$400-billion natural gas deal ‘complicates’ new LNG projects – by Yadullah Hussain (National Post – May 22, 2014)

May 22, 2014

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

Russia’s US$400-billion natural gas deal strengthens Vladimir Putin’s hand and gives China greater leverage to secure better pricing deals with Canadian and other exporters looking to capture a slice of the Asian market.

“This is the biggest contract in the history of the gas sector of the former USSR,” said Mr.Putin, after state-controlled Gazprom signed a deal with China National Petroleum Corp (CNPC) Wednesday.

The deal, a decade in the making, is a coup for Mr. Putin who is keen to demonstrate his ability to find alternative markets as his primary energy customers in Europe are seeking new supply sources in the aftermath of the showdown in Ukraine.

The deal also gives Russia a strategic market share in the world’s fastest growing major natural gas market. The International Energy Agency expects China’s natural gas demand to rise 6% per year through 2035.

While details of the deal were not disclosed, analysts believe Russia secured the 30-year deal to supply 38 billion cubic metres of natural gas per annum via pipeline at US$10 per million cubic feet, compared to the US$14-US$15 per mcf for Asian gas imports.

A debate in, for the North – Editorial (Thunder Bay Chronicle-Journal – May 21, 2014)

May 22, 2014

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Two weeks after it was issued, and with one week left before the event, there is still no word whether Progressive Conservative Leader Tim Hudak will accept an invitation to attend a May 26 debate on Northern Ontario issues. Liberal Premier Kathleen Wynne and NDP Leader Andrea Horwath have accepted the Northwestern Ontario Municipal Association invitation to Thunder Bay May 26. On Tuesday, Hudak’s campaign office called it “unfortunate” that Wynne, Horwath “or anybody else” would publicly confirm a date before confirming it with the Tories who are seeking alternate dates to accommodate Hudak’s schedule.

Changing the date now would simply cause the other two leaders to have to juggle their schedules. NOMA says it offered a selection of dates and when nobody responded by May 7, it set May 26. That’s the date that Hudak has to make.
Last election it was then Liberal premier Dalton McGuinty who opted to forego a northern leaders debate.

This time, Wynne challenged her two opponents to a northern debate in advance of her May 1 budget in case it was defeated. Horwath accepted while Hudak demurred. We find it surprising that Hudak can apparently not make himself available next Monday. What is so important that he can’t be here?

There is no shortage of things to talk about. What does Wynne have to say about all reasons for the delay in Ring of Fire mining development and precisely what will all leaders do to hasten the project from the day they take office?

Can India surpass China as Asia’s fastest growing large economy? – Gwynne Dyer (Straight.com – May 22, 2014)

May 22, 2014

http://www.straight.com/

SOON AFTER WINNING an absolute majority in the Indian parliamentary elections, prime minister-elect Narendra Modi promised “to make the 21st century India’s century”. If he can avoid tripping over his own ideology, he might just succeed.

“India’s century” is a misleading phrase, of course, because no country gets to own a whole century. It wasn’t ever really going to be “China’s century” either, although China is a huge country whose economy has grown amazingly fast over the past three decades. What Modi meant was that India, the other huge Asian country, may soon take China’s place as the fastest growing large economy—and it might even surpass China economically, in the end.

At first glance this seems unlikely. India’s GDP is currently less than a quarter of China’s although the two countries are quite close in population (China 1.36 billion, India 1.29 billion). Moreover, the Chinese economy’s growth rate last year, although well down from its peak years, was still 7.7 percent, while India’s grew at only 4.4 percent.

But China’s growth rate is bound to fall further for purely demographic reasons. Due partly to three decades of the one-child-per-family policy, the size of its workforce is already starting to decline.

NEWS RELEASE: Wood Mackenzie: Railroads to struggle with summer US coal demand

May 22, 2014

Cold weather and higher gas prices cause upward pressure on railroad capacity and coal production

HOUSTON/EDINBURGH 21st May 2014 – With demand for US coal higher than in recent years due to record setting cold weather and high natural gas prices, railroads are struggling to ship required amounts of bulk fuel says Wood Mackenzie in a new report titled “Can railroads meet summer US coal demand?”.

The harsh, snowy winter slowed down performance at railroad systems already contending with a record grain harvest and higher demand across various commodities in 2013 into 2014. Ultimately, the impact on coal prices will depend on mine and rail capacity.

“Even if the railroad capacity problem is fixed, mine capacity may not be able to grow fast enough to meet demand,” notes Matt Preston, Principal Analyst, North America Thermal Coal Markets for Wood Mackenzie.

With stockpiles significantly depleted during winter as a result of railroad performance issues and the railway networks likely inability to increase the rate of deliveries much beyond 2013 levels, there is a high probability coal producing units relying on western coal will not be able to increase their output despite higher demand.

Wynne, Hudak at odds over how to help Ontario auto industry (CBC News Canada – May 21, 2014)

May 22, 2014

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

Liberals want to ‘partner’ with business, PCs want to lower taxes, hydro rates

Ontario Liberal Leader Kathleen Wynne and Progressive Conservative Leader Tim Hudak are offering contrasting views on how best to help the auto industry prosper in the province.

Wynne was in Windsor on Wednesday, touting the importance of Ontario’s auto sector. She promised her party would to continue to work with and invest in auto manufacturers and suppliers should it form the next government. Ontarians head to the polls June 12.

“The auto sector is fundamental to this region but it’s also fundamental to Ontario,” Wynne said, speaking at Omega Tool, an auto parts supplier. Omega was previously a recipient of $440,000 in provincial money. The grant was part of a $4.5-million expansion. Dave Cecchin, president of Omega, said the grant helped create 10 “highly skilled jobs.”

“There is a direct connection between government and business … and the creation of jobs,” Wynne said. Wynne claimed that the Liberal government’s $4.8-billion investment in GM and Chrysler during the 2008 recession saved 95,000 jobs.

Opinion: Mining matters to us all – by Karina Brino (Vancouver Sun – May 21, 2014)

May 21, 2014

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

Industry employs more than 10,000 people, delivered a half-billion dollars to government in 2013

Karina Briño is president & CEO of the Mining Association of British Columbia.

Much has changed since the first B.C. Mining Week more than 25 years ago. B.C. has grown to become one of the leading economies of the Pacific Rim. Vancouver is a thriving, multicultural metropolis and the Canadian gateway to Asia. A province that once relied on fisheries and forestry to employ thousands and support whole communities now looks to mineral extraction and natural gas for the same benefits.

Established in 1901, the Mining Association of B.C. is one of B.C.’s oldest associations. It aims to support a strong and vibrant mining and mineral processing industry, one that will continue to create wealth and opportunity for all British Columbians for generations to come. The contributions of the industry extend far beyond the sites and communities in which our members operate. The industry touches the lives of all British Columbians in one form or another.

In 2013, the industry generated $8.5 billion in revenues, directly employed 10,720 people, and made payments of $511 million to government — money that is used to fund hospitals, schools, roads, bridges, and other public services that people across the province depend on daily.

Editorial: Aboriginals can’t veto everything, despite best intentions (Vancouver Sun – May 21, 2014)

May 21, 2014

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

United Nations pipeline report goes too far

United Nations special rapporteur James Anaya crossed a line recently between promoting the cause of Aboriginals in this country and unhelpfully interfering in Canadian politics.

Anaya, the rapporteur on the rights of indigenous people, a law professor at the University of Arizona specializing in human rights, is one of 37 unpaid UN rapporteurs who regularly examine and publicly report on human rights problems around the world.

With so many civil wars, terror activities and natural disasters rampant around the globe, it is hard to believe human rights conditions in highly developed, democratic countries would be a priority for the United Nations. Canada already is so aware of the Aboriginals’ plight, and the courts so attentive to their aspirations.

This country is taking measures to address past wrongs, with financial redress and a truth-and-reconciliation process. The federal government is advancing legislation aimed at improving on-reserve governance and education for Aboriginal youth. It also is taking measures to improve water quality on reserves.

COLUMN – Modi the new hope for gold, but may disappoint – by Clyde Russell (Reuters India – May 21, 2014)

May 21, 2014

http://in.reuters.com/

LAUNCESTON, Australia – (Reuters) – Gold bulls tend to flit from one thing to the next in their search for a reason for the precious metal to rally, with the latest hope being Narendra Modi’s election victory in India.

The reasoning appears solid enough. Modi’s pro-business Bharatiya Janata Party is likely to roll back some of the tough measures taken by the former government to curtail gold imports as part of efforts to lower India’s current account deficit.

Gold is India’s second-biggest import by value behind crude oil and the former government progressively raised the import duty to 10 percent and imposed a rule that 20 percent of gold shipped in must be re-exported as jewellery.

These measures, which gold bulls had largely dismissed as irrelevant to Indian demand, served to crunch imports, which started dropping sharply from the third quarter of last year.

Indian demand fell 26 percent to 190.3 tonnes in the first quarter of 2014 from the same period a year earlier, according to data from the World Gold Council (WGC).

This followed falls of 16 percent in the fourth quarter of 2013 and 32 percent in the third quarter of last year, declines which saw India surrender its status as the world’s top gold consumer to China.

PCs respond [Ontario election] – by Leith Dunick (tbnewswatch.com – May 21, 2014)

May 21, 2014

http://www.tbnewswatch.com/

THUNDER BAY — The Ontario Progressive Conservative party says it’s unfortunate organizers of the Northern Ontario leaders’ debate chose a date that worked for some parties, but not all.

In an unsigned release issued on Wednesday, party officials said they wanted leader Tim Hudak to participate, but the May 26 date OK’d by organizers conflicted with other campaign stops that couldn’t be altered.

“Given the important issues that face the North, it was our hope that there would have been an equal opportunity for all parties to communicate their plans for the North. We were led to believe there was a desire to have that comprehensive discussion,” the release states.

Both Liberal Leader Kathleen Wynne and NDP Leader Andrea Horwath accepted the May 26 invitation over the Victoria Day weekend. Hudak was a vocal critic in 2011 when then premier Dalton McGuinty was a no-show at the inaugural Northern leaders’ debate.

Hudak declines [Ontario election] debate – by Leith Dunick (tbnewswatch.com – May 20, 2014)

May 21, 2014

http://www.tbnewswatch.com/

THUNDER BAY – The Northern Ontario leaders’ debate will go ahead on May 26 without Conservative Leader Tim Hudak.

Hudak, who publicly chastised former premier Dalton McGuinty for a no-show at the same debate in 2011, informed debate organizers his campaign schedule won’t allow him to attend the one-hour event.

Both Liberal Leader Kathleen Wynne and NDP Leader Andrea Horwath accepted the invitation on the weekend. Iain Angus of the Northwestern Ontario Municipal Association said Tuesday organizers were hoping Hudak could find the time to take part in the debate, a lunch-hour affair at the Valhalla Inn.

Angus said prior to Hudak’s answer that he couldn’t understand why the Conservative leader couldn’t free up the time.

“The information we have is that (Hudak) has some schedules that have been locked down, which quite frankly surprises me, ” Angus said. “Given my long involvement in the political process, I know that most campaigns do not lock in more than a couple of days in advance.

NEWS RELEASE: Cue the third annual Vale Sudbury concert series

May 21, 2014

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Vale aims to launch its third annual Vale Concert Series on the right note this evening with East Coast blues singer and song writer Charlie A’Court as the featured performer. This is the first of five monthly concerts from May to September being held at the Grace Hartman Amphitheatre near Ramsey Lake. The start time for all events is 7 p.m. and while admission is free, donations to the Sudbury Food Bank are welcomed.

Vale announced the 2014 musical series on a high note with a $50,000 donation to the Sudbury Food Bank. Over the past two summers, the Vale Concert Series has raised $32,000 for the local food bank and collected more than 2,200 pounds of food.

The series also promotes Canadian musical culture by bringing a diverse range of musical talent to perform live for audiences in Sudbury. “Vale is proud to host what is quickly becoming a great tradition in our community and we sincerely hope that members of the community come out again to enjoy these amazing concerts,” said Kelly Strong, Vice President of Vale’s Ontario & U.K. Operations.

“Since beginning the Vale Concert Series two years ago, we have been amazed at the generosity of the people in our community who come out to enjoy the concerts,” said Mr. Strong, “We thought it was appropriate to show Vale’s continued support through this $50,000 donation, which will help the Sudbury Food Bank operate and feed more than 17,000 people a month in Greater Sudbury.”

Program urges students into mineral exploration – by Lindsay Kelly (Northern Ontario Business – May 21, 2014)

May 21, 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.

As a child growing up in China, Ce Shi loved to look at rocks. His geological curiosity led to the study of natural sciences at the University of British Columbia, which gave way to an interest in mineral exploration. This spring, Shi was one of 26 students selected to travel to Northern Ontario to participate in a hands-on workshop that aims to guide students into the industry.

“I live in BC, but I had heard of Sudbury and the Ring of Fire,” Shi said. “Ontario is a hotspot for investment from China, so I was curious to see Sudbury firsthand.”

Initiated in 2007 by the Prospectors and Developers Association of Canada (PDAC), the Student-Industry Mineral Exploration Workshop (S-IMEW) is PDAC’s response to an impending shortage of workers in the industry. It annually draws together the brightest young minds in Canada for a two-week, all-expenses-paid trip to a mining mecca.

“The event is designed to attract students to the mineral exploration industry and to give them a practical and business perspective of mineral exploration not generally available in the classroom,” Scott Jobin-Bevans, co-founder of the workshop and a PDAC past president, said of the program.

British Columbia mining boom concerns unite tribes across borders – by Ed Schoenfeld (CoastAlaska News – May 19, 2014)

May 21, 2014

http://www.ktoo.org/

Tribal leaders from Alaska and Canada say it’s time to work together to oppose mines affecting both sides of the border. It’s part of the growing scrutiny of projects near transboundary rivers.

Parts of Southeast Alaska are only a couple dozen miles from British Columbia. Historically, tribal groups from both sides have met, traded and married.

“Tlingit, Haida, Tsimshian people who live in Alaska all have tribes, clans and relatives on the other side,” says Richard Peterson, president of Southeast’s Central Council of Tlingit and Haida Indian Tribes of Alaska. He says over the years, many of those connections have been lost. Now, he says, they’re coming back.

“I’m really excited that we could remove these invisible barriers, this invisible line that they call the border, that somehow successfully separates us so well. We’re doing away with that line,” he says. Peterson spoke at a recent program in Juneau about traditional life and changes coming to parts of northwestern British Columbia.

Big miners to blame for iron ore fall, says Glencore Xstrata chief Ivan Glasenberg – by Amanda Saunders (Sydney Morning Herald – May 21, 2014)

May 21, 2014

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

Glencore Xstrata chief Ivan Glasenberg has criticised iron ore miners for putting pressure on prices for the commodity through aggressive brownfields expansions.

Speaking before the latest reading of iron ore spot prices in China showed the price had fallen a further 1 per cent overnight to $US97.50, Mr Glasenberg said Glencore had an advantage over its competitors because it did not produce iron ore.

“We are not big players in iron ore market … prices are coming off because we see massive expansions coming there from our major competitors,” Mr Glasenberg told shareholders at the company’s second annual meeting, on the shores of Lake Zug, in Switzerland, on Tuesday night.

“A large amount of them have these brownfields expansions, they continue to expand … and put more supply into the market. “So we are not heavily exposed to iron ore, except on the trading side, and therefore we believe we have an opportunity against our peers there.” Mr Glasenberg has historically not been shy about pointing out shortcomings among his pure-play mining competitors.

Modi exploring breakup of Coal India, opening up sector – sources – by Krishna N. Das (Reuters India – May 21, 2014)

May 21, 2014

http://in.reuters.com/

NEW DELHI – (Reuters) – Prime Minister-elect Narendra Modi is exploring breaking up state behemoth Coal India Ltd(COAL.NS) and opening up the sector to foreign investment to boost output and cut imports, said two sources with knowledge of the matter.

Red tape, strikes, protests against land acquisition and delays in obtaining environmental approvals have kept coal output far below demand, making India the world’s No.3 importer even though it sits on the fifth-largest reserves.

Modi wants to fix the coal sector quickly to ensure unbroken electricity supply across the country, as in his home state of Gujarat where manufacturing has flourished. Coal generates more than half of India’s power and is the cheapest form of energy.

Any reform will begin with Coal India, as it accounts for 80 percent of India’s total coal output, said a source at Modi’s Bharatiya Janata Party (BJP). The world’s largest coal mining company has failed to meet its output targets for years.

“The story is about Coal India, whose productivity as we all know has been poor,” said the source, a member of the BJP’s economic policy team.