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Rodriguez ‘back to finish the job’ (Mine revenue sharing with governments) – by Harold Carmichael (Sudbury Star – May 10, 2014)

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

The “bus driver” wants to get back behind the wheel of the city council bus to finish the job he started in 2006. John Rodriguez, a long-time Nickel Belt New Democrat MP and retired educator who lost his re-election bid in 2010, announced Friday he has entered the mayoral race.

“I always felt I had to run again to complete the job I started,” Rodriguez told reporters at a press conference at Bertolo’s on Durham Street. “I am determined to finish the job I started.

“We haven’t gotten resource revenue sharing. We haven’t made the improvements to our infrastructure …We need to increase our revenue streams. We can’t keep going to the homeowner with 2.9% (property tax) increases.”

Rodriguez, who became known as the bus driver during his term a mayor, promised to:

– restore the province’s Ombudsman (Andre Marin) as the city’s secret meetings investigator (he would introduce a notice of motion at the first council meeting and then have it debated and voted on it in the second meeting);

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Tim Hudak sets election agenda with explosive pledges – by Martin Regg Cohn (Toronto Star – May 10, 2014)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Give the Tory leader credit for laying his job on the line by promising to lay off 100,000 public servants.

Hello Tim Hudak! If Ontarians hadn’t noticed you yet, they’ll know you soon enough. Give the Tory leader credit for laying his job on the line: not many politicians go into an election campaign telling voters they’d ditch 100,000 jobs from the provincial government, schools and municipalities.

That’s a lot of public servants — and plenty of public services. Depending on the June 12 election results, all those people will lose their positions, or Hudak will. Beyond the explosive job cuts, he’d also cut corporate taxes by a stunning 30 per cent. The Tory leader announced Saturday he’d make Ontario the lowest-tax jurisdiction for business in North America.

Why keep cutting government and taxes?

Corporate rates in Ontario are already far lower than in neighbouring U.S. states that compete for the same investments. You may remember Republican Mitt Romney pointing enviously to Ontario’s low taxes in the last U.S. presidential election.

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Vedanta shelves Odisha bauxite plan pending local approval – by Karen Rebelo (Reuters India – May 9, 2014)

http://in.reuters.com/

REUTERS – Vedanta Resources Plc said on Friday it would not mine bauxite at a controversial project in Odisha until it can win over local communities opposed to its plan.

The Environment Ministry had already rejected Vedanta’s request to mine in the Niyamgiri hills of Odisha following persistent protests from local communities that consider the region sacred..

While Vedanta stopped short of saying it had abandoned the project, its decision to await the consent of local communities will require it to look elsewhere for the raw material to feed its alumina refinery in the same state.

Analysts said Vedanta’s announcement is an early hint of plans by Tom Albanese, the former Rio Tinto head who became Vedanta’s chief executive last month, to make the London-listed company a more attractive sell to international investors.

Vedanta, a company with a market capitalisation of $4.2 billion and base metal mines in several countries, relies on aluminium production – exclusively in India – for about 12 percent of its revenue.

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Environmental study on uranium mining announced – by Michelle Lalonde (Montreal Gazette – May 8, 2014)

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

A coalition of doctors, environmental groups and First Nations leaders gathered in Montreal Thursday to publicly urge Quebec’s new premier to maintain the moratorium on uranium mining until the risks and impacts of these mines on surrounding communities have been thoroughly studied.

The province’s environmental watchdog, the Bureau d’audiences publiques sur l’environnement (BAPE), announced Tuesday it will begin a year-long study of the uranium mining issue starting later this month.

That process, lead by former environmental journalist Louis-Gilles Francoeur, will be carried out in three phases: pre-consultation hearings to determine public concerns from May 20 to June 23, an information phase this fall where the committee will consult experts, and an official public hearing phase next fall and winter where interested parties can present written briefs or speak directly to the commissioners.

Uranium is a naturally occurring radioactive element that is present in many areas of Quebec, including northern Quebec, Temiscaming, the Laurentians, Gatineau, Shawinigan, Sept-Îles and the North Shore.

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China, Japan scramble for nickel after Indonesian ban – by Polly Yam and Yuka Obayashi (Reuters U.S. – May 8, 2014)

http://www.reuters.com/

HONG KONG/TOKYO, May 8 (Reuters) – Nickel buyers in China and Japan are scrambling to secure supplies as soaring prices and a fear of shortages boosts demand for both refined metal and long-term ore contracts.

The price of nickel ore from the Philippines has more than doubled since late February, as supplies have dried up from rival producer Indonesia, previously the world’s biggest exporter.

China, the world’s largest nickel consumer, has recently increased imports of refined metal to help meet higher seasonal demand, say trader and importers, as the price of commonly used alternative nickel pig iron has soared since the Indonesian ban took effect in mid-January.

Nickel demand may get a further boost from stockpiling by China, with refined imports due to start arriving at State Reserves Bureau warehouses before the end of June, sources with knowledge of the matter said.

“Everybody in China is bullish nickel and everybody is hoarding nickel of any kind,” commodities strategist Ivan Szpakowski of Citi in Shanghai said. China, the world’s largest steelmaker, has turned to laterite nickel ores in recent years to produce nickel pig iron, a cheap, low-grade ferro-nickel – an alloy of iron and nickel – used in stainless steel.

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Queensland Government announces $16b coal mine in Galilee Basin, subject to Federal approval – by Melinda Howells (Australian Broadcasting Corporation – May 9, 2014)

http://www.abc.net.au/news/

The Queensland Government has signed off on a $16 billion coal development in the Galilee Basin in the state’s central region that could become the largest coal mine in Australia.

The Carmichael Coal Mine north-west of Clermont will produce up to 60 million tonnes of coal each year and includes a 189-kilometre rail line. The project, which is being run by Adani Mining, a wholly owned subsidiary of India’s Adani Group, now goes to the Federal Government for final approval.

Deputy Premier Jeff Seeney says a processing plant, workers’ accommodation and an airport will also be built. “The coordinator-general has approved the project subject to an extensive list of environmental and social conditions,” he said. “If it proceeds, the Carmichael project would not only be the largest coal mine in Australia but one of the largest in the world.

“But it would also be a vital project in opening up the hugely significant Galilee Basin.” He says the coordinator-general had “worked closely” with the Commonwealth Department of Environment in finalising the report.

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Bauxite: Will Australia fill Indonesia’s shoes? – by Oliver Probert (Australian Journal of Mining – May 07, 2014)

http://www.theajmonline.com.au/

Indonesia’s move to ban the export of mineral ores has left analyst Wood Mackenzie asking the question: where will China look to satisfy its growing appetite for bauxite?

The analyst’s most recent forecasts indicate that global alumina refinery production will rise to almost 140mt by 2018, which means we’ll see bauxite demand rise by almost 80mt to 350mt. China is the main global player in the aluminium market. It represents 40% of global supply, and 60% of global demand for the metal.

With China’s alumina refinery production forecast to rise by almost 17mtpa by 2018 and a further 40mt by 2030, Wood Mackenzie estimates the Asian giant will consume as much as 240mt of bauxite by 2030.

Until recently, Indonesia was the main supplier of bauxite to China, accounting for around 65% of overall supply last year. But in an attempt to create jobs by encouraging producers to build refineries on mainland Indonesia, the government enforced a ban on mineral ore exports in January.

The ban has created a significant supply gap for China to fill, and while swollen stockpiles and source diversification will soften the blow in the short to medium term, Wood Mackenzie believes the ban could be transformative to the global bauxite market in the longer term.

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Kibali helps Randgold to record production – by Martin Creamer (MiningWeekly.com – May 8, 2014)

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

JOHANNESBURG (miningweekly.com) – Output from the new Kibali gold mine in the Democratic Republic of Congo (DRC) helped lift the gold production of Randgold Resources to a record level in the first three months of this year.

The London-listed company produced an unprecedented 283 763 oz in the March quarter, with Kibali producing at just over $500/oz. A 3% increase in the average gold price received saw higher quarter-on-quarter gold sales of $363-million.

Total cash cost an ounce of $685 was down 19% on the corresponding prior year quarter owing to Kibali’s ramp-up and Loulo-Gounkoto’s significantly higher grades. Profit from mining was up 14% on the corresponding quarter in 2013.

While cone crusher mechanical failure again resulted in Tongon, in Côte d’Ivoire, delivering a below-par performance, overall the company’s total cash cost and production guidance for the year remained intact.

“We have looked closely at our mines to ensure that they will still be profitable at $1 000/oz,” said Randgold CEO Mark Bristow.

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Vale N.L. not ordered to hold back waste – by Ashley Fitzpatrick (St. John’s Telegram – May 8, 2014)

http://www.thetelegram.com/

Former Environment Canada officer details slow response to failed tests

Environment Canada officer Ron Hunter was kept informed as, repeatedly, samples of treated liquid waste from Vale Newfoundland and Labrador’s mine site at Voisey’s Bay failed a key environmental safety test in October 2011.

According to the now-retired officer’s testimony, during a day of trial at provincial court in St. John’s Wednesday, it took the better part of the month and a third failed test before he felt the need to give formal direction to the company about the discharge of the waste into nearby Anaktalak Bay, on the Labrador coast.

Release of treated mine waste into the waters is permitted, but only with regular testing showing it remains within specific parameters, for the protection of the environment.

During Hunter’s testimony, a reference was made to a “final discharge point monthly summary,” stating a total volume of waste released into the bay during the month in question was 492,337 cubic metres — enough to fill 197 Olympic-size swimming pools.

The Telegram has yet to see that document.

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Anglo May Sell Brazil Nickel Unit to Vale, Deutsche Bank Says – by Firat Kayakiran (Bloomberg News – May 8, 2014)

http://www.bloomberg.com/

Anglo American Plc (AAL), which is reviewing assets globally as it tries to return to profit, may offer its Brazilian nickel unit to the nation’s largest miner Vale SA as metal prices increase, Deutsche Bank AG said.

Nickel will probably peak at $27,000 a metric ton in 2017, Deutsche analysts Rob Clifford, Anna Mulholland and Paul Young wrote in a report dated yesterday, raising the bank’s forecast of $20,000 a ton in 2018. The metal has surged 40 percent in London trading this year after leading global miner Indonesia barred exports of raw ores in January.

Anglo’s Barro Alto unit, which missed its target of an annual capacity of 36,000 tons at the end of 2012 because of setbacks at its two furnaces, said last month it aims to reach the mark by 2016. It plans to fix one of the furnaces this year and the second one in 2015. The mine produced 25,100 tons of nickel last year, Anglo said in February.

“We would suspect that Vale, having undertaken a similar rebuild program at its Onca Puma, could be interested in acquiring the Barro Alto operations and may consider taking on the assets prior to the completion of any refurbishment program if that were to be reflected in the price,” the Deutsche analysts said in the report.

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Gold Prices: The Coming End To This Bear Phase – by Bob Kirley (Kitco Commentary – May 7, 2014)

http://www.kitco.com/

Background

It’s been almost 30 months since the gold bull hit the dizzy heights of $1900/oz back in August 2011, sending many of us into raptures. However, it has been a very different story since then with gold slipping to a low of $1180/oz in June 2013 before bouncing higher to almost touch the $1400/oz level. Fast forward to today and we have gold trading at around $1310/oz level, having tested the June bottom around Christmas time 2013. Many believe that the bottom is now in and the bull has resumed charge, with the bears being exhausted. We would like to agree with them but we are still of the opinion that a challenge to the June lows could still lie ahead of us.

Gold

Gold prices are presently being dragged in both directions with the geo-political issues in the Ukraine putting upward pressure on gold as it is viewed as a safe haven in terms of protecting ones wealth. Gold is something you can take with you should the need arrive and you have to move to a safer location in a hurry. However, for many of us our need to own gold is based the perennial devaluation of our own countries currency.

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Mine M&A Set to Double as China Returns in Coal to Copper Deals – by Elisabeth Behrmann, David Stringer and Brett Foley (Bloomberg News – May 07, 2014)

http://www.businessweek.com/

China, the world’s biggest buyer of metals, is back on the hunt for acquisitions, triggered by a decline in prices and a shift in government policy.

Chinese demand for assets may help fuel a doubling in the number of mining deals worldwide this year, according to Jay Leary, law firm Herbert Smith Freehills’s joint global relationship partner for BHP Billiton Ltd. (BHP), the world’s biggest miner. Copper, iron ore and coal are the top targets, he said.

“Over the past six weeks we have seen a significant step-change in the amount of M&A activity in the mining sector,” Leary said in an e-mail. “Over the next year, we would expect Chinese investors to represent a material proportion of mining global transactions, perhaps as much as 30 percent of transactions.”

Mining acquisitions by Chinese companies surged 63 percent in the first four months of this year and are forecast to accelerate as new rules from today mean most overseas deals under $1 billion don’t need government approval.

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Magna says no new plants for Canada, cites Ontario energy costs – by Dana Flavelle (Toronto Star – May 9, 2014)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

 Ontario energy, pension costs a concern, the company says. 

Magna International Inc. says it has no plans to open any new plants in Canada despite a lower dollar, chief executive officer Don Walker says. The nearly 10 per cent decline in the Canadian dollar relative to the U.S. greenback has helped make the Aurora-based global auto parts supplier more cost competitive, Walker told the company’s annual general meeting Thursday.

But the company said it’s concerned about Ontario’s industrial electricity rates and proposed pension plan, along with the future of its auto assembly plants.

“I’m worried about electricity prices in Ontario, where all of our plants are located,” Walker told a press conference after the meeting at The Westin Prince Hotel in Toronto. Magna operates 46 auto plants in Canada, all in Ontario where the major auto makers’ assembly plants are located.

Walker said he hoped whoever wins the Ontario election on June 12 takes action to reduce energy costs for the corporate sector.

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Kathleen Wynne gets good value in her fight with Stephen Harper: Editorial (Toronto Star – May 9, 2014)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

“… the $11 billion that Ontario sends to Ottawa each year and doesn’t
get back in federal transfer payments, and his government’s lack of investment
in northern Ontario’s massive resource opportunity, the Ring of Fire….
To be fair, Wynne’s promise to invest $1 billion in the Ring of Fire
relies on matching funds from the feds, so it’s essentially meaningless.”

Liberal Kathleen Wynne says she’s the only Ontario leader who will fight the stingy federal government on behalf of Ontario. Who is Kathleen Wynne campaigning against, anyway?

The premier and Liberal leader has spent the past few days attacking Prime Minister Stephen Harper with such glee that you’d think he was her chief competitor in the provincial election.

The best part, for Wynne, is Harper’s response. Instead of ignoring her, as the nation’s leader should do with a pesky provincial politician, Harper and his staff keep firing back, which only fuels awareness of the big Liberal ideas that the federal Conservatives oppose.

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Nickel soars to two-year high on Goro mine halt, shortages – by Eric Onstad and Harpreet Bhal (Globe and Mail – May 9, 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.

LONDON — Reuters – Nickel raced to its strongest level in more than two years on Thursday as industrial consumers scrambled to secure supplies and speculators extended their buying spree after Vale halted its Goro nickel operations in New Caledonia.

Though the Goro shutdown was not expected to have a major impact on physical nickel supplies, it served to fire up bullish sentiment and chart-based purchases.

The nickel market, which has soared nearly 40 per cent this year, was already nervous about shortfalls from top producer Indonesia and worried about potential Russian supply problems.

“Today we’ve seen some panicked consumer hedging and the hedge funds have already been in there for a while,” said analyst David Wilson at Citi in London.

Three-month nickel on the London Metal Exchange (LME) surged 6.1 per cent to a high of $19,786 a tonne, the strongest since March 2, 2012. It later retreated to $19,451 a tonne at 1421 GMT, up 4 per cent from Wednesday’s close, with trading volumes of over 10,700 lots compared with Wednesday’s full-day volume of 5,121.

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