Republic of Mining

China decries Canada’s ‘negative’ investment rules – by Nathan Vanderklippe (Globe and Mail – May 8, 2014)

May 8, 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.

HONG KONG — China’s incoming ambassador, saying Beijing still does not fully trust Canada, called on the federal government to roll back “negative” new foreign investment rules and smooth the way for increased trade with China.

Luo Zhaohui, a veteran diplomat with a love of basketball, will board a plane Thursday for Ottawa, where he will take charge of an international relationship that is as vital to Canada’s economic future as it is fraught with problems.

China has become banker to Canada’s oil and gas industry and buyer of its minerals and lumber, a country whose vast market and deep pockets have stoked lust among Canadian political and business leaders alike. Annual trade has reached nearly $60-billion (U.S.), although that’s “not enough” in the opinion of Mr. Luo, who held out the promise of a China open to buying more of what Canada has to sell.

But mutual suspicion has clouded the relationship even as ties between the two counties have deepened, with Canadian anxiety over the clout of the rising superpower and China bridling at trade and investment restrictions.

Time to counter human rights abuses by Canada’s mining companies – by Alex Neve (Toronto Star – May 8, 2014)

May 8, 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.

Alex Neve is Secretary General of Amnesty International Canada.

Major change is required to ensure accountability for companies that cause harm and effective remedy for those who are harmed, especially in the mining industry.

The stories mount, stories of human rights abuse and injustice: “mining activists shot,” “mine operations suspended,” “company accused of water pollution.” Far too often a Canadian mining company is behind the story. Canadian mining companies lead the mining world; but none aspire to lead the world in mining-related human rights abuses.

There is a common theme to all the cases: lack of an effective remedy open to the individuals and communities that suffer human rights harms associated with Canadian mining operations. Victims have nowhere to turn for justice. Not in their home country, nor in Canada.

Over the last two decades, as Canadian companies dig in evermore far-flung corners of the world for gold and other precious metals, disturbing accusations of human rights abuses follow.

UPDATE 2-Glencore names ex-BP boss Tony Hayward as chairman – by Silvia Antonioli and Karolin Schaps (Reuters India – May 8, 2014)

May 8, 2014

http://in.reuters.com/

LONDON, May 8 (Reuters) – Glencore Xstrata named Tony Hayward, the ex-BP chief severely criticised for his role in the Gulf of Mexico oil spill, as permanent chairman of the mining and commodities trading group, ending a year-long search.

Hayward, who has been Glencore Xstrata’s interim chairman since Sir John Bond was ousted by shareholders last year, is also chief executive of London-listed oil company Genel Energy Plc.

His confirmation as chairman of one of the world’s largest mining groups completes Hayward’s return to the top of the corporate world after he was forced out of BP following the catastrophic 2010 Deepwater Horizon oil spill.

Hayward is expected to eventually step down as chief executive of Genel, the oil and gas explorer he has invested in alongside British-born financier Nat Rothschild, a source close to the matter said.

Genel, which focuses on producing oil in the autonomous Iraqi region of Kurdistan, declined to comment on whether Hayward would leave.

Centerra Gold continues to navigate minefield of Kyrgyzstan politics – by Peter Koven (National Post – May 8, 2014)

May 8, 2014

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

Centerra Gold Inc. is so used to getting threatened by its host government in Kyrgyzstan that it scarcely blinks anymore.

Over the past couple of weeks, Centerra watched as the Kyrgyz parliament passed a law prohibiting activities (like gold mining) that affect glaciers, and as a government agency suggested the company’s flagship Kumtor mine could be suspended. On top of that, its 2014 mine plan has still not been approved by the state.

If these events happened in another country, mining investors would be running for the hills. But they are so commonplace in Kyrgyzstan that Centerra shares barely budged, remaining around the $5.50 mark so far this week. It is simply the price Centerra has to pay to operate in a country that the Fraser Institute recently deemed the worst mining jurisdiction on earth.

Yet through all the noise, the one constant is that the Kumtor mine continues to run and churn out cash. It has done so for 16 years, with only one brief interruption last year that had anything to do with politics.

“Even though the mine comes under a lot of rhetoric and is used as a political football, they do allow it to continue to operate because it’s such a key part of the country,” Centerra chief executive Ian Atkinson said in an interview.

Gold Fields CEO Sees South Deep Mine Ready by End 2017 – by Kevin Crowley (Bloomberg News – May 8, 2014)

May 8, 2014

http://www.bloomberg.com/

Gold Fields Ltd. (GFI)’s South Deep mine, plagued by delays since it was bought for $3 billion in 2006, will underpin long-term growth and be ready for full output by 2017, Chief Executive Officer Nick Holland said.

The company’s only South African asset, and the world’s second-biggest gold deposit, will produce 650,000 to 700,000 ounces a year at about $900 an ounce by the end of 2017 even with disruptions in the first quarter, he said.

“The build-up in production is going to come with a commensurate reduction in the cost base,” Holland said in an interview. “We’ve got all the infrastructure already built.”

Gold Fields needs South Deep to help reverse a 54 percent slump in its stock since spinning off three South African mines to create Sibanye Gold Ltd. (SGL) in February last year. The mine cost Gold Fields about $4 billion, including the purchase price, and is seen producing 700,000 ounces a year until at least 2075.

South Deep “is going to fundamentally change the group’s margin delivery and performance,” Holland said.

Mourn for those dying to live [Sudbury mining deaths] – by Dave Dale (North Bay Nugget – May 7, 2014)

May 8, 2014

http://www.nugget.ca/

Two more miners died in the Sudbury area this week, raising the death toll to six in the past three years. The latest incident happened at First Nickel’s Lockerby mine Tuesday.

Norm Bissaillon, 49, and Marc Methe, 34, contract drillers with Taurus Drilling Services, were killed in a fall of material, preceded by seismic activity, which is believed to have been a factor in the accident.

Nipissing is a close Nickel Belt neighbour and many North Bay and area residents are linked in one way or another to families dependent on their children or parents toiling underground there and north of here.

Whether you knew them or not, it’s important to pause and reflect on how people are dying to make a living. With so many other career opportunities evaporating in this province, it might be your own child, parent or cousin next.

It was less than two weeks ago on April 28 that the National Day of Mourning paid tribute to all those who lost their lives or were injured on the job.

Ministry issues orders related to Lockerby mining deaths [Sudbury] – by Carol Mulligan (Sudbury Star – May 8, 2014)

May 8, 2014

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

The Ministry of Labour has issued one order and one requirement to First Nickel Inc., in its investigation into the deaths Tuesday of two drillers at Lockerby Mine.

Marc Methe, 34, and Norm Bisaillon, 49, were killed by a fall of material, that was preceded by seismic activity believed to have been a factor in the accident. The men both worked for Taurus Drilling Services.

The ministry, which is leading the investigation into the men’s deaths, has issued a requirement for documentation including training records, shift lineup, level plans, shifter log books, seismicity records and ground control inspection reports. The compliance date for those materials is Friday.

The ministry has also ordered that the accident scene remain barricaded until released by an inspector. The orders are a normal part of a ministry investigation into a mining fatality. Meanwhile, United Steelworkers has also issued a statement about the deaths of the two contractors, who were not members of a union.

Showdown looms in South African platinum strike – by Geoffrey York (Globe and Mail – May 7, 2014)

May 7, 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.

JOHANNESBURG — Platinum mining companies are heading into a final showdown with 70,000 striking workers this week, trying to break a stubborn union that has spearheaded the longest and costliest strike in the history of South African mining.

The outcome is likely to trigger a major overhaul of the country’s platinum sector, leading to mine closings, greater mechanization and thousands of job cuts. It could indirectly benefit several Canadian companies that plan to operate mechanized platinum mines in South Africa.

The three major producers, accounting for about 40 per cent of the world’s platinum production, are seeking to bypass the union by taking their wage offer directly to employees in cellphone text messages, public meetings and radio commercials.

One of the three companies, Lonmin PLC , has set a Thursday deadline for phone-message acceptance from its employees. It is hoping to have its employees back at work by the middle of next week. The other two companies are making similar efforts.

The strike is in its 15th week, inflicting heavy damage on the mining firms and the workers, with no sign of a revival of the talks. The three major producers have lost an estimated $1.6-billion (U.S.) in revenues so far, while the employees have lost about $700-million in earnings.

UPDATE 1-Stanford University ending investments in coal companies – by Rory Carroll (Reuters India – May 7, 2014)

May 7, 2014

http://in.reuters.com/

May 7 (Reuters) – Stanford University said on Tuesday it will no longer use any of its $18.7 billion endowment to invest in coal mining companies, a move aimed at combating climate change that could influence college administrations elsewhere.

The university’s board of trustees agreed with recommendations from a panel of students, faculty, staff and alumni that found investments in alternatives to coal would be less harmful to the environment. The burning of coal for electricity is a major contributor to the output of heat-trapping greenhouse gas emissions globally.

The Stanford announcement is the most significant to date from a major, well-endowed college or university in the United States amid a growing movement by students around the country to pressure their institutions to divest from fossil fuels.

“The university’s review has concluded that coal is one of the most carbon-intensive methods of energy generation and that other sources can be readily substituted for it,” said Stanford President John Hennessy.

It was announced on the same day the White House released a report warning that climate change was already affecting the United States in the form of more severe droughts in some areas and more intense storms in others.

NEWS RELEASE: Barrick Gold: A tradition of giving

May 7, 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.

While 86-year-old Peter Munk may have stepped down as chairman of Barrick Gold, the world’s largest gold producer and the company he founded 30 years ago, his legacy of giving and corporate social responsibility lives on in many ways. “To give is part of Barrick’s DNA,” said Mr. Munk. “It’s part of who we are.”

The May 2014 edition of Beyond Borders, Barrick’s magazine, which highlights global examples of responsible mining reminds us about corporate giving with some examples close to home. Barrick regularly makes donations, which both support major institutions utilized by thousands and individual projects supporting communities where it operates.

Recently, Barrick donated $3 million to the Royal Ontario Museum in Toronto to support educational programs benefitting more than 150,000 students annually. The donation also led to the creation of the Barrick Gold Corporation Gallery, which tells the story of modern mining through an interactive mining game, educational touch screens, videos and the attraction of a million dollar gold coin.

“The gallery illustrates the importance of mining in our daily lives and discusses the social and environmental responsibilities surrounding mining,” said Janet Carding, Chief Executive Officer of the ROM.

In waste rock, mining companies find opportunity and create jobs [Minnesotta iron range] – by Dan Kraker (Minnesota Public Radio – May 4, 2014)

May 7, 2014

http://minnesota.publicradio.org/features/

The rising price of iron ore and other metals in the last decade has led mining companies to an important discovery: There’s money to be made in what was once considered waste.

Minnesota’s Iron Range is littered with the legacy of 130 years of iron mining. Mine pits, enormous waste rock piles and tailings basins dot the landscape.

A newfound interest in the leftover rock is leading to a resurgence of mining on the western edge of the Iron Range, between Grand Rapids and Hibbing.

At the forefront is a company called Magnetation, which is building its fourth plant outside Grand Rapids. In what old mining companies considered junk rock, Matt Lehtinen, the company’s 32-year-old president, sees opportunity.

“Behind me here is actually a stockpile of waste iron ore called coarse tailings, about 400,000 tons of high grade waste, that 50 years ago was waste, but now is actually considered high grade feed for us for this plant,” he said.

COLUMN-Bulls lose patience with zinc’s slow-burn story – by Andy Home (Reuters U.S. – May 7, 2014)

May 7, 2014

http://www.reuters.com/

Andy Home is a Reuters columnist. The opinions expressed are his own.

May 7 (Reuters) – Markets are fickle things. A few months ago zinc was the only game in town among the base metals traded on the London Metal Exchange (LME). The market was chasing a bullish story of pending supply shortfall as some of the world’s largest mines reach the end of their natural lives.

Now, however, metal bulls are shunning the zinc market, turning their attentions to nickel with its equally compelling story-line of mine shortfall after the January imposition of a ban on nickel ore exports by Indonesia.

LME three-month nickel has gained 30 percent, while three-month zinc has fallen by 2 percent since the start of this year. So what has changed to explain zinc’s fall from bullish favour? Nothing, according to Canadian producer Teck Resources , which in its Q1 2014 results reiterated the bull argument for zinc.

“We believe the outlook for zinc is the most favourable of the base metals. With recent and expected closures of a number of zinc mines, we believe that approximately 1.5 million tonnes of current zinc mine production will be closed by the end of 2016 in a 13 million tonne per year market.”

PoV: Words no longer suffice for [Sudbury mining] tragedy – by Brian MacLeod (Sudbury Star – May 7, 2014)

May 7, 2014

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

We are blessed as a community to live in a mining town, with good jobs and a good lifestyle. But it is a hard truth that we must also live with tragedy. We are horrified when it happens in our mines, but it is equally tragic that we are not shocked.

We have lived with the dangers present in underground’s unforgiving environment for as long as our community has existed.

And so now we mourn two more. Marc Methe, 34, and Norm Bissaillon, 49, died at First Nickel’s Lockerby Mine Tuesday morning after a fall of ground. Methe is said to have become an uncle recently, and devoted to his trade. Bissaillon, an underground miner with two decades of experience, was dedicated to his family.

They are the fifth and sixth employees of mining companies in Sudbury to die on the job in the last three years. And so again, we hear words of sympathy and condolence from industry officials and politicians. They are words we must find a way to stop the need for saying.

We said them for millwright Paul Rochette, 36, who died April 6 when a piece of equipment malfunctioned at the casting and crushing plant in Vale’s smelter. Another miner was badly injured in the incident.

Sadness greets Sudbury Lockerby Mine deaths – by Star Staff (Sudbury Star – May 7, 2014)

May 7, 2014

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

It’s the responsibility of all Ontarians to work together to stop senseless tragedies from occurring in the province’s mines, says the chair of the Mining Health, Safety and Prevention Review.

George Gritziotis, Chief Prevention Officer for the Province of Ontario, said he was shocked and saddened Tuesday to learn of the deaths of two men early Tuesday at First Nickel’s Lockerby Mine.

Gritziotis released a statement Tuesday saying his thoughts and prayers were with the men’s families and colleagues, and with the people of Sudbury.

“These tragedies are devastating to the community. I know the people of Sudbury, miners everywhere and all Ontarians are shaken by these tragedies,” he said.

Sherritt International Corp. wins solid victory in proxy fight, but activist George Armoyan vows to keep pushing for change – by Peter Koven (National Post – May 7, 2014)

May 7, 2014

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

TORONTO — Sherritt International Corp. won a convincing victory in its proxy battle with George Armoyan on Tuesday, but the activist investor insists he is not selling his shares and going away.

Mr. Armoyan earned a round of applause at Sherritt’s annual meeting in Toronto after stating that the company has good potential and is making progress in realizing shareholder value. It was a subdued speech by his standards that cast aside the bad blood from the proxy fight.

“We offered ideas; some have been accepted, some not. But we intend to remain active and involved shareholders,” he said.

Mr. Armoyan, the chief executive of Halifax-based Clarke Inc., launched his campaign against Sherritt last December, claiming the company’s directors were enriching themselves while failing to create value for shareholders. He wanted to replace three existing directors with himself and two handpicked nominees.

Ultimately, his efforts fell well short. All of Sherritt’s nominees were elected at the annual meeting, with each one getting more than 146 million shares voted in their favour.