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Pyhäsalmi Mine Oy: Bringing ore to the surface – by Will Daynes (BE Mining – April 23, 2014)

http://www.bus-ex.com/mining

Located in the town of Pyhäjärvi in the south of Oulu province, in central Finland, the Pyhäsalmi mine is an underground copper and zinc mine, owned by Canadian mining corporation First Quantum Minerals.

With a depth measuring 1,444 metres, or 4,738 feet, it is the deepest metal mine in Europe and among the continents oldest. It origins date back to 1958, when a local farmer came across gossan ore during a well construction. A sample of this ore was soon delivered to Outokumpu Corporation, which, following analysis of the sample ordered a more thorough geological survey to be conducted on the area. Said survey revealed a rich volcanogenic massive sulphide (VMS) deposit rich in copper and zinc, and come 1959 the decision was taken to open up a new mine at the site of the ore discovery.

The Pyhäsalmi mine opened on 1 March 1962. For the first five years it existed as an open cast pit, before underground mining operations commenced in 1967. Outokumpu was responsible for designing an underground development plan for the mine and in 2001 completed the construction of a 1,450 metre deep automated hoisting shaft. A year later the mine was acquired by Inmet Mining, who continued forward with the underground development plan. Fast forward to 2013 and the company found itself being acquired by First Quantum Minerals as part of its purchase of the Inmet Mining group.

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About 40,000 illegal miners ignore Peru’s deadline to formalize status – by Cecilia Jamasmie (Mining.com – April 23, 2014)

http://www.mining.com/

Peru’s government has began legalizing tens of thousands of informal gold miners this week, in an effort to restrict an activity that has cost the country millions of dollars in lost fees and severely damaged the environment.

However, about 40,000 of roughly 110,000 illegal miners ignored the Saturday deadline to legalize their status, evading government efforts to bring them into the formal economy.

Over the past five years unregulated mineral extraction in the South American nation, especially gold mining, became an industry of its own, to the point experts calculated it was bringing more profit into the country than drug trafficking. The activity has also led to violence, pollution and the destruction of over 40,000 hectares of the country’s Amazonic rainforest.

In response to those challenges, Peru’s government launched in 2012 a program to incorporate illegal and informal miners into the system by April 2014. Minister of Energy and Mines Jorge Merino justified the measure saying Peru had reached a point of “no return” in the fight against the fly-by-night activity.

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Deadly Illegal Mining Booms Below South African City of Gold – by Kevin Crowley (Bloomberg News – April 24, 2014)

 http://www.bloomberg.com/

Smoke rises from a derelict mine shaft 25 miles east of Johannesburg, where illegal miners cook, work and sleep below ground for weeks at a time.

They have broken through a slab of concrete covering the entrance to the shaft, one of 6,000 abandoned mines, many around Johannesburg, known as “eGoli,” or “City of Gold” in Zulu. At least 40 unlawful prospectors have died in South Africa this year as mines collapse, workers succumb to poisonous gases and gangs wage turf wars underground.

“Any mistake and you feel you’re going to be killed,” said Joseph Sithole, 23, an undocumented Mozambican migrant, as he stood among corrugated-iron shacks and rubbish-strewn paths near the mine. He recounted how last year he dashed to one side of a shaft after hearing a crack, narrowly avoiding being buried by falling rocks. He felt his way to the surface through clouds of dust.

Sithole is one of 14,000 people the government estimates are now involved in illegal mining, which comes as a drop in gold prices and aging ore bodies shut South African shafts. The practice has grown to create a complex criminal industry valued at 6 billion rand ($566 million) a year, Mineral Resources Minister Susan Shabangu said in February.

The government now plans to block up entrances to abandoned mines, compel owners to heighten security and increase convictions for illegal mining.

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Barrick’s Munk: Newmont Deal ’Always Made Sense’ (Bloomberg TV – April 23, 2014)

  http://www.bloomberg.com/tv/ April 23 (Bloomberg) — Peter Munk, founder and chairman of Barrick Gold Corp., talks about a possible merger with Newmont Mining Corp., gold prices, and Barrick’s acquisition of Equinox Minerals Ltd. Munk speaks with Erik Schatzker on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Ex-Goldman Banker Emerges as Barrick Gold Dealmaker – by Liezel Hill and Christopher Donville (Bloomberg News – April 22, 2014)

http://www.bloomberg.com/

A week before Barrick Gold Corp. (ABX) Chairman Peter Munk retires, his successor John Thornton is emerging as a dealmaker as the former Goldman Sachs Group Inc. banker pursues a bid to combine the two biggest gold miners.

Negotiations between Barrick and Newmont Mining Corp. broke off last week amid minor disagreements while leaving open the possibility that discussions could still resume, two people with knowledge of the matter said April 19.

The deal under discussion would have seen Thornton become executive chairman of the combined company while the chief executive officer would have been Gary Goldberg, who currently leads Newmont, the people said. Toronto-based Barrick’s CEO Jamie Sokalsky would have led a smaller gold producer spun off from the merged company, according to the people.

The proposed tie-up and its management reshuffle confirm Thronton’s elevation as Barrick’s most senior executive. The 60-year-old, who had no role in the mining industry until he joined the company’s board just over two years ago, is set to succeed Munk, Barrick’s 86-year-old founder, as chairman at the annual shareholders meeting next week. Leading a successful acquisition of Newmont (NEM), in what would be the biggest gold takeover, would set up Barrick to do further deals, including ones involving other commodities.

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Iron ore price fears raise earnings alert – by Barry Fitzgerald (The Australian – April 23, 2014)

http://www.theaustralian.com.au/business

FEARS that iron ore prices are set to crumble in response to patchy Chinese economic data and the unfolding 20 per cent annual surge in exports from the Pilbara have re-emerged, forcing investors to place the earnings outlook for leading producers on high alert.

Prices for the key steelmaking raw material were sent sharply down on Monday and were lower again in Chinese futures trading yesterday.

Monday’s fall as measured by The Steel Index was $US3.20 or 2.7 per cent to $US113.30 a tonne. The sharp fall comes just as the producers and investors had grown relaxed on iron ore’s near-term price outlook after it had worked its way back from this year’s low of $US104.70 on March 10.

The latest fall was put down to the rise in stockpiles at Chinese ports to near record levels, along with another easing of bans in India, which have kept as much as 50 million tonnes annually off the seaborne market.

India’s Supreme Court lifted a ban on iron ore mining in Goa but restricted output to 20 million tonnes a year. It follows the lifting of bans in the biggest producing state, Karnataka, capped at 30 million tonnes a year.

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Chile creates Mining Tourist Route – by Carolina Contreras (Infosurhoy.com – April 16, 2014)

http://infosurhoy.com/en_GB

In 2015, tourists can see mining developments, learn copper extraction and refining and marvel at the size of the machinery used in large-scale mining.

ANTOFAGASTA, Chile – Beaches, mountains, desert and the Patagonia are some of Chile’s biggest tourist attractions. But in 2015, the country will add a new one: mines in Chile’s northern region, such as Chuquicamata – the largest surface mine in the world that’s in the Antofagasta region – 1,585 kilometers north of the nation’s capital of Santiago.

The excavation area, which is 4.5 kilometers long, 3.5 kilometers wide and 1.1 kilometers deep, is one of Chile’s main mines.

The South American country is the world’s largest copper exporter, with 5.77 million metric tons of annual production and exports worth US$43.1 billion in 2013, according to the Mining Council, which represents the country’s largest mining companies.

Beginning in 2015, Chuquicamata, along with 23 other mines, will be open to tourists as the main attraction on the Mining Tourism Route, created by the Antofagasta Regional Branch of the National Tourism Service (Sernatur) in collaboration with mining companies and the Regional Ministerial Secretariat for Mining.

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Good Friday news reveals bad politics [Tom Steyer and Keystone Pipeline] – by Lorne Gunter (Toronto Sun – April 23, 2014)

http://www.torontosun.com/home

It’s an old public relations strategy in politics that the best time to announce bad news is late on a Friday. That way, the news hits when most of the public (and much of the media) isn’t paying attention. It takes a couple of days for the bad news to trickle down.

Really bad news should be announced on the Friday before a long weekend. So what kind of news gets announced on a Good Friday? Good Friday isn’t just the start of a long weekend, it’s one day into a four-day long weekend.

On top of that, Good Friday is the most solemn day in the Christian calendar. Even nominal Christians who never darken a church door the rest of the year somehow make it to service on GF.

So the attempt by the Obama White House to bury deeply its newest delay on the Keystone XL pipeline by announcing it late last Friday – Good Friday — was not merely tactical, it was cowardly. The time for diplomatic niceties is over. Let’s call a coward, a coward. And Barack Obama is a coward.

He can’t stand up to Russian President Vladimir Putin as Putin prepares to gobble up the old Eastern European client states of the Soviet empire.

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COLUMN-Indonesia to make it even harder for foreign miners – by Clyde Russell (Reuters India – April 23, 2014)

http://in.reuters.com/

Clyde Russell is a Reuters columnist. The views expressed are his own.

LAUNCESTON, Australia, April 23 (Reuters) – Indonesia’s decision to start cancelling investment treaties with 62 countries has passed with little comment, but the move may have a greater impact than the recent banning of mineral ore exports.

Indonesia last month kick-started the process of terminating all of its bilateral treaties by notifying the Netherlands that its agreement to protect and promote investment would end in 2015, and signalling that the others would end as soon as possible.

The agreements, which are common between states, protect the rights of investors in each other’s country, and typically include clauses about fair treatment, no expropriation and guarantees that profits can be repatriated.

Most importantly for many investors in countries like Indonesia, with its patchy record on legal certainty, is the right of appeal to the Washington-based International Centre for Settlement of Investment Disputes (ICSID).

Among the countries that have treaties with Indonesia are major foreign investors including China, India, Australia, Britain, Singapore and Russia. However, the United States and Japan are among nations that don’t have agreements.

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[Barrick’s] Munk touts ‘significant synergies’ in potential Newmont deal – by Rachelle Younglai (Globe and Mail – April 23, 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.

Barrick Gold Corp.’s founder and chairman Peter Munk said merging with rival Newmont Mining Corp. could result in “significant” cost savings, especially in Nevada where the two North American gold miners operate.

The world’s two largest gold producers had hoped to announce an all-stock merger deal before Newmont’s annual shareholder meeting in Delaware on Wednesday, but disagreed over which assets to spin off, sources have said. Although talks were halted late last week, the companies are still open to merging in an effort to cut costs amid the deep slump in gold prices, sources have said.

“Combining Barrick and Newmont could result in significant synergies and cost savings, particularly in Nevada, where our operations are literally next door to one another,” Mr. Munk said in an e-mailed statement.

Gold has lost more than a third of its value since peaking above $1,900 (U.S.) an ounce three years ago. The weaker precious metal price, now trading below $1,300 an ounce, has forced the gold industry to overhaul operations to preserve cash.

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Teck Resources Ltd to cut 600 jobs, warns current coal supply is ‘uneconomic’ – by Peter Koven (National Post – April 23, 2014)

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

TORONTO – Steelmaking coal producers have started to slash production in response to lower prices, but Teck Resources Ltd. is warning that a lot more supply needs to be cut by high-cost rivals to bring the market into balance.

“Prices are currently at their lowest level since 2007, and margins are at their lowest level in 10 years,” chief executive Don Lindsay said on a conference call Tuesday. “We continue to be surprised there remains so much uneconomic coal supply on the market.”

Vancouver-based Teck announced on Tuesday that it will cut roughly 600 jobs as it tries to reduce costs and adapt to lower commodity prices, particularly for coal. The company’s realized coal price in the first quarter was US$131 a tonne; by comparison, Teck sold its steelmaking (or coking) coal for an average of US$257 a tonne in 2011.

The market has gotten even worse in recent weeks. The benchmark price for the second quarter is just US$120 a tonne, while spot prices have flirted with US$100.

Prices are falling because of concerns about rising production, slowing growth in China and the fact the Chinese government is closing some the country’s dirtiest steel mills to reduce air pollution.

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Skip malfunction closes North Mine – by Carol Mulligan (Sudbury Star – April 23, 2014)

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

Production at Vale’s Copper Cliff North Mine has been halted, and all but a skeleton crew of workers sent home as Vale personnel and United Steelworkers Local 6500 officials try to figure out why a skip hoist mechanism malfunctioned Sunday.

No one was injured when the conveyance used to bring ore from underground to surface travelled beyond ground, not stopping until it reached the concrete floor at the top of the head frame of the mine shaft.

Vale spokeswoman Angie Robson said the cause of the malfunction isn’t known and the extent of damage is still being assessed.  The area has been secured and production halted until repairs can be done, to ensure employee safety, she said.

In a statement, Robson said she didn’t know how long Copper Cliff Mine would be closed. USW Local 6500 president Rick Bertrand said Tuesday he has never seen anything like it in more than 20 years in mining. “Right now, everyone’s working together to see what caused it to happen,” Bertrand said.

No one was injured in the incident. Employees were above ground when the skip malfunctioned, said Robson. Bertrand said the skip, which could be filled with as much as 10 tons of ore, would weigh about 25 tons if full.

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Ring of Fire infrastructure money will be in provincial budget – by Darren MacDonald (Northern Ontario Business – April 22, 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.

Ontario’s finance minister was in Sudbury, April 22, sounding upbeat and promoting his budget, which will be released May 1.

But while long on positivity, Charles Sousa was short on specifics, even though many items expected to be in the budget were leaked April 1. Sousa said he was almost glad budget details were “shared” because he’s proud of what’s in it.

“We do want people to be appreciative and to recognize the importance of the things that are going to be in this budget,” he said after completing a tour of the Learning Initiative on Cedar Street. “Those communication plans are something that come out with every government.”

The leak detailed how the province planned to leak its own budget, right down to dates when each item would be released. When asked why the planned leak about funding for road infrastructure into the Ring of Fire wasn’t released as scheduled on April 17, Sousa replied that it wasn’t a planned announcement exactly, but more of an informal “communications plan.”

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NEWS RELEASE: Ring of Fire holds huge potential to share the wealth

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.

Virtually every sector of the economy would benefit from the responsible development of the mineral rich Ring of Fire area, according to the Ontario Chamber of Commerce study Beneath the Surface: Uncovering the Economic Potential of Ontario’s Ring of Fire. This paper believes that in the first decade of its development, the Ring of Fire could generate up to $9.4 billion in GDP, sustain 5,500 jobs annually and generate $2 billion in tax revenue for governments.

“Ontario, now more than ever, must identify and champion opportunities where it can be a global leader,” said Allan O’Dette, President of the OCC. “The Ring of Fire is such an opportunity. We believe that this globally significant deposit of minerals in Ontario’s Far North is one of the province’s greatest economic development opportunities in a generation.”

The jobs and positive economic development opportunities created by the Ring of Fire will be shared throughout many other sectors of the economy. The OCC’s analysis sees major benefits going to the financial services, wholesale trade, retail trade, manufacturing and utilities sectors.

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