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Gold rush threatens West Africa’s cocoa future – by JOE BAVIER AND LOUCOUMANE COULIBALY (Reuters U.S. – April 11, 2014)

http://www.reuters.com/

YOHO, Ivory Coast – (Reuters) – A month ago, Bouafu Kouassi dug a neat circular hole in the middle of his one-hectare cocoa plantation in western Ivory Coast, and, sifting through the gravel on his shovel, found the unmistakable traces of gold dust.

With luck, it could transform his life, but it could just destroy his farm. And as the story repeats across the cocoa heartland of the world’s top producer and neighboring Ghana, the second-largest, it could do lasting damage to the industry.

Today, nearly three dozen vertical shafts plunge down into the soil beneath Kouassi’s cocoa trees, branching out into a web of underground tunnels 10 meters below the surface.

The 35-year-old, who once struggled to pay school fees for his five children, has in a matter of weeks pocketed as much as he could hope to earn in five years growing cocoa. “As long as there’s gold here, we’ll be working,” he says, with the giddy smile of a man who thinks he’s won the lottery. With high prices for the precious metal fuelling a gold rush in Ivory Coast and Ghana, diggers are scurrying to cash in.

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On the road to reconciliation, tension between miners and Aboriginals grow – by Henry Lazenby (MiningWeekly.com – April 11, 2014)

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

TORONTO (miningweekly.com) – While Canada has come a long way in reconciling pre-existing Aboriginal sovereignty with assumed Crown sovereignty, tension is rising between the proponents of several new mining projects located on Crown lands, or within Aboriginal reserves, and Aboriginals, who increasingly assert their rights.

In recent weeks, several Aboriginal communities have voiced their concerns regarding proposed mining projects, insisting on their right to self-determination.

For example, this week the West Moberly First Nations were in the Supreme Court of British Columbia, in Nanaimo, where they argued their case against a proposed coal project in an area 34 km north of Chetwynd, in north-east British Columbia, which had been deemed of “critical spiritual and cultural importance” by the community.

Last summer, the Energy and Mines Ministry issued mining permits to Canadian Kailuan Dehua Mines – a Chinese-backed mining company – for its Gething project, authorising the company to remove 100 000 t of material, transport 15 000 t of coal and construct the main components of a mine that would operate for about 30 years.

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The LNG race: The lessons Canada can learn from Australia – by Iain Marlow and Brent Jang (Globe and Mail – April 12, 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.

GLADSTONE, AUSTRALIA and VANCOUVER – On a warm evening in late February, on an island just off the coast of eastern Australia, workers started to pour the concrete roof of an enormous liquefied natural gas tank that stretches 90 metres in circumference and rises 10 storeys into the sky.

The workers toil away late at night to avoid the searing heat of Australia’s late summer sun. They had recently built the roof for an identical adjacent container, both part of the $24.7-billion Australian ($25.5-billion Canadian) joint venture Australia Pacific LNG, owned by American oil and gas firm ConocoPhillips Co., Australian energy giant Origin and China’s state-owned Sinopec.

The two enormous tanks will hold natural gas tapped from the deep coal beds further inland and piped hundreds of kilometres to the LNG export terminal on Queensland’s Curtis Island. Facing the sheltered harbour of the industrial port city of Gladstone, the gas will be chilled until it condenses to one-six-hundredth of its original size – essentially from the size of a beach ball down to a table tennis ball – making it possible to load the liquid gas onto LNG carriers with enormous domed tanks and ship it off to the surging economies of Asia.

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Renewables Aren’t Enough. Clean Coal Is the Future – by Charles C. Mann (Wired Magazine – March 25, 2014)

http://www.wired.com/

Proof that good things don’t always come in nice packages can be found by taking the fast train from Beijing to Tianjin and then driving to the coast. Tianjin, China’s third-biggest city, originated as Beijing’s port on the Yellow Sea. But in recent years Tianjin has reclaimed so much of its muddy, unstable shoreline that the city has effectively moved inland and a new, crazily active port has sprung up at the water’s edge.

In this hyper-industrialized zone, its highways choked with trucks, stand scores of factories and utility plants, each a mass of pipes, reactors, valves, vents, retorts, crackers, blowers, chimneys, and distillation towers—the sort of facility James Cameron might have lingered over, musing, on his way to film the climax of Terminator 2.

Among these edifices, just as big and almost as anonymous as its neighbors, is a structure called GreenGen, built by China Huaneng Group, a giant state-owned electric utility, in collaboration with half a dozen other firms, various branches of the Chinese government, and, importantly, Peabody Energy, a Missouri firm that is the world’s biggest private coal company.

By Western standards, GreenGen is a secretive place; weeks of repeated requests for interviews and a tour met with no reply.

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Local mining manufacturer sold to U.S.-based company – by Staff (Sudbury Northern Life – April 13, 2014)

http://www.northernlife.ca/

Joy Global buys Lively-based Mining Technologies Int. for $51M

A major mining manufacturer in Greater Sudbury has been sold to a international mining company headquartered in Milwaukee, Wis. Joy Global Inc. announced Friday it was buying Mining Technologies International for $51 million Cdn. MTI, which is based in Lively but has offices across Canada and the U.S., manufactures underground mining equipment for North American markets. It employs about 250 people.

MTI is “a world leading supplier of raise bore drilling consumables,” Joy Global said in its news release. “The company is acquiring substantially all of the assets associated with MTI’s hard rock drilling, loaders, dump trucks, shaft sinking, and raise bore product lines.”

MTI’s revenues associated with those product lines was about $90 million U.S. in 2013. The deal should be complete with 90 days, Joy Global said.

“This acquisition represents an exciting opportunity as we execute on our growth strategy to expand our underground mining product lines into the hard rock markets including nickel, potash, palladium, platinum, gold and copper,” said Ted Doheny, Joy Global’s president and CEO, in the release.

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Ontera – The Liberal Anchor – by Phil Koning (Northern Ontario – Political Issues Blog – April 13, 2014)

http://northernontariopoliticalissues.blogspot.ca/

After two more years of turmoil at the hands of the Liberal government, ONTC has suffered another debilitating attack, by a party eager to appease the corporate world. The Liberal party is trying to convince the corporate world they have the ability and discipline to govern after their unbelievable indifference to the cost of gas plant relocation’s and subsequent coverup. The fact that Ontera is being gifted to Bell as the result of a process defined by the problems the passenger and freight rail divisions have endured over the past two decades defies any logic or grasp of good government policy.

Although we do not know the details of the proposed firesale, and likely never will, it is hard to believe that Bell will even maintain service levels in the marginal areas that Ontera has provided service, let along protect price levels with a clear monopoly in the North.

So, with the absence of any reason that makes sense in providing good government we are left to speculate why the Liberals have headed down another road to self destruction.

The creation of the new Development corporation could be a clue. Why the Ring of Fire needs a completely new corporation with all the cost that goes along with that, to develop the infrastructure for the mining industry is a secret known only to the Liberal strategists.

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NEWS RELEASE: IMII, Mitacs and U of S Partner to Lead Minerals Industry Innovation in Canada

SASKATOON, SASKATCHEWAN–(Marketwired – April 11, 2014) – Saskatchewan’s International Minerals Innovation Institute (IMII), the national research and training organization Mitacs, and University of Saskatchewan are partnering on a novel research and training initiative through an investment valued at more than $600,000.

The Mitacs Industry Executive in Residence-Minerals (MIER-Minerals) will identify and create new research initiatives that will lead to innovation in the minerals sector, strengthening companies and enhancing Canada’s economy.

The MIER-Minerals is the first of several such positions Mitacs will support nationally across various industry sectors. The goal is to support innovation, research and training to enhance the global competitiveness of these industries and encourage collaboration between companies and universities across Canada.

Engin Özberk, IMII Executive Director and Senior Technical Advisor, will assume the role of the MIER-Minerals at the U of S.

“With more than 40 years of experience and national leadership in the minerals research and innovation sector and strong relationships with Saskatchewan’s leading potash, uranium and other minerals companies, Özberk is ideally positioned to catalyze industry-researcher collaborations for a world-class minerals industry,” said Karen Chad, U of S Vice-President Research.

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UPDATE 4-Osisko takeover battle heats up as Goldcorp raises offer – by Allison Martell and Nicole Mordant (Reuters U.S. – April 10, 2014)

http://www.reuters.com/

Osisko Mining Corp on Thursday, squeaking above a white knight bid by Yamana Gold Inc and heightening a bidding war that has helped inject life into a depressed gold mining sector.

Vancouver-based Goldcorp, the world’s second-biggest gold miner by market value, said early on Thursday it increased its offer for Osisko by some 38 percent to about C$3.6 billion ($3.3 billion), or C$7.65 a share.

Osisko is a smaller Canadian gold miner with one producing mine, Canadian Malartic in Quebec. The mine is an attractive asset as it is large and low-cost and located in a stable political jurisdiction.

Goldcorp shares fell nearly 4 percent following the news, reducing the value of its cash-and-stock bid to around C$7.47 a share. Still, the offer remained around 4 percent higher than Yamana’s cash-and-shares offer, based on analysts’ estimates.

Yamana, another Canadian gold miner, launched a complex offer for 50 percent of Osisko’s assets last week. It said at the time that its offer was valued at C$7.60 a share although analysts have pegged it lower than that. Some Osisko shareholders said the new Goldcorp bid was no blockbuster.

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Women in SA fare best at top level of mining companies – by Charlotte Mathews (Business Day Live – April 11, 2014)

http://www.bdlive.co.za/

WOMEN are better represented in executive management and board committees in the biggest South African mining companies than in any other country’s mining companies, according to a PwC survey released on Thursday.

Women made up 23.8%, or almost a quarter, of executive management among South African mining companies in the world’s top 100, compared with the next-highest country, Canada at 14.8%. South Africa had the highest proportion of women on board committees in the top 500 mining companies, at 21.3%, showing they are actively involved. The US was next highest at 8.7%.

It is a positive indicator for an industry that is still criticised by the government and unions for failing to make much progress in changing its apartheid legacy.

The Mining Charter, which mining companies must meet to acquire and retain mining licences, requires that 10% of employees be women this year.

PwC director for human resources services in Southern Africa Gerald Seegers said the enforcement of the charter was probably the main reason South Africa was ahead in this respect.

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Stornoway lands $944M financing agreement to build Renard diamond mine – by Alisha Hiyate (Mining Markets – April 10, 2014)

http://www.miningmarkets.ca/

Stornoway Diamond (TSX: SWY) has lined up a $944-million financing deal to build its Renard diamond mine in Quebec. The binding agreement signed with three parties constitutes the largest ever project financing package for a publicly listed diamond company.

The complex deal involves debt, equity and streaming components, and involves funding from the Quebec government, a private equity firm, an institutional fund, and an equipment manufacturer. The company expects to start construction in June, plant commissioning in the third quarter of 2016, and commercial production in the second quarter of 2017.

Private equity firm Orion Co-Investments will provide US$360 million (C$396 million): US$110-million in equity financing; US$200 million for a 16% streaming interest; and US$50 million in a 7-year, unsecured convertible loan with an interest rate of 6.25%.

Resources Quebec, a subsidiary of provincial agency Investissement Québec, will provide $220 million: $100 million in equity financing; $100 million in a 10-year senior secured loan at an interest rate of prime plus 4.75%; and another $20 million in a senior secured loan for credit overrun facilities.

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Holcim-Lafarge cement mega-merger to be felt in Canada – by Nicolas Van Praet (National Post – April 8, 2014)

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

MONTREAL – Holcim Ltd. and Lafarge SA confirmed they will merge to form the world’s biggest cement maker in a deal with significant market concentration implications in Canada and other countries.

The two companies are already among the world’s largest suppliers of cement, crushed stone and sand and gravel. In combining into a new producer with annual revenue of US$40-billion, management of the two companies believe they will be required to sell assets representing about 18% of that revenue to satisfy competition regulators.

In Canada, Lafarge and Holcim together employ about 9,000 people and hold about half of the cement market, according to a 2008 estimate published by the Cement Association of Canada. The industry is centered in Ontario and Quebec.

Rivals such as Bolton, Ont.-based James Dick Construction Ltd. said they were surprised by the announcement, but added it could create an opportunity to grow their own businesses by buying what Lafarge and Holcim are forced to discard. Dick specializes in so-called aggregates, which are granular construction materials such as gravel and sand.

“I don’t think it’s bad news. It’ll open it up a bit for us,” company president Jim Dick said Monday. “We would expand if it makes sense.”

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Conflict Minerals in the DRC: Why Western Legislation Isn’t the Only Answer – by Marie Lamensch (Open Canada.org – April 10, 2014)

http://opencanada.org/

At a recent conference titled, “A Conflict of Interests: Canadian Mining in the Congo” organized by STAND McGill, the most debated topic of the day was the role and impact of U.S. and Canadian legislation in curbing violence caused by so-called conflict minerals in the Great Lakes Region of sub-Saharan Africa. These sentiments beg the questions of whether national legislation is actually having an effect on Congolese people or whether it is simply making companies and consumers feel better about their behaviour.

One common misconception about the cycle of violence in the Democratic Republic of Congo (DRC) is that it is caused, in part at least, by conflict minerals. However, it is important to understand that the illegal exploitation minerals is an effect of the war. This misunderstanding about the roots of long-standing conflict threatens to lead to flawed responses as to whether action in the United States or Canada can affect the situation on the ground.
So let’s start with the basics.

What has been coined by French historian Gerard Prunier as “Africa’s World War” finds its roots in two successive wars—not to mention its colonial past as a particularly brutal example of heavy-handed Belgian colonialism. In 1996, Rwanda invaded the eastern DRC to oppose extremist Hutu militias responsible for the 1994 Rwandan genocide who had fled there. Aided by Rwanda, Congolese rebels led by Laurent Kabila took the opportunity to end the reign of Joseph Mobutu—who had been in power since 1965.

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BHP polishes up nickel unit as demerger talk swirls – by James Regan (Reuters India – April 11, 2014)

http://in.reuters.com/

SYDNEY, April 11 (Reuters) – Breakthroughs in the way BHP Billiton processes nickel ores could help the world’s biggest miner find a buyer for its ailing Nickel West division in Australia.

Nickel West is among businesses that also include aluminium and manganese which BHP has grouped into a single division set aside in 2012 for underperforming assets deemed non-core to its portfolio. BHP has said it is actively studying the “next phase of simplification” of the company but declined to comment on media reports that senior executives favoured a demerger.

Chief Executive Andrew Mackenzie has said BHP will focus on its large iron ore, copper, coal and petroleum businesses, while selling off smaller, less profitable operations. Macquarie Bank last month in a research note put a value of $4.6 billion on the nickel assets.

Improvements in the way BHP mines nickel together with better market dynamics and exploration successes could save Nickel West from closure.

A programme at Nickel West to extract full value from ore that would otherwise be uneconomic to treat due to high contents of talc is opening up more of BHP’s rich Mount Keith and Yakabindie deposits in Western Australia for mining, enhancing the potential appeal to outside investors.

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Platinum strike could be godsend for South African pgm miners – by Lawrence Williams (Mineweb.com – April 11, 2014)

http://www.mineweb.com/

South Africa’s platinum strike could be a blessing in disguise for mining companies making the case for closures of unprofitable operations.

LONDON (MINEWEB) – One doesn’t have to be too much of a cynic to feel that the 11 week platinum miners strike primarily affecting the underground mines around Rustenburg may prove to be be a long term positive game changer for the main platinum mining companies – and Anglo American Platinum (Amplats) in particular. The world’s largest platinum miner was already struggling with the profitability of its highly labour intensive Rustenburg area platinum mines and had already proposed a mine and shaft closure programme to try and rationalise its operations and bring them into decent profitability.

Indeed its proposals of a little over a year ago involved the potential rationalisation of its Rustenburg operations into three mines – Thembelani, Siphumelele and Bathopele which between them have five shaft systems primarily working the narrow highish grade Merensky reef systems.

This would mean putting two more mines – Khuseleka and Khomanani – with four shaft systems, on long term care and maintenance with the possible loss of up to 14,000 jobs, although the company said it would have hoped to replace most of these over time with initiatives to generate new non-mining business opportunities in the area.

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Goldcorp Inc hikes hostile bid by $1-billion, but Osisko Mining Corp. still favours Yamana – by Peter Koven (National Post – April 11, 2014)

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

TORONTO – The shareholders of Osisko Mining Corp. face a tricky choice: take the clean takeover bid and walk away, or take a more complex deal with a disputed value that management firmly believes is better.

Goldcorp Inc. hiked its hostile bid for Montreal-based Osisko on Thursday to $3.6-billion, or $7.65 a share in cash and stock. The dollar value is roughly $1-billion more than Goldcorp offered in January, when its own share price was significantly lower.

That bid is going up against the multi-faceted transaction Osisko unveiled last week with Yamana Gold Inc., in which Yamana will buy 50% of Osisko’s assets and Osisko will receive funding from two pension funds. The result is that Osisko would distribute about $1-billion to shareholders while continuing to operate its flagship Canadian Malartic mine in Quebec.

To determine which offer is better, investors must decide what they think the new Osisko would be worth after the Yamana transaction. And that is a source of considerable debate. When Osisko announced the deal with Yamana, it assumed a valuation for the new Osisko (“Osisko 2” or “O2”) of $3.35 a share. That gave the whole transaction a value of $7.60 a share, which is very close to Goldcorp’s bid.

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