Republic of Mining

Canada’s refinery lobby group is now giving up on building new plants – by Jeff Lewis (National Post – November 28, 2013)

November 28, 2013

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

CALGARY – The main lobby group for Canada’s refinery sector is giving up on building new plants, even as North American oil production surges to record levels.

It’s the latest development in a debate that is older than Canada itself: Whether to refine or otherwise add value to extracted resources at times when it is more profitable to export them in their crudest forms. Federal New Democrats and groups such as the Alberta Federation of Labour have long opposed projects such as TransCanada Corp.’s contentious Keystone XL pipeline on grounds that it will ship domestic processing jobs to the United States.

But rising crude production in northern Alberta and the American Midwest doesn’t imply Canada should build costly refineries at home, said Peter Boag, president of the Canadian Fuels Association, which represents producing companies such as Suncor Energy Inc., Imperial Oil Ltd., Chevron Canada and Royal Dutch Shell Plc.

“It’s not just, as some people would have it, a supply-driven issue,” Mr. Boag said in an interview Wednesday. “The other part of it is where’s the demand for the refined product?”

CBC Radio Sudbury Morning North Host Markus Schwabe Interviews Queens Park Reporter Robert Fisher About Ring of Fire – November 28, 2013)

November 28, 2013

http://www.cbc.ca/sudbury/ Report from Queen’s Park (Nov 28) In this edition of Report from Queen’s Park, our Provincial Affairs Specialist Robert Fisher looks at how the Ontario Legislature has been handling issues that relate to the Ring of Fire mineral deposit. Click here for the radio interview: http://www.cbc.ca/morningnorth/past-episodes/2013/11/28/report-from-queens-park-nov-28/

Opinion: Critics of coal shipments are misinformed – by Mark Gordienko, Steve Hunt, Brian Cochrane and Tom Sigurdson (Vancouver Sun – November 27, 2013)

November 28, 2013

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

B.C. can’t afford to lose 26,000 jobs supported by the coal industry

Mark Gordienko is President, International Longshore and Warehouse Union Canada; Steve Hunt is Director, United Steel Workers District 3 [Western Canada]; Brian Cochrane is Business Manager, International Union of Operating Engineers Local 115; Tom Sigurdson is Executive Director, B.C. Building Trades.

Our unions’ members are responsible for mining and transporting metallurgical coal from British Columbia to markets overseas. So we welcome the positive Environmental Impact Assessment released Nov. 18 by Port Metro Vancouver on the proposed Fraser Surrey Docks expansion.

The study, by experts such as Dr. Leonard Ritter, Professor Emeritus of Toxicology at the University of Guelph’s School of Environmental Sciences, shows that many complaints by environmental groups and others are misinformed or exaggerated.

The Environmental Impact Assessment states: “The project is not likely to cause significant adverse environmental, socio-economic, or health effects, taking into account the implementation of the main risk mitigation measures described above, in addition to mitigation measures, construction and operation management plans, best management and standard practices.”

What’s at stake in the Ring of Fire – CBC Radio One – Ontario Today with Rita Celli (November 28, 2013)

November 28, 2013

http://www.cbc.ca/ottawa/ This mineral deposit is supposed to be a windfall for Ontario with billions of dollars worth of royalties and thousands of jobs. But the biggest mining player has put development on ice indefinitely. What’s at stake in the Ring of Fire for you? Click here to listen to the radio program: http://www.cbc.ca/ontariotoday/2013/11/27/thursday-whats-a-stake-in-the-ring-of-fire/

Australia [mining] business spending shows life, in big relief – by Wayne Cole (Reuters India – November 28, 2013)

November 28, 2013

http://in.reuters.com/

SYDNEY – (Reuters) – Australia’s decade-long boom in mining investment is not slowing nearly as quickly as many feared, while other sectors are beefing up spending at a rate that should greatly ease concerns about the economic outlook.

A closely-watched report from the Australian Bureau of Statistics out on Thursday showed businesses had upgraded their spending plans for 2013/14 well above expectations, with even once-laggard industries grasping the spending nettle.

That will be a huge relief to the Reserve Bank of Australia (RBA) which has been betting the farm on investment spreading outside of just mining.

“It’s consistent with other sectors starting to take over as drivers of the economy as the mining sector slows,” said Shane Oliver, chief economist at AMP Capital Investors.

“In a year’s time, we’re probably looking at growth heading back to around 3 percent, which is more optimistic that what the RBA was expressing,” he added.

Editorial: The Cliffs Notes on the Ring of Fire – by John Cumming (Northern Miner – November 27, 2013)

November 28, 2013

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists. jcumming@northernminer.com

Dear Ontario, there’s been way too much off-base and irresponsible commentary in the province about Cliffs Natural Resources’ decision to shelve its Ring of Fire Chromite project. And so, in the spirit of afternoon reality TV and the very best perma-tanned psychiatrists with books to peddle, it’s time we both sat down and you got a little straight talk.

Cliffs is just not that into you — As with every breakup, Cliffs’ curt parting words masked so many true feelings and motivations. In all its various pronouncements this year regarding its work suspensions, Cliffs pinned all the blame on outside parties, and was silent on the biggest reason of all for the split: chromite is a lousy business to get into right now, and its Ring of Fire development proposal, as currently conceived, is uneconomic.

Who did Cliffs blame instead? The provincial government for “delays” in the environmental approval process and other agreements, and for its high energy rates. KWG Resources for daring to exert rights on its rival claims; Local First Nations for launching judicial challenges to development; and even the region itself, for being so remote and lacking in infrastructure.

Shrinking mining budgets will spark government disputes – Chatham House (Mineweb.com – November 28, 2013)

November 28, 2013

http://www.mineweb.com/

“Future disputes have significant ramifications not only for the economic and political stability of the countries concerned but also for companies’ assets and reputations,” says a new Chatham House report.

RENO (MINEWEB) – A series of bitter disputes in recent years—some of which have involved lengthy litigation, project cancellation or even expropriation—has unsettled mining sector investors and global metals markets, says the Chatham House Report, Conflict and Coexistence in the Extractive Industries.

Over the last decade, more disputes involving mining companies or oil and gas have gone to international arbitration. Between 2001 and 2010 arbitration cases for mining increased nearly fourfold, says the report.

Not so long ago, experts suggested expropriations of mining projects would become a thing of the past, but nationalizations involving Rio Tinto in Guinea and First Quantum Minerals in the Democratic Republic and of the Congo have cost investors billions.

Zeppelins Seen Hauling Caterpillars to Mine Siberia: Commodities – by Firat Kayakiran & Thomas Biesheuvel (Bloomberg News – November 27, 2013)

November 28, 2013

http://www.bloomberg.com/

Robin Young of Amur Minerals Corp. wants to dig for nickel and copper in Siberia where forbidding winters and poor roads make it tough to haul in equipment. His best option: fly it in with zeppelins.

Otherwise the London-traded explorer would have to spend about $150 million building a 350-kilometer (218-mile) road to truck in heavy construction gear, Chief Executive Officer Young said in an interview. Peter Hambro, executive chairman of gold producer Petropavlovsk Plc, said he invested in a maker of the airships and foresees the mining industry adopting them.

“To build a bridge to take a Toyota Land Cruiser isn’t horrifically expensive,” Hambro said. “To build a bridge that will take a Caterpillar 777 is very, very expensive,” he said, referring to the 87-ton dump truck used in mines.

Zeppelin and blimp manufacturers need mining contracts to creep back to life, 76 years after the Hindenburg burned and crashed in New Jersey, ending most buyer interest for decades.

Hoverbarge proposed for year-round access to Ring of Fire – by Norm Tollinsky (Sudbury Mining Solutions Journal – December 1, 2013)

November 28, 2013

Norm Tollinsky is editor of Sudbury Mining Solutions Journal, a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury. This column is from the December, 2013 issue.

CEMI proposes novel means of transportation for construction material and equipment

While the battle over the mode and route of a fixed transportation link to Northern Ontario’s mineral- rich Ring of Fire drags on, a novel means of transporting construction material and equipment into the remote, waterlogged James Bay Lowlands is being proposed by the Sudbury-based Centre for Excellence in Mining Innovation (CEMI).

Hoverbarges, which travel on a cushion of air, can carry hundreds of tonnes of material year-round unlike ice roads, which can only be used seasonally, according to CEMI president Doug Morrison.

It will take years to build a road or railway to Cliffs Natural Resources’ massive chromite discovery and Noront Resources’ proposed nickel and PGM project 330 kilometres north of Ontario’s existing transportation infrastructure.

Mining suspension dubbed ‘Major setback’ – by Rob Learn (North Bay Nipissing News – November 27, 2013)

November 28, 2013

http://www.northbaynipissing.com/northbaynipissing/

NIPISSING – If Cliffs Resources and the provincial government are playing poker over the Ring of Fire development, Nipissing MPP Vic Fedeli says the mining giant has decided to fold.

“It’s a major blow and a major setback for Ontario,” said the Progressive Conservative member. “…(Cliffs) have closed their Thunder Bay and Toronto offices. This is not a ploy… They have no confidence in this provincial government. They have waited for five years and there is nothing.”

Fedeli’s comments come on the heels of the announcement last week from Cliffs Resources that it was halting all work towards their Ring of Fire plans to develop a chromite mine in what has been called the biggest mining discovery in Canada in a century.

The consequences for Nipissing region could be devastating. “The North Bay area is involved in the exploration, the delineation of the ore body, the design of the mines and supplying the mines should they go forward. This is devastating,” said Fedeli.

NEWS RELEASE: The Canadian mining industry supports federal government’s new trade strategy

November 28, 2013

Strategy will help Canada compete for investment and will support Canadian mining abroad

OTTAWA, Nov. 27, 2013 /CNW/ – The Mining Association of Canada (MAC) applauds the Government of Canada on its new trade strategy, the Global Markets Action Plan, announced by Minister Ed Fast this morning.

“The Canadian mining industry welcomes the new Global Markets Action Plan and we look forward to working with the Government of Canada to implement it, particularly the development of the Extractive Sector Strategy,” said Pierre Gratton, MAC’s President and CEO. “A comprehensive trade strategy that focuses on priority markets with significant opportunities for Canadian business is critical for Canada to compete against other countries for highly-coveted mining investment and will help give our companies an edge in accessing capital and mineral resources globally.”

The Global Markets Action Plan includes several elements that will help strengthen Canadian mining abroad by:

Reconfirming the Government of Canada’s focus on completing trade agreements with priority markets, including Free Trade Agreements and Foreign Investment Promotion and Protection Agreements.

Miner Cameco Trains Canadian Aboriginals to Beat Shortage – by Greg Quinn (Bloomberg News – November 27, 2013)

November 28, 2013

http://www.bloomberg.com/

Phil Morin is in demand. Mining companies are recruiting worldwide to find skilled workers like him they need to develop projects in remote parts of Canada.

The problem, Morin says, is that they’re hunting in the wrong place. They could more easily solve their shortage if they looked closer to home, hiring and training aboriginals like him, the industrial mechanic said.

Cameco Corp. hired Morin 13 years ago to drive a truck between uranium mines and mills in northern Saskatchewan. With company training, he now has certifications for industrial mechanics and electrical work. About half the company’s 3,300 workforce at its Saskatchewan sites are natives, who are also known as First Nations or Indians.

“That opens a lot of doors not only for yourself but your family’s future, your children’s education,” Morin, 41, who is also head of the local union, said in a phone interview. “I would love to see this grow right across Canada and to help with aboriginal people.”

Cameco is implementing its policies of training and hiring aboriginal workers as the country prepares for C$650 billion ($616 billion) of resource development over the next decade.

Stop pointing fingers over Cliffs: Matichuk – by Darren MacDonald (Sudbury Northern Life – November 27, 2013)

November 28, 2013

http://www.northernlife.ca/

Urges major players to co-operate to get Ring of Fire back on track

Greater Sudbury Mayor Marianne Matichuk says she’s hoping for some announcements soon from the provincial government that will help get the stalled Ring of Fire project back on track.

Matichuk said Ontario Premier Kathleen Wynne called her Tuesday afternoon to tell her the province is doing everything it can to deal with the problems delaying the $60-billion project.

“I’ve been assured that they are working on that right now, and we’ll be hearing announcements from the government soon,” Matichuk said at Tuesday’s city council meeting. “I’ve also been assured by Premier Wynne that she will keep our city informed about the progress.

“I told her everybody needs to basically stop pointing fingers, shake hands and start making deals because we need to get this done.”

Feds reluctant partners on Ring of Fire: Gravelle – by Staff (Northern Ontario Business – November 27, 2013)

November 28, 2013

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.

The Ontario government’s repeated calls for Ottawa to buy into development of the Ring of Fire appear to have gone straight to voice mail.

Northern Development and Mines Minister Michael Gravelle said it’s time for the feds to put its money where its mouth is by working with Queen’s Park on infrastructure and fully realize the 100-year potential of the mining district.

Gravelle fired off a Nov. 24 letter to FedNor Minister Greg Rickford, his federal Ring of Fire counterpart, asking that Ottawa participate in the province’s newly created Ring of Fire corporation.

“You’ve stated repeatedly that you know the significance of this project but we have yet to see that turn into action,” wrote Gravelle, in alluding to past statements by the Harper government that resource development is essential to Canada’s long-term economic growth.

Northern Manitoba chiefs representing First Nations on province’s new Mining Advisory Counc – by Ian Graham (Thompson Citizen – November 15, 2013)

November 28, 2013

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.

Several Northern Manitoba First Nation chiefs as well as mining industry representatives from companies such as Vale, Hudbay Minerals and San Gold are members of Manitoba’s new Mining Advisory Council which aims to help First Nations benefit from the development of new mines, Mineral Resources Minister Dave Chomiak announced Nov. 8.

“First Nations that want to participate will be partners every step of the way as new mines are brought on line and they will share in the benefits of resource development,” said Chomiak in a press release. “There will be new training opportunities, good jobs, revenue sharing and a range of social and economic benefits for First nations communities. This will also send an important message to those who want to invest in Manitoba’s mining sector that we’re open for business.

First Nations representatives on the Mining Advisory Council include co-chairs Chief Donovan Fontaine of Sagkeeng First Nation and Chief Ron Evans of Norway House Cree Nation, along with Chief Philip Buck of Mosakahiken Cree Nation, Chief Clarence Easter of Chemawawin Cree Nation, Chief Jerry Primrose of Nisichawayasihk Cree Nation, Chief Andrew Colomb of Marcel Colomb Cree Nation, Chief Gilbert Andrews of God’s Lake First Nation, Keewatin Tribal Council Tribal Grand Chief Irvin Sinclair and Opaskwayak Cree Nation Chief Michael Constant.