Republic of Mining

Pembina report on Energy East pipeline drives logic off the road – by Peter Foster (National Post – February 7, 2014)

February 7, 2014

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

The wind and solar boondoggles that Pembina loves are raising prices to consumers and industry while doing exactly zip for the climate

I suggested in this space on Wednesday that the U.S. State Department’s final Environmental Impact Statement on the Keystone XL pipeline was optimistic — even misleading — in suggesting that “Approval or denial of any one crude oil transport project… is unlikely to significantly impact the rate of extraction in the oil sands…”

That’s because the diehard opponents of the oil sands are standing across not just “any one” project, but all of them, and certainly the major pipeline proposals: Enbridge’s Northern Gateway, the expansion of the TransMountain system, and TransCanada’s Energy East proposal.

Sure enough, confirmation of this perspective was provided almost immediately this week when the Pembina Institute – a leading local branch plant of the global environmental NGO cabal and a shill for the renewables industry — produced a report claiming that Energy East threatened “significant” increased emissions of greenhouse gas gases, with “major environmental ramifications.”

Saskatchewan Dene group wants more consultation on Areva’s Kiggavik project – by Sarah Rogers (Nunatsiaq Online.com – February 6, 2014)

February 7, 2014

http://www.nunatsiaqonline.ca/

Project proposes flying uranium to northern Saskatchewan

Athabasca Dene in northern Saskatchewan say they have not been properly consulted on Areva’s Kiggavik uranium project near Baker Lake. Although the Kiggavik site is hundreds of kilometres away from their traditional lands, the Athabasca Dene oppose the proposed transportation of milled uranium — known as yellowcake — by plane from the mine to northern Saskatchewan.

Areva proposes to fly some 5,000 tonnes of yellowcake each year to Points North, Saskatchewan, where it would then be transported by truck or train.

In December 2013, the Athabasca Denesuline Né Né Land Corp., which represents First Nations in Black Lake, Fond du Lac and Hatchet Lake, passed a resolution opposing the transport of uranium over their territory.

In a letter addressed to the Nunavut Impact Review Board that same month, the corporation said Dene are worried about accidents and the potential damage to their local environment.

DEALTALK-M&A-shy mining majors eye junior partnerships to grow reserves – by Julie Gordon (Reuters U.K. – February 6, 2014)

February 7, 2014

http://uk.reuters.com/

VANCOUVER – (Reuters) – At a time when major miners have turned gun-shy on acquisitions after a rash of value-busting deals, two big players made it clear last week that they are still keen to partner with junior firms on high-quality, early-stage projects.

Under pressure from investors to retreat from large, capital-intensive projects, companies like Canada’s Teck Resources Ltd and Poland’s KGHM Polska Mied SA are looking to tiny exploration companies to secure future output.

Junior miners are likely to be receptive. Once able to tap retail investors when commodity prices were climbing, many juniors now find themselves locked out of capital markets and struggling to fund exploration programs or even just keep the lights on.

“We have billions of dollars in cash, ready to deploy, and are looking for opportunities,” said Teck’s chief executive Don Lindsay at an industry conference in Vancouver last week. “We are open for business and we want to partner.”

Lindsay’s comments echoed those made by the chief executive of KGHM International, KGHM’s global mining arm, just hours before, who also urged juniors to bring him their best projects.

Mandela’s Contribution to Mining – by Gavin du Venage and Joseph Kirschke (Engineering and Mining Journal – January 2014)

February 7, 2014

http://www.e-mj.com/

Last month, National Union of Mineworkers (NUM) leaders denounced South Africa’s mining companies for ignoring a day of mourning for Nelson Mandela’s funeral. Ironically, saddled with corruption, infighting and often voiceless workers, the NUM itself may be one of his struggle’s more unfortunate byproducts.

Still, since Mandela’s Anti-Apartheid campaign ended in 1994, it’s clear that were it not for South Africa’s heavy concentration of gold, diamonds and other metals, 46 years of white minority rule would likely have been impossible. Something he understood extremely well.

Indeed, a crucial element of Mandela’s decades-long fight was to free blacks from being indentured laborers in mines while ensuring they participated in the wealth the mines created. His greatest successes have included helping establish 1995’s Leon Commission, the country’s most comprehensive health and safety inquiry, and a mining-related Truth and Reconciliation Commission.

The discovery of diamonds, then gold, in the late 1800s flooded white fortune seekers into the country. Unlike mineral rushes elsewhere, however, this one proved sustainable.

At least eight dead in S.African gold mine accident – by Ed Cropley (Reuters India – February 6, 2014)

February 6, 2014

http://in.reuters.com/

JOHANNESBURG – (Reuters) – Rescuers recovered eight bodies and continued to search for another missing worker on Thursday after a fire and rock-fall at a Harmony Gold (HARJ.J) mine near Johannesburg, the worst accident in South Africa’s mines in nearly five years.

Mineral Resources Minister Susan Shabangu ordered an investigation into the incident at the Doornkop mine, 30 km west (20 miles) of the city, after initial reports that the fire was triggered by a small earthquake on Tuesday evening.

“The situation is deeply regrettable,” Shabangu said in a statement. “We must ensure that we do all we can to get to the bottom of what caused this incident in order to prevent similar occurrences in future.”

It is the most serious accident in South Africa’s mines since nine workers died in a rock fall at a platinum mine in July 2009. Shares in Harmony, South Africa’s third-largest bullion producer, fell 3 percent at the start of trade.

Rescue teams battled through smoke and debris nearly a mile underground on Wednesday to reach eight other miners who had managed to flee to a refuge bay equipped with a telephone and other survival gear. They were brought to the surface unharmed.

Friedland touts South African platinum play despite obstacles – by Geoffrey York (Globe and Mail – February 6, 2014)

February 6, 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.

CAPE TOWN, SOUTH AFRICA – Robert Friedland could not have chosen a less auspicious day for his latest bid to persuade investors to take a chance on an unorthodox mining dream. Mr. Friedland, the Canadian billionaire founder of Ivanhoe Mines Ltd., is planning a huge mine in South Africa’s famed platinum belt.

But even as he touted the project at Africa’s biggest mining conference, the platinum sector was besieged by a prolonged strike by 70,000 workers, with producers warning of escalating losses and the growing likelihood that the strike will lead to major restructuring and job cuts.

To make matters worse, South African miners are deeply worried by a planned overhaul of the country’s mining laws, which could force the producers of “strategic” minerals to limit their exports and sell their products at discounted prices to domestic companies.

Many of South Africa’s top mining executives were in a gloomy mood on Wednesday at the Mining Indaba conference, complaining of a hostile government and a poor investment climate.

NEWS RELEASE: Canadian mining equities down 45% year-over-year according to Q4 Canadian Mining Eye: EY

February 6, 2014

Sources available to offer insight on fourth quarter and year-end results

TORONTO, Feb. 6, 2014 /CNW/ – Canadian mining equities witnessed a 45% decrease in market capitalization over the course of 2013, according to EY’s Canadian Mining Eye: Q4 2013.

The index decreased 9% in Q4 alone as concerns around global economic growth and uncertainty surrounding the Federal Reserve stimulus program continued.

Declining metal prices also spurred significant write-downs in the value of assets across the sector. Companies were reluctant to raise equity capital on dilutive terms and witnessed less capital readily available in a soft market. Total proceeds raised were approximately $6.9b, down 49% compared to the same period in 2012.

Though these market forces are already setting the stage for a modest year of transaction activity, growth opportunities continue to exist for companies across the sector. In 2014, expect:

Rare Earths gloom seems to be lifting – Ecclestone – by Dorothy Kosich (Mineweb.com – February 6, 2014)

February 6, 2014

http://www.mineweb.com/

While rare earths have behaved more like scorched earth in recent years, Hallgarten’s Christopher Ecclestone suggests, “The nadir of the sector is now past.”

RENO (MINEWEB) – In analysis published Wednesday, Hallgarten & Company’s Christopher Ecclestone suggests, “The storm of the last two years has winnowed the wheat from the chaff (largely) in the REE space.”

“The two bulk producers managed to get into production after a titanic struggle and have been rewarded for their perseverance with relatively lowly market caps,” he noted, adding that the fact Lynas and Molycorp have started churning out light rare earths products “are undermining Chinese dominance in some metals.”

Meanwhile, “Tensions between Japan and China over disputed islands may yet be the touchpaper to set REEs and other specialty metals alight,” he speculated.

Nevertheless, Ecclestone suggested that “the behemoth properties with gargantuan capex budgets have gone the way of the brontosaurus.

Hopes of greater stability in wake of Quebec’s new Mining Act – by Henry Lazenby (MiningWeekly.com – February 5, 2014)

February 6, 2014

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

TORONTO (miningweekly.com) – After several years of proposed changes to Quebec’s Mining Act, it seems this saga of near Homeric-length is nearing its close. Where Bills 43, 79 and 14 all failed, Bill 70 to amend and modernise the Act was adopted on December 9, becoming effective a day later.

Commentators now hope the province’s mining sector will be able to get on with the business of doing business, and without having to look over its shoulder.

Many of the amendments contained in Bill 70 and now within the new Mining Act came as little surprise. This includes the need for those seeking to make a mining claim to notify the landowner concerned, and if appropriate any tenants, within 60 days of registering the claim.

If the claim is within municipal territory the claim holder must inform the landowner and municipality within 30 days. In addition, the claim holder must submit a report on the work achieved over the previous year and supply a schedule for the year ahead with the Mining Minister.

Quebec v. Labrador: natives and the hydropower sweepstakes – by Bill Gallagher (First Perspective – February 6, 2014)

February 6, 2014

http://www.firstperspective.ca/

In my book, “Resource Rulers: Fortune and Folly on Canada’s Road to Resources”, I posit that Quebec had already won a 10-year head start over Newfoundland & Labrador in the hydropower race to North American energy markets. Quebec’s strategic power-surge was cemented by the ‘Paix des Braves’ in 2002; universally regarded as a pivotal resource management legal arrangement that fully recognized the Crees as ‘Resource Rulers’ within their vast homeland containing the watersheds.

Conversely, Newfoundland, at the same time, was finally rebounding on its troubled Voisey’s Bay mining project; yet it was soon to find itself back in court fighting the Labrador Metis Nation and losing to them at the appellate level. In fact, the province had earlier lost at the appellate level to the Innu Nation on the Voisey’s Bay project; which loss had instigated a project shut down and stock drop (similar to what is playing out today in the Ring of Fire with Cliffs Natural Resources – in what is fast becoming an almost unbelievable case of history repeats!)

To no-one’s surprise, the announcement of the Muskrat Falls hydropower project in 2011 landed in an unsettled and charged Labrador native empowerment landscape. Both the Labrador Metis Nation (now called NunatuKavut) and the Nunatsiavut Government, launched repeated and sustained press releases and legal maneuvers to persuade the province and its crown utility (Nalcor) to address the pending impacts on their traditional lands.

South Africa a Hard Sell at Mining Bash (Reuters/Voice of America – February 5, 2014)

February 6, 2014

http://www.voanews.com/

CAPE TOWN — South Africa hosts the annual Africa mining conference but the country is a hard sell at its own party.

Outside investors are increasingly wary of South Africa’s mining sector and extra salt is being rubbed into its reputational wound as the conference coincides with a massive strike in its platinum shafts. Foreign flight is a huge concern, not least because the industry needs outside investment to sustain itself.

“Because of the capital-intensive nature of the mining industry and the fact that South Africa doesn’t have sufficient domestic savings, the industry relies heavily on foreign investment,” said Paul Miller, investment banker for mining and metals at Nedbank Capital.

“In order to attract that investment we need to provide a competitive return,” he said. The hardening perception is that the returns in South Africa’s mines are too low and the risks too high. Around 45 percent of the country’s platinum operations are losing money, according to the industry.

Bankers and executives interviewed by Reuters at the conference all said foreign investors uniformly raised a number of concerns about South Africa, starting with labor.

European Union seeks to stem use of conflict minerals – by Francesco Guarascio (Reuters U.S. – February 5, 2014)

February 6, 2014

http://www.reuters.com/

BRUSSELS, Feb 5 (Reuters) – The EU’s trade chief will present a voluntary scheme in March aimed at stemming the import of minerals from conflict zones and prevent mining them from financing war and strife, EU officials said on Wednesday.

Karel De Gucht’s proposal to the European Commission, the EU executive, will encompass gold, tungsten, tantalum and tin, in a bid to pressure importers to classify them as coming from areas free of conflict.

“Work is currently underway to prepare a proposal … for a comprehensive EU framework on responsible mineral sourcing in line with international guidelines,” said EU Trade spokesman John Clancy.

The United States defines the conflict mineral zone as the Democratic Republic of Congo and neighboring countries including Angola and South Sudan. They make up 17 percent of the global production of tantalum, 4 percent of the global production of tin, 3 percent of tungsten and 2 percent of gold.

Alberta’s new energy minister Diana McQueen looking outside North America for oilpatch alliances – by Claudia Cattaneo(National Post – February 6, 2014)

February 6, 2014

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

As the U.S. State Department was preparing to release the results of yet another review into the Keystone XL pipeline last week, Alberta’s new energy minister, Diana McQueen, was speaking to a group of Japanese energy investors about the need to take the relationship to the next level.

“As you know, in Alberta we are blessed with abundant natural resources, including oil, oil sands, natural gas and coal,” Ms. McQueen said at a meeting in Calgary of the Japan Alberta Business Association, whose members include major Japanese companies keen to build infrastructure to move Alberta energy to Japan.

“New projects are being added every year, and oil production is expected to increase significantly over the next decades. You already know this, because you are active in various parts of the oil and gas value chain Canada. However, there is still a lot of room for our relationship to grow.” The speech was standard fare, but it illustrates how the most important energy job in the country has changed.

Poo, power, profits and the cult of green investment – by Terence Corcoran (National Post – February 6, 2014)

February 6, 2014

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

From Toronto’s zoo poo bonds the World Bank’s fossil fuel divestment plan to green bonds and Muscrat Falls, green investment is uneconomic

At the high-powered World Economic Forum meeting in Davos last week, the head of the World Bank, Jim Yong Kim, called on the world’s top investors and pension funds to “divest” their fossil fuel stocks and bonds and move cash into green technologies. Canada contributes more than $400-million a year to the World Bank and holds 2.43% voting power: Was that voting power cast in favour of Mr. Kim’s “get out of oil and gas” campaign, in contradiction to the Canadian government’s hunger for fossil fuel expansion and investment?

Not that it matters. The World Bank’s anti-fossil fuel effort, and its specific endorsement of the burgeoning international movement to promote fossil fuel divestment, is part of a globe-spanning effort that encompasses a vast range of initiatives.

Canada is a leader in the field, with many projects underway. These range from the growing issuance of Green Bonds to the building of giant multi-billion-dollar so-called green energy projects.