Republic of Mining

Poor planning by Liberals derailed Ring of Fire: Horwath – by Darren MacDonald (Sudbury Northern Life – January 23, 2014)

January 23, 2014

http://www.northernlife.ca/

NDP leader says unlike other provinces, Ontario lacks coherent policy for Far North development

Poor planning by Ontario’s governing Liberals has played a major role in the problems plaguing the development of the Ring of Fire, the leader of the province’s New Democrats said in Sudbury this week.

“The Liberals were doing a lot of announcements, a lot of ribbon cutting and making a lot of hay, but weren’t doing the behind-the-scenes work that needed to be done to keep that Cliffs promise alive,” Andrea Horwath said Wednesday, after she toured Stack Brewing with Sudbury NDP candidate Joe Cimino.

Development of the vast chromite deposits in the Ring stalled in 2013, with Cliffs Natural Resources announcing it was suspending work because of a series of delays in getting environmental assessments and determining exactly how ore will be transported from the remote site in northwestern Ontario.

Cliffs is the largest stakeholder in the area, and planned to invest $3.3 billion developing deposits worth an estimated $60 billion.

SPECIAL REPORT-How Caterpillar got bulldozed in China – by Clare Baldwin and John Ruwitch (Reuters U.S. – January 23, 2014)

January 23, 2014

http://www.reuters.com/

ZHENGZHOU, China, Jan. 23 (Reuters) – Asia’s top mergers and acquisitions bankers gathered two years ago at the swanky Island Shangri La in Hong Kong to celebrate the top deals of 2012. As the transactions were being toasted, one was unraveling.

Advisers on Caterpillar Inc’s $677 million purchase of ERA Mining Machinery Ltd picked up an award for cross-border deal of the year. The purchase was billed as a coup for Caterpillar, the world’s top maker of tractors and excavators. ERA was the holding company for Zhengzhou Siwei Mechanical & Electrical Equipment Manufacturing Co Ltd, one of China’s biggest makers of hydraulic coal-mine roof supports. Siwei would help Caterpillar gain traction in the world’s largest coal industry.

“Siwei was going to be our Chinese business card,” said a person with direct knowledge of Caterpillar’s strategy.

The night of the awards on Nov. 16 three Caterpillar lawyers were wrapping up an eight-hour grilling of Wang Fu, Siwei’s chairman. Major accounting problems had been unearthed at Siwei headquarters in the gritty Chinese city of Zhengzhou. Two months later, on Jan. 18, 2013, Caterpillar said it had discovered “deliberate, multi-year, coordinated accounting misconduct” at Siwei.

NEWS RELEASE: ROM’s New Interactive Gallery Explores The World Of Modern Mining

January 23, 2014

Barrick Gold Corporation Gallery Opens At the ROM

January 23, 2014 – The Barrick Gold Corporation Gallery is now open at the Royal Ontario Museum (ROM). The gallery, located in the ROM’s Teck Suite of Galleries: Earth’s Treasures (Level 2), is an interactive 600 square foot space, with multi-touch, animated displays, multi-media presentations and more.

This new permanent gallery showcases a range of mineral specimens as well as presentations on the global mining industry, including stories about mining, and how the mining industry impacts our daily lives. The digitally enhanced games and other interactives, such as a touch wall are the most advanced, hands-on, user-driven visitor experiences in the ROM.

“The ROM is delighted to share the Barrick Gold Corporation Gallery in our Teck Suite of Galleries with our visitors and inspire them to discover more about mining. From the interactive games to specimen displays, this gallery illustrates the importance of mining in our daily lives and discusses the social and environmental responsibilities surrounding mining as well as our responsibilities as consumers of products of the Earth. We are grateful to our partners and sponsors, including Barrick Gold Corporation and our Advisory Council, for their valued support,” said Janet Carding, ROM Director and CEO.

Government grants $15 million for deep mining research – by Jonathan Migneault (Sudbury Northern Life – January 22, 2014)

January 23, 2014

http://www.northernlife.ca/

CEMI will use funds to make deep mining more efficient

The Centre for Excellence in Mining Innovation (CEMI) received $15 million in federal funding for its Ultra Deep Mining Network, announced Greg Rickford, Minister of State for Science and Technology.

Rickford made the announcement at Science North’s Vale Cavern, where representatives from CEMI and Vale said the funding will help address the challenges posed by mining deeper than 2.5 km.

The CEMI project was one of the winners of the government’s Business-led Networks of Centres of Excellence. The $15 million for the Ultra Deep Mining Network was the largest grant awarded to the program’s four funding recipients.

“Clearly, Sudbury is going to be the face of ultra-deep mining research,” said Rickford. “We think this kind of research isn’t just important to improve the effectiveness of deep mining and safety, but it also creates jobs.” Douglas Morrison, CEMI’s president and CEO, said in addition to the government’s contribution Wednesday, the Ultra Deep Mining Network has received $31 million in funding from the mining industry.

Freeport, Newmont Say Indonesian Rules Infringe on Pacts – by Liezel Hill (Bloomberg News – January 23, 2014)

January 23, 2014

http://www.bloomberg.com/

Freeport-McMoRan Copper & Gold Inc. (FCX) and Newmont Mining Corp. (NEM), the largest U.S. miners, said new Indonesian rules on metal export duties infringe on contracts they have with the government.

Indonesia issued regulations on metal exports this month that curbed the shipping of unprocessed ore and placed duties on exports of copper concentrate, a semi-processed ore that’s shipped from mines to smelters. The rules have resulted in delays to obtain export permits, and Freeport plans to defer some production, according to the Phoenix-based company, the world’s biggest publicly traded copper producer.

The duties on copper, which begin at 25 percent and will rise to 60 percent by mid-2016, took Freeport by surprise, Chief Executive Officer Richard Adkerson said yesterday on a conference call with analysts. Indonesia, where the company operates its biggest mine, the Grasberg copper and gold operation, accounted for 19 percent of its third-quarter revenue, according to data compiled by Bloomberg. Newmont’s Batu Hijau mine in the country contributed 6.8 percent of the miner’s total sales, the data show.

“It would get pretty rough for Freeport if Indonesia stuck to its guns on this,” Dan Rohr, an analyst at Morningstar Inc. in Chicago, said yesterday in a phone interview.

UPDATE 1-MMG warns output from key Australia zinc mine to drop – by James Regan (Reuters U.S. – January 23, 2014)

January 23, 2014

http://www.reuters.com/

SYDNEY, Jan 23 (Reuters) – Output from Australia’s Century zinc mine, the world’s third biggest, could drop 5 percent this year as it nears the end of its operating life, exacerbating an emerging global supply pinch.

The mine will yield between 465,000 and 480,000 tonnes of zinc in concentrate in 2014 against 2013 output of 488,233 tonnes, said Chinese owner MMG Ltd.

The decline comes amid a supply deficit driven by rising galvanised steel production. Zinc is primarily used as a rust-inhibitor in the galvanising process.

MMG’s nearby Dugald River mine is under development and was supposed to start yielding zinc in late 2015, partially replacing lost output from the Century mine, which MMG forecasts will run dry in mid-2015.

But MMG last month warned Dugald River would miss its start date due to poor ground conditions. An additional A$57 million has been allocated to study problems at the project, according to MMG.

US miners hit out at Indonesia copper tax – by Ben Bland (Financial Times – January 23, 2014)

January 23, 2014

http://www.ft.com/home/us

Jakarta – US mining majors Freeport McMoRan and Newmont have hit out at Indonesia’s new tax on the export of copper concentrate, saying it is in breach of their long-standing contracts of work with the government.

Both companies, which employ thousands of people at their vast copper and gold mines in Indonesia, said on Wednesday they were in talks with the government to resolve the situation. Newmont said it was considering other remedies including “possible legal action”.

Indonesia, a major global exporter of metals such as bauxite, copper, and nickel, implemented a hotly-contested ban on the export of unprocessed mineral ores on January 12 as part of a drive to promote the development of a refining industry. Freeport and Newmont, which together contribute well over $1bn a year in taxes and royalties to the Indonesian government, initially won a reprieve, getting permission to export their partially processed copper concentrate until 2017.

But the finance ministry delivered a sting in the tail when it announced shortly afterwards that the companies would have to pay a progressive export tax that will start at 25 per cent and rise to 60 per cent by 2017.

NEWS RELEASE: Alderon and the Innu Nation of Labrador Sign Impacts and Benefits Agreement

January 23, 2014

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jan. 23, 2014) – Alderon Iron Ore Corp. (TSX:ADV)(NYSE MKT:AXX) (“Alderon” or the “Company”) and the Innu Nation of Labrador (“Innu Nation”) are pleased to announce that The Kami Mine Limited Partnership (“Kami LP”), an affiliate of Alderon, has signed an Impacts and Benefits Agreement (“IBA”) with respect to the development of the Kami Iron Ore Project (“Kami Project”) located in western Labrador. The IBA is a life-of-mine agreement that establishes the sharing of benefits that will ensure a continued positive relationship between the Innu Nation and the Kami LP. The IBA represents full and final settlement to the Innu Nation.

“The successful conclusion of the IBA further strengthens Alderon and the Kami LP’s positive working relationship with the Innu Nation,” says Mark Morabito, Executive Chairman of Alderon. “This IBA is the result of over three years of consultation and negotiation and we look forward to a beneficial future for both parties as we continue to develop the Kami Project.”

“We are pleased with this IBA as it gives financial benefits to the Innu people and opportunities for business contracts and jobs as well as environmental protection for Innu traditional pursuits,” says Innu Nation Grand Chief Prote Poker.

By entering into the IBA, the Innu Nation has given its consent and support to the Kami Project in keeping with the provisions of the Agreement.

Matawa Students Start Ring of Fire Training Program – by Staff (Netnewsledger.com – January 20, 2014)

January 23, 2014

http://www.netnewsledger.com/

Matawa First Nations Training Students for Mining Careers

THUNDER BAY = Aboriginal – Twenty-one students who are Matawa First Nations community members commenced an 8-week Mining Readiness Program at classroom space offered by Kiikenomaga Kikenjigewen Employment & Training Services (KKETS) in Thunder Bay.

The program is being delivered by KKETS, the Matawa First Nations tribal council employment and training organization, in partnership with Confederation College through the Ring of Fire Aboriginal Training Alliance (RoFATA) initiative.

RoFATA Training Opportunities

RoFATA has been in existence since July 2013 and has since provided four community-based deliveries of the Mining Readiness Program to four Matawa First Nations communities (Webequie First Nation, Eabametoong First Nation, Marten Falls First Nation, and Cosntance Lake First Nation) from October to December 2013.

Resource sector about to witness new era of native empowerment – by Barbara Yaffe (Vancouver Sun – January 22, 2014)

January 23, 2014

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

It all began back in October 2006 when an 82-year-old aboriginal man took his folding chair to a Canfor logging road in northeastern B.C., and got comfortable.

George Behn’s quiet act of protest has led to another signal from the courts that, when resource developments challenge treaty rights, the latter almost always prevails.

Author Bill Gallagher has been documenting aboriginal legal challenges involving development projects going back to 1985. He categorizes the one involving Behn, which concluded last month, as: “Native legal win No. 190.”

He compares the litany of aboriginal victories to a popcorn maker: “The rulings came slowly at first; now they’re at full tilt.” Gallagher believes the court cases tell a story of continued ignorance and naiveté on the part of both business and government.

“It’s as if the (aboriginal) winning streak has made little or no impact on their thinking, in spite of the fact many resource projects have crashed and burned along the way.”

Stock markets should reward Canadian mining companies for practising social responsibility, expert says – by Marco Chown Oved (Toronto Star – January 23, 2014)

January 23, 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.

A former mining executive says that if financial analysts better understood corporate social responsibility, worthy companies would see their stocks soar. It’s not the ore in the ground, nor the mineral exploration licences, but commitment to environmental sustainability, community development and human rights that are Canadian mining companies’ most underappreciated assets, a former mining executive said Monday.

If financial analysts better understood these things, companies that excel in “corporate social responsibility” (CSR) would see their stock rise while industry laggards would have theirs pushed down, said Craig Ford, the former vice president for corporate responsibility at Inmet Mining Corporation.

“You can have the greatest ore body in the world and if you can’t build the privilege to operate, then who cares?” Ford said. “Unfortunately, that seems to be lost on some people. They see the asset in the ground, they see the foundations going up, and they put more value in those assets.”

INTERVIEW: McEwen on Goldcorp’s hostile bid, M&A opportunity and market bottoms – by Kip Keen (Mineweb.com – January 23, 2014)

January 23, 2014

http://www.mineweb.com/

Rob McEwen sees a market bottom forming and speaks about not missing it, among other matters.

VANCOUVER BC (MINEWEB) – Last Friday Mineweb’s Kip Keen spoke with Rob McEwen the chief owner of McEwen Mining. In a wide-ranging interview, McEwen weighs in on the impact of Goldcorp’s hostile bid for Osisko on the mining sector, growth through M&A at McEwen mining, assessment of junior companies and market bottoms. And not missing them.

Kip Keen: The Goldcorp takeover bid for Osisko has generated a lot of excitement. What are your thoughts on it?

Rob McEwen: The takeover in general is a symptom or an illustration of the consolidation that’s been happening in the industry. And I think it will pick up pace as we move into this year. It’s showing to investors that you can make money in this market; that it’s been overlooked with people thinking there’s no opportunity here. I think the biggest risk to investors is missing the run we’re going to have in these stocks.

KK: Do you think it’s fair to say that management teams and shareholders are more willing to accept M&A now after the long, tough couple of years we’ve had?

Why are Canadians ignoring the ‘North below the North’? – by Ken Coates (Globe and Mail – January 23, 2014)

January 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.

The Arctic Frontiers conference underway this week in Tromso, Norway, has attracted more than 1,000 registrants from around the Circumpolar world. The turnout is further distinguished by the impressive roster of participants, from the prime ministers of Norway and Greenland, many of the most powerful cabinet ministers responsible for Arctic affairs, and hundreds of the world’s leading Arctic scientists and social scientists. Arctic Frontiers is a sign, if one were needed, that this is the age of the Arctic.

Beyond Prime Minister Stephen Harper’s continued interest in the far North, Canadians certainly share the global preoccupation with the circumpolar world. There are good reasons, given climate change, boundary disputes, the Arctic’s resource potential, political transitions underway across the region and the curious mix of opportunity and crisis that permeates the Arctic.

But something important is missing. The North below the North, the vast expanse of the sub-Arctic that lies in the northern reaches of the provinces, attracts no comparable interest. From Labrador through to northern British Columbia, the “forgotten North” is at once the powerhouse of the Canadian economy and one of the most marginalized and troubled parts of the country.

Digging deep for deep mining – by Ben Leeson (Sudbury Star – January 23, 2014)

January 23, 2014

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

The Centre of Excellence in Mining Innovation wants to go deep — as in more than 2.5 kilometres below the surface — and on Wednesday, got a strong hand in getting there.

CEMI was announced as a winner of the business-led Networks of Centres of Excellence program, receiving $15 million for its Ultra-Deep Mining Network proposal. Greg Rickford, federal minister of state for Science and Technology, announced the four winners during a press conference in the Vale Cavern at Science North.

“This is a fine example of exactly the kind of collaboration we like to support through the Business-led Networks of Centres of Excellence program,” said Rickford, MP for Kenora.

“It will bring together members of the business and research community to help solve critical challenges that affect the international competitiveness of Canadian mining companies.”

Horwath doesn’t tip hand during Sudbury visit [Ring of Fire] – by Carol Mulligan (Sudbury Star – January 23, 2014)

January 23, 2014

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

Andrea Horwath won’t outright say she expects a spring election. But her New Democratic Party is about to start consultations with Ontarians from which the party will take its cues about whether to support another Liberal budget.

Before the last two Liberal minority government budgets, the NDP held town hall meetings and telephone town halls, conducted online surveys, while MPPs held meetings with constituents to get feedback on what they wanted from government in a budget.

“The people of Ontario chose a minority government,” Horwath said Wednesday in Sudbury. “We’ve done everything we could to make that government deliver for them.” Her party will seek that feedback again to inform its decision-making around the next budget process, expected shortly after the Legislature resumes Feb. 18.

Horwath was in Sudbury to meet with Sudbury riding candidate Joe Cimino and attend a fundraiser. While here, she toured Stack Brewery on Kelly Lake Road, where she said it was heartening to see entrepreneurs like owner Shawn Mailloux helping to diversify Sudbury’s economy.