Republic of Mining

Goldcorp seizes opportunity with hostile bid for Osisko – by Peter Koven (National Post – January 14, 2014)

January 14, 2014

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

TORONTO – By bidding $2.6-billion for Osisko Mining Corp., Goldcorp Inc.’s chief executive Chuck Jeannes is taking advantage of poor gold market conditions and going after a mine he has craved for years.

Goldcorp has held on-and-off negotiations with Osisko Mining Corp. for several years, and owned more than 10% of the stock between 2009 and 2011 before selling it. Osisko became a rising star in that period as it brought the giant Canadian Malartic mine in Quebec into production.

Back then, a takeover of Montreal-based Osisko was a strong possibility. Both Goldcorp and Kinross Gold Corp. owned large blocks of Osisko shares, and with gold prices rising and consolidation happening across the sector, the stock soared above $16. But no takeover bid materialized, and as gold prices plunged and Osisko struggled to ramp up production at Canadian Malartic, its shares fell back to earth.

That brought Mr. Jeannes and Goldcorp back into the picture. On Monday, the Vancouver-based miner launched a hostile bid for Osisko valued at just $5.95 a share. While Goldcorp would almost certainly raise its cash-and-stock offer to get a friendly deal, it is still a relative bargain.

Hypocrite Neil [Oil sands] – by Ezra Levant (Toronto Sun – January 13, 2014)

January 14, 2014

http://www.torontosun.com/home

Neil Young, the ’60s-era folk singer and drug lifestyle icon, has come to Canada to lecture us about the oilsands.

Young was born in Canada, but left us to make it big in Los Angeles. Environmentalists know that’s North America’s smoggiest city, a city that runs on conflict oil imported from Saudi Arabia.

Young jetted here to wag his finger at us. And to have a series of Blame Canada concerts attacking the oilsands and all those who work in it.

Like any concert, Young’s requires an enormous number of staff and equipment. They drive a diesel-powered bus from town to town. Young is a multi-millionaire telling us that we can’t have well-paying oil and gas jobs.

His net worth is estimated to be $65 million. He’s not a one-percenter. He’s a one percenter of the one-percenters. So he can waste enormous sums of money on goofy schemes, like his custommade “Lincvolt,” a remade antique Lincoln with two motors in it: A regular combustion engine, plus an electric engine.

Intel’s Ban on Conflict Minerals Wows National Geographic Photographer – by Tom O’Neill (National Geographic – January 9, 2014)

January 14, 2014

http://news.nationalgeographic.com/news/

Marcus Bleasdale has spent a decade documenting brutal conditions in eastern Congo’s mines. He calls the Intel announcement “huge.”

Intel’s announcement that every microprocessor that it ships will be made without conflict minerals from Africa hit both a personal and professional nerve for photographer Marcus Bleasdale.

Bleasdale has spent the past decade photographing in the Democratic Republic of the Congo (DRC) to bring the issue to the world’s eyes: workers, including children, toiling in brutal conditions in mines overseen by militias in eastern Congo. In October National Geographic magazine published “The Price of Precious,” which featured Bleasdale’s powerful photos dramatizing the suffering of people caught in the middle of the violent, illegal grab for minerals like tin, tungsten, and gold. They’re referred to as “conflict minerals” because of the ongoing strife between army commanders and militia chiefs over control of the mines.

NEWS RELEASE: Minister Oliver Announces Enhanced Cooperation Between Canada and India

January 14, 2014

DELHI, INDIA–(Marketwired – Jan. 13, 2014) – Natural Resources Canada

Canada’s Natural Resources Minister, the Honourable Joe Oliver, today announced enhanced cooperation between Canada and India in the fields of mining and earth sciences and in the iron and steel industries.

Minister Oliver and India’s Minister of Steel, Beni Prasad Verma, signed a Letter of Intent (LOI) on cooperation concerning the iron and steel sector and allied industries. Minister Oliver also witnessed the signing of a Letter of Renewal (LOR) to extend a Memorandum of Understanding (MOU) on Cooperation in the Fields of Earth Sciences and Mining between Natural Resources Canada and India’s Ministry of Mines to advance bilateral cooperation and encourage cooperation in earth sciences and mining with the industrial sectors. The MOU was set to expire by June 2014.

This ongoing collaboration between the two countries underlines the Government of Canada’s commitment to expand engagement through long-term commercial investments, joint partnerships, technological cooperation and exchange of best practices in the earth sciences, mining and energy sectors.

Goldcorp launches hostile $2.6-billion bid for rival Osisko Mining – by Rachelle Younglai and Bertrand Marotte (Globe and Mail – January 14, 2014)

January 14, 2014January 14, 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.

Goldcorp Inc. has launched a $2.6-billion hostile bid for rival Osisko Mining Corp. in a deal that would boost Goldcorp’s reserves and give it control of one of the biggest gold mines in Canada.

The bid, valued at $5.95 a share, was a 15-per-cent premium for Osisko shares based on last Friday’s closing prices. Osisko’s stock price shot up 20 per cent to $6.24 Monday, higher than Goldcorp’s offer, suggesting investors expect a richer bid to emerge.

The takeover bid marks a rare move in the mining industry over the past year, as companies have focused largely on cutting costs and preserving cash amid a deep slump in gold prices and gold miners’ shares. The offer signals industry valuations have fallen to a level where it makes sense for some mining companies to make acquisitions after they spent the past two years writing down assets bought during the commodity boom.

Goldcorp’s chief executive Chuck Jeannes said the Osisko transaction is not about Goldcorp getting bigger.

Japan nickel users face higher costs, supply hunt after Indonesia ban – by Yuka Obayashi (Reuters U.S. – January 13, 2014)

January 14, 2014

http://www.reuters.com/

TOKYO – Jan 13 (Reuters) – Japan, home to some of the world’s biggest stainless steel producers, will face higher costs and a scramble to find new nickel supply after Indonesia enforced an export ban on the raw material.

Global nickel prices and mining shares rallied a day after Indonesia banned unprocessed exports of nickel and bauxite, in a move aimed at getting higher returns for its resources by forcing companies to refine the minerals on Indonesian soil.

The law was first announced in 2009 but only a handful of firms made the downstream investments needed, betting on Indonesia backing down on the policy. Jakarta tweaked its rules on Saturday to allow copper, zinc, lead, manganese and iron ore concentrate shipments to continue.

Japan’s biggest nickel smelter, Sumitomo Metal Mining Co Ltd (SCM), said it had enough nickel ore to maintain its current production level of ferro-nickel only till May.

NEWS RELEASE: Outokumpu – Proved ore reserves of the Kemi mine significantly larger after new drillings

January 14, 2014

OUTOKUMPU OYJ – STOCK EXCHANGE RELEASE

January 13, 2014 at 4.00 pm EET

Outokumpu has updated its estimates on the proved ore reserves and mineral resources of the Kemi mine in Finland. The proved ore reserves have significantly increased compared to earlier estimates, and are now altogether 50.1 million tonnes instead of the earlier estimated some 33 million tonnes.

The 50% increase in the proved ore reserves is based on new underground drillings made below the old Surmaoja open pit. Based on these underground drillings Outokumpu has made a new excavation plan and started the preparations for the underground production in the Surmaoja ore body. The target is to begin the ore excavation in 2015. This does not require major investments, since the proved ore reserves are within the reach of the current, already expanded infrastructure.

In addition to the proved ore reserves, the updated estimates show that the mineral resources of the Kemi mine are altogether 97.8 million tonnes. The grade of the mineral resources is 29.4% Cr2O3 and that of ore reserves is 26.0% Cr2O3. The mineral resources are estimated to the depth of one kilometer, but seismic measurements indicate that mineralization continues even further downwards.

KI says no to proposed MNR aerial moose inventory survey – by Rick Garrick (Wawatay News – January 9, 2014)

January 14, 2014

http://wawataynews.ca/

Kitchenuhmaykoosib Inninuwug has rejected a proposed Ministry of Natural Resources aerial moose inventory survey set to begin on Jan. 8 over its traditional lands.

“From our perspective as council, we do not approve of that,” said KI Chief Donny Morris. “We don’t see a decline in our moose population and we live off of them. Like any initiations by the MNR, the intent is to limit use or gathering of our traditional wild game. We see that coming and we’re just telling them that, no, we do not want it — stay away.”

Morris described the community’s concerns over the proposed moose survey in a Dec. 20 letter to MNR Minister David Orazietti, which is posted on the kitchenuhmaykoosib.com website. “The letter was sent to the minister,” Morris said. “I am hoping he is delegating it down to his bureaucrats.”

Morris received a Dec. 18 letter from Bob David, MNR’s district manager in Sioux Lookout, regarding the proposed moose survey.
“The proposed aerial survey is set to begin without our permission and free, prior and informed consent,” Morris said in his letter. “We ask that there be no moose survey over our territory until we give our consent.”

He wrote the book on “$10,000 Gold” – and he’s sticking to it – by Lisa Wright (Toronto Star – January 13, 2014)

January 13, 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.

Despite coming off one of the worst years ever in the gold market, CEO of the Bullion Management Group sticks to his extremely bullish price prediction.

Nick Barisheff is the first to admit his golden gaffe. “Last year – a year that saw gold’s greatest decline in 32 years – my book $10,000 Gold was published. How’s that for timing,” the gold bug deadpanned to giggles from the Empire Club of Canada business audience Thursday.

But what he said immediately afterward in his speech to the Bay Street crowd at the Fairmont Royal York Hotel luncheon naturally raised a few eyebrows. “However, I’m confident that gold’s bullish fundamentals are still intact,” said Barisheff, CEO of Bullion Management Group Inc., a precious metals investment firm based in Markham.

In fact, despite the gloomy outlook among metals analysts as the price languishes at the $1,200 (U.S.) per ounce price range, he believes it will rise to $1,800 later this year – and that it remains on track for $10,000 an ounce by 2020.

NEWS RELEASE: Red Pine and Flying Post First Nation Sign Exploration Agreement

January 13, 2014

TORONTO, ONTARIO–(Marketwired – Jan. 13, 2014) – Red Pine Exploration Inc. (“Red Pine” or the “Company”) (TSX VENTURE:RPX) announces the signing of an Exploration Agreement (“EA”) effective December 1, 2013 between the Flying Post First Nation Community (“FPFN”) and the Company in connection with the exploration and development of its Cayenne-Chili Property located about 110 kilometres south-west of Timmins.

The EA outlines the working relationship between the Parties with respect to exploration activities within an Area of Interest, which falls entirely within the FPFN Traditional Territory. The Area of Interest includes all claims and surrounding area forming the Cayenne-Chili Property, which is the focus of the Company’s current exploration activity.

The EA remains in effect until such time as the Company or its designate and the Flying Post First Nations have entered into an Impact Benefit Agreement.

The agreement includes specific terms that underline each Party’s mutual respect for the land and a responsible approach to exploring in FPFN’s Traditional Territory. In addition to Community support and input, the agreement also provides the Company with unencumbered access to and on the property in order to conduct all activities related to its exploration and development programs.

Philippines Sees Nickel Boon on Indonesia’s Ban: Southeast Asia – by Cecilia Yap (Bloomberg News – January 13, 2014)

January 13, 2014

http://www.bloomberg.com/

The ban on mineral-ore exports from Indonesia, the world’s biggest nickel producer, is poised to benefit neighboring miners in the Philippines, which are predicting an increase in sales. Shares of Nickel Asia (NIKL) Corp. advanced to the highest level since July.

The ban is positive as demand and prices for Philippine supplies will increase, according to Emmanuel Samson, chief financial officer at Nickel Asia. The Taguig City-based company accounts for about a third of Philippine output, Samson said in a telephone interview.

While the Indonesian ban is intended to encourage local processing and boost the value of commodity shipments from Southeast’s Asia’s largest economy, the curbs may hand an advantage to rival producers such as Nickel Asia. Buyers in China, the top user, stockpiled ore before the ban and it may take as long as six months to work off that extra inventory, according to Samson. Producers in China also need to adjust to the lower grade of ore that comes from the Philippines, he said.

“If they do that, it would be very easy for us to ramp up production,” Samson said in an interview Jan. 9. “We think the increase is not going to be until such time that the inventory level will come down,” he said, referring to prices.

Refined-nickel futures jumped as much as 2.4 percent to $14,190 a ton today on the London Metal Exchange, the highest level in two weeks, on concern supplies will be reduced.

Insight: Gold mine stirs hope and anger in shattered Greece – by Deepa Babington and Lefteris Papadimas (Reuters U.S. – January 13, 2014)

January 13, 2014

http://www.reuters.com/

OURANOUPOLI, Greece – (Reuters) – A Canadian quest to mine for gold in the lush forests of northern Greece is testing the government’s resolve to prove Europe’s most ravaged economy is open again for business.

The Skouries mine on Halkidiki peninsula – a landscape of pristine beaches and rolling hills dotted with olive groves – is among the biggest investments in Greece since it sank into a debt crisis four years ago.

But it has set Greece’s desperate need for finance to rebuild the economy against the interests of its vital tourism industry, and aroused anger on the peninsula – site of the famed Mount Athos monasteries – over the environmental cost.

Vancouver-based Eldorado Gold Corp took over the project in 2012, promising to invest $1 billion over the next five years as part of a plan to mine eventually source up to 30 percent of its global gold production in Greece. Yet preliminary work on the mine, which is supposed to open in 2016, has set off months of politicking and protests.

UPDATE 4-Indonesia export ban leaves mining in turmoil, nickel prices rally – by Wilda Asmarini and Michael Taylor (Reuters India – January 13, 2014)

January 13, 2014

http://in.reuters.com/

JAKARTA, Jan 13 (Reuters) – Indonesia’s mining sector was left in turmoil on Monday after the government pushed through a controversial ban on exporting unprocessed mineral exports.

Global nickel prices and mining shares rallied in the first trading day after the ban in the world’s top nickel ore exporter. The ban on a range of mineral ores took effect on Sunday, five years after a law was passed to force miners to build processing plants. The government provided a last-minute reprieve for exporters to keep shipping some minerals, although U.S. miner Freeport McMoRan Copper & Gold was waiting for confirmation so that it could continue to ship copper.

The policy aims to reduce reliance on raw material exports, but many firms failed to invest in enough smelter capacity to process all of Indonesia’s mining output — meaning that a total ban would have forced extensive shut downs of output and cost the economy billions of dollars.

Late changes approved by President Susilo Bambang Yudhoyono — to ease any short-term economic pain — should allow copper exports by Freeport and Newmont Mining Corp.

NEWS RELEASE: Goldcorp announces offer to acquire Osisko for C$5.95 per share in cash and shares

January 13, 2014

(All Amounts in U.S. dollars unless stated otherwise)

VANCOUVER, Jan. 13, 2014 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) today announced that it intends to commence an offer to acquire all of the outstanding common shares of Osisko Mining Corporation (“Osisko”) (TSX: OSK, Deutsche Boerse: EWX) for approximately C$2.6 billion in cash and shares (the “Offer”).

Under the terms of the Offer, Osisko shareholders will be entitled to receive 0.146 of a Goldcorp common share plus C$2.26 in cash for each Osisko common share. Based on Goldcorp’s TSX closing share price of C$25.29 on January 10, 2014, the total consideration offered to Osisko shareholders is C$5.95 per Osisko common share representing a premium of 28% over the 20-day volume-weighted average share price of Osisko from all trading on Canadian exchanges for the period ending January 10, 2014 and a premium of 15% over Osisko’s TSX closing share price on January 10, 2014.

Transaction Highlights

Consistent with Goldcorp’s strategy of disciplined portfolio enhancement, focus on gold and investment in low political risk jurisdictions.
Large ~10 million ounce gold reserve(1) that, with Goldcorp’s financial and technical resources, should support a long mine life and low all-in sustaining costs.

Neil Young’s misguided assault on Alberta oil sands doing a disservice to natives – by Peter Foster (National Post – January 13, 2014)

January 13, 2014

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

The first performance by environmental supergroup Suzuki Weaver and Young — at Massey Hall in Toronto on Sunday afternoon — was more entertaining, and thought-provoking, than anticipated.

The venue was to hold a concert by rock legend Neil Young in the evening as part of his four-city Canadian “Honour The Treaties” tour. All proceeds are to go to a legal fund for the people of Fort Chipewyan, which is 220 kilometers north of Fort McMurray. Mr. Young is hardly the first celebrity to join the pack assault on the oil sands, and to pick the downstream community of Fort Chipewyan as a focal point, although he seems to have been the first to suggest that the development looks like Hiroshima. On Sunday he opined that such a comparison was “mellow.”

His backup group of David Suzuki, as “moderator,” and climate modeller turned Green party BC MLA Andrew Weaver were there to amplify Mr. Young’s castigation of greed, corporations and the Harper government. But the pregnant question raised by the conference was the extent to which native people might be more victimized by their “friends” than their alleged enemies.

The afternoon’s standout performance came from Athabasca Chipewyan First Nation (ACFN) chief Allan Adam, a tough-looking but earnest man who, while obviously frustrated, revealed the complexities of his situation.