Republic of Mining

NEWS RELEASE: Cliffs Natural Resources Inc. Reports on Sustainability Progress

August 28, 2013

August 27, 2013

For the entire sustainability report, click here: http://www.cliffsnaturalresources.com/EN/Sustainability/Sustainability2012/Documents/Cliffs%202012%20Sustainability%20Report%20-%20Full%20Version.pdf

CLEVELAND, Aug. 27, 2013 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) announced today the release of its 2012 sustainability report, entitled “Embracing our Past, Securing our Future.” The sustainability report is a comprehensive look at Cliffs’ global operations and outlines the Company’s progress in key areas of its sustainability strategy.

(Logo: http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

“This year has been marked by continual change and volatility in the commodities market, which has presented our Company with a number of opportunities and challenges. However, our expectations of personal accountability and business ethics are unwavering,” said David Cartella, vice-president — global environmental affairs, sustainability and counsel. “Going forward, we will continue to build upon a strong foundation of sustainability with the development of a three-year, enterprise-wide strategy. Aligned with business priorities and integrated with operational and functional groups, this strategy aims to maximize our shared value by reinforcing our social license to operate.”

UPDATE 1-Indonesia may loosen export ban on metal ores – by Rieka Rahadiana and Fergus Jensen (Reuters India – August 28, 2013)

August 28, 2013

http://in.reuters.com/

Aug 28 (Reuters) – Indonesia will push for a relaxation of its controversial 2014 ban on metal ore exports amid a scramble to support the rupiah and restore confidence in Southeast Asia’s largest economy.

Indonesia is the world’s top exporter of nickel ore, coal and refined tin and its mining industry contributes around 12 percent of gross domestic product (GDP).

However, the ban on unprocessed mineral exports from January 2014 has hit the industry and uncertainties over the country’s mining rules have dented its credibility with foreign investors.

If approved, the reversal of mining policy will upset metal industries banking on a tightening of ore shipments that have increased significantly in the lead up to the ban. However, some in parliament doubted the government would manage to overturn the rule.

Under the proposed revision, mining companies with smelters under construction would be allowed to continue to export unprocessed minerals, but would be charged a progressive duty on the shipments depending on how close to completion their projects are, Industry Minister Muhammad Sulaeman Hidayat told reporters.

Canadian mining executive freed by Colombian rebels – by Nadja Drost (Globe and Mail -August 28, 2013)

August 28, 2013

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.

SEGOVIA, COLOMBIA — After 221 days of captivity at the hands of Colombian rebels, Canadian mining executive Gernot Wober is free.

He was handed over Tuesday in an isolated clearing in northern Colombia by rebels of the National Liberation Army (ELN) to a Red Cross delegation and whisked away by helicopter and then plane to Bogota. “He looks good. He’s suffered a lot, but he’s very excited about his liberty,” said Archbishop Dario de Jesus Monsalve, a member of the delegation.

Mr. Wober, vice-president of exploration for Canadian junior mining company Braeval Mining Corporation, was a bargaining chip in a long-standing battle over mining rights between Colombia’s leftist guerillas and its government. Now, his release could have implications for future peace in a country racked by 50 years of violent armed conflict, by opening the door to allow the ELN, Colombia’s second-largest guerrilla group, to the negotiating table.

The Canadian went from being a pawn in the conflict over resources to a possible lynchpin in negotiating peace with one of Latin America’s oldest rebel groups.

New energy infrastructure ‘strategic imperative’ for Canada – by Carrie Tait (Globe and Mail -August 28, 2013)

August 28, 2013

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.

CALGARY — Oil and gas companies need to diversify their export markets because new discoveries south of the border will temper demand for Canadian energy, say the country’s natural resources ministers.

Joe Oliver, Canada’s minister of natural resources, met with the majority of Canada’s energy and mining ministers Tuesday in Yellowknife at their annual meeting. The group emphasized the importance of opening export markets in the Asia-Pacific region, which requires new infrastructure.

Energy proponents have long argued new pipelines must reach tidewater so Canada can charge more for its products because it would bring access to more global customers. Now the industry and politicians are increasingly calculating the impact of surging oil output in the United States, as production soars in places like North Dakota and Texas.

The shift in focus shows how Canada’s energy ministers are trying to strengthen the argument for export pipelines. Mr. Oliver noted Canadian energy exports to the United States will continue to grow, but at a slower pace.

Sell-off [Ontario Northland] “not only option” – by Wayne Snider (Timmins Daily Press – August 28, 2013)

August 28, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – As Minister of Northern Development and Mines, Michael Gravelle is arguably the most important link to Queen’s Park for Northerners.

Gravelle took time out of his schedule to sit down with editorial staff at The Daily Press for an exclusive interview on Tuesday.

The minister discussed at length provincial issues specific to the region. He admitted one of the biggest bones of contention in the Northeast is the divestiture of the Ontario Northland Transportation Commission.

“In the 2012 budget the decision was made,” Gravelle said. “There certainly was some very clear fiscal challenges and there was a decision made at that time, obviously in terms of the budget that indeed the divestment of the ONTC was the direction the government needed to go in. It was certainly a very tough decision at the time and one that (drew) a very strong reaction from Northern Ontario.”

Since that time, there has been a change in the premiership, with Kathleen Wynne replacing Dalton McGuinty. The provincial government has somewhat softened its response on the ONTC sell-off, but has not yet made any concrete promises.

Lobby effort vital to growth in North – by Wayne Snider (Timmins Daily Press – August 28, 2013)

August 28, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – For several years, there has been an ongoing effort by municipal leaders to lobby Queen’s Park on Northern Ontario issues.

The charge has been led in part by Timmins Mayor Tom Laughren and Kapuskasing Mayor Al Spacek. Through organizations like the Federation of Northern Ontario Municipalities (FONOM), Northeastern Ontario Municipal Association (NEOMA) and the Northern Ontario Large Urban Mayors (NOLUM), they have met with provincial cabinet ministers on numerous occasions.

They have attempted to get Northern leaders to speak with one voice on key issues such as the divestiture of the Ontario Northland Transportation Commission, regional infrastructure needs, and potential closure of local provincial parks.

But how effective is this process? To answer that question, we went straight to the horse’s mouth. Northern Development and Mines Minister Michael Gravelle has discussed these issues and many others, several times with the Northern lobby groups.

During an editorial board session at The Daily Press on Tuesday, he said such efforts allow the provincial government to clearly hear Northern concerns. “I think it is a very effective way for us to communicate,” Gravelle said. “I’ve built up some extraordinary positive relationships with Northern mayors in particular.”

As Syria fears send oil higher, Canada looks like bastion of safety – by Yadullah Hussain (National Post – August 28, 2013)

August 28, 2013

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

As war clouds loom over Syria, oil soared to a six-month high and oil traders fretted over more trouble in the Middle East.

Western countries appear to be preparing a military response to Bashar Al Assad’s chemical attack against the opposition, but the defiant Syrian government has chillingly responded that Damascus’ defense will ‘surprise’ the world — sending most financial markets tumbling and bolstering safe havens like gold.

Add Russia, Iran, Israel and Lebanon’s Hezbollah into the mix, and fears of a wider Middle East conflict engulfing more stable Gulf oil exporters have escalated.

Brent ended the day 3% higher, to $114.08 after rising to $114.15 — a six-month high. West Texas Intermediate also hit a five-week high to $109.32, retracing its July 19 price, and its highest level since March 2012.

“Assuming that the Western powers want to protect their dwindling credibility and influence in the region, military reprisals against the Syrian regime appear likely,” said Pierre Fournier, geopolitical analyst at National Bank Financial Inc. in a note to clients, adding that the strikes may have a limited mandate to punish Syria rather than topple the Assad regime.

The Big Australian should strike a deal with Rio Tinto – by Terry McCrann (Melbourne Herald Sun – August 27, 2013)

August 28, 2013

http://www.heraldsun.com.au/

ALUMINIUM was the ghost at the BHP Billiton profit feast last week.

Although the aluminium, manganese and nickel division generated more than $9 billion of revenue, it contributed just $164 million of EBIT (earnings before interest and tax).

Compare and contrast that with the jewel in the BHPB crown – iron ore, which on a little more than double that revenue, at $20 billion, contributed more than 67 times as much EBIT, or $11.1 billion.

Incidentally, I never – and I’m equally certain, neither would most other commentators – have ever thought, in the good old days pre-China, that we’d end up describing lumpy, plentiful, iron ore as the ‘jewel” in anyone’s crown.

That it is, certainly in the corporate crowns of BHPB and Rio Tinto. It’s also made multi-billionaires of Gina Rinehart and Andrew Forrest. In contrast, aluminium ain’t going to make a billionaire of anyone. Thanks to China continuing to smelt uneconomically, aluminium has a knack of turning billionaires, corporate or otherwise, into mere millionaires.

NEWS RELEASE: A Letter from Brigus Gold’s Chairman and Chief Executive Officer

August 28, 2013

HALIFAX, Aug. 27, 2013 /CNW/ – (NYSE MKT: BRD; TSX: BRD)

Dear Fellow Shareholders:

Given the recent volatility of the precious metals markets, I would like to share my perspective on what’s occurred in the sector, while reviewing our progress at Brigus and outlining our strategy and outlook for the quarters ahead.

The second quarter saw a precipitous drop in precious metal prices, including gold’s one day dip of ~9% in April. Lower gold prices led to reduced financial results for gold mining companies compared to the previous quarter, and a significant reduction in the valuation and equity prices for virtually all gold mining companies, including Brigus.

Since hitting a 46 month low of $1,179 on June 27th, spot gold prices have now rebounded to the $1,400 level and equity prices are also beginning to recover. Investor sentiment for the sector, having reached extreme negative levels, is in the process of reverting to a more reasonable range.

Regardless of the short term volatility over the past few months, we at Brigus remain steadfast in our belief that gold will continue to play a very important role as a store of value for investors. We believe high quality gold mining companies will prove to be a worthwhile investment for years to come.

Mine training fails First Nations people, researcher says (CBC News Thunder Bay – August 27, 2013)

August 28, 2013

http://www.cbc.ca/thunderbay/

Feds promise $6M to train First Nations people in Northern Ontario’s Ring of Fire.

The federal government’s $6 million in funding to train people from Matawa First Nations in the mining sector is unlikely to improve employment prospects for aboriginal people, an Ontario researcher says.

Lindsay Bell, a university of Toronto researcher, looked at mine training programs in the Northwest Territories. She says after being trained, few aboriginal people found jobs in the mines. The federal government announced earlier this month that 260 people will be trained through the fund.

The money will go to a group of stakeholders called the Ring of Fire Aboriginal Training Alliance, which includes Matawa First Nations, NorOnt Resources and Confederation College.

The program will feature 15 courses including environmental monitoring, heavy equipment operation and several pre-trades courses such as carpentry, plumbing and welding. Other job possibilities range from security guard to camp cook to electrician.

Potash Collapse Signals Buy Not Build for Vale: Corporate Brazil – by Juan Pablo Spinetto (Bloomberg News – August 26, 2013)

August 28, 2013

http://www.bloomberg.com/

Turmoil in the global potash market is creating an opportunity for Vale SA to buy assets at a discount as the mining company leads Brazil’s bid to become self-sufficient in crop nutrients.

Vale, whose output at Brazil’s only potash mine dropped for the past three years, should abandon plans for greenfield projects and consider instead purchasing existing producers or their assets, according to Stifel Nicolaus & Co. Potash companies are trading at a “great discount,” making acquisitions a cheaper option for Vale than starting from scratch, said Terence Ortslan, managing director of research firm TSO & Associates.

Vale suspended two potash projects in Argentina and Canada worth $8.9 billion in the past year as cost increases made the ventures unfeasible. Fertilizer producer shares have slumped 14 percent on average since July 30 when OAO Uralkali ended output restrictions through a venture with Belaruskali, triggering speculation prices would tumble. Their average price-to-book ratio fell to 1.69 yesterday from 2.55 at the end of last year.

“It’s tough to justify the economics of a new project at today’s pricing,” Stifel Nicolaus analyst Paul Massoud said by telephone from Washington.

A failure of compensation [Mercury Poisoning-Grassy Narrows and Whitedog] (Thunder Bay Chronicle-Journal – August 27, 2013)

August 28, 2013

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

THE LONG, sad tale of mercury poisoning among people at two First Nations on the English-Wabigoon River system continued this week with a demonstration at the home of Ontario Premier Kathleen Wynne. Ironically, Wynne was canoeing on a river somewhere in Ontario but protesters say they still intend to remind her that she’s promised to address their concerns.

Ontarians who remember the issue when it arose more than 40 years ago may wonder why it remains an issue, given that two, small communities received more than $20 million in compensation. The answer may lie in interpretation of the details of the settlement. It is also apparent that the amounts distributed to victims of mercury poisoning are small compared with those awarded victims of the world’s first identified cases.

The Northwest issue arose back in 1970 when federal officials notified commercial fishermen and tourist lodge owners that the two rivers were contaminated with methylmercury, a highly toxic form of mercury that renders fish unsafe to eat. The contamination was traced to the former Reed paper mill in Dryden which had dumped more than 20,000 pounds of untreated mercury wastewater into the Wabigoon River between 1962 and 1970. It drifted 250 kilometres downstream.

A tourist lodge was forced out of business. Commercial fishers at Grassy Narrows and Whitedog and those who had been employed as sport fishing guides were forced onto welfare.

How to fix southwestern Ontario’s economy – by Mike Moffatt (Canadian Business Magazine – August 27, 2013)

August 28, 2013

http://www.canadianbusiness.com/

No silver bullet, but a salvo of ideas.

While the national unemployment rate currently stands at 7.2%, some regions are suffering more than others. Southwestern Ontario is one such place, with Windsor and London showing 9.2% and 8.6%, respectively. And so, as a business school economist in London, Ontario, it isn’t surprising that the question I’m most frequently asked by non-economists is some variant of “How can we grow southwestern Ontario’s economy?”

My first response is to point to some recommended reading on the topic, including several research papers by the Mowat Institute (see here, here and here). I’m also looking forward to coming recommendations from the Ivey School of Business’ Lawrence Centre which is working on a number of regional research projects. (On the other hand, if I’m at a cocktail party and feeling glib, my response is similar to that which I gave in the middle-class roundtable.)

But there is no silver bullet—it will take a suite of smart policies and a willingness to experiment. That’s the short answer. The longer answer is not policy prescriptions per se, but rather things we should be mindful of when developing and promoting policy ideas.

Support at the industry level should be general and based on real comparative advantages. Identifying the region’s well-positioned industries is an easier task than identifying companies, particularly when examined from the point of view of comparative advantage.

Mining industry needs to look in the mirror, says Cutifani – by Allan Seccombe (South Africa Business Day – August 27, 2013)

August 27, 2013

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

THE entire South African mining industry needs to “look in a mirror” and take accountability for the sector, Anglo American CEO Mark Cutifani said at the Mining Lekgotla on Monday.

Mr Cutifani, who is also president of the Chamber of Mines, said the mining sector had faced a “tumultuous” year in 2012 and it remained the industry’s intention to “face with brutal honesty” what needed to be done to improve situations that had led to the unsettled sector.

“The Marikana tragedy was a stark reminder that we as an industry need to do more,” Mr Cutifani said at the second Mining Lekgotla, which draws together participants from labour, the government and the mining sector, as well as community and youth representatives.

The mining companies had looked in the mirror and taken full accountability for the state of the industry, Mr Cutifani said. “We ask our partners to also look in the mirror,” he said. “It remains our absolute intention to address the issues we have faced with brutal honesty and as a sector confronted with myriad challenges, we need to chart a path towards future growth and prosperity.

NEWS RELEASE: Teachers benefit from their time in mining classrooms

August 27, 2013

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Forty six educators expanded their mineral industry knowledge through active participation in an enhanced Teachers Mining Tour. This was the fourth year for this program and the first year the week-long program had been held twice to help accommodate increased demand for the course.

Elementary and secondary school science and social studies teachers from across Ontario and parts of Quebec were exposed to all facets of mining from exploration and geology through to production and mine site reclamation and environmental activities. Twenty four teachers were in the first workshop from July 29 to August 2 and 22 teachers were in the second program from August 19 to 23, 2013. The base camp for the programs was the Canadian Ecology Centre, near Mattawa.

“The schedule is jam packed with classroom time, site visits and presentations,” said Lesley Hymers, Ontario Mining Association Environment and Education Specialist. “The teachers are a dedicated group of educators who have donated a portion of their summer holidays to gain a first-hand glimpse of one of Ontario’s most important industries and a better understanding of the broad range of career opportunities mining offers.”