Republic of Mining

Cliffs threatens again to abandon Ring of Fire project – CBC News Sudbury (October 22, 2013)

October 23, 2013

http://www.cbc.ca/sudbury/

Company says it can’t access land already staked by other company

Cliffs Natural Resources has renewed its threat to abandon a proposed mining project in the Ring of Fire region in the James Bay lowlands of Northern Ontario. The threat has set off a political firestorm, since the proposal is set to bring thousands of jobs to the region and a new smelter to Capreol in Greater Sudbury.

Cliffs said if it can’t access a piece of land already staked by KWG Resources, it won’t have a transportation route. Without that route, the company said it will have to shut down its proposed multi-billion dollar chromite project, which is considered the centre piece of the Ring of Fire.

Cliffs has requested the provincial government intervene, and possibly even expropriate the land on its behalf. The issue was raised in the Ontario legislature yesterday when New Democrat MPP Michael Mantha, who is also the party’s critic on Northern Development and Mines, called on the province to get involved.

Road to Ring makes sense: mayor – by Carl Clutchey (Thunder Bay Chronicle-Journal – October 23, 2013)

October 23, 2013

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

While the province endured another tongue-lashing in the legislature Tuesday over accusations it’s bungling the Ring of Fire development, some observers wondered why the government still won’t commit to building a main access road to the rich mining region.

“A road must be seen as an investment both in terms of mining development and human capital,” said Red Lake Mayor Phil Vinet, a former miner. “Look at the road (Highway 105) to Red Lake (and surrounding gold mines),” Vinet added. “It was built in 1948 and paved in 1960, an investment that has paid for itself many times over.”

In the legislature, NDP MPP Mike Mantha scolded the Liberals for lacking a plan for the province’s remote North.
“When will we see a real plan for Ring of Fire development that benefits Northern communities, First Nations and all Ontarians?” said Mantha (Algoma-Manitoulin). Natural Resources Minister David Orazietti replied that the province is working on the Ring of Fire project.

Pretium shares sink as geologists declare ‘no valid gold’ at B.C. project – by Peter Koven (National Post – October 23, 2013)

October 23, 2013

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

The controversy around Pretium Resources Inc. is escalating after the miner revealed that a highly-respected team of geologists declared its entire resource to be invalid.

The judgment came from Strathcona Mineral Services Ltd., the Toronto firm that famously declared Bre-X to be a scam. Pretium shares plunged 28% to $3.45 on Tuesday as investors absorbed the news.

There is plenty of gold in Pretium’s “Valley of the Kings” discovery in British Columbia, but disagreement persists over how it should be measured. Strathcona, which was hired by Pretium to oversee a bulk sample program for the deposit, resigned two weeks ago because it disagreed with the company’s chosen methodology and found fault with its resource.

Strathcona President Graham Farquharson criticized Pretium management on Tuesday, saying his firm informed Pretium about its concerns several times and they were not immediately disclosed.

Landmark Canada/EU trade agreement could have major implications for miners – by Kip Keen (Mineweb.com – October 23, 2013)

October 23, 2013

http://www.mineweb.com/

If mining doesn’t seem to factor large in CETA, there are still major implications for the sector when the investor protection elements are considered.

HALIFAX, NS (MINEWEB) – A major trade agreement between Canada and Europe could provide significant protection from expropriation, among other things, to Canadian companies investing in Europe and vice versa.

Probably the most significant development in the Comprehensive Economic and Trade Agreement (CETA) for miners on both sides of the Atlantic is the inclusion of an investor-state provision that, in practice, ensures foreign companies a process to recoup damages in cases of expropriation or instances where political process is grossly discriminatory against a foreign company.

“From what we know this is a remarkable agreement,” said Riyaz Dattu, a lawyer with the firm Osler, Hoskin & Harcourt who specializes in international trade law. “It’s going to be like what we already have with the United States and Mexico under NAFTA (North American Free Trade Agreement), but it is broader in the sense that it covers all the European Union countries.

Ring of Fire Under Fire – by James Murray (Netnewsledger.com – October 22, 2013)

October 23, 2013

http://www.netnewsledger.com/

THUNDER BAY – In Queen’s Park today, during Question Period, the NDP Northern Development and Mines Critic Michael Mantha called on the Wynne government to address the lack of progress on development of the Ring of Fire.

“Last year, the Premier went up to Sudbury to announce that the government had reached a deal with Cliffs, and that it would create hundreds of mining jobs from the Ring of Fire,” said Mantha. “Only a year later and it has become clear that not only did this government not have a real deal with Cliffs, but the company is about to pull out of Ontario because of the mess this government has made of the Ring of Fire development plans.”

Mantha said the people of Ontario have been misled by the promise of jobs that have failed to materialize.

PC MPP Norm Miller was also on the attack. Just yesterday Premier, more bad news. One of the major players in the Ring of Fire, Cliffs Natural Resources, described [their] project as being in a tenuous state…if the company doesn’t have a transportation route, they don’t have a project., These are jobs waiting to be unlocked, put in jeopardy by your bungling of this file. What are you doing to ensure access to the Ring of Fire?”

NEWS RELEASE: More communities connect with gold miner-First Nations power partnership

October 23, 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.

Five more First Nations communities in Northwestern Ontario have connected with Wataynikaneyap Power to strengthen its transmission initiative plans. Earlier this year, Ontario Mining Association member Goldcorp and 13 First Nations started this company to develop a transmission line. The goal is to connect remote communities to the provincial power grid and provide more reliable power to communities and companies already connected.

With Deer Lake, Keewaywin, McDowell Lake, North Spirit Lake and Poplar Hill First Nations coming on board, there are now 18 First Nations working with Goldcorp on this project. “Our communities require a reliable power source to be able to participate in economic development opportunities taking place in the region,” said Wataynikaneyap Power Executive Director Peter Campbell. “We look forward to benefiting from this very important infrastructure project.”

“Wataynikaneyap Power is an example of how industry and First Nations can work together on projects that are good for the economy and the environment while benefitting communities in the region for years to come,” said Gil Lawson, Mine Manager for Goldcorp’s Musselwhite Operation, when the power company was launched. Since then, Mr. Lawson has been appointed Vice President Operational Support Canada and U.S. for Goldcorp.

Kathleen Wynne: Ring Of Fire Environmental, First Nations Concerns Must Be Addressed – by Canadian Press (Huffington Post – October 22, 2013)

October 23, 2013

http://www.huffingtonpost.ca/

TORONTO – Ontario Premier Kathleen Wynne says the governing Liberals must address environmental and First Nations concerns before moving ahead with developing the Ring of Fire.

She says there are a lot of “moving parts” in the massive mining project in northern Ontario and the government needs to “get it right.”

Her comments come after one of the major players in developing the Ring of Fire urged the government to ensure the company has access to the chromite deposit.

U.S.-based Cliffs Natural Resources Inc. has been unable to build an all-weather road to the site because it would cross land staked by a rival company. It says the project is in a “tenuous state” and if it can’t get access to the deposit, it will consider pulling out.

Both the New Democrats and the Progressive Conservatives say the economic potential of the project is too important to lose.

Ontario shuts down Lambton power plant ahead of schedule – by Adrian Morrow (Globe and Mail – October 23, 2013)

October 23, 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.

TORONTO — One of the last coal-fired power plants in Ontario has been shut down early, bringing the province’s Liberal government closer to fulfilling a long-delayed promise, industry and Queen’s Park sources told The Globe and Mail.

Energy Minister Bob Chiarelli will announce Wednesday that the coal plant in Lambton, near Sarnia, Ont., finished operating in late September, three months ahead of schedule, the sources said. The government, which is on a long-term mission to replace all of the province’s coal facilities with greener sources of energy, said in January that the Lambton plant, along with another in Nanticoke, would close by the end of the year.

But one source said the government moved the time-frame for Lambton up to the end of September, and the plant burnt its last coal Sept. 26. The source said the Nanticoke plant is set to keep burning until Dec. 31.

Goldcorp shows council pit concept – by Benjamin Aubé (Timmins Daily Press – October 21, 2013)

October 23, 2013

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Goldcorp has finally received a draft of its air and noise control permit from the Ministry of the Environment regarding the Hollinger open-pit mining project. The news was among the updates provided by Goldcorp/Porcupine Gold Mines general manager Marc Lauzier and superintendent of surface operations Paul Miller at city council on Monday.

“We’re hopeful this will move on fairly quickly,” said Miller, relating to the company receiving news on its MOE permit. “We’ll be stripping overburdens of old construction and getting into the mining activity.”

Also presented to council was an initial rendering of what the Hollinger open pit could look like while mining activity takes place there over a projected 10-year lifespan. Designs show three individual pits, which will be the focus of mining activity on the site.

Miller said the design might be modified as the project moves on. Lauzier added the shape of the pit could change “depending on the economics” and the price of gold.

History comes back to haunt in New Brunswick – by Devon Black (iPolitics Insight – October 21, 2013)

October 23, 2013

http://www.ipolitics.ca/

Hey, Canada. We need to talk. Specifically, we need to talk history – because too many of us don’t know about important parts of it. Without that history, it’s impossible to understand exactly what happened when the RCMP stormed First Nations protestors in Rexton, New Brunswick, last week.

First of all, let’s review what happened. In March 2010, SWN Resources Canada — a subsidiary of a Texas energy company — was granted a license to search one million hectares in New Brunswick. Since this summer, protesters — including members of the Elsipogtog (ell-see-book-toq) First Nation — have been fighting SWN’s plans to search for shale gas. To do that, they blocked access to SWN equipment.

SWN went to court to obtain an injunction against the protestors earlier this month. On Oct. 12, that injunction was extended to Oct. 21; hearings were due to be held on Oct. 18 on the possibility of extending the injunction further.

COMMENT: Cliffs threatens pull out of Ring of Fire – by Marilyn Scales (Canadian Mining Journal – October 22, 2013)

May 4, 2015October 22, 2013

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

I can hear it now: “I told you so” from nationalists who believe nothing good ever comes from letting a foreign corporation take over a Canadian miner or junior. After all, it seems as soon as Vale bought Inco, a year long strike began bristling with the animosity Inco had tried so hard to defuse in recent years between itself and the unions.

The nationalist chorus is likely to increase in volume as Cliffs Natural Resources of Cleveland, OH, says it is thinking of pulling out of the Big Daddy chromium-PGM-nickel project in Ontario’s Ring of Fire. Cliffs gained a 70% interest in the project in 2010 when it swallowed Freewest. The remaining 30% is owned by KWG Resources of Toronto.

Since the Ring of Fire in the James Bay region has no infrastructure, developing any mine there will be a massively expensive undertaking. Not the least of the costs will be a means of transportation for concentrates headed to deep water ports. Here, opinions differ – should a railroad or an all-weather road be built?

Indonesia mining at risk over export ban – by Ben Bland (Financial Times – October 22, 2013)

October 22, 2013

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

Indonesia’s mining industry will collapse if the government moves ahead with a planned ban on the export of raw minerals, the country’s chamber of commerce has warned.

The southeast Asian nation, which is facing strong economic headwinds, is the biggest exporter of coal for power stations, nickel ore and tin, and a leading shipper of bauxite and copper. But on January 1 it is set to implement a law prohibiting the export of unprocessed metals as part of a drive to refine the ores and potentially generate higher margins.

Mining companies and independent economists are critical, arguing that at current depressed global prices for both raw and refined minerals, it is not a financially viable option in infrastructure- and energy-poor Indonesia, especially with no commitment to invest from the government.

The US Agency for International Development has argued that the push towards refining coupled with the ban would create few jobs and could lead to $6.3bn of lost economic benefits annually by prioritising spending on refineries with “poor commercial prospects” over investment in the country’s decrepit education, health and infrastructure systems.

NEWS RELEASE: Steelworkers Question Uranium Changes in Canada-EU Deal

October 22, 2013

TORONTO, Oct. 22, 2013 /CNW/ – The Conservative government must come clean on reports that the European Union trade deal will remove foreign-ownership limits from Canada’s uranium industry, says the United Steelworkers (USW), Canada’s largest union of uranium miners.

“We ask the federal government to clarify how this trade deal will affect foreign ownership of Canadian uranium mines,” said Ken Neumann, USW’s National Director for Canada.

“The lack of transparency about this important issue begs the question of what other controversial policy changes are hidden in this agreement. Canadians need to see the full text before our governments sign onto it,” Neumann said.

Last Thursday the federal government released a 44-page summary of the Comprehensive Economic and Trade Agreement (CETA) that features the word “transparent” 15 times, but does not mention the word “uranium.”

However, the Saskatchewan government issued a press release Friday that stated: “The new agreement will also ease Canadian restrictions on EU investment, including in the uranium mining sector.”

No project [in Ring of Fire]? – by Jamie Smith (tbnewswatch.com – October 22, 2013)

October 22, 2013

http://www.tbnewswatch.com/

Ontario needs to intervene if it wants to see a major project in the Ring of Fire go ahead. That’s according to Cliffs Natural Resources, which holds massive chromite deposits in the area. The company has appealed a decision by the provincial mining and lands commissioner that put its plan for an all-weather road, and the project, in jeopardy.

“If there’s no access with the road we potentially don’t have a project,” Cliffs environmental affairs director Jason Aagenes said Tuesday. “There hasn’t been a deadline or an ultimatum but we’ve been very clear with the province this is a problem.”

KWG Resources staked claims for the road for its own plan to run a rail line to the area. But from Cliffs perspective, rail is not a viable option for the project.

Aagenes said having Cliffs buyout KWG is also not an option as there are other companies with claims along the same corridor, which could see similar intervention by the provincial commissioner.

But there are plenty of options for the province to step in as the mining claims are all on Crown land Aagenes said.