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Resource riches pull Canada into geopolitical battle it can’t afford to lose – by Diane Francis (National Post – October 19, 2013)

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

An ocean of natural gas and oil surrounds tiny Inuvik in the Northwest Territories, but this summer officials had to truck in propane from Alberta because the village’s only producing natural gas well is running out.

Inuvik’s Mayor quipped to a Post colleague: “It’s like me ordering up a truckload of ice from Alberta.” While a zany story, Inuvik’s untapped resources, and non-existent infrastructure to develop or deliver them, is becoming a metaphor for Canada itself. This is a country with energy, metals and minerals galore, that the world wants, but a country that cannot get its act together.

The latest, most egregious example of this problem revolves around the lack of strategy, politics and recurring media flashpoints concerning pipelines and, to a lesser extent, power generation infrastructure.

The anti-infrastructure forces are so out of control that recently dozens of people in Ontario and Quebec were arrested protesting pipeline projects: Not new pipelines but pipelines that have been in operation for decades and merely want to reverse direction.

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Mining academy equips students with high-tech know-how – by Nick Martin (Brandon Sun – October 21, 2013)

http://www.brandonsun.com/

‘Hands-on applied learning’

FLIN FLON — No, a pickaxe isn’t on the list of school supplies. Not like when Dallas Mihalicz’s forebears went down into the mines.

The 18-year-old from Flin Flon wants to follow them, but she’d be operating with sophisticated technology or working the controls of a 50-ton loader two kilometres below the rugged Canadian Shield.

Though, more likely, Mihalicz wouldn’t get near the underground until she’d put in her time working on the frozen tundra at an exploration camp searching for the next motherlode. “I’ve been growing up around mining, my father, grandpa, uncle. My dad’s a geologist,” said Mihalicz, who graduated from Flin Flon’s Hapnot Collegiate in June.

Most of her current 11 classmates took far more circuitous routes to University College of the North’s Northern Manitoba Mining Academy, which opened only a year ago in downtown Flin Flon, next door to the hospital and practically in the shadow of the HudBay Minerals mine.

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NEWS RELEASE: North American Palladium Commences Shaft Hoisting at Lac des Iles

 Defers Phase II Expansion at Depth to Pursue Lower Cost Lateral Growth Opportunities

TORONTO, ONTARIO–(Marketwired – Oct. 21, 2013) – North American Palladium Ltd. (“NAP” or the “Company”) (TSX:PDL)(NYSE MKT:PAL) is pleased to announce that it has begun hoisting material through the new shaft at its Lac des Iles (“LDI”) palladium mine in northern Ontario. The production, service and auxiliary hoists are now fully operational and the skipping system has been successfully tested with full loads of material.

The complete commissioning of the shaft ore handling system, including the crusher and loading pocket, is on target for completion later in October, following which production is expected to be predominately transitioned from ramp to shaft haulage. This will effectively mark the completion of the mine’s Phase I expansion, enabling NAP to benefit from increased production at a reduced cash cost per ounce.

The Company maintains its target of increasing its underground mining production rate to over 3,000 tonnes per day from the underground Offset Zone during the fourth quarter, with plans to further increase the daily mining rate in 2014.

“The first skip of our new production shaft marks a very significant milestone for North American Palladium, positioning the Company for improved operating margins and a return to profitability in 2014,” said Phil du Toit, NAP’s President and Chief Executive Officer.

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Mining group Eramet plans more savings as nickel stays weak – by by Gus Trompiz (Reuters India – October 21, 2013)

http://in.reuters.com/

PARIS – Oct 21, 2013 (Reuters) – Eramet on Monday said it would step up cost saving measures to counter the effects of a depressed nickel market, which contributed to a five percent fall in the mining group’s third quarter sales.

Benchmark prices of nickel, mainly used in stainless steel, sank to a four-year low in July due to poor industrial demand and rising stocks, leaving a swathe of global production operating at a loss.

Eramet reported a 5 percent year-on-year fall in third-quarter sales to 754 million euros ($1.03 billion), which included a 23 percent decrease for its nickel division.

“The Group is stepping up its measures to decrease its costs and capital expenditure, adjust its productions to its markets and reduce its working capital requirements,” Eramet said in a statement, without giving details.

The company reiterated that current operating profit in the second half would be “significantly lower” than in the first half, when Eramet reported a 9 million euro loss.

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Wynne’s [Ontario] electricity disaster – by Lorrie Goldstein (Toronto Sun – October 20, 2013)

http://www.calgarysun.com/home

Ontario’s Liberal government is making up its energy policy on the fly, for its own political ends

In explaining why Ontario’s Liberal government scrapped its previous intention to build two new nuclear reactors, Energy Minister Bob Chiarelli offered up that the province now has a “comfortable surplus” of electricity.

That’s a strange way of describing the decimation of Ontario’s manufacturing sector — in part due to the uber-high electricity rates the Liberals have contributed to with their insane rush into expensive and unreliable wind and solar power.

Indeed, the main reason Ontario now has a “comfortable surplus” of electricity — whereas a mere decade ago we were worried about shortages and rolling brownouts — is not because our supply is better but because our economy is worse.

Simply put, when there are fewer manufacturers producing fewer goods, electricity demand goes down. If and when our manufacturing sector recovers, electricity demand will rise again, and that’s when we’ll need adequate sources of it if we’re not to return to the dire situation of just 10 years ago when Ontario was routinely described as “power starved” by energy experts.

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Canadian miners should learn from Gabriel’s missteps – by Eric Reguly (Globe and Mail – October 19, 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.

ROME — After almost two decades of false starts and a running battle with some of the savviest environmental groups on the planet, it’s make-or-break time for Europe’s biggest and most politically sensitive gold project. In early November, the Romanian government will, like a Roman emperor at a gladiator fight, give the thumbs up or thumbs down to Gabriel Resources Ltd.’s $1.4-billion (U.S.) Rosia Montana mine in Dracula’s legendary homeland, Transylvania.

The vote could go either way, though the share price says the odds are against the Toronto-listed company. Gabriel’s stock collapsed early last month, falling from $1.47 (Canadian) to as low as 41 cents, when Romanian Prime Minister Victor Ponta said parliament would likely reject a draft mining law that would allow the project to go ahead. (It’s now at 93 cents.) Gabriel’s response was to threaten the government with a $4-billion (U.S.) lawsuit if the law were to die. That threat still stands. Rosia Montana’s future lies in the hands of lawmakers and lawyers, not engineers and financiers.

Gabriel says a lot about what’s right and what’s wrong with Canadian gold miners, which dominate the industry. About half of the top names are Canadian, among them Barrick, Goldcorp, Yamana, Kinross and Eldorado. They are big risk takers, superb at engineering and financing and occasionally capable of impressive value creation.

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Canada can’t lose focus on energy projects – by Gwyn Morgan (Globe and Mail – October 21, 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.

A recent Credit Suisse report offers a startling snapshot of the relationship between American and Canadian personal wealth. For 2013, U.S. median personal wealth sits at $44,900 (U.S.), while in Canada it stands at $90,300. Part of that dramatic difference is thanks to Canada’s relatively untroubled housing market in the wake of the 2008 global financial crisis, but the fundamental factor is the country’s robust economic performance.

And Canada achieved this thanks to its rich endowment of natural resources. While both countries have lost manufacturing jobs to China, new Canadian jobs were being created to supply China’s appetite for energy, metals and lumber.

Canada is the world’s sixth-largest oil producer, third-largest natural gas producer and third-largest producer of hydroelectricity. In mining, it is the top potash producer, second-largest uranium producer, third-largest aluminum producer and ranks as one of the world’s top five producers of other key minerals and metals.

In 2011, the resource sector employed 1.6 million people, directly and indirectly, and generated $233-billion in export revenues, according to Natural Resources Canada.

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Northern Ontario Heritage Fund Corporation (NOHFC) gets facelift – by Leith Dunick (tbnewswatch.com – October 18, 2013)

http://www.tbnewswatch.com/

Mayor Keith Hobbs says changes to the Northern Ontario Heritage Fund Corporation are the start of a new era of economic prosperity in the North.

Nipigon Mayor Richard Harvey said he’s optimistic the revamped focus will make it easier for communities and businesses to weave their way through the application process. On Friday Minister of Northern Development and Mines Michael Gravelle said the enhancements to five NOHFC programs were made with the Growth Plan for Northern Ontario in mind.

Gravelle said the new plan, which tailors itself to strategic economic infrastructure, community capacity building, innovation, northern business opportunity and includes a revamped Northern Ontario internship program, was also built with the guidance of community and business leaders in the region.

“We felt it was very timely for us to look at the priorities in the Northern Ontario Growth plan and to see whether or not the programs that were in place fit the priorities that were identified in the Growth plan,” Gravelle said.

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Thinning crowd of junior miners provides both opportunity and risk – by Henry Lazenby (MiningWeekly.com – October 18, 2013)

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

Investing in minerals-focused junior companies is not for everyone, and is often left to highly sophisticated investors and speculators; however, some investors include juniors in their portfolios for the sake of diversification.

While some investors favour precious metals, as they tend to have more utility, there is a wide range of juniors involved in searching, staking, proving up and even developing projects in every mineral category, but the road from discovery to mine is fraught with dangers for companies and investors alike.

Being on the small side, these companies could offer greater growth potential but this also comes at greater risk. With gold’s plunge this year, some wary investors have steered clear, while others see huge opportunity.

Few junior gold miners have delivered strong performances over the past year, but their depressed prices could represent more attractive entry points for interested investors, albeit at extreme risk, owing to many of these being in dangerous penny-stock territory – below $5 apiece.

Gold stocks – particularly those of juniors – have been undervalued for longer than many investors thought possible. But, as in all things, most believe that the undervaluation cycle will eventually have to be broken.

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Tanzania: Barrick Gold – Compensation to Villagers Brings Joy -by Mugini Jacob (All Africa.com – October 18, 2013)

http://allafrica.com/

IT has been all smiles with the locals in the neighbourhood of North Mara Gold Mine since last week after word went around that African Barrick Gold(ABG) has released compensation amounting to 8.12 bn/-.

The villagers have been anxiously waiting for the compensation after a special task force formed by the government completed evaluation on the areas needed by the mine to expand its operations.

Paulo Ludovick is one of those who will share the spoils after accepting to sell part of his land to the ABG, the leading Tanzanian gold producer with several gold mines located in the lake zone region.

“People will pocket 8bn/-. It has never happened in a single episode, and it is just a small piece of land”, Mr Ludovick told the’ Daily News’ About 382 men and women are on the list of the ABG’s latest compensation initiative to communities living near Nyamongo area in Tarime District of Mara Region.

The compensation has been dubbed phases 33 and 26. Compensation of many phases have been done in the past and payment of other several phases are being prepared, according to a credible report from the Tarime District Council made available to the ‘Daily News’ this week.

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Baffinland CEO says no to shipping ore through Northwest Passage – by Paul Waldie (Globe and Mail – October 16, 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.

BRUSSELS — The head of a Canadian mining company developing a massive mineral deposit within the Arctic Circle said the Northwest Passage won’t work as a viable shipping route to Europe and Asia.

Baffinland Iron Mines Corp., which is owned by steel giant ArcelorMittal and private equity firm Iron Ore Holdings LP, is building one of the largest iron ore mines in the world on Baffin Island in Nunavut. The $750-million Mary River mine is on track to open in 2015 and the ore will be shipped to Europe.

“In my opinion the Northwest Passage is not a transit route of any significance,” Tom Paddon, Baffinland’s chief executive, told the Arctic Futures 2013 conference in Brussels on Thursday.

Mr. Paddon said one problem is the Northwest Passage’s depth, which prevents it from becoming a major trade route. Many commodities such as iron ore and coal are shipped on bulk carriers that need a depth of up to 19 metres, also known as “capesize” vessels. Much of the Northwest Passage is only 15 metres deep.

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Is BHP looking to escape the nickel market? – by Ryan Newman (The Motley Fool – October 18, 2013)

http://www.fool.com.au/

BHP Billiton’s (ASX: BHP) rivals are once again suspecting that the miner could be on the move to offload its largest nickel assets as part of its strategy to heavily reduce costs and increase its focus on core operations.

As reported by The Australian Financial Review, it is believed that the miner had placed its Nickel West and Cerro Matoso mines up for sale earlier in the year. This belief was bolstered when the company’s new CEO, Andrew Mackenzie, notably excluded nickel from his “four pillar” strategy in May, which outlined the company’s core operations and focus areas moving forward.

Speculation has once again heightened that the sale of the assets could be a very real possibility – particularly after the company was forced to impair its Nickel West asset by US$1.2 billion, according to BHP’s annual report.

Meanwhile, many believe that right now could be the bottom of the nickel market which would increase the interest in BHP’s assets. Whilst now may not prove to be the most profitable time to part ways with the mines, it would allow the miner to focus more heavily on reducing operating costs and increasing productivity in other key areas.

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Bob Rae says mining will help First Nations – by Kyle Gennings (Timmins Daily Press – October 18, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Inclusion, expansion and understanding were the central theme of the Nishnawbe Aski Development Fund’s Mining Ready Summit. The keynote speaker continued to convey the point.

Former Ontario premier Bob Rae spoke about the need to include First Nations in all aspects of development, increasing accessibility to remote Northern communities and spreading the potential wealth found in the Ring of Fire development.

“I think that the current model is ready to be put into action,” said Rae in an interview following his speech. “I think that building sustainability into the approach that companies are taking, I think that we need to look at sustaining communities and sustainability is about the people as well as the environment.”

Rae was referring to the remote First Nations communities like Attawapiskat, Martin River and Moose Factory; communities which have close proximity to current and future economic development.

“We need to recognize that development needs to happen,” said Rae.

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Orazietti squares off with [environmental commissioner] watchdog – by Elaine Della-Mattia (Sault Star – October 17, 2013)

http://www.saultstar.com/

Ontario’s environmental watchdog issued a warning that the province has changed legislation that will see its natural resources exploited – something Sault MPP and Minister of Natural Resources David Orazietti argues vehemently against. Environmental commissioner Gord Miller states in his annual report that provincial government cutbacks announced during the spring budget will result in the Ministry of Natural Resources having less power to protect Ontario’s resources. 
Instead, the powers will be delegated to private companies, which in turn could lead to exploitation of Crown land, wildlife and natural resources, the report states.

He referred to Ontario’s far north as turning into the “wild west,” particularly with the potential development around the Ring of Fire, expected to be the province’s most promising mineral development of chromite and warns that major industrial activities can proceed with few checks.

He also criticized the government for a lack of an action plan to deal with invasive species like the Asian carp and emerald ash borer.

But Orazietti counters that Miller has misinterpreted the rules and that the new power for private companies only deals with minor changes on issues like dredging permits and the removal of vegetation that only has minimal environmental impact.

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Analysis: Lurching gold prices mystify traders, undermine confidence – by Frank Tang (Reuters Canada – October 18, 2013)

http://ca.reuters.com/

NEW YORK (Reuters) – In the early hours of the New York morning on Thursday, when scarcely a few hundred lots of gold futures are usually traded, a wave of buy orders worth over $2.3 billion surged into the market.

Prices soared 3 percent in just 10 minutes, setting the tone for the next 12 hours of trade – and puzzling many traders and investors who have been rattled by a series of similarly abrupt, and largely unexplained, trade surges over the past two weeks.

While sudden swings in the price of gold are nothing new, the usual causes – a shock in economic data or a “fat finger” erroneous trade – don’t seem to fit. While the U.S. dollar had also tumbled on Thursday, bullion’s move was far more extreme.

Some are pointing at spin offs from today’s predominantly 24-hour electronic trading, with a far smaller number of market makers on the trading floor to match orders and provide liquidity.

The half-dozen mammoth orders whipsawed prices and disrupted trade in the CME Group’s (CME.O: Quote) Comex futures, a market already edgy about bullion’s fading safe-haven appeal and its lackluster performance during the U.S. budget impasse.

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