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Little Engine that Could pushes rail solution in Ring of Fire – by Wendy Parker (In Support of Mining.com – September 16, 2013)

http://insupportofmining.wordpress.com/

Ontario Mining and Lands Commissioner Report

Boy! Divert your attention for a few days to deal with some pressing business matters, and all heck breaks loose in Ontario’s Ring of Fire mineral zone.

Thanks to a news release from KWG Resources, we learned last week that Ontario’s Mining and Lands Commissioner has rejected a bid from Cliffs Natural Resources for leave to seek an easement that would allow it to build an all-weather access road across a string of mining claims owned by Canada Chrome Corporation, a KWG subsidiary.

Cliffs wanted to dispense with the need to obtain the claimholder’s consent before applying for the easement under the Public Lands Act. The Commissioner’s tribunal, after hearing evidence and arguments in February, found no clear public interest that would outweigh the potential damage such an easement might do to the claimholder’s rights under the Mining Act.

As a result, the Cliffs request failed.

That’s a nutshell version of the decision, of course. The actual September 10 Order is much more nuanced and intricate. It is well worth reading in its 43-page entirety, both for the logic it applies to its deliberations and for the light it casts on a fascinating story behind Ring of Fire development.

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Ned Goodman and the ‘Botox Economy’ – (Northern Miner – September 13, 2013)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. 

Ned Goodman, president and CEO of Dundee Corp., spoke about the perils of quantitative easing at the Toronto Resource Investment Conference on Sept. 12. He made the following remarks, as recorded by The Northern Miner:

Ned Goodman: I have a lot to say and I will give you my biases, no problem there. I believe I’m a sensible man and as a sensible man I’ve been told by my mother, actually, that even though you don’t know the hour or the place of your demise, but you do know, that without a doubt, it’s going to come.

So as a sensible investor, I’m ready for the day that the United States Empire crumbles and that’s a hint as to where I’m going … I know that nothing lasts forever and the environment that we’re in could change, but we do not know anything other than nothing lasts forever and right now it looks like whatever is happening is speeding up, not slowing down. But I expect and hope to be here to watch it happen.

The slide that is on there [on the auditorium screen] is nothing more than to show you, that the fixed income market since 1962, which is when I started my career, has had some unbelievable long runs, we’re not talking of short-term things, we’re talking about long-term things.

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NEWS RELEASE: KWG Resources Inc.: Business Plan for ONR Development of Ring of Fire

TORONTO, ONTARIO–(Marketwired – Sept. 16, 2013) – KWG Resources Inc. (TSX VENTURE:KWG) has previously advised the Minister of Northern Development and Mines (MNDM) that it would support the business plan proposed by the “New Deal” of the General Chairperson’s Association (GCA) representing unionized employees at Ontario Northland.

It is a simple plan:

MNDM would lodge its shares in ONR with a new agency governed by the First Nations and other residents of Northern Ontario, under federal oversight, thus avoiding the very substantial termination and closure liabilities attending the previously proposed liquidation;
KWG would make its railroad engineering and right-of-way claims available for extension of the ONR network to the Ring of Fire; and
The new agency would finance the new construction and continuing operations of the ONR by providing transportation “at cost” to the new Ring of Fire mines, to repay borrowings made at current low interest rates but amortized over the very long life of the new mines and rail line.
Developing the Ring of Fire with a Northern Ontario transportation utility:

Providing egress at cost, will give the Canadian chromium an important advantage that it needs in order to earn a market share.

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Billionaire miner Robert Friedland sounds off – by Tommy Humphreys (Mining.com – September 15, 2013)

http://www.mining.com/

I was able to catch up with billionaire Ivanhoe Mines (TSX:IVN) Executive Chairman Robert Friedland in Toronto yesterday. The Singapore-based mining legend was in Toronto this week to announce the launch of Ivanhoe Pictures, a new film and TV finance and production company, and to host the first investor presentations for his Ivanhoe Mines after a summer spent relaxing and reflecting on the Italian coast, where Mr. Friedland acquired a hotel property earlier this year.

Friedland says that the Chinese are determined to fight air pollution. “I have a home in Beijing but I’ve been avoiding it in recent years because the air pollution has become absolutely diabolical,” Friedland commented. This alone would be enough to drive the conventional Platinum market crazy, he added, noting that catalytic converters which reduce toxic emissions in automobiles use substantial amounts of platinum and palladium.

There is a revolution coming to the automobile industry via the Japanese, according to Friedland. Senior officials in Japan tell him that the Toyota Motor Company will announce hydrogen fuel cell automobiles later this year with a commercial roll out coming in 2015. “These cars will use ounces, not tenths of ounces of platinum,” Friedland said. This is why the Japanese government bought 10% of Ivanhoe’s Platreef project for $300 million, Friedland believes.

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NEWS RELEASE: Anglo American statement re: Pebble project

16 September 2013

Anglo American plc (“Anglo American”) announces that its wholly owned US subsidiary Anglo American (US) Pebble LLC (“AA Pebble”) has given notice under the Pebble limited partnership agreement that it is withdrawing from the Pebble copper project in Alaska. The Pebble Limited Partnership (PLP) was created in 2007 between AA Pebble and an affiliate of Northern Dynasty Minerals Ltd. (“Northern Dynasty”), who are equal partners in PLP. Following the withdrawal, PLP will proceed under the sole ownership of Northern Dynasty.

In light of the parties’ shared desire to ensure an orderly exit, the detailed aspects of AA Pebble’s withdrawal from the Pebble project are being developed and implemented.

Anglo American expects to record an impairment charge of $0.3bn at 31 December 2013 on a post-tax basis.

Mark Cutifani, Chief Executive of Anglo American, said: “Despite our belief that Pebble is a deposit of rare magnitude and quality, we have taken the decision to withdraw following a thorough assessment of Anglo American’s extensive pipeline of long-dated project options. Our focus has been to prioritise capital to projects with the highest value and lowest risks within our portfolio, and reduce the capital required to sustain such projects during the pre-approval phases of development as part of a more effective, value-driven capital allocation model. We wish the project well through its forthcoming permitting process and express our thanks to all those who have supported Pebble and who recognise the opportunities and benefits that such an investment may bring to Alaska.”

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28 miners die in Afghanistan coal mine blast – by Dorothy Kosich (Mineweb.com – September 16, 2013)

http://www.mineweb.com/

Neighbors of the Abkhorak coal mine were among the rescuers who managed to bring 100 miners to safety after 28 miners perished in a coal mine blast in northern Afghanistan.

RENO (MINEWEB) – When 57 miners were trapped after gas explosion at the Abkhorak mine in the Ruyi Du Ab District of Samangan Province in northern Afghanistan, nearby residents dug through the rubble and debris with their bare hands.

However, 28 miners were killed, while 100 of their coworkers were taken to the hospital with minor injuries.

Samangan provincial governor’s spokesman Mohammad Seddiq Azizi told the BBC that four members of the rescue teams were badly injured, while 14 men were overcome with fumes, but were brought out safely. Samangan’s Deputy Security Chief Mosadiqullah Muzafari said four rescue workers were badly injured.

Workplace safety standards are considered poor in Afghanistan and mine accidents are considered common. Javed Noorani of Integrity Watch Afghanistan told Al Jazeera that 90% of mining in the country is illegal. In December, 11 miners were killed in a mine collapse in the northern province of Baghlan.

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Northeast eyed for future hydro electric projects – by By Ron Grech – (Timmins Daily Press – September 16, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – The groundwork is being laid for future waterpower generation projects in Northeastern Ontario. This would include providing power to serve mining operations within the Ring of Fire region as well improving infrastructure for First Nation communities currently dependent on diesel-powered generators.

Ontario Waterpower Association announced last week it has teamed up with the provincial government and the Ontario Power Authority to develop a study that will provide the basis for the province’s energy plan over the next 15 to 20 years.

“Northeastern Ontario has been a pretty critical part of serving the provincial energy needs for decades,” said OWA president Paul Norris. “It is a pretty strategic resource you have in Northeastern Ontario in terms of the overall reliability of our provincial system.

“The question going forward is what other hydro can be built?”

Norris said the announced study, which also involves the ministries of energy and natural resources, will identify opportunities and outline the cost and feasibility for expanding hydroelectric power generation throughout the North.

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Geopolitical risks rising to the top of investors’ minds – by David Pett (National Post – September 14, 2013)

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

The threat of U.S. military intervention in Syria has held global investors captive this month, resulting in excessive volatility for certain equity and commodity prices. Markets this week rallied on expectations such a military strike may be avoided, but most analysts believe the turmoil surrounding the situation is far from over and could persist for weeks to come.

If so, it will remain the biggest geopolitical risk investors will have to deal with this fall, but, like it or not, it won’t be the only one they will face. “The challenge is a big one,” said Pierre Fournier, a geopolitical analyst at National Bank Financial. “Geopolitics are not always predictable, but neither are company earnings, so you have to take notice.”

In its truest sense, geopolitical risk encompasses both geographic and political factors that could positively or negatively impact capital markets. This includes events such as civil wars, labour strikes and general elections, as well as highly politicized affairs like the upcoming U.S. budget deadlines and Silvio Berlusconi’s possible expulsion in Italy.

Mr. Fournier’s analysis also includes demographic trends, cultural and religious dynamics and structural economic issues that may impact the long-term stability of a nation or region. He spends time, for example, on the impact tribal factions have on Africa’s mining industry, and what kinds of jobs might be created in the U.S. 10 years from now.

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Fort McKay oil sands ambassador at odds with industry – by Claudia Cattaneo (National Post – September 14, 2013)

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

With the Fort McKay band seeking leave to appeal the recent Alberta Energy Regulator’s decision to approve the 250,000 barrels-a-day Dover oil sands project, uncertainty is far from over for Athabasca Oil Corp. and the project’s majority Chinese partner, PetroChina.

Similar uncertainty is poised to spread to other oil sands players in the area, who have been summoned by the wealthy band to a meeting on Thursday to discuss the Moose Lake reserve and why it needs a hefty buffer zone from development.

The upshot: The dispute between oil sands neighbours has the makings of a legal runaway train, a public relations mess and an impediment to good relations between the industry and the most productive and so-far supportive aboriginal community in the region.

As Bill Gallagher, a lawyer, aboriginal expert and author put it: “The oil sands, which undeservedly is continuing to garner an international black eye, now has soured the person who could be the most helpful in putting a happy face on it,” he warned. “[Fort McKay chief] Jim Boucher could have been the most important ambassador the oil sands ever had, and instead he’s going to go to the wall on an issue of vital importance” to his band. Mr. Gallagher believes the Fort McKay’s legal case is strong, and if successful could lead to years of litigation as other First Nations start demanding buffer zones between reserves and projects.

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Good news of gold in NOW (Thunder Bay Chronicle-Journal – September 16, 2013)

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

This is the ninth instalment of a multi-part series looking at the mining sector in Northwestern Ontario and the Ring of Fire development.

“For more than 2,000 years, the natural properties of gold have made it man’s universal medium of exchange. In contrast to political money, gold is honest money that survived the ages . . .’’

Although not everyone might agree with this rather dramatic statement, it is difficult to deny the timeless allure of the yellow metal and its association with wealth, strength and excellence.

References to gold permeate our culture, hence terms like “gold seal of approval,’’ “good as gold” and the awarding of first-place gold medals to the best of the best.

Despite its vulnerability to interest rates and market fluctuation, German-born economist, Hans F. Sennnhotz (1922-2007) demonstrated his complete faith in gold as a universally enduring commodity when he made this statement. Gold remains a powerful economic driver and is still a monetary reference in many of the world’s economies, where the value of a bill still guarantees or is “backed up” by a certain amount of gold.

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U.S. Coal Companies Scale Back Export Goals – by Clifford Krauss (New York Times – September 14, 2013)

http://www.nytimes.com/

HOUSTON — The ailing American coal industry, which has pinned its hopes on exports to counter a declining market at home, is scaling back its ambitions as demand from abroad starts to ebb as well.

Just south of here, New Elk Coal terminated its lease late last month at the Port of Corpus Christi, where it had hoped to export coal to Brazil, Europe and Asia. Two days later, when the federal government tried to auction off a two-square-mile tract of land in Wyoming’s Powder River basin, a region once poised to grow with exports to Asia, not a single coal company made a bid.

They were the latest signs that a global coal glut and price slump, along with persistent environmental opposition, are reducing the likelihood that additional exports could shield the industry from slipping domestic demand caused by cheap natural gas and mounting regulations.

United States coal exports this year are expected to decline by roughly 5 percent from last year’s record exports of 125 million tons, and many experts predict the decline will quicken next year. At the beginning of 2012, the coal industry had plans to expand port capacity by an additional 185 million tons. But those hopes have faded this year.

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As a Boom Slows, Peru Grows Uneasy – by William Neuman (New York Times – August 19, 2013)

http://www.nytimes.com/

LIMA, Peru — From his office window, Henrik Kristensen, the chief executive of the company that runs Peru’s main port, can still look out at rows of newly arrived, shiny Kia automobiles from South Korea and shipping containers stacked four high, full of imported items like television sets and brand-name clothing bound for the growing number of malls that serve this country’s burgeoning middle class.

“This is Peru,” he said. “When you go to the shopping malls they’re full of people, they’re full. That’s a good indicator that people are really spending money.”

Peru’s economy grew an average of 6.4 percent a year from 2002-12 after adjusting for inflation, according to government figures, a remarkable period of sustained expansion that has made it one of the world’s star economies.

But suddenly growth has slowed here, and just beyond the view from Mr. Kristensen’s window, under Lima’s perpetually gray winter sky, the reason becomes clear.

At Dock 5B, ships are loaded with Peru’s mining riches, including copper ore, lead and zinc — the raw materials that fueled the Peruvian boom with their rising prices in recent years.

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Ontario’s Mining Albatross: Ring of Fire on life-support for years to come – by Bill Gallagher LL.B. Strategist (September 13, 2013)

www.billgallagher.ca

The opening sentence of the latest legal ruling emanating from the James Bay lowlands says it all: “The north is not a quiet place”. That’s because throughout this 43-page ruling it’s the lawyers who are profiled in full court press in what is a tour de force of no-holds-barred resource sector litigating. They’re the sole reason the north is not a quiet place; because when the dust settles, this ruling will make the Ring of Fire quieter than a subarctic winter’s night for years to come.

To cut to the chase, Cliff’s Natural Resources has failed in its drive to force KWG Resources to accommodate its proposed all-season road (intending to run along the latter’s proposed rail line). Both proposals centered on KWGs ‘corridor’ of mining claims that likewise run along the only elevated / esker route into the Ring of Fire. What this means is that KWG Resources has 100% maintained its priority of mining claims integrity – as the only route into the Ring of Fire. Cliffs has been denied access.

As in The Rhyme of the Ancient Mariner, this ruling will now hang over the Ring of Fire like a dead albatross. The only question is who gets to have it hung around their neck; because this ruling puts all the players in the same boat in terms of project doldrums. As limericks go (with apologies to Coleridge):

Water, water every where … nor any drop to drink

Lawyers, lawyers everywhere … nor any shaft to sink.

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Coal industry predicts bright future – by Derrick Penner (Vancouver Sun – September 13, 2013)

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

Exports from Western Canada likely to double over next decade, conference hears

Coal, unloved by environmentalists and battered by a global market glut that has ravaged corporate profits, is still likely to see its production and exports double from Western Canada over the next decade.

“Western Canada produces mainly metallurgical coal for the steel industry and it’s got a lot of things going for it,” said Gerard McCloskey, moderator for the Coal Association of Canada’s annual conference that is in Vancouver this week.

McCloskey, a U.K.-based industry consultant, said Western Canada remains attractive because of its good quality and untapped reserves, and he said while markets are oversupplied now, there is still considerable room for growth, particularly in the Pacific.

“I would think there will be, in my own forecast, a doubling of exports from Western Canada over the next 10 years,” McCloskey said. The coal association conference gathered more than 300 industry participants from all levels of the mining sector and its supply chain, from equipment dealers to consultants and transportation specialists.

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Zambia’s economy set to grow by 8.1% in the next few years – by Zandile Mavuso (MiningWeekly.com – September 13, 2013)

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

The completion of major copper mining projects in Zambia next year is expected to contribute to economic growth of 8.1% from 2014 to 2016, advisory firm KPMG states.

“Copper production in the country peaked in the 1970s at 700 000 t and gradually declined to 255 000 t by 1998, as a result of depressed prices and under- investment in the then State-owned industry. However, as copper production soars on the back of the completion of major projects and also because of the development of the new Trident mine, operated by Canada-based mining company First Quantum Minerals (FQM), Zambia is set to be at the peak of copper production once again,” says KPMG senior partner in Zambia Jason Kazilimani, Jr.

FQM reports that one of its major projects, the Kansanshi mine, has under- gone several significant expansions – the most recent being a smelter that is currently being built. It is estimated that the smelter will produce 300 000 t/y of treated copper concentrate. Before this new development, the mine’s initial production capacity was 110 000 t/y of copper.

By 2015, the yearly production should reach about 400 000 t of copper, which is a major achievement that will ensure the mine reaches it one-million tons of total copper production by 2017.

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