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Another gold CEO bites the dust – this time at African Barrick – by Lawrence Williams (Mineweb.com – August 21, 2013)

http://www.mineweb.com/

African Barrick Gold’s CEO Greg Hawkins has resigned and has been replaced by Bradley Gordon, formerly with Intrepid Mines, to try and improve the fortunes of the African gold miner.

LONDON (MINEWEB) – African Barrick Gold (ABG), which has seldom seemed able to meet its operating objectives since its spin-off from parent Barrick Gold and listing on the London Stock Exchange three years ago, has announced the resignation of its Chief Executive Officer, Greg Hawkins ‘to pursue other opportunities’, and his replacement by Australian Bradley Gordon who takes over with immediate effect. Gordon resigned from his previous position as CEO of Intrepid Mines last month – presumably with the ABG appointment already settled.

Thus, Hawkins is the latest gold mining company CEO to be ousted, in this case to see if new blood can revitalise the ailing African gold miner. African Barrick stock has lost 73% of its value since its launch in 2010 and, although part of this fall is attributable to the plunging gold price and so outside management control, Hawkins is seemingly carrying the can for the company’s continual underperformance.

ABG operates three mines in Tanzania and is that country’s largest gold miner. The flagship mine is the Bulyanhulu underground operation and the others are Buzwagi (open pit) and North Mara, also an open pit operation. A fourth mine, Tulawaka, was closed down earlier this year as it was uneconomic.

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Mayors want Northern Ontario summit – by Laura Stricker (Sudbury Star – August 21, 2013)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

In an effort to put life into Northern Ontario’s economy, the region’s five largest municipalities will host a summit with the province later this year. “We’re looking towards the end of the year (for the Northern Ontario Summit). We’re just looking at the logistics now,” Mayor Marianne Matichuk said Tuesday from Ottawa, where she’s at the annual Association of Municipalities of Ontario (AMO) conference.

The three-day conference brings together 1,600 people from across Ontario. Councillors Fabio Belli, Claude Berthiaume, Doug Craig, Evelyn Dutrisac, Terry Kett and Andre Rivest are there as well.

Matichuk, along with the mayors of Timmins, North Bay, Sault Ste. Marie and Thunder Bay, presented their Northern Priorities Document to seven provincial government ministers.

The document includes six items the mayors believe are necessary for Northern Ontario to thrive: A cohesive relationship between municipalities and all government ministries, reliable infrastructure funding, affordable energy, workforce development with a focus on immigration, more money for research and resource revenue sharing.

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FedNor minister optimistic about Ring of Fire “legacy” project – by Lindsay Kelly (Northern Ontario Business – August 2013)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Greg Rickford has only been in his new role a month, but he vows he will do things differently as minister of state, science and technology, FedNor and the Ring of Fire. But FedNor’s mandate will stay the same.

“With respect to FedNor, we will continue to remain focused on our core principles: community economic development, business growth and innovation, and economic development initiatives,” said Rickford, who was appointed to his new role after a July cabinet shuffle, during a stop in Sudbury at a Chamber of Commerce luncheon.

By a show of good faith, he’s hired on a Northerner in the newly created role of senior policy advisor, who will answer directly to Rickford’s chief of staff. Mark Wright, a Lakehead University grad and the former director of the Thunder Bay Port Authority, will be exclusively focused on Northern Ontario, FedNor and the Ring of Fire, which Rickford deems “a legacy project.”

With a value of $93 billion in 2012, products from Canada’s mineral industry make up more than a fifth of the country’s exports, Rickford said. Projects like the development of the Ring of Fire chromite deposit, located in the James Bay Lowlands, are poised to add even more value to that sector.

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Amplats to cut 7,000 South African jobs, union ‘shocked’ – by Sherilee Lakmidas and Ed Stoddard (Reuters U.S. – August 19, 2013)

http://www.reuters.com/ 

JOHANNESBURG – (Reuters) – Anglo American Platinum (Amplats) said it planned almost 7,000 job cuts at its South African operations including thousands of compulsory lay-offs, drawing an angry response from a labor union and raising the risk of renewed unrest at its mines.

Amplats (AMSJ.J), the world’s top platinum producer and a unit of Anglo American (AAL.L), had aimed for 14,000 job cuts after posting its first loss last year, but lowered the target after a backlash from the government and the unions, which organized a series of strikes.

After months of consultations with government officials and worker representatives, the company said 6,000 mining jobs would go and that “approximately 900 corporate and overhead employees will also be affected”.

The addition of white-collar job cuts might alleviate some criticism of the lay-off plan, since not only blue-collar workers would be affected. But at least one union saw the decision by Amplats as a betrayal, saying the company had committed only last week to avoiding forced lay-offs.

“We are shocked. Our agreement with Amplats was to cut 3,000 jobs and those jobs would not be forced retrenchments but voluntary severance packages.

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NEWS RELEASE: PM [Stephen Harper] announces support for Northern Innovation in Mining

19 August 2013 – Whitehorse, Yukon

Prime Minister Stephen Harper today announced support for the creation of a new Centre for Northern Innovation in Mining (CNIM) at Yukon College, which will create jobs and stimulate economic growth throughout the region. The Centre will help Northerners acquire the skills they need to fill local jobs in the rapidly growing mining and exploration sectors, while conducting applied research and enhancing Yukon’s attractiveness for mining investment. The Prime Minister was accompanied by Leona Aglukkaq, Minister of the Environment, Minister of the Canadian Northern Economic Development Agency (CanNor) and Minister for the Arctic Council, Joe Oliver, Minister of Natural Resources, Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development, Senator Daniel Lang and Ryan Leef, Member of Parliament for Yukon.

“Our Government is taking action to create the right conditions for continued growth in the Northern mining sector, and to ensure that Northerners derive maximum benefit from the abundant natural resources in their territories,” said Prime Minister Harper. “Our Government’s investment in this new Centre will address critical skills shortages facing the region, while providing the citizens of Yukon and the North with better access to the education and training that can lead to high quality jobs.”

The CNIM will be a one stop state-of-the-art education, training and research facility for people looking to begin a career in the mining industry as well as for those who want to improve their skills. Through the Centre, thousands of Yukoners will have access to accredited career training opportunities, helping provide a solution to current and future skilled labour shortages in the territory.

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UPDATE 2-Glencore seeks fresh start with $7.7 bln hit to Xstrata mines – by Clara Ferreira-Marques (Reuters India – August 20, 2013)

http://in.reuters.com/

LONDON, Aug 20 (Reuters) – Glencore Xstrata took a $7.7 billion hit on Xstrata’s mining assets on Tuesday, drastically reducing the value of early-stage projects after falling prices dragged down first-half profit.

The mining industry has been pummelled by billions of dollars in writedowns since the start of the year, with cooling prices and demand prospects denting the value of mining projects.

Glencore had been expected to follow suit once it completed the acquisition of Xstrata, and in its first post-takeover results on Tuesday it announced the figure alongside a 9 percent drop in core profit.

In absorbing the impact of a drop in commodity prices during the time it took to close the marathon takeover, Glencore wiped out all the goodwill value it had provisionally allocated to Xstrata’s mines at the time of the merger.

“We just had to value the business with a blank sheet of paper,” Chief Financial Officer Steven Kalmin said.

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High-quality coal and house prices: A B.C. town’s second chance – by Brent Jang (Globe and Mail – August 20, 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.

VANCOUVER — Tumbler Ridge Mayor Darwin Wren predicts that the quality of British Columbia coal will keep his northeastern B.C. community afloat.

In 2001, Mr. Wren moved from Fort Nelson to Tumbler Ridge, where he bought a house for $28,000, just months after the nearby Quintette coal mine closed amid depressed prices for the commodity. Hundreds of houses were auctioned off in the fall of 2000 as the closing of Quintette triggered fears that Tumbler Ridge would turn into a ghost town.

The town persevered, however, as new coal mines opened several years later. Houses like the one Mr. Wren bought 12 years ago are now worth at least $200,000, despite a slump in coal markets since 2011 that has reduced coal production in northeastern British Columbia.

It’s a recurring theme for Canada: Despite efforts to diversify economically, prosperity rises and falls on the back of demand for what miners can pull out of the ground. More often than not, prices for these products find a floor and rebound.

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BHP delays $14 billion Canada potash push as profit drops – by Sonali Paul (Reuters U.K. – August 20, 2013)

http://uk.reuters.com/

MELBOURNE – (Reuters) – BHP Billiton’s new chief has put his stamp on the top global miner, mapping out a cautious approach to expanding into the potash market, which it sees as its next big growth business beyond 2020.

CEO Andrew Mackenzie outlined the low-risk course as he handed down his first results, reporting a 15 percent drop in half-year profit before one-offs, which missed forecasts largely due to Australian mining tax adjustments and other non-operational items.

BHP and Glencore Xstrata wrapped up the results season for the world’s big five miners, with BHP holding up slightly better than its peers as it stepped up output of iron ore, copper, coal and oil and slashed $2.7 billion in costs in the face of sliding commodity prices.

Major miners have come under pressure to rein in spending, sell off underperforming assets and tackle debt after years of rampant spending on new mines and acquisitions as commodity prices soared. Reflecting the austerity drive, BHP said it plans to invest $2.6 billion over the next four years digging shafts at the Jansen potash project, delaying production at least until 2020 from its original 2015 target, while inviting offers for stakes in the mine.

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Sandy Winick: Alleged penny stock fraud kingpin arrested in Thailand – by Tony Van Alphen and Madhavi Acharya-Tom Yew(Toronto Star – August 20, 2013)

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.

Police in Thailand say they have captured Sandy Winick, alleged Canadian kingpin of one of the biggest penny stock frauds ever.

Canadian fugitive Sandy Winick, accused of masterminding a massive international stock fraud, allegedly bragged that no one would ever catch up to him.

But less than five days after U.S. authorities charged the former Torontonian and eight other individuals, he is behind bars in Bangkok, Thailand, awaiting extradition proceedings.

The FBI confirmed Monday that the Royal Thai police had captured the elusive Winick, 55, in his room in the city’s Marriott Empire Place hotel during the weekend.

Police have now arrested eight of nine individuals in what the U.S. Justice Department calls one of the biggest international penny stock frauds and advance fee schemes “in history.”

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Chilly Arctic history bodes ill for Energy East pipeline – by Earle Gray (Toronto Star – August 20, 2013)

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.

Reserves of Canadian Arctic gas remain in the ground decades after their discovery

Winning approval to build TransCanada Corp.’s proposed $12-billion Energy East pipeline to move oil from Athabasca to the Atlantic could be the easiest part. Consider the four-decade history of government-approved plans of TransCanada and others to pipeline gas from the Arctic.

They were launched by the 1968 discovery of North America’s largest accumulations of both crude oil and natural gas. Most of the oil at the Prudhoe Bay field on Alaska’s northern Arctic coastal plain has now been produced, but Prudhoe Bay’s recoverable natural gas — equal to a third of all the known remaining recoverable gas in hundreds of fields in western Canada — remains frozen in place. So, too, do substantial gas and oil reserves in the Mackenzie River delta and Beaufort Sea, 600 kilometres east of Prudhoe Bay.

One year after the Prudhoe Bay discovery, TransCanada and two U.S. midwestern gas utilities began feasibility studies for a pipeline to move the Prudhoe Bay and Mackenzie delta gas to consumers across Canada and the United States.

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NEWS RELEASE: Ryan trophy winners show safety performance gains over the decades

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.

Safety performances in Canada’s and Ontario’s mining industries have made steady progress over the decades. The John T. Ryan Safety Trophies recognition program has been a contributing component to that ongoing improvement since 1941.

Winning a Ryan trophy is not happenstance. It is the result of clear messages being given from senior management, a dedication to safety throughout the entire workforce, training, communications, workers knowing they matter – that they matter a lot — and the evolution of a safety culture. There are numerous mining operations in Canada, which have found a winning formula. They are leading the way in safety and providing best practice models not just for mining but for all industries.

A look back through some past committee minutes of this 72 year old program provides some insight. For the record, the 2012 John T. Ryan national winner in the metal mine category was Xstrata Copper Kidd Operations in Timmins, now Kidd Operations (Glencore). It had a reportable injury rate 0.16 per 200,000 hours worked. This mine, which started operations through predecessor companies in 1965, is the deepest base metal mine in the world. In 2012, the operation experienced no lost time injuries and two modified work injuries during more than 2.5 million hours worked.

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Group fights for passenger trains – by PJ Wilson (North Bay Nugget – August 20, 2013)

http://www.nugget.ca/

Canada’s National Dream may have been derailed by politicians, but a grassroots organization is trying to get it back on track.

The Northern and Eastern Ontario Rail Network (NEORN) was launched at the Discovery North Bay Museum – the former CP Rail station – Monday in North Bay to not only unite rail supporters in the province, but to try to revive Ontario Northland’s Northlander passenger service.

“Rail service is in trouble in this country,” Peter Miasek, president of Transport Action Ontario, the umbrella organization, said to a small crowd of supporters.

In all the Group of Eight countries, Canada is the only nation that is not investing heavily in rail service, Miasek said. “Even in the United States, (President Barack) Obama is investing heavily in Amtrak” passenger train service, Miasek said.

The federal and provincial governments, he said, are trying to sink rail freight service through subsidies to the trucking industry, while “on the passenger rail side, the situation is even more dire.”

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Northern Promise: Home of the world’s richest gold mine braces for coming headwinds – by Peter Koven (National Post – August 20, 2013)

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

Northern Promise is a six-part series that explores the pace and progress of development in Canada’s remote communities. In this second instalment Peter Koven visits the home of the world’s richest gold mine

Fifty-four hundred feet below the surface, roughly underneath the local airport, a massive drill is pounding out a path to Red Lake’s latest set of riches.

Workers stand back and protect their ears as the driller carefully targets the sheer rock wall up ahead and begins to break it apart. It is slow and careful work; the horizontal drill makes about 15 to 23 feet of progress per day, sometimes less. But it is closing in on the destination, which will be reached later this year after more than three years of work.

The end result will be a five-kilometre drift connecting Goldcorp Inc.’s existing operations here with the Bruce Channel, a high-grade discovery that will be a flagship of the company’s Red Lake operations for decades to come. The ore from Bruce Channel (or Cochenour) will be hauled back to Goldcorp’s Campbell mill via an underground tram system, which is already running and is being expanded as fast as the drillers up ahead can open up the drift.

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Glencore expected to writedown billions – by Reuters/Star Staff (Sudbury Star – August 20, 2013)

http://www.thesudburystar.com/

Glencore Xstrata is expected to write down the value of assets inherited from Xstrata by as much as $7 billion when it reports first-half earnings on Tuesday — the first full set of results since the takeover that created the mining giant in May.

Glencore’s management, no strangers to Xstrata given the trader’s 34% stake in the miner, have been reviewing Xstrata’s assets as owners over the past three months and they had been expected to book a hit alongside maiden results.

Analysts and an industry source said the group writedown, mostly on the value of former Xstrata assets, would likely amount to $5 billion to $7 billion.

Nickel assets — including Xstrata’s $5 billion Koniambo operation in New Caledonia — are likely to take the brunt of the pain as nickel prices languish at less than a third of their 2007 highs and supply continues to exceed demand.

Glencore’s local operations, now officially known as the Sudbury Integrated Nickel Operations, include Fraser Mine and Nickel Rim South Mine, Strathcona Mill and the Sudbury smelter. Nickel and copper are its main products.

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