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Why the latest anti-Keystone pipeline ad is a low blow to Canada – by Claudia Cattaneo (National Post – August 9, 2013)

 

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

CALGARY – An anti-Keystone XL pipeline commercial funded by President Barack Obama supporter and hedge-fund billionaire Tom Steyer confirms what many Canadians have long suspected — American anti-oil activists have gone mad.

The commercial was intended to be aired Tuesday evening on WRC-TV, an affiliate of NBC in Washington, D.C., to coincide with the president’s appearance on the Tonight Show with Jay Leno.

The commercial is so offensive the station refused to air it. While intended as a parody, it insults TransCanada Corp. CEO Russ Girling, whose company is proposing Keystone XL; it’s a low blow to Canada; and it shows the anti-Keystone campaign is in desperate need of adult supervision.

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Feds supply $6M to get First Nations ready for Ring of Fire (CBC News Thunder Bay – August 8, 2013)

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

260 people to be trained in trades like mining, welding and environmental monitoring

The federal government has announced almost $6 million in funding to train people from Matawa First Nations in the mining sector. The announcement was made at Confederation College in Thunder Bay Thursday morning.

“There’s no better time than the present, we want to get going on this, we know that this is a legacy project,” said Kenora MP Greg Rickford, who is also minister of state for FedNor, with responsibility for the Ring of Fire. “We want to make sure that all our ducks are in a row.”

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. Matawa CEO David Paul Achneepineskum said building partnerships like this will help First Nations succeed. But Aroland Chief Sonny Gagnon thinks the process should be more grass-roots.

“I’m happy on one hand that we’re moving along, but there’s got to be a better method of how to move along,” he said. “And that means going to the communities and asking what each community wants.”

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Vale aims to stay competitive despite loss in profits (CBC News Sudbury – August 8, 2013)

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

Totten Mine in Sudbury still on track to open and create 200 jobs

For a detailed interview with Vale spokesperson Angie Robson, click here: http://www.cbc.ca/video/news/audioplayer.html?clipid=2400029133

Mining giant Vale is reporting its worst profit decline in a decade. In its second quarter report, the company said its profit was $2.78 billion less than in the same quarter last year — and that foreign currency fluctuations are to blame.

In Sudbury, Vale spokesperson Angie Robson said local operations need to continue to focus on reducing costs while minimizing the impact on staff. She noted the company is working to continue being competitive.

“One of the things that we have happening, as an example, is we’re opening Totten Mine by the end of the year,” Robson said. “It’s our first new mine in Sudbury for more than 40 years … we have to continue to look to the future and look for new sources of ore so that we continue to create jobs and so forth.”

She noted the new mine will create about 200 jobs.

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Junior Mining is Bust, But It’ll be Back – by Virginia Heffernan (Firmex Blog – August 8, 2013)

http://www.firmex.com/

There’s been a lot of handwringing about the state of the junior mining sector lately, including a recent story in the Canadian business press predicting the disappearance of hundreds of Canadian companies that could stall the supply of worldwide mineral projects for years.

But the negativity is excessive. Mineral exploration has always been a market of extremes, moving from boom to bust to boom quickly and forcefully. It’s not necessarily a bad thing. A bust like no other?

Last year, worldwide exploration budgets hit a new all-time high of $20.5 billion, according to Mineral Economics Group (MEG). Since juniors account for about half of the spending, that figure will drop precipitously this year as they struggle to raise financing for projects.

Juniors rely on robust equity markets to pay for exploration. But investors burned badly by some of the larger – supposedly more secure – producers are in no mood to speculate right now. But consider the last bust in 2008, and many others before it, and you’ll see that the junior market often recovers as quickly as it crashes.

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Vale Says China Proving Pessimists Wrong on Steel Output – by Juan Pablo Spinetto (Bloomberg News – August 8, 2013)

http://www.bloomberg.com/

Vale SA (VALE), the biggest iron-ore producer, forecast a 10 percent increase in steel output this year in China, the world’s largest steelmaker. China probably will produce 780 million metric tons of steel this year compared with 683 million tons two years ago, underpinning a favorable view on the world’s largest emerging market, Chief Executive Officer Murilo Ferreira said today.

“China has once more proved the pessimists wrong,” Ferreira said during a conference call to discuss quarterly earnings. “Our view related to China continues positive.”

The shares of Vale and major rivals BHP Billiton Plc and Rio Tinto Plc (RIO) rallied today after Chinese imports climbed to the highest in 14 months and an iron-ore index reached a three-month high. The Rio de Janeiro-based company’s shares are down 27 percent this year after a slowdown in commodities demand and rising costs crimped miners’ earnings.

After tumbling 15 percent in the second quarter, iron-ore prices entered a bull market on July 26 after China replenished inventories and boosted steel output. In a presentation on its website today, Vale said a sharp drop in steel inventories in recent months opens the door to greater consumption growth.

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Ontario: The ‘have not’ province – by Peter Andre Globensky (Wawatay News – August 8, 2013)

http://www.wawataynews.ca/

There is considerable evidence to indicate that the reckless and hell-bent-for-leather policy of developing the Alberta tar sands at all costs has been, in fact, quite costly. Not only to First Nations communities in northern Alberta who live “downstream” from the goo and the guck and the ravaged natural environment, but to the economy of the country – particularly to the economy of Ontario.

The rise in the value of the Canadian petro-dollar, fuelled by escalating oil prices, has made Canadian exports much more expensive for foreign buyers to purchase. The result: a too-rapid decline in Ontario’s manufacturing sector and an attendant decrease in commercial and industrial taxes have helped reduce Ontario to a “have not” province.

It is now a recipient of transfer payments from the federal government when once it was a contributor of those payments to other provinces. At one time not so long ago, Ontario had a well-earned reputation for playing a leadership role in the Canadian federation – being the mediator between the federal government and the other provinces who always seemed to have squabbling with each other and the feds as a favoured pastime. However, no longer can it claim that high ground.

What is even more disturbing, however, is how far Ontario has fallen behind other, more progressive Canadian jurisdictions in recognizing the need for and actively promoting a constructive dialogue around resource development and revenue sharing with First Nation communities. In that way as well, Ontario has become a “have not” province.

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BHP’s CEO Sees U.S. Shale Expansion as Mineral Demand Grows – by Elisabeth Behrmann (Bloomberg News – August 7, 2013)

http://www.bloomberg.com/

BHP Billiton Ltd. (BHP), the world’s biggest mining company, signaled it will expand in the shale oil and gas industry in the U.S., forecasting global commodity demand will jump 75 percent over the next 15 years.

“It’s my intention to make us hugely proficient, if not one of the leaders in the shale gas and oil business,” Andrew Mackenzie, chief executive officer of the Melbourne-based company, said today in an interview. “Which means if there are opportunities elsewhere we’ll be able to consider them with a lot of precision and interest.”

China, the biggest consumer of metals and energy, will continue to fuel demand for commodities as 250 million people move into cities, said Mackenzie, 56, who succeeded Marius Kloppers in May. BHP spent $20 billion in 2011 on shale assets in the U.S., joining rivals including Exxon Mobil Corp. and China Petrochemical Corp. in seeking to tap surging energy demand that’s driving an industrial revival.

BHP slipped 2.0 percent to A$34.90 at the close of trading in Sydney. It’s dropped 5.9 percent this year.

Premier Li Keqiang is driving reform of the Chinese economy in a bid to maintain growth while reining in financial risks and controlling local government debt.

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NEWS RELEASE: Ring Of Fire Aboriginal Training Alliance (RoFATA) Prepares Matawa First Nations Members for Employment in Mining Sector

THUNDER BAY, ON, Aug. 8, 2013 /CNW/ – The Ring of Fire Aboriginal Training Alliance (RoFATA) is pleased to announce that it is receiving over $5.9-million from the Government of Canada’s Skills and Partnership Fund to provide training for employment in the mining sector for the people of Matawa First Nations.

Nine specialized training and six pre-trade courses are being made available to Matawa First Nations members, with many delivered in their First Nation communities and others locally in Thunder Bay.

A Memorandum of Understanding was signed between Matawa First Nations, Kiikenomaga Kikenjigewen Employment and Training Services (KKETS), Noront Resources Ltd. and Confederation College of Applied Arts and Technology, creating The Ring of Fire Aboriginal Training Alliance (RoFATA) partnership. RoFATA’s key objective is to provide training-to-employment opportunities to support the Matawa First Nations people.

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COLUMN-China commodity surge more about stockpiling than consumption – by Clyde Russell (Reuters India – August 8, 2013)

http://in.reuters.com/

Clyde Russell is a Reuters market analyst. The views expressed are his own.

LAUNCESTON, Australia, Aug 8 (Reuters) – Will record imports of crude oil, iron ore and soybeans in July force a re-think of the consensus view that the China-led commodity boom is largely over, or is this just a one-month blip that can be dismissed?

Even the most bullish of analysts are likely to have been surprised by the strength in the July numbers, which stand in stark contrast to the last few months of gradually weakening economic indicators in the world’s largest commodity consumer.

Ultimately there are two basic explanations for the increase in commodity imports. Either demand has risen, or is expected to rise in the next few months, or stockpiles are being built, or a combination of the two.

Different dynamics exist for different commodities, so it’s worth looking at the breakdown. Crude oil imports rose to 26.11 million tonnes in July, a 17.8 percent leap from June and at 6.15 million barrels per day (bpd), the highest on record.

The surge in July was enough to turn the year-to-date number positive, with imports for the first seven months now 1.4 percent higher than the same period in 2012, where as at the end of June they were 1.4 percent weaker.

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40 of Canada’s finest miners: Little change among top performers – by Marilyn Scales (Canadian Mining Journal – August 8, 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.

Last year, 2012, almost all commodity prices softened, and that fact is reflected in the fortunes of Canada’s Top 40 mining companies. Gross revenues, the number on which we base our ranking, grew little if at all.

However, the most successful companies will weather the industry’s cyclical downturns. Note the 10 companies that lead our list. Nine of them remain among the top 10. The exception is Cameco that fell from 10th to 11th, trading places with Yamana Gold.

The other nine miners among this year’s top 10 were among the top 10 last year. With one exception they held the same positions as last year – Teck jumped up one to 3rd, pushing Suncor down to 4th.

The list is again headed by Agrium ($16.69 billion) that mines potash at Vanscoy, Sask., and phosphate at Kapuskasing, Ont. Mining is not the company’s only business; it is a retail supplier of agricultural products and services throughout the Americas and Australia. The world needs to eat, and its appetite for fertilizer appears to be strong.

Again in second place is Barrick Gold ($14.55 billion). Long the largest gold miner in the world in terms of market capitalization, Barrick has been under pressure from both the lackluster gold price and skyrocketing development costs.

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BHP Billiton CEO, Andrew MacKenzie Speech to the Asia Society on August 7, 2013

http://www.bhpbilliton.com/home/Pages/default.aspx

For a detailed interview of BHP Billiton CEO Andrew MacKenzie by Australia Broadcasting Corporation, click here: http://www.abc.net.au/7.30/content/2013/s3820498.htm

I am delighted that so many of our shareholders and friends from business, government, the media and elsewhere have joined us today. Welcome to you all.

I would also like to mention two individuals in the audience. First, one of BHP Billiton’s longest serving employees – Eric Gray. Eric is a maintenance supervisor at our Illawarra coal operations and is celebrating 45 years with the company. And second, Martin Ferguson, who needs no introduction. A special welcome to you both.

I am honoured to lead this tremendous, Australian company and pleased to be making my first Australian speech here in Melbourne; a city my wife, Liz, and I are delighted to now call home. We recently purchased a house in Richmond and I have adopted St Kilda as my AFL team. Richmond, anyway, has proved to be a terrific choice.

Melbourne is a city with a rich mining history, a history of which BHP Billiton is proud to be a part. Our global headquarters have been in Melbourne since 1885 and next month we will relocate to Collins Street, where our company first began.

Now speaking of our history, one of my fellow Scots, George McCulloch, was vital to BHP’s formation in the late 19th century as manager of the Mt Gipps station in New South Wales. George organised a group of pioneers to sink the first shaft at Broken Hill, which led to the development of BHP’s first and famous ‘Big Mine’.

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Potash Corp. Says Uralkali-Belarus Dispute Won’t Last – by Christopher Donville (Bloomberg News – August 8, 2013)

http://www.bloomberg.com/

Potash Corp. of Saskatchewan Inc., the largest North American producer of its namesake fertilizer, said it doesn’t expect a dispute between two producers in the former Soviet Union to last and that forecasts of a price slump are overdone.

Chief Executive Officer Bill Doyle said yesterday the duration of the disagreement between Russia’s OAO Uralkali and its Belarusian rival will be “shorter rather than longer.”

The comments were his first since Uralkali last week quit Belarusian Potash Co., a marketing venture with Belaruskali. Shares of potash producers around the world plunged after the Russian producer said it will start selling the crop nutrient freely in the market for the first time in eight years.

“Logic tends to prevail,” Doyle said in a interview broadcast live on the company’s website. “I don’t find too many people who self-destruct intentionally.”

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NEWS RELEASE: Ontario Mining sector safety statistics indicate improved performance

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.

While statistics can’t always tell the whole story, recent numbers indicate Ontario’s mining sector is making further progress on the safety front. For the first three months of 2013, the provincial mining sector had a lost time injury frequency of 0.2 per 200,000 hours worked. This compares with a rate of 0.4 for the first three months of 2012 – a 50% improvement.

This new level of safety performance by the sector was achieved by more than 18,300 men and women working more than 9.3 million hours at mine sites across the province during the quarter. For the same period in 2013, a total medical aid frequency of 4.4 per 200,000 hours worked was achieved compared with a rate of 4.8 for the first three months of 2012 – an 8.3% improvement.

For all of 2012, mining’s lost time injury rate was 0.5, a gain from 0.6 per 200,000 hours worked in 2011. The industry’s previous best lost time injury rate over a quarterly, or yearly, period was 0.4. The industry’s total medical injury rate for all of 2012 was 5.5, which was up slightly from 5.3 in 2011. In 2012, approximately 18,700 employees at mine sites in Ontario worked a total of more than 38.3 million hours.

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COLUMN-U.S. cracks apart London’s commodity market omerta – by John Kemp (Reuters U.S. – August 8, 2013)

http://www.reuters.com/

John Kemp is a Reuters market analyst. The views expressed are his own.

Aug 8 (Reuters) – “See no evil, hear no evil, speak no evil” might well have been the motto for Britain’s commodity market regulators in recent years.

In too many instances, light-touch self-regulation by the exchanges, overseen by the Financial Services Authority (FSA), now reincarnated as the Financial Conduct Authority (FCA), has degenerated into ineffective or no regulation.

But the cosy relationship among brokers, exchanges and official regulators in London is being blown apart by more aggressive oversight from the United States.

On July 23, the Senate Banking Committee put a spotlight on the physical trading operations of the major commodity-dealing banks with a hearing on whether they should be allowed to control power plants, warehouses and oil refineries. Prodded by the committee and U.S. banking regulators, JPMorgan has indicated it will reduce its presence in physical trading.

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Potash Corp chief plays down price plunge – by Peter Koven (National Post – August 8, 2013)

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

As Bill Doyle sees it, last week’s shocking turn of events in the potash industry is nothing to worry about. “I would just urge people to take a deep breath, relax, and everything’s going to be just fine,” the chief executive of Potash Corp. of Saskatchewan Inc. said in a unique question-and-answer webcast on Wednesday.

Mr. Doyle is eager to put shareholders’ minds at ease following the stunning news that Russian producer OAO Uralkali has broken up a cartel-like trading company and plans to max out its potash production to seize market share. It made the move after its partner Belaruskali sold product outside their arrangement.

Investors assumed that the days in which potash producers withheld production to maintain high prices are now coming to an end. But Mr. Doyle disagrees completely.

He said that there have been numerous spats like this one in the past between the Russians and Belarusians, and all of them were eventually resolved.

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