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Anti-mining protests biggest hurdle for Peru’s mining growth – S&P – by Dorothy Kosich (Mineweb.com – August 29, 2013)

http://www.mineweb.com/

Peru’s mining sector may be booming, but the country need political stability to support long-term mining growth, Standard & Poor’s advises.

RENO (MINEWEB) – Of all the challenges facing Peru’s mining sector, Standard & Poor’s considers anti-mining protests the main constraint on its expansion “because if protests become more widespread, other mining projects could be delayed or scrapped entirely.”

Nevertheless, S&P Credit Analysts Diego Campo, Francisco Serra and Richard A. Francis feel “Peru’s mining sector is poised for significant growth, thanks to its large and high-quality metals reserves, reasonable tax regime, regulations that promote private investment, attractive power costs, and a long track record of mining activity. Plus, the country has fostered the development of ancillary-services suppliers and qualified manpower.”

“We expect investment in the energy and mining sectors will continue at a steady, rapid pace through the 2016 national elections, supporting future economic growth,” the analysts forecast in note published Wednesday. “Moreover, fiscal revenues from the mining sector, along with implementation of the new fiscal rule, should help Peru’s fiscal accounts and continue to reduce the government’s debt burden.”

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Crossworks inks deal with Chinese firm – by Star Staff (Sudbury Star – August 29, 2013)

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

Craftspeople at Sudbury’s Crossworks Manufacturing Ltd. plant will soon be cutting and polishing diamonds for the world’s largest jewelry company, Chow Tai Fook Jewellery Group Ltd.

Crossworks president Uri Ariel has just signed a long-term supply and licensing agreement with the Chinese firm to provide Crossworks’ patented hearts and arrows ideal cut square diamond to the company.

Under the terms of the agreement, Chow Tai Fook will have exclusive distribution rights to sell the uniquely cut diamonds through its extensive retail network in Greater China.
Crossworks Manufacturing Ltd., a member of the HRA Group of Companies, is a Canadian company with five polishing facilities in Canada, Vietnam and Namibia. One of the Canadian plants is located in downtown Sudbury, where about 35 cutters process 10% of the diamonds mined by De Beers in the James Bay Lowlands.

Crossworks designed the square cut hearts and arrows diamond to enhance the brilliance, fire and scintillation in a square cut diamond, company spokesman Dylan Dix said in a release.

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Vale workers rescued from rooftop: Final update – by Carol Mulligan (Sudbury Star – August 29, 2013)

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

Two employees working on a roof had to be rescued and were taken to hospital for examination, but there were no injuries after a $2-million fire broke out at Vale’s Clarabelle Mill on Wednesday at 9:15 a.m.

Thirty firefighters from five downtown stations responded in 10 vehicles and, in about 90 minutes, contained a fire that was belching black smoke into the area, said a fire official.

Leo Frappier, senior public safety officer with Greater Sudbury Fire Services, said at 11 a.m. the fire had been downgraded from a Level 2 to a Level 1, and was contained to the building. A Level 2 fire is one in which there could have been “contaminants in the air, but there’s none,” said Frappier.

Vale spokeswoman Angie Robson said no one was injured and there was no threat to public safety. By mid-afternoon, Robson said the fire seemed to have been confined to one of three crushing lines at the mill, so the impact on production was expected to be minimal.

The cause of the fire was unknown, she said, and there was no estimate of damage.

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How to price a barrel of water in the oil sands – by Claudia Cattaneo (National Post – August 29, 2013)

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

We all know the value of a barrel of oil, but how do you put a price on a barrel of water? It’s a growing and challenging debate in the oil sands, where oil, which sells at a readily available market price, and water, which is priceless but restricted, are so intertwined one cannot be produced without somehow shortchanging the other.

Indeed, oil sands projects are also giant water handling factories, with oil sands mines using on average of about 3.1 barrels of fresh water for every barrel of oil they produce, and in-situ operations using about 0.4 barrels of fresh water for every oil barrel they produce.

Much like the larger debate over the oil sands’ greenhouse emissions, views on the right oil and water mix are polarized: for some, any water used to produce oil comes at an unacceptable cost to an ecosystem that needs it; for others, water use is minor relative to its abundance and justified by the value it creates through oil.

Environmental organizations like the Pembina Institute, for one, are indignant over withdrawals of any amounts of water from rivers like the Athabasca that run through Alberta’s oil sands region, claim development contaminates water bodies nearby and that monitoring is inadequate.

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Industrial policy good place to start generating Ontario’s economic growth -by Martin Regg Cohn (Toronto Star – August 29, 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.

The recovery from the 2008 economic slump has been feeble. Against that backdrop, all three parties are flailing. Time to get serious about jobs.

The party that best persuades voters it is serious about Ontario’s economic future will be best positioned to win the next campaign.

The recovery from the 2008 economic slump has been feeble. The political leadership has been equally weak. All these years later, all three parties are flailing.

The Tories have produced a dozen discussion papers that retreat into union-bashing and privatization to drive economic renewal. The New Democrats are obsessed with hiking corporate taxes as a panacea for prosperity.

And after a decade in power, the governing Liberals are adrift. Seven months after taking over, Premier Kathleen Wynne has yet to make her economic mark or even hint at a new vision for growth.

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The Ring of Fire: Ontario’s Mega Mining Project to be the “Next Fort McMurray” – by Derek Leahy ( DeSmog Canada – August 28, 2013)

http://www.desmog.ca/

Ontario’s largest mining find in decades – a 5000 square km region known as the Ring of Fire – won’t be developed by Cleveland-based Cliffs Natural Resources without facing significant obstacles.

“We question whether the Ring of Fire can be mined without being a massive financial burden on Ontario taxpayers, or without trashing the province’s most pristine watershed,” says Ramsey Hart, Canada program coordinator for MiningWatch Canada, an Ottawa-based organization.

“It is also unclear if this development will proceed in the best interests of the First Nations living in the Ring of Fire,” Hart told DeSmog Canada.

A briefing note to the Ministry of Aboriginal Affairs from earlier this year warns that the Anishinaabe/Omushkego* (First Nations of the Ring of Fire) “are some of the most socioeconomically disadvantaged communities in all of Canada” and this could prevent the Anishinaabe/Omushkego from benefitting from the Ring of Fire mega mining project.

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Prospecting under cover: Frontiers of exploration research – by Kip Keen (Mineweb.com – August 28, 2013)

http://www.mineweb.com/

In Part II of Mineweb’s series on exploration trends, Kip Keen turns to the Deep Exploration Technologies Cooperative Research Centre in Australia and talks paradigm shifts.

HALIFAX, NS (MINEWEB) – So the success rate falls. Now exploration money buys fewer discoveries. This was one of the key insights Richard Schodde, of Minex Consulting, discussed in Part I of this interview series on exploration trends. The rate of discovery used to correlate well with increases in spending, in part because the deposits were easier to find. More boots on the ground. More rocks chipped. More ore deposits discovered.

But now the boots are more expensive to pay for and many of the surface rocks, especially in developed countries, have already been kicked forcing exploration to go deeper and become more extensive. Meantime, labour costs, until recently that is, were sky-rocketing amid intense competition to secure services.

To some degree, as the market cools, a process unfolding for a couple years now, the cost of exploration gets cheaper as, for example, geologists lower their rate of pay and drilling contractors cut down margins to get contracts. But it can only go so far. That much is clear now as discoveries, especially in developed countries, come at depth and require increasing geological expertise to find and more drilling.

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Commentary: Guatemalans’ lawsuit against Hudbay in Canada – by Christina Hall and Kevin MacNeill(Northern Miner – August 27, 2013)

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

On July 22, 2013, the Ontario Superior Court of Justice ruled in Choc v. Hudbay Minerals Inc. that three separate lawsuits brought by indigenous Guatemalans against Canadian mining company Hudbay Minerals and other defendants, can go forward in Canada.

The plaintiffs’ lawsuits allege that between 2007 and 2009, security personnel working for Hudbay’s subsidiaries — who were allegedly under the control and supervision of Hudbay, the parent company — committed various human rights abuses. These include the alleged gang rape of 11 Guatemalan women, the beating and shooting death of a respected Guatemalan indigenous leader who had been an outspoken critic of mining practices, and the shooting of another Guatemalan man in an unprovoked attack which left the man paralyzed.

All of these abuses are alleged to have been committed by security personnel at Hudbay’s Fenix mining project, a proposed open-pit nickel mining operation located on Lake Izabal in northeastern Guatemala. According to the pleadings in the lawsuit, Hudbay and the other the defendants asserted that they had a valid legal right to this land, while indigenous communities claimed that the Mayan Q’eqchi’ were the rightful owners of the lands, which they considered to be their ancestral homeland.

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NEWS RELEASE: Cliffs Natural Resources Inc. Reports on Sustainability Progress

August 27, 2013

For the entire sustainability report, click here: http://www.cliffsnaturalresources.com/EN/Sustainability/Sustainability2012/Documents/Cliffs%202012%20Sustainability%20Report%20-%20Full%20Version.pdf

CLEVELAND, Aug. 27, 2013 /PRNewswire/ — Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) announced today the release of its 2012 sustainability report, entitled “Embracing our Past, Securing our Future.” The sustainability report is a comprehensive look at Cliffs’ global operations and outlines the Company’s progress in key areas of its sustainability strategy.

(Logo: http://photos.prnewswire.com/prnh/20101104/CLIFFSLOGO )

“This year has been marked by continual change and volatility in the commodities market, which has presented our Company with a number of opportunities and challenges. However, our expectations of personal accountability and business ethics are unwavering,” said David Cartella, vice-president — global environmental affairs, sustainability and counsel. “Going forward, we will continue to build upon a strong foundation of sustainability with the development of a three-year, enterprise-wide strategy. Aligned with business priorities and integrated with operational and functional groups, this strategy aims to maximize our shared value by reinforcing our social license to operate.”

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UPDATE 1-Indonesia may loosen export ban on metal ores – by Rieka Rahadiana and Fergus Jensen (Reuters India – August 28, 2013)

http://in.reuters.com/

Aug 28 (Reuters) – Indonesia will push for a relaxation of its controversial 2014 ban on metal ore exports amid a scramble to support the rupiah and restore confidence in Southeast Asia’s largest economy.

Indonesia is the world’s top exporter of nickel ore, coal and refined tin and its mining industry contributes around 12 percent of gross domestic product (GDP).

However, the ban on unprocessed mineral exports from January 2014 has hit the industry and uncertainties over the country’s mining rules have dented its credibility with foreign investors.

If approved, the reversal of mining policy will upset metal industries banking on a tightening of ore shipments that have increased significantly in the lead up to the ban. However, some in parliament doubted the government would manage to overturn the rule.

Under the proposed revision, mining companies with smelters under construction would be allowed to continue to export unprocessed minerals, but would be charged a progressive duty on the shipments depending on how close to completion their projects are, Industry Minister Muhammad Sulaeman Hidayat told reporters.

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Canadian mining executive freed by Colombian rebels – by Nadja Drost (Globe and Mail -August 28, 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.

SEGOVIA, COLOMBIA — After 221 days of captivity at the hands of Colombian rebels, Canadian mining executive Gernot Wober is free.

He was handed over Tuesday in an isolated clearing in northern Colombia by rebels of the National Liberation Army (ELN) to a Red Cross delegation and whisked away by helicopter and then plane to Bogota. “He looks good. He’s suffered a lot, but he’s very excited about his liberty,” said Archbishop Dario de Jesus Monsalve, a member of the delegation.

Mr. Wober, vice-president of exploration for Canadian junior mining company Braeval Mining Corporation, was a bargaining chip in a long-standing battle over mining rights between Colombia’s leftist guerillas and its government. Now, his release could have implications for future peace in a country racked by 50 years of violent armed conflict, by opening the door to allow the ELN, Colombia’s second-largest guerrilla group, to the negotiating table.

The Canadian went from being a pawn in the conflict over resources to a possible lynchpin in negotiating peace with one of Latin America’s oldest rebel groups.

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New energy infrastructure ‘strategic imperative’ for Canada – by Carrie Tait (Globe and Mail -August 28, 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.

CALGARY — Oil and gas companies need to diversify their export markets because new discoveries south of the border will temper demand for Canadian energy, say the country’s natural resources ministers.

Joe Oliver, Canada’s minister of natural resources, met with the majority of Canada’s energy and mining ministers Tuesday in Yellowknife at their annual meeting. The group emphasized the importance of opening export markets in the Asia-Pacific region, which requires new infrastructure.

Energy proponents have long argued new pipelines must reach tidewater so Canada can charge more for its products because it would bring access to more global customers. Now the industry and politicians are increasingly calculating the impact of surging oil output in the United States, as production soars in places like North Dakota and Texas.

The shift in focus shows how Canada’s energy ministers are trying to strengthen the argument for export pipelines. Mr. Oliver noted Canadian energy exports to the United States will continue to grow, but at a slower pace.

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Sell-off [Ontario Northland] “not only option” – by Wayne Snider (Timmins Daily Press – August 28, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – As Minister of Northern Development and Mines, Michael Gravelle is arguably the most important link to Queen’s Park for Northerners.

Gravelle took time out of his schedule to sit down with editorial staff at The Daily Press for an exclusive interview on Tuesday.

The minister discussed at length provincial issues specific to the region. He admitted one of the biggest bones of contention in the Northeast is the divestiture of the Ontario Northland Transportation Commission.

“In the 2012 budget the decision was made,” Gravelle said. “There certainly was some very clear fiscal challenges and there was a decision made at that time, obviously in terms of the budget that indeed the divestment of the ONTC was the direction the government needed to go in. It was certainly a very tough decision at the time and one that (drew) a very strong reaction from Northern Ontario.”

Since that time, there has been a change in the premiership, with Kathleen Wynne replacing Dalton McGuinty. The provincial government has somewhat softened its response on the ONTC sell-off, but has not yet made any concrete promises.

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Lobby effort vital to growth in North – by Wayne Snider (Timmins Daily Press – August 28, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – For several years, there has been an ongoing effort by municipal leaders to lobby Queen’s Park on Northern Ontario issues.

The charge has been led in part by Timmins Mayor Tom Laughren and Kapuskasing Mayor Al Spacek. Through organizations like the Federation of Northern Ontario Municipalities (FONOM), Northeastern Ontario Municipal Association (NEOMA) and the Northern Ontario Large Urban Mayors (NOLUM), they have met with provincial cabinet ministers on numerous occasions.

They have attempted to get Northern leaders to speak with one voice on key issues such as the divestiture of the Ontario Northland Transportation Commission, regional infrastructure needs, and potential closure of local provincial parks.

But how effective is this process? To answer that question, we went straight to the horse’s mouth. Northern Development and Mines Minister Michael Gravelle has discussed these issues and many others, several times with the Northern lobby groups.

During an editorial board session at The Daily Press on Tuesday, he said such efforts allow the provincial government to clearly hear Northern concerns. “I think it is a very effective way for us to communicate,” Gravelle said. “I’ve built up some extraordinary positive relationships with Northern mayors in particular.”

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As Syria fears send oil higher, Canada looks like bastion of safety – by Yadullah Hussain (National Post – August 28, 2013)

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

As war clouds loom over Syria, oil soared to a six-month high and oil traders fretted over more trouble in the Middle East.

Western countries appear to be preparing a military response to Bashar Al Assad’s chemical attack against the opposition, but the defiant Syrian government has chillingly responded that Damascus’ defense will ‘surprise’ the world — sending most financial markets tumbling and bolstering safe havens like gold.

Add Russia, Iran, Israel and Lebanon’s Hezbollah into the mix, and fears of a wider Middle East conflict engulfing more stable Gulf oil exporters have escalated.

Brent ended the day 3% higher, to $114.08 after rising to $114.15 — a six-month high. West Texas Intermediate also hit a five-week high to $109.32, retracing its July 19 price, and its highest level since March 2012.

“Assuming that the Western powers want to protect their dwindling credibility and influence in the region, military reprisals against the Syrian regime appear likely,” said Pierre Fournier, geopolitical analyst at National Bank Financial Inc. in a note to clients, adding that the strikes may have a limited mandate to punish Syria rather than topple the Assad regime.

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