Republic of Mining

Canadian minister takes fight for oil sands crude to Europe – by David Ljunggren (Reuters Canada – May 5, 2013)

May 6, 2013

http://ca.reuters.com/

OTTAWA (Reuters) – A European Union plan to label crude from the Alberta oil sands as dirty is unfair and could damage Canada’s bid to find new export markets, the Canadian resources minister said at the start of a mission to lobby against the idea.

As part of a plan to cut greenhouse gases from transport fuel, the EU’s executive commission has developed a Fuel Quality Directive that would single out oil from Alberta’s tar sands as more polluting than conventional crude.

Canada, whose oil sands are the world’s third-largest proven reserves of crude, strongly opposes the move.

Natural Resources Minister Joe Oliver, speaking at the start of a week-long trip to Paris, Brussels and London, said the directive should be changed to ensure it does not discriminate against crude from the oil sands.

“We think that’s critical as an alternative to what we view as a flawed and ineffective approach that’s proposed by the commission,” he told Reuters in an interview from Paris.

Extracting crude from the clay-like Alberta oil sands requires more energy than conventional oil production. Environmentalists say that increases greenhouse gas emissions, making the oil sands a top target for the green movement.

Ex-Barrick CEO Said to Start Firm Seeking Mining Assets – by Liezel Hill & Matthew Campbell (Bloomberg News – May 4, 2013)

May 6, 2013

http://www.bloomberg.com/

Aaron Regent, who was fired last year as chief executive officer of Barrick Gold Corp. (ABX), the biggest producer of the metal, started a company to invest in mining assets, according to two people familiar with the matter.

Magris Resources Inc. is looking to acquire assets mainly in the Americas with backing from institutional and private- equity investors, said one of the people, who asked not to be named because the information isn’t yet public. Magris has employees in Toronto, the people said.

The new company was one of the bidders for BHP Billiton Ltd. (BHP)’s Pinto Valley copper mine in Arizona, according to a third person familiar with that sale process. Capstone Mining Corp. (CS) said April 28 it agreed to buy the mine and a railroad in the U.S. for $650 million.

Regent, 47, joins other prominent figures in the mining industry who are setting up, or plan to establish, companies to buy assets. They’re doing so at the same time as some of the world’s largest miners are selling off unwanted operations.

Former Xstrata Plc Chief Executive Officer Mick Davis and Chief Financial Officer Trevor Reid are weighing plans to set up a privately backed mining fund, people familiar with the matter said last month. Bankers led by Lloyd Pengilly, previously at JPMorgan Chase & Co., are setting up a London-based fund that plans to invest mainly in African mining.

How many mines can a government open? None – by Brian MacLeod (Sudbury Star – May 4, 2013)

May 4, 2013

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

Brian MacLead is the managing editor of the Sudbury Star.

It is a bit rich for politicians to announce the potential opening of new mines, but they’ve taken it on as a hobby. During the 2011 election campaign, Sudbury Liberal MPP Rick Bartolucci announced his government could “facilitate the process” so that eight new mines can open in the province over 10 years.

And this week, Sudbury Progressive Conservative candidate Paula Peroni topped that with an announcement that 10 new mines could open over the next five years by removing red tape and killing the Far North Act.

No word whether the NDP can beat that, but it doesn’t matter. Governments don’t make mines happen, private companies do.

What governments can do — as Bartolucci said –is “facilitate” a process, but isn’t that the government’s job? (Unless you’re an NDP government in B.C., perhaps.)

As a former mines minister, Bartolucci would, of course, have had insight into which mining companies were at certain stages in their exploration and permitting and development processes, but a lot of things have to go right in the world before these properties become a mine.

Xstrata on track to open two zinc mines in Sudbury area – by Sebastien Perth (Sudbury Star – May 4, 2013)

May 4, 2013

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

Xstrata Zinc is on track to reopen two mines in the Sudbury region by 2016 that would employ more than 250 people at its peak.

The Errington-Vermillion mines, which have been closed for decades, are proving to be attractive again with a number of large zinc mines closing around the world. Brad Ryder, of corporate affairs for Xstrata, said there is still work to be done, but if everything goes as it should, construction should start by 2014.

“It’s a $350 million capital project, with 250 direct jobs and more jobs during construction. The mine life, right now we’re looking at between seven and ten year and what we would do is mine the sites sequentially. We’d mine the Errington deposit first and then the Vermillion deposit.”

The Errington mine is the bigger of the two sites, with a six million tonne deposit there, and a three million tonne deposit at the Vermillion site.

“Errington is roughly 5.8 million tonnes ore body with a 4% zinc, 1.4% copper, 1% lead, 50 grams per tonne of silver and 0.7 grams of gold per tonne. We would be looking at a yearly concentrate of around 74,000 tonnes of zinc, 40,000 tonnes of copper, 12,000 tonnes of lead.” Ryder said.

Darfur gold mine collapse kills 100, traps rescuers (Japan Times – May 4, 2013)

May 4, 2013

http://www.japantimes.co.jp/

KHARTOUM – Around 100 miners are estimated to have died inside a collapsed gold mine in Sudan’s Darfur region, and nine of the rescuers trying to free them have become trapped as well, a miner said Friday.

“Nine of the rescue team disappeared when the land collapsed around them” on Thursday said the miner, who had visited the scene.

The unlicensed desert gold mine in the Jebel Amir district, more than 200 km northwest of El-Fasher, the capital of North Darfur state, began to cave in Monday.

The stench of death is now seeping out of the baked earth, the miner said. “Yesterday (Thursday) eight bodies have been found and still they are looking for the others,” he said. “According to a count by people working in the mine, the number of people inside is more than 100.”

On Thursday, the Jebel Amir district chief, Haroun al-Hassan, said “the number of people who died is more than 60,” but added it was unclear whether anyone might still be alive.

Ontario’s finances in a mess thanks to Liberals’ make-believe budgets – by Christina Blizzard (Toronto Sun – May 3, 2013)

May 4, 2013

http://www.torontosun.com/home

“Let’s point the finger directly at the two real culprits — former premier Dalton McGuinty
and former finance minister Dwight Duncan…. The damage they did to the economy of this
once-great province will live in infamy. Your grandchildren and your grandchildren’s
grandchildren will still be paying for their massive incompetence.” (Christina Blizzard)

TORONTO – Cost of cancelling two gas-fired power plants? $585 million. Cost of sucking up to the NDP? Billions. Price of keeping this arrogant, incompetent, deceitful, wasteful Liberal government in power? Endless — and pointless.

Trouble is MasterCard expects you to pay your bills. Being a Liberal means never saying you’re sorry — and never paying your debts.

These Liberals just keep racking up more debt and driving this province into an abyss that will make Greece look like a well-managed paradise.

Make no mistake. Thursday’s budget wasn’t about fiscal responsibility or a prosperous Ontario. It was about keeping a shamelessly inept government in power.

Finance Minister Charles Sousa’s first budget was a total capitulation to outrageous NDP demands to meddle dangerously in the auto insurance industry — by forcing private companies to reduce premiums 15%. Liberals also pledged to hike welfare rates and to throw more money at home care.

Northern Ontario mayors frustrated with Growth Plan (Sault Star – May 3, 2013)

May 4, 2013

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

The mayors of Northern Ontario’s largest cities say they are frustrated by the slow pace of the province’s regional growth plan and intend to come up with their own strategy paper.

“We want to quit talking about it and we want to look at the strengths of our respective areas and get plans in place that develop us,” said Sault Ste. Marie Mayor Debbie Amaroso on Thursday.

Mayors from Sault Ste. Marie, Sudbury, North Bay, Thunder Bay and Timmins met in the Sault over two days this week to discuss the province’s progress in rolling out the Northern Growth Plan it launched in 2011.

Amaroso said the Growth Plan offers a good foundation but implementation has been “frustratingly slow” and the mayors have agreed to come up with a strategy paper to be presented to provincial ministers in August at this year’s Association of Municipalities Ontario meeting in Ottawa.

“As municipalities, we are prepared to do the required work and take the lead on this,” she said. North Bay Mayor Al McDonald said the five cities know what needs to be done to help development in Northern Ontario, and are bringing forward a united front from the region the province has so far been unable to do.

Glencore woos investors with promise of aggressive cuts – by Clara Ferreira-Marques (Reuters U.K. – May 3, 2013)

May 3, 2013

http://in.reuters.com/

(Reuters) LONDON – Glencore Xstrata (GLEN.L) told investors on Friday it would return excess cash, slash costs and might sell unwanted assets, raising expectations it would easily exceed planned synergies of $500 million from the deal that created the new group.

Unveiling a management team packed with veteran Glencore executives, the group promised to “cut bureaucracy and duplication”, vowing it would reduce administrative staff, cut divisional offices and underperforming projects to ensure success even at a time of cooling commodity prices.

Mining mega-deals have had a mixed record of success at best over the past decade, but a day after Glencore sealed the acquisition of Xstrata, the biggest ever takeover in the sector, its shares soared 6 percent, helped by a jump in the copper price. At current prices the group is worth $73 billion.

“If we can cut costs enough, get rid of these corporate head offices, we can cut a lot of fat out of the system. These synergies and overhead reductions – that figure can ensure this merger is a success,” CEO Ivan Glasenberg said in an interview.

“The target of $500 million is only the synergies on the trading operations. When we came up with that figure we had no idea what the overheads were in Xstrata … and it wasn’t a takeover at that time.”

Cobalt firms on DRC ore uncertainty, tight supply – by Harpreet Bhal (Reuters U.S. – May 3, 2013)

May 3, 2013

http://www.reuters.com/

LONDON, May 3 (Reuters) – Uncertainty about the availability of cobalt concentrates from the Democratic Republic of Congo (DRC), the world’s largest ore producer, is pushing up prices for the metal at a time the market is already tight due to low supplies, traders said.

The price of high grade cobalt has risen steadily since the beginning of the year after hitting a 9-year low of $10 a pound in November and now stands at around $13.50/lb, up 30 percent from the lows and higher than $12/lb in March. .

Traders said the market was already tight, as producers were running low on stocks, when it emerged that the DRC planned to ban the export of raw materials of the metal used in batteries and in alloys for jet engines and gas turbines.

The African country in mid April banned exports of copper and cobalt concentrates to encourage miners to process and refine the red metal within its borders, according to an order from the Mines Ministry.

The order, seen by Reuters and dated April 5, provides companies 90 days to clear stocks before the ban is enforced, but a day later the governor of Katanga, Congo’s sole copper and cobalt mining province, said he would not enforce a new ban.

“Prices are nudging up due to the uncertainty and we’re seeing a bit of buying ahead of the ban coming into force in a market that is already tight,” said one physical trader.

Ring of Fire missing [from Ontario budget speech]? – by Jeff Labine (tbnewswatch.com – May 3, 2013)

May 3, 2013

http://www.tbnewswatch.com/

The Ring of Fire was missing from this year’s provincial budget when it was presented to Queen’s Park, but Ontario’s mining minister says it hasn’t been forgotten.

The minority-led Liberal government revealed its $127-billion budget in Toronto Thursday. It’s the first budget to be tabled under the leadership of premier Kathleen Wynne. Having six main themes, Finance Minister Charles Sousa said the government sought to create a fair and prosperous Ontario.

But Sousa never mentioned the massive chromite deposit in the lower James Bay area, which is expected to bring further prosperity to the province’s North. MPP Michael Gravelle (Lib. Thunder Bay – Superior North) said the Ring of Fire is in the budget.

“We’re providing $5 million in enhanced funding to those First Nation communities closest to the Ring of Fire,” he said. “There’s no question that our commitment to the Ring of Fire is very strong. I’m pleased to see that there will be significant investments going towards related to the Ring of Fire. For many people, the future of the province’s economy will benefit with the North succeeding.”

Gravelle pointed out that the Ring of Fire has been repeatedly mentioned in previous budgets and in the throne speech. He called the budget fair and strong and said he was pleased to see the number of investments being made in the North.

Northern Ontario is the next frontier [Ontario PC Policy for the North] – by Tim Hudak

May 3, 2013

Northern Ontario is the next frontier.

It is the expanding edge of Ontario’s economy, an area whose rich forest and mineral resources can fuel a reviving North American economy.Its colleges and universities provide leading research and technology training, and its aboriginal peoples are the cornerstone of Ontario’s history and a critical part of its culture. It’s a place where people know how to
work hard and make their own way.

And yet, northern Ontario is falling far short of its potential today. The Ring of Fire is the greatest mining discovery of a lifetime, but the project has gone nowhere. Our once-burgeoning forest industry has shrunk and mills have closed.

The entrepreneurial spirit that built the north has been crushed under the weight of government regulations and environmental rules that seem designed to stop development and keep industry away.

Northern Ontario is a unique part of our province, with greater distances, smaller communities, a harsher climate and a rugged land. Its people have a strong streak of independence, self-reliance and personal responsibility.

These Ontarians share a different kind of connection with the land, but increasingly their fate is being thrust upon them by a government that wants to impose a fantasy view of northern life. Politicians, bureaucrats and special-interest groups from the south have tried to turn this dynamic, natural area into a museum without jobs, hope or a future for the people who live there.

Igniting Northern Ontario’s Economy – by Ontario PC Leader Tim Hudak (April 26, 2013)

May 3, 2013

This speech was given at the Northwestern Ontario Municipal Association (NOMA) on April 26, 2013 in Thunder Bay, Ontario.

CHECK AGAINST DELIVERY

I want to start with a simple statement: Northern Ontario can do better. I’ve done about 100 town halls now, including several in the North.

And as I travel the province, people tell me things are tough. They ask: “Is this really the best Ontario can do?” I say to them, we can do better.

Ontario has everything we need to succeed. We have a hard-working and skilled workforce. Dedicated and driven entrepreneurs. Vast and valuable resources and fertile farmland the envy of the world over. We border the great North American markets – natural trading partners with millions of consumers.

We have all it takes to make our province the best place to find a good job, raise a family, start a business and see it grow. But to get started on the path to a revitalized Northern Ontario, we need to be honest about the depths of the problems we face across the entire province.

More than half a million people woke up this morning with no job to go to.We’ve lost 300,000 good manufacturing jobs – while at the same time adding 300,000 government workers to the bloated public sector payroll in Ontario.

OMA NEWS RELEASE: Miners discover some gems in provincial budget

May 3, 2013

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.

Some encouraging words for mining could be unearthed from the provincial budget “A Prosperous & Fair Ontario.” The first budget of the province’s Finance Minister Charles Sousa was presented yesterday at Queen’s Park.

One of the significant actions outlined in the document holds the potential to give mining companies a better opportunity to control electricity costs. “The government is moving forward on the planned extension of the Northern Industrial Electricity Rate (NIER) program, which assists Northern Ontario’s largest industrial electricity consumers – and key economic contributors – to reduce energy costs for large users, supporting their employees, families and communities and maintaining global competitiveness.”

“The program was first announced in March 2010 for a three-year period and the province is extending the NIER program by investing an additional $360 million over three years – starting in 2013-2014,” said the budget document. “Its three-year extension will continue to support growth and development in northern resource sectors such as forestry and mining.”

The Finance Minister also announced infrastructure investments of $35 billion over the next three years. These investments, which are to be in transportation, health care and education, will support 100,000 jobs each year. This included “a new dedicated fund to help small, rural and Northern municipalities address roads, bridges and other critical infrastructure.”

Resource Rulers – required reading for mining execs – by Ellsworth Dickson (Resource World Magazine – May 2013)

May 3, 2013

http://www.resourceworld.com/

Ellsworth Dickson is the Editor-in-Chief of Resource World Magazine.

An excellent book recently written by Bill Gallagher entitled Resource Rulers details the rise of native empowerment in Canada and its effect on resource development. Gallagher was in a unique position to write the book as he is a lawyer, strategist, facilita- tor, energy regulator and treaty negotiator with 30 years experience in the area of gov- ernment, native and corporate relations. He attended and sometimes participated in a number of the events he describes.

The author did a meticulous job of assem- bling dozens of pertinent official documents from both the government and native side and provides a history of how Canadian First Nations peoples started with virtu- ally no power over what happened on their traditional lands, much of which was never ceded to Europeans, to the point where today they have won 179 court cases.

The reason so many cases ended up in court was not that First Nations peoples were overly litigious; it was the lack of or inadequate arrangements with the various provincial, territorial and federal govern- ments in dealing with their concerns over hydropower, petroleum, forestry, mineral projects as well as harvesting of maritime food resources.

The winning court cases were often based on treaties signed with England as far back as 1752 that stated the Crown had a fiduciary duty to permit First Nation peoples to hunt, fish and trade various resources on their traditional lands. In addition, First Nations should not suffer adverse effects of industrial development.

UPDATE 2-Goldcorp profit drops more sharply than expected – by Julie Gordon (Reuters U.S. – May 2, 2013)

May 3, 2013

http://www.reuters.com/

TORONTO, May 2 (Reuters) – Miner Goldcorp Inc said on Thursday that its first-quarter profit dropped by a steeper-than-expected 35 percent as lower metal prices and higher costs outweighed a boost in gold sales.

Shares of the world’s largest gold miner by market capitalization fell 2.1 percent to C$28.46 on the Toronto Stock Exchange.

Even though gold prices have plunged recently, the Vancouver-based miner said it was still committed to spending $2.8 billion this year as it brings three new mines into production through 2015.

With those new mines in Canada and Argentina, Goldcorp plans to boost its output by about 50 percent by 2017. That bucks a trend among many of the top gold miners of scrapping new projects to return cash to shareholders.

“Our shareholders can count on continued discipline as we advance our growth strategy and focus on execution and prudent cost management at our mines and projects,” Chief Executive Officer Chuck Jeannes said in a statement.

While long-term fundamentals should support a strong gold price, Jeannes said the company had put a “contingency plan” in place to defer spending should market conditions warrant.