Republic of Mining

North Slave Metis happy with Gahcho Kue agreement – by Lyndsay Herman (Northern News Services – July 17, 2013)

November 3, 2015July 18, 2013

http://www.nnsl.com/index.php

Funds vital to standing up for Metis aboriginal rights, says North Slave Metis Alliance president

SOMBA K’E/YELLOWKNIFE – NWT’s newest potential diamond project put its obligations to the North Slave Metis in black and white July 10. The Gahcho Kue Joint Venture, of which 51 per cent is owned by De Beers and 49 per cent is owned by Mountain Province Diamonds, and the North Slave Metis Alliance signed an impact benefit agreement, which outlines annual payments, training programs, scholarships, and business opportunities awarded to the NSMA through the project. The details of this agreement or other impact benefit agreement are not public.

North Slave Metis Alliance president Bill Enge characterized De Beers’ approach to the negotiations as one of goodwill and integrity, adding the process was relatively efficient due to the success of the agreement already in place between the alliance and De Beers in regards to Snap Lake.

“We’re very happy with (the Gahcho Kue) impact benefit agreement,” Enge said. “This (agreement) pretty much mirrors the one we have with De Beers with respect to their Snap Lake diamond mine and using that impact benefit agreement that we already have with De Beers as a template we were able to expedite the negotiations as we had something to work from.”

Donkin mine project receives environmental approval – (Cape Breton Post – July 17, 2013)

July 18, 2013

http://www.capebretonpost.com/

DONKIN — Although residents of Donkin and surrounding areas are happy another aspect of the Donkin mine project has moved forward — the transportation proposal continues to be controversial.

Morien Resources Corp. of Dartmouth announced in a press release that Peter Kent has signed off on the environmental assessment of the Donkin mine project proposed by Xstrata Coal Donkin Management Ltd. Kent’s tenure as the federal environment minister ended this week, but the Donkin project received his approval after his review of a Canadian Environmental Assessment Agency report.

Hugh Kennedy, chair of the Donkin Xstrata community liaison committee, said the approval is good news which will move the project ahead and allow those involved to acquire permits. He believes this approval will help with the sale of the mine. “A company ready to invest hundreds of millions of dollars … into this mine is not going to do that unless they know it has environmental approval.” The province must also approve the environment assessment, explained Kennedy.

“I can’t see any roadblocks as the provincial and federal authorities have been working closely and sharing in the process. “Hopefully now with this out of the way Xstrata will continue with that work, to get approval from the provincial government on how to repair the tunnels and put a plan forward, get it approved and seek a permit for the mine.”

Staying cool? Thank nuclear power – by Margaret Wente (Globe and Mail – July 18, 2013)

July 18, 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.

Hot out, isn’t it? At least for some of us, anyway. Southern Ontario is sweltering in temperatures that have soared into the 30s. Toronto has declared an extreme heat alert, and the air conditioners are running at full blast.

Thank god for air conditioning. Or rather, thank nuclear power – that’s what’s keeping us cool. Wednesday morning at 7 a.m., Ontario’s nuclear plants were generating more than half of the province’s electricity: 11,148 megawatts. Gas, hydro and coal accounted for another 8,608 MW. Wind power, at 97 MW, barely moved the dial. Those mighty turbines (for which we will be paying dearly for many years to come) contributed less than half of 1 per cent of the total power output.

Of course, wind energy is green. But so is nuclear. Unlike coal and natural gas, nuclear power creates zero greenhouse gas emissions.

“Nuclear energy is the most powerful weapon in the war on global warming,” Steve Aplin, an Ottawa-based consultant in energy and the environment, told me in a phone interview. He points out that if Ontario’s environmental lobby had succeeded in having nuclear power replaced by natural gas, the province’s carbon dioxide emissions would have soared.

Poll finds Keystone XL enjoys broad support in U.S. – by Paul Koring (Globe and Mail – July 18, 2013)

July 18, 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.

WASHINGTON — Despite renewed rallying efforts from environmentalists intended to stir broad opposition to the Keystone XL pipeline and extensive media coverage of several serious spills involving Alberta oil sands crude, Americans still solidly back the controversial project to funnel Canadian crude to Texas refineries, according to a new poll.

Even after president Barack Obama defined a new bar for approving Keystone XL — that it not add significantly to carbon emissions driving global warming — more than two-thirds of Americans (67 per cent) want the long-delayed project approved.

Public support is up slightly since January while opposition to TransCanada’s $5.3-billion pipeline from Alberta to sprawling refineries on the Gulf Coast remains stuck below one-quarter, at 24 per cent. While Republicans were more strongly in favour, the poll found a solid majority – 56 per cent – of Democrats also backed Keystone XL, suggesting that even among his base, Mr. Obama faces no serious threat if he gives the project a green light.

The president is expected to decide sometime later this year. Opponents had vowed to create a new groundswell of opposition over the summer, with funding from billionaire turned climate-change activist Tom Steyer.

Mega quarry land north of Toronto bought by burgeoning farm fund Bonnefield – by John Greenwood (National Post – July 18, 2013)

July 18, 2013

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

A controversial plan to build a massive quarry in rolling farmland north of Toronto appears officially dead in the water after a US$20-billion hedge fund in Boston agreed to sell the land on which the project was to be located.

Bonnefield Financial, a farmland investment company based in Ottawa, announced this week that it has acquired about 6,500 acres of lush Dufferin County potato fields in what it called one of the largest farmland transactions in Canadian history.

Financial details were not disclosed however Tom Eisenhauer, the president, acknowledged the price was “more than $50-million, a lot of money.” Speaking in a phone interview, Mr. Eisenhauer insisted Bonnefield is only interested in agriculture. “Our investors want exposure to farming,” he said. “They don’t want exposure to oil and gas, or quarries for that matter.”

Formed in 2010, Bonnefield calls itself Canada’s only national farmland investment management company. Typically that involves buying up farms and leasing them back to farmers. So far it’s raised about $150-million from accredited investors, acquiring about 35,000 acres in Alberta, Saskatchewan, Manitoba, Ontario and New Brunswick.

Massive Enbridge U.S. pipeline quietly on fast-track to approval as Keystone remains mired in debate – by Alan Scher Zagier (Associated Press/National Post – July 18, 2013)

July 18, 2013

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

MARSHALL, Mo. — A Canadian company’s plan to build an oil pipeline that will stretch for hundreds of kilometres through the U.S. Midwest, including through many sensitive waterways, is quietly on the fast-track to approval — just not the one you’re thinking of.

As the Keystone XL pipeline remains mired in the national debate over environmental safety and climate change, another company, Enbridge Inc. of Calgary is hoping to begin construction early next month on a 965-kilometre pipeline that would carry oil from Flanagan, Ill., 160 kilometres southwest of Chicago, to the company’s terminal in Cushing, Okla. From there the company could move it through existing pipeline to Gulf Coast refineries.

The company is seeking an expedited permit review by the U.S. Army Corps of Engineers for its Flanagan South pipeline, which would run parallel to another Enbridge route already in place. Unlike the Keystone project, which crosses an international border and requires State Department approval, the proposed pipeline has attracted little public attention — including among property owners living near the planned route.

Enbridge says it wants to be a good neighbour to the communities the pipeline would pass through, and it has been touting the hundreds of short-term construction jobs it would create.

Global nickel supplies to remain in large surplus in 2013-2014–Macquarie – by Dorothy Kosich (Mineweb.com – July 18, 2013)

July 18, 2013

http://www.mineweb.com/

“Nickel remains the worst performer among the base metals this year,” say Macquarie Research commodities analysts.

RENO (MINEWEB) – The nickel market has been in large surplus this year and without significant production cuts will remain in alarge surplus this year, Macquarie Commodities Research advised Wednesday.

“The market is looking to China for further cuts in nickel pig iron production but this is not enough to rebalance the market and cuts outside China may well be a catalyst for a short-covering rally,” said Macquarie.

In their analysis, Macquarie observed, “Nickel remains the worst performer among the base metals this year. A large surplus between supply and demand has opened up and prices have collapsed.

“At current prices more than 40% of the industry is losing cash. Many nickel sellers are struggling to achieve the LME price,” said Macquarie commodities analysts. “In China, nickel pig iron has been selling at large discounts to LME prices this year (up to $2,500/t at one stage although this has been narrowed to under $1,000/t in recent weeks as NPI producers have cut production).” The analysts noted Ferronickel producers outside China have been forced to discount by $500-$700/t off LME.

[Ring of Fire] Jurisdictional juggling – Thunder Bay Chronicle-Journal Editorial (July 18, 2013)

July 18, 2013

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

SOMETHING said in the wake of Monday’s federal cabinet shuffle raises concern about jurisdictional squabbling in advance of what is perhaps Northern Ontario’s greatest opportunity.

Greg Rickford, newly installed as minister of state for FedNor, the government’s Northern Ontario development agency, spoke convincingly about what lies ahead for the region economically. He said Ottawa will do what it can to help create the opportunities that will mean jobs.

In particular, he was effusive about the Ring of Fire mineral belt that holds such immense promise. But in the same breath as he pledged federal support Rickford said the province must play its role.

For his part, Ontario mines minister Michael Gravelle qualified his warm welcome for Rickford’s assignment by saying, “There is a very significant role the federal government can and must play with this project.”

That both men, who must work together to ensure this economic bonanza remains on track, felt obliged to place the other on notice in this way suggests that both levels of government are expecting more of the other than has so far been apparent.

Gold price headed north of $2 000/oz, even $5 000/oz – gold bull McEwen – by Henry Lazenby (MiningWeekly.com – July 17, 2013)

July 18, 2013

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

TORONTO (miningweekly.com) – NYSE- and TSX-listed McEwen Mining chief owner Rob McEwen has plenty of faith that the gold price will, within the next two years, head north of $2 000/oz and even cross the $5 000/oz mark in the not too distant future.

In an interview with Mining Weekly Online, McEwen said that while there was a lot of sentiment out there that the gold price would go lower, he believed the price of the yellow metal would go much higher.

McEwen pointed to historical precedents where governments debased their currencies through monetary expansion in excess of their sustainable debt loads, which caused the currency to devalue relative to assets such as gold.

In the past, these happened in isolated cases, but were more commonplace these days, as many countries and regions, including the US and the European Union, were concurrently pumping cash into their economies to keep them buoyant.

In some cases, as in the US, debt was reaching unprecedented levels at around $17-trillion. He said it worked well when interest rates were low, but should rates climb to about 5%, the debt service costs alone would be about a trillion dollars, which would crowd out other essential public services.

Australia’s carbon mess a warning to the world – by Clyde Russell (Reuters India – July 17, 2013)

July 17, 2013

http://in.reuters.com/

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

LAUNCESTON, Australia, July 17 (Reuters) – Any government thinking of introducing policies to limit carbon emissions should look at Australia for an example of how not to do it.

Australia’s efforts to combat climate change have been poison to politicians from all sides of the debate, contributing so far to the demise of two prime ministers and an opposition leader, and there may be more to come. The latest twist has seen Prime Minister Kevin Rudd decide to switch from a straight tax on carbon emissions to a floating emissions trading scheme (ETS) a year earlier than planned.

This has nothing to do with improving the workings of the scheme or limiting carbon emissions and everything to do with trying to win back voters angered by rising electricity prices and industries that have seen their international competitiveness eroded by the tax.

The theory is that power and other prices will decline as the cost of carbon permits is expected to be around A$6 per tonne – the level at which European permits are currently priced – compared to the tax of A$25.40 ($23.09) per tonne that had been planned from July 2014.

UPDATE 2-ArcelorMittal abandons dormant Indian project – by Krishna N Das (Reuters India – July 17, 2013)

July 17, 2013

http://in.reuters.com/

NEW DELHI, July 17 (Reuters) – ArcelorMittal, the world’s top steelmaker, said it would scrap a planned steel plant in India due to delays in acquiring land and an iron ore mine, obstacles that have also caused South Korea’s POSCO to abandon plans.

The decision to scrap the planned 12 million-tonnes-a-year (MTA) plant in the eastern state of Odisha, comes a day after the world’s fifth biggest steelmaker, POSCO, said it was ditching a 6 MTA plant in the southern Karnataka state because of delays in receiving iron ore mining rights and opposition from residents which had held back land acquisition.

The failed projects will be a blow to India’s federal government, which on Tuesday relaxed foreign investment rules to draw in funds needed to turn around slowing economic growth and support a weak rupee.

ArcelorMittal India and China Chief Executive Vijay Bhatnagar said the company’s other two projects in mineral-rich states of Jharkhand and Karnataka were making “steady progress” and it would continue to pursue them.

The Jharkhand plant is expected to have an annual capacity of 12 million tonnes, while the one in Karnataka is expected to have capacity of 6 million tonnes.

Copper: The metal that will build our future? – by Cole Latimer (Australian Mining – July 16, 2013)

July 17, 2013

http://www.miningaustralia.com.au/home

As we slowly come off the back of the mining boom, a number of questions are starting to be asked. Has the boom been played out, where to next, what will happen to iron ore? But what all are asking is what will be the metal of the future? What should we be digging that will provide the greatest return?

Perhaps the future is a metal which is a major part of humanity’s past – copper. Iron ore has been the metal that really drove Australia’s mining boom. It was the hero of the hour.

On the back of seemingly unending demand from Asia to fuel the growth of China we saw commodity prices skyrocket and essentially drag our nation out of the Global Financial Crisis.

Coal was also surging head, as both China and India required the energy needed to turn them into first world nations. As
a background to this gold prices also spiked, reaching never before seen heights.

But now the good times are over for these metals and the prices have steadily dropped, stabilising at more reasonable levels, or in some cases plummeting to just above cost levels.

Minister Michael Gravelle Energized [for Ring of Fire] – by Jame Murray (Netnewsledger.com – July 17, 2013)

July 17, 2013

http://www.netnewsledger.com/

THUNDER BAY – Minister of Northern Development and Mines, Michael Gravelle is energized. The Thunder Bay Superior North MPP has completed his treatment cycle fighting cancer. Minister Gravelle is feeling thankful that throughout his treatment, his energy level stayed high and he was able to keep working.

There are important issues, especially with the Ring of Fire that have taken a lot of attention from Gravelle. One of his tasks sounds simple. “Getting the right balance”.

Minister Michael Gravelle – Getting it right

However that task means bringing together the province and the federal government and First Nations. Back in May, Gravelle shares in an interview with NetNewsLedger there was a historic meeting with Matawa First Nations, Premier Wynne and his ministry. “There had been no similar meeting for over forty years,” shares the Minister. There had been both formal and informal talks, but not a formal meeting like that.

Gravelle states that “Cliffs Natural Resources and Noront Resources are both seeing the importance of engaging with First Nations, and getting this done right”. The Minister also is looking forward to a larger role from the federal government in the Ring of Fire.

Gold Imports by India Seen Shrinking as Curbs Increase Costs – by Swansy Afonso & Pratik Parija (Bloomberg News – July 17, 2013)

July 17, 2013

http://www.bloomberg.com/

Gold imports by India, the world’s biggest consumer last year, may tumble in the second half as the government curbs shipments to contain a record current-account deficit and stem a slide in the currency.

Inbound shipments may drop 22 percent to 372.5 metric tons in the six months through December from 478 tons a year earlier, according to a median of estimates from 10 importers, jewelers, analysts and trade groups compiled by Bloomberg.

That may still boost full-year imports to about 902 tons from 860 tons in 2012, according to Bloomberg calculations based on data from the World Gold Council and the All India Gem & Jewellery Trade Federation.

Falling Indian demand for physical gold may deepen a bear market in bullion as some investors sell the metal amid signs of an improving U.S. economy. Shoppers from India to China and Turkey crowded retail outlets to buy jewelry, coins and bars in April after the precious metal posted the biggest two-day loss in three decades. Goldman Sachs Group Inc. says that gold will reach $1,050 by the end of 2014, while Credit Suisse Group AG forecasts $1,150 in about a year.

“I see no reason to buy more gold,” said Bharti Chandra, a 38-year-old housewife, dressed in a salwar, who was selling an old necklace in Mumbai’s Zaveri Bazaar, the largest bullion market in the country.