Republic of Mining

Osisko Deposits Study Reporting Local and Regional Economic Impact of the Canadian Malartic Mine

July 11, 2013

MONTREAL, QUEBEC–(Marketwired – July 10, 2013) – Osisko Mining Corporation (the “Company” or “Osisko”) (TSX:OSK)(FRANKFURT:EWX) is pleased to announce that in accordance with its environmental monitoring plan (“EMP”), it has filed with the Ministry of Sustainable Development, Environment, Wildlife and Parks (“MDDEFP”), a study on Canadian Malartic mine’s local and regional economic impact. This study was conducted by the independent consulting firm KPMG-SECOR and reports the economic impact of the Canadian Malartic mine. The study has also been filed with the Town of Malartic, as well as with the Canadian Malartic Monitoring Committee.

Sean Roosen, President and Chief Executive Officer of Osisko Mining Corporation, commented: “The KPMG-SECOR study demonstrates the positive impact of Canadian Malartic in recent years on the economy of Malartic, Abitibi-Témiscamingue and Quebec. During the BAPE hearings in 2009, Osisko had estimated that the project would be an economic engine for local, regional and Quebec economies. This study confirms our assessment.”

The study shows that Canadian Malartic:

Supports nearly 1,600 jobs in Abitibi-Témiscamingue, including 635 direct jobs at the mine site;

AFRICA INVESTMENT-South African miners demand leap to “living wage” – by Ed Stoddard and Benon Oluka (Reuters India – July 10, 2013)

July 10, 2013

http://in.reuters.com/

JOHANNESBURG, July 10 (Reuters) – “A living wage” is the battle cry of South Africa’s Association of Mineworkers and Construction Union (AMCU) as it and rival unions plunge into pay talks this month with mining houses.

But what is a living wage for a South African miner? Finding a definition, no easy task, has become the goal of an increasingly militant labour force demanding pay increases ranging from 15 to 150 percent, which mining companies can ill afford as precious metals prices tumble and costs surge.

Wage negotiations in the gold sector kick off on Thursday. The issue is complicated by many variables and by the difficulty of defining fair pay for work that may often require only low levels of skill but is very tough and dangerous.

“It’s difficult to put a number on a living wage,” said Boitumelo Sethlatswe, a researcher at the South African Institute of Race Relations.

“It depends how many people are in your household, and are there people in your household with access to social grants such as for old age pensions and child support,” she said.

POSCO may soon get iron ore licence for Odisha plant – by Krishna N Das (Reuters India – July 10, 2013)

July 10, 2013

http://in.reuters.com/

REUTERS – India is expected to grant an iron ore exploration licence to POSCO(005490.KS) for its planned $12 billion steel plant in the country, two government officials told Reuters, in a step that should speed up the project stuck for eight years.

The Supreme Court in May handed a decision on a licence to the government, raising the South Korean firm’s chances of getting access to iron ore for the project billed as India’s largest foreign direct investment.

“POSCO India should get the license in a month or so,” said a senior government official involved with the decision-making. “The government is looking at it positively.”

Another official directly involved in the matter said the government was speeding up the process given that the Supreme Court has already ruled against a lower court order declining a prospecting licence for POSCO. Prospecting licences are generally valid for three years, after which a prospector has to apply for a mining lease.

Access to iron ore, the main raw material in making steel, is the most important factor in POSCO deciding to set up the plant in India, experts have said.

NEWS RELEASE: Armistice Resources Begins Shipping Ore for Gold Processing at QMX Facilities

July 10, 2013

• Shipment of first 10,000 tonnes of gold-bearing ore begin from Armistice’s McGarry Gold Mine for processing at QMX Gold’s facilities in Val-d’Or Township, Quebec

• Armistice adopts temporary revised work schedule at McGarry Mine as maintenance program underway

Toronto, ON – July 8, 2013 – Armistice Resources Corp. (TSX: AZ), operator of the McGarry gold mine in Ontario’s Kirkland Lake area, today announced that it has begun shipping gold-bearing ore from the mine for processing by QMX Gold Corporation (TSX: QMX).

On June 14, 2013, Armistice announced that it had signed a custom milling agreement with QMX to begin processing ore from its McGarry Mine at QMX’s facilities in Val-d’Or Township, Quebec.

“With the construction of an impermeable pad at QMX’s facilities now completed, we have initiated shipment of the first 10,000 tonnes of ore from our McGarry mine for processing,” said Todd J. Morgan, chief executive officer and president of Armistice.

As previously announced, the processing agreement with QMX is for a term of at least one year and a minimum of 30,000 tonnes of ore to be delivered by Armistice.

Mine Mill, First Nickel settle on 4-yr. deal – by Star Staff (Sudbury Star – July 10, 2013)

July 10, 2013

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

First Nickel Inc. and the union representing about 105 production and maintenance workers at the company’s Lockerby Mine have settled a new four-year contract.

Members of Mine Mill Local 598/CAW voted 94% Tuesday to accept a collective agreement, which their bargaining committee recommended they accept.

Mark Isto, vice-president of operations with First Nickel, said ratifying a four-year contract is an important milestone for the mine, which reached full production earlier this year.

“The operation faces considerable economic pressures from low nickel prices and we feel the agreement strikes a balance between the needs of both parties,” said Isto. Nickel has been selling for about $6.10 a pound.

Lockerby Mine manager Cliff Lafleur said negotiations with the union were “constructive and progressed well, leading to a fair deal for both sides.”

Peat fuel producer faces uphill battle to join province’s biomass program – by Ian Ross (Northern Ontario Business – September 8, 2009)

July 10, 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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

A Toronto-based manufacturer of peat fuel wants more transparency from the Ontario Power Generation (OPG) on its plan to replace coal with wood biomass fuel at its generating plants.

For years, Peter Telford has been trying to muscle his way into Ontario’s green fuel mix ever since the McGuinty government pledged to ween all of its power plants off coal by 2014.

His company, Peat Resources Ltd., was one of 80 respondents to OPG’s procurement call last winter to help supply and transport biomass to feed their generating station boilers to produce a cleaner form of electricity.

With 30,000 ha under permit in northwestern Ontario, Telford wants to harvest and produce peat pellets from bogs in Upsala where his proposed operation would create as many as 200 jobs.

While OPG has been telling those respondents this summer it is refining biomass fuel specifications and requirements, the engineering is underway to have the Atikokan Generating Station converted over to operate as the first biomass-burning plant by 2012.

Cliffs Natural Resources CEO Carrabba to retire; Brlas out as exec VP – by Mark Dodosh (Cleveland Business – July 10, 2013)

July 10, 2013

http://www.crainscleveland.com/

Big changes are coming to the executive suite at Cliffs Natural Resources Inc. (NYSE: CLF), which over the last 12 months has seen its stock lose nearly two-thirds of its value and has run into problems with a big investment in Canada.

The Cleveland-based producer of iron ore and metallurgical coal said Joseph Carrabba has informed the Cliffs board of his plans to retire as president and chief executive officer by Dec. 31.

In addition, Cliffs said Laurie Brlas, its executive vice president and president of global operations, has retired and is leaving the company, effective immediately. The company did not give a reason for her sudden departure.

Cliffs said James Kirsch, who currently serves on the board as lead director, has been elected non-executive chairman of the board, effectively immediately, replacing Mr. Carrabba as chairman.

Mr. Carrabba will continue to serve as president and CEO and a director until a successor has been elected, after which point he also will step down from the board.

Five Things to Consider Before Pursuing a Career in the Mining Industry – by Lily Ambrosi

July 10, 2013July 10, 2013

Lily Ambrosi is a freelance writer who enjoys writing about industry-specific niches. She currently focuses on minerals processing and alternative energy.

Because the mining industry has proved to be fairly profitable, and because there is a high demand for workers, many individuals have considered pursuing a career in the field. While it might seem like an exciting, lucrative opportunity, it’s important to think over a few key points before you quit your day job. As with all life choices, it’s important to dig deep and do your research before you take anything too seriously, and if you’re looking to make the transition to the mine fields, here are a few things to keep in mind.

Mining Areas Aren’t Glamorous

More often than not, securing a mining position will place you in a remote location with harsh weather conditions. They can be cold, damp, humid, and dark, so it’s important to make sure those are elements you’re willing to accept and live with. Being far away from family and friends is harder for some than others, so it’s important to ensure you have a strong mental state of mind as well. As far as working hours go, be prepared to put in a lot of time. Many workers put in around twelve hours per day, but remember that’s not sitting at a comfortable office desk; intense physical labor can be exerting on anyone, so keep that in mind as you explore your career options.

First Nation reminds IOC suitors of ‘fierce opposition’ to on-reserve mining – by Henry Lazenby (MiningWeekly.com – July 9, 2013)

July 10, 2013

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

TORONTO (miningweekly.com) – The Innu First Nation of Uashat Mak Mani-Utenam has reminded potential suitors of mining giant Rio Tinto’s 58.7% stake in the Iron Ore Company of Canada (IOC), that the Aboriginal group continued to “fiercely oppose” IOC’s mining, railway and port operations within their traditional territory.

The group had, in March, filed legal proceedings against IOC, along with the Innu First Nation of Matimekush-Lac John, asking the Quebec Superior Court to block the company’s operations in Quebec and Labrador. The two groups had also sought C$900-million in compensation, which they alleged represented IOC’s profits at the facilities since 1954.

The Innu groups claimed the miner had violated their rights for nearly 60 years, causing harm by operating a large mining complex and 578 km railway on traditional territory (Nitassinan) in north-eastern Quebec and Labrador since the 1950s, without their prior consent. The facilities were located in the communities of Schefferville, Labrador City and Sept-Îles.

“The Innu are well past their breaking point and, in addition to the legal action, IOC can expect further acts of opposition in the coming months. While it is clear that Rio Tinto is looking to offload assets, the Innu First Nation of Uashat Mak Mani-Utenam cannot help but feel that Rio Tinto is also seeking to offload the ‘Innu problem’,” the group said in a statement on Tuesday.

Commodities super-cycle is ‘taking a break’ – by Eric Ng (South China Morning Post – July 10, 2013)

July 10, 2013

http://www.scmp.com/

Runaway prices in commodities markets have ended, but long-term demand for commodities on the mainland is strong

The commodities “super-cycle”, largely buoyed by Chinese buying, may have ended in terms of runaway prices but robust demand is expected to continue. A more benign price outlook would benefit large commodities consumers and importers like China as it would help contain inflation and promote economic growth.

Eugen Weinberg, head of commodity research at Commerzbank in Germany, said: “Price movements in the market indicate an end to the commodities super-cycle. But we do not believe the super-cycle is coming to an end. It’s just taking a break. “Some 20 million people a year move from the countryside to the cities, triggering a huge demand for better infrastructure.”

Michael Haigh, global head of commodities research at the French bank Societe Generale, said: “We do not think the current commodity super-cycle is over, but it is not as super. It is common to have cycles within super-cycles.”

The super-cycle that began around 2002 was driven by a combination of strong demand from emerging nations and low supply growth. Since last year, growth in global demand has weakened as a result of the sovereign debt crisis in many developed nations, while new supply caught up with demand because of strong investment during the latter years of the boom.

Cliffs CEO Carrabba to leave Cleveland mining company by year’s end – by Alison Grant (Cleveland Plain Dealer – July 10, 2013)

July 10, 2013

http://www.cleveland.com/

Cliffs Natural Resources Inc. announced this afternoon that Joseph Carrabba will retire as president and chief executive officer by Dec. 31. Laurie Brlas, president of global operations and the company’s former chief financial officer, has retired and will leave immediately, Cliffs said.

James Kirsch, who is lead director of Cliffs’ board, has been elected as non-executive chairman of the board, taking that position immediately, replacing Carrabba as chairman. Cliffs also said its board has elected Mark Gaumond, 62, former senior vice chair of Ernst & Young’s Americas division, as a new director.

Also today, Cliffs declared a quarterly cash dividend of $0.15 per share. The dividend will be payable Sept. 3 to shareholders of record as of the close of business on Aug. 15.

The Cleveland-based company has struggled with a softer Chinese construction market, cutting into its seaborne ore sales. Cliffs idled iron ore mines in Michigan and Minnesota and also announced in November it would postpone expansion of its Bloom Lake mine in Canada.

No rail is a pipe dream – by Lorne Gunter (Toronto Sun – July 10, 2013)

July 10, 2013

http://www.torontosun.com/home

As an Albertan and an advocate of pipelines to move oil to refineries and ports, I’ve been asked a dozen times or more since Saturday’s rail disaster in Lac-Megantic, Quebec, whether I think the tragedy that has left at least 13 dead, will spark politicians to approve more pipelines, such as Keystone XL, Northern Gateway or the doubling of Kinder Morgan’s Trans Mountain.

I recognize that now is a sensitive time even to answer such a question. People are dead — people who were minding their own business asleep in their beds or out for a night at a local bar. Our thoughts and prayers should first be with them.

Others have had their lives overturned, either because they lost a loved one in the blast or because their tiny, picturesque world was obliterated when 73 black tanker cars carrying hundreds of thousands of litres of crude oil came hurtling into the centre of town and exploded, “vaporizing” nearly everything standing within a two-block radius.

But to the extent an answer is appropriate now, it’s this: This is not an either/or proposition. Canada will need both pipelines and rail to get its oil to market. And oceangoing tankers, too. And all three are safe. Each can be made even safer. But each is already very safe, particularly when compared to 20 or 30 years ago.

The Guangxi miners in Ghana gold rush – by Anna Healy Fenton (South China Morning Post – June 4, 2013)

July 10, 2013

http://www.scmp.com/

Chinese President Xi Jinping ended his six-day visit to Africa on a high note, leaving behind signed deals and warm pledges. The Republic of Congo was his final stop, after Tanzania and South Africa. He’s committed to a river port in Oyo, Congolese President Denis Sassou Nguesso’s hometown, and a sea port in Pointe-Noire for exporting mineral ore.

Congo is already an established oil producer and China is already its biggest trading partner. Xi announced he wanted to raise ties with Congo “to a new and higher level”.

“We expect to work together with our African friends to seize upon historic opportunities and deepen cooperation … in order to bring greater benefit to the Chinese and African peoples,” he said in Brazzaville.

Fine words indeed. One place he did not go was Ghana, in West Africa, where he could have seen Chinese and African co-operation in action. This is the scene of the gold rush 2013 style, where about 50,000 migrants from Shanglin in southern Guangxi, have received welcomes a little less warm than Xi’s.

Natives of Shanglin, famous for producing and exporting gold miners, started heading to Ghana’s goldfields eight years ago.

Reports Of Commodities Bull Market Demise May Be Greatly Exaggerated – by Marty Leclerc (Forbes Magazine – July 9, 2013)

July 9, 2013

http://www.forbes.com/

It has been a powerful bull market in commodities. So impressive, many refer to it as “the super-cycle.” Driven by insatiable demand from China and other developing nations, cheap money courtesy of the Fed and lack of investment in the previous cycle, commodities have been the place to be for over a decade.

Oil prices are up five-fold since the late 1990s, iron ore is up seven times and most agricultural commodities have more than doubled. Gold, as attested to on AM radio and in late night TV commercials, also enjoyed a bullish ride and is up over five times its price in 2001.

Now, if you believe the commodity bears, this super-cycle is over. Their argument: China’s economy is permanently stuck in a lower growth mode and Beijing’s focus has moved from building infrastructure to stimulating its consumer economy. This will slacken demand for commodities, the argument goes, and put downward pressure on prices. The big investment banks have published unequivocal research supporting this view including Citi’s, “From Commodities Super-cycle to Unicycles,” and Deutsche Bank DB +0.7%’s, “Trading the Commodity Underperformance Cycle.”

This thesis has gathered steam as commodity prices have fallen. Since Labor Day 2011, gold has dropped by 34%. Many other formerly hot commodities haven’t fared much better.