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Minnesota must keep a close eye on sand mining – (Minneapolis Star Tribune – June 22, 2013)

http://www.startribune.com/

Even in a legislative session marked by pitched battles over taxes, the health care exchange and child care unionization, the debate over how to regulate an industry poised for rapid growth in southeastern Minnesota — frac sand mining — stood out in emotion and intensity.

In packed Capitol hearing rooms, citizens and local government officials from this environmentally fragile part of the state pleaded for a mining moratorium and broad state regulatory authority to protect scenic bluffs, cold-water trout streams and picturesque towns. Industry advocates championed mining’s economic development potential as demand grows for the region’s desirable sand — a key ingredient in hydraulic fracturing, a process used to unlock deposits of oil and natural gas.

Over the course of the session, sweeping environmental protections such as a moratorium or a sensible ban on mining within a mile of region’s trout streams fell by the wayside, a testament to industry lobbying strength.

But a deal brokered late in the session with Gov. Mark Dayton’s leadership yielded smaller, yet potentially valuable new safeguards. Among them: a new permitting role for the state Department of Natural Resources for mining operations proposed near sensitive trout streams, the creation of air quality rules for particulate emissions by the Minnesota Pollution Control Agency, and development of “model ordinances” to help local government, which still shoulders much of the responsibility in the state for approving sand mines, to better regulate the industry.

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City of Greater Sudbury:State of the City Address – 2013 – by Mayor Marianne Matichuk (June 20, 2013)

(Check against Delivery)

For video presentation, go to … http://prezi.com/jppg_zap9kio/?utm_campaign=share&utm_medium=copy

City of Opportunity

Good afternoon Ladies and Gentlemen and thank you for taking time from your busy schedules to attend this year’s State of the City Address. Bonjour … Aannii … C’est un honneur d’être ici aujourd’hui …

This is my third address and it is something I look forward to every year. Before I go any further, there are several people I want to thank and acknowledge.

First, the Greater Sudbury Chamber of Commerce for not only hosting today’s event, but for your relentless efforts in advocating for business and increased prosperity in Greater Sudbury. I would like to thank today’s sponsors – The OLG, Eastlink, Porter Airlines and Vale … Events like these would not be possible without the support of our valued community sponsors.

I’d like to begin with two items that have come before City Council in recent weeks that really stand out for me …

First, our planning department tells us the population of Greater Sudbury is expected to grow in the coming 25 years … it’s just a matter of how much. In fact, during the next term of council, our population will likely return to its all-time high of 171,000 people, recorded in 1971.

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Bob Rae jumps into Ring of Fire – by Gloria Galloway (Globe and Mail – June 24, 2013)

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.

OTTAWA — Bob Rae has had a few tough assignments in his life, but the job he faces as he departs his federal political career could be one of the most challenging.

Mr. Rae will represent nine different native governments as chief negotiator for the Matawa First Nations in talks with the Ontario government about the opening of their land to the massive Ring of Fire mineral development. There are varying ideas about how to proceed, and even about what his role should be.

The huge impact the mining projects in the remote northwest part of the province could have on the native communities’ environment, social welfare and long-term prosperity means there is an imperative to get it right – to ensure that the First Nations walk away from the negotiations with deals that will leave them richer, not poorer.

Mr. Rae, who has been interim leader of the federal Liberals for the past two years, says he recognizes the potential harms and benefits that could befall the people who have trusted him to fight on their behalf.

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UPDATE 1- Barrick to lay off up to a third of its corporate staff – sources -by Euan Rocha (Reuters U.S. – June 24, 2013)

http://www.reuters.com/

TORONTO, June 24 (Reuters) – Barrick Gold Corp will lay off up to a third of its corporate staff at its headquarters in Toronto and other offices, sources said, as the world’s top bullion producer intensifies a downsizing plan amid a slump in the price of gold.

Barrick and miners such as Newmont Mining and Newcrest Mining are shaking up operations and taking measures like shutting down development projects, slashing exploration spending and cutting jobs due to the sliding gold price.

The cuts were announced by Barrick’s Chief Executive Jamie Sokalsky at a town hall meeting with staff in Toronto last week, said the sources, who asked not to be named as they are not officially authorized to speak about the matter.

One source said this is the first ever round of across-the- board layoffs for the company at its corporate headquarters in Toronto. Besides the falling gold price, it is also facing operational and regulatory issues at some of its mines and projects.

Barrick has over 400 people working as corporate staff with the vast majority of those located in Toronto, said the sources. A spokesman for Barrick was not immediately able to comment on the matter.

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Noront pushing east-west road corridor again – by Shawn Bell (Wawatay News – June 22, 2013)

http://www.wawataynews.ca/

Following news that Cliffs has suspended its environmental assessment for its Ring of Fire chromite mine, Noront announced that it is once again looking at the east-west road corridor into the mining development. The company also stated that its plans for development in the Ring of Fire have not changed in light of Cliffs’ announcement.

“In addition to supporting a North-South access route, Noront has always supported an East-West alternative approach for the development of the Ring of Fire that balances First Nations objectives, the environment and job growth,” said Paul Parisotto, Noront’s chairman and interim CEO in a press release.

“We’re confident this alternative will be attractive to each level of government, the local communities and the people who will benefit from this sensible approach to stimulating development in the Ring of Fire,” Parisotto added.

The east-west corridor was originally proposed by Noront as a transportation corridor linking the Ring of Fire to the existing highway system at Pickle Lake. A similar route was proposed by four Matawa communities – Neskantaga, Nibinamik, Eabametoong and Webequie – as a way to connect their communities to the southern highway grid through the development.

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Ring of Fire delay not a bad thing – by Shawn Bell (Wawatay News – June 22, 2013)

http://www.wawataynews.ca/

There has been a lot of teeth gnashing and finger pointing since Cliffs announced it put its Ring of Fire mine environmental assessment on hold. Opposition parties have put the blame on the provincial government. And First Nations, specifically Matawa First Nations, were implicated for holding up the process with a judicial review.

Following the announcement, it was like the sky was falling. Ontario’s once bright mining future was being painted with dark clouds overhead.

But there’s no reason to cry. A delay in Cliffs’ project is not the end of the world. It may actually be the best-case scenario.

First Nations have long argued that they are not ready for the Ring of Fire. More time is needed to prepare the communities, train members for the jobs that will become available and ensure all the necessary agreements with governments and companies are in place. And while governments and industry acknowledged those needs, work seemed to continue unabated while discussions with First Nations were ongoing.

During a media tour in 2012, the chiefs of both Webequie and Marten Falls – two communities that in many ways are at the forefront of working with governments and industry – argued that the Ring of Fire was coming too fast.

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Abe Offers $32 Billion to Africa as Japan Seeks Resources – by Isabel Reynolds & Takashi Hirokawa (Bloomberg News – June 1, 2013)

http://www.bloomberg.com/

Japanese Prime Minister Shinzo Abe pledged 3.2 trillion yen ($32 billion) to Africa as his government seeks to catch up with China in pursuing resources, markets and influence on the continent.

Abe announced the five-year commitment of public and private support in a speech today at theTokyo International Conference on African Development. Officials from about 50 nations are attending the meeting, held every five years, which is the biggest African development event outside the continent since it began in 1993.

Africa’s economic growth is luring Japanese exporters, while the government wants to tap the natural gas and oil there after the 2011 Fukushima disaster led to the closing of Japan’s nuclear plants. Chinese firms helped fuel $138.6 billion in China-Africa trade in 2011, almost five timesJapan’s commerce with the continent, according to the Foreign Ministry, citing International Monetary Fund data.

“China has become a far greater presence than Japan in Africa — it’s overwhelming,” said Kazuyoshi Aoki, a professor at Nihon University in Tokyo who specializes in African matters. “The difference lies in the level of determination. There’s a different perception of Africa’s importance.”

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UPDATE 3-Mongolia tells Rio Tinto to delay Oyu Tolgoi copper exports (Reuters India – June 21, 2013)

http://in.reuters.com/

ULAN BATOR, June 21 (Reuters) – Rio Tinto said its plan to start exporting copper from the $6.2 billion Oyu Tolgoi mine on Friday has been delayed at the request of the Mongolian government, heightening investor concerns about the risks of mining in the country.

Uncertainty over what was behind the delay sparked an exodus out of shares in other Mongolian miners on Friday, with Canadian and Australian listed miners exposed to the country sliding between 10 and 20 percent.

Journalists had been invited last week to attend a ceremony at the copper and gold mine on June 14 to mark the first exports. That was postponed to June 21, but the event was again cancelled at the last minute. Mongolia is due to hold a presidential election on June 26.

“Oyu Tolgoi is ready to start its first shipments of copper concentrate from its Mongolian mine and all necessary permits to do so have been received from relevant authorities,” Rio Tinto spokesman Bruce Tobin said on Friday.

“However, plans to start shipping on Friday 21 June have been postponed at the request of the government of Mongolia.” The company declined to comment on what was behind the latest delay.

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CORRECTED-UPDATE 2-Two dead in suspected Renamo attacks in Mozambique – by Marina Lopes (Reuters India – June 21, 2013)

http://in.reuters.com/

MAPUTO, June 21 (Reuters) – Gunmen killed two people in ambushes on vehicles in Mozambique on Friday, two days after the opposition Renamo party threatened to sabotage transport routes in the mineral-rich southern African country.

Just before the attacks, police arrested Renamo information chief Jeronimo Malagueta, who on Wednesday had announced that the ex-guerrilla group would halt traffic on main roads and the Sena railway linking the northwest coal-fields to the sea.

Persistent tension between Renamo and the ruling Frelimo party, who fought each other in a 1975-92 civil war, has alarmed citizens and investors just as the former Portuguese colony enjoys a boom driven by bumper coal and gas discoveries.

“We urge all Mozambicans to stay vigilant to premeditated and spontaneous attacks and threats to public safety,” Interior ministry spokesman Pedro Cossa told a news conference in Maputo.

Cossa said a truck driver and his passenger were killed and five others wounded in Friday’s attacks. He denied reports that a bridge was damaged in the central province of Sofala, a Renamo stronghold.

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Caisse de dépôt provides shot in the arm for mining – by Peter Hadeke (Montreal Gazette – June 20, 2013)

http://www.montrealgazette.com/index.html

MONTREAL — The mining industry in Quebec has been reeling since the Parti Québécois government made the provincial royalty regime more onerous.

The government’s decision to impose royalties on both production and profits was seen by industry players as the wrong move at the wrong time, given the volatility in metal prices and the scarcity of investment capital these days.

Now, an arm of the provincial government is stepping in with more positive news. The Caisse de dépôt et placement, Quebec’s giant pension fund manager, announced Thursday that it’s injecting $250 million to invest in Quebec mining companies through a fund known as Sodémex Développement. Its mandate will include investing in all stages of mining activity.

It will purchase stakes of between $5 million and $20 million, primarily through debentures or equity. The announcement comes at a time when many voices in the industry are complaining about a brutally tough investment climate that has made it extremely difficult to raise financing. The appetite for risk has diminished sharply.

“It might be the global economy, it might be the situation in China, it might be the decline in gold prices,” said Dany Pelletier, a senior Caisse executive who will be involved in the new fund.

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CBC Thunder Bay’s Lisa Laco interviews Republic Of Mining’s Stan Sudol about Ring of Fire (CBC News – June 17, 2013)

                              Is it the boom-bust cycle of mining, or is Cliffs Natural Resources playing political poker? Up next, a mining analyst Stan Sudol makes sense of the latest Ring of Fire developments. Click here: http://www.cbc.ca/superiormorning/episodes/2013/06/17/republic-of-mining/

Mining in Minnesota — regulation needed – by Rolf Westgard (Minneapolis Star Tribune – June 21, 2013)

http://www.startribune.com/

Rolf Westgard is a professional member of the Geological Society of America and is adjunct faculty on energy subjects for the University of Minnesota’s Lifelong Learning program.

This is a potentially significant industry for the northeastern part of the state. Regulation is needed, and can succeed.

Josephine Marcotty’s June 16 article “Minnesota’s next mining boom” focused on the environment-vs.-economics dispute that hangs over Minnesota’s world-class deposits of copper, nickel, cobalt, gold and platinum group elements.

They lie in a band, meandering from southwest to northeast, adjacent to the Archean granite of Minnesota’s Iron Range. They arrived more than a billion years ago in the magma that featured northern Minnesota’s active volcanic history. They are concentrated out of the magma by liquid sulfur, which acts as a “collector,” because these elements prefer the sulphide liquid to the magma by a factor of 1,000 times more. This process is responsible for forming the world’s economically mineable magmatic nickel-copper sulphide deposits, like those found in Canada, Russia and the United States.

Demand for these elements is soaring. One reason is their use in renewable energy systems that provide transmission, rechargeable batteries and wind turbine technology.

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Plunging prices put squeeze on gold miners – by Peter Koven (National Post – June 21, 2013)

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

Another steep drop in gold and silver prices is forcing mining companies to look at severe cost-saving measures that would have been unthinkable at the start of the year.

When bullion plunged 13% in two days back in April, miners evaluated contingency plans they would adapt if prices continued to weaken. Those included major production cuts, dividend cuts, layoffs and mine closures.

With gold sinking another 6.4% on Thursday to below US$1,300 an ounce (along with an 8% drop for silver), those contingency plans no longer feel like such a longshot. Numerous analysts have warned that if prices fall much below US$1,200 for a prolonged period, even the large companies would consider large restructuring initiatives.

Many gold miners have curtailed capital spending, delayed projects or both. However, some development companies are already starting to overhaul their business in more dramatic ways. It is a potential sign of things to come if the bear market gets worse.

One example came this week, when Ottawa-based Orezone Gold Corp. tossed out its entire development plan for a project in West Africa and replaced it with a cheaper option that has a better shot at being financed.

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Higher expectations [for Ring of Fire] – by Jeff Labine (tbnewswatch.com – June 21, 2013)

http://www.tbnewswatch.com/

Ontario has hired a secretariat for the lead negotiator of the Ring of Fire, even though the province still doesn’t actually have a lead negotiator.

Christine Kaszycki took on the job of being province’s Ring of Fire secretariat back in 2010. Since then, Matawa First Nation engaged former MP Bob Rae to act as a mediator with the province during the negotiations.

Rae announced that he would be retiring from politics in order to focus on his responsibilities as Matawa’s Ring of Fire negotiator.

MPP Bill Mauro (Lib. Thunder Bay – Atikokan) said Rae stepping down has put more pressure on the province to find its lead negotiator. “It certainly heightened expectations,” he said. “There’s a commitment from the province that we appoint someone as well who can have a similar role.”

Mauro said the negotiator wouldn’t just work with Matawa, but with all areas impacted by the Ring of Fire development. That includes the private interests. While the secretariat does negotiate, Mauro said there are high expectations for the province to do more and to have more focused approached.

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Challenges ahead [Thunder Bay mining forum] – by Jeff Labine (tbnewswatch.com – June 20, 2013)

http://www.tbnewswatch.com/

Mike Metatawabin says he’s disappointed that there wasn’t more First Nation representation at this year’s provincial mining conference.

Metatawabin, the president of Five Nations Energy Inc., joined about 50 other participants at the third annual Ontario Mining Forum at the Valhalla Inn. The two-day mining forum, which started Thursday, promised keynote speakers such as Ontario’s Ring of Fire Secretariat Christine Kaszycki but did not deliver.

Instead, the forum heard from various speakers including politicians and the city’s Community Economic Development Commission on the mining industry in the region.

The cost to attend the event averaged out to be about $2,000 per person. Some participants speculated that that price kept more people, including First Nation officials, from attending. With major projects like the Ring of Fire being discussed, Metatawabin believes it’s crucial First Nation organizations and chiefs attend these conferences.

“During the course of these conferences that I’ve attended, these presentations bring a lot of hope and a lot of inspiration to what we need in the North,” he said. “I think our leadership needs to hear this and be a part of these conferences. We need to sit down, set aside the politics and maybe engage our business people. There’s so much potential here.”

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