Republic of Mining

World Bank says mining can make double digit contribution to Nigeria’s GDP – by Luke Ajulo (World Stage Group – July 3, 2013)

July 3, 2013

http://www.worldstagegroup.com/worldstagenew/index.php

WorldStage Newsonline—From the current 0.5 per cent contribution of mining to Nigeria’s Gross Domestic Product (GDP), the World Bank believed that a duble digit figure can be achieved through proper planning.

Speaking at Stakeholders Workshop on the Australian and Canadian Externally Financed Output (EFO) Programme for Mining Sector Development in Nigeria, the World Bank Country Director, Marie Franciose Marie-Nell, said that in partnership with the Canada International Development Agency (CIDA) and the Australian Agency for International Development (Aid), the World Bank was launching a two-year mining sector intervention Programme as a continuation of the Sustainable Management of Mineral Resources Programme which ended last year.

Represented by Mr.Mr. Michael Wong, he said that “it is a stepping stone for a further programme and a wider engagement in the mining sector. As we know, the contribution from the sector is 0.5% GDP, and it can be increased to double digit if possible and we hope that contribution are needed and the Australian government will assist the ministry in developing the roadmap towards the development of the sector.”

He said the Programme is financing timely integrated infrastructural development, adding that the Programme fits into the country’s new system framework for development partners such as DFID, the African Development Bank and others.

Nishnawbe-Aski Nation wants in on Ring of Fire talks – by Jody Porter (CBC News – July 3, 2013)

July 3, 2013

http://www.cbc.ca/thunderbay/

Ontario can’t ignore other First Nation concerns, NAN deputy chief says

One day into his new role and fresh challenges are cropping up for the province’s negotiator in the Ring of Fire. Ontario appointed former Supreme Court Justice Frank Iacobucci on Tuesday as it’s negotiator in talks with the nine Matawa chiefs whose communities are closest to the proposed mining development.

Former Ontario Premier Bob Rae is representing those chiefs in the planned talks. But the Nishnawbe Aski Nation says it needs a seat at the table too. “This is not just a specific regional project, in fact it is a treaty-wide impact and I think that’s what the province needs to recognize,” NAN deputy chief Les Louttit. “We would like to see a broader negotiation framework.”

Lessons from Attawapiskat

Nishnawbe Aski Nation represents 49 First Nations in Northern Ontario. Louttit said communities on the James Bay coast, downstream of the proposed mining development, are especially concerned about environmental impacts.

That’s also the area that has learned hard lessons about the mining industry from its experience with the diamond mine near Attawapiskat, he said. “We cannot simply keep going the way we have in the past,” Louttit said.

Beware dire predictions on Obama’s war on coal – by Steve Hargreaves (CNN Money – July 3, 2013)

July 3, 2013

http://money.cnn.com/

When President Obama announced steps to rein in greenhouse gases last week, the condemnation was swift and fierce.

“It is astonishing that President Obama is unilaterally imposing new regulations that will cost jobs and increase energy prices,” House Speaker John Boehner said of Obama’s plan, which would heavily target emissions from coal-fired power plants.

How steep of a cost do critics fear? Some 500,000 jobs lost and $1.65 trillion shaved off the national income by 2030 if all coal plants have to close, according to a Heritage Foundation report released the day after Obama announced his plan.
Yet there’s reason to doubt these and similarly dire predictions.

Environmental clean up is a difficult thing to measure. Early estimates on how much it would cost to clean air or water have often turned out to be way off. The debate over acid rain is a good example. In the late 1980s, the nation was considering tough new rules on coal-fired power plants and other industrial emitters to curb what was then a major problem.

The Environmental Protection Agency estimated the new rules would total $6 billion in both retrofit costs and in knock-on effects to the economy — such as higher energy prices that cause manufactures to set up shop elsewhere — according to Robert Stavins, director of the Environmental Economics Program at Harvard University.

Why the ‘War on Coal’ Campaign Will Likely Fall Flat—Again – by Coral Davenport (National Journal – July 3, 2013)

July 3, 2013

http://www.nationaljournal.com/

Within hours of President Obama’s sweeping climate speech last week, Republican campaign committees reignited the charge that the president has declared “War on Coal.” They blasted inboxes and airwaves with “War on Coal” talking points, now aimed squarely at Democrats running in Senate and House races in 2014.

The “War on Coal campaign” failed to unseat Obama in the 2012 presidential campaign. And despite the potency of the rhetorical attack, it’s unlikely to have much impact on the 2014 races.

It’s true that President Obama’s plan takes direct aim at the U.S. coal industry. At the heart of the plan are new regulations slashing carbon pollution from new and existing coal-fired power plants. It could well put thousands of coal miners out of work.

But it’s not a given that it will cost Democrats politically.

Here’s why: As National Journal reported last week, the political power of coal has fundamentally weakened, a shift laid bare by last year’s elections. Between 2008 and 2012, the coal industry nearly quadrupled its political contributions, directing 90 percent of its money towards Republicans. But Obama still won comfortably in the four key swing states that produce the most coal: Virginia, Colorado, Pennsylvania, and Ohio.

Environmental headwinds buffet BHP in Colombia – by Brian Robins (Sydney Morning Herald – July 1, 2013)

July 3, 2013

http://www.smh.com.au/

In the wake of heightened environmental sensitivities to the activities of mining companies in Latin America, BHP Billiton’s plans to expand a nickel mine in Columbia have been blocked.

Governments in the region from Chile to Argentina have forced several global mining companies to rethink mine applications in response to growing criticism over the industry’s rising incursions.

Late last week, Colombia’s environmental licensing authority, Autoridad Nacional de Licencias Ambientales, turned down a request from BHP Billiton’s Cerro Matoso nickel mine to expand the site, according to wire reports. Cerro Matoso is the second largest producer of ferro nickel globally.

The request was denied because existing environmental permits cannot be modified to enable mining projects to be expanded, the environmental authority said.

The BHP Billiton project, which has operated for many years, produced more than 47,000 tonnes of nickel last year. The mine taps a laterite nickel deposit that is used as feedstock at a ferro-nickel smelter nearby. Most nickel is used to produce stainless steel.

Local view: Investment proves merit of Northland copper mines – by Frank Ongaro (Duluth News Tribune – June 30, 2013)

July 3, 2013

http://www.duluthnewstribune.com/

Frank Ongaro is the executive director of MiningMinnesota.

Minnesota’s business climate received a significant boost recently when two of the state’s proposed copper, nickel and precious metals mining projects secured more than $50 million in long-term financing. Investors throughout the world are recognizing that the strategic metals deposits found in Northeastern Minnesota represent a world-class economic opportunity for our state.

PolyMet Mining, the developer of the Northmet Project near Hoyt Lakes, received a $20 million bridge loan from Glencore International PLC, based in Switzerland, to pay for operations while a $60 million stock offering is completed. Duluth Metals, the majority partner in the development of the Twin Metals Project

in the Babbitt/Ely area, received a $30 million investment from CEF (Capital Markets) Limited, a subsidiary of Canadian Imperial Bank of Commerce and Cheung Kong (Holdings) Ltd.

These investments provide more than important capital; they provide independent validation of the quality of the projects proposed. Smart investors will invest only in projects that are likely to succeed, and that means projects that will meet and exceed all state and federal environmental standards and regulations.

Barrick may wipe out retained earnings with huge Pascua-Lama writedown – by Peter Koven (National Post – July 3, 2013)

July 3, 2013

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

Barrick Gold Corp. is poised to wipe out all of its retained earnings for the second time in less than four years.

An anticipated writedown of US$4.5-billion to US$5.5-billion on the bungled Pascua-Lama project would eliminate the US$3.9-billion in retained profits that the gold giant reported at the end of the first quarter. Back in 2010, Barrick wiped out more than US$2.2-billion of retained earnings when it took a US$5.2-billion charge to close out its hedge book.

It is highly unusual for a company of Barrick’s size and profitability to be in this position twice in such a short time. And while these are non-cash charges, experts said they point to a troubling trend of poor decision-making and oversight at the world’s largest gold producer.

“The writedowns impact them in perception,” said George Topping, an analyst at Stifel Nicolaus.

The red ink could be a lot bigger when the company reports second quarter earnings in four weeks. Barrick warned of other possible impairments last Friday, and analyst Greg Barnes of TD Securities estimated they could total close to US$10-billion.

Ex Supreme Court justice Iacobucci in Ring of Fire talks – by Richard J. Brennan (Toronto Star – July 3, 2013)

July 3, 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.

Former Supreme Court of Canada justice Frank Iacobucci is Ontario’s lead negotiator dealing with First Nations in Ring of Fire development.

Queen’s Park has turned to veteran jurist Frank Iacobucci to be the province’s lead negotiator in Ring of Fire resource development talks with Matawa Tribal Council chiefs.

Referred to as one of most promising mineral developments in Ontario in almost a century, the resource rich Ring of Fire, 540 kilometres northeast of Thunder Bay, includes the largest North American deposit of chromite, a key ingredient used in stainless steel.

“I hope we can get an agreement . . . to have the involvement and participation of the First Nations in a fair and honourable and equitable manner,” the former Supreme Court of Canada justice told the Star after his appointment was made public Tuesday.

“This is not a quick fix and it has got to be the right fix,” he said. “This is a huge opportunity for economic development for the province, for the (mining) companies and . . . for the First Nations people.”

Province names Ring of Fire go-to guy – by Carl Clutchey (Thunder Bay Chronicle-Journal – July 3, 2013)

November 3, 2015July 3, 2013

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

One of the country’s best legal minds will sit down with a former premier and Rhodes scholar when the Ontario government and Matawa Tribal Council discuss the impacts of mining development in the Ring of Fire.

The province announced Tuesday it has appointed retired Supreme Court of Canada justice Frank Iacobucci as its Ring of Fire negotiator for talks with the Matawa group, which represents half a dozen fly-in reserves in the immediate ROF orbit.

The position follows news last month that main ROF proponent Cliffs Natural Resources has temporarily halted its work on the environmental assessment for its chromite project.

Specifically, Iacobucci is to focus on environmental protection and monitoring, planning and development, revenue sharing, and social and economic supports for First Nations as they relate to future mining in the ROF belt located 540 kilometres northeast of Thunder Bay.

The 76-year-old Iacobucci, who recently authored an unflattering report about how aboriginals are being disadvantaged by the province’s justice system, called his appointment an “honour.”

JPMorgan Turns Bullish On Commodities, Lukewarm On Gold – by Neils Christensen (Kitco News – July 2, 2013)

July 2, 2013

http://www.kitco.com/

(Kitco News) – For the first time in almost two years commodity analysts at JPMorgan have turned bullish on commodities and are now overweight the entire complex.

“In a number of commodities, prices have fallen far enough for long enough to force involuntary cuts in production and to spur fresh demand,” the bank said in the report released Sunday. “Risk is now skewed toward demand growth surprise and production disappointment.”

Although the firm’s analysts do admit that downside risks remain high, their recommendation in the report has been very clear.

“Our analysis concludes that it is in the best interests of most commodity index investors to buy immediately,” they said. “We would rather be premature in our pretend portfolio than you be late in your real portfolio.”

The firm is slightly more bullish on energy commodities particularly oil than it is in precious and base metals – the analysts said in the report that their “overweight” view is based on the energy sector, “that dominates most indices.”

New South Wales Mineral Council News Release: MASSIVE COST OF PLANNING DELAYS REVEALED:

July 2, 2013

Jobs and billions of investment gone

Monday 1 July 2013
Ref: 56-13

Click here for full report: http://www.nswmin.com.au/default.aspx?ArticleID=555

NSW will pay a high economic price including the loss of billions of dollars in mining revenue and thousands of jobs if mining projects continue to be subjected to approval delays of 12 months or more, according to new research undertaken by PricewaterhouseCoopers (PWC). The detailed economic study found that inefficiencies in the NSW Planning System resulting in mining project delays of 12 months or more impose a massive cost to NSW.

“The PWC research shows that project delays of 12 months or more would cost NSW, over the next 20 years, 29,000 jobs across the state, $10.3 billion in lost investment and $600 million a year in lost mining royalties,” NSW Minerals Council CEO Stephen Galilee said today.

“These results confirm that slowing the State’s biggest export industry in NSW has an impact felt right across the state economy. It means lost jobs, lost investment and a loss of crucial mining revenue that helps fund infrastructure and services including hospitals, police, public transport and schools,” he said.

Judge questions court’s role in SEC’s ‘conflict minerals’ rule – by Sarah N. Lynch (Reuters U.S. – July 1, 2013)

July 2, 2013

http://www.reuters.com/

WASHINGTON – (Reuters) – A federal judge on Monday questioned whether U.S. courts should intervene regarding a rule that forces public companies to disclose if their products contain minerals extracted in the Democratic Republic of Congo, which has been castigated for committing human rights abuses.

Three business trade groups are challenging the “conflict minerals” rule from the U.S. Securities and Exchange Commission, saying it is nearly impossible to track minuscule amounts of such minerals in their supply chains. They also say the rule violates companies’ free speech rights because it makes them engage in “politically charged” speech.

The rule is championed by human rights groups, which say disclosing this kind of information will help socially conscious investors. Opponents say the rule is a compliance nightmare that will cost billions and unfairly tarnish companies’ reputations by forcing them to make political statements about their products.

During roughly three hours of oral arguments, Judge Robert Wilkins of the U.S. District Court for the District of Columbia suggested to an attorney for the trade groups that federal courts should consider deferring to Congress on the matter. “This is a circumstance where a court should really defer to Congress and the executive in an area of foreign policy where the court has no expertise,” he said.

INTERVIEW-Indonesia trade minister eyes speedy end to Freeport contract talks – by Michael Taylor (Reuters India – July 2, 2013)

July 2, 2013

http://in.reuters.com/

JAKARTA, July 2 (Reuters) – A deadly tunnel collapse at Freeport McMoRan Copper and Gold’s Indonesian mine seven weeks ago should not delay contract talks with the U.S.-based firm, a member of the government negotiating team said, adding that he hoped to strike a deal as soon as possible.

Contract talks between Freeport Indonesia and the government were put on hold after a training area in a tunnel caved in on May 14, killing 28 people at the world’s No.2 copper mine in remote West Papua.

“It is tragic what happened, but Indonesia needs to be cognizant of where it needs to be going forward as an economic relevance to the world,” Trade Minister Gita Wirjawan told Reuters. “It is important for a conclusion to be reached sooner rather than later because it will reflect upon the desires of both Freeport and the Indonesian government.”

“ASAP,” said Wirjawan, when asked about the ideal time for the talks to be concluded. “I’m hopeful that there will be a meeting of minds between both sides.”

Open-pit mining at Freeport’s Grasberg mine is due to end after 2016, just five years before its current mining contract expires. Freeport estimates it will cost about $15 billion to turn the complex into a vast underground mine, an investment that only makes sense if it has a new contract with the Indonesian government beyond 2021.

Mongolia neo-Nazis announce a change of tack – pollution control – by Carlos Barria (Reuters U.S. – July 2, 2013)

July 2, 2013

http://www.reuters.com/

ULAN BATOR – (Reuters) – A Mongolian neo-Nazi group has rebranded itself as an environmentalist organization fighting pollution by foreign-owned mines, seeking legitimacy as it sends Swastika-wearing members to check mining permits.

Tsagaan Khass, or White Swastika, has only 100-plus members but it is one of several groups with names like Dayar Mongol (Whole Mongolia), Gal Undesten (Fire Nation) and Khukh Mongol (Blue Mongolia), expanding a wave of resource nationalism as foreign firms seek to exploit the mineral wealth of the vast country, landlocked between Russia and China.

From an office behind a lingerie store in the Mongolian capital, the shaven-headed, jackbooted Tsagaan Khass storm-troopers launch bizarre raids on mining projects, demanding paperwork or soil samples to be studied for contaminants.

“Before we used to work in a harsh way, like breaking down doors, but now we have changed and we use other approaches, like demonstrations,” the group’s leader, Ariunbold Altankhuum, 40, told Reuters, speaking through a translator.

On a patrol to a quarry in grasslands a dusty two-hour ride from the capital, members wore black SS-style Nazi uniforms complete with lightning flashes and replica Iron Crosses. They questioned a mine worker against the sound of machinery grinding stones about paper work, opting to return in a week when the owner had returned.