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Despite challenges, mining on track to invest $50B [in Saskatchewan] – by Bruce Johnstone (Regina Leader-Post – May 29, 2013)

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

Demand for food, energy to increase

Despite the postponement of several multibillion-dollar projects, the head of the Saskatchewan Mining Association is confidently holding to his prediction that the industry will invest $50 billion in the province between 2008 and 2028.

“The outlook for the mining market and sector in 2013 remains strong, if mining companies are strategic in their actions,” Steve Fortney, president of the SMA, told a news conference Monday to launch Mining Week in Saskatchewan. “We need to remain aware of the challenges the industry faces, including increased project and operational costs that are not supported by commodity prices, and a tight labour market.”

Fortney, who is senior director of technical projects for PotashCorp in Saskatoon, was referring to recent announcements by mining companies to delay or cancel major capital projects due to softening commodity prices, a weakening global economy and competition for resources.

Earlier this month, Mosaic announced it was delaying, for up to two years, a couple of expansion projects in Saskatchewan, which would have added another two million tonnes of potash production at a cost of $2 billion.

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AFRICA INVESTMENT-South Africa labour strife creating vicious cycle – by Ed Stoddard (Reuters India – May 29, 2013)

http://in.reuters.com/

JOHANNESBURG – May 29 (Reuters) – Labour unrest in South Africa’s mines, which threatens to spread to bigger sectors like manufacturing, is plunging the economy into a vicious cycle that may spiral into stagflation, disinvestment and more social upheaval.

South Africa’s rand has lost 16 percent against the dollar so far in 2013 and hit new four-year lows this week, with mining worries triggering the latest sell-off – which picked up pace on Tuesday when data showed growth in Africa’s top economy slowed to a snail’s pace as manufacturing output shrank.

All of this is spooking investors and sowing the seeds of more social discontent, as data shows a strong correlation between the rand’s performance against the dollar and inflation, with a time-lag of nine months.

Inflation is currently just under six percent and will accelerate, with the biggest exchange-rate impact likely on food and fuel prices, which will hit working-class households hard.

But the full impact of the rand’s current weakness will only be fully felt nine months hence, after the next round of wage agreements in mining and other sectors have been hammered out.

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Shabangu announces gold, platinum rescue plan – by Idéle Esterhuizen (MiningWeekly.com – May 28, 2013)

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

JOHANNESBURG (miningweekly.com) – Mineral Resources Minister Susan Shabangu on Tuesday announced that her department would develop a rescue plan, aimed at placing South Africa’s wrecked platinum and gold sectors on a recovery path.

Delivering her department’s R1.39-billion Budget Vote in the National Assembly, she said Department of Mineral Resources (DMR) officials had been instructed to “urgently” look at a rescue plan for the gold and platinum sectors, focusing on supply- and demand-side interventions.

“The platinum and gold sectors, which are among the largest sectors of our mining industry in terms of employment, investment and revenue generation, are negatively affected by the persistent global economic environment, which has an adverse bearing on their long-term viability,” the Minister said.

Shabangu stated that South Africa’s recently concluded bilateral agreement with Russia, under which the countries agreed to cooperate on platinum group metals (PGMs) initiatives, would contribute to the creation of a suite of interventions necessary to stabilise the platinum industry.

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OMA NEWS RELEASE: Gold is much more than a medium for jewelry and money

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.

Yes, there is no denying the gold price has taken a beating lately. However, by the pure share of news it receives, there is ample evidence to show that this commodity still mesmerizes mankind. The earliest gold jewelry dates back 6,000 years. By 325 BC, the ancient Greeks were mining gold from all ends of the Mediterranean Sea. Gold fever has sent men on treks around the world to “moil for gold.” In Canada, would we have Robert Service and Pierre Berton as renowned authors if not for this precious metal?

In recent years, gold has been the target of more than 50% of global mineral exploration budgets – in excess of $9 billion was aimed at gold targets in 2011 and more than $10 billion in 2012. Closer to home, in Ontario in 2011, more than 50,600 kilograms of gold were produced with a value of about $2.5 billion. Gold has a historic monetary role. It is used as currency; it backs up currencies and people invest in it with the hopes of making more money.

Jewelry stores and vaults of central banks, financial institutions and investors show that the biggest uses for gold are as items of adornment and for monetary purposes such as coins and bars. While the use of this precious metal, which is number 79 on the periodic table, goes back thousands of years, gold is a metal that because of its valuable properties and characteristics is a metal for the future.

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(Mining Movie) Dead Mine: Hunting Yamashita’s treasure – by Niken Prathivi (Jakarta Post – January 20 2013)

 

http://www.thejakartapost.com/

Four mercenaries escort a group of treasure hunters into an abandoned bunker deep in the jungles of Sulawesi, Indonesia.

Yamashita’s Gold, a legendary hoard of war loot that was stolen in Southeast Asia by Japanese forces during World War II, is a popular topic among ambitious treasure hunters. The treasure was named after Japanese general Tomoyuki Yamashita.

A pushy rich man, Warren Price (Les Loveday), seeks the treasure and sponsors the dangerous voyage. He comes to the island under the protection of mercenaries Capt. Tino Prawa (Ario Bayu), Ario Nando (Mike Lewis), Djoko (Joe Taslim) and Sgt. Papa Ular (Jaitov Tigor).

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Little respite for gold – yet – by Lawrence Williams (Mineweb.com – May 29, 2013)

http://www.mineweb.com/mineweb/

Gold seems rangebound between $1350 and $1400 with no real signs of a breakout up or down, but recent developments in the physical markets may suggest a change ahead.

LONDON (MINEWEB) – Those looking for a sharp upwards reversal in the gold price given the continuing high levels of demand for physical metal, principally from the East and Middle East have so far been disappointed with the yellow metal struggling to retake the $1400 level, so far unsuccessfully. Price setting seems to be remaining well in the hands of North American markets where all that seems to be seen is the continuing offloading of inventory from the big gold ETFs in the light of artificially high stock markets, boosted by siren songs from the politicians and bankers and ever-continuing Quantitative Easing.

There is certainly a degree of continuing nervousness in the precious metals markets with many commentators predicting further falls in gold and silver ahead. What may, however, reverse the trend could be the figures for Chinese gold imports from Hong Kong for April as these may prove to be absolutely enormous.

While purchasing from the Asian markets has steadied a little now, after April’s mega rush, eastern demand mostly remains strong, although that in India has slowed somewhat as the government turns the screws on gold traders, and the farming community – responsible for much of that country’s gold purchasing and hoarding – is now in crop planting mode which tends to reduce demand at this time of year.

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Big Event draws big names in mining – by Benjamin Aubé (Timmins Daily Press – May 29, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Everything’s bigger in Timmins. OK, maybe that’s not exactly how the saying goes. But for this week anyway, it rings true.

True to its name, The Big Event, being held this weekend at the McIntyre Community Centre, has grown to become Canada’s largest annual mining expo.

“It’s a big deal,” said Mark Utting, Lake Shore Gold’s vice-president of investor relations, as the McIntyre Ballroom began to fill up prior to the opening banquet on Tuesday evening. “It started about five years ago around the centennial celebration for the city. It’s great, and this room will be packed. It’s been packed every year.”

Utting was just one of the guest speakers representing some of the more exciting gold mining projects in the region. “It puts a very bright light on the community for a few days,” said Utting. “People outside of Timmins know about it, and it’s just become part of the city.

“I go literally around the world meeting investors and stuff. The first time I ever went to Switzerland, I brought a map to show where Timmins is. They all know where Timmins is. It’s one of the best-known gold camps in the world. It has that reputation anyways, but to have a show like this just puts an exclamation point on it.”

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Good reasons to celebrate mining – by Wayne Snider (Timmins Daily Press – May 29, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – This is a week of celebration in Timmins. No, there hasn’t been a new stat holiday added to the calendar. But there are plenty of reasons for Northerners to show pride.

The Big Event Mining Expo takes over the McIntyre Community Centre and will be the highlight of Mining Week in Timmins.

While cosmopolitan urbanites in southern Ontario may scoff, there are plenty of reasons for the mining community to blow its own horn. While other economic sectors have struggled in recent years, the mining industry has been growing by leaps and bounds.

Consider the follow data provided by the Ontario Mining Association:

• In 2011, mining was a $10.7-billion industry in Ontario, up from $5.9 billion in 2002, representing growth of 80%.

• In 2011, there were more than 330 companies actively exploring minerals in Ontario, spending an estimated $5.4 billion.

• The sector is a big plus for exporting. About 72% of Ontario mining customers are located outside the province. Conversely, the sector is great for local suppliers. An estimated 74% of Ontario’s mine suppliers are based in the province.

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Sudbury: Masters of the Underground – by David Robinson (Mining Solutions Journal – June 2013)

Dr. David Robinson is an economist at Laurentian University in Sudbury, Canada. His column is from Sudbury Mining Solutions Journal a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury.  drobinson@laurentian.ca

Management consultants quote Sun Tsu’s Art of War when they want to emphasize strategy and creative thinking. I plan to quote Wayne Gretzky about an idea that I think mining supply firms should be pushing.

Dr. Dougal McCreath has over 35 years of experience worldwide, teaching, consulting, doing research and managing projects. He is also the author of more than 50 technical publications, primarily in the field of rock engineering. Dougal’s crazy ideas are better than most people’s best work. This one isn’t crazy – it’s more like a very sneaky chess move.

Dougal wants to build an underground building. That’s not new, of course. The Gjøvik (pronounced Djuhveek) Olympic Cavern Hall, for example, seats 5,500 ice hockey fans under a mountain in Norway. Built for the 1994 Winter Olympics in Norway, it is still the world’s largest underground cavern for public use. The arena was more expensive to build than a surface structure, but as the assistant manager of the project said: “There are no windows to wash or fix, no outside walls to paint, no roof to repair and it costs about half as much to heat as a regular building.” There are a lot of underground sports and recreational halls in Norway, where they double as civil defense shelters.

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[Saskatchewan] Uranium mine industry under scrutiny – by Shinoah Young (Regina Leader-Post – May 28, 2013)

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

Northerners are in dire need for further education and training when it comes to Saskatchewan’s economic “boom.”

A recent report called the Community Vitality Montoring Partnership Process (CVMPP) suggested that “uranium mining companies should target some education efforts and donations to invest in early childhood development” in northern Saskatchewan. The recent CVMPP report was suggested by northern leaders and put together by InterGroup Consultants Ltd., a company based in Winnipeg.

Thursday at the University of Regina, Thomas Sierzycki, mayor of La Ronge, presented the report regarding the socio-economic impacts of uranium mining in Saskatchewan.

Sierzycki said there needs to be more training and education towards the higher, non-entry level positions in order for northerners to fully benefit from the uranium mining industry.

“The number of people who have higher levels of education has increased (and) the number of people who have long-term, full-time employment have increased. Although because the population has grown so quickly, the proportion hasn’t necessarily (matched) with education,” said Erin Jonasson, a research consultant for InterGroup.

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Kenya to form a mining corporation, says Balala – by Mwaniki Wahome ([Kenya]Daily Nation – May 26, 2013)

http://www.nation.co.ke/-/1148/1148/-/xvvu7uz/-/index.html

A national mining corporation will be formed to act as the investment arm of the government where joint venture with the private investors is involved. This is one of the recommendations in the envisaged mining Bill that is meant to spur growth in the industry.

This was disclosed as stakeholders got closer to striking a deal on contentious issues related to sharing the income realised from mining activities in the country.

Mining Cabinet Secretary, Mr Najib Balala, said after getting Cabinet approval, the public and other stakeholders’ views will be included before the proposed law is taken to Parliament for debate and adoption.

“The national mining corporation is a strategic vehicle through which the government will invest in the mining industry with the private sector,” said Mr Balala. An earlier recommendation was to form a mining authority, but the idea was shelved after it was found that it would not facilitate the commercial interests of the country in the mining industry.

Experts have faulted the current Mining Act, that was put in place by the British colonial regime for being rigid, hence stifling mineral exploration and, at the same time, failing to spell out how benefits of such wealth are to be shared especially with the communities where the resources are found.

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REFILE-Glencore says Iran metals swap deals did not violate sanctions – by Louis Charbonneau (Reuters U.S. – May 24, 2013)

http://www.reuters.com/

UNITED NATIONS, May 23 (Reuters) – Swiss-based commodities giant Glencore Xstrata said on Thursday that it had done nothing wrong when it engaged in metal swaps with Iran, rejecting a suggestion by U.N. experts that such bartering could have been a way of evading sanctions against Tehran over its nuclear program.

A confidential U.N. Panel of Experts report seen by Reuters on Wednesday said alumina-for-aluminum swap deals with Iran by Switzerland-based commodities giants Glencore Xstrata and Trafigura could have been a way to bypass international sanctions.

A Glencore spokesman said the company broke no regulations and did not violate the sanctions. Trafigura did not immediately respond to Reuters’ request for comment.

Reuters reported on March 1 that Glencore had supplied thousands of tons of alumina to an Iranian firm that has provided aluminum to Iran’s nuclear program. Afterward, Trafigura acknowledged it had also traded with the same Iranian firm.

Glencore has confirmed the deals with Iran but insisted it had no knowledge that the company it was supplying alumina to – the Iranian Aluminum Company (Iralco) – was in turn providing aluminum metal to Iran Centrifuge Technology Co (TESA), which the European Union sanctioned in December 2012.

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Questions Remain in HD Mining Case – by Jeremy J. Nuttall (The Tyee – May 24, 2013)

http://thetyee.ca/

Key evidence was struck from the record in federal court, say unions. Earlier this week, a federal court justice dismissed an attempt by two British Columbia unions to have temporary foreign worker permits for 201 miners revoked.

The Construction and Specialized Workers Union and the International Union of Operating Engineers Local 115 launched their case after it came to light the company, HD Mining, had advertised mining positions listing Mandarin as a job requirement.

The unions contended the language requirement was meant to exclude Canadians so the company could bring workers from China and legally pay them 15 per cent less than market wages at its Murray River project near Tumbler Ridge, B.C.

After a months-long court battle Judge Russel Zinn ruled Tuesday HD Mining filed its applications properly according to the rules that were in place at the time.

But the unions said they lost because Zinn struck from the record key evidence that would have helped their case and, in their view, showed the company misrepresented its mining plans in the form of a notice of work application.

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Africa could still benefit from resources boom – by Geoff Candy (Mineweb.com – May 28, 2013)

http://www.mineweb.com/

According to the African Economic Outlook 2013, while Africa failed to capitalise on the resource boom of the last decade, there still remains hope for growth.

GRONINGEN (MINEWEB) – While Africa failed to capitalise significantly on the resources boom of the last decade, there remains hope that agricultural, mining and energy resources could boost the continent’s economic growth in the future, says the African Economic Outlook 2013.

According to the report, produced annually by the African Development Bank,the OECD Development Centre, the Economic Commission for Africa (ECA) and the UN Development Programme (UNDP). “What has been holding back Africa is not the large share of its primary sector in itself, but the poor performance of this sector.”

That is not to say the continent has not benefitted at all from the boom in resource prices seen over the last ten years, indeed according to the report, Africa’s GDP grew by 64% between 2000 and 2011, of which, 35% was accounted for by natural resources – primarily fuelled by a tripling of prices for metals and fuels.

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Editorial: Clash of the Titans [Glencore-Xstrata] – by John Cumming (Northern Miner – May 22, 2013)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists. jcumming@northernminer.com

Canadians trying to make sense of what’s going on in the upper echelons of the newly merged Glencore Xstrata are getting a feel of what it must have been like to be an ancient Greek peasant looking up at his distant panoply of far-from-perfect gods, with all their petty battles, betrayals and all-too-human schemes, and with Mount Olympus as a proto-version of a head office in Switzerland.

Initially pitched as a merger of equals, Glencore’s takeover of Xstrata was completed on May 2 after 15 months and five delays. A pivotal moment was the demand last June by Xstrata shareholders, led by Qatar’s sovereign wealth fund, for a higher acquisition price.

In a judo-like move of redirecting an attacker’s energy against himself, Glencore used that monetary concession to win greater management control over the merged entity, culminating in a November shareholder vote that quashed lavish retention bonuses totalling £140 million that were to have been paid to 70 remaining Xstrata personnel, and forced Xstrata chairman John Bond’s dramatic resignation.

The final deal stands as the largest takeover or merger in mining history and the fifth-largest ever in the broader resources sector, after the megamergers in the oil patch in the 1990s and early 2000s that saw the coming together of Exxon and Mobil, BP and Amoco, Chevron and Texaco, and Total and Elf.

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