Republic of Mining

Glencore Xstrata shareholders sweep the deck clean – by Eric Reguly (Globe and Mail – May 17, 2013)

May 17, 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.

ROME — A vicious boardroom cull at Glencore Xstrata PLC, the world’s fourth-largest mining company, simultaneously ended the career of one of Britain’s most famous directors and revived the career of one of its most infamous.

At the newly formed company’s first annual general meeting, in Switzerland, a shareholder vote sent chairman Sir John Bond packing.

He was replaced on an interim basis by Tony Hayward, the deputy chairman whose career as chief executive officer of BP PLC was wrecked in 2010, when he took the fall for the disastrous Macondo oil well blowout in the Gulf of Mexico, also known as the Deepwater Horizon spill.

Sir John’s ouster was the result of his support for an extraordinarily lavish executive pay package for the senior executives of Xstrata, among them former CEO Mick Davis. The Anglo-Swiss mining company officially merged with Glencore only last week to create a mining and trading giant with a market value of £44-billion ($68.4-billion) and deep links to Canada, where it owns grain handler Viterra Inc. and nickel miner Falconbridge Ltd.

Alcoa and Alcan postpone Quebec smelter upgrades – by Sophie Cousineau (Globe and Mail – May 17, 2013)

May 17, 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.

MONTREAL — With an aluminum market weighed down by surpluses, Alcoa Inc. and Rio Tinto Alcan are postponing billions in upgrade and expansion plans to their smelters in Quebec.

While some 750 Rio Tinto Alcan employees will get to keep their jobs longer, 500 Alcoa workers will be pushed into early retirement.

Alcoa is deferring by three years the $1.2-billion modernization of its Baie-Comeau smelter. But the aluminum producer is still going ahead with plans to shut down two of the plant’s old potlines. The dismantling of those Soderberg potlines, which will take place over the next two years, will eliminate 500 positions, or about a third of the smelter’s 1,400-employee work force.

This is the second time the American producer has reviewed its plans for the upgrade of the Baie-Comeau smelter, which was built in 1957. The Pittsburgh-based company first unveiled plans to modernize the smelter in 2008, but gave the final go-ahead on Nov. 7, 2011, after securing a 25-year electricity procurement deal with the Quebec government.

For its part, Rio Tinto Alcan is also pushing back, by three years to 2019, completion of the $2.1-billion investment plan it unveiled in 2006.

‘All the facts’ support Keystone pipeline, Harper tells U.S. audience – by Joanna Slater (Globe and Mail – May 17, 2013)

May 17, 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.

Prime Minister Stephen Harper made a stark case for the Keystone XL pipeline to an influential New York audience, saying no further debate is necessary and an increasing supply of oil from Canada is inevitable.

“This absolutely needs to go ahead,” Mr. Harper said during a packed session at the Council on Foreign Relations in Manhattan. “All the facts are overwhelmingly on the side of approval.”

The only “real immediate environmental issue here,” he added, “is do we want to increase the flow of oil from Canada via pipeline or via rail.”

Mr. Harper’s trip marks a new tactic in an all-out effort by the Canadian government to counteract the project’s opponents and ensure that the pipeline moves forward. The push includes an ad campaign launched this week and rotating visits to the U.S. by a parade of cabinet ministers.

On Thursday, however, Mr. Harper did the selling himself. His destination is a stronghold of Democratic voters, some of whom oppose the Keystone project.

OMA member Vale steps up environmental community communications efforts

May 17, 2013

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.

Ontario Mining Association member Vale has recently launched a new sustainability website to share environmental information on its operations with citizens of Sudbury. The website www.valegreatersudburysustainability.com provides greater access to detailed and current information on Vale’s environmental initiatives in the Sudbury region.

The nickel producer has bumped up the level of disclosure and transparency with this website and provided the community with new channels to communicate questions, concerns and ideas to the company. This is an innovative approach to sharing information with employees, the local community and the broader public. Go ahead take a look at the site.

“Vale is committed to the long term sustainability of our operations in Sudbury, the local environment and our community,” said Angie Robson, Manager of Corporate Affairs for Vale’s Ontario Operations. “As part of that commitment, we have developed this resource for sharing information with the public about Vale’s environmental initiatives.”

The website has four main components dealing with air quality, water quality and treatment, reclamation activities and a community section. The air chapter contains information on the Clean AER (Atmospheric Emission Reduction) project and particulate control and monitoring programs.

Gold’s dichotomy: Investment demand plunges, but consumers keep buying (National Post – May 17, 2013)

May 17, 2013

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

Today’s gold market is being defined by two trends: aggressive selling by investors in North America through exchange-traded funds, and aggressive buying by consumers in Asia. But for now, the ETF investors are overwhelming everyone else.

Gold prices settled below US$1,390 an ounce on Thursday, and after five rough trading days in a row, they are approaching the lows that were reached during last month’s dramatic collapse.

Amid that turmoil, the World Gold Council (WGC) issued a report that shines a light on how rapidly investors are dumping their holdings.

The report shows that overall gold demand fell 13% in the first quarter of 2013 compared to the same period a year ago. While that is not too bad on the surface, investment demand fell an astounding 49%. Investors sold a net 176.9 tonnes of gold through ETFs in the quarter, or roughly US$9.3-billion worth of the yellow metal.

The gold market is very small, with total demand of about 1,000 tonnes per quarter, according to the council. That means fluctuations in ETF holdings can have an outsized effect on the paper price.

Can Big Oil handle the Arctic? – by Claudia Cattaneo (National Post – May 17, 2013)

May 17, 2013

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

CALGARY – With the public increasingly worried about oil spills, some aboriginal groups calling for an Arctic drilling moratorium, and the oil industry as keen as ever to tap Northern deposits, oil spill response preparedness was a big topic of discussion at the Arctic Council meeting in Sweden this week.

As Canada, which has large untapped deposits under the Beaufort Sea, assumed its chairmanship on Wednesday, the group of the eight nations that surround the North Pole signed a pact on oil spill prevention in Kiruna, Sweden’s most northern city.

Coinciding with the meeting, the London-based International Association of Oil & Gas Producers (OGP), whose member companies produce more than half of the world’s oil, was eager to talk about industry efforts to improve handling of oil spills in Arctic environments, which it says have advanced significantly in recent years.

Non-governmental organizations such as the OGP and Greenpeace requested observer status at the council but their requests were denied. The OGP, which had hoped to use the platform to engage and collaborate with those with an interest in Arctic oil-spill response, said much progress was made in the past year as a result of the establishment of a joint industry program (JIP) focusing on key areas of research.

Thunder Bay releases mining strategy to capitalize on new economy – by Ian Ross (Northern Ontario Business – May 2013)

May 17, 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.

The municipality, its economic development commission and Fort William First Nation released their mining readiness strategy to serve as their game plan to prepare the communities for the monumental economic spinoffs expected to come their way.

A 398-page document, entitled Advantage Northwest, takes a wide angle view in forecasting the opportunities and challenges coming from mining development in northwestern Ontario and the Far North Ring of Fire exploration camp.

Prepared by SNC-Lavalin and Edward Hoshizaki Development Consulting, a final draft was circulated at two public meetings in April before a final document was released at month’s end with a list of recommendations and priorities to tackle.

Among the issues addressed are the transportation and electricity shortcomings in the region, business development to service the industry, labour issues, partnerships with First Nations, future land supply for incoming companies and people, and research and development opportunities.

Mineral Exploration Tax Credit extended for another year – by Star Staff (Sudbury Star – May 17, 2013)

May 17, 2013

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

In a bid to boost mine exploration, the federal government has extended the Mineral Exploration Tax Credit for another year as part of its Economic Action Plan 2013.

Joe Oliver, Canada’s Minister of Natural Resources, confirmed the announcement Thursday, while visiting a former mine site on the Podolsky property just north of Capreol.

“Mining workers and communities across Canada can count on our government’s support of this vital engine of economic growth,” Oliver said in a release. “That is why, in our latest federal budget, we extended the Mineral Exploration Tax Credit to continue to provide junior mining companies access to the venture capital they need to finance their exploration activities.”

Oliver’s announcement was not new; the federal government, as part of Economic Action Plan 2013, said it would extend the credit until March 31, 2014.

The 15% Mineral Exploration Tax Credit helps junior mineral exploration companies raise capital by providing an incentive to investors in flow-through shares issued to finance mineral exploration.

Northern Ontario is a [political] fossil with a future – by David Robinson (Northern Ontario Business – May 2013)

May 17, 2013

Once upon a time Britain had a colony. And this unusual colony had a colony of its own. Then the colony-with-a-colony joined with other colonies and got some more colonies. And Canada was born!

That isn’t quite the history we were taught, but it is technically correct. And this version actually provides a clue about the economic future of Northern Ontario.

The colony originally called Canada was the most valuable of Britain’s North American possessions (after the Americans jumped ship). Britain was such an empire builder that even the British colonies wanted colonies. Upper Canada grabbed what we now call Northern Ontario. Then Upper Canada and Lower Canada got together to grab all the British territory east of the Rocky Mountains and south of the North Pole.

Personally, I’m happy that they did this. If they hadn’t, those nasty Americans would have gobbled most of what we now call Canada.

But Canada is coming to the end of its Colonial Era. For more than 100 years the federal government has been transferring its decision-making powers to the territories it grabbed.

Neskantaga First Nation finds hope after suicide crisis – by Jody Porter (CBC News Thunder Bay – May 17, 2013)

May 17, 2013

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

North-South Partnership helps Neskantaga youth express themselves through art

Artwork created by young people in Neskantaga First Nation will soon be on display in Toronto as part of an effort to help the community recover from a suicide crisis.

The fly-in community, located about 480 kilometres northeast of Thunder Bay, declared a state of emergency April 17 after two young men killed themselves in less than a week. “In our community it was very devastating. It still is,” said First Nation counsellor Kelvin Moonias. “The tremendous loss we had.”

Moonias said he had felt overwhelmed by the grief in the tiny First Nation, home to about 300 people, and was grateful to see a team of helpers arrive from Toronto. “After seeing first-hand what these people can do and that they truly care, it really touched my heart,” he said.

The North-South Partnership for Children sent 17 people into the community, partly in response to the crisis. The agency brings together philanthropists in southern Ontario with northern First Nations. When the southerners arrived, young people in Neskantaga asked them to help organize an art and music festival.

Meeting focused on ONTC studies, finances – by Gord Young (North Bay Nugget – May 16, 2013)

May 17, 2013

http://www.nugget.ca/

North Bay Mayor Al McDonald was upbeat Thursday as he emerged from an ONTC advisory committee meeting in Toronto involving Northern Development Minister Michael Gravelle.

It was the first meeting of the advisory group, involving Northern Ontario municipal politicians and stakeholders, since Gravelle’s announcement last week that divestment should not be the only option for the Ontario Northland Transportation Commission.

And McDonald said the meeting was in “stark contrast” to those that previously took place with former Northern Development Minister Rick Bartolucci. “It was a great meeting,” he said, unable to disclose specific details because the group is working under an agreement of confidentiality.

McDonald, however, was able to say that much of the meeting focused on studies and financial information regarding the Crown agency. And he said the conversation during the last portion of the three-hour meeting centred on divestment not being the only option.

He said the entire group is working in the same direction and wants what’s best for Northern Ontario. McDonald said the group also recognizes that time is of the essence and “something needs to be done quickly.”

NEWS RELEASE: PRODUCTION COMMENCES AT BRACEMAC-MCLEOD [Matagami, Quebec]

May 17, 2013

May 16, 2013, Montreal, Québec: Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. (“Donner” or the “Company”) (TSXV-DON), is pleased to report that production at the anticipated average rate of 3,000 tonnes per day commenced on May 15 at the Bracemac-McLeod Mine located near Matagami, Québec. Donner’s partner and operator, Glencore Xstrata plc (“Glencore Xstrata”), is now processing copper and zinc ore from the new mine following the depletion of ore at their Perseverance Mine.

The Bracemac-McLeod Mine is a 65% Glencore Xstrata, 35% Donner joint venture. As operator, Glencore Xstrata is responsible for the execution of all development, production, processing, milling, smelting and refining activities related to the Bracemac-McLeod Mine, as well as the exploration programs conducted on the Matagami Project.

SUPPLEMENTARY INFORMATION

Discovered in 2007 by the Donner and Glencore Xstrata team, the Bracemac-McLeod mine represents a $159 million investment. It is the 12th zinc mine in the Matagami camp. Matagami operations contribute significantly to Québec’s economic development by employing 260 people, directly injecting $27 million into the economy through wages. In addition, the operations create hundreds more indirect jobs via $13.5 million in annual goods and services procurement through 23 mostly Québec-based companies.

NEWS RELEASE: Harper Government Reaffirms its Commitment to the Mining Sector

May 16, 2013

Natural Resources Canada

May 16, 2013 11:12 ET

SUDBURY, ONTARIO–(Marketwired – May 16, 2013) – The Honourable Joe Oliver, Canada’s Minister of Natural Resources, today highlighted the extension of the Mineral Exploration Tax Credit for an additional year under Economic Action Plan 2013 while visiting a former mine site on the Podolsky Property.

“Mining workers and communities across Canada can count on our Government’s support of this vital engine of economic growth,” said Minister Oliver. “That is why, in our latest federal budget, we extended the Mineral Exploration Tax Credit to continue to provide junior mining companies access to the venture capital they need to finance their exploration activities.”

With more than 200 active mines in Canada producing more than 60 different metals and minerals, the sector is a key economic driver in dozens of rural, remote and Aboriginal communities across the country.

“Mining continues to be a cornerstone of the Canadian economy, providing employment and benefits to communities across the country,” added Minister Oliver. “Mining is directly responsible for 330,000 Canadian jobs. These are first-rate jobs in a growing global industry.”

Rio Tinto reports at [Eagle] mine forum – by Stephen Anderson ([Michigan] Daily Mining Gazette – May 16, 2013)

May 16, 2013

http://www.mininggazette.com/

L’ANSE – Rio Tinto representatives provided an update on the Eagle Mine, collected live electronic survey results through a community scorecard and fielded an array of questions and comments during a mining forum Wednesday night at the L’Anse American Legion Post 144.

Mine update

Matt Johnson, manager of external relations at Rio Tinto Eagle, gave a brief historical recap of the mine, starting with explorations dating back to the 1950s, the discovery of the ore body in 2002, the permit application and finalization in 2008 and 2010, respectively, and the start of underground drilling in 2011.

“We do have a goal of being in production in 2014,” he said. “A few months ago we announced a moderated schedule, so we pushed our schedule back. (Work on the Humboldt Mill) has been postponed for the time being.”

Production was originally slated to start in early 2014; now it’ll likely be toward the end of that year, but that’s not the only reason the life of the mine will extend farther.

Strateco books $87m impairment as Quebec uranium project stalls – by Henry Lazenby (May 15, 2013)

May 16, 2013

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

TORONTO (miningweekly.com) – Quebec-based Strateco Resources has booked a $87-million impairment charge during the first three months of the year, as its flagship Matoush uranium project lays in limbo following the province’s March moratorium on uranium exploration and mining.

This follows the decision by Quebec Environment Minister Yves-François Blanchet not to issue the certificate of authorisation for the Matoush uranium project, located east of James Bay in a First Nation reserve, until the relevant public hearings committee, the Bureau d’audiences publiques sur l’environnement, better known as BAPE, had submitted its report on the province’s uranium industry.

As at December 31, Boucherville-based Strateco had invested more than $123-million in moving the Matoush project up the value curve.

Strateco charged it was obliged to impair its Quebec uranium properties, deferred exploration and evaluation expenditures and fixed assets associated with the project, owing to its inability to proceed with the underground exploration programme, the absence of significant exploration and evaluation expenditures planned for the year and the overall uncertainty surrounding Quebec’s uranium industry.