Excerpt from “The History of Mining: The events, technology and people involved in the industry that forged the modern world” – by Michael Coulson

To order a copy of The History of Mining please click here: http://www.harriman-house.com/products/books/23161/business/Michael-Coulson/The-History-of-Mining/

OPENING UP THE PILBARA (Australian Iron Ore Region)

The 1960s saw a huge iron ore development programme in Western Australia, the largest mines being in the Pilbara. Apart from Tom Price, major new mines developed there in the 1960s included Mount Newman (Amax, BHP, Colonial Sugar, Selection Trust), Mount Goldsworthy (Consolidated Gold Fields, Cyprus Mines, Utah Development) and Robe River (Cleveland Cliffs).
One of the key issues that had to be addressed in terms of opening up the Pilbara was transport.

The problem that first exercised Hancock and the international miners drawn to the Pilbara was how these fabulous riches were to be transported to market. The potential size of the deposits meant that the majority of the customers for the ore would come from overseas, with Japan being the obvious first port of call. The steel industry in Australia itself, dominated by BHP, was well served by the traditional supplies coming to it from South Australia where expansion was underway in the 1960s.

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Energetic questions – Thunder Bay Chronicle-Journal Editorial (February 15, 2013)

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

IN a world beset by economic challenges, Canada enjoys two advantages. Already ahead of many other countries in terms of recovery (albeit one that does not always share its wealth equally) Canada is poised to embark on a major resources boom.
In Alberta, the oilsands could quench the energy thirst of millions of people as economic recoveries look to be fuelled. In Northwestern Ontario, a remarkable series of mineral discoveries are relished globally for construction and consumer products.

However, both developments are beset by environmental pitfalls.

Beyond the question of more fossil fuel to be burned, adding to global warming, is the matter of moving Alberta’s new oil to market. The United States is poised to reconsider a plan to build a pipeline to carry the crude oil to Texas refineries amid a growing chorus of opposition in both countries.

A second round of opposition involves plans for a pipeline to ship Alberta oil to a port in British Columbia where critics point to danger to oil tankers in the port’s tricky waterway. Spills are always a potential pipeline side effect.
If neither of these challenges can be overcome, Canada stands to lose billions in potential revenue and see the United States and China drain away as customers.

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Mid-sized Canadian manufacturing, up in smoke – by Jeffrey Simpson (Globe and Mail – February 15, 2013)

The 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.

Germany has lots of them, firms manufacturing products that get exported all over the world. These firms create domestic jobs, generate big exports, anchor communities. They are the spine of the German economy.

These companies exist in Canada, too, but there are fewer of them, even relative to the size of the economies of Canada and Germany. Their number in Canada is shrinking. Their disappearance is part of the ongoing drama of manufacturing across the Canadian economy.

In 2000, Canada had the world’s ninth-biggest manufacturing economy; in 2010, it was ranked 15th. Manufacturing tends to produce high-paying jobs, innovation and even some research. Hollow out manufacturing and the economy suffers.

The hollowing has been pronounced in recent years in the mid-sized business sector. An intriguing report from the Business Development Bank of Canada (BDC) tried to figure out how mid-sized business – defined as firms with 100 to 499 employees – were doing.

From 2006 to 2010, the BDC found, “the number of Canadian mid-sized firms decreased by 17 per cent (from 9,370 to 7,814).” Manufacturing suffered the biggest losses: From 2001 to 2010, more than half of the mid-sized manufacturing firms disappeared (the number falling from 2,807 to 1,381).

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Rio Tinto posts annual loss; new CEO vows to cut costs – by Sonali Paul (Reuters.com – February 14, 2013)

http://uk.reuters.com/

MELBOURNE (Reuters) – Rio Tinto’s (RIO.L) new chief flagged he would slash costs, focus on selling weak assets, and spend capital more carefully after the world’s no.3 miner reported a $3 billion loss, its first ever full-year loss.

Chief Executive Sam Walsh was anointed last month when his predecessor was sacked for misjudged aluminium and coal acquisitions that led to $14.4 billion in writedowns and left the company in the red.

“We can do better and I will improve this great company further,” Walsh told reporters, saying he would take a more aggressive approach to selling assets that no longer fitted with the company’s goals.

Rio reported a 47 percent plunge in half-year underlying profit, its worst since 2009 due to sharp falls in commodity prices, although the result was slightly better than expected and the company raised its dividend more than expected.

Underlying profit, which excludes writedowns, fell to $4.149 billion for July-December 2012 from $7.768 billion a year earlier, based on Reuters calculations. Analysts on average had forecast a half-year underlying profit of $3.93 billion. Investors were generally upbeat about the result.

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Second Debeers road blockade ongoing – by Rick Garrick (Wawatay News – Feburary 13, 2013)

http://wawataynews.ca/

The DeBeers winter road has been blocked twice over the past week, an ongoing blockade that began on Feb. 10 and another from Feb. 4-6. The first blockade was over employment rates among community members and the use of Attawapiskat’s traditional territory, while the second blockade was over a lack of compensation for the mine’s impacts to traplines.

“It’s the same issue as with (the first blockade),” said Danny Metatawabin, Attawapiskat’s impact benefit agreement coordinator, about the second blockade. “They have a trapline there along with the other family.”

Metatawabin said the issues would be sorted out at a Feb. 11 meeting with DeBeers representatives. “The mine manager is on his way tonight, so hopefully we’ll sort it out by tonight,” Metatawabin said on Feb. 11. “As per the agreement, the membership was supposed to have been informed that we we’re not supposed to be doing any blockades.”

Metatawabin said the blockades prevented the delivery of fuel to the DeBeers Victor mine. “It’s been mostly a mixed reaction (to the blockades)” Metatawabin said. “Had the community fully supported the blockade, I think we would have more people over there, but right now there’s just a skeleton number of people over there.”

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Thunder Bay mining suppliers encouraged to grow west – CBC News Thunder Bay (February 13, 2013)

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

Experts from Alberta oil sands and Saskatchewan mining sectors speak to Thunder Bay mining suppliers

Western Canada still needs skilled labour and technologies, and northern Ontario has a lot to offer, according to speakers at an economic development workshop held in Thunder Bay Wednesday.

The event, hosted by the Ministry of Northern Development and Mines and Thunder Bay’s Community Economic Development Commission, focused on ways local mining businesses could cash in on mining and oil sands development.

A spokesperson for the Ontario Ministry of Economic Development and Innovation said Alberta remains a province with huge potential. “There is a lot of new projects that that have been announced,” Steve Matheson said.

“Unfortunately there have been a few that been placed on hold. We believe the longer term opportunity for Ontario suppliers is there to partner with local suppliers.”

‘Work that is real’

Matheson said Ontario has the capacity to supply both Alberta and the mining needs of northwestern Ontario, which was good news for many of the workshop participants who hail from the mining supply sector.

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OPG considering biomass option for Thunder Bay plant – CBC News Thunder Bay (February 13, 2013)

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

Thunder Bay Generating Station may operate beyond 2014, manager says

Ontario Power Generation says it’s taking a closer look at whether the Mission Island Generating Station could be converted to burn biomass. Last year, the utility suspended work on converting the Thunder Bay plant from coal to natural gas. The province will stop using coal-fired plants next year.

The plant manager for Ontario Power Generation’s Northwest Thermal, which runs the plants in Thunder Bay and Atikokan, said they are looking at other options.

“I remain optimistic that [the] Thunder Bay [Generating Station] will be operational beyond 2014,” Chris Fralick said.

“I don’t know in what form. There’s a lot of uncertainty still that needs to be sorted out. There’s a lot of discussions that still need to be had. There’s going to be a need for power, and there’s going to be a need for the Thunder Bay [Generating Station].”

OPG formally announced it was suspending the coal-to-gas conversion in Thunder Bay in November. At that time, the power workers’ union suggested biomass conversion as a possible alternative — something the OPG will consider.

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Gravelle wants dialogue – by Gord Young (North Bay Nugget – February 13, 2013)

http://www.nugget.ca/

NORTH BAY – Northern Development Minister Michael Gravelle ruled out any dramatic change of course Wednesday in the divestment of the Ontario Northland Transportation Commission.

“I think it’s fair to say that the ONTC divestment process will be continuing . . . in a way that makes sense. And I think we feel there needs to be significant community input into that process,” said Gravelle, the longtime MPP for Thunder Bay-Superior North, who was given a cabinet seat earlier this week in Premier Kathleen Wynne’s government.

Gravelle, formally Minister of Natural Resources was re-appointed by Wynne Monday to the Northern Development and Mines portfolio – a position he held for four years after he was appointed to cabinet for the first time in 2007.

Only about 48 hours into the job, Gravelle said in a telephone interview Wednesday he wants dialogue and is trying not to draw any lines in the sand when it comes to the issue of divestment. But Gravelle also indicated he doesn’t want to pretend there’s going to be a dramatic shift in direction.

“I think there is a real legitimacy to the decision for the divestment process to take place. It’s a question of how it’s done, in a fashion that still takes advantage of the economic opportunities of the ONTC,” he said, noting the ONTC is among a number of issues he plans on discussing with municipalities.

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Canadian native protesters block road to De Beers mine – Reuters (MiningWeekly.com – February 13, 2013)

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

TORONTO – Native protesters have blocked the winter access road to De Beers’ Victor mine in Northern Canada for the second time in less than two weeks, raising concerns over supplying the diamond project before the spring thaw makes the site inaccessible except by air, the company said on Wednesday.

De Beers, a subsidiary of Anglo American, has a window of about 45 days to complete its winter transportation programme on the ice road. The company’s trucks have so far faced disruptions on eight of 12 days since the programme was launched.

De Beers Canada has notified the protesters and the local community of a potential legal action in an effort to regain control of the transport corridor for fuel, machinery and other large supplies, spokesperson Tom Ormsby told Reuters.

“We need action at this point to get the road open, that’s our priority,” said Ormsby. “There will be economic consequences for all involved if we cannot successfully complete this programme, and it impacts the operation of the mine.”

The most recent barricade was set up on Sunday by a small group of protesters who are demanding the company provide compensation for the loss of traditional trap line territory.

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Still stuck on the side of the road – junior financing – by Kip Keen (Mineweb.com – February 12, 2013)

http://www.mineweb.com/

Junior financing is still hard to come by with the latest anecdotal evidence suggesting even air travel is hard for some juniors to cover.

HALIFAX, NS (MINEWEB) – Thumbs out, but no free rides a comin’. On the road to financing there still appears to be no major respite in view for a swath of juniors that are looking for cash and need it now more than ever to support bonafide exploration programs.

The latest statistics via Oreninc and Canaccord Genuity point to anemic financing levels that the latter suggests are barely able to sustain basic junior needs to pay salaries, administrative and listing costs, never mind actual exploration. Indeed, it would appear some juniors may even be rethinking travel commitments as bank accounts wither.

In its Junior Mining Weekly report, dated last Friday, February 8, Canaccord couched a dour assessment of the junior financing market in lacklustre statistics from the recent resource conferences in Vancouver. Canaccord noted attendance was slightly down at AME BC’s Roundup, by five percent, and 20 percent off at Cambridge House’s resource investment conference.

Worse, Canaccord reported that some juniors appear to have decided not to attend at the last minute, despite having a spot reserved.

“This year, anecdotal evidence suggested that some had registered and paid the fees for the Cambridge House conference, but in the end did not attend as they couldn’t afford to pay the travel expenses,” Canaccord stated.

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NEWS RELEASE: Darnley Bay Appoints Project Manager

TORONTO, ONTARIO–(Marketwire – Feb. 13, 2013) – Darnley Bay Resources Limited (TSX VENTURE:DBL) (the “Company” or “Darnley Bay”) is pleased to announce that it has appointed Jacquelin Gauthier, P. Eng, as project manager for the Darnley Bay project in the Northwest Territories. Mr. Gauthier’s duties will initially involve a detailed review of past exploration data in order to select drill targets, determining the best drilling methods, budgeting and permitting. Subject to financing, Mr. Gauthier will eventually manage the next drilling on the property.

Mr. Gauthier is a geologist who brings more than 30 years of strong managerial experience to the company. He spent six years, until 2009, as Exploration Manager for Bema Gold Corp., and later Kinross Gold Corp. in the Magadan Oblast in the far east of Russia. Previous to that, he held senior exploration positions with a wide variety of companies including Noranda Exploration Inc., Sullivan Mining Group and Cambior Inc.

The Darnley Bay property hosts North America’s largest isolated gravity anomaly which has been favourably compared by the Geological Survey of Canada (the “GSC”) to other prominent gravity anomalies such as those at the prolific mining camps of Noril’sk in Russia and Sudbury Basin in Ontario. It is located near Paulatuk, Northwest Territories on the Arctic Coast.

The Darnley Bay anomaly is larger and stronger than any of these comparatives by a wide margin, measuring 100 kilometres long north to south and about 80 kilometres wide. The GSC discovered the anomaly in 1969 and its source has never been explained. The Company has 100% control of its exploration and potential development subject to certain back-in and other rights of the Inuvialuit Regional Corporation on whose land it occurs.

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Kinross takes $3.2-billion hit on African mines – by Pav Jordan (Globe and Mail – February 14, 2013)

The 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.

Kinross Gold Corp. is taking another massive charge on its African operations, slashing the value of its flagship growth properties to a fraction of the $7.1-billion it paid to acquire them just two years ago.

The Toronto-based miner said on Wednesday it would take an impairment charge of $3.206-billion (U.S.) on 2012 earnings, most of it attributable to the Tasiast project in Mauritania amid soaring capital and operating costs that have hit the entire mining industry.

That comes on top of a $2.49-billion charge on the assets a year ago. Altogether, Kinross has now cut nearly 80 per cent of the value of its takeover of Red Back Mining in 2011, which included Tasiast and Chirano, another mine in West Africa.

“It’s pretty darn sad that a company can be that wrong on an acquisition,” said George Topping, an analyst with Stifel Nicolaus in Toronto. “I think they’re pretty much telling you that they think it [the acquisition] is worth $1.5-billion, between Tasiast and Chirano, the two mines that they bought.”

Tasiast represents the company’s key growth driver.

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Expect Cabinet shuffle and election agenda as Harper gets set to switch back into constant campaign mode [resource politics] – by John Ivison (National Post – February 14, 2013)

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

Politics is set to make a comeback in Ottawa this summer, with a Cabinet shuffle, followed in the fall by a prorogation of Parliament, a Throne Speech and a brand new pre-election agenda from the Conservative Party.

In minority government, the Tories knew they could be 36 days from an election at any given time. “Every single day was spent deciding which message to drive,” said one former senior Conservative insider. “Majority government is a different mode of operating – it is an opportunity to govern.”

Stephen Harper has spent the past two years focused on implementing his agenda – striking a free trade deal with Europe, reforming the public service, overhauling immigration, ensuring the sustainability of long-term programs like health transfers and Old Age Security and streamlining the review process for big resource projects.

But at some point he will switch back into constant campaign mode and all the signs suggest the reset button will be hit this summer.

Mr. Harper all but committed to a mid-term Cabinet shuffle on a radio show last summer and sources around Ottawa suggest Jim Flaherty, the Finance Minister, might be gone “sooner rather than later.”

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U.S. ambassador warns Ottawa to heed Obama on energy – by Campbell Clark (Globe and Mail – February 14, 2013)

The 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.

Canadian progress on combatting greenhouse-gas emissions would sway American views on Alberta’s oil, U.S. Ambassador to Canada David Jacobson says.

In his State of the Union address on Tuesday night, U.S. President Barack Obama told the Congress that climate-change action is coming, one way or another. He devoted a substantial part of a speech outlining his second-term agenda to pledges to both reduce emissions and beef up U.S. energy security – but he gave no hints of where Canadian oil fits in.

His ambassador in Ottawa, David Jacobson, said that when Canadians can show progress on climate change, it has an impact on Americans’ judgment of whether the energy-security benefits of oil-sands imports outweigh the environmental impact.

“It does,” Mr. Jacobson said in an interview on Wednesday. “I think that there are an awful lot of folks who are trying to make up their minds, and trying to draw the right balance between these two things, who I think will be moved by progress.

“There has been progress. As I’ve said many times before, there needs to be more progress.” The ambassador’s comments were made on a day that 48 environmentalists, including the head of the Sierra Club, were arrested in Washington as they protested against TransCanada’s proposed Keystone XL pipeline.

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U.S. support for Keystone pipeline stretches well beyond industry insiders – by Claudia Cattaneo (National Post – February 14, 2013)

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

With four million members in the United States and Canada, Sean McGarvey, president of the building and construction trades unit of the mighty AFL-CIO, is the type of Keystone XL pipeline backer the U.S. president cannot ignore.

Trade unions such as the American Federation of Labour and Congress of Industrial Organizations — the United States’ largest union federation — had a big hand in Barack Obama’s re-election, much like the environmental movement that opposes the Alberta-to-Texas oil sands pipeline.

And their patience with the anti-XL camp is wearing thin. Unemployment in the U.S. construction industry is running at 16.1% or higher, Mr. McGarvey said in an interview, and his members and their families are “desperate” for the 20,000 construction jobs that could be had with the TransCanada Corp. project.

“We are telling the president, and have been telling the president, that a thorough review was appropriate, that following the proper protocols needed to be done to make sure that this was going to be a secure, safe pipeline … that it’s going to be constructed with the most highly skilled people in the world.” With “all those reviews completed and the reroute around the aquifer in Nebraska done, the time is now to issue the permit.”

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