Cliffs to push mine, smelter project forward – by Carol Mulligan (Sudbury Star – November 7, 2012)

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

Bill Boor, senior vice-president of global ferroalloys for Cliffs Natural Resources, had already been asked several times about the company’s projected start date for its Black Thor deposit in the Ring of Fire by the time he addressed a lunch crowd Tuesday.

Boor told 330 people attending an event organized by the Greater Sudbury Chamber of Commerce that he hoped to clear up any confusion about his company’s schedule to begin production at its McFaulds Lake mine site in northwestern Ontario.

“How do you clear it up?” Boor asked rhetorically during his 40-minute speech. “My simple answer is, ‘It depends.’ ” Many things will have to come together to meet Cliffs’ target of beginning production by the end of 2016, he said.

The company is in the middle of completing a feasibility study that will refine what came out of a pre-feasibility study. That will result in “a very specific project with tighter understanding of the impacts of what needs to be managed here,” said Boor.

Using targets the company believes are realistic, it is looking to complete the feasibility study by mid-2013 and to have permits in place in the second half of 2014. 
The environmental assessment for the project will be “running parallel and that’s an uncertain timeline,” said Boors.

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Hiring of Chinese miners in B.C. sends unions to court – Petti Fong (Toronto Star – November 6, 2012)

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.

VANCOUVER—The hiring of about 200 Chinese miners to work in northern British Columbia has raised concerns with Ottawa as unions went to court Monday seeking to overturn the decision to allow the foreign workers into Canada.

The workers, some of whom are already at the mine near Tumbler Ridge, B.C., were allowed in after getting approval from Human Resources and Skills Development Canada.

The miners will be employed at HD Mining International Ltd’s Murray River coal mine extracting bulk samples.

“Canadians must always have the first crack at job opportunities,” said Alyson Queen, spokeswoman for Human Resources and Skills Development Minister Diane Finley. “As we have indicated previously, we are concerned with the process that led to this decision.”

Queen said in a statement to the Toronto Star that the ministry is looking into the case to ensure that appropriate rules were followed but cannot comment further on matters because the issue is now in the courts.

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Mine plans will rely on markets: Cliffs – by Carl Clutchey (Thunder Bay Chronicle-Journal – November 6, 2012)

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

The prospect of a large-scale chromite mine in the Ring of Fire — as well as new power and road infrastructure expected to go along with it — still seems do-able even as the main proponent ponders a less-than-rosy market outlook, possible time-line adjustments and a partner, leaders of an affected community say.

But the fact that Cliffs Natural Resources may yet again postpone its proposed production date is discomfiting. “It’s definitely a concern when they push (the date) back a second time,” Greenstone Mayor Ron Beaulieu said Monday.

“I mean, we met with Cliffs from day one, and they told us they had a production date set (2015) which seemed written in stone.”

Beaulieu added: “I still think it’s a viable project that will eventually come to fruition.” Cliffs spokeswoman Pat Persico said Monday that “officially we are working towards the end of 2016,” but the production date could be pushed “beyond 2017.”

Persico said the Cleveland-based iron ore giant remains committed to having a feasibility study and environmental assessment review for its Ring of Fire project completed by next year.

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New chairman envisions a modernized Ontario Workplace Safety and Insurance Board (WSIB)

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.

Elizabeth Witmer, Chairman of Ontario’s Workplace Safety and Insurance Board (WSIB), shared her vision for a modernized delivery of services and management of the province’s workers compensation system. She was a keynote speaker at the OMA’s Meet the Miners Day on October 30 at Queen’s Park.

“It is my opinion that mining is a key ingredient to Ontario’s economic growth and its future,” said Ms Witmer. “I commend you for your strong record in health and safety and I congratulate you for your accomplishments to reduce workplace injuries and the cost of workplace injuries.”

“The WSIB is almost 100 years old (it started in 1915) and it has been largely successful in serving the workers and employers of Ontario,” she said. “However, we need a bold new model for the workplace of today. The WSIB is being transformed to make it more financially sustainable.”

Recently, Ms Witmer announced a 2.5% increase in employers’ WSIB premiums for 2013. The WSIB is struggling to bring down its unfunded liability, which stands at about $14.2 billion. “The WSIB has a role to play in contributing to economic development and productivity but the WSIB’s unfunded liability is a drag on growth in the Ontario economy.”

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Cliffs could further delay Ring of Fire chromite mine – by Shawn Bell (Wawatay News – November 5, 2012)

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

Cliffs Natural Resources is considering delaying the expected start date of construction on its Ring of Fire chromite mine until 2017 or beyond.

Joseph Carrabba, Cliffs CEO and President, told international investors on Oct. 25 that in light of current global iron ore prices the company is reviewing the timeline for its proposed northern Ontario mine.

“This includes delaying the major capital spending outlays and could push the production target date beyond 2017,” Carrabba said. “We still expect to complete the feasibility stage of development and environmental assessment by next year. However, we have decided to shelve our early works plans until feasibility is complete.”

Carrabba said that Cliffs plans to decrease spending on exploration of its chromite site in 2013 as well as cancelling plans for capital spending at the site for the upcoming year. “Exploration will go down in 2013, just like everything. The first thing that always goes is exploration and R&D from any mining company that goes with it,” Carrabba said.

Carrabba also told investors that the company is exploring the option “to take on a partner for the project.”

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Banks struggle to adapt or survive in commodities – by Dmitry Zhdannikov (Reuters U.S. – November 5, 2012)

http://www.reuters.com/

LONDON – (Reuters) – Stick, twist or fold? Like card players, the top five banks in global commodities trade have reached the point where they must decide to hold strategy, adapt, or give up and get out.

The boom in resource markets that started 10 years ago attracted many big banks to trade oil, metals and agriculture, but the 2008 financial crisis forced a painful retreat and tighter regulation now means some banks may throw in the towel.

Decisions rest on whether the banks believe their business models can be changed to keep them sufficiently profitable under the rising oversight of regulators, after four years when their revenue from commodities was halved.

“The total wallet back at the peak was about $14 billion for the banking sector in commodities trading. I’d imagine this year it’ll be about $7 billion. There were 10-14 banks when it was at $14 billion, now there are really five relevant ones,” said David Silbert, who leads commodities trading at Deutsche Bank.

Deutsche, together with Barclays and J.P. Morgan, broke into the commodities arena in the last decade with acquisitions or aggressive growth to challenge established veterans Goldman Sachs and Morgan Stanley.

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NEWS RELEASE: Ministry Issues 41 Orders at Site of Vale Mine Fatalities

Ongoing Safety Issues Reinforce Need for Mining Inquiry

SUDBURY, ON, Nov. 5, 2012 /CNW/ – A community-based committee created after two workers were killed at Vale’s Stobie Mine is shocked that a Labour Ministry inspection of the same mine has resulted in 41 health and safety orders against the company.

“It is deeply troubling for us that orders have been issued to Vale related to concerns with standing water – the very hazard that contributed to the deaths of Jason Chenier and my brother, Jordan Fram,” said Briana Fram of the MINES (Mining Inquiry Needs Everyone’s Support) committee.

“How can it be that, only 17 months after Jason and Jordan were killed, Vale is being ordered by the Ministry of Labour to rectify problems with standing water in this same mine?” Fram asked.

The community-based MINES committee was formed last month to ask the provincial government to call an inquiry into Ontario mines. Such an inquiry has not been held in three decades.

The Ministry of Labour inspection of Stobie Mine occurred October 17, 2012. At least 10 of the orders issued to Vale, under terms of the provincial Occupational Health and Safety Act, are directly linked to water issues.

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Vale safety violations upset family of killed miner – by Carol Mulligan (Sudbury Star – November 6, 2012)

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

The sister of a miner killed June 8, 2011, at Vale’s Stobie Mine and the president of the union representing that worker say they were shocked the Ministry of Labour issued 41 health and safety orders against the company after an inspection at the mine last month.

Briana Fram asked how it could be that Vale is facing 41 infractions at the mine where, 17 months ago her brother, Jordan Fram, 26, was killed on the job.Fram and Jason Chenier, 35, died when they were overcome by 350 tons of muck while working at the 3,000-foot level at Stobie Mine.

Vale is facing nine charges under the Occupational Health and Safety Act, and one of its super visors is facing six charges under the act after a Labour ministry investigation into the men’s deaths. Those charges are proceeding through court.

Briana Fram sits on an advocacy committee called MINES (Mining Inquiry Needs Everyone’s Support), struck to lobby for a provincewide inquiry into mining safety and practices to avoid tragedies such as the deaths of the two men.

MINES issued a statement Monday saying its members were troubled about the orders against Vale at Stobie, especially ones related to standing water. Excess water was identified as a large part of the reason the two men were killed.

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Great expectations fill Greenland as China eyes riches – by Alistair Scrutton (Reuters Canada – November 5, 2012)

http://ca.reuters.com/

NUUK (Reuters) – By a remote fjord where icebergs float in silence and hunters stalk reindeer, plans are being drawn up for a huge iron ore mine that would lift Greenland’s population by four percent at a stroke – by hiring Chinese workers.

The $2.3-billion project by the small, British company London Mining Plc would also bring diesel power plants, a road and a port near Greenland’s capital Nuuk. It would supply China with much needed iron for the steel its economy.

With global warming thawing its Arctic sea lanes, and global industry eyeing minerals under this barren island a quarter the size of the United States, the 57,000 Greenlanders are wrestling with opportunities that offer rich rewards but risk harming a pristine environment and a traditional society that is trying to make its own way in the world after centuries of European rule.

Great expectations could lead to greater disappointments, for locals and investors. Yet a scramble for Greenland already may be under way, in which some see China trying to exploit the icebound territory as a staging ground in a global battle for Arctic resources and strategic control of new shipping routes.

Whether in iron, zinc or rare earth minerals vital for 21st-century technology like smartphones, China, the emerging economic superpower is eyeing investments in the Danish-ruled country whose own, increasingly autonomous, national government is looking further afield for investors.

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NEWS RELEASE: Equity financing and market cap decline by more than 40% for TSX-V mining sector: PwC

Juniors rethink growth strategy, while latest market activities hint at potential turnaround in 2013

Click here for: Junior Mine 2012: Must survive before you can thrive

TORONTO, Nov. 5, 2012 /CNW/ – With the Top 100 junior mines on the TSX Venture Exchange (TSX-V) facing decreases in debt and equity financing, as well as market capitalization, miners must either reduce spending substantially or turn to alternative forms of financing for growth, according to PwC’s latest Junior Mine report released today.

The market capitalization of 2012’s Top 100 decreased 43% compared to 2011’s Top 100. As well, the number of mining companies in the Top 100 with market capitalization of more than $200 million dropped to 13 – falling from 2011’s record high of 36 companies. Meanwhile, equity financing decreased by 41% to $1.6 billion compared to $2.7 billion raised by 2011’s Top 100 junior miners.

“In the last year, investors were cautious of the volatile market and not willing to invest. The macro-economic pull-back is driving investors to hold on to or cash-in their investments, leaving junior miners urgently looking for new sources of financing,” says John Gravelle, Mining Leader for the Americas, PwC. “While a dramatic turnaround is not expected anytime soon, recent market activities should give junior miners a resurgence of optimism for 2013.”

With the IPO market falling silent for most of 2012 – only four mining IPOs on the TSX-V were completed in Q3 2012, compared to 14 in Q3 2011—Ivanplats’ $300 million IPO however could signal the new beginning for mining executives looking to initiate IPOs that have been waiting in queue for some time now, continues Gravelle.

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Two unions seek federal court muscle to oust foreign workers from B.C. mine – by Dene Moore (Vancouver Sun – November 5, 2012)

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

The Canadian Press – VANCOUVER – Two labour unions want a federal court to overturn temporary work permits issued to Chinese workers at a coal mine in northern British Columbia, arguing that there are unemployed Canadians who could fill the jobs.

Permits have been granted under the federal Temporary Foreign Worker Program to 200 Chinese workers to conduct exploration work at HD Mining International Ltd.’s Murray River mine near Tumbler Ridge, B.C.

The company has said it was not able to find workers in Canada with the specialized skills necessary. But the court action filed by the International Union of Operating Engineers Local 115 and the Construction and Specialized Workers Union Local 1611 maintains that is not the case.

“There is no evidence of a labour shortage nor is there an absence of suitable Canadian citizens or permanent residents for the jobs,” said the application.

It says HD Mining received 300 applications to work at the underground coal mine “despite the fact that HD Mining did not advertise widely and imposed unreasonable and unnecessary requirements on Canadian applicants.”

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Glimmers of hope for junior miners after slow-moving investment nightmare – by Peter Koven (National Post – November 5, 2012)

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

The carnage in the junior mining world is every bit as bad as advertised, but there are a few glimmers of hope. That is the main message from a review of the sector released Monday by PricewaterhouseCoopers LLC (PwC). The study, conducted annually, chronicles the dramatic ups and downs of the top 100 companies on the TSX Venture Exchange.

Given the lack of financing available to most of these firms, it goes without saying that the past 18 months have been a slow-motion nightmare. According to PwC, the total market cap of 2012’s Top 100 plunged 43% compared with 2011 (as of June 30 in each case). Only 13 of them had market values above $200-million this year, compared with 36 a year ago.

As economic uncertainty increased last year, investors became more risk-averse and demand for junior mining equities evaporated. That made it extremely tough for these companies to stay active. Equity financing among the Top 100 dropped 41% to $1.6-billion year over year, and the smaller exploration plays barely raised anything.

Senior and mid-tier miners have focused on cash conservation and shown little interest in acquiring them. “The pure exploration companies are at a stage where they need to hunker down and make sure they don’t run out of cash before they turn around,” John Gravelle, PwC’s mining leader for the Americas, said in an interview.

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Mining magnate emerges as major U. of Utah donor – by Brian Maffly (The Salt Lake Tribune – November 5, 2012)

http://www.sltrib.com/

Pierre Lassonde » After a career that included environmental and stockholder controversies, the Canadian gold guru is expanding entrepreneurship efforts at the U.

At his inauguration last month, new University of Utah president David Pershing highlighted gifts from the Huntsman and Noorda families, who have long-standing ties to the state. Other donor names familiar to Utahns — Eccles, Marriott, Sorenson, Skaggs and others — are emblazoned on buildings and programs throughout campus.

But it’s Canadian mining-magnate-turned-philanthropist Pierre Lassonde, far less known and with a more distant connection to Utah, who is now emerging as one of the U.’s most generous donors.

Pershing devoted the most literal “face time” to images of Lassonde during his inaugural address, hailing his “unbelievable commitment” to turning students into entrepreneurs. His latest gift will fund the proposed Lassonde Institute, which would provide housing for up to 400 students interested in adding entrepreneurship to their majors, whether or not they are focused on business.

After earning a master’s in business administration at the U. 30 years ago, Lassonde became an astute gold analyst and investor.

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The invisible gold rush – by Sean Phipps (The McGill Daily – November 5, 2012)

http://www.mcgilldaily.com/

Sean Phipps is a U2 Latin American Studies and Environment student. He can be reached at sean.phipps@mail.mcgill.ca.

Canadian imperialism and the gold mining boom

As I write this the price of gold is $1,776.80 an ounce, the highest it’s ever been, up from $1,023.50 in 2008 and $282.40 in 1999. Global economic instability has fueled this dramatic spike, and along with it a massive increase in gold production, an expansion that some have termed “an invisible gold rush.”

In Canada we – or at least some of us – directly benefit from this expansion. 75 per cent of the world’s mining companies (in both production and exploration) are Canadian registered, and several of the industry’s biggest players such as Barrick, Goldcorp, and Kinross are Canadian. And, with a government increasingly working to reflect the needs and interests of the extractive industry, these companies have emerged as key dictators of our country’s economic and foreign policy.

As a country, we are increasingly tied to gold. It is with this in mind that I chose to look at the long and often brutal history of gold mining, the way in which we have viewed gold over time, and to help piece together our strange relationship with this mineral.

Why gold? What has led us to value it above all other substances? Looking at a sample in the display cases in the Redpath Museum, it is hard to deny its beauty. However, gold’s real power has always been symbolic, for gold is wealth itself.

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Thunder Bay Power plant shocker – Thunder Bay Chronicle-Journal Editorial (November 4, 2012)

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

JUST when Northwestern Ontario had some wind in its sails — bam! — the penny-pinching province becalms mining-related momentum by suddenly cancelling the conversion of Thunder Bay’s electricity generating station from coal to gas. There are a whole raft of questions still to come, and there might well be good answers to them. But for the time being, this plan looks hair-brained.

First, it flies in the face of the province’s vaunted coal phase-out policy built on converting newer plants in order to keep the lights on in various regions. Converting Thunder Bay Generating Station to natural gas and Atikokan to biomass is a central plank in the clean-air platform. Atikokan is still proceeding but it will only produce 20 megawatts at the best of times.

Thunder Bay GS would produce 700 MW from gas. Removing that capacity from the grid would leave the Northwest destitute for electricity just when it needs a lot of it to power the new mining boom, area leaders said Friday at a news conference punctuated with expressions of dismay.

The energy minister cautions this is temporary — for now — while the Ontario Power Authority prepares a new plan for the North built around a doubling in capacity of the east-west tie line to 600 MW.

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