Republic of Mining

Junior resource investment in a financial meltdown – the Good, the Bad and the Ugly – by Lawrence Williams (Mineweb.com – May 18, 2012)

May 18, 2012

www.mineweb.com

Rick Rule’s presentation at the New York Hard Assets Conference earlier this week sees some light for the informed junior resource investor despite current patterns which have mostly been Bad or Ugly!

NEW YORK (MINEWEB) – In a highly entertaining keynote address to the New York Hard Assets Investment Conference, Rick Rule of Global Resource Investments, now part of the Sprott Group, who professes to be a contrarian investor presented his views on resource investment in a financial meltdown – a very relevant speech in the current environment when so many resource stocks have been decimated.

He divided much of his talk into three categories – The Good, The Bad and the Ugly.

So as not to depress people too much at the start of his talk he examined The Good first and said there is much that is Good for the investor. Primarily he reckons the natural resource bull market remains intact despite the recent poor performance of the markets. There are very good fundamental reasons for this driven by a dramatic increase in living standards for the poor in the emerging market economies. As people become more free they become more rich – and the things they buy are made of ‘stuff’, while in the West we are mostly buying what could be termed luxuries rather than ‘stuff’.

Timmins honours King of the Klondike, Sean Ryan, at gala dinner – by Len Gillis (Timmins Times – May 17, 2012)

May 18, 2012

http://www.timminstimes.com/

Ryan, John Larche and Don McKinnon honoured as part of 100th anniversary celebration

Some of the most famous prospectors in Timmins, indeed in all of Canada, were honoured this week at the Gala Mining Dinner hosted by the Porcupine Miners Memorial Committee to help celebrate the 100th anniversary of Timmins.

Fittingly the event was held at the McIntyre ballroom Tuesday night, named for the the mine discovered by another of the city’s legendary mine finders. But the evening was dedicated to some of the more modern prospectors who have made their mark in other parts of Ontario and other parts of Canada, but have always remained true to their Timmins roots.

The tributes were presented in recognition of the city’s 100th anniversary and also because later this year, the city will unveil three larger-than-life bronze statues to commemorate the mining discoveries by Jack Wilson, Benny Hollinger and Sandy McIntyre, the prospectors who found the Big Three gold mining properties in Timmins, The Dome Mine, The Hollinger Mine and The McIntyre Mine.

It made the evening the right setting to honour three modern-day Timmins prospectors whose names have become synonymous with success in finding gold; John Larche, Don McKinnon and Sean Ryan.

Private sector will provide ONTC services – by Rick Bartolucci – Ontario Minister of Northern Development and Mines (May 18, 2012)

May 18, 2012

Our government’s decision to divest the Ontario Northland Transportation Commission was a difficult one that was made after careful deliberation. No other government has done more than ours to try to make the ONTC viable.

We have invested more than $430 million to date — almost three times the funding provided by the last two governments combined. And while our support has increased, revenues generated by ONTC continue to decline and ridership is stagnant at best.

At a time when governments all over the world — including Ontario — are financially stretched to the limit, we must focus our limited resources on priorities such as education and health care.

And for Northern Ontario, we need to protect the Northern Ontario Heritage Fund, which is a known job creator for every community along the Highway 11 corridor and, in fact, all of Northern Ontario.

I know the divestment decision has caused some uncertainty for passengers and ONTC employees in the 13 communities with ONTC operations. Given the longstanding presence of the ONTC along the Highway 11 corridor, I understand the emotional reaction this has provoked and the concern of workers with regard to next steps.

We take our responsibilities very seriously when it comes to consulting with our First Nations partners – Dalton McGuinty – by James Murray (NetNewsLedger – May 16, 2012)

May 17, 2012

http://netnewsledger.com/

QUEEN’S PARK – The battle over who is listening is being fought in Queen’s Park. During Question Period today, the NDP leader Andrea Horwath was up questioning the Premier on the differences between the Ontario government and the First Nations over the Ring of Fire.

Howath asked Premier Dalton McGuinty, “Last week, the government assured this Legislature and the public that First Nations partners were being properly consulted about development in the Ring of Fire. Today, we’re hearing a very different story from the Neskantaga First Nation, whose legal counsel asserts that the government breached its legal duty to consult. Why has this government shown no serious willingness—and those are the First Nations’ words—to address the concerns of Neskantaga and other Mattawa First Nations?”

The Premier responded, “I just want to say that we take our responsibilities very seriously when it comes to consulting with our First Nations partners. We understand there is legal obligation there, but we also feel a sense of responsibility, on behalf of all Ontarians, to make sure that we are working with our First Nations partners, especially when it comes to exciting new opportunities to be found in the Ring of Fire. I know that specific efforts were made to reach out to those communities in the past. We will continue to find ways to move forward.

Special tribute to prospecting legends – by Kyle Gennings (Timmins Daily Press – May 16, 2012)

May 17, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Porcupine Prospectors and Developers Association honour trio of mining heroes

For many, the idea of prospecting goes hand in hand with the gold rushes in the early 1900s. Colourless men in britches panning the rivers outside of Dawson City, wearing wide brimmed hats keeping the sun off of their sweat stained backs.

However, prospectors have transcended the years and can still be found roaming the bush, the mountainsides and the valleys of Canada staking claims, seeking gold and above all, the big pay out from the mining companies. While the technology has changed drastically, the principle of hard work hasn’t.

Which is why the Porcupine Prospectors and Developers Association honoured three men with lifetime achievement awards for being at the forefront of their peers — they are mine finders. Don McKinnon, John Larche and Shawn Ryan were awarded for their prowess as gold finders, and more than that, their ability to provide mining companies a reason to dig deep.

“Prospectors live a hand-to-mouth existence,” said Gregory Reynolds, former managing editor of the Timmins Daily Press. “Never having a steady pay cheque and never knowing where in Canada the next contract will take them.”

North [Ontario] gets chill from McGuinty – by Brian MacLeod (Sudbury Star – May 17, 2012)

May 17, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper and Brian MacLeod is the managing editor. brian.macleod@sunmedia.ca

Northern Ontario has never been homogeneous. Its vast geography and the rivalries among municipalities make it a hard political animal to tame.

And that makes life difficult for Premier Dalton McGuinty. Developments over the last couple of years show that. The closure of Xstrata’s Kidd Creek Metallurgical plant in Timmins in 2010 saw 600 jobs lost as the work moved to Quebec, in large part because of the high cost of power in Ontario.

In March, the government announced it will privatize the Ontario Northland Transportation Commission — which provides some rail, bus and communications services in the North — putting 1,000 jobs in question. And last week, Cliffs Natural Resources, the U.S. firm that’s first in developing the massive Ring of Fire chromite deposit in northwestern Ontario, announced it would build its ferrochrome smelter in Sudbury, bringing about 450 jobs.

Mouse against elephant [Ring of Fire conflict] – by Carol Mulligan (Sudbury Star – May 17, 2012)

May 17, 2012

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

Chief Peter Moonias, of Neskantaga First Nation, has the backing of his members to do whatever it takes– legal action, blockading and even acts of “mischief” — to get Northern Development and Mines Minister Rick Bartolucci to negotiate with his community.

Moonias has hired a British Columbia lawyer, experienced in native land claims, to represent his 400-member community 35 ki lometres from where Cliffs Natural Resources intends to operate an open-pit chromite mine in the Ring of Fire.

Neskantaga members are furious because they say they weren’t consulted by the province before it gave Cliffs approval in principle to mine the deposit and locate a ferrochrome processing plant near Capreol.

Bartolucci said last week his government will enter into framework agreements with First Nations as it finalizes details of its agreement with Cleveland-based Cliffs. The chief says that’s like someone coming onto a Sudbury homeowner’s property, digging up the lawn and saying, “I’ll have a framework agreement after I finish digging.”

Let claims lapse, says group – by Laura Stricker (Sudbury Star – May 17, 2012)

May 17, 2012

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

A decision by the provincial government will determine the fate of Wolf Lake Forest Reserve for the next two decades, a group dedicated to protecting the area says.

Members of the Wolf Lake Coalition gathered at Memorial Park in downtown Sudbury on Wednesday to make the case for why more of Wolf Lake should be turned into parkland, and to release a report detailing why the area needs to be protected.

“We’re at a key time in terms of being two weeks away from a decision that the Ontario government will make, which will either open the way for full protection as a park or block that for another 21 years,” said Beth Mairs, a member of the Wolf Lake group and the Coalition for a Liveable Sudbury.

On May 31, a mining lease in the forest is set to expire. The group is urging the government to end the lease, rather than renew it for another 21 years. The Mike Harris government made a promise in 1999 that once a mining lease or claim lapses in the Wolf Lake area, the land in question becomes parkland and will be added to the Chiniguchi Waterway Provincial Park, in Greater Sudbury north of Lake Wahnapitae.

From Queen’s Park – We need to make the right decisions on the Ring of Fire – by Sarah Campbell, Kenora-Rainy River MPP (NetNewsledger.com – May 13, 2012)

May 16, 2012

http://netnewsledger.com/

QUEEN’S PARK – LEADER’S LEDGER – Last week Cliffs Natural Resources announced its plans to locate a chromite smelter, which will be used to process raw ore from the Ring of Fire, in Sudbury.

While many are disappointed that the smelter, and 450 potential jobs, will be located in Sudbury, Cliffs Natural Resources is a privately owned company and the decision, with its estimated $1.8 billion price tag, is theirs to make.

That said, I have concerns with the way this process was handled by the provincial government, not only in its failure to involve regional leaders but also in the fact that there appears to be many side deals that have been made but not announced.

The fact is, the government needs to be the party facilitating a cooperative approach, to ensure the potential of the Ring of Fire project is maximized. By leaving community leaders out of the first stage of planning, and making decisions without them, they risk making the wrong decisions.

While the only firm commitment that has been announced is the location of the smelter, the fact that this decision was made in the backroom leaves us to guess as to what other promises have been made.

Will the Ring of Fire lead to a new Northwestern Ontario territory? – by James Murray (Netnewsledger.com – May 16, 2012)

May 16, 2012

http://netnewsledger.com/

THUNDER BAY – Editorial – Will the Ring of Fire lead to a new Northwestern Ontario territory? In the Ontario Legislature on Tuesday the issue of mining and the Ring of Fire was discussed. Sarah Campbell went so far as to state in the legislature, “This government must start representing our needs and interests today; otherwise, its not just Cliffs that will receive an eviction notice from the northwest, it will be the government of Ontario”.

This is the first time in recent memory that the subject of Northwestern Ontario as a separate political entity from the rest of Ontario has been raised.

It demonstrates the degree of frustration and the depth of growing anger over how the McGuinty government is treating the region.

Campbell stated in a members statement read in Queen’s Park, “While Cliffs made a business decision to process northwestern Ontario resources in northeastern Ontario, which is its right, this government has no excuse for failing in its duty to involve northerners in the process. While the government is silent on many details, it is clear that this government has made commitments without involving municipal leaders or First Nations.

“It would appear that Ontario is already in breach of their legal duties toward Neskantaga” – by Netnewledger News(Netnewsledger.com – May 15, 2012)

May 16, 2012

http://netnewsledger.com/

THUNDER BAY – The legal team for the Neskantaga First Nation have communicated to the McGuinty Government through Minister of Northern Development and Mines, Rick Bartolucci over what the First Nation is saying is a lack of consultation.

“The Neskantaga, along with the other Matawa First Nations, is in litigation in respect to the Cliffs’ project, and the need for a full Joint Panel Review. Neskantaga has indicated to your Ministry and your officials a desire to negotiate a proper regional environmental assessment process that would harmonize Federal, provincial and First Nation reviews”.

“Further, your Ministry and the project proponent, Cliffs Natural Resources Inc. have been well aware that the proposed project and its related infrastructure will have significant adverse impacts on the Neskantaga lands, culture and aboriginal interests. Despite this knowledge, Ontario has proceeded with discussions with the proponent and other First Nations to the exclusion of Neskantaga. We are now advised that your Ministry has announced that Ontario intends to proceed with this project, and to provide funding to the proponent for infrastructure without having fulfilled the duty of consultation and many other First Nations directly affected”

Discord over NW Ont. [Ring of Fire] mine was avoidable, lawyer says – CBC News (CBC Radio Thunder Bay – May 16, 2012)

May 16, 2012

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

An American company planning to invest $3.3 billion on a Northern Ontario mine and processing plant has waded into the latest front in a countrywide battle over environmental issues and aboriginal rights, a mining consultant says.

Lawyer and mining industry strategist Bill Gallagher said Ontario should have foreseen the confrontation brewing over land use in the province’s mineral-rich Ring of Fire region in the James Bay Lowlands.

The province announced last week that it reached an agreement in principle with Cleveland-based Cliffs Natural Resources to build a chromite mine in the area about 500 kilometres northeast of Thunder Bay, a road there and a processing facility near Sudbury.

But lawyers for the Neskantaga First Nation say the province may have broken the law by signing deals with Cliffs before consulting First Nations. In a letter written last week, solicitor Gregory McDade exhorts the province to “take no further steps to support this project until full discussion has been held with northern First Nations.”

Neskantaga Chief Peter Moonias added that without thorough consultation on environmental and other issues, Cliffs would have to “kill me first” before accessing its mine site.

OMA member Cliffs plans to invest $3.3 billion in Ring of Fire

May 16, 2012

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 Association Member Cliffs Natural Resources has announced intentions to invest $3.3 billion to develop a chromite mine in the Ring of Fire area, a transportation corridor and a processing plant in Northern Ontario. This could lead to more than 1,200 direct jobs over the anticipated 30 year life of the mine.

“Cliffs is pleased to be moving forward the proposed development of a mine in the Ring of Fire and a processing facility near Sudbury,” said Bill Boor, Senior Vice President Global Ferroalloys for Cliffs Natural Resources, based in Cleveland. “These milestones bring us closer to opening the mine and starting production to meet the global demand for stainless steel.”

“Ontario is blessed with an abundance of natural resources at a time in history when the world is developing faster than ever and demanding these resources,” said Rick Bartolucci, Minister of Northern Development and Mines and MPP for Sudbury. “We are taking advantage of this incredible opportunity in the Ring of Fire to further open up Northern Ontario by bringing thousands of jobs, new infrastructure and economic opportunities to cities, towns and First Nations communities.”

The Ring of Fire is a mineral rich and somewhat isolated area of Northern Ontario located about 540 kilometres northeast of Thunder Bay.

Is the resource boom over? A resounding No! – by Lawrence Williams (Mineweb.com – May 16, 2012)

May 16, 2012

www.mineweb.com

Speaking at the New York Hard Assets Investment Conference this week, respected analyst Adrian Day gave the reasons for his belief that the recent resource boom is still far from over.

NEW YORK (MINEWEB) – Not surprisingly – given metal price performance at the time – the audience at the New York Hard Assets Investment Conference was a little depressed. With gold heading down to the low $1500s – the lowest for several months and, of course, junior mining stocks, which is the sector most of the audience would be there to hear about, having been particularly hard hit.

What the audience really wanted advice on was addressed in one of the earlier keynote presentations by Adrian Day. Is the resource boom over? was the title of his talk and he prefaced it with an immediate No! In particular he made some very salient points about global copper production and the copper market itself. He pointed out that the shortest full copper price cycle in recent history was 17 years, while the current copper cycle only started in 2001 – so if this is the end of the current resource boom this would be the shortest such cycle in over 200 years by a very long margin – which he did not see as likely.

Also he made the very apposite point that most of the world’s copper production comes from old mines where production is declining – either for technical or falling grade reasons – while it takes at least a 10 year lead time – mostly a lot longer to bring a significant new copper mine on stream so it is relatively straightforward assessing he future production scenario given that almost certainly there will not be a new major copper mine opened in the next 25 years which is not already known about.

NEWS RELEASE: KGHM INTERNATIONAL ANNOUNCES Q1 2012 RESULTS & CHANGES TO MANAGEMENT TEAM

May 16, 2012

Vancouver, Canada, May 15, 2012 – KGHM International Ltd., formerly Quadra FNX Mining Ltd. (the “Company” or “KGHM International”), today announced that it will hold a conference call to discuss its financial results for the first quarter of 2012 on Thursday, May 17, 2012 at 9 a.m. PT, 12:00 noon ET, 6:00 p.m. CEST. The financial statements and the MD&A will be available at www.kghminternational.com as of May 15, 2012.

The North American toll free number for this conference call is 1-866-226-1793 and the international number is 1-416-340-2218. The Company requests that participants dial into the call at least 10 minutes prior to the scheduled start time. A PowerPoint slide presentation will be posted on the web site, by end of day on Wednesday, May 16, 2012.

The playback version of the conference call will be available until May 24, 2012 at 1-905-694-9451 or North American toll free 1-800-408-3053 and using the pass code: 7115552.

The Company today also announced that effective June 1, 2012, Derek White, currently the Executive Vice President, Corporate Development, will become the President of KGHM International Ltd.