The 1903 Cobalt Silver Boom and its Extraordinary Economic Impact on Toronto and Ontario – by Douglas Baldwin (December 2017)

Douglas Baldwin is a retired history professor from Acadia University, Nova Scotia. This piece has been adapted from his new book, Cobalt: Canada’s Forgotten Silver Boom Town.

To order the book, click here: http://wmpub.ca/8094-SilverBoom.html

Speaking to the Empire Cub in Toronto in 1909, Rev. Canon Tucker told the story of a widely-travelled American who was asked where Toronto was. He thought for a moment, scratched his head and said, “Oh, yes, that is the place where you change cars for Cobalt.”

Although the value of the silver discovered in Cobalt far surpassed the riches uncovered during the Klondike rush only two decades earlier, few people today know of Cobalt’s history, or even of its existence.

Concentrated in an area less than thirteen square kilometres, about 400 kilometres north-east of Toronto near the Quebec border, Cobalt mines became the fourth-largest silver producer ever discovered.

When production peaked in 1911, Cobalt was providing roughly one-eighth of the world’s silver. During the First World War, the British government considered Canada’s silver supply so important to the war effort that it convinced Canadian Prime Minister Robert Borden to use his influence to prevent a planned strike in the Cobalt mining camp.

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RPT-COLUMN-Blue skies, green cars and a year of revolution for industrial metals – by Andy Home (Reuters U.S. – December 21, 2017)

https://www.reuters.com/

LONDON, Dec 22 (Reuters) – A little bit of metals history was recorded on March 29 this year. The small Central American country of El Salvador became the first nation to ban all exploration, mining and processing of metals.

Don’t worry if you didn’t notice. El Salvador doesn’t have any operating mines. It was going to have a gold mine, but in a public debate pitting economic growth against clean water supply, water won. Such environmental push-back against mining has become an ever more common feature of the metals industry.

But this year has marked a tipping point with China, a dominant producer of so many industrial metals, launching its own clamp-down on pollution. Multiple supply chains from aluminium to zinc have been disrupted with largely bullish, albeit at times chaotic, price impact.

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Trump: Break Chinese, Russian stranglehold over mineral supplies – by John Siciliano (Washington Examiner – December 20, 2017)

http://www.washingtonexaminer.com/

President Trump ordered the U.S. military and the Interior Department to take immediate action to “break” the nation’s dependence on Russian and Chinese supplies of critical minerals as a matter of national security.

“This dependency of the United States on foreign sources creates a strategic vulnerability for both its economy and military to adverse foreign government action, natural disaster, and other events that can disrupt supply of these key minerals,” read an executive order signed by the president on Wednesday.

The order explained that the U.S. has the resources to end the unnecessary dependence on foreign sources of minerals, but must provide its miners with information necessary to begin mining and exploration of critical mineral deposits. This data would include new topography maps and other information on where the largest deposits of critical minerals can be found.

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Eastern Russian port of Nakhodka chokes on coal – by Katya Golubkova and Oksana Kobzeva (Reuters U.S. – December 21, 2017)

https://www.reuters.com/

NAKHODKA, Russia (Reuters) – The far eastern Russian port of Nakhodka on the Sea of Japan is swathed in coal dust. It blankets the streets, clogs the air and is blamed by some for a rise in respiratory diseases among the city’s 150,000 residents.

Yet despite pledges this year by Russia President Vladimir Putin to tackle coal pollution in ports such as Nakhodka and Murmansk thousands of kilometers away near Finland, port workers and local officials don’t expect any change soon.

Once mainly an entry point for cars from Japan and an export route for Russian wood and fish, Nakhodka has switched in recent years to shipping almost nothing but coal from the vast mines in the Siberian region of Kemerovo, also known as Kuzbass.

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Lithium Penny Stock Delivers Dizzying Gain—With Some Promotion Behind It – by Danielle Bochove, Andreo Calonzo and Natalie Obiko Pearson (Bloomberg News – December 21, 2017)

https://www.bloomberg.com/

The electric-vehicle revolution is propelling impressive gains in commodity and equity prices around the world, few more dizzying than Liberty One Lithium Corp. The penny stock, which has changed its name twice since 2016 and is years away from an operating mine, surged 250 percent in October, when both the price of lithium and a benchmark of producers posted single-digit returns.

Along with receiving permits to drill in Argentina and rising commodity prices, Liberty One has been boosted by Pyronix Media, one of a number of companies paid in cash and stock to sing the praises of clients through email, websites and social media. Such online promotions have led at least one U.S. exchange to change its disclosure rules.

“There’s a lot of hype and expectation that probably will never be realized, and it’s very hard for small investors to sort those out,” Joe Lowry, a lithium industry consultant and former FMC Corp. executive, said by telephone, without referring to specific companies. “Drilling a few holes doesn’t constitute an ore body. But that doesn’t stop them pumping the stock.”

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Vale rep lays all the cards on the table during Thompson’s last chamber meeting of 2017 – by Kyle Darbyson (Thompson Citizen – December 20, 2017)

http://www.thompsoncitizen.net/

Throughout 2017, news about Vale’s cutbacks in Thompson has been on the minds of many local residents, especially after their Birchtree facility was put on care and maintenance back in October.

In an attempt to quell concerns about where the company is headed, Mark Scott, the vice-president of Vale’s Manitoba Operations, attended the Dec. 13 Thompson Chamber of Commerce meeting to provide an overview of the challenges the company will be facing in the new year.

Throughout his presentation, Scott made no bones about the continued work force reductions that will be coming to Vale at the end of 2017 and once the smelter and refinery closes down in the third quarter of 2018.

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Editorial: Top stories of 2017 – by John Cumming (Northern Miner – December 20, 2017)

Northern Miner

Broadly speaking, 2017 was a year of renewed optimism for many miners and mineral explorers, fuelled by stronger commodity prices and long awaited financial payoffs from belt-tightening measures taken during the 2012–2016 downturn in mining markets.

Let’s take a look at some of the top mining stories over the past year.

8. Rise of cryptocurrencies — This was the year mining executives and investors could no longer ignore the growing appeal of cryptocurrencies among a niche group of retail investors that would probably be gold bugs in years past.

As gold prices stayed flat for much of the year below US$1,300 per oz., cryptocurrencies such as bitcoin had exceptional years, with bitcoin starting the year around US$1,000 and rising past the US$18,000 mark by mid-December.

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Value of top 50 mining companies surge $140 billion in 2017 – by Frik Els (Mining.com – December 20, 2017)

http://www.mining.com/

Heading into 2018 the world’s 50 largest listed firms are worth a collective $896 billion, adding $141 billion in combined market capitalization year-to-date, with the bulk of those gains recorded since July.

Go back to the start of the mining industry’s upswing around 18 months ago and $227 billion of wealth has been created for shareholders of the MINING.com Top 50.

The top 10 make up more than half the sector’s market value and after underperforming the rest of the field during the first half of 2017, the big diversified and base metals companies caught up rapidly.

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DOJ Prosecutors Looking into Controversial Obama-era Uranium One Deal – by Jasper Fakkert (Epoch Times – December 21, 2017)

https://www.theepochtimes.com/

Department of Justice prosecutors have requested information from FBI agents about an investigation they conducted into the so-called Uranium One deal, NBC News reported on Thursday.

The DOJ prosecutors are currently establishing whether a special council is warranted to look into the controversial deal that gave Russia control over Canadian mining company Uranium One, which at the time controlled 20 percent of uranium supply in the United States licensed for mining.

By giving Russia control over a significant amount of American uranium supplies, it created a potential national security risk. Despite the assurances of the Nuclear Regulatory Commission (NRM) to Congress that the uranium mined by Uranium One would not leave the United States, Uranium has left the country.

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Aluminum under pressure after China smog cutbacks fall short – by Eric Onstad (Reuters U.S. – December 20, 2017)

https://www.reuters.com/

LONDON (Reuters) – The price of aluminum has struggled in recent months as authorities in top producer China have failed to fully implement temporary winter smelter closures to slash pollution.

Lukewarm demand and new smelter projects in China are also poised to lead to more metal piling up, with inventories in the country already at record highs. China has seen sizzling growth in aluminum production over the past decade and now accounts for around half of global output.

Benchmark aluminum on the London Metal Exchange has gained 23 percent this year, but has failed to make further headway after touching a peak of $2,215 a ton in October, the highest level in more than five years. On Tuesday, aluminum – used in transportation, construction and packaging – was trading at around $2,090.

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Coal’s Resilience Will Be Its Downfall – by David Fickling (Bloomberg News – December 20, 2017)

https://www.bloomberg.com/

Consider the following events this month:

  • Newcastle, the Australian port that’s the biggest export harbor for thermal coal, is planning a shift away from the commodity that generates the overwhelming majority of its trade volumes
  • BHP Billiton Ltd., one of the world’s largest coal miners, is considering quitting the industry’s global trade body and perhaps the U.S. Chamber of Commerce because it can’t reconcile its policies on climate change and energy policy with their more coal-friendly stances
  • National Australia Bank Ltd. promised not to lend to new thermal coal projects and ING Groep NV pledged to reduce its exposure to coal generators to close to zero by 2025

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Small town considering buying shares in Rio Tinto Alcan to force them to emit less sulphur dioxide – by Andrew Kurjata (CBC News B.C. – December 20, 2017)

http://www.cbc.ca/news/canada/british-columbia/

The District of Kitimat wants the company to install saltwater scrubbers at the local smelter

The District of Kitimat is considering buying shares in Rio Tinto Alcan in a bid to force the company to install saltwater scrubbers at their aluminum smelter in northwest B.C.

There are fears in the community that SO2 (sulphur dioxide) emissions could have negative health and environmental impacts, although air monitoring stations in Kitimat have indicated SO2 levels do not generally exceed acceptable health standards.

Kitimat Mayor Phil Germuth said there are still two primary concerns: the long-term health impacts of even low-level SO2 emissions and the fear that the existing monitoring stations don’t measure SO2 levels in outlying outdoor recreation areas.

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East-West Tie could groom a generation of Indigenous skilled workers – by Ian Ross (Northern Ontario Business – December 20, 2017)

https://www.northernontariobusiness.com/

Next year’s start of construction of the East-West Tie Transmission Project will be a “huge win” to enable Indigenous communities on the north shore of Lake Superior to recruit and grow a homegrown skilled workforce.

“I think everyone’s eyes are going to open,” said Red Rock Indian Band councillor Matthew Dupuis, a director for SuperCom Industries, which is partnering with the project’s lead contractor.

Supercom is a contracting and training joint venture run by six First Nation communities across whose traditional land the power line upgrading project will cross. Its mandate to maximize First Nations involvement in the $700-million corridor project by supplying skilled labour, negotiating service and supply contracts, and cultivating business partnerships.

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First Nations, Yukon and Canadian governments sign document to ‘reset’ YESAA relationship – by Crystal Schick (Yukon News – December 20, 2017)

On the tail of Bill C-17 becoming law, self-governing Yukon First Nations and the territorial and federal governments have signed a memorandum of understanding (MOU) on the Yukon Environment and Socio-economic Assessment Act, marking a fresh start on how all parties will handle future YESAA projects.

Council of Yukon First Nations Grand Chief Peter Johnston, Champagne and Aishihik First Nations Chief Steve Smith, Yukon Premier Sandy Silver and Minister of Crown-Indigenous Relations and Northern Affairs Carolyn Bennett made the announcement Dec. 15 following the Intergovernmental Forum in Whitehorse.

“Today was a very good day,” Johnston said during a press conference, noting that it follows several other wins for Yukon First Nations this year, including the Supreme Court of Canada’s ruling on the Peel watershed planning case and a moratorium on a federal policy that saw Ottawa clawing back money from self-governing First Nations with their own revenue sources.

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Norilsk Nickel offers a sketch of how it will reduce its sulfur dioxide pollution – by Charles Digges (Bellona.org – December 20, 2017)

http://bellona.org/

Norilsk Nickel, which has time and again made its hometown one of the most polluted places on earth, has announced plans to slash dirty emissions – and finally has released a sketch of measures it will undertake to carry that out.

Norway would benefit too. An investment plan the industrial giant released in London late last month also presages a 50 percent cut in emissions wafting over Norway’s border from one of its smelting works in the Kola Peninsula industrial town of Nikel over the next several years.

That smelter is part of the Kola Mining and Metallurgy Company, a subsidiary of Norilsk Nickel, which has been a near constant source of pollution and worry for northern Norway and other Scandinavian countries.

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