Kinross eyes expansions at its new gold mines in Nevada – by Cecilia Jamasmie (Mining.com – June 29, 2016)

http://www.mining.com/

Canada’s Kinross (TSX:G) (NYSE:KGC), the world’s fifth largest gold producer, believes it can increase reserves at its Bald Mountain and Round Mountain mines, which it acquired from Barrick Gold (TSX, NYSE:ABX) late last year.

The company, which is looking to strengthen its portfolio in North America, has increased its exploration budget for the year by 50% to $9 million as “promising results” at Bald Mountain have “reaffirmed Kinross’ confidence in the site’s significant upside potential,” it said in a market update ahead of an analyst tour this week.

Kinross, which operates two mines in Russia and also owns the problem-plagued Tasiast operation in Mauritania, also see great potential in its other Nevada-based mien — Round Mountain. Continue Reading →

Glencore throws full weight behind transparency in money-to-govts report – by Martin Creamer (MiningWeekly.com – June 29, 2016)

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

JOHANNESBURG (miningweekly.com) – Global diversified mining and marketing company Glencore threw its full weight behind complete openness in its maiden Payments-To-Governments Report 2015.

In a 17-page outline, Glencore CFO Steve Kalmin provides an overview of the $5-billion it paid last year to 16 governments ranging from Argentina to Zambia and including South Africa.

Australia received the highest single amount at $866 744 000, more than ten times the $83 500 000 to South Africa. Disclosing payments made on a country‑by‑country and project‑by‑project basis, the report is aligned to the requirements of Chapter 10 of the European Union’s accounting directive. Continue Reading →

BHP Billiton says Jansen project still alive despite comments from MLA – by D.C. Fraser and Alex MacPherson (Regina Leader-Post/Saskatoon StarPhoenix – June 28, 2016)

http://leaderpost.com/

A government backbench MLA hinted earlier this month that BHP Billiton Canada Inc. would abandon its multi-billion-dollar Jansen potash mine if it doesn’t get further approval to proceed with construction. However, the global mining giant and the government minister responsible for the file said that isn’t case.

Glen Hart, MLA for Last Mountain-Touchwood, told a group of citizens fighting a separate proposed potash mine that BHP employees in Saskatoon told the government that the massive Jansen mine was “at a stage now where if the board of directors doesn’t authorize any more expenditure on this project, they’re going to walk way.”

Hart’s comments were recorded, though it’s unclear if the MLA knew he was being taped. The MLA claims the quote was taken out of context and he was trying to describe his understanding of the process for how potash mine is built. According to a spokeswoman for the premier’s office, Hart in no way meant to sound as if the mine would not proceed. Continue Reading →

 Rio Tinto cuts exposure to tax havens – by Jamie Smyth (Financial Times – June 29, 2016)

https://next.ft.com/

Miner bows to pressure over concerns about avoidance by multinationals

Sydney – Rio Tinto has cut the number of its companies that operate in tax havens after a review prompted by growing concerns over possible tax avoidance by multinationals.

The Anglo-Australian mining group said 17 of its 600 controlled entities were resident in tax havens in 2015, three fewer than in 2014. Of these, eight entities are dormant companies, which are either in liquidation or scheduled for liquidation, according to an annual report by Rio, Taxes Paid in 2015.

Rio defines a tax haven as a country with a general corporate tax rate below 10 per cent. Chris Lynch, Rio’s chief financial officer, said in a foreword to the report that the company supported global efforts to prevent aggressive tax avoidance and accepted OECD recommendations for companies to provide country-by-country tax reporting. Continue Reading →

Main creditor for Banks Island Gold contemplates reopening Yellow Giant mine – by Gordon Hoekstra (Vancouver Sun – June 28, 2016)

http://vancouversun.com/

The main creditor of bankrupt Banks Island Gold is contemplating reopening the remote Yellow Giant mine, which was shut down last year by the province over environmental and permit violations, according to the B.C. ministry of mines.

The ministry says it has had discussions with the leading creditor, MCC Non-Ferrous Trading, about what it would take for it to reopen the small mine on Banks Island, about 100 kilometres south of Prince Rupert, including applying for permit amendments.

That discussion is taking place after a B.C. Supreme Court-appointed receiver did not receive any successful bids for Banks Island Gold, Ministry of Energy and Mines spokesman David Haslam said in a written response to questions from The Vancouver Sun. Continue Reading →

Indonesia faces environmental time bomb after coal bust – by Fergus Jensen (Reuters U.S. – June 29, 2016)

http://www.reuters.com/

SAMARINDA, INDONESIA – Thousands of mines are closing in Indonesia’s tropical coal belt as prices languish and seams run dry. But almost none of the companies have paid their share of billions of dollars owed to repair the badly scarred landscape they have left behind.

Abandoned mine pits dot the bare, treeless hillsides in Samarinda, the capital of East Kalimantan province on Indonesia’s part of Borneo island. It is ground zero for a coal boom that made Indonesia the world’s biggest exporter of the mineral that fuels power plants. Abandoned mining pits have now become death traps for children who swim in them, and their acidic water is killing nearby rice paddies.

Indonesia has tried, mostly in vain, to get mining companies to keep their promises to clean up the ravaged landscape. But it doesn’t even have basic data on who holds the many thousands of mining licenses that were handed out during the boom days, officials say. Continue Reading →

NEWS RELEASE: Ontario Supporting Geoscience Research (Ministry of Northern Development and Mines – June 29, 2016)

Initiative to Help Stimulate Mineral Development in Northern Ontario

Ontario is supporting a groundbreaking research proposal that will help lead to future mining innovations and create jobs in the North.

The province’s Northern Ontario Heritage Fund Corporation (NOHFC) is investing $5 million over seven years to support Laurentian University in its proposal to form a research consortium to better understand how and where base and precious metal deposits formed. This research could lead to improved success in finding ore bodies for future mining development.

Since 2003, Ontario has invested more than $1 billion through the NOHFC to more than 7,463 projects, leveraging more than $3.97 billion in direct economic activity and creating or sustaining over 28,100 jobs in Northern Ontario.

Investing in research and innovation is part of the government’s economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. Continue Reading →

NEWS RELEASE: ROB AND CHERYL McEWEN INVEST $10 MILLION IN LAURENTIAN UNIVERSITY’S SCHOOL OF ARCHITECTURE

SUDBURY, ON (Sept. 29, 2016) – The Laurentian University School of Architecture will now be known as the McEwen School of Architecture, in recognition of a significant investment by Rob and Cheryl McEwen. A blue and gold banner bearing the McEwen name was unfurled outside the School in downtown Sudbury today, as the McEwens announced a $10 million gift. Four million dollars will be used to complete the School’s $45 million state-of-the-art facility. The remaining $6 million will enhance the student experience and maximize their capacity to become agents of change for architecture globally.

“Investing in Laurentian’s School of Architecture is a thrilling and proud moment for us. This School’s focus on green and sustainable design, rooted in northern landscapes and community, is creating unique opportunities for the next generation of architects,” said Rob McEwen. “We are already seeing the impact the School has had on northern communities in its first three years, and we look forward to the innovation and excellence in design these young leaders will achieve in years to come.”

“We are immensely grateful to the McEwen family for this transformative gift,” said Dr. Terrance Galvin, Founding Director of the School of Architecture. Continue Reading →

NEWS RELEASE: Clusters in Ontario – Creating an Ecosystem for Prosperity ( Institute for Competitiveness & Prosperity June 29, 2016)

http://www.competeprosper.ca/

This is a highly controversial report for the people of northern Ontario as it ignores the vibrant and globally recognized mining cluster in Sudbury, Ontario. In fact, the world’s most important academic on economic clusters – Harvard University’s Michael Porter – in a 1991 report titled Canada At The Crossroads, commissioned by the Government of Canada and the Business Council on National Issues, highlighted Sudbury’s mining cluster! He did not mention the hospitality and tourism cluster in St. Catharines! – Stan Sudol (RepublicOfMining.com Publisher/Editor)

Click here for full report: http://www.competeprosper.ca/uploads/WP26_clusters_FINAL.pdf

Toronto – A new working paper from the Institute for Competitiveness and Prosperity suggests that the province of Ontario could increase its prosperity through the growth of clusters and makes recommendations on how to improve the ecosystem that fosters successful clusters including the loosening of foreign direct investment restrictions and reducing government involvement in venture capital markets.

As of 2015, the prosperity gap, measured by Gross Domestic Product (GDP), between Ontario and its North American peers stood at $12,500 per capita. This prosperity gap reflects lagging productivity. It means that the average worker in Ontario produces less output (such as goods or services) than his or her North American counterparts. If Ontario wants to close its prosperity gap and become more competitive, it must address its greatest challenge: increasing productivity. Continue Reading →

South Africa: Let’s Talk Frankly – by Phindile Xaba (All Africa.com – June 28, 2016)

http://allafrica.com/

Letters to Influential South Africans about the State of the Nation

Onkgopotse JJ Tabane’s thought -provoking, and emotionally stirring encapsulation of South Africa’ State of the Nation, in his book – Let’s Talk Frankly – Letters to Influential South Africans about the State of the Nation – is out right bravado. He publicly expresses what many probably discuss in private exchanges.

This unrelenting opinion-maker, recorder of history and an advocate of fair economic participation, was once an ANC Youth Leaguer, who left for a short-lived political career only to be propelled to the helm as a spokesperson of the ailing political party – COPE – during its formative period. A party he described as “having died before it took off”.

Like a prodigal son, Tabane returned to the home of the ANC.

He says his letters reflect a nation “hanging in the balance”. Continue Reading →

Alcoa Investors Looking for More Answers to $13 Billion Question – by Sonja Elmquist (Bloomberg News – June 28, 2016)

http://www.bloomberg.com/

Alcoa Inc. investors are hoping for more detail Wednesday on how the biggest U.S. aluminum producer will divide about $13 billion of liabilities as it prepares to split itself into two.

The question of how Alcoa’s more than $8 billion in debt and $5 billion in pension liabilities will be split among the companies is key to determining the value of the spin-offs. That will show whether Chief Executive Officer Klaus Kleinfeld can achieve his target of an investment-grade manufacturing company, renamed Arconic, and a viable aluminum-producing company retaining the Alcoa name.

Alcoa is scheduled to release before the start of regular trading Wednesday the divided companies’ legal, capital and governance structure and plans for allocating assets and liabilities. On Sept. 29, the day after the split was announced, Alcoa said it intended for the combined company’s debt to be retained by Arconic. Continue Reading →

U.S. Steel Canada sale behind-the-scenes maneuvers have workers worried – by Kelly Bennett (CBC News Hamilton – June 28, 2016)

http://www.cbc.ca/news/canada/hamilton/

Steelworkers call for government intervention in sale process

Unionized steelworkers are nervously eyeing the bidders that remain in a months-long process to buy U.S. Steel Canada and take over its Hamilton and Nanticoke operations.

One bidder has reportedly been knocked out of the running to buy U.S. Steel Canada, which has been operating under bankruptcy protection through the Companies’ Creditors Arrangement Act since 2014.

A spokesman for U.S. Steel Canada said the company “won’t discuss the identity or number of participants currently involved in the process” in order to abide by a non-disclosure agreement. But spokesman Trevor Harris said the process had winnowed out at least one party due to concerns about sufficient financial strength. Continue Reading →

More than 10% of Canadian mining and metals companies delisted in 2014/15 – by Henry Lazenby (MiningWeekly.com – June 28, 2016)

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

TORONTO (miningweekly.com) – More than 10% of the mining and metals companies listed on the TSX and TSX-V delisted during 2014 and 2015, according to a new study by professional services firm EY.

The report, titled ‘What is driving delisting in the mining and metals sector in Canada?’, found that 41% of companies delisted owing to mergers and acquisitions (M&A) activity, 33% delisted voluntarily, 33% failed to meet continuous listing requirements, and 10% delisted owning to formal insolvency proceedings.

According to EY senior VP for British Columbia mining and metals, transaction advisory services leader and report author Michelle Grant, 149 mining and metals companies delisted from the TSX and TSX-V in 2014 and, in 2015, a further 172 companies delisted. Continue Reading →

Coal Companies Spent $95 Million on Lobbying Before Bankruptcies – by Jennifer A Dlouhy (Bloomberg News – June 28, 2016)

http://www.bloomberg.com/

Five coal-mining companies spent $95 million to lobby U.S. lawmakers and more than half a billion dollars on salaries for top executives in the decade before they filed for bankruptcy, according to a report by an environmental group.

At the same time, the companies — Walter Energy Inc., Patriot Coal Corp., Alpha Natural Resources Inc., Arch Coal Inc. and Peabody Energy Corp. — benefited from a federal program that leases land for coal production at a discount. The environmental group, the Western Values Project, said in a report to be released Tuesday that the companies’ “excessive” spending shows the leases helped lobbyists and executives, not the public.

The five companies filed for bankruptcy over the past 13 months after natural gas became cheaper than coal and regulatory costs increased. Coal supplied 24.6 percent of U.S. electricity in April, compared to nearly 50 percent a decade ago. Continue Reading →

This Canadian company found the largest diamond in 100 years – by Steven Threndyle (Canadian Business Magazine – June 28, 2016)

http://www.canadianbusiness.com/

Vancouver’s Lucara Diamond is auctioning off the 1,109-carat Lesedi La Rona diamond, and investors are betting on more exceptional finds

If you own stock in Lucara Diamond Corp. (TSX: LUC), chances are the date of June 29, 2016, looms large in your calendar. That’s the day when Lucara’s monster rough diamond—1,109 carats and “roughly the size of an avocado”—is going up for auction by Sotheby’s International Jewellery Division in London, England.

News of Lucara’s discovery of the Lesedi La Rona diamond (it was named in a national contest held in Botswana and translates into “our light” in the Tswana language) has helped invigorate a mining category that has languished in the wake of a global recession, not to mention a campaign by Blood Diamond star Leonardo DiCaprio to promote synthetic alternatives to alleviate working conditions of miners in Africa. Continue Reading →