February 3, 2012 – Republic of Mining

Few changes expected if Xstrata Glencore merger deal goes ahead, union says – by Craig Wong (Winnipeg Free Pres – February 2, 2012)

February 3, 2012

This article came from: http://www.winnipegfreepress.com/

The Canadian Press

Merger talks that could result the creation of a new European giant in the global mining industry, are being watched carefully in Canada.

A union leader representing 850 mine and smelter workers in Sudbury, Ont., said Thursday he’s doesn’t expect much change if their employer — Xstrata PLC — merges with commodities trader Glencore International PLC.

“The rock ain’t moving,” Richard Paquin, president of the Canadian Auto Workers Local 598, said Thursday.

“For us it is not a new venture,” he said. “It is a matter of co-operating with the new employer if it every happens and trying to get the best we can for our workers.”

He said the Sudbury operation has already been through the uncertainty of Xstrata’s takeover of Canadian nickel and copper producer Falconbridge in 2006 after a takeover battle that lasted nearly two years.

Darwin base shows shift in U.S. priorities – by Matthew Fisher (National Post – February 3, 2012)

February 3, 2012

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

DARWIN, AUSTRALIA At first glance there was no connection between U.S. President Barack Obama’s announcement in November the U.S. was establishing a permanent base for 2,500 Marines near Darwin and U.S. Defense Secretary Leon Panetta’s revelation late Wednesday U.S. combat forces expect to quit Afghanistan early.

But there is. The announcements underscore how quickly U.S. global military priorities are shifting to the Pacific, where Beijing’s ambitions have become a white-hot issue.

The U.S. military focus is now on Asia, where a new strategic order is being established with the U.S. and Australia working closely together. Canberra’s strategic concerns were highlighted in the 2009 White Paper on defence, which concluded China was a potential direct threat and the country must have “defence in depth.”

The Sydney-based Lowy Institute for International Policy said more or less the same thing last year.

Fiery CEOs may clash in Glencore-Xstrata talks – by Eric Onstad (Reuters – February 2, 2012)

February 3, 2012

This article is from: http://www.reuters.com/

(Reuters) – As a tie-up between trader Glencore (GLEN.L) and miner Xstrata (XTA.L) is hammered out in coming days there is plenty of scope for hard bargaining between the two sides’ highly competitive South African bosses.

Glencore’s Ivan Glasenberg and Xstrata’s Mick Davis — both hard-driven, keen sportsmen who climbed the corporate ladder in the South African coal industry — have had a close and sometimes tense relationship for more than a decade. Glasenberg hand-picked Davis to run Xstrata 11 years ago. Xstrata floated in 2002, after buying up key Glencore coal assets, leaving the trader with a 34 percent stake.

“They clearly have a history together, as do Xstrata and Glencore, and I would expect nothing less than that they try to drive the best bargain for their shareholders,” said analyst Jeff Largey at investment bank Macquarie in London.

One key element of Glencore’s move on Xstrata — which is being billed as a “merger of equals” — is who gets to run the enlarged trader and miner.

[Thunder Bay Prostitution] Not going away anytime soon – Editorial (Thunder Bay Chronicle-Journal – February 3, 2012)

February 3, 2012

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

THE WORLD’S oldest profession thrives on mankind’s most basic instinct, which means prostitution is never going away. It’s certainly popular in Thunder Bay’s two downtown cores where the sex trade flourishes.
McKellar ward Coun. Paul Pugh has been forced to address the issue after people at ward meetings complained about streetwalkers in their neighbourhoods.

Pugh utters the standard political response to many social issues: We’ve got to get to the root of the problem. He’s right, of course, but eradicating the poverty and drug use that accompany much prostitution is not going to happen anytime soon. Governments that couldn’t end poverty when they were flush with cash are not about to divert the billions required in these times of austerity.

It has been suggested that prostitution and drugs be decriminalized. Controlling drugs by having them sold and taxed by government is a familiar idea. Thunder Bay’s drug strategy favours decriminalization.

Glencore, Xstrata target powerhouse mining merger – by Eric Reguly (Globe and Mail – February 3, 2012)

February 3, 2012February 3, 2012

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.

ROME—The pending marriage of Xstrata PLC and Glencore International PLC would create a mining powerhouse with both the muscle and the appetite to quickly gobble up smaller rivals.

Xstrata, which owns Canada’s Falconbridge Ltd., is in talks with part-owner Glencore aimed at an all-stock merger that would reshape the industry by uniting what is already a formidable miner with the world’s biggest commodities trader.

Xstrata said Thursday it was approached by Glencore, which already holds 34 per cent of the Anglo-Swiss miner. If a deal is struck, a giant with a market value of about $88-billion (U.S.) would be created overnight.

Both companies are run by forceful chief executive officers, both are deal-making machines on their own, and together would be a formidable takeover force that analysts believe could target companies whose market value is at least $10-billion. In its own right, it would be huge in zinc, thermal coal, nickel and copper.

Political will not enough to fuel new oil sands refineries – by John Ivison (National Post – February 3, 2012)

February 3, 2012

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

Top of the agenda for Stephen Harper when he visits Beijing next week will be the sale of Canada’s crude oil to China. The Conservative government’s enthusiasm for exporting this country’s raw resources has come under fire for perpetuating our reputation as hewers of wood and drawers of water.

New Democrats, such as leadership candidate Brian Topp, have called for raw bitumen from Canada’s oil sands to be processed at home before being sent south to the United States or to Asia.

“Canada is throwing away its economic future when we anchor our economy, our currency and our public revenues on the export of raw, unprocessed resources that can be processed here,” he said.

It is an argument that has supporters across the political spectrum. Former Alberta premier Peter Lougheed has added his voice to calls for oil sands bitumen to be refined in Alberta.

MPP [Gilles Bisson] says swap with feds would help First Nations – by Ron Grech (Timmins Daily Press – February 3, 2012)

February 3, 2012

The Daily Press is the city of Timmins broadsheet newspaper.

Growing dissatisfaction with Ottawa’s management of schools on First Nations has spurred growing support for the province taking over the responsibility, says MPP Gilles Bisson (NDP — Timmins-James Bay).

“When it comes to education (on reserves), the current federal education system is a complete failure,” said Bisson, a long-time advocate for the idea. “Kids who finish Grade 12 (on First Nations) are at a level that is three to four years behind their counterparts outside of the reserve system.

“When I first started raising this issue, most people on reserve would have disagreed with me. Now, I would say there is a majority of people who are saying this is not a bad idea.”

Bisson said he has been sharing his thoughts on the issues with chiefs, band council members and First Nation education authorities throughout the region.

Glencore in talks to buy Xstrata in blockbuster deal – by Clara Ferreira-Marques and Victoria Howley, Reuters (Sudbury Star – February 3, 2012)

February 3, 2012

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

LONDON — Commodities trader Glencore is in talks to buy mining group Xstrata in an all-share transaction that could create a combined group worth more than 50 billion pounds (US$79 billion), shaking up the industry with its biggest deal to date.

Glencore, the world’s largest diversified commodities trader, already owns 34% of Xstrata and a tie-up between the two — a deal which would trump Rio Tinto’s $38 billion acquisition of Alcan in 2007 — has long been expected, as Glencore aims to add more mines to its trading clout.

“We’ve always had the belief these two companies should be together,” Glencore Chief Executive Ivan Glasenberg told a financial conference in Moscow. Xstrata owns Xstrata Nickel, which in Sudbury employs about 1,000 people who work at Nickel Rim South mine, Fraser Mine, a mill and a smelter.

[Sudbury Vale] Workers back after fatality – by Carol Mulligan (Sudbury Star – February 3, 2012)

February 3, 2012

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

As a memorial mass is being said today for a veteran miner killed on the job, crews will start returning to five Vale mines where production was suspended after the fatality.

Stephen Perry, 47, died Sunday afternoon after being struck by rock while working on a piece of loading equipment at the 4,215-foot level of the main ore body at Coleman Mine in Levack. Hundreds of people, including about 45 family members from his native Newfoundland, were expected to attend the 10 a.m. service.

About 1,550 production and maintenance workers have been off the job, with pay, since Perry was killed. While some will start returning to work, the focus will remain on safety and not production, said Vale spokeswoman Angie Robson.

Returning workers will be “focused on tasks associated with safety and risk management, and not production-related work,” said Robson. “There is still no timeline on when our mines will return to production.”

Canadian goldbug stakes his name on McEwen Mining – by Pav Jordan (Reuters – January 24, 2012)

February 3, 2012

This article is from: http://ca.reuters.com/

TORONTO (Reuters) – Rob McEwen, the Canadian investor who founded the world’s second-largest gold producer, is putting his name on the line with his latest precious-metal venture, aiming to build his McEwen Mining into an S&P 500 company within a few years.

McEwen’s new investment vehicle is a midtier gold and silver miner formed through the combination of two other companies he leads, U.S. Gold Corp UXG.TO and Minera Andes MAI.TO.

U.S. Gold acquired Minera Andes in an all-stock deal announced in June. The enlarged company, now called McEwen Mining, is due to list in Toronto and New York on Friday with a market capitalization of some $1.3 billion.

McEwen, who helped turn Goldcorp into an industry powerhouse in the 1990s before cutting ties, has set a goal of nearly quadrupling the value of his new company to $5 billion by 2015.

NEWS RELEASE: McEwen Mining: US Gold and Minera Andes Business Combination Completed

February 3, 2012

TORONTO, ONTARIO–(Marketwire – Jan. 24, 2012) – McEwen Mining Inc. (“McEwen Mining”) is pleased to announce that the previously announced business combination (the “Combination”), pursuant to which US Gold Corporation acquired Minera Andes Inc. and was renamed McEwen Mining, has been successfully completed and closed today. The Combination was carried out by way of a plan of arrangement under the Business Corporations Act (Alberta), which was approved by the shareholders of both US Gold and Minera Andes on January 19, 2012 and the Court of Queen’s Bench of Alberta on January 20, 2012.

Shares of McEwen Mining will commence trading on the NYSE and the TSX, subject to final exchange approvals, under the symbol “MUX” on Friday January 27, 2012. Holders of Minera Andes shares will receive 0.45 of an exchangeable share of McEwen Mining – Minera Andes Acquisition Corp. for each one (1) Minera Andes share held. These exchangeable shares of McEwen Mining – Minera Andes Acquisition Corp., will also start trading on the TSX on January 27, 2012 under the symbol “MAQ”. The exchangeable shares of McEwen Mining – Minera Andes Acquisition Corp. are convertible on a one-for-one basis at any time into shares of McEwen Mining. McEwen Mining will have an aggregate of 267,084,203 shares of common stock outstanding and issuable upon the exchange of exchangeable shares.