Nickel Slump Seen Ending as China Faces Ore Import Curbs – by Jae Hur, Agnieszka Troszkiewicz and Ichiro Suzuki (Bloomberg.com – May 31, 2012)

http://www.bloomberg.com/

After slumping more than any other industrial metal, analysts and traders say the worst may be over for nickel as restrictions on shipments from Indonesia, the biggest producer, diminish a worldwide glut.

Indonesia banned some ore exports from May 6 and imposed a 20 percent tax on the remainder to spur the development of its refining industry. The nation’s output will drop for the first time in four years in 2013, slashing global supply growth to 0.2 percent, from 4.9 percent in 2012, Morgan Stanley estimates. Prices will average $20,000 a metric ton in the fourth quarter, an increase of 23 percent, the median of 16 analyst estimates compiled by Bloomberg shows.

The metal fell 13 percent this year on prospects for the biggest surplus since 2009. Morgan Stanley now predicts the glut will peak in 2012 and Barclays Plc says prices should rally toward the end of the year on strengthening demand from stainless-steel makers, the biggest consumers. The rebound may not happen until then as China runs down record ore stockpiles accumulated in anticipation of the Indonesian ban.

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NEWS RELEASE: VALE STATEMENT REGARDING CHARGES UNDER THE ONTARIO OCCUPATIONAL HEALTH AND SAFETY ACT STEMMING FROM THE FATALITIES AT STOBIE MINE IN JUNE 2011

For Immediate Release

SUDBURY, May 31, 2012 – Vale today released the following statement regarding charges issued by the Ontario Ministry of Labour this afternoon under the Ontario Occupational Health and Safety Act. The charges stem from the Ministry’s investigation into the deaths of Jason Chenier and Jordan Fram at Stobie Mine in June 2011.

“We have received and are in the process of reviewing the charges served by the Ministry of Labour stemming from the tragic deaths of Jason Chenier and Jordan Fram in June 2011. Vale has been charged with nine counts and a staff employee has been charged with six counts under the Act.

As this is a very serious matter, we need to consider the charges very carefully before we determine how we will proceed. Until that time, and as this is now before the court system, we will not be commenting further on this matter.

Our own investigation concluded that there were a number of factors contributing to the tragic deaths of Jason and Jordan.

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NEWS RELEASE: BMO – Let’s Create 4,000 Jobs Together in Sudbury by 2016

BMO releases report on outlook for economy, housing and labour market in Sudbury

– Sudbury’s unemployment rate expected to drop to 6 per cent by 2016; back to pre-recession lows

– Strong commodity demand and industry expansion will generate growth in mining sector

– Sudbury Chamber of Commerce: City is on the Move

– BMO offering support to Canadian businesses by making $10 billion in credit available over next three years

For the entire report, click here: http://www.bmonesbittburns.com/economics/reports/20120531/SR120531.pdf

SUDBURY, ONTARIO–(Marketwire – May 31, 2012) – The next four years will bring 4,000 new jobs to Sudbury, according to a new report released today by BMO Capital Markets Economics.

The report on Sudbury is the latest in a series of economic and business overviews for various cities across Canada that will be published by BMO throughout the year.

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Homestake [South Dakota gold mine] grand dame’s body donated to science – by Dorothy Kosich (Mineweb.com – May 31, 2012)

www.mineweb.com

One of the ultimate examples of the sustainability of mines-the nation’s first deep underground science lab-was formally unveiled deep in the caverns of the former Homestake gold mine.

RENO (MINEWEB) –  Nearly five years ago Mineweb told readers about plans to transform the former grand dame of U.S. gold mining, the Homestake gold mine in Lead, South Dakota, into the nation’s first national deep underground science laboratory.
 
On Wednesday, South Dakota’s Sanford Underground Research facility formally unveiled the new 4,850-foot deep Davis campus, which will seek to unravel the mystery of dark matter, and also search for a rare form of radioactive decay.
 
The Large Underground Xenon Dark Matter Search Experiment or LUX experiment, considered the world’s most sensitive and largest dark-matter detector–is the culmination of the work of 70 scientists and 14 institutions over the past four years.
 
LUX physicist Simon Fiorucci told a local TV station, “There is a lot of mass that does not emit light that we cannot account for.”

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BHP Billiton hints at Jansen potash mine delay – by Carrie Tait (Globe and Mail – May 31, 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.

CALGARY— BHP Billiton Ltd.’s (BHP-N60.84-0.72-1.17%) move to reconsider major spending plans may delay the construction of a promised potash mine in Saskatchewan, another sign the commodity “supercycle” is gearing down as slower global growth cools demand.
 
The Jansen project, estimated to cost as much as $12-billion, has the potential to become the largest potash mine in the world and is one of three major projects BHP was slated to consider for approval later this year. But comments by the global mining giant’s chief executive officer, Marius Kloppers, suggest the company could postpone such developments.
 
“You should not expect in the next six months any new major approval of projects,” Mr. Kloppers said in an interview with Caixin Media Co. “The economics of some of these projects has changed,” he said. “I think for the next two years, 18 months perhaps, we will just wait and see how things develop.”

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Brad Wall, defender of the West – by Gary Mason (Globe and Mail – May 31, 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.

When Saskatchewan Premier Brad Wall took on Thomas Mulcair – on Twitter, no less – over the federal NDP Leader’s controversial “Dutch disease” comments, he couldn’t have imagined the national debate his move would touch off.

Three weeks after the fact, the matter is still fuelling political discussion in Canada. While the resultant furor wasn’t specifically on the agenda at the Western Premiers’ Conference in Edmonton this week, it certainly provided a compelling backdrop for the gathering.

Perhaps more than anything, the affair seemed to confer on Mr. Wall a role with which he seems entirely comfortable: protector of the West. Given that he is the senior statesman among a group of Western premiers who have very little experience in their positions, he was the likeliest candidate for the part in any event.

Mr. Wall’s decision to tweet his feelings about Mr. Mulcair’s position was hardly some impulsive, late-night, regret-later move carried out with a glass of wine in his hand. Rather, it was a response to frustration that had been building for months.

It started, he says, when he learned that a delegation of NDP MPs was heading to Washington to “get in the way” of efforts

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Ecuadorans seek $18.2 billion damage judgment against Chevron in Ontario courts – by John Spears (Toronto Star – May 31, 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.

A group of 30,000 Ecuadorans who won an $18.3 (U.S.) billion judgment against the oil giant Chevron in Ecuador for polluting the rainforest are asking Ontario’s courts to help them collect.

But the company is not yielding quietly in the two-decades-old case, claiming that the legal actions against it are a “multi-billion-dollar scam.” A Chevron executive has accused lawyers and consultants for the plaintiffs of trying to “extort a multi-billion dollar payment from Chevron through fabricated evidence and a campaign to incite public outrage.”

The Ecuadorans’ Canadian lawyer Alan Lenczner says he’s not re-trying a case that’s already been decided, however – he’s simply trying to enforce a judgment rendered in Ecuador.

The Ontario claim, filed Wednesday, hasn’t been tested in court. Statements of claim are subject to challenge, and material may be amended or deleted. The claim names Chevron Corp., Chevron Canada Ltd. and Chevron Canada Finance Ltd.

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Boom goes Sudbury – by Mike Whitehouse (Sudbury Star – May 31, 2012)

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

The next four years will bring 4,000 new jobs to Sudbury, an economic forecast released Wednesday predicts, but it will not be your grandfather’s economic boom.

The forecast, from the economists at BMO Capital Markets Economics, predicts the kind of rapid, game-changing growth for Sudbury last seen in Alberta — both good and bad — its authors say.

Sustainably strong commodity prices coupled with the maturation of Sudbury’s economy — clearly the centre of Northern Ontario’s booming mining cluster — will lead the way, says Robert Kavcic, an economist at BMO Capital Markets. “Employment in Sudbury has recouped all of the declines suffered during the recession,” he said.

“The city’s small labour pool makes statistics like the jobless rate volatile, but the underlying trend is clearly improving.” Even at 7%, Sudbury’s jobless rate remains below Ontario’s, a feat achieved in 2007, and a stark turnaround from about 15 years of a consistently high local unemployment rate, he said.

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Axing outdated views: Mining Week gets an overhaul in Sudbury – by Lindsay Kelly (Northern Ontario Business – May 2012)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

When it comes to modern-day mining, the pickaxe and shovel are out and robots and technology are in.

It’s a message the organizers of Sudbury Mining Week worked hard to promote this year as students from across the city participated in the annual event designed to raise the awareness of the importance of mining to the area and enhance its profile amongst would-be future miners.

The shift from traditional mining to a high-tech version has been occurring over a number of years, but many in the community aren’t aware of it, said Nicole Tardif, Sudbury Mining Week chair. The city needs to change long-held, outmoded perceptions of the industry if it wants to interest the next generation in mining as a viable career option.

“We have all these great companies and all these great things that are happening in our city,” Tardif said. “If we want those to continue when our baby boomers retire, who better to replace them than the people who have grown up in this area?”

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AngloGold Ashanti plans for a mining renaissance – by Dick DeStefano (Sudbury Mining Solutions Journal – June 1, 2012)

 Dick DeStefano is the Executive Director of Sudbury Area Mining Supply and Service Association (SAMSSA). destefan@isys.ca This column was originally published in the June, 2012 issue of Sudbury Mining Solutions Journal.

“The future of mining underground will change dramatically in the next few years and suppliers need to be ready for the shift”

SAMSSA Members were recently treated to a special strategic plan regarding the mine of the future by Michael MacFarlane who  is a Senior Vice President with AngloGold Ashanti which is a leading gold mining company, headquartered in Johannesburg, with a portfolio of 21 operations spanning 10 countries.  Born and educated in Canada, Michael holds a Bachelor of Engineer degree in Mining.  He previously worked for Vale Inco for 16 years in Canada where he was Director for Mining and Milling for their Canadian operations.  He became Senior Vice President with AngloGold Ashanti in 2010.

Mike was asked a number of key questions about this evolving mining event worldwide.

1. What is the key assumption you are using as a premise for the mine of the future?

Our specific view is what I had presented to SAMSSA members and addresses our deep gold mining issues in South Africa.  We are working to unlock more than 70 million ounces of ultra deep resource.  The problem we are solving is how to mine all the gold – only the gold, all the time.  My presentation was specific to technology to address these main value drivers.

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Anvil acquisition helps Minmetals turn the corner in Congo – by Geoffrey York (Globe and Mail – May 30, 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.

KINSEVERE, DEMOCRATIC REPUBLIC OF CONGO – Three months after a $1.3-billion takeover, the new owners of Anvil Mining Ltd. have posted an ambitious business plan on the wall of their Congo mining office.
 
At the top of the list: “savvy acquisitions” – with the goal of becoming one of the world’s three biggest mid-tier miners and creating a $20-billion global player. And the former Canadian-owned copper mine in Congo is crucial to the strategy.

Anvil’s acquirer, China Minmetals Corp., has learned its Canadian lessons well. Eight years ago, the state-owned company ignited a firestorm of controversy in Canada with its clumsy bid for Noranda Inc., sparking fierce criticism from Canadian politicians and leading to the eventual failure of the bid.
 
This time its expansion drive is shrewd and carefully planned. Anvil will become the springboard for Minmetals’ aggressive growth plan, which is focused primarily on Africa – especially the risky but mineral-rich terrain of Congo.

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NDP leader Tom Mulcair invades enemy territory – by Tim Harper (Toronto Star – May 30, 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.

OTTAWA – Tom Mulcair brazenly parachutes into enemy territory Wednesday. The NDP leader is backed only by a tiny band of subversives, his energy critic, Peter Julian, his environment critic and deputy leader, Megan Leslie, and his lone Alberta MP, Linda Duncan.
 
As he journeys to Fort McMurray, he drags with him accusations he is “lecturing” Alberta on the oilsands, is seeking to divide the country and is carving up the nation in some Ottawa bunker, pitting region versus region, rubbing his hands in glee as he counts central Canadian seats on his way to forming the next government.
 
He is on the agenda of the western premiers’ meeting in Edmonton and is the subject of a politically motivated government motion condemning him in the British Columbia legislature.
 
Enough already with the wedge politics. Mulcair is a federal leader and, as such, he has the right — indeed, the obligation — to question federal environmental policies.

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Anti-mining violence escalates in Peru – by Peter Koven (National Post – May 30, 2012)

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

TORONTO — Miners in Peru are operating under another black cloud this week after a wave of anti-mining protests turned violent and prompted the government to declare a state of emergency.
 
At least two people were killed and dozens more injured in protests against Xstrata PLC’s Tintaya mine, which is located in Espinar province in southern Peru. The protesters claim the mine has polluted two rivers, a charge Xstrata denies. Sources said that there are socio-economic factors behind the outbreak of violence as well.
 
There has been significant anti-mining violence in Peru since President Ollanta Humala – a moderate leftist who supports mining — took office last year (it was also an issue under Alan Garcia, his predecessor).
 
In recent months, protesters have successfully disrupted development of Newmont Mining Corp.’s US$4.8-billion Conga project, as well as Southern Copper Corp.’s Tia Maria project and Bear Creek Mining Corp.’s Santa Ana project. At least 10 people died in those actions, according to reports.

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Aging Canadian population an economic [mining sector] opportunity for youthful First Nations – by John Ivison (National Post – May 29, 2012)

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

The new census results reveal a challenge could put the brakes on Canada’s economic growth for years to come. Yet they also present an opportunity for the country’s First Nations to secure for themselves a future less dependent on welfare and hand-outs.
 
The new data show the Western provinces are aging more slowly than those in the East, in large part because of burgeoning native populations. Saskatchewan was the only province to see the proportion of over 65s fall in the last five years, thanks to its growing aboriginal communities.

Canada is facing labour shortages and most of its slack supply, such as the east coast provinces, has already been tapped. A study by Raymond James Investments earlier this year suggested cost inflation because of lack of available labour will be the major constraint on growth in the oil sands.
 
The Canadian Energy Research Institute has estimated the oil sands will require more than 450,000 positions filled across Canada annually. The challenge is clear – to marry the one remaining pool of slack supply – the aboriginal community – to the jobs that desperately need to be filled.

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MiningWatch Canada: Plan Nord: The North challenges Charest government – by Frédéric Dubois (May 28, 2012)

http://www.miningwatch.ca/home

Frédéric Dubois is a Montreal-based reporter and producer. His attendance to the Forum Plan Nord 2012 has been made possible with the support of Mining Watch Canada.

The month of May is almost over. In Quebec it’s been a month marked by massive student demonstrations, mass arrests and tens of thousands of kids in pajamas and septuagenarians on their balconies hitting wooden spoons on pots and pans. May 2012 will be remembered in Québec as a month where a strong 3-month student strike turned into a general social movement.
 
The month of May may also prove to be a game-changer for the mining industry in Québec. Underreported in the mainstream media, one event should be looked at to understand why opposition to Charest’s aggressive resource extraction agenda has shifted in Québec. The Forum Plan Nord 2012 – The North Matters took place in Québec City at the beginning of May. The event brought together about 300 people from distinct sectors – environmental groups, women groups, First Nations communities, universities, unions, and many more.

Even a few civil servants and company representatives attended. But unlike most conferences about mining, this one was organized by a First Nations group. The Sustainable Development Institute of the First Nations of Québec and Labrador timed the conference to underline the first anniversary of Jean Charest’s unilateral announcement of the Plan Nord.

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