July 9, 2012 – Republic of Mining

Ernst & Young NEWS RELEASE: Resource nationalism remains number one risk for miners

July 9, 2012

Click here for: Ernst & Young: Business Risks Facing Mining and Metals – 2012-2013

SYDNEY, MONDAY 9 JULY 2012 – Resource nationalism remains the number one risk for mining and metals companies around the world, as ranked by Ernst & Young’s annual Business risks facing mining and metals 2012-2013 report, released today.
The global skills shortage and infrastructure access retained second and third spots respectively in the risk rankings this year, as more and more countries experience these constraints. Rapidly escalating costs have pushed cost inflation up from number eight to four.

Ernst & Young Global Mining & Metals Leader Mike Elliott says resource nationalism is now a bigger challenge than it was 12 months ago, at a time when the myriad of risks facing the sector have become increasingly complex and critical.

“Resource nationalism retains the number one risk ranking with many governments around the world going beyond taxation in seeking a greater take from the sector, with a wave of requirements introduced around mandated beneficiation such as bans on the export of unprocessed raw materials, as well as export levies and limits on foreign ownership,” says Elliott.

“There is no doubt projects around the world have been deferred and delayed, and in some cases investment withdrawn altogether because of the degraded risk/reward equation.”

Landsdowne House blocks route to Ring of Fire – by Jon Thompson (Kenora Daily Miner and News – July 7, 2012)

July 9, 2012

http://www.kenoradailyminerandnews.com/

Neskantaga First Nation (Lansdowne House) is throwing up a legal stop sign on the proposed road into the Ring of Fire.

The First Nation filed a legal intervention with the Mining and Lands Commissioner on Thursday, claiming the province has delayed consultation while it makes announcements on the 400-kilometre route into the chromite deposit on Neskantaga’s traditional lands. If the legal challenge is accepted, it could halt construction on the only road into the Ring of Fire, delaying the entire project.

The band’s legal counsel, Matthew Kirchner, said his clients are entitled to consultation before the government approves projects in their traditional territory.

“They have constitutional rights to respect the land. That’s confirmed under Treaty 9. The Neskantaga also assert that they didn’t extinguish their rights under the Treaty,” he said. “Because of the constitutional protection of those rights under Section 35 of the constitution, they’re entitled to be consulted before there’s a crown decision made that might affect those rights. It’s a constitutional duty on behalf of the crown to consult and if appropriate, accommodate them.”

Quebec rail plan stirs hope, concern in Canada’s iron belt – by Susan Taylor and Julie Gordon (Reuters – July 9, 2012)

July 9, 2012

http://in.reuters.com/

* Canadian National project backed by Quebec pension fund

* Railway needed for mine projects to proceed

* Junior miners fear transport costs may run too high

* Some miners discuss developing their own railway

* Project part of Quebec’s 25-yr plan to develop north

TORONTO, July 9 (Reuters) – Canada’s biggest railroad wants to build a C$5 billion ($4.8 billion) rail line to ship iron ore from isolated northern Quebec to port, a crucial link that could transform Canada into the world’s third-largest producer of steel’s main component.

Canadian National Railway Co’s ‘s 800-kilometer (500 mile) project, backed by Quebec’s public pension fund, is still years away from becoming a reality. Indeed, the 2017 projected start-up date looks ambitious, given the complexity of negotiations that lie ahead.

Bolivia’s Morales threatens to “nationalize” Malku Kota silver project – by Dorothy Kosich (Mineweb.com – July 9, 2012)

July 9, 2012

www.mineweb.com

Fresh off the expropriation of the Quinto smelter, Bolivia’s president has now set his sights on the troubled Malku Khota project, a target of violent protests and kidnappings.

RENO (MINEWEB) – Bolivian President Evo Morales reportedly told a farmers’ group Sunday that Bolivia will consider nationalizing South American Silver’s silver property. Morales stressed he had not made a final decision on whether or not to revoke the concession for the Malku Khota project, Reuters reported.

“Nationalism is our obligation, I already raised the issue of nationalizing [the Malku Khota project] last year, and I told [local residents] to reach an agreement, because when they want, we’re going to nationalize,” he said.

In a statement Sunday, South American Silver said Bolivian authorities “continue in their efforts to restore peace and order to the Malku Khota region in the face of acts of aggression being perpetrated against law-abiding local indigenous communities, police, the company’s employees and its local contractors.

Kicking up some dust over Quebec’s Asbestos loan – by Antonia Maioni (Globe and Mail -July 9, 2012)

July 9, 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.

Asbestos looms large in Quebec politics. Both the ore and the town it created have been mired in controversy, most recently the announcement of a $58-million loan to help reopen the fabled Jeffrey Mine. On the line are 400 full-time jobs in a region dependent on the industry for more than a century, despite clear warnings about the persistent health and environmental danger of asbestos, a fibre that provides superior insulation but that in some forms has been linked to cancer.

While the industry has suffered a dramatic decline worldwide because of these concerns, Canada continues to actively promote its trade and defy multilateral efforts warning of its hazards. Asbestos is already banned in most countries that Canadians consider their peer group: the European Union, Australia, Japan. In the U.S., the industry is entangled in extensive litigation, bankruptcy filings and class-action suits. The export targets are, instead, countries such as China and especially India, where building booms are fuelling demand for asbestos for use in cement and infrastructure.

The fallout from the announcement reflects a decades-long conflict between the industry and health experts, but also larger questions about the trade-off between local jobs and public health, and the tension between money and science.