September 17, 2012 – Republic of Mining

Correction – Noront Resources Environmental Assessment NOT on hold – by Shawn Bell (Wawatay News – September 17, 2012)

November 3, 2015September 17, 2012

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

The environmental assessment (EA) for Noront Resources’ Eagle’s Nest Ring of Fire project is nearing completion of its Terms of Reference.

In a Wawatay News article (Ring of Fire judicial review hits more delays, Sept. 13) it was reported that Noront’s EA has been put on hold. That is incorrect. In fact, the company is close to completing its Terms of Reference for the EA.

Noront President and CEO Wes Hanson submitted the following statement to Wawatay News following publication of the article:

“The Environmental Assessment for it’s flagship Eagle’s Nest project is in fact underway and NOT delayed due to the change in the road route proposed by Cliffs and the Ontario Government. The Company is currently completing the final copy of the Terms of Reference, which outlines the work that needs to be done in order to complete the Environmental Assessment.

Australia miners slam brakes on huge pipeline of projects – by Sonali Paul (Reuters – September 13, 2012)

September 17, 2012

http://in.reuters.com/

MELBOURNE, Sept 13, 2012 (Reuters) – A $246 billion pipeline of planned mining investments in Australia is on increasingly shaky ground, with nearly half already frozen or likely to be delayed, as miners and lenders wrestle with high costs and sliding revenue.

A sharp fall in iron ore and coal prices, driven by a drop-off in demand from China, has caught many by surprise and forced miners — from the world’s largest, BHP Billiton , down to the smallest — to review their investment plans.

“Anyone who was expecting to bank a project at the levels we were at about eight weeks ago had unrealistic expectations,” said Michael Blakiston, a partner at law firm Gilbert+Tobin, which advises miners and is a director of iron ore company Sundance Resources.

The commodities rout has thrust Australia into a debate over whether the mining boom is over and can no longer be relied on to create jobs, power growth and raise tax revenue in a $1.4 trillion economy that has gone 21 years without a recession. Dumping projects will mean millions of tonnes of future coal and iron ore supplies are stripped from the world market, laying the ground for a swifter price revival if Asian demand rebounds.

South Africa warns mine unrest could spur recession – by Justine Gerardy (Globe and Mail – September 17, 2012)

September 17, 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.

JOHANNESBURG — Agence France-Presse – South African police barred firebrand Julius Malema from a rally of striking miners Monday, as President Jacob Zuma warned that the country could ill-afford a recession over mine stoppages.

Mr. Zuma told a conference of the country’s powerful Cosatu labour group that 4.5 billion rand ($548-million U.S.) had been lost in gold and platinum production this year and a further 118 million rand lost in the coal sector. “The impact goes beyond the mining sector,” he cautioned, saying the manufacturing sector was showing strain.

“We cannot afford to go into a recession, and revert to the 2008 and 2009 period where the country lost close to a million jobs, which we are still battling to recover.” The warning came as British mining group Lonmin PLC cut its platinum sales forecasts over the continuing strike at its Marikana mine, which has been blighted by a violent strike that has crippled production for more than a month.

Lonmin became the epicentre of a wave of unrest to hit the vital mining sector in recent weeks, with tensions forcing several firms to suspend operations in the country’s platinum belt of northwestern Rustenburg. The striking miners at the Marikana mine meanwhile have accepted for the first time to lower their monthly salary demand of 12,500 rands, the mediator in the dispute said Monday.

NEWSRELEASE: Canadian Arrow Commences Nickel Production, Discovers New Nickel Massive Sulphides at Kelex

September 17, 2012

SUDBURY, ON, Sept. 17, 2012 /CNW/ – Canadian Arrow Mines Limited. (CRO: TSX-V) (the “Company”) is pleased to announce it has commenced producing and stockpiling nickel-bearing massive sulphides produced from its Kelex mine. Furthermore, initial mine development and overburden stripping have exposed unexpected near-surface nickel-bearing massive sulphides extending both east and west along strike of, and continuous with, the current production zone. The stripping program will continue to further evaluate the discoveries that continue to project an unknown width, depth and strike distance below overburden cover. Channel sampling is planned once the extent of mineralization is exposed. Results will be published as they become available.

Mr. Kim Tyler, President of the Company stated, “We are pleased to have achieved the production milestone and are particularly excited about the discovery of the new strike extensions. Development work intended for ramp access in unmineralized rock unexpectedly encountered 2 metres of solid nickel-bearing massive sulphide on the sparsely drilled flanks of the known mineralization. The new mineralization will be a welcome addition to our production plans and demonstrates greater continuity of the Alexo Nickel Complex mineralization on the whole.”

Widths of up to 3 metres of continuous massive and semi-massive sulphide over a 22 metre extended strike length on the west and 13 metres of extended strike on the east have so far been exposed. Depth extensions will become better understood as production advances to depth.

Conflicting [Ontario junior miner] decisions call duty to consult [First Nations] into question – by Jennifer Brown (Canadian Lawyer Magazine.com – September 17, 2012)

September 17, 2012

http://www.canadianlawyermag.com/

Junior mining company granted leave to appeal over injunction motion

A decision by the Ontario Superior court to grant leave to appeal an interim injunction obtained by a First Nation against a junior mining company could have significant implications for the resource industry, First Nation communities, and government.

On Sept. 4, the Ontario Superior Court granted leave to appeal [see attached pdf] an injunction obtained by the Wahgoshig First Nation against prospecting company Solid Gold Resources Corp., based in Thornhill, Ont.

Justice Wilton-Siegel granted Solid Gold leave to appeal a Jan. 3, 2012 injunction order from Superior Court Justice Carole J. Brown, who ordered all activity by Solid Gold stop for 120 days and they enter into consultation with the province and the First Nation regarding any further activity.

However, Wilton-Siegel ruled there is reason to doubt the correctness of the January order. He pointed to the Supreme Court of Canada decision in Haida Nation v. British Columbia, which determined third parties do not hold the Crown’s duty to consult.

Aboriginal consultant is key Ring of Fire point man – by Donna Faye (Northern Ontario Business – September 2012)

September 17, 2012September 17, 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.

After nearly a year in his role as Ring of Fire senior director for Webequie First Nation, Michael Fox says he is encouraged by the progress of the emerging mineral development project.

It has been more than two years since the Ontario government announced it would be opening up the large chromite deposit in the James Bay lowlands to development. “The lesson that I’ve learned is that there is always going to be politics,” he said.

“You have to deal with the politics, then the process, and then the project.” Fox’s job is not an easy task. He is responsible for consulting with the community closest to the discovery areas in the Ring of Fire with respect to the potential opportunities its members stand to gain.

Webequie First Nation is a remote, fly-in community of 600, situated 540 km north of Thunder Bay. It is west of where Cliffs Natural Resources wants to build a mine at its Black Thor chromite deposit, the largest of its kind in the world. With a 2015 production startup date, hundreds of construction, mining and transportation jobs will be created.

Ring of Fire sparks Chinese interest in mining – by CBC News Thunder Bay (September 17, 2012)

September 17, 2012

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

Chinese company Sinocan expected to start drilling near Webequie next month

Chinese diplomats are intent on building trust with northern Ontario First Nations to further their mining interests, according to a Chinese-Canadian business man.

Peng You, a Thunder Bay resident with ties to China, helped facilitate a recent visit by China’s Consulate-General to Webequie First Nation. He said the arrival of one of China’s top diplomats in Canada is significant.

“I think that part is very important. It’s not just for one company. In future, more companies [will] invest in northwest Ontario, especially in [the] mining industry.” Webequie is one of the First Nations closest to a promising chromite deposit in the James Bay lowlands.

For months, US-company Cliffs Natural Resources has been the focus of discussions about development in the Ring of Fire. But the Chinese company Sinocan is expected to start drilling near Webequie next month. Peng You said soon chiefs and elders from northwestern Ontario could be on their way to China to talk about the Ring of Fire as part of a diplomatic exchange.

Ivory Coast plans windfall tax on gold miners’ profits – by Loucoumane Coulibaly (Globe and Mail – September 14, 2012)

September 17, 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.

ABIDJAN — Reuters – Ivory Coast plans a windfall tax of 19 per cent on gold mine profits to share in the benefits from soaring world prices for the metal. The decision, revealed in a government document, sets the scene for a possible dispute with foreign companies building up the sector.

West Africa-focused Randgold Resources Ltd., Australia’s Newcrest Mining and Toronto-listed La Mancha Resources all operate mines in the country. In August, the government granted production permits to Canada’s Endeavour Mining Corp. and Occidental Gold, a unit of Australia’s Perseus Mining Limited.

The document, seen by Reuters on Friday, also establishes a rate of 13 per cent, though it does not specify in what circumstances it will be applied. Under the proposal, submitted on Wednesday and adopted during a cabinet meeting, the West African nation will set an indicative cost of production at $615 (U.S.) per ounce, with profits taxed at a rate of 19 per cent.

“The price of gold, which was around $300 per ounce in 2002, is today above $1,700, or practically a six-fold increase without any comparable increase in production costs,” read the text of the proposal obtained from government spokesman Bruno Kone.

NEWS RELEASE: VALE CONCERT SERIES RAISES $17,500 IN SUPPORT OF THE SUDBURY FOOD BANK

September 17, 2012

For Immediate Release

SUDBURY, September 17, 2012 –Vale is pleased to announce that as a result of the ‘Vale Concert Series’, $17,500 was raised in support of the Sudbury Food Bank.

The series of five concerts began in May and was held throughout the summer at The Grace Hartman Amphitheatre. Admission to the community was free with monetary donations to the Sudbury Food Bank welcomed.

“This was the first event of its kind for Vale and we were thrilled with the outcome,” said Angie Robson, Manager of Corporate Affairs for Vale’s Ontario Operations. “We thank everyone who came out to hear some great Canadian music while at the same time giving so generously,” added Robson.

Past concerts featured Dave Gunning, Hemingway Corner, the Marigolds, Wendell Ferguson and Katherine Wheatley. The final concert, featuring Murray McLauchlan and Cindy Church, drew a crowd of more than 1,200 local residents. It is estimated that in total, approximately 3,500 people attended the five concerts.

North Shore nickel property reconfigured for future operations – by Lindsay Kelly (Northern Ontario Business – September 2012)

September 17, 2012

The year 2011 was a tough one for Ursa Major Minerals.

Last June, a dissenting group of stakeholders sought to replace the board due to a lagging performance on the TSX. Their advances were rebuffed, but then operations at the company’s Shakespeare property west of Sudbury were halted when a processing agreement couldn’t be renegotiated with Xstrata Nickel for the use of its Strathcona Mill.

That’s where things stood until July when Ursa merged with Prophecy Platinum Corp., and now the discord has been laid to rest, according to Prophecy’s president and CEO John Lee. With a vote of 98.9 per cent in favour of the merger, stakeholders showed a vote of confidence in having a larger company carrying the project forward, Lee said.

“I wouldn’t say we’re one happy family…but I think we’ve comfortably put all that behind us and reunited in a way to look for ways to advance Prophecy Platinum going forward,” he added. Now the company is refocusing its efforts on Shakespeare, a nickel-copper-PGM interest located 70 km west of Sudbury near the town of Webbwood. Lee said the company is concentrating on “clearing up the accounts payable” and putting out an updated resource estimate based on the drilling that’s occurred in the last year.

Mining investment to grow ever more complex, costly, industry leaders fear – Baker & McKenzie – by Dorothy Kosich (September 17, 2012)

September 17, 2012

www.mineweb.com

“Mining jurisdictions must consider their competitiveness to mining investment or risk that investment being deployed elsewhere, said David Ryan of Baker & McKenzie, Australia.

RENO (MINEWEB) – A survey of 300 mining industry leaders released Monday by the Baker & McKenzie, Australia, Global Mining Group found the common theme across all jurisdictions surveyed is that “investing in mining is becoming more difficult and less certain.”

Key themes from the study include the complexity of the legal and regulatory environment, political stability, increase in resource nationalism, and the need for access to infrastructure and skilled labor.

One theme that all jurisdictions seemed to have is common is that a majority of respondents said they believe that mining sector investment will continue to be more complicated in the future.

Baker & McKenzie surveyed more than 300 senior mining industry leaders across six key mining jurisdictions-Australia, Brazil, Canada, Indonesia and South Africa-for the report Mining investment-local challenges, global implications.