Twitter

Day: February 4, 2013

The Duluth [nickel/copper/PGMs] monster – by John Chadwick (International Mining – February 2013)

http://www.im-mining.com/

John Chadwick looks at the Duluth Complex and in particular the leading positions of PolyMet and Duluth Metals. Duluth has described the complex as holding “one of the world’s largest undeveloped strategic metals deposits of it’s kind”

Duluth Metals massive potential in Minnesota was described in the December 2012 Leader. Let’s take a more detailed look at what is there. The industry has perhaps not yet realised the magnitude of the work being done and discoveries made by Duluth Metals here.

Duluth Metals’ strategy is to “systematically explore and develop copper-nickel-PGM deposits in the north of the US State of Minnesota.” With its partner Antofagasta (which holds 40%, with Duluth holding 60%) it is progressing Twin Metals Minnesota’s project through feasibility into production.

Twin Metals is focused on three deposits, Spruce Road, Maturi and Birch Lake (running northwest to southeast) in the northern part of the Duluth Intrusive Complex. These deposits are located in a zone of copper-nickel-PGM mineralisation occurring near the base of the complex at depths of 130 m to 1,300 m. Bechtel will deliver a very detailed prefeasibility study (enabling fairly quick progress to a BFS) in 2014. Bechtel Engineering was instructed to prepare the NI-43-101 PFS on the Twin Metals (formerly known as Nokomis) project based on the following parameters:

■ A vertically integrated mining complex

■ Large scale phased underground mine plan and development

Read more

NEWS RELEASE: KWG, Bold Ventures Join Forces to Drill Black Horse Chromite Discovery to Determine Economic Feasibility

TORONTO, ONTARIO–(Feb. 4, 2013) – KWG Resources Inc. (TSX VENTURE:KWG) announces that it has agreed to fund Bold Ventures Inc. (“Bold”) as the Operator to drill off the Black Horse chromite discovery, commencing with an initial program starting as soon as the transaction with Bold closes. The intent of the program is to determine whether this chromite mineralization occurs in sufficient quantity and quality to demonstrate the feasibility of mining it and transporting it to market by rail via the claims of KWG subsidiary Canada Chrome Corporation.

“The Black Horse discovery encountered 55 meters of 45% chromite, the richest drill core recovered in the Ring of Fire,” said KWG President Frank Smeenk. “There is compelling geological and geophysical evidence to suggest that this mineralization could be part of an extensive continuous emplacement. If this drilling program is able to confirm that, we would wish to be the first Canadian companies to develop markets for the Ring of Fire chromite by providing transportation over Canada Chrome Corporation’s contiguous claims.”

Bold recently concluded a four-stage option to acquire the Black Horse claims from Fancamp Exploration Ltd., subject to Fancamp retaining a price-variable gross metal royalty (the “Fancamp Option”). Under the terms of an agreement now concluded between KWG and Bold Ventures, KWG can acquire up to 80% of Bold’s interest in the Fancamp Option by funding 100% of Bold’s earn-in expenditures and option payments. The current program has budgeted $2 million to drill the chromite horizon. An additional $1 million has been budgeted to drill a contiguous possible nickel target.

Read more

Glencore’s Glasenberg Seen Eyeing Anglo After Xstrata – by By Matthew Campbell & Jesse Riseborough (Bloomberg.com – Feb 4, 2013)

http://www.bloomberg.com/

What will Ivan do next? That’s the question likely to percolate amid seaside cocktails in Cape Town this week as mining executives gather for a four-day industry confab of speeches and discreet meetings.

Ivan, as everyone calls him, is billionaire Ivan Glasenberg, chief executive officer of Glencore International Plc. (GLEN) Next month he’s due to close a $37 billion takeover of Xstrata Plc (XTA), creating the world’s fourth-largest mining company. While he isn’t scheduled to address the annual Investing in African Mining Indaba conference, his outsized role in the industry almost guarantees speculation about his next move.

It could be a whopper. Glasenberg, 56, may consider a long- speculated takeover of Anglo American Plc (AAL), according to people familiar with his thinking. The $43 billion mining giant trades at the cheapest level relative to profit of any rival, data compiled by Bloomberg show. Also on his mind: Smaller deals such as a purchase of Eurasian Natural Resources Corp. (ENRC), which has operations in the Democratic Republic of Congo that complement Glencore’s, said the people, who asked not to be identified because the matter is private. First Quantum Minerals Ltd. (FM) is also a candidate, according to Sanford C. Bernstein & Co.

“I don’t see why Glasenberg shouldn’t try this again with another target,” said Paul Gait, a mining analyst at Bernstein in London. “If Glasenberg wants to continue expanding, he has two choices: double down on the Congo via the ENRC or First Quantum route and be a third-world miner, or set up a lower political-risk entity by merging the Anglo and Xstrata operating assets.”

Read more

Document reveals experience of Canadian mine applicants – by Michael Smyth (Vancouver Province – February 3, 2013)

http://www.theprovince.com/news/index.html

Chinese-owned Tumbler Ridge operation received about 300 resumés

The Chinese company that wants to set up an underground coal mine near Tumbler Ridge said it tried – and failed – to find qualified Canadians to work in the mine. But after the company was forced in court to produce about 300 resumés submitted by “unqualified” Canadian job applicants, critics are scoffing at the claim.

“There were obviously qualified Canadians who applied for these jobs, and they were simply rejected,” Brian Cochrane of the Union of Operating Engineers told me Saturday. “Qualified Canadians are being denied jobs developing Canada’s own resources,” Cochrane said.

“It’s outrageous.” HD Mining International received approval from the federal government to bring hundreds of Chinese coal miners to B.C., after Ottawa accepted the company’s argument that no Canadians could do the work.

The Operating Engineers and another union, the Construction and Specialized Workers, challenged the company and the government in court. Last month, the company turned over to the unions hundreds of resumés from rejected Canadian job applicants.

Now, in a document filed last week in federal court, the public is getting its first glimpse at the qualifications of Canadians who applied for jobs with the Chinese company. “There were trained and certified underground miners who applied for these jobs,” said Cochrane.

Read more

Tribal leader says lawmakers have failed to discuss mining concerns – by Lee Bergquist (Milwaukee-Wisconsin Journal Sentinel – February 2, 2013)

http://www.jsonline.com/

The Bad River Band of Lake Superior Chippewa took legislators to task on Friday for their failure to reach out to tribal leaders and discuss a proposed iron ore mine in northwestern Wisconsin.

A letter from tribal chairman Mike Wiggins Jr. said that lawmakers have failed to engage in “government-to-government consultation” with the tribe. He said members of the Legislature have met “wealthier, nontribal communities in the north while making no effort to visit affected Native American communities.”

Wiggins reiterated his previous opposition to Republican-backed legislation that he says weakens protections for wetlands, navigable waters and groundwater.

Assembly and Senate committees will vote on the GOP bill on Wednesday. The proposed mine would be constructed in portions of Ashland and Iron counties in the Bad River watershed.

The tribe’s reservation is located downstream, and leaders have expressed concern that mining activity will degrade water quality and harm water resources, including wild rice beds.

Tribes operate their own government. In Bad River’s case, it has received approval from the U.S. Environmental Protection Agency to administer its water quality program and set standards. The EPA would enforce those standards.

Read more

Minnesota’s mining not an economic panacea – by Lee Bergquist (Milwaukee-Wisconsin Journal Sentinel – February 2, 2013)

http://www.jsonline.com/

Mining could be a huge economic boost for the state, say proponents of an iron ore mine in northwestern Wisconsin. But it hasn’t been a cure-all for the big iron ranges of Minnesota and Michigan.

The areas rank below average in median household income for their states, and their economies have often struggled despite dominating iron ore production in the United States. The ore, processed into taconite pellets, is a staple for making steel at Midwestern mills.

In Wisconsin, many hope that a new iron ore mine in Ashland and Iron counties can rekindle the glory days, when cities such as Hurley buzzed with commerce and night life notoriety. “We’ve all dreamed for the past 50 years what would happen if a mining company came back to Hurley,” Gary Pelkola, owner of the Iron Nugget bar in Hurley, recently told a legislative committee in Madison.

“We now have a chance to make Wisconsin iron mining a dream come true.” If Gogebic Taconite gets the mining bill it wants from the Wisconsin Legislature, and receives regulatory approval, the company said it will spend $1.5 billion to construct an open pit mine that, in time, will stretch for four miles over an ore-rich ridge in the two counties. An adjoining factory would process the ore into pellets.

The mine, with 700 workers, would be a massive operation in an area of forests and a smattering of private properties. It would represent the biggest investment in decades – perhaps ever – for an area that is older, poorer and less educated than the state average.

Read more

Canada’s African adventure takes a colonial turn – by Doug Saunders (Globe and Mail – February 2, 2013)

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.

What do we call the thing Canada is doing in Africa?

It involves our largest corporations, the federal government, public- and private-sector aid agencies, and sometimes the military. And their activities are increasingly connected, sometimes by choice, often by force of circumstance.

This week saw Ed Fast, the Minister of International Trade, touring some of the scores of city-sized mining, oil and infrastructure developments that Canada is creating in Nigeria and Ghana, and the development and aid activities that we’ve brought in to surround them. He’s the third cabinet minister to visit those countries since October.

If you follow his steps, you realize Canada is no longer simply “doing business” or “providing aid” in Africa. What we’re doing is something that bears a striking resemblance to the things Britain and France were doing in Canada two centuries ago.

First came the exploiters, in search of mineral wealth. Though most Canadians don’t realize it, Canada is now the largest foreign mining operator in the continent, exceeding even China: We have almost $25-billion in investments in hundreds of huge projects. Our petroleum companies are gigantic players, too.

Read more

The struggle over ‘duty to consult’ with aboriginals – by Jeffrey Simpson (Globe and Mail – February 2, 2013)

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.

Lots of very big numbers – hundreds of billions of dollars – are being thrown around about future natural resource investment in Canada, with aboriginals demanding their share.

Their demands are based on treaty rights, however defined, and from aboriginal rights, however defined, in the Charter of Rights and Freedoms. Making the demands has been easier than negotiating them.

Aboriginal rights have been subject to political debate and glacial negotiations between aboriginals and governments since they landed in the Charter. In British Columbia, a process for settling disputes has sputtered for more than two decades, with many aboriginal groups refusing even to participate. Elsewhere in Canada, a huge backlog exists of unresolved claims related to signed treaties.

Given such little progress, aboriginals have tried to advance their cause in law. There they have found courts willing to move the yardsticks in their favour.

One yardstick established by the Supreme Court of Canada is the Crown’s obligation to “consult” aboriginal groups if lands they claim are to be developed for, say, mining or roads or oil and gas development. This obligation has been, and remains, hard to define.

Read more

McGuinty’s legacy is a green nightmare – by Margaret Wente (Globe and Mail – February 2, 2013)

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.

In the morning of Jan. 5, workers with a fleet of heavy equipment mounted a stealth assault on a bald eagle’s nest near the shore of Lake Erie. Their mission was to remove the nest – one of only a few dozen bald eagle nests in Southern Ontario – to make way for an access road to the site of a new industrial wind turbine. As a pair of eagles looked on from a nearby tree, the workers sawed off the limb with the giant nest and took it away to parts unknown.

Ontario’s environmental regulations would usually make this illegal. But the wind company, NextEra Energy, one of the biggest operators in the province, had obtained special dispensation.

Wind power is supposed to be environmentally friendly. But a lot of environmentalists don’t think so. “People couldn’t believe it happened,” says Scott Petrie, a waterfowl ecologist and executive director of Long Point Waterfowl, a conservation group. “Cutting down bald eagle nests flies in the face of anything you would call green energy.”

Wind turbines have invaded many of Ontario’s most scenic and ecologically rich areas. They’re invading coastal wetlands and spreading along major migratory flyways – up the Bruce Peninsula, west to Lake Huron, south to Lake Erie, and east to Prince Edward County, where environmental groups are fighting a major wind development in Ostrander Point, an important bird area.

Read more

Gaspé Mayor François Roussy at odds with Petrolia over oil drilling project – by Allan Woods (Toronto Star – February 3, 2013)

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.

The town has, in effect, outlawed the Haldimand 4 project, leading to a pitched battle for the hearts and minds of Gaspe residents.

MONTREAL—The incessant hum of the generators continues, but the drills, trucks and heavy machinery have returned to their outposts in northern Ontario, Newfoundland and Alberta.

What remains is sky-high unemployment that rivals that of Portugal, Ireland or Zambia and the century-old dream of pulling oil from the rocky treasure chest that is Quebec’s Gaspé region.

That, and a raging dispute pitting Gaspé Mayor François Roussy against Petrolia, a Quebec-based firm that was set to begin pumping the 8 million barrels of oil it discovered on the edge of town. The find is worth an estimated $1 billion, but the mayor says it’s only enough to meet Quebec’s gasoline demands for 28 days.

The dispute has been simmering since Petrolia received a provincial permit to begin work last spring. But the town of 15,000, in a region with 15 per cent unemployment, brought the battle to a head.

A last-minute municipal regulation in mid-January to protect drinking water has, in effect, outlawed the project.
Known as Haldimand 4, Petrolia was just a few days from the start of an estimated 15-year drilling operation. It’s located 350 metres from the home that Pelope Adzakpa bought two summers ago with his wife and two children.

Read more

Upper Peninsula pits offer perspective on Wisconsin mine proposal – by Lee Bergquist (Milwaukee-Wisconsin Journal Sentinel – November 5, 2011)

http://www.jsonline.com/

Please note the date: (Nov/2011)

Ishpeming, Mich. – The Empire Mine is big and deep, spanning a mile across and plunging 1,200 feet to its lowest point. Trucks that carry rock from the depths of the iron ore mine are the size of two-story houses and burn 1,000 gallons of diesel fuel a day.

The electric bill from this massive mining complex in the Upper Peninsula is bigger than the Milwaukee Brewers’ 2011 payroll. “It’s all about scale in the iron ore business,” observed Terry S. Reynolds, a historian at Michigan Tech and an expert on the state’s iron ore industry.

As Wisconsin debates a return to iron ore mining for the first time in nearly 30 years, the Empire and adjacent Tilden mines offer a window into how the industry operates today. The high-grade iron ore that drew immigrants to this region in the mid- to late 1800s played out long ago.

“There are probably still people who think we are out here with picks and shovels and mules and wooden carts,” said Dale Hemmila, the manager of corporate affairs in North America for Cliffs Natural Resources, based in Cleveland and the principal owner of the mine.

“But the fact of the matter is, this is a very, very sophisticated operation,” he said. Now, iron ore mines need to be enormous to justify the expense of excavating and processing mountains of low-grade rock.

Read more

NEWS RELEASE: NWT Mineral Development Strategy Launched

(Vancouver, January 28, 2013) Launch of the process to create a Northwest Territories Mineral Development Strategy took place today. The Strategy is a partnership between the Government of the Northwest Territories and the NWT and Nunavut Chamber of Mines.

With the world’s premier technical mineral exploration conference – AMEBC Mineral Exploration Roundup – as the backdrop, NWT Minister David Ramsay spoke to attendees and shared a copy of the Discussion Paper that has been written to guide engagement on the NWT Mineral Development Strategy.

“Mineral development is the backbone of the NWT economy, and developing a long-term plan will guide decision-making for mineral development into the future,” said David Ramsay, NWT Minister of Industry, Tourism and Investment . “Once complete, a Mineral Development Strategy will support our efforts to expand the nature and scope of our resource development and provide a framework to ensure our mineral resources continue to be developed in a way that benefits NWT residents, ensures development is sustainable, and upholds our commitment to protect the environment.”

Cathie Bolstad, President of the NWT and Nunavut Chamber of Mines echoed those sentiments. “While we have grown the industry to be the largest private sector employer in the North, it is important that we work together with our industry members and with northerners to find ways to sustain and grow our industry’s contributions. We are very pleased to be partnering with the NWT Government in the development of the NWT Mineral Development Strategy.”

Read more

Gas pains for Wynne – Thunder Bay Chronicle-Journal (February 1, 2013)

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

IT is hard to argue Kathleen Wynne’s first decision as premier-elect of Ontario. Facing an $11-billion budget deficit, the government must question every bit of proposed spending to ensure it’s in taxpayers’ best interest. Using that logic Wynne has said a public inquiry into the Liberal government’s cancellation of two suburban Toronto gas plants in seats it tried to save will be too expensive.

That might fly if she would approve an alternative to the NDP’s demand for an inquiry. But she has not committed to a Progressive Conservative call to reconstitute a legislative committee that was about to delve into the matter when Premier Dalton McGuinty suddenly resigned and prorogued the legislature.

It has already cost Ontario taxpayers at least $230 million to scrap the two gas-fired generating stations and the Liberals were guilty of failing to produce all of the paperwork — which the opposition charges will reveal even more cost.
Wynne has acknowledged there may yet be more documents that should be revealed.

But the discovery of an email from an energy ministry employee directing the Ontario Power Authority on which documents to release and which to withhold demands Wynne act decisively to mend this wound on the government’s reputation. If she won’t approve reforming the all-party committee how can she offer absolute assurance the whole story will come out? Surely she won’t ask us to simply trust her.

Read more