Rio Tinto to press on with iron ore expansion plans – by James Regan and Sonali Paul (Reuters India – May 7, 2013)

http://in.reuters.com/

SYDNEY/MELBOURNE, May 7 (Reuters) – Rio Tinto, the world’s No.2 iron ore miner, is set to press on with plans to boost production at its Australian mines by a quarter by 2015, shrugging off pressure to slow spending and conserve cash as the commodity boom cools.

In spite of forecasts of a looming global supply glut, shareholders expect Chief Executive Sam Walsh to tell the firm’s annual general meeting in Sydney on Thursday that it’s full speed ahead with a 70 million tonnes-per-year increase that will take output to 360 million tonnes annually by 2015.

The plan means that a major additional chunk of iron ore production will enter the world market in the next few years and will add to concerns about increased supply that could weigh on a recovery in prices.

“They should continue to expand what is a high margin, high returning project, one of the best returning mining projects in the world, because growth now will mean yield in the future,” said Ben Lyons, who helps manage A$400 million ($409.42 million)at ATI Asset Management, which holds Rio shares.

Rio Tinto’s board is not expected to make a final decision on the expansion plans, estimated to cost up to $5 billion, until later this year.

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Quebec tax hike targets miners as slump hits industry – by RHÉAL SÉGUIN, SOPHIE COUSINEAU (Globe and Mail – ay 7, 2013)

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.

QUEBEC, MONTREAL – The Quebec government is boosting its take from a mining sector already beset by a global downturn, introducing minimum royalty payments and other tax increases aimed at generating up to $200-million a year.

Those increases are less than what the Parti Québécois promised during last’s year’s election campaign – an acknowledgment, the government said, that the drop in commodity prices meant it had to scale down its plans for increasing revenue from the sector.

The new taxes are in addition to existing federal and Quebec general corporate taxes.

According to the Quebec government, at least 10 mining companies didn’t pay any taxes to the province in 2011. The proposed changes, to take effect in 2014, take aim at those firms, requiring that any mining operation pay the higher of two fees: either a royalty on production (with a 1-per-cent tax on the first $80-million on the value of the mineral output, increasing to 4 per cent after that point) or a graduated tax based on a firm’s profit margin (starting at 16 per cent and rising to a top rate of 28 per cent).

Quebec Finance Minister Nicolas Marceau estimated that, depending on mining activity and profits, the new regime will increase government revenues between $73-million and $200-million a year in 2015. Mr. Marceau said that over the next 12 years, the province could increase cumulative revenues up to $1.8-billion.

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Quebec proposes up to 22.9% tax on mining profits, 1% minimum ore tax – by Dorothy Kosich (May 7, 2013)

http://www.mineweb.com/

The Province of Quebec has eased up a bit on its original proposal for mining taxes (such as a 30% super-profits tax), but still intends to take a decent-sized chunk out of the sector’s profits.

RENO (MINEWEB) – The Government of Quebec Monday unveiled the province’s new mining tax regime, aimed at requiring all mining operations to pay a minimum mining tax in addition to existing federal and provincial general corporate taxes.

Beginning Jan. 1, 2014, mining companies would be required to pay the greater of a fixed mining tax or a tax on profit. A minimum annual fixed tax rate would be 1% for operations producing less than Cdn$80 million in ore, and 4% for those that have produced higher valued ore at the mine shaft head.

The profit tax would set a minimum rate of 16% for mines with a profit margin of 35% or less and would increase up to 22.9%, depending on mines with a profit margin of more than 50%. The current highest royalty rate is 16%.

While Parti Quebecois originally promised to raise an average C$388 million annually over five years in mining taxes, the 25% decrease in metal prices since 2011 forced the government to reconsider its strategy, said Quebec Finance Minister Nicolas Marceau. The new mining plan would increase royalties’ revenue by 15% to a total of $370 million annually.

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Ontario Ring of Fire’s Extraordinary Potential – Honourable Tony Clement (May 6, 2013)

The Honourable Tony Clement is the Minister for FedNor. This speech was given at the CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM (CIM) CONVENTION 2013, on May 6, 2013 in Toronto, Canada.

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Thank you for that kind introduction and good morning. It’s a pleasure to welcome so many participants, distinguished guests and speakers at this year’s convention of the Canadian Institute of Mining, Metallurgy and Petroleum.

First, I wish to thank the organizers for inviting me and for this opportunity to say a few words this morning.

This is an exciting time for natural resource development in Canada, and especially so in a region I hold dear, Northern Ontario, but more about that in a moment.

This sector contributes both to the strength of our economy and the quality of our lives. And it is critical to our future.

Natural resources support close to 1.6 million jobs in Canada. And these aren’t just any jobs. Mining, oil and gas jobs are the best paid jobs in Canada according to Statistics Canada, earning an average of some $1,900 a week. These are the kinds of jobs Canada can be proud of and should encourage.

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NEWS RELEASE: Minister Clement highlights need for collaborative approach to Ring of Fire development

TORONTO, Ontario, May 6, 2013 — Today, the Honourable Tony Clement, Minister for FedNor, met with representatives of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) during their annual convention to underscore the importance of a collaborative approach to the development of the Ring of Fire, with an emphasis on early dialogue with First Nations.

“Our Government’s top priority is jobs, growth and long-term prosperity. The Ring of Fire is a generational opportunity that can materially improve the economic prospects and quality of life for thousands,” said Minister Clement. “The Harper Government is committed to working closely with the First Nation communities located near the Ring of Fire to ensure that they realize fully the economic benefits of this once-in-a-lifetime opportunity.”

The Ring of Fire, located approximately 500 km northeast of Thunder Bay, is potentially the largest mining development Northern Ontario has ever seen. The region has significant deposits of nickel and copper, and represents North America’s single largest deposit of chromite, the main ingredient in stainless steel. With mineral content worth an estimated $30-$50-billion, the Ring of Fire could create 5,000 direct and indirect jobs in Northern Ontario alone.

“Our Government recognizes the importance of natural resource developments, like the Ring of Fire, to our country’s growth and long-term prosperity,” said Minister Clement. “That is why we are implementing a comprehensive resource development agenda based on principles of efficient governance, environmental protection and consultation with First Nations.”

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B.C. election outcome crucial for Alberta – by Gillian Steward (Toronto Star – May 7, 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.

Campaign looks like a referendum on oil marketing strategies vital to the Alberta economy.

CALGARY—Never has more been at stake for Alberta in a B.C. provincial election than now. Viewed from Calgary, the campaign looks like a referendum on the oil marketing strategies that both the Alberta and federal governments — and the energy industry — have been banking on for years.

So this time it really matters for Alberta which party — the Liberals or the NDP — emerges victorious.

Alberta is landlocked; it needs access to B.C.’s ports and coastline if the oil it produces is to get to markets other than the U.S.

But while various pipelines transporting oil and other fuels from Alberta have criss-crossed B.C. for more than 60 years, proposals for new or expanded pipelines have become potent symbols for Liberal Leader (and current premier) Christy Clark and NDP Leader Adrian Dix as they lay out their visions for the future of the province.

Both leaders have said no to Enbridge’s proposed Northern Gateway Pipeline that would reach from northern Alberta across the wilds of northern B.C. to Kitimat so diluted bitumen from the oilsands can be funneled onto tankers and shipped to China and other emerging markets.

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As B.C. election looms, both NDP and Liberals take hard line on oil pipelines – by Claudia Cattaneo (National Post – May 7, 2013)

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

The environment, and particularly opposition to oil sands pipelines and tanker traffic, has become a big theme in the B.C. election, forcing both the NDP and the Liberals to take a hard line against what seem to have become politically toxic projects.

With a week to go before British Columbians go to the polls, Liberal Christy Clark has distanced herself from proposed oil sands pipelines, after front-runner Adrian Dix, leader of the NDP, said two weeks ago he is opposed to both Enbridge Inc.’s Northern Gateway and Kinder Morgan’s TransMountain expansion. With the Green Party also opposed to both, only the shrinking provincial Conservative Party remains supportive.

It’s not an encouraging scenario for pipeline proponents, the province of Alberta or the federal government, which has made oil-market diversification to Asia a key plank of its national agenda.

What’s interesting is that the green factor is influencing the campaign at a time voters are mostly worried about the weak provincial economy, and despite past political failure (remember the federal Liberal Green Shift?) to push environmental issues to the political front lines.

“I think the green issue has become for a lot of people a ballot box issue,” said Michael Prince, a professor of social policy at the University of Victoria. “It’s one of the ones that they are going to have in their mind the day they go into vote.” Why?

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Modern mining technologies reviving Sudbury zinc project – by Lindsay Kelly (Northern Ontario Business – May 6, 2013)

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.

A Sudbury-area zinc deposit that was once considered unprofitable is now getting a second look because of modern mining and metallurgical technologies.

Xstrata Zinc is currently undertaking simultaneous pre-feasibility and feasibility studies on the Errington and Vermilion mineralization in preparation for a $350-million development that would produce an estimated 2,900 tonnes of ore per day over a seven- to 10-year mine life. The development is expected to create between 200 and 250 jobs.

“Errington and Vermilion don’t have nickel; they’re polymetallic zinc deposits,” said Aline Côté, project director for Xstrata Zinc, during a luncheon to cap off Sudbury Modern Mining & Technology, a week dedicated to raising the profile of the industry amongst area youth.

“To my knowledge, there are very few other zinc anomalies in the entire Sudbury basin.” Both deposits contain zinc, copper, lead and “a fair amount” of precious metals, she added.

Mined for a brief period following their discovery in 1924, the Errington and Vermilion deposits are located west of Sudbury along the Vermilion River and Vermilion Lake.

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No bling for the Ring – by Staff (Northern Ontario Business – May 3, 2013)

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.

The Ring of Fire received passionate lip service from the Ontario government in Premier Kathleen Wynne’s 2013 “prosperous and fair” budget. The Wynne government promised to keep working with industry and First Nations to “explore and develop mineral extraction opportunities…in an environmentally sustainable way.”

No mention was made of a financial commitment toward transportation infrastructure to the future mining camps of the Ring of Fire in the James Bay lowlands.

“The government will continue to assert Ontario’s pride in manufacturing, financial services, tourism, forestry and natural resource development,” said Wynne in her budget speech.

The government plans to extend its Northern Industrial Electricity Rate program, which helps cut power cuts to Ontario’s largest industries. The three-year program, announced in March 2010, will be extended with an additional $360 million over three years.

Among the government’s promises to business include job creation through investments in public transit, roads, bridges, hospitals and schools.

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