June 14, 2013 – Republic of Mining

Market appears too relaxed about China copper outlook – by Clyde Russell (Reuters India – June 14, 2013)

June 14, 2013

http://in.reuters.com/

(Reuters) – The market may be too sanguine about the outlook for copper prices, as import demand in top consumer China shows signs of increasing just as an anticipated global supply surplus is looking vulnerable.

Shanghai copper fell on Thursday when trading resumed after a three-day holiday, with the most active October contract dropping by as much as 3 percent to 51,350 yuan ($8,354) a tonne in early trade.

While the decline was largely a catch-up to weakness in London earlier this week, it’s indicative that traders aren’t overly concerned about the supply outlook.

The Shanghai slump came a day after Freeport-McMoRan Copper & Gold Inc declared force majeure on deliveries from its Grasberg operation in Indonesia, the world’s second-largest copper mine.

The legal clause allowing the company to miss contracted shipments comes after the mine was shut indefinitely after two accidents in May claimed the lives of 29 workers. Indonesian authorities want the mine closed until investigations into the incidents are completed, a process that may take several months.

Cliffs should stop pointing fingers, check its corporate ego before resuming work on Ring of Fire – by Ramsey Hart (MiningWatch Canada – June 14, 2013)

June 14, 2013

http://www.miningwatch.ca/

On Wednesday, US mining company Cliffs Natural Resources announced that it was ceasing work on the environmental assessment process for its high profile chromite project in the area of northern Ontario dubbed the “Ring of Fire”.

Cliffs’ announcement poutedly pointed the finger at the province for not approving the terms of reference the company drafted for its environmental assessment and for not coming to unspecified agreements “critical to the projects economic viability”, i.e. hydro and infrastructure subsidies. The blame was shared with First Nations who are pursuing a legal challenge to the project’s federal environmental assessment and the provincial Mining Land Commissioner for not issuing a decision over a land rights dispute with fellow would-be Ring of Fire mining company KWG.

While the announcement got a fair bit of press including coverage by the Globe and Mail, Financial Post, Star, CBC and Sudbury Star none of the news reports that I’ve seen pointed to Cliffs’ own role in creating these delays.

Back when the project was entering into the environmental review process, Cliffs doggedly refused to support the reasonable and routine call (for a project of this size and complexity) of First Nations and NGOs (MiningWatch included) for a joint review panel assessment process.

Have to get Ring of Fire right: Wynne – by Carl Clutchey (Thunder Bay Chronicle Journal – June 14, 2013)

June 14, 2013

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

While critics accused her government of “dropping the ball,” Premier Kathleen Wynne said Thursday she wasn’t rattled by this week’s announcement that Cliffs Natural Resources will stop working on its environmental assessment for its big Ring of Fire project.

In a conference call with Northern media outlets, Wynne dismissed a suggestion that Cliffs is upping the pressure on the province to get its chromite mine approved in a more timely manner.

“I’m not seeing it that way,” she said. “I’m seeing it as the natural course of things.” On Wednesday, Cliffs ferroalloys vice-president Bill Boor said the company is temporarily halting its work on its environmental assessment process because, after two years, the parties involved still can’t agree on what the project’s terms of reference should be.

Boor also cited “unfinished agreements with the government of Ontario that are critical to the project’s economic viability.” Wynne said Boor’s announcement “doesn’t change our position to see development in the Ring of Fire.”

The Ring of Fire mining belt, about 500 kilometres northeast of Thunder Bay, is a “complex” file “and we have to get it right,” said Wynne.

Prosperous future for Canadian Mining – association – by Gia Costella (MiningWeekly.com – June 14, 2013)

June 14, 2013

http://www.miningweekly.com/page/americas-home

Canada’s mining industry has a prosperous future, with the benefits of the mining sector reaching past the mine gate and into the commu- nities in which it operates, says Mining Association of Canada president and CEO Pierre Gratton.

Delivering his speech during National Mining Week, in Canada, in May, he described the Canadian mining industry as a powerhouse, citing a recent study by the Canadian Chamber of Commerce, which showed beyond doubt that the sector “beats in the heart of our cities and in our financial sector”.

The Canadian mining sector, comprising 220 operating mines, 33 smelters and refineries and 320 000 employees, pays the highest average wage in Canada. In 2012, mining contributed $9-billion in taxes and royalties to governments, accounting for about $20-billion in yearly capital investment.

“Canada is a top-five world producer of uranium, potash, nickel, platinum, aluminium, diamonds, zinc, and steelmaking coal. Minerals account for 23% of the country’s total goods exports. It also attracted 18% of world exploration spending in 2011, which was the top achievement,” he states.

Gratton says it is the depth and breadth of the mining industry that enabled Canada to withstand the recent economic turmoil better than any other Group of Eight country.

NEWS RELEASE: OMA member plans to put graphite back into Ontario’s mineral mix

June 14, 2013

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Ontario Graphite is planning on putting its namesake substance back into the mineral mix of products being turned out by the province’s mining industry. Ellerton Castor, Chief Financial Office and Chief Administrative Officer of Ontario Graphite, expects production from the company’s Kearney Mine to begin before the end of the year. The mine anticipates producing 20,000 tonnes of large-flake, high-carbon graphite concentrate annually from the processing of about one million tonnes of ore.

All governmental permits have been approved and the company has the green light to begin operations. “The Ontario Ministry of the Environment’s decision to grant the remaining permits and approvals for this project marks a critical turning point towards beginning production at the Kearney Mine,” said Jerry Janik, General Manager for Ontario Graphite. “This milestone reflects our company’s strong commitment to the responsible re-commissioning of the mine site, with a particular focus on environmental sustainability.”

The mine will recycle 85% of the water from the mine in the milling stage. Also, non-graphite bearing rock on the property will be re-used as aggregate for construction projects by others in the region.

The Energy Frontier: ‘It’s the thrill of the hunt,’ says tight oil pioneer – by Claudia Cattaneo (National Post – June 14, 2013)

June 14, 2013

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

As a budding exploration geologist in the 1970s, Donald Rae worried about his career choice. Convinced that Alberta was running out of oil, oil companies were laying off geologists and engineers in big numbers and Peter Lougheed, Alberta’s premier at the time, wanted to diversify the economy.

Mr. Rae stuck with it, pioneered the discovery of tight oil in Canada, and is now is at the controls of another hot junior, Coral Hill Energy Ltd., focused on a play in the Swan Hills area of west central Alberta that could hold up to four billion barrels of light oil.

Meanwhile, Alberta is producing more oil than ever. “It’s the thrill of the hunt,” Mr. Rae, 63, said in explaining why he started another company. “I love what I do and I have great people with me, so we have a lot of fun.”

The enthusiasm may seem disconnected from the bad news beating up the Canadian oil patch today – anti-oil activism, weak prices, pipeline bottlenecks, disinterested investors.

Far from ceding the field to energy alternatives, Mr. Rae is one of the entrepreneurs working on new ideas to keep expanding the business – from finding oil and gas in new places to squeezing more out of old ones, from arranging new transportation options to using new financing models that don’t involve public markets.

Environment Canada recommends tougher pollution rules at Canadian mines – by Mike De Souza (Vancouver Sun – June 13, 2013)

June 14, 2013

http://www.vancouversun.com/index.html

OTTAWA – Environment Canada is recommending that the Harper government toughen rules to prevent water pollution from industrial mines and that it expand federal monitoring to at least four new substances released from mining activity.

“These substances are harmful or potentially toxic, and in some cases potentially fatal to fish, and they are present in effluent from a wide range of metal mines,” says an internal Environment Canada discussion paper, circulated last December to representatives from industry, the provinces, First Nations and environmental groups.

The document was launching a review of existing regulations, which came into force in December 2002 and were designed to monitor pollution from mines that could get into water. The paper estimated that there were 105 existing metal mines in Canada in 2010, with about another 60 under review or proposed for operation in the future. The four new substances, recommended for restrictions in the discussion paper, were aluminum, iron, selenium and ammonia.

An internal memo sent to Natural Resources Minister Joe Oliver about the Environment Department’s review noted that Canada had also received a warning from the United States about selenium, a pollutant associated with coal mines, getting into transboundary waterways.

B.C. Liberals accused of breaking election promise over Klappan open-pit coal mine – by Larry Pynn (Vancouver Sun – June 10, 2013)

June 14, 2013

http://www.vancouversun.com/index.html

Tahltan First Nation objects to environmental ‘fast-tracking’ of project

The B.C. Liberals risk breaking an important election promise by “fast-tracking” an environmental assessment of an open-pit coal mine in the so-called Sacred Headwaters of the Klappan in northwest B.C., Tahltan First Nation charged Friday.

“There has been opposition and resistance by our people,” said Tahltan Central Council president Annita McPhee said in an interview.

“To have an open-pit coal mine right in the headwaters … our people are opposed to development there. We want to see long-term protection that excludes having a coal mine in that area.”

The planned Arctos Anthracite Project would have a footprint of about 4,000 hectares, not including a railway line, and would produce an estimated three million tonnes per year of anthracite coal over the mine’s 25-year life span. Anthracite coal has a high carbon content and burns with a clean flame. It is primarily used in steel and metal making.

The project is a joint venture of Fortune Coal Ltd. and POSCO Klappan Coal Ltd., whose parent company is a South Korean steel giant.

NEWS RELEASE: NORONT ANNOUNCES RING OF FIRE STILL GOOD TO GO

November 3, 2015June 14, 2013

TORONTO, ONTARIO–(Marketwired – June 12, 2013) – Noront Resources Ltd. (“Noront” or the “Company”) (TSX VENTURE:NOT) wishes to announce that its plans for the development of its deposits in the Ring of Fire have not changed in light of the announcement made by Cliffs Natural Resources Inc. to temporarily suspend their Environmental Assessment (EA) activities for its chromite project in the Ring of Fire. Noront has continuously developed alternative plans, including the use of an East-West corridor, if the planned North-South access route proposed by Cliffs did not materialize.

“In addition to supporting a North-South access route, Noront has always supported an East-West alternative approach for the development of the Ring of Fire that balances First Nations objectives, the environment and job growth. We’re confident this alternative will be attractive to each level of government, the local communities and the people who will benefit from this sensible approach to stimulating development in the Ring of Fire,” said Paul Parisotto, Noront’s Chairman and interim CEO. “We believe this offers a great opportunity for the private sector, First Nations and governments to work together to ensure the Ring of Fire can be developed in a responsible and timely way.”

The alternative route for an all-weather road to the Ring of Fire, which will include access for non-mine traffic from local communities, balances First Nation objectives, the environment and jobs in a responsible manner and will allow for the early development of the high grade nickel deposits in the Ring of Fire.

The proposed route, an East-West all-weather corridor, would build upon existing winter roads to minimize environmental impact and cost.

MEDIA RELEASE: BULK MATERIAL HANDLING COMPANY WINS INNOVATION AWARD

June 14, 2013

Rail-Veyor® Technologies Global Solves Complex Material Haulage Problems

June 13, 2013 SUDBURY, ON – Rail-Veyor’s® Bulk Material Handling Solution for surface and underground applications earned the company this year’s Bell Canada Innovation Award. Rail-Veyor® was acknowledged as having successfully developed, commercialized and installed its material handling technology designed for the mining, aggregate and other bulk material handling industries.

“It’s an honour to be recognized by our peers in the community.” says Rail-Veyor’s President & CEO Ron Russ at the Bell Canada Excellence Awards. “It is rewarding to see the technology developed by the Rail-Veyor® team attract so much interest from so many industries world-wide,” adds Russ.

Rail-Veyor® provides a simple solution to handle complex industrial material haulage problems by offering the best of conveyors, truck haulage and heavy rail haulage in one complete package. Rail-Veyor® is an electrically powered series of 2-wheeled interconnected mini rail cars that can operate 24/7 and travel along a light rail track at speeds up to 8 m/s or 18 mph. The remote controlled Rail-Veyor® technology is comprised of simple components that allow continuous material haulage without diesel emissions and with significantly less capital and maintenance costs than other options. The simplicity, adaptability and its impressive financial returns make the Rail-Veyor® technology appealing to many industries.

Province optimistic development will go ahead – by Laura Stricker (Sudbury Star – June 14, 2013)

June 14, 2013

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

Cliffs Natural Resources’ work in the Ring of Fire may have come to a screeching halt, but the minister of Northern Development and Mines said he’s determined to see the project through.

“I do remain very optimistic about this project,” Michael Gravelle, who’s also the MPP for Thunder Bay, said on the phone. “I think it needs to be understood … that this is a very transformational, large project, in a part of the province that’s never seen development before.

“It’s important that we get this process right. Clearly there are a number of parts that are crucial to this before we can move for ward, and one of them is environmental assessment.”

On Wednesday, Cliffs announced it was temporarily suspending the $3.3-billion project, which includes a smelter in Capreol, until the provincial government takes action on the file. Bill Boor, senior vice-president of global ferroalloys for Cliffs, said Wednesday the company has done as much as it can and now needs to wait for the government to make a move.

“I’m keen to continue to sit down with Cliffs to finalize the arrangements that we’ve been in discussion with the company on,” said Gravelle. “Because of the size of this project … there are going to be challenges along the way, but we are still very confident that the project can move forward.”

Let’s get on with it [Ring of Fire development] – Thunder Bay Chronicle-Journal Editorial (June 14, 2013)

June 14, 2013

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

HAS it really been three years? Has the Ring of Fire mining development been formally pursued for that long? Perhaps the time seems shorter because so little has been done. The potential salvation of the withering Northern Ontario economy has been mostly on hold over a series of delays around the inability of decision makers to make decisions.

A development commonly likened to the mighty Alberta oilsands in terms of economic impact is stalled while those who stand to benefit most stand in its way. Senior governments that would reap enormous tax benefits to apply to large budget deficits, and First Nations with the potential to finally climb out of unskilled poverty, have been unable or unwilling to approve even the processes to advance formal proceedings into the methods by which further exploration will continue, let alone how mines will be built.

No wonder the Ring of Fire’s major player, Cliffs Natural Resources, has just announced a halt to its environmental assessment activities for a chromite mine in the James Bay lowlands known to be brimming with mineral potential.

Cliffs appears to be stymied as to how to proceed because it cannot get a decision from either the provincial or federal governments on which EA processes will be applied. Cliffs may have thought it had an agreement to pursue one process but concerns by First Nations, environmental groups and federal agencies that it was not stringent enough have raised the possibility of tougher requirements.