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Day: June 19, 2013

Glencore Loan Wins Banks on Future Business: Corporate Finance – by Stephen Morris (Bloomberg News – June 19, 2013)

http://www.businessweek.com/

Glencore Xstrata Plc (GLEN) raised the biggest loan on record for a commodity trader at interest rates below those offered to competitors as the 80 banks backing the deal count on winning future business from the company.

The world’s biggest publicly-traded commodity supplier signed $17.3 billion of revolving credit facilities last week, paying a margin of 90 basis points more than benchmark rates for a three-year portion, according to data compiled by Bloomberg. That’s 47.5 basis points less than Vitol Group, the largest independent oil trader, pays on its main $5 billion credit line, and 100 basis points less than Trafigura Beheer BV’s $2.9 billion deal, the data show.

“Banks have fallen over themselves to provide credit as they see Glencore Xstrata as an active and attractive counterparty, which has a big trading book,” said Jeff Largey, head of European metals and mining equity research at Macquarie Group Ltd. (MQG) in London. “Glencore Xstrata is seen as a growth company, it’s been acquisitive in the past and it will remain so. If you’re seen as extending credit to them, that potentially opens up other business opportunities.”

Glencore, which generated revenue of $214 billion last year trading commodities including coal, oil and corn, awards relationship banks ancillary business in trade financing, currency hedging, and acquisitions, according to David Mannarino, a Brussels-based corporate banker for Fifth Third Bancorp, which lends to the company.

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NEWS RELEASE: Norton Rose Fulbright named Mining Law Firm of the Year for second consecutive year

Awarded by 2013 Who’s Who Legal Awards – June 14, 2013

Global legal practice Norton Rose Fulbright has been named Mining Law Firm of the Year in the 2013 Who’s Who Legal Awards, for a second consecutive year.

Who’s Who Legal is the official research partner of the International Bar Association. It names the leading lawyers in each field of law, based exclusively on the findings of an independent six-month research process that encompasses feedback from clients, private practitioners and other experts in the sector.

During the course of their research, more Norton Rose Fulbright lawyers were selected for inclusion in the mining category than any other legal practice.

Martin McCann, head of infrastructure, mining and commodities at Norton Rose Fulbright, commented: “Winning this award for the second year in a row is especially gratifying, particularly as these awards are based on the views of key players in the market.”

“Our international footprint continues to grow and this award is recognition for the strength of our practice in all the key mining hubs and our experience in advising on mining transactions in every major mining region in the world.

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‘Huge opportunities’ for Canadian mining industry to work in developing countries – by Kim MacKrael (Globe and Mail – June 19, 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.

OTTAWA — Canada’s international co-operation minister says there are “huge opportunities” for the country’s mining industry to work with the Canadian government in developing countries.

Speaking at the annual board of directors’ meeting for the Mining Association of Canada, Julian Fantino said the extractive industry can play an important role in Canada’s international development efforts.

“There is huge, huge opportunities, I believe, for your industry,” Mr. Fantino said. He said mining companies are already working successfully with the Canadian government and NGOs, adding, “I encourage you to stay tuned.”

The Conservative government views the mining sector as an important player in its international development efforts as it works to increase partnerships with the private sector. Earlier this month, Prime Minister Stephen Harper announced that Canada would work with Tanzania and Peru on governance issues in the extractive industry. Canadian mining companies will also have to meet new requirements on disclosing payments to governments, Mr. Harper said.

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UPDATE 2-Brazil mine bill proposes royalty hike – by By Jeb Blount (Reuters U.S. – June 18, 2013)

http://www.reuters.com/

RIO DE JANEIRO, June 18 (Reuters) – Brazil, the world’s second-largest producer of iron ore, unveiled a long-awaited bill to reform the country’s 46-year-old mining code on Tuesday, proposing royalties of up to 4 percent, double the current rate.

Murilo Ferreira, chief executive of Vale SA, the world’s largest iron ore exporter, said the bill would hit miners hard. He estimated the government’s total take from royalties would rise to $4.2 billion reais ($1.93 billion) from $1.7 billion reais.

Even so, provisions of the bill are less onerous than the mining industry had feared when the discussion of reforms began
nearly four years ago. The top rate under the proposal is only one-third of basic royalties charged in Australia, for example.

Brazil is getting ready to enact the reforms at a time when the mining industry is experiencing a sharp slowdown. When the
bill was first proposed in 2009, the industry was in one of its most prosperous periods ever. Vale’s preferred shares, the Rio de Janeiro-based company’s most-active class of stock, rose 1.8 percent in early afternoon trading in Sao Paulo.

The legislation will test the government’s efforts to reduce tensions with investors, many of whom have criticized President Dilma Rousseff’s economic polices as erratic and her attitude toward business “heavy handed.”

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The value of mining in Arizona – by Jonathan DuHamel (Tucson Citizen – June 18, 2013)

http://tucsoncitizen.com/

Without minerals, we would not have electricity, food, or shelter. Minerals make today’s technology-based life possible, but that’s something many of us take for granted. We want the benefits from those minerals, but some want mining of minerals to be in somebody else’s neighborhood. The importance of mining has long been recognized:

If we remove metals from the service of man, all methods of protecting and sustaining health and more carefully preserving the course of life are done away with. If there were no metals, men would pass a horrible and wretched existence in the midst of wild beasts… -Georgius Agricola, in De Re Metallica, 1556.

For Arizona, it is not just metals. Arizona produces sand and gravel, limestone for cement production, coal for electrical generation, and a variety of industrial minerals which contribute almost $2 billion to Arizona’s economy.

Arizona has a long history of mining. There is archeological evidence that cinnabar, coal, turquoise, clay, pigments, and other minerals were mined in Arizona beginning at least 3,000 years ago.

According to the Arizona Mining Association, Arizona currently produces 68% of domestically mined copper. With that copper production comes by-product molybdenum, gold, silver, platinum, and rhenium.

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Bob Rae quits as MP in ‘very emotional’ decision [Ring of Fire First Nations negotiator] – CBC News Sudbury (June 19, 2013)

http://www.cbc.ca/sudbury/

The former interim Liberal leader says he wants to devote his time to First Nations issues

Bob Rae, who served as interim Liberal leader following the party’s disastrous showing in the 2011 election, is stepping down as an MP, CBC News has learned.

Rae told his Liberal colleagues of his decision during Wednesday’s party caucus meeting, an announcement that was met with tears and applause, according to sources.

Rae recently accepted the role of chief negotiator for First Nations in talks with the Ontario government about development of the Ring of Fire, and is to tour the nine Matawa communities in the mining and resource-rich area of Northern Ontario this summer. Rae is a former NDP premier of the province.

At a news conference with Liberal Leader Justin Trudeau in the foyer of the House of Commons, Rae said that work as a lawyer and mediator was taking more and more of his time and he felt he needed to focus on his role with the First Nations. He didn’t say when his resignation would be effective.

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Researchers may have found solution to risks posed by tailings ponds – by Markham Hislop (Troy Media – June 18, 2013)

http://www.troymedia.com/

The technology would return clean tailings pond water to the environment

Markham Hislop is Editor in Chief of Beacon News.

CALGARY, AB, Jun 18, 2013/ Troy Media/ – Researchers at two Alberta universities believe they have found the solution to a major oil sands problem: the environmental risk posed by tailings ponds.

Oil sands mining operations use a lot of water, two to four and a half units for every unit of synthetic crude they produce. The Alberta government permits oil sands companies to divert 1.3 per cent of the Athabasca River’s annual flow, which is 359 million metres cubed, twice what the entire city of Calgary uses. Even though that water is recycled multiple times, the recycling concentrates toxins and metals left over from extracting and upgrading the bitumen, resulting in tailings ponds that are a significant risk to the environment.

Biologists at the University of Calgary and engineers at the University of Alberta say they have developed a “biofilm,” a kind of bacterial growth laymen generally refer to as slime. Two years into the research, both groups are excited about their progress. A paper into the first round of research will be published in the January edition of FEMS Microbiology Ecology.

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NEWS RELEASE: Saskatchewan’s mining sector expected to fuel provincial economic growth: RBC Economics

TORONTO, Jun 19, 2013, 2013 (Menafn – Canada NewsWire via COMTEX) — Strengthening mining output will drive Saskatchewan’s economy in 2013, according to the latest RBC Economics Provincial Outlook issued today. RBC forecasts provincial real GDP growth of 2.9 per cent in 2013 and 3.7 per cent in 2014.

In 2012, RBC’s forecast for provincial growth steadily lowered to 2.4 per cent as demand for potash – and in turn production – softened largely due to weak overseas demand. However, with multi-year sales agreements settled late last year and early this year with a number of key overseas purchasers, demand has started to pick up. In fact, potash production numbers for the first quarter of 2013 are pointing to an impressive 26 per cent increase over year-ago levels.

“Saskatchewan’s economy has traditionally been buffeted by swings in agricultural production, and in recent years the mining sector has been additional source of volatility,” said Craig Wright, senior vice-president and chief economist, RBC. “We expect the potash rebound to boost mining output by 4.5 per cent this year and 5.0 per cent next after growth of only 1.0 per cent in 2012.”

A sizeable snowfall last winter sparked concerns that Saskatchewan’s agricultural production would be hindered by potential spring flooding, RBC says. By the end of May, however, Saskatchewan’s government reported that 67 per cent of 2013 crops had been planted – this is only slightly below the five-year average (70 per cent) for the that time of year.

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Our view: ‘Eyes wide open’ on metals mining – Duluth News Tribune Editorial (June 19, 2013)

http://www.duluthnewstribune.com/

A guest speaker in Duluth yesterday long has been a dark cloud over any prediction of economic benefit related to the coming mining of precious metals in northern Minnesota.

A guest speaker in Duluth yesterday long has been a dark cloud over any prediction of economic benefit related to the coming mining of precious metals in northern Minnesota. And he was brought here by Friends of the Boundary Waters Wilderness, a Minneapolis-based anti-mining nonprofit.

So the expectation, naturally, was for a mining-is-evil message. And that’s just what Thomas Power, a Princeton-educated economics professor of 40 years at the University of Montana, delivered. But at least he did so with a history lesson rather than with half-truth propaganda or with picket-sign catch phrases that too often have been the weak tools of the doom-and-gloom, anti-mining crowd.

“My message is to go in with eyes wide open,” Power told the News Tribune Opinion page before speaking over the lunch hour Tuesday at Clyde Iron. “I’ve been doing economic research and teaching courses on Montana’s and on the western states’ economies for 45 years. … It wasn’t possible to study the Montana economy without paying attention to the mining part of it.”

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Copper mining economics questioned by Montana economist – by John Myers (Duluth News Tribune – June 19, 2013)

http://www.duluthnewstribune.com/

University of Minnesota Duluth geologists call it the largest untapped copper-nickel deposit in the world, with millions of tons of valuable metals worth billions of dollars sitting in the Duluth complex of rock under Minnesota’s Arrowhead.

University of Minnesota Duluth geologists call it the largest untapped copper-nickel deposit in the world, with millions of tons of valuable metals worth billions of dollars sitting in the Duluth complex of rock under Minnesota’s Arrowhead.

Supporters and economic reports point to hundreds of new mining jobs if Minnesota’s first-ever copper mines become a reality, along with spinoff employment, huge payrolls and millions in taxes and royalties paid. Mining, already one of Northeastern Minnesota’s largest industries thanks to taconite iron ore, has the potential to become even bigger with copper, nickel, palladium, platinum and gold.

But Thomas Power, former chairman of the University of Montana’s economics department, warned Northland residents Tuesday to be careful in the rush into copper.

At a Duluth lunch forum sponsored by the Friends of the Boundary Waters environmental group, the professor said mining’s economic costs are often overlooked in the luster of a promised boom time. He said many economic reports released around proposed mining projects are ripe with benefits but fail to address costs. That should cause economists, and the public, to bristle, he said.

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Deleted emails could affect [Solid Gold] mining suit – by Sebastien Perth (Sudbury Star – June 19, 2013)

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

Recent revelations the provincial government deleted emails related to gas plant cancellations in southern Ontario have one company worried their $1 million lawsuit against the province could be affected by similar deleted emails.

Solid Gold Resources Corp. filed a lawsuit in the Ontario Superior Court of Justice in January claiming the province “encouraged and promoted” a conflict with a Northern Ontario First Nation, slowing down the gold mine project.

Former company president Darryl Stretch sent an open letter to the province and OPP commissioner Chris Lewis. Stretch writes in his letter during the litigation process, Solid Gold Resources Corp. is entitled to documentary evidence such as emails from former premier Dalton McGuinty, current Premier Kathleen Wynne and ministry staff that discuss the company.

“In view of the startling revelation, which references the recent destruction or theft of Ontario’s records, we seek assurances none of the documents related to Solid Gold Resources Corp. have been destroyed or stolen. May we please have your assurance the documents will remain available upon formal request,” Stretch writes.

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Delay may cause fundamental rethinking [Ring of Fire] – by John R. Hunt (Sudbury Star – June 19, 2013)

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

The mine supply business is an important segment of the Northern Ontario economy. The news that Cliffs Natural Resources has temporarily halted its environmental assessment work in the Ring of Fire will not spread any joy.

Some analysts say Cliffs is just playing a card in a complicated poker game. The environmental assessment work is being done in compliance with both federal and provincial assessment acts. The company may be trying to cut through some of the tangled red tape that government departments inevitably create.

According to its website, Cliffs was hoping to get into production by 2016, which means that an incredible amount of work must be done within a comparatively short time.

Nipissing MPP Vic Fedeli pointed out recently other mining companies are certainly interested in the Ring of Fire region, so if Cliffs does not do something, others will.

Cliffs and the provincial government must come to an agreement with one or more First Nations in the region who may not be very pleased with the prospect of losing some of their traditional hunting grounds.

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SA platinum industry could shed 145 500 jobs by 2015 – by Idéle Esterhuizen (MiningWeekly.com – June 18, 2013)

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

JOHANNESBURG (miningweekly.com) – South Africa’s embattled platinum industry is at risk of losing 145 500 jobs by 2015, an analyst from Nomura said on Tuesday.

Assuming a breakeven platinum price of $1 500/oz for 2014 and 2015, Peter Attard-Montalto said in a report that about 24 000 jobs would be at risk next year, growing to 121 500 in 2015.

He stated that the number of job losses was linked to about 64-million ounces of production in 2014, or 14% of South Africa’s total supply, and about 277-million ounces, or 59% of the country’s output, the following year.

“We can therefore see that the necessity and effects of restructuring will spread widely beyond Amplats [Anglo American Platinum],” Attard-Montalto said in a statement, adding that the political clampdown on Amplats that banned restructuring job losses was only postponing the inevitable.

“Put simply, we do not believe that platinum mines will produce at a loss for more than two years…the jobs at risk could be shed after the election, when the mines will be under greater pain and the government will not be in the same place in the electoral cycle,” he put forward.

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Will Ontario’s New Mining Act Make the Province Uncompetitive? – by Virginia Heffernan (Earth Explorer – June 12, 2013)

http://www.earthexplorer.com/

It was standing-room-only at the May 28th meeting of the Toronto Geological Discussion Group (TGDG) as a panel of legal, government and industry experts grappled with the contentious new Ontario Mining Act. No fights broke out under the expert moderation of Analytical Solutions’ Lynda Bloom, but the conversation did get heated.

Still in its infancy, the new Act ups the ante when it comes to consulting Aboriginal communities and private landowners before putting boots to the ground. Exploration plans and permits are required even for certain early-stage activities, and Aboriginal communities can apply to have culturally significant areas withdrawn from staking.

You can download a fine summary of the changes from the Ontario Ministry of Northern Development and Mines website.[http://www.mndm.gov.on.ca/en/mines-and-minerals/mining-act/mining-act-modernization]

Some insights from the discussion:

Rules are nothing without resources

Although Ontario government representative Rob Merwin, who worked closely on modernizing the Act, says there are consultants and ministry staff onboard to help with the consultation process, some industry representatives feel the responsibility for resolving disputes rests too heavily on their shoulders and that the government should be differentiating between real grievances and those launched for personal gain.

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NEWS RELEASE: Silver Aiding New Medical Technologies

http://www.silverinstitute.org/site/

(Washington, D.C. – June 18, 2013) – Recent advances in biotechnology have brought a focus on silver’s centuries-old role in medicine; that of acting as an important weapon in the fight against infection and disease. Silver is a critical element in bandages used to treat wounds and reduce the threat of infections in difficult environments. It has also been a key component of treatment in hospitals to reduce the spread of surgical infections in the operating room and in patient care areas.

The medical use of silver has helped reduce the growing threat of antibiotic-resistant germs spreading through a hospital population. “Today, advances in coatings technology has enabled medical equipment producers to introduce silver-coated instruments and hospital equipment for use in treating patients — eliminating, on contact, almost every bacterial or fungal exposure,” said Michael DiRienzo, Executive Director of the Silver Institute.

To that point, as one of many recent developments regarding silver and health, NMI Health, located in Reno, Nevada, recently launched its SilverCare Plus antimicrobial performance soft surface products at the 40th Annual Association of Professionals for Infection Control conference in Florida earlier this month. NMI Health exhibited its suite of SilverCare Plus performance fabrics including: scrub and lab coat material, patient gowns, linens, blankets and cubicle curtains. Collectively, these products account for over 90 percent of soft surfaces found in the patient environment, according to the company. NMI Health partnered with Noble Biomaterials to manufacture the SilverCare Plus line.

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