MINING’S ROLE IN SOCIETY – by Anglo American CEO Mark Cutifani (June 26, 2013)

http://www.angloamerican.com/

This speech was given to the Minerals Council of Australia, Canaberra on 26 June 2013.

Distinguished guests, Colleagues of the Minerals Council of Australia, Ladies and gentlemen. Good morning. Thank you for that introduction Mitch and for the opportunity to speak here today.

Now, some of you may be wondering about the photo behind me [see image below]. Before I explain, let me set a little bit of context.

Mining – In Our Global Context

In 2010 the global mining industry, including the quarrying and petroleum sectors, represented 11.5% of the world’s GDP, as measured by revenues from products sold. Based on experiences in mining jurisdictions, if we include payments to service and support industries, mining’s direct contribution to global economic activity is estimated to be around 21%. But we need to think about mining in a much broader context. We produce products that make the world work.

Fuel for energy generation, products that support construction and industrial processes and most other value creating activities, are simple examples of how we literally make the world go around. So, let me get back to that photo showing two cornfields, one using phosphate fertilisers and one without. Since the turn of the last century it is estimated that the products of mining have supported a more than 100% increase in agricultural production per area unit under cultivation.

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Mongolia risk to hurt growth even with Oyu Tolgoi start-up, election – by Terrence Edwards and Sonali Paul (Reuters India – June 26, 2013)

http://in.reuters.com/

ULAN BATOR/MELBOURNE, June 26 (Reuters) – Mongolia’s efforts to protect its mineral wealth have scared investors so much that not even the first exports from its biggest mine and the expected re-election this week of a president who wants foreign capital will turn sentiment around.

With the country’s economic growth heavily tied to its vast copper and coal resources, Mongolia should have been celebrating the first copper sales to China from the $6.2 billion Oyu Tolgoi mine.

Instead, the government twice this month told mine operator Rio Tinto to delay the first shipment, partly due to a dispute over the repatriation of profits. Some analysts said the holdup was also aimed at keeping a lid on nationalism ahead of the presidential vote on Wednesday.

Industry experts believe exports will start soon, but the delays follow a year in which Mongolia introduced draft legislation to tighten control over mining activity and limit foreign investment.

“Whilst the country has lots of resource potential and holds Oyu Tolgoi, a world-scale mine, there’s too much headline risk,” said Darko Kuzmanovic, a portfolio manager at Caledonia Investments, which holds global mining stocks but has steered clear of Mongolia-focused miners.

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Australia opposition says top priority to dump mine, carbon taxes – by Rob Taylor (Reuters India – June 26, 2013)

http://in.reuters.com/

CANBERRA – (Reuters) – Australia’s conservative opposition said its top priority if it wins elections in September will be to repeal taxes on mining profits and carbon, blaming both policies for stopping fresh investment in the vital resources sector.

Prime Minister Julia Gillard’s Labor government introduced a fixed carbon price about a year ago in a country with one of the world’s highest per capita levels of carbon emissions, with plans to transition to emissions trading from 2015.

The carbon scheme, along with a 30 percent tax on iron ore and coal mining profits, have been criticised by miners, who say it damages competitiveness and employment as Australia’s AAA-rated economy slows and China’s demand for minerals cools.

“Both the carbon tax and the mining tax are a drag on Australia’s energy and resources sector and make investments less attractive than investments in other countries,” opposition resources spokesman Ian Macfarlane told a mining conference.

Australian government data published last month said that A$150 billion ($139 billion) in planned resource projects had been delayed or cancelled since April 2012, as China’s economic slowdown weighs on decade-long mining boom.

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Quebec Environment Minister to refuse Strateco exploration permit – by Henry Lazenby (MiningWeekly.com – June 26, 2013)

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

TORONTO (miningweekly.com) – Explorer Strateco Resources on Tuesday said Quebec Sustainable Development, Environment, Wildlife and Parks Minister Yves-Francois Blanchet had served it with a notice indicating that he planned to “refuse to issue the permit for the Matoush underground exploration project” owing to “a lack of sufficient social acceptability”.

The notice gave Strateco 60 days in which to appeal the Minister’s intended refusal to issue the requested permit. The company in January filed a court order to force the Quebec government to make a decision on its exploration project in the province’s Otish Mountains.

On March 28, two months after Strateco filed the petition for mandamus, the Minister announced that no permits would be issued for uranium exploration and mining projects in Quebec until the Office of Public Hearings on the Environment, known by its French acronym Bape, had submitted its report on Quebec’s uranium industry.

The Minister specified, at the time, that the temporary moratorium, which could last for as long as 18 months or more, was applicable to Strateco. Strateco promptly reacted to what it termed an “illegal, abusive decision” taken by the Minister.

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The heat gets to Obama’s logic – by Terence Corcoran (National Post – June 26, 2013)

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

Baby, it’s hot out here.

With these unspoken words, President Barack Obama announced his climate action plan, a piece of political theatre as much as it was a stab at hard policy. In a sun-drenched space at Georgetown University, in typical 33 Celsius Washington summer temperatures, Mr. Obama played the scene for all it was worth.

Mr. Obama in fact opened his speech with these words: “And my first announcement today is that you should all take off your jackets. I’m going to do the same.” A century of presidential press conferences in typical steamy Washington conditions, and this may be the first in which a president took off his jacket and then, with painstakingly deliberate moves with a fat, white handkerchief, mopped his not-that-sweaty brow.

We’re down to our sleeves out here

Presidents don’t sweat, unless they’re under potential indictment, in a TV studio — or trying hard to beat out a propaganda theme on the perils of global warming and the need for dramatic policy action. Oddly, at 33 degrees and only 55% humidity, it wasn’t even that hot a day in the U.S. capitol, about average for June. It just needed to be seen to be really hot to make the president’s steamy policy rhetoric seem plausible, if not credible.

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Obama’s pragmatist side wins out in Keystone comments – by John Ivison (National Post – June 26, 2013)

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

Barack Obama downplayed any thoughts that his new climate change action plan is a straight choice between “the health of our children and the health of the economy.”

But it wasn’t just the 33 degree heat that made him wipe his brow continually. This was a defining moment in his presidency — a speech where he made clear he is a firm believer in man-made climate change and intends to match his lofty rhetoric with regulatory action.

What to make of Mr. Obama’s plan from a Canadian perspective? The president was as inscrutable as providence when he talked about whether or not he plans to approve the Keystone pipeline that would carry Canadian crude from the oil sands to refineries on the Gulf Coast.

Mr. Obama made it clear he intends to take on the coal-generated power station industry, which accounts for 40% of the greenhouse gases produced in the United States. He said there are currently no limits to how much carbon dioxide power plants can emit — “It’s not right, not safe and it needs to stop,” he said. This is the president’s big target: four coal-fired power stations in the U.S. owned by one company generate 60% more CO2 than the entire oil sands.

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Gas plants controversy: Dalton McGuinty says Liberals made right decision – by Richard J. Brennan (Toronto Star – June 26, 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.

Information and Privacy Commissioner Ann Cavoukian appeared before a legislative committee probing the government’s decision to cancel power plants in Oakville and Mississauga.

Former premier Dalton McGuinty is unrepentant about the controversial decision to cancel two gas plants, lashing out at his critics for being hyper-partisan and interested only in the demise of the Liberal party.

McGuinty, who appeared Tuesday before a legislative committee probing the cancellations, said he regretted “that it ended up costing as much as it does, but ultimately it is the right decision.”

Despite his sometimes combative defence of his political legacy, McGuinty admitted “we failed as a government” on document retention training. He was referring to Information and Privacy Commission Ann Cavoukian’s finding that top Liberal political staffers destroyed emails and documents contrary to the Archives and Recordkeeping Act.

“I’m calling it the way I see it . . . there is no genuine effort here on the part of the opposition committee members to seek out the truth,” he later told reporters, emphasizing that he’s “not sure Ontarians understand the real complexion” of a committee dominated by the opposition and focused on embarrassing the Liberals.

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PRECIOUS-Gold heads for biggest quarterly loss on record – by Jan Harvey (Reuters U.S. – June 26, 2013)

http://www.reuters.com/

LONDON, June 26 (Reuters) – Gold fell to its lowest in almost three years on Wednesday, putting it on course for a record quarterly loss, as U.S. economic data increased fears the Federal Reserve will soon end ultra-loose monetary policy.

Prices could slide further – some investors saying below $1,000 per ounce – while there is little potential for data, market trends or economic developments in the United States or Europe to reverse an accelerating investor move out of gold.

Spot gold tumbled to its lowest since August 2010 at $1,223.54 an ounce and was down 3.8 percent at $1,227.86 an ounce at 1032 GMT. U.S. gold futures for August delivery were down $47.60 at $1,227.90, having hit a low of $1,223.20.

Strong gains in U.S. orders for durable goods, the largest annual rise in house prices in seven years and rising consumer confidence fuelled speculation the Fed would rein in its $85 billion monthly bond-buying programme, which had helped push gold prices to record highs in recent years.

“We bought gold for two reasons – because we were worried about the inflationary impact of policy and because we thought the financial system was going to fall apart,” Sean Corrigan, chief investment strategist at Diapason Commodities Management, said.

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Vancouver mining firm Barkerville admits big error in British Columbia field’s gold estimate – by Peter Koven (Vancouver Sun – June 25, 2013)

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

Frank Callaghan admits it: telling investors his company held 10.6 million ounces of contained gold last year was a big mistake. “I’ve learned that lesson. Not a nice way to learn it by the way, but I did,” the chief executive of Barkerville Gold Mines Ltd. said.

Almost a year ago, Barkerville, a small junior mining company, stunned the mining community by stating its Cow Mountain project in British Columbia had an indicated resource of 10.6 million ounces of gold, and could hold up to 90 million ounces. Barkerville shares soared even though numerous experts thought the numbers were too good to be true.

One of the biggest skeptics was the British Columbia Securities Commission (BCSC). The regulator promptly cease traded the stock and voiced many concerns about how the data was compiled.

That put pressure on both Barkerville and Peter George, the independent geologist who calculated the resource. To address the BCSC’s concerns, Barkerville hired two consulting firms (Snowden Mining Industry Consultants and Apex Geoscience) to work with Mr. George on an updated resource estimate.

It took a long time, but they have finally finished their work. The new numbers are significantly lower, but in Mr. Callaghan’s view they prove Mr. George was on the right track.

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Rae in great position to influence Ring of Fire – by John R. Hunt (Sudbury Star – June 26, 2013)

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

Bob Rae is quitting federal politics, but in his new role he may exercise considerable influence upon the future of Northern Ontario. His resignation as MP has sparked a flood of superlatives.

Rae has been called the best prime minister Canada never had and the worst Ontario premier the province ever had. He remains untouched by personal scandal. A political celebrity with friendly contacts in many powerful places.

He is giving up a lot to become a negotiator for the First Nations in the Ring of Fire mining region. According to some reports, he will be negotiating on behalf of as many as nine First Nations. Presumably, native peoples will want a share of the wealth generated by new mines and as many jobs as possible.

Usually, politicians are only influenced by votes or potential votes. Rae will be representing a miniscule percentage of the Ontario population, but he will have both moral authority and a large degree of public support.

The residential schools scandal and the deplorable conditions reported on many reserves have given Canadians a collective guilty conscience that will demand a square deal for the natives in the Ring of Fire.

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Canaccord likens the late 90s downturn to ongoing junior dump – by Kip Keen (Mineweb.com – June 25, 2013)

http://www.mineweb.com/

Canaccord turns back the clock to look at dark times past for the junior sector, finding similarities between today’s market decline and the 1990s.

HALIFAX, NS (MINEWEB) – Canaccord Genuity casts its gaze back on junior sector downturns past to find context in the current, now two-year long rout in junior equities in its most recent Junior Mining Weekly report. As has been noted in these pages, that means skipping over the quick 2008-2009 financial crisis, when juniors rose about as quickly as they fell, to the crumbling junior market in the late 1990s.

“The drop in the TSX Venture harkens back to the 1995-2000 period where it fell (70-75%) from peak to trough over a plus 40-month time frame,” Canaccord noted, referring to the TSX Venture’s precursor, the Vancouver Stock Exchange. Canaccord notes the Venture has so far dropped about 65 percent in 29 months since it started going south, in serious, in 2011. This is more drawn out that the 2008-2009 crash and in profile reminds Canaccord of the late nineties downturn.

Adding some context here Cannacord draws on a veritable list of fear factors that some may rather have forgotten: “This period enveloped the Asian financial crisis (1997), which included Thailand, Indonesia and South Korea, the U.S. dot-com technology bubble (1997-2000), the LongTerm Capital Management hedge fund bailout (1998), Russian debt default (1997-1998) and the Brazilian financial crisis (1994-1999), not to mention the Bre-X Minerals scandal (1996-1997) that tainted investors’ confidence in the junior mining sector.”

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Obama buys more wiggle room on Keystone decision – by Claudia Cattaneo (National Post – June 26, 2013)

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

In announcing his plan to restrain climate change Tuesday, United States President Barack Obama effectively named his price for approving the Keystone XL pipeline: no net increase in greenhouse gas emissions.

The surprise reference to the Canadian project was made in a speech at Washington’s Georgetown University, where he announced long-expected mandatory reductions of greenhouse gas emissions by operators of power plants, the biggest single source in the U.S., while continuing to promote green energy.

“This does not mean we are going to suddenly stop producing fossil fuels,” Mr. Obama added. “But our energy strategy must be about more than just producing more oil. And by the way, it’s certainly got to be more than just building one pipeline.

“I know there has been, for example, a lot of controversy around the proposal to build the pipeline, the Keystone pipeline, that would carry oil from Canadian tar sands down to refineries in the Gulf and the State Department is going through the final stages of evaluating the proposal. That’s how it’s always been done.

“But I do want to be clear. Allowing the Keystone pipeline to be built requires a finding that doing so would be in our nation’s interest. And our national interest will be served only if this project does not significantly exacerbate the problem of carbon pollution.

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Goldcorp – Marlin Mine: Special focus – by Will Daynes (BE Mining – June 7, 2013)

http://www.bus-ex.com/

Sustainable opportunities

While Guatemala’s enormous mining wealth is no longer the well-kept secret that it once was it is still an industry very much in its infancy. Through its Marlin Mine operations, Montana Exploradora de Guatemala, a subsidiary of the Canadian firm Goldcorp, is working to ensure the country will soon be able to unlock its potential.

Possessing a land mass of almost 109,000 square kilometres, the Central America country of Guatemala shares its borders with Mexico, Belize, Honduras and El Salvador, as well as the Pacific coastline to the Southwest and a part of the Caribbean coastline to the east.

Boasting a diverse history, a rich and distinctive culture, and areas of immense natural beauty, Guatemala has, in more recent times, become just as well known for its enormous gold potential. Indeed in 2007 one mine alone processed some 1.7 million tonnes of mineral with an average gold content of 4.55 grams per tonne and 84.31 grams of silver per tonne, further confirming the country as a mining destination of particular interest.

Possessing a stable, macroeconomic backdrop, Guatemala is fast earning a reputation as having perhaps the greatest future mining potential of any Central American country. Other factors that are helping to attract the interest of international investors include the free movement of goods and trade, and a local labour force with a reputation for being hard working, fast learners.

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Oh, Canada: How America’s friendly northern neighbour became a rogue, reckless petrostate – by Andrew Nikiforuk (Foreign Policy Magazine – July/August 2013)

http://www.foreignpolicy.com/

Andrew Nikiforuk is contributing editor to the Tyee, a Canadian online newspaper, and author of Tar Sands: Dirty Oil and the Future of a Continent.

For decades, the world has thought of Canada as America’s friendly northern neighbor — a responsible, earnest, if somewhat boring, land of hockey fans and single-payer health care. On the big issues, it has long played the global Boy Scout, reliably providing moral leadership on everything from ozone protection to land-mine eradication to gay rights. The late novelist Douglas Adams once quipped that if the United States often behaved like a belligerent teenage boy, Canada was an intelligent woman in her mid-30s. Basically, Canada has been the United States — not as it is, but as it should be.

But a dark secret lurks in the northern forests. Over the last decade, Canada has not so quietly become an international mining center and a rogue petrostate. It’s no longer America’s better half, but a dystopian vision of the continent’s energy-soaked future.

That’s right: The good neighbor has banked its economy on the cursed elixir of political dysfunction — oil. Flush with visions of becoming a global energy superpower, Canada’s government has taken up with pipeline evangelists, petroleum bullies, and climate change skeptics. Turns out the Boy Scout’s not just hooked on junk crude — he’s become a pusher. And that’s not even the worst of it.

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Hail to the New Province of ‘Noront’ [Northern Ontario separation] – by Joe Lascelles (Highgrader – Summer 2013)

http://www.highgradermagazine.com/

HighGrader Magazine is committed to serve the interests of northerners by bringing the issues, concerns and culture of the north to the world through the writings and art of award-winning journalists as well as talented freelance artists, writers and photographers.

Having been raped, robbed, screwed over from the beginning of Confederation, the Northern region of Ontario has had enough and we will not take it anymore. We will no longer let those feudal lords (Southern Ontario politicians) dictate how much they will leave Northerners to eat as they carry away our resources, all to fatten the coffers and the members of Government, to be spent almost exclusively in Southern Ontario.

For years, decisions for Northern Ontario have been made in Toronto by Southern politicians who, it might be said, have not bothered to even come to see how we live, see what we do for entertainment and how deep and numerous our potholes are. Southern Ontarians take as truth the Stompin’ Tom Connors ditty that Sudbury women play Bingo and the men all get stinko on a Sudbury Saturday night.

For all they think of us, most Northerners now have oil stoves to heat up our igloos. We can now cook up our seal blubber before eating it. Timmins? That’s really the North Pole isn’t it? Cochrane? Oh yes, they know something of Cochrane because they have polar bears roaming around the Esquimo village.

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