July 3, 2013 – Republic of Mining

Mining’s who’s-who leave AMCU out to dry as accord is signed – by Martin Creamer (MiningWeekly.com – July 3, 2013)

July 3, 2013

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

PRETORIA (miningweekly.com) – The who’s who of the South African mining sector on Tuesday went ahead and signed the framework agreement for sustainable mining without waiting any longer for the emerging Association of Mineworkers and Construction Union (AMCU) to do so, providing a formidable potential bulwark against any errant behaviour during the upcoming wage talks.

Deputy President Kgalema Motlanthe, himself a former mineworker and union leader, led a top table of government, labour and business ratification of the document that AMCU helped to draft 19 days ago, and urged the absent AMCU to do the same as soon as it had consulted fully with its members.

Motlanthe told a media conference that at the Presidential Guest House in Pretoria that there was overwhelming agreement that the framework captured the correct approach to addressing the South African mining industry’s niggling problems.

“It also provides a roadmap,” he said of the framework’s stipulation of issues that had to be tackled forthwith and those that would be tacked in the medium and long term, with inputs from AMCU, the National Union of Mineworkers, Solidarity, UASA, the Chamber of Mines, the South African Mining Development Association and government.

The declaration at the foot of the document signed lays down swift action, no abrogation of responsibilities and immediate meetings to deal with problems.

Top 10 gold miners face 2013 earnings nightmare – by Lawrence Williams (Mineweb.com – July 2, 2013)

July 3, 2013

http://www.mineweb.com/

The tribulations of the world’s No. 1 gold miner, Barrick, are a sign of huge difficulties ahead for the other gold majors too.

LONDON (MINEWEB) – Barrick Gold’s latest announcement of yet a further delay in the hugely costly Pascua Lama gold mine, high in the Andes makes one wonder if the company will ever bring it on stream – however the huge amount of money spent so far suggests the world’s No.1 gold miner has gone too far to can the project now and maintain any kind of shareholder confidence.

See also: Barrick’s huge Pascua-Lama gold mine start-up now delayed to mid-2016

Even so, the project could yet be delayed beyond its new projected start-up date of mid-2016 given continuing local hostility on both sides of the Chile and Argentina borders and one has to anticipate that overall capital costs to bring the mine into production may end up to be yet substantially higher – perhaps in excess of $10 billion when the money is finally counted.

Nowadays Barrick says costs have escalated from around $2 billion, when the initial development plans were set, to the current $8 billion plus and a revised capital cost update has been promised for Q3 this year when the re-sequenced construction schedule has been finalised.

World Bank says mining can make double digit contribution to Nigeria’s GDP – by Luke Ajulo (World Stage Group – July 3, 2013)

July 3, 2013

http://www.worldstagegroup.com/worldstagenew/index.php

WorldStage Newsonline—From the current 0.5 per cent contribution of mining to Nigeria’s Gross Domestic Product (GDP), the World Bank believed that a duble digit figure can be achieved through proper planning.

Speaking at Stakeholders Workshop on the Australian and Canadian Externally Financed Output (EFO) Programme for Mining Sector Development in Nigeria, the World Bank Country Director, Marie Franciose Marie-Nell, said that in partnership with the Canada International Development Agency (CIDA) and the Australian Agency for International Development (Aid), the World Bank was launching a two-year mining sector intervention Programme as a continuation of the Sustainable Management of Mineral Resources Programme which ended last year.

Represented by Mr.Mr. Michael Wong, he said that “it is a stepping stone for a further programme and a wider engagement in the mining sector. As we know, the contribution from the sector is 0.5% GDP, and it can be increased to double digit if possible and we hope that contribution are needed and the Australian government will assist the ministry in developing the roadmap towards the development of the sector.”

He said the Programme is financing timely integrated infrastructural development, adding that the Programme fits into the country’s new system framework for development partners such as DFID, the African Development Bank and others.

Nishnawbe-Aski Nation wants in on Ring of Fire talks – by Jody Porter (CBC News – July 3, 2013)

July 3, 2013

http://www.cbc.ca/thunderbay/

Ontario can’t ignore other First Nation concerns, NAN deputy chief says

One day into his new role and fresh challenges are cropping up for the province’s negotiator in the Ring of Fire. Ontario appointed former Supreme Court Justice Frank Iacobucci on Tuesday as it’s negotiator in talks with the nine Matawa chiefs whose communities are closest to the proposed mining development.

Former Ontario Premier Bob Rae is representing those chiefs in the planned talks. But the Nishnawbe Aski Nation says it needs a seat at the table too. “This is not just a specific regional project, in fact it is a treaty-wide impact and I think that’s what the province needs to recognize,” NAN deputy chief Les Louttit. “We would like to see a broader negotiation framework.”

Lessons from Attawapiskat

Nishnawbe Aski Nation represents 49 First Nations in Northern Ontario. Louttit said communities on the James Bay coast, downstream of the proposed mining development, are especially concerned about environmental impacts.

That’s also the area that has learned hard lessons about the mining industry from its experience with the diamond mine near Attawapiskat, he said. “We cannot simply keep going the way we have in the past,” Louttit said.

Beware dire predictions on Obama’s war on coal – by Steve Hargreaves (CNN Money – July 3, 2013)

July 3, 2013

http://money.cnn.com/

When President Obama announced steps to rein in greenhouse gases last week, the condemnation was swift and fierce.

“It is astonishing that President Obama is unilaterally imposing new regulations that will cost jobs and increase energy prices,” House Speaker John Boehner said of Obama’s plan, which would heavily target emissions from coal-fired power plants.

How steep of a cost do critics fear? Some 500,000 jobs lost and $1.65 trillion shaved off the national income by 2030 if all coal plants have to close, according to a Heritage Foundation report released the day after Obama announced his plan.
Yet there’s reason to doubt these and similarly dire predictions.

Environmental clean up is a difficult thing to measure. Early estimates on how much it would cost to clean air or water have often turned out to be way off. The debate over acid rain is a good example. In the late 1980s, the nation was considering tough new rules on coal-fired power plants and other industrial emitters to curb what was then a major problem.

The Environmental Protection Agency estimated the new rules would total $6 billion in both retrofit costs and in knock-on effects to the economy — such as higher energy prices that cause manufactures to set up shop elsewhere — according to Robert Stavins, director of the Environmental Economics Program at Harvard University.

Why the ‘War on Coal’ Campaign Will Likely Fall Flat—Again – by Coral Davenport (National Journal – July 3, 2013)

July 3, 2013

http://www.nationaljournal.com/

Within hours of President Obama’s sweeping climate speech last week, Republican campaign committees reignited the charge that the president has declared “War on Coal.” They blasted inboxes and airwaves with “War on Coal” talking points, now aimed squarely at Democrats running in Senate and House races in 2014.

The “War on Coal campaign” failed to unseat Obama in the 2012 presidential campaign. And despite the potency of the rhetorical attack, it’s unlikely to have much impact on the 2014 races.

It’s true that President Obama’s plan takes direct aim at the U.S. coal industry. At the heart of the plan are new regulations slashing carbon pollution from new and existing coal-fired power plants. It could well put thousands of coal miners out of work.

But it’s not a given that it will cost Democrats politically.

Here’s why: As National Journal reported last week, the political power of coal has fundamentally weakened, a shift laid bare by last year’s elections. Between 2008 and 2012, the coal industry nearly quadrupled its political contributions, directing 90 percent of its money towards Republicans. But Obama still won comfortably in the four key swing states that produce the most coal: Virginia, Colorado, Pennsylvania, and Ohio.

Environmental headwinds buffet BHP in Colombia – by Brian Robins (Sydney Morning Herald – July 1, 2013)

July 3, 2013

http://www.smh.com.au/

In the wake of heightened environmental sensitivities to the activities of mining companies in Latin America, BHP Billiton’s plans to expand a nickel mine in Columbia have been blocked.

Governments in the region from Chile to Argentina have forced several global mining companies to rethink mine applications in response to growing criticism over the industry’s rising incursions.

Late last week, Colombia’s environmental licensing authority, Autoridad Nacional de Licencias Ambientales, turned down a request from BHP Billiton’s Cerro Matoso nickel mine to expand the site, according to wire reports. Cerro Matoso is the second largest producer of ferro nickel globally.

The request was denied because existing environmental permits cannot be modified to enable mining projects to be expanded, the environmental authority said.

The BHP Billiton project, which has operated for many years, produced more than 47,000 tonnes of nickel last year. The mine taps a laterite nickel deposit that is used as feedstock at a ferro-nickel smelter nearby. Most nickel is used to produce stainless steel.

Local view: Investment proves merit of Northland copper mines – by Frank Ongaro (Duluth News Tribune – June 30, 2013)

July 3, 2013

http://www.duluthnewstribune.com/

Frank Ongaro is the executive director of MiningMinnesota.

Minnesota’s business climate received a significant boost recently when two of the state’s proposed copper, nickel and precious metals mining projects secured more than $50 million in long-term financing. Investors throughout the world are recognizing that the strategic metals deposits found in Northeastern Minnesota represent a world-class economic opportunity for our state.

PolyMet Mining, the developer of the Northmet Project near Hoyt Lakes, received a $20 million bridge loan from Glencore International PLC, based in Switzerland, to pay for operations while a $60 million stock offering is completed. Duluth Metals, the majority partner in the development of the Twin Metals Project

in the Babbitt/Ely area, received a $30 million investment from CEF (Capital Markets) Limited, a subsidiary of Canadian Imperial Bank of Commerce and Cheung Kong (Holdings) Ltd.

These investments provide more than important capital; they provide independent validation of the quality of the projects proposed. Smart investors will invest only in projects that are likely to succeed, and that means projects that will meet and exceed all state and federal environmental standards and regulations.

Barrick may wipe out retained earnings with huge Pascua-Lama writedown – by Peter Koven (National Post – July 3, 2013)

July 3, 2013

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

Barrick Gold Corp. is poised to wipe out all of its retained earnings for the second time in less than four years.

An anticipated writedown of US$4.5-billion to US$5.5-billion on the bungled Pascua-Lama project would eliminate the US$3.9-billion in retained profits that the gold giant reported at the end of the first quarter. Back in 2010, Barrick wiped out more than US$2.2-billion of retained earnings when it took a US$5.2-billion charge to close out its hedge book.

It is highly unusual for a company of Barrick’s size and profitability to be in this position twice in such a short time. And while these are non-cash charges, experts said they point to a troubling trend of poor decision-making and oversight at the world’s largest gold producer.

“The writedowns impact them in perception,” said George Topping, an analyst at Stifel Nicolaus.

The red ink could be a lot bigger when the company reports second quarter earnings in four weeks. Barrick warned of other possible impairments last Friday, and analyst Greg Barnes of TD Securities estimated they could total close to US$10-billion.

Ex Supreme Court justice Iacobucci in Ring of Fire talks – by Richard J. Brennan (Toronto Star – July 3, 2013)

July 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.

Former Supreme Court of Canada justice Frank Iacobucci is Ontario’s lead negotiator dealing with First Nations in Ring of Fire development.

Queen’s Park has turned to veteran jurist Frank Iacobucci to be the province’s lead negotiator in Ring of Fire resource development talks with Matawa Tribal Council chiefs.

Referred to as one of most promising mineral developments in Ontario in almost a century, the resource rich Ring of Fire, 540 kilometres northeast of Thunder Bay, includes the largest North American deposit of chromite, a key ingredient used in stainless steel.

“I hope we can get an agreement . . . to have the involvement and participation of the First Nations in a fair and honourable and equitable manner,” the former Supreme Court of Canada justice told the Star after his appointment was made public Tuesday.

“This is not a quick fix and it has got to be the right fix,” he said. “This is a huge opportunity for economic development for the province, for the (mining) companies and . . . for the First Nations people.”

Province names Ring of Fire go-to guy – by Carl Clutchey (Thunder Bay Chronicle-Journal – July 3, 2013)

November 3, 2015July 3, 2013

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

One of the country’s best legal minds will sit down with a former premier and Rhodes scholar when the Ontario government and Matawa Tribal Council discuss the impacts of mining development in the Ring of Fire.

The province announced Tuesday it has appointed retired Supreme Court of Canada justice Frank Iacobucci as its Ring of Fire negotiator for talks with the Matawa group, which represents half a dozen fly-in reserves in the immediate ROF orbit.

The position follows news last month that main ROF proponent Cliffs Natural Resources has temporarily halted its work on the environmental assessment for its chromite project.

Specifically, Iacobucci is to focus on environmental protection and monitoring, planning and development, revenue sharing, and social and economic supports for First Nations as they relate to future mining in the ROF belt located 540 kilometres northeast of Thunder Bay.

The 76-year-old Iacobucci, who recently authored an unflattering report about how aboriginals are being disadvantaged by the province’s justice system, called his appointment an “honour.”