Financial, human toll of ‘horrific’ Big Gossan accident costs FCX dearly – by Dorothy Kosich (Mineweb.com – July 24, 2013)

http://www.mineweb.com/

28 fatalities, the loss of millions of pounds of copper and thousands of ounces of gold, as well as creating a new oil & gas subsidiary, slammed FCX’s 2Q.

RENO (MINEWEB) – The tunnel collapse in a Freeport-McMoRan Copper & Gold training facility in Indonesia “was an incredibly horrific convergence of events that came together because of the geology of the rock and the influence of water and air on our ground support facilities, and unfortunately just happened as we were having this training meeting,” CEO Richard Adkerson told analysts during a conference call Tuesday.

On May 14th, the accident occurred at PT Freeport Indonesia, which resulted in 28 fatalities and 10 injured when the rock structure above an underground ceiling for a training facility collapsed in an unprecedented and unexpected event. While the accident occurred outside of mining operations, mining and processing activities at the Grasberg complex were temporarily suspended as Indonesian government authorities also conducted inspections.

“In the quarter, we lost roughly 125 million pounds of copper and 125,000 ounces of gold,” said Adkerson. “The full year impact will be greater than that. We estimate 230 million pounds of copper and 250,000 ounces of gold.”

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William Boor, Cliffs Natural Resouces Senior VP-Global Ferroalloys, Ring of Fire Thunder Bay Speech (June 20, 2013)

http://www.cliffsnaturalresources.com/

William Boor, senior vice president — global ferroalloys, spoke at the 3rd Annual Ontario Mining Forum, held in Thunder Bay in June 20-21, 2013. During his keynote address, Mr. Boor talked about Cliffs Chromite Project and the potential impacts and opportunities mineral resource development projects can have for the communities of the Ring of Fire region of Northern Ontario.

Third Ontario Mining Forum Speech – by William Boor, Senior Vice President Global Ferroalloys

This evening I’m very happy to be here, happy to have the opportunity to speak to such a great room and a wonderfully captive audience as well. I’m excited about the opportunity because I think we have come to a time that will prove to be really critical in the history of the Ring of Fire development.

I wanted to start out by saying that I stand here talking tonight as a face of “industry.” We talk about Government, First Nations and industry and I am the face of industry. I know what comes with that. As “industry” I am expected to be self-interested for my company’s shareholders only, interested in keeping as much as possible, and by inference, giving as little as possible.

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Ring of Fire talks between First Nations, province to start soon – by Alisha Hiyate (Mining Markets Magazine – July 23, 2013)

http://www.miningmarkets.ca/

Bob Rae on his new gig as chief negotiator for the Matawa Tribal Council

Talks between First Nations and the Ontario government regarding development in the remote Ring of Fire area are set to start soon, now that both sides have appointed lead negotiators.

In May, the Matawa Tribal Council, which is made up of nine First Nations communities that would be most affected by potential development in the Ring of Fire, announced that lawyer and politician Bob Rae will be their chief negotiator. Rae was the leader of the federal Liberal party until mid-April, and premier of Ontario from 1990-1995. He will step down as MP for Toronto-Centre at the end of July, freeing him to work on the negotiations full time.

Earlier this month, the province named its own chief negotiator — retired Supreme Court Justice Frank Iacobucci.

While commodities prices have seen a big pullback since 2011, it might actually be a good time for such negotiations — the scope of which is yet to be defined, but will likely include investments in education and health, as well as infrastructure, and will clearly take time to conclude.

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Japan has vision for California-style ‘platinum valley’ in SA – by Helmo Preuss (Business Day Live – July 23, 2013)

http://www.bdlive.co.za/

JAPAN plans to encourage a “platinum valley” in South Africa similar to the US’s Silicon Valley, minister in the Japanese embassy in Pretoria Ken Okinawa told BDlive in an exclusive interview last week.

“What we want to do is encourage South Africa to establish a kind of platinum valley here similar to Silicon Valley in California. This facility would aim to find new uses for platinum, while also addressing issues such as job creation and beneficiation,” he said.

To promote this, a senior Japanese expert in fuel cells would shortly come to South Africa, he said.

Government-led projects have supported the commercialisation of fuel cells for many years in Asia, Europe and North America, and this has led to cost reduction, technological advancements and customer acceptance.

Yoshinori Tanaka of the national policy unit in Japan said in 2012 that the need for platinum group metals was likely to increase as more fuel cells that used platinum as a catalyst were installed in cars and homes.

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Mark Cutifani to set out his vision for Anglo American – by James Wilson and Andrew England (Financial Post – July 22, 2013)

http://www.ft.com/home/us

Metals prices are under pressure. Costs remain sky-high. And disgruntled shareholders want more money back. Yet still there is a consolation for most mining chief executives: their problems are not as bad as Mark Cutifani’s.

At Anglo American, the diversified miner he has led since April, Mr Cutifani does not merely have to pep up the company’s financial performance. In South Africa, where Anglo’s roots date back nearly 100 years, he has to show political savvy to negotiate a sometimes violent environment of labour unrest and government anger. In Brazil, Anglo’s flagship iron ore project is wildly over schedule and budget.

This week Mr Cutifani, one of a cohort of recently anointed chief executives at the world’s largest mining groups, has promised his first public explanation of how he intends to improve Anglo, which underperformed its peers during the mining boom. Since 2008 Anglo’s total shareholder return has halved compared with a fall of 24 per cent for Rio Tinto and a 44 per cent increase for BHP Billiton.

“The company has not been delivering on shareholder expectations,” he acknowledges. “We need a much more commercial, value-focused mindset.” Rivals including BHP and Rio have promoted insiders to their top jobs, arguably giving them a head start in addressing a markedly more pessimistic environment for the sector.

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Guatemalans can sue HudBay in Canada, judge rules (CBC News Business – July 23, 2013)

http://www.cbc.ca/news/business/

Miner faces lawsuits over alleged rapes and violence at Guatemalan mine unit

An Ontario court has cleared the way for a group of Guatemalans to sue mining company HudBay Minerals Inc. in Canadian courts over alleged shootings and gang rapes at a mining project. The ruling, handed down Monday, means that the claims of 13 Mayan Guatemalans can proceed to trial in Canadian courts, according to a lawyer for the plaintiffs.

The Guatemalans are attempting to sue over gang rapes by security personnel and military personnel at the Fenix project nickel mine near El Estor, Guatemala in 2007 and 2009. The indigenous group have also alleged a shooting at the same mine paralyzed one victim, while a local community leader who voiced opposition to the mine was beaten and killed.

Lawyers for the plaintiffs called it a “wake-up call” for Canadian miners, saying the Toronto-based company could potentially be held legally responsible at home for actions by its subsidiary in Guatemala.

“As a result of this ruling, Canadian mining corporations can no longer hide behind their legal corporate structure to abdicate responsibility for human rights abuses that take place at foreign mines under their control at various locations throughout the world,” said Murray Klippenstein, lawyer for the 13 indigenous Mayans, in a press statement.

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B.C. aboriginals entering mining industry in large numbers, report says – by Brian Morton (Vancouver Sun – July 23, 2013)

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

B.C. aboriginals are entering the mining profession in growing numbers and a growing number of them are women, according to a report released Tuesday.

The PwC report conducted for the B.C. Aboriginal Mine Training Association also found that the dollars invested in training an aboriginal job candidate for a mining career resulted in a nearly 300-per-cent increase in annual wages for the employee, from an average of $13,754 to $52,959.

“So, for about a $15,000 investment in our employed candidates, they are contributing about $108,000 to the provincial GDP,” said association chief executive Laurie Sterritt on Tuesday. “That’s pretty impressive. There’s also a 280-per-cent increase in their salary levels, on average. “In addition to the obvious financial benefits, it provides them with confidence, empowerment, hope and possibilities, which changes lives.”

The report found that an investment of $14,808 trains one candidate and generates approximately $106,804 on average for the provincial economy through higher wages and increased spending. As well, each employed graduate generates about $20,000 in government revenue.

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Energy has risks. We learn to manage them – by Kenneth Taylor (Globe and Mail – July 24, 2013)

The 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.

Kenneth Taylor retired in 2012 after a 35-year career as an environmental-social planner in the natural gas pipeline industry. He lives in Calgary.

The recent tragic events in Lac-Mégantic, Que., have brought a well-deserved sharper focus to the public discourse on the risks of transporting and handling the fuels that power our everyday world. After several years in which pipeline transport of oil has been the fashionable target for those who are inclined to protest elements of our modern world, railways have now moved into the crosshairs. This gives us an opportunity to reconsider how our society assesses and manages the relative risks of transporting and handling energy.

Each form of the energy we rely on has inherent characteristics that result in risks we must manage for our everyday safety. After long periods of usage, society learns what these risks are and, considering the consequences, develops strict codes of safe use. For example, electricity has its dangers, but in its household power or battery forms, it works beside nearly every one of us virtually 24 hours a day.

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Newfoundland, Quebec heading for a showdown over Muskrat Falls power plant – by Steven Chase (Globe and Mail – July 24, 2013)

The 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.

Newfoundland and Labrador Premier Kathy Dunderdale will find herself face to face with Quebec counterpart Pauline Marois on Wednesday as the Atlantic Canadian leader pushes for greater control in a bitter, decades-old feud over the sale of electricity generated by hydro power in Labrador.

On the eve of an annual premiers meeting in Niagara-on-the-Lake, Ont., Ms. Dunderdale went public with a sharp attack on the Quebec government’s power utility, accusing it of making a “desperate move” to thwart Newfoundland and Labrador’s power business plans.

The Atlantic province, which believes it got a raw deal in a long-term supply agreement with Quebec, says it expects to gain a greater say over power deliveries to its neighbour in 2016 when the energy contract is automatically renewed for 25 years.

Newfoundland and Labrador, which owns two-thirds of the existing Churchill Falls generating station through a Crown corporation, says it believes that as of the renewal date, it will be able to revise its delivery schedule for Quebec-bound electricity so that it can operate the facility in tandem with the $7.7-billion Muskrat Falls hydro power development planned for downstream.

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Ottawa gives railways new guidelines for hazardous goods in wake of Lac-Mégantic tragedy – by Shawn McCarthy and Jacquie McNish (Globe and Mail – July 24, 2013)

The 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 AND TORONTO — The federal government has issued new safety guidelines for railways carrying hazardous goods after being urged to do so by the Transportation Safety Board in the wake of the fatal derailment in Lac-Mégantic, Que.

Transport Canada announced an “emergency directive” Tuesday that requires rail operators to ensure all trains loaded with hazardous goods are run by at least two qualified people. It also said no such trains can be left unattended on main tracks and tightened rules covering the use of handbrakes and other equipment that would prevent an unattended train from moving.

The rules come as the Conservative majority on a House of Commons committee rejected an NDP effort to begin studying rail safety in Canada, with the government side arguing that the committee should wait for more information on what caused the accident and that a parliamentary study now would draw critical resources away from the investigation.

The government acted just four days after a call for new regulations by the Transportation Safety Board, which is investigating the deadly accident.

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Compromises necessary in review of [B.C.] Prosperity mine – by Barbara Yaffe (Vancouver Sun – July 22, 2013)

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

Environmental interests must balance with job creation potential

VANCOVUER — As a Hollywood movie it would be titled Dead Mine Walking, according to a B.C. aboriginal group fighting a gold and copper development near Williams Lake.

In reality, the proposed New Prosperity Mine in the Cariboo-Chilcotin region is experiencing a “Take Two” moment, undergoing its second federal environmental review. An earlier Prosperity mine proposal, put forward by Vancouver-based Taseko Mines, was rejected back in 2010 by a similar federal panel.

The company has since overhauled its plans, pledging to preserve nearby Fish Lake, which it previously planned to use as a tailings pond repository. Taseko notes it is spending $300 million to mitigate impacts on wildlife and habitat in the area.

The company hopes such measures will help it win the nod from the review panel, which consists of an environmental assessment specialist from Calgary, a community consultation expert from Sidney, and a Victoria geologist.

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INDIA HUNTS FOR COAL IN BC (Asia Pacific Post – July 23, 2013)

http://www.asianpacificpost.com/

India has announced that it is exploring options for sourcing coal from British Columbia, including equity participation in assets and acquisition of mines just as Vancouver city council voted to ban the handling, storage and trans shipment of coal at its marine terminals and berths.

The ban, mostly symbolic, was passed as Port Metro Vancouver, the No. 2 exporter of coal in North America triggered controversy over planned expansion of its facilities. Vancouver city council has no jurisdiction over the port operations.

Even before the ink was dry on the 9 to 2 vote which aims to curb greenhouse gas emissions and set the air quality target to “breath the cleanest air of any major city in the world”, a high powered delegation from India met with British Columbia Premier Christy Clark to scour for coal resources.

The Indian delegation was led by Steel Minister Beni Prasad Verma who is looking to feed India’s steel industry which is growing at a fast pace and needs additional quantities of coking coal. “The delegation held a series of discussions with the coal asset owners and various avenues for sourcing coking coal to India to meet its ever-growing requirement were discussed,” an official statement said.

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Mark Mobius bullish on gold, oil and Southeast Asia – by John Shmuel (National Post – July 19, 2013)

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

The Financial Post sat down with emerging markets guru Mark Mobius of Franklin Templeton Investments on Friday to talk about his outlook for global stock markets and commodities. Mr. Mobius is known as one of the pioneers of emerging market investing, and despite the bloodbath in emerging market stocks this year, he still sees plenty of investment opportunities. He also sees potential in gold, which has suffered from its own epic price crash in 2013. Below is an edited transcript from our interview with Mr. Mobius.

Q It’s been a bloodbath for BRIC stocks and economies this year. Is there still opportunity there or should investors move on?

A There’s no question, they’ve bombed.

Overall, however, I think the BRIC countries will definitely have big comebacks, and they’ll do quite well, despite what we’ve seen recently. They’re huge, they have growth, and a lot of companies there are showing us sustained, strong earnings.

Q It’s also been a bad year to be a gold investor. Is the gold story over, or is this just a hiccup for the precious metal?

A There are really two markets in gold. There is the market price, and there is real demand. Market price is influenced by derivatives, by short sellers, by all kinds of actions by traders who are not taking physical delivery.

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PRESS RELEASE: BMO Global Asset Management Sees Renewed Potential in Commodity Sector Equities

July 23, 2013, 10:01 a.m. EDT

Don Coxe of Coxe Advisors to Speak at CFA Institute’s Financial Analysts Seminar

CHICAGO, IL, Jul 23, 2013 (Marketwired via COMTEX) — Investors may recall that the commodities-driven Toronto Stock Exchange was a star performer for an extended period in the mid-2000s. Since then, this asset class, which had benefited from strong global growth during the early years of this century, has languished. In particular, gold stocks have been unloved and unwanted, though they should benefit from widespread and aggressive printing of money by the world’s central banks.

For thoughtful investors, there is reason to believe the “Commodities Supercycle” is far from over, advises Don Coxe, Chairman, Coxe Advisors LLP. The global commodities and equity investment strategist is a key advisor to BMO Global Asset Management and a member of BMO Financial Group. Coxe will deliver this message as a featured speaker at the CFA Institute’s 2013 Financial Analysts Seminar, which begins today in Chicago. Coxe will present on Wednesday, July 24.

“Commodity prices are, in general, close to where they were in 2007, but the stock prices of their producers are back to where they were in 2004,” explained Coxe. “That presents an opportunity for long-term investors.” He also noted that, “Gold, the financial antimatter to inflation, presents a great opportunity, and the disillusionment with mining stocks appears to us to be nearing an inflection point.”

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