September 12, 2013 – Republic of Mining

NEWS RELEASE: GCA comments on Ring of Fire right of way decision

September 12, 2013

NORTH BAY, ON, Sept. 12, 2013 /CNW/ – The General Chairperson’s Association (GCA) representing unionized employees at Ontario Northland is pleased with this week’s decision by the Ontario Mining and Lands Commissioner to dismiss the application by Cliffs Natural Resources for an easement to allow that company to build an all-weather road over mining claims staked by KWG Resources.

“The GCA believes the best, most cost efficient and environmentally responsible manner to provide transportation into and out of the Ring of Fire development for all stakeholders is a railway. A private, provincially funded $700M + road is in no one’s best interest, least of all taxpayers” said GCA spokesperson Brian Kelly

In the fall of 2012, the GCA unveiled a high level proposal that would, in consultation with the Government of Ontario, Government of Canada and First Nations create a new federal crown corporation that would see all ONTC assets including its telecom division ONTERA transferred. This new crown corporation would provide an expanded and revitalized, integrated transportation and communication system across the north while having the ability to obtain financing to design and build a railway into the Ring of Fire that would ship thousands of tons per day of chromite, nickel, other minerals and finished products to markets around the world.

How Mark Cutifani plans to reshape Anglo American – by Charlotte Mathews (Financial Mail – September 12, 2013)

September 12, 2013

http://www.fm.co.za/

Sculpting new shapes

New Anglo American CEO Mark Cutifani says its new strategy will capitalise on future shortages of food, water, energy and the commodities needed for infrastructure development. Charlotte Mathews assesses the challenges faced by the miner.

Big mining companies are groping for their hangover remedies after the long commodities supercycle party. Anglo American had less fun than the rest but still got the hangover. Between 2001 and 2008 BHP Billiton’s share price on the JSE rose almost 10 times — to R300. Anglo American’s rose fivefold to R550. Now Billiton’s share price is R303 and Anglo’s is R255.

The supercycle was a theory put forward in 2004 by Chip Goodyear, then CEO of Billiton. He argued that as China and India played catch-up with the rest of the world in infrastructural development, demand for commodities would stay “stronger for longer” for at least a decade or more.

In fact the supercycle lasted only another two years. A 10-year graph of “Dr Copper”, a proxy for demand for industrial metals, shows prices flattened from mid-2006 and, apart from the dip after September 2008, have tracked sideways ever since. To some analysts, this represents only a “mid cycle correction”.

Dissolution of an industry cartel leaves Potash Corp shareholders wishing ‘icon’ had sold – by Andrew Coyne (National Post – September 11, 2013)

September 12, 2013

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

Three years ago, when Australia’s BHP Billiton came bidding for Potash Corp. of Saskatchewan Inc., opponents of the deal had all of the arguments. A majority of the company’s shareholders may have lived outside Canada, along with its CEO, but nevertheless this was a Canadian icon, a “national champion,” or, if you really wanted to get hard-headed about it, a “strategic asset.”

Why would anyone want to sell a company that controlled 53% of the world’s potash reserves? Why, that is, other than the $130 a share —nearly $40 billion in total — that BHP was offering. But what was such a pittance if it meant pulling PotashCorp out of the Canadian-led global potash cartel, on which the vastly inflated world price of potash depended? Surely any idiot could see the folly in that. And in time, enough idiots did: The federal government, egged on by the government of Saskatchewan, blocked the sale.

At the time, blinkered ideologues like me expressed concern that, in the name of preventing one foreign-owned company from taking over another foreign-owned company, and for the sake of preserving “our” control of a resource that would remain as much owned, taxed and regulated by the province after the sale as before, PotashCorp’s shareholders — including the 49% who were Canadian — had been deprived of the capital gain they could legitimately have expected on the sale.

In response: Mining essential to keep the economy running – by Arthur E. Englund (Duluth News Tribune – September 12, 2013)

May 4, 2015September 12, 2013

http://www.duluthnewstribune.com/

As a 56-year member of the Society of Mining and Metallurgical Engineers, I feel a response is necessary to the Aug. 23 commentary, “What the metals-mining lobbyist left out of column speaks volumes.” The commentary opposing copper-nickel mining near the Boundary Waters Canoe Area Wilderness, without realizing it, actually cited the need for these mines. By enumerating the number of visitors to Ely (700,000 per year), the number of Boundary Waters visitors (250,000 per year) and the number of deer hunters in Minnesota (600,000) the column actually endorsed the need.

How do all of those visitors and hunters get to those recreational areas? Most likely they go in their cars and trucks and not by horse and buggy. And of course, as most everyone knows, a large amount of Earth-based minerals goes into the manufacturing of those vehicles — and it takes mined petroleum to fuel them.

The Society of Mining and Metallurgical Engineers has as its slogan, “If it can’t be grown, it has to be mined.” This is an irrefutable fact. Test it for yourself. It is not an assumption like the opponents’ that rivers and waters will be polluted by the proposed mines. Regulations and restrictions developed over years in conjunction with the latest available science and technology will provide necessary safeguards to prevent pollution.

Prophecy Platinum looks to cut costs on Sudbury-area mine – by Ian Ross (Northern Ontario Business – September 11, 2013)

September 12, 2013

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

A Vancouver-based junior miner will make a production decision next year on whether to restart a mothballed open pit base metals mine near Sudbury.

Management at Prophecy Platinum are in the midst of re-examining an old feasibility study and the operating and milling costs for the Shakespeare Mine to determine if the economics make it worthwhile to proceed with the project. The nickel-copper-platinum group metals project is located 70 km west of Sudbury near the town of Webbwood.

“It’s a good asset for us; it’s just sitting in the ground parked in neutral,” said John Sagman, Phophecy’s senior vice-president and chief operating officer. The company intends to wrap up feasibility later this year and and make a decision by the second quarter of 2014.

“From our perspective it’s not a metal price issue, it’s an operating cost issue,” said Sagman. Phophecy, which acquired the mine following a merger with Ursa Major Minerals last year, is looking to carve between 20 and 25 per cent in mining, transportation and milling costs.

Media agenda: China buys newsrooms, influence in Africa – by Geoffrey York (Globe and Mail – September 12, 2013)

September 12, 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.

NAIROBI — When one of South Africa’s biggest newspaper chains was sold last month, an odd name was buried in the list of new owners: China International Television Corp.

A major stake in a South African newspaper group might seem an unusual acquisition for Chinese state television, but it was no mystery to anyone who has watched the rapid expansion of China’s media empire across Africa.

From newspapers and magazines to satellite television and radio stations, China is investing heavily in African media. It’s part of a long-term campaign to bolster Beijing’s “soft power” – not just through diplomacy, but also through foreign aid, business links, scholarships, training programs, academic institutes and the media.

Its investments have allowed China to promote its own media agenda in Africa, using a formula of upbeat business and cultural stories and a deferential pro-government tone, while ignoring human-rights issues and the backlash against China’s own growing power.

In Ontario, electricity bills are reason to weep – by Konrad Yakauski (Globe and Mail – September 12, 2013)

September 12, 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.

If you live in Ontario, deciphering your electricity bill is like trying to crack the encryption on a BlackBerry. It might tax even the professional snoopers at the U.S. National Security Agency.

It’s not as simple as multiplying the amount of power you use each month by the market price per kilowatt-hour. Beyond your “electricity” charge, there’s a “delivery” charge, a “regulatory” charge, a “debt retirement” charge and an Orwellian-sounding “clean energy benefit.”

And there’s a twisted political saga behind each one of them. If you manage to unbundle it all, you’ll discover that the market value of the power you consume accounts for only a tiny portion of your bill. Most of the rest of what you fork out goes to pay for decades of bungled energy policy-making. And pay you will, for years to come.

Indeed, the most important charge is the one that doesn’t directly appear on most people’s monthly statements. It’s called the “global adjustment” fee and it’s tacked on to your electricity charge to cover the government’s cost of buying above-market-priced wind, solar, nuclear and gas-fired power from private operators.

Zimbabwe to develop economy with “new friends” like China – by MacDonald Dzirutwe (Reuters India – September 11, 2013)

September 12, 2013

http://in.reuters.com/

HARARE, Sept 11 (Reuters) – Zimbabwe will increase economic ties with friendly countries like China to develop its economy as Western nations maintain their sanctions after President Robert Mugabe’s re-election, the new finance minister said on Wednesday.

Mugabe, Africa’s oldest leader at 89 who won a fresh five-year term in a July 31 vote his opponents say was rigged, on Wednesday swore in his cabinet, including Finance Minister Patrick Chinamasa who was named on Tuesday.

Pointing to multiple flaws in last month’s election cited by domestic vote observers, Western governments, especially the United States, have questioned the credibility of the outcome and are considering whether to prolong sanctions against Mugabe.

However, African election observers broadly endorsed the voting and its result as peaceful and free.

Chinamasa told reporters the ZANU-PF party government had accepted the reality that the West would not remove financial and travel sanctions on Mugabe and his senior allies and would not release any direct financial assistance.

Gabriel threatens Romania with billion-dollar lawsuit – by Eric Reguly (Globe and Mail – September 12, 2013)

September 12, 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.

ROME — Canada’s Gabriel Resources Ltd. is issuing a stern ultimatum to the Romanian government: Approve the Rosia Montana gold mine or face a lawsuit for billions of dollars.

The strategy marks a stunning reversal for the Toronto Stock Exchange-listed company, which until recently had expected the government would approve a draft law that would allow the $1-billion (U.S.) mining development in Romania’s Transylvania to go ahead.

Then, on Monday, Romanian Prime Minister Victor Ponta said parliament would likely reject the draft law, a move that would kill Europe’s largest gold project. Gabriel shares went into freefall. The same day, Gabriel said it would “assess all possible actions open to it, including the formal notification of its intentions to commence litigation for multiple breaches of international investment treaties.”

On Wednesday, Gabriel chief executive officer Jonathan Henry vowed that the legal action would go ahead if the government does kill the mining project, and attached a big number to it.

Ex-Massey official gets 3.5 years in prison in mine safety conspiracy – by Dorothy Kosich (Mineweb.com – September 12, 2013)

September 12, 2013

http://www.mineweb.com/

The 2010 Upper Big Branch Mine Disaster that killed 29 miners in West Virginia has resulted in prison sentences and jail time for 4 former Massey executives and supervisors so far.

RENO (MINEWEB) – The former president of Massey Energy’s White Buck Coal and the Green Valley Resource Group, David Hughart, 53, has become the highest-ranking coal official to date to be sentenced to prison for violating U.S. mine health and safety standards.

In addition to a 42-month prison sentence, Hughart was also ordered to serve an additional three years of supervised release, according to U.S. Attorney Beth Goodwin.

Although Hughart never worked at the Upper Big Branch Mine in West Virginia–where 29 men were killed in April 2010 in the largest coal disaster in 40 years–he admitted that he and others at Massey conspired to violate health and safety laws and to conceal those violations by warning mine operations when MSHA inspectors were arriving to conduct mine inspections.

His cooperation with the criminal investigation of the mine disaster revealed that Massey Energy schemed to avoid compliance with what federal regulators said was even basic safety practices. The investigation was conducted by the FBI, the U.S. Department of Labor Office of Inspector General, and the IRS-Criminal Investigation division.

Protests, cyanide concerns may halt Canadian-Romania gold mine project – by Nick Logan (Global News – September 10, 2013)

September 12, 2013

http://globalnews.ca/

VANCOUVER – Anti-mining protesters appear to have won their battle against the Romanian government and a Canadian firm planning to build Europe’s largest open-cast gold mine.

At least for now.

After more than a week of rallies in the capital city of Bucharest and the country’s second-largest city of Cluj Napoca, Romanian Prime Minister Victor Ponta said Monday the project likely won’t get approval.

A majority of Romanian parliament members weren’t in favour of the mine proposal for the northwest mountain community of Rosia Montana, and Ponta asked parliamentarians to vote quickly on draft legislation that would have moved the proposal forward.

“There’s no point in wasting time, I want to make sure that the Senate and the Chamber of Deputies vote on the rejection and then this project is closed,” Ponta said, according to Bloomberg News on Monday. “I don’t want the government to be responsible for contracts undertaken by previous cabinets.”

Cliffs Natural Resources rebuffed – by Carol Mulligan (Sudbury Star – September 12, 2013)

September 12, 2013

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

Developing the mineral-rich Ring of Fire area of Northwestern Ontario could be pushed back years if Cliffs Natural Resources appeals a ruling by the Ontario Mining and Lands Commissioner, a mining rival suggested Wednesday.

The commissioner has dismissed an application by a subsidiary of Cliffs for an easement over mining claims staked in the Ring of Fire by Canada Chrome Corp., a subsidiary of rival KWG Resources Ltd.

Through 2274659 Ontario Inc., Cliffs applied for the easement to build an all-weather road to transport ore from its Black Thor deposit in the Ring of Fire, about 540 kilometres Northeast of Thunder Bay, to Nakina.

From there, it would be shipped by rail to a ferrochrome processing plant to be built in Capreol. Cliffs has 30 days to decide if it will appeal the ruling, which KWG’s Moe Lavigne heralded as “vindication” of his company’s interpretation of the Ontario Mining Act.

If Cliffs doesn’t appeal the decision, it must pay KWG’s costs to fight the application at the tribunal, which sat for seve ra l days in February, expenses estimated by Lavigne at $1 million.

Matawa First Nations chiefs drop Ring of Fire legal challenge – CBC News Thunder Bay (September 11, 2013)

September 12, 2013

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

Most Matawa communities hope negotiations assisted by Bob Rae will also address their concerns about environmental assessment

The Matawa First Nations chiefs have withdrawn a legal challenge to the federal environmental assessment of the Cliffs chromite project in the Ring of Fire. The case was set to be heard by Federal Court later this month.

In a news release Wednesday, the Matawa Tribal Council said that when it started the court case in late 2011, there was no negotiation table, and it was pushed into a corner.

“There’s a forum for discussions with Ontario now and it’s going to look at the environmental assessment question, as well as other issues,” Aroland Chief Sonny Gagnon said.

Talks with Ontario began recently with Bob Rae representing the First Nations, and Frank Iacobucci negotiating for the government. Matawa said it expects that mining companies and the federal government will also be involved.

Cliffs’ application for an easement over Canada Chrome claims dismissed – by Henry Lazenby (MiningWeekly.com – September 12, 2013)

September 12, 2013

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

TORONTO (miningweekly.com) – The Ontario Mining and Lands Commissioner on Wednesday dismissed an application by a subsidiary of US iron-ore miner Cliffs Natural Resources seeking an easement over mining claims that TSX-V-listed junior KWG Resources had staked from Exton, in the Ring of Fire, in Northern Ontario, on which it proposes to build a railway.

In August 2012, Canada Chrome said it was pushing ahead with its proposed 300 km railway and had applied to Ontario’s Ministry of Natural Resources for 32 aggregate permits on sites located along a string of claims that could form the bed of its proposed railway. The claims on the northern half cover the only ridge of high ground where road and rail is constructible.

However, Cliffs brought an application seeking that the Minister of Natural Resources grant an easement under the Public Lands Act over Canada Chrome’s mining claims.

The easement was sought to build a road for the development of the Black Thor deposit, while Canada Chrome wants to build a railroad to develop its interests in the Ring of Fire, including the Big Daddy and Black Horse deposits.

Ring of Fire road rejection a setback for Cliffs Natural Resources – by Peter Koven (National Post – September 12, 2013)

September 12, 2013

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

TORONTO – The proposed development of Ontario’s “Ring of Fire” is facing greater uncertainty, as the province’s Mining and Lands Commissioner has made a key ruling against the company expected to build the region’s first mine and much of its infrastructure.

“This puts the project in jeopardy,” said Patricia Persico, director of communications for Cliffs Natural Resources Inc.

Cliffs wants to build a road to the Ring of Fire, located in the James Bay Lowlands, that could be used to transport ore. This is controversial, because the proposed road would cross over mining claims owned by KWG Resources Inc., a tiny junior miner that staked the ground for a potential railroad.

Commissioner Linda Kamerman rejected Cliffs’ request for an “easement” that would allow the company to build a road crossing over KWG’s claims. In a lengthy decision, she said the request breaches KWG’s rights under Ontario’s Mining Act and that Cliffs did not demonstrate the road is in the public interest.

Cliffs claims the road would provide a useful link to First Nations communities, an idea that is also supported by Queen’s Park. But the commissioner wrote that there was no evidence of a “public component” to Cliffs’ application.