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Day: September 18, 2013

North America’s Forgotten Frontier: Canadian Arctic – by Diane Francis (The Huffington Post – September 18, 2013)

http://www.huffingtonpost.ca/business/

YELLOWKNIFE, NORTHWEST TERRITORIES — This charming lakeside town bustles as thousands of Japanese tourists come annually to view the spectacular Aurora Borealis lights and as workers in mining, construction and energy arrive to cash in on its boom.

I was invited to speak at the Prospects North 2013 conference sponsored by the NWT Chamber of Commerce and I also visited the Diavik Diamond mine, the biggest of three gigantic mines nearly 400 miles north of Yellowknife. These mines, and another to open soon, are why the Northwest Territories has become the third biggest diamond producer in the world.

The conference was organized by executive director Mike Bradshaw and well-attended by policy, political and business leaders. My message was simply that the territories needed a new metaphor. They are not isolated and helpless political jurisdictions. They must think of themselves as the world’s biggest mining and resource play.

The three — NWT, Yukon and Nunavut — are bigger than Australia and have only seven operating mines now. Another 20 mines are in advanced stages of pre-development approvals and hundreds more undiscovered ore bodies exist in the frozen north. Such mature projects and exploration must be their top priority — as the world’s biggest mining play — and will usher in an unprecedented amount of prosperity and the building of essential infrastructure.

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Vale’s Manitoba Operations has reached 95 per cent of cost savings goal, Lovro Paulic says – by John Barker (Thompson Citizen – September 18, 2013)

The Thompson Citizen, which was established in June 1960, covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000. editor@thompsoncitizen.net

But smelter and refinery “base case” is still to close sometime in 2015

Vale, which is trying to find $100 million in cost savings at its Manitoba Operations in Thompson, has achieved 95 per cent of that goal over the last year – a cost savings of $95 million with $5 million still to go, vice-president Lovro Paulic told the Thompson Chamber of Commerce Sept. 11.

Paulic said $60 million was saved last year and $35 million has been saved so far this year. Ninety per cent of the money was saved between September 2012 and last April, while anther five per cent has been saved since then. That leaves another five per cent to go to reach the $100 million target.

The result of the collective cost-savings effort across the operation was a reprieve for Birchtree Mine from being mothballed again for a second time. Birchtree Mine, which was discovered for its nickel deposit in 1963 and opened in 1968, was previously on care and maintenance for nearly 12 years from 1977 to 1989, although regardless if it is mothballed or not, the current life of mine plan anticipates closure at some point in the next 10 years in any event.

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Lundin Sees Growth in Rio’s Michigan Cast-Off: Corporate Canada – by Gerrit De Vynck (Bloomberg News – September 18, 2013)

http://www.businessweek.com/

Lundin Mining Corp., the best performer among Canadian base-metal companies, is betting that a cast-off from the world’s second-biggest miner will help double output.

Lundin agreed to buy the Eagle nickel and copper mine from Rio Tinto Group for $315 million in June and plans to bring it into production by the end of next year, Chief Executive Officer Paul Conibear said. Eagle is the company’s first new mine after emerging from two aborted takeovers in 2011. Conibear said he wants to boost companywide annual output to about 500,000 metric tons within five years.

“We’re back to basics to re-grow our company,” he said Sept. 13 in a telephone interview. “We’re looking at trying to increase our cash flow through producing facilities.”

Lundin plans to expand while mining companies including Rio and BHP Billiton Ltd. (BHP), the world’s largest, sell assets and reduce spending amid lower prices. Copper has slumped 11 percent this year, nickel dropped 19 percent and zinc is down 11 percent on the London Metal Exchange after growth slowed in China, the world’s largest consumer of metals.

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COLUMN-China’s pollution steps need bite, will cost money – by Clyde Russell (Reuters U.S. – September 18, 2013)

http://www.reuters.com/

Clyde Russell is a Reuters market analyst. The views expressed are his own.

LAUNCESTON, Australia, Sept 18 (Reuters) – China’s new plans to cut coal use and tackle pollution have a sense of deja vu about them, being the latest in a series of measures aimed at improving air quality in the world’s second-largest economy.

But the key question, as always with environmental moves in China, is will they be enforced this time or whether once again regulation will be soft and easily side-stepped by provincial and local governments, or polluting companies.

On the face of it, the measures announced last week on the government’s website seem sensible and achievable, with the key aim to reduce consumption of fossil fuels, which in China is mainly coal, to below 65 percent of total primary energy use by 2017.

This is a relatively modest decline from the 66.8 percent share fossil fuels held in 2012, but once again the devil will be in the detail.

The announced plans include cutting coal consumption, mainly by closing polluting steel mills, factories and smelters, with a target being Hebei province, the largest steel-producing region.

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New business venture aims to transform global ferrochrome business – by Brendan Ryan (Business Day – September 18, 2013)

http://www.bdlive.co.za/ (South Africa)

DUBAI-based Russian businessman Alibek Issaev has teamed up with South African businessman Abbas Moti to develop a low- and medium-carbon ferrochrome smelter near Rustenburg that they claim will transform the ferrochrome business.

Mr Issaev is taking a 50% stake in private South African company FerroChrome Furnaces (FCF), which is controlled by the Moti family for an undisclosed amount.

The plant is at the commissioning stage and the aim is to boost production of low- and medium-carbon ferrochrome to 420,000 tonnes a year over the next 24 months, targeting a business that is dominated by ferrochrome producers located in Kazakhstan and Russia, in particular Eurasian Natural Resources Corporation.

Also involved in the deal is former Sentula Coal chairman Sir Sam Jonah. According to FCF spokesman Ashruf Kaka, Sir Sam is the nonexecutive chairman of FCF but has no business stake in the transaction and is only involved because of his long-standing friendship with the Moti family.

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Juniors cull approaches as alternative gold narrative takes effect – by Simon Rees (MiningWeekly.com – September 17, 2013)

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

TORONTO (miningweekly.com) – Head of Kaiser Research Online, John Kaiser, delivered his keynote speech at the Toronto Resource Investment Conference on September 13, telling delegates the gold narrative is changing and that hundreds of juniors were about to be culled.

Kaiser started by considering the resource supercycle’s effect on the metals markets over the past ten years, noting the current retrenchment as China and other Asian economies witnessed a fall back in growth.

The economic performance of the US and Europe would become the driving force for the next few years, he said. “But we’re not going to see demand ratchet up because these economies aren’t going to grow at huge rates. There’s also lot of new supply for metal coming on stream over the next few years.”

Kaiser predicted it will take four or five years before demand starts outstripping supply at a noteworthy rate. “This means we’ll have to live with sideways metal prices that won’t go up in a big way except under extreme circumstances.”

Kaiser had analysed merger and acquisition (M&A) activity through the TSX-V over the previous decade. “There was $129-billion-worth of takeover bids that involved juniors,” he said.

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NEWS RELEASE: Plea Bargain in Vale Mine Deaths Betrays Workers, Families

http://www.usw.ca/

17 SEPTEMBER 2013 – SUDBURY – A plea bargain dropping the majority of Occupational Health and Safety Act charges against mining giant Vale in the deaths of two miners is another betrayal of Ontario workers and their families, the United Steelworkers (USW) says.

“Today’s decision highlights our government’s failure to take comprehensive, meaningful action to better protect workers and to ensure justice for families whose loved ones are needlessly injured or killed on the job,” said Rick Bertrand, President of USW Local 6500, representing 2,600 mining workers in Sudbury.

“Damning evidence was uncovered that showed the deaths of Jason Chenier and Jordan Fram, like so many other injuries and fatalities in Ontario mines, were preventable,” Bertrand said.

“Yet our government has refused to pursue the possibility of a criminal prosecution and rejected a public inquiry into mining safety. We’re left with a plea-bargain deal in which our government drops most of the health and safety charges in exchange for a fine against one of the largest corporations in the world.”

The plea-bargain agreement, negotiated between the Ministry of Labour and Vale, was accepted in the Ontario Court of Justice today.

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‘Price of Gold’: Mining in Mongolia [Documentary] – by Cynthia Fuchs (Pop Matters.com – September 17, 2013)

http://www.popmatters.com/

I Think It’s Like a Human Life

“Everything is difficult.” As she speaks, Aagi bends over a cook fire, preparing supper for a crew of gold prospectors. “I’m the only woman and have to cook for many men,” she goes on, “This is a tough situation, I think. I’ve never cooked so much.”

Cooking isn’t the only difficulty Aagi faces. As revealed in the film Price of Gold, the current excursion employing her doesn’t have a schedule or even a specific goal so much as it has hope. Or, as the gold digger Khuyagaa puts it, the workers have dreams, dreams that come with a price. ““They say dreams cost nothing,” he says in voiceover as you look out on what seems the endless Gobi Desert in Mongolia “But today, you have to pay for your dreams. I think first you have to find the money, to make our dreams come true.” The frame cut to a close shot of Khuyagaa as he draws on his cigarette, backed by a pile of dirt and rocks, the result of his labor, the earth turned inside out.

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Ottawa to step up support for mining – by Steven Chase (Globe and Mail – September 18, 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 — The Canadian government is readying a campaign to promote this country’s mining sector abroad, an effort that will draw on Ottawa’s power and global network of diplomatic missions to help companies expand their exploration and extraction activity around the world.

It’s the latest step in the Harper Conservatives’ efforts to redirect foreign affairs, international development and trade spending so it’s more targeted to core economic interests. In recent years, Ottawa has jointly funded development projects in Africa and South America with large mining corporations.

International Trade Minister Ed Fast will launch cross-country consultations Wednesday to get feedback as he draws up an agenda on what support it should offer to Canadian mining firms. The effort is billed as helping the extractive sector, which also includes oil and gas companies, but is almost wholly focused on mining.

The timing is no coincidence. The Harper government, which is warming up its campaign machine for an expected 2015 election, is looking for ways to contrast itself with opposition party leaders Justin Trudeau and Thomas Mulcair.

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Oliver targets U.S. coal dependence as oil sands controversy builds – by Shawn McCarthy (Globe and Mail – September 18, 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 — Natural Resources Minister Joe Oliver has moved from defence to offence, deflecting environmental criticism of Canada’s oil sands by turning the spotlight on the U.S.’s emission-intensive coal-fired power sector.

In a Tuesday speech to a high-profile energy conference in New York City, Mr. Oliver sought to minimize the environmental impact of the proposed Keystone XL pipeline and said burning coal to generate electricity represents the world’s biggest climate threat.

The Conservative government faces intense criticism over the Keystone project from U.S. environmentalists, including actor Robert Redford, who released a video this week in which he claimed the pipeline would spur production of the “world’s dirtiest oil” in Alberta.

At the same time, U.S. President Barack Obama is due to release this week long-anticipated draft regulations for the U.S. power sector that critics are decrying as a “war on coal.” The administration is bracing for a political fight in traditionally Democratic coal states such as Pennsylvania, West Virginia and Ohio. The U.S. relies on coal for 41 per cent of its electricity, although that share has been decreasing with the advent of cheap shale gas.

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Concerns of Northern [Ontario] cities outlined to province – by Benjamin Aubé (Timmins Daily Press – September 18, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Like the black flies of spring or the relentless nights of winter, leaders in Northern Ontario are making it clear to the government they’re not going anywhere soon.

Timmins Mayor Tom Laughren was among the five Northern Ontario Large Urban Mayors (NOLUM) who met with eight provincial Liberal ministers at the Association of Municipalities of Ontario meeting in late-August.

At that meeting, the five NOLUM leaders – representing Timmins, Sudbury, North Bay, Sault Ste. Marie and Thunder Bay – presented a document titled Linking Municipalities and the Growth Plan for Northern Ontario.

Laughren hailed it as “historic” in its depth, explaining it outlines six distinct focal points Northern Ontario representatives will be pressuring the government on over the coming years.

“Anything we put in here was related to the Growth Plan, and it’s our ideas to how the government can push the Growth Plan forward that we believe that provide a benefit not only to those five communities, but of all Northern Ontario,” said Laughren at Monday’s city council meeting.

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Goldcorp chairman Ian Telfer eyes OSC settlement – by Barbara Shecter (National Post – September 18, 2013)

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

One of Canada’s best-known mining executives, Goldcorp Inc. chairman Ian Telfer, is seeking to settle allegations brought against him by the Ontario Securities Commission. Mr. Telfer was not accused of insider tipping or trading. Instead, the OSC alleged that he acted “contrary to the public interest” by helping an old friend, the executive assistant to the chairman of GMP Securities LP, disguise her scheme.

The case against Eda Marie Agueci and eight others is scheduled to begin at the OSC’s headquarters in Toronto on Sept. 30. Ms. Agueci is described by the OSC in a statement of allegations last year as the “central figure” in the scheme.

None of the allegations have been proven. In a brief statement Tuesday, Canada’s biggest capital markets regulator said it has set aside time on Friday morning “to consider whether it is in the public interest to approve a settlement agreement entered into by Staff of the Commission and Ian Telfer.”

In the statement of allegations last year, the OSC alleged that Mr. Telfer advised Ms. Agueci to communicate using her BlackBerry’s PIN-based messaging service to keep her activities secret from GMP.

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Once an economic mainstay, Alberta’s natural gas now struggling to find markets – by Claudia Cattaneo (National Post – September 18, 2013)

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

Barely a dozen years ago, Alberta was producing so much natural gas the resource was the mainstay of the provincial economy and a big reason Canada was the second-largest natural gas exporter on the planet.

Today, Alberta gas is dirt cheap and is struggling to find a home, pushed to the sidelines by shale gas discoveries in the United States and competition from British Columbia. Even emerging opportunities to export gas in liquid form from the West Coast could elude Alberta gas for years, as projects first draw from gas resources in British Columbia’s immense shale plays.

“There are no easy answers for the Alberta gas producers,” Peter Howard, president and CEO of the Calgary-based Canadian Energy Research Institute, said in an interview. “The next several years are going to be challenging.”

While the oil sands, heavy oil and shale oil have moved to the forefront of Alberta’s resource economy, the question of what to do with Alberta’s estimated 3,400 trillion cubic feet of natural gas resource has prompted provincial politicians to look for new uses, such as increasing demand in the province and promoting access to LNG terminals on the West Coast.

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Specialize or risk losing funding, Ontario tells universities and colleges – by James Bradshaw (Globe and Mail – September 18, 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.

Ontario’s government has taken its boldest step yet to compel universities and colleges to make hard choices about how they spend their resources, circulating a draft policy designed to stretch limited provincial dollars by narrowing some schools’ missions.

The draft framework for greater “differentiation” between schools was sent to higher-education leaders for feedback on Tuesday, marked “Confidential” but obtained by The Globe and Mail. After spending a decade investing in massive enrolment growth, the government is trying to climb out of a record deficit, and the paper argues that, without change, “Over time the sustainability of postsecondary education may be at risk.”

The paper sets the province and its schools on course for tricky negotiations, which could kick off before 2013 ends and drive some difficult shifts in priorities. Universities are ultimately free to set their own course, but where the province disagrees with a school’s direction, it can steer behaviour with levers such as funding, allocating extra student spaces and approvals for new programs.

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Familes of Sudbury miners speak of loss – by Jonathan Migneault (Sudbury Star – September 18, 2013)

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

After his younger brother Jordan Fram was killed in a was killed in a run of muck in the Stobie Mine in 2011, Jesse Fram continued to call his phone for months, just so he could hear Jordan’s voice when he was prompted to leave a message.

Fram was amongst several family members who gave emotional victim impact statements in a Greater Sudbury courtroom Tuesday.

Jordan’s employer, Vale Canada Limited, pleaded guilty to three charges under the Ontario Occupational Health and Safety Act in relation to the events that lead to his death.

The last time Wendy Fram spoke to her youngest son, she told him to be safe before he left for work. That night, on June 8, 2011, Jordan Fram, 26, and Jason Chenier, 35, were crushed by 350 tons of muck at the 3,000-foot level of the Stobie Mine.

Vale was fined $350,000 for each of the three counts, which were related to a failure to take reasonable precautions to prevent water accumulation in the mine. That failure caused the run of muck that killed Fram and Chenier. The total fine of $1.050 million was the largest ever awarded in Ontario for a health and safety prosecution.

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