January 6, 2014 – Republic of Mining

Investment in resources being stymied by vocal minority – Gwyn Morgan (Globe and Mail – January 6, 2014)

January 6, 2014

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.

From the day the first Europeans set foot on Canadian soil, the country’s resources have been the core of its development.

First, fur traders endured danger and deprivation to explore the vast wilderness; they were followed by forestry workers who wrestled huge logs to tidewater.

Then came hardy settlers, who turned soil frozen for half the year into a breadbasket of the world, thus creating the driving force behind the most important project in Canadian history, the building of a national railway.

Steam locomotives require large amounts of coal, which spurred Canada’s first underground mines. In 1883, during the construction of the Canadian Pacific Railway, nickel-copper ore was discovered near Sudbury, launching a huge metals mining development. That same year, thousands of kilometres to the west, the railway helped launch Alberta’s petroleum industry when a well drilled to supply water for steam locomotives struck natural gas.

Walsh’s steely resolve for change of culture helps Rio Tinto turn around – by Andrew Burrell and Paul Garvey (The Australian – January 4, 2014)

January 6, 2014

http://www.theaustralian.com.au/business

SOON after arriving in London a year ago to begin his reign as chief executive of Rio Tinto, Sam Walsh took a stroll from his Kensington home to check out an antiques fair at nearby Sloane Square.

The avid collector of milk jugs — he has more than 350 of the cherished antiques stashed away in his other house in Perth — was in his element as he prepared to browse the collectables. “I walked up to the very first stand and picked up a Royal Worcester milk jug,” recalls Walsh. “And the lady looked at me and said, ‘Australian accent, interested in milk jugs, we know who you are — we’ve been expecting you!’ ”

Walsh roars with laughter when telling the story, partly because he cheerfully revels in the fact his passion for delicate milk jugs breaks all the stereotypes of the knockabout mining industry. But he knows too that it’s much harder to be anonymous — even at an antiques fair — when you’re running one of the biggest companies in one of the world’s financial capitals.

It’s even harder, it may be suggested, when you’re trying to lead the turnaround of a company that had spectacularly lost its way under predecessor Tom Albanese, culminating in more than $US14 billion in writedowns as a result of the failed 2007 acquisition of Canadian aluminium producer Alcan and the disastrous takeover of African coal play Riversdale Mining in 2011.

[Ontario] Mines minister confident Ring talks making headway – by Carol Mulligan (Sudbury Star – January 6, 2014)

January 6, 2014

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

Michael Gravelle wasn’t sharing insider information about how talks are progressing between the government of Ontario and First Nations closest to the Ring of Fire.

But he telegraphed some heavy hints in an end-of-year conversation about the development of the rich chromite deposits located 500 kilometres northeast of Thunder Bay.

Consultations being led by retired supreme court justice Frank Iacobucci for the province and former Ontario New Democrat premier and federal Liberal leader Bob Rae representing the Matawa Tribal Council are vital part to moving the Ring of Fire forward, said Gravelle.

They are progressing well, the minister of Northern Development and Mines said several times during a telephone interview with The Sudbury Star.

And while didn’t want to “presume the end of the discussions” between the first nations and the province, Gravelle said he hopes his government will be in a position “very soon” to announce a framework agreement between the two parties.

[Vale, Glencore Sudbury] Merger wouldn’t result in plant closures, mine analysts say – by Harold Carmichael (Sudbury Star – January 6, 2014)

January 6, 2014

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

If ongoing Vale and Glencore Xstrata discussions produce an agreement in 2014 on how to mine nickel and copper in the Greater Sudbury area more cost-effectively, there might be some short-term job cuts, but no big plant closures, says a man who runs a website devoted to mining.

“Absolutely not,” said former Greater Sudbury resident Stan Sudol, who now works in Toronto and operates The Republic of Mining website. “The two operations – the Clarabelle Mill and the Strathcona Mill – process different types of ore. On the north slope (of the Sudbury Basin), the ore is heavy in copper and PGMs (platinum-group metals). The Clarabelle Mill, meanwhile, deals with ore from the south side which is more nickel heavy. I would be very surprised if either of the mills gets closed.”

Sudol added that the Falconbridge Smelter, which he understands is operating under capacity, is processing ore from Australia and the Raglan project in Quebec, in addition to local ore. “The operation is a part of a global industry,” he noted.

On. Dec. 18, Reuters reported Vale’s chief executive officer Murilo Ferreira said he expects Vale’s “consortium” with Glencore Xsrata in Greater Sudbury nickel projects to be defined by the first quarter of 2014 and for the venture to operate as a single unit.

NEWS RELEASE: KWG & Bold to Resume Drilling at Black Horse

January 6, 2014

TORONTO, ONTARIO–(Marketwired – Jan. 6, 2014) – Bold Ventures Inc. (TSX VENTURE:BOL) (“Bold”) and KWG Resources Inc. (TSX VENTURE:KWG) (“KWG”) are pleased to report that KWG is funding a further $2 million program under its agreement to earn from Bold an 80% interest in any chromite discovered within the claims optioned by Bold from Fancamp Exploration Ltd. hosting the Black Horse chromite occurrence. KWG may also earn a 20% interest in any other metals discovered on the property (please see the details of the option earn in agreements as described in Bold’s press release dated March 4, 2013 or on the Bold website (www.boldventuresinc.com) or at the KWG website (www.kwgresources.com)).

As recommended in the 43-101 report commissioned by KWG and prepared to document the inferred chromite resource following last winter’s drilling program, the possible down-dip extension of the resource will be tested with a series of deep holes. Orbit Garant Drilling Services Inc. has been awarded the drilling contract to utilize up to three drills. Mobilization is underway and drilling is anticipated to commence shortly.

Metallurgical test work which is ongoing has produced encouraging results to indicate that the Black Horse chromite appears to be amenable to reduction into metalized chrome and iron using natural gas. These results dictated that a number of transportation and underground mining trade-off studies be undertaken and those are currently underway.

Advocates want Canada to protect even more of its boreal forest – by Bob Weber (Canadian Press/Waterloo Record – January 6, 2014)

January 6, 2014

http://www.therecord.com/waterlooregion/

Canada has made significant strides in protecting the vast boreal forest that stretches across most of its provinces and territories, but the world’s largest intact forest ecosystem still faces threats, says an environmental group.

The amount of boreal forest under some form of government protection has doubled since 2007 to about 12 per cent of the total area, biologist Jeff Wells of the Canadian Boreal Initiative said recently. “That’s a big rate of increase in a short time and we’re hoping that’s going to continue,” he said.

The boreal forest is the huge swath of green that stretches from Newfoundland to the Yukon. It’s home to millions of migratory birds, harbours endangered wildlife such as caribou and shelters hundreds of wetlands that clean water and store carbon.

A total of 708,000 square kilometres is now protected by government. Another 460,000 square kilometres are being harvested through sustainable practices such as those outlined by the Forest Stewardship Council, an organization that promotes responsible management of the world’s forests by setting standards, and certifying and labelling wood products.

‘Confiscate wealth of mining mafia’ (The Times of India – January 6, 2014)

January 6, 2014

http://timesofindia.indiatimes.com/international-home

BHUBANESWAR: Reiterating his demand for a CBI probe into the multi-thousand crore mining scam, senior Congress leader Niranjan Patnaik on Sunday said the inquiry must go beyond the Justice M B Shah Commission report and sought an ordinance to confiscate wealth of the mining mafia.

The former state Congress president, in a press statement, said CBI investigation must go beyond leaseholders.

“The leaseholders are known legal entities and irregularities committed by them can be computed and accountability fixed, as has been rightly done by the Shah Commission,” he said. The Shah panel has recommended recovery of around Rs 60,000 crore from miners for illegalities committed by them.

On mining outside leasehold areas and abandoned mines, Niranjan said, “All entities involved in such illegal mining, as juxtaposed to irregular mining by known legal leaseholders, are remaining nameless and faceless. They have neither paid any royalty nor any income tax and there is no way they can be held accountable.”

Greenland explores Arctic mineral riches amid fears for pristine region – by Terry Macalister (The Guardian – January 5, 2014)

January 6, 2014

http://www.theguardian.com/uk

London Mining’s £1.5bn iron ore mine and new oil drilling licences for BP and Shell spark concern for environment

London Mining, a British mineral company, is trying to attract Chinese and other international investors to build a £1.5bn iron ore mine just outside the Arctic Circle in Greenland.

The move comes as BP and Shell join others exploring for oil and gas in the pristine waters off Greenland, as concerns grow that the wave of industrialisation in the region will damage the pristine environment.

Greenland and the wider Arctic is seen as one of the new frontiers for exploiting mineral wealth, but uncertain national boundaries have also opened up potential political, if not military, conflicts.

London Mining, whose board includes a former British foreign minister in Sir Nicholas Bonsor, has already opened talks with Chinese mining group Sichuan Xinye and others about helping finance a new mine at Isua.

Economic shift away from China to the West will dictate commodity prices in 2014 – by Andrew Critchlow (The Telegraph – January 5, 2014)

January 6, 2014

http://www.telegraph.co.uk/

The global economic narrative is changing rapidly, with the emphasis moving from Asia and the fast-growing markets in the East, back to the developed West Commodities investors are shifting their strategic focus away from China for 2014 as they search out clues as to the direction of prices.

The global economic narrative is changing rapidly, with the emphasis moving from Asia and the fast-growing markets in the East, which have driven the commodities “super-cycle” over the past decade, back to the developed West.

Understanding how this shift will affect commodity markets is the main challenge facing investors in the months ahead.
“The decade from 2002 onwards was largely characterised by a shift from developed countries to emerging markets and a super-cycle in commodity prices,” said Teis Knuthsen, chief investment officer at Saxo Private Bank.

“These rotations are starting to roll back, helping to improve the outlook for the US economy in particular.”

National Archives: Margaret Thatcher was days from calling out troops during miners’ strike, documents show – by Sam Marsden (The Telegraph – January 3, 2014)

January 6, 2014

http://www.telegraph.co.uk/

Ministers considered ordering an emergency recall of Parliament to pass a new law giving extra powers for soldiers to replace striking workers, papers from 1984 made public by the National Archives disclose

Margaret Thatcher came within days of declaring a state of emergency and calling out the military just four months into the miners’ strike, Cabinet papers released on Friday show.

Ministers secretly discussed recalling Parliament in the summer of 1984 so they could urgently pass a new Emergency Powers Act that would give wider scope for troops to stand in for striking dockers.

At the same time Norman Tebbit, the trade and industry secretary, privately warned the prime minister that diminishing coal stocks meant that the Government could soon be forced into making humiliating concessions to Arthur Scargill to end his union’s industrial action.

S. Korea’s Former Miners Dig Up Nation-Building Past – by Agence France-Presse/Jakarta Globe (January 3, 2014)

January 6, 2014

http://www.thejakartaglobe.com/

Fifty years ago, several hundred South Koreans went to work in German mines in the first wave of a flood of Korean migrants whose remittances helped jumpstart one of the great economic transformations of the modern age.

The experience was often lonely, and for some their contribution was tainted on their return by the social stigma attached to a job that was tough, filthy and dangerous in a society that looked down on manual labour.

As a result, they feel their role in South Korean history has been largely overlooked, despite helping to seed South Korea’s economic growth and rapid industrialisation by sending funds home.

Mostly in their 20s, the miners — the first South Koreans to work overseas since the peninsula split into the capitalist South and a communist North in 1945 — were part of Seoul’s strategy to solve a high jobless rate and earn hard foreign currency. Bae Jung-Hwan left his homeland in 1970 to work at a German mine before returning a few years later. He says he only recently told his wife and children about his past.

Chilean miracle miners back in spotlight (AFP/Sydney Morning Herald – January 2, 2014)

January 6, 2014

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

At the bottom of a dank salt mine in Colombia, a 200-strong film crew featuring Spanish actor Antonio Banderas is reconstructing the incredible tale of 33 miners buried alive for 69 days in Chile in 2010. Actors from multiple countries work in suffocating heat on The 33, which traces the unlikely survival of the men trapped deep underground after a collapse at the San Jose copper mine in the Atacama desert.

“It’s not just about the physical ordeal these 33 men went through – it’s about the emotional one, of wondering if they would live or die, or if they would go crazy waiting to find out,” Gregg Brilliant, a spokesman for the American film production, told AFP.

To depict the incredible story that unfolded more than 600m underground, the production team chose to film at two sites outside the Colombian capital Bogota. Behind a security cordon, curious onlookers try to catch a glimpse of a star, but their Hollywood hopes are repeatedly dashed.

In the salt mines of Nemocon, the humid and musty environment combine with the thin mountain air to recreate the oppressive atmosphere at San Jose, located 800km north of Chile’s capital Santiago.

MTO in midst of pan-northern transportation strategy – by Ian Ross (Northern Ontario Business – December 30, 2013)

January 6, 2014

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

A provincial plan to access the Ring of Fire may be lacking, but for almost three years the Ministry of Transportation (MTO) has been quietly working on a major pan-northern planning exercise to support future regional economic development.

Known as the Northern Ontario Multimodal Transportation Strategy, the multi-year study is directly tied into the Liberal government’s implementation of the Northern Growth Plan.

“It’s definitely a first for the MTO in Northern Ontario,” said Tija Dirks, the ministry’s director of transportation planning, of the comprehensive process which began in 2011.

“The scope of the issues that we’re looking at is much broader. We’re truly looking at the transportation system and not just the highway network.”

[McEwen] Mining’s golden boy – by Lisa Wright (Toronto Star – December 31, 2013)

January 6, 2014

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.

Ian Ball, 32, was just promoted to president of McEwen Mining Inc. in ageing world of mining.

When Ian Ball was 5, he earned an allowance moving rocks from the lawn of his Bowmanville, Ont., home back onto the gravel driveway for his parents.

It turned out to be quite a training ground. Lately, the 32 year old has been spotted driving a 100-tonne haul truck at the silver mine he discovered in Mexico, and the Bay St. hotshot makes a nice allowance for his work in this field, too.

But the road from junior rock picker to the top floor of Brookfield Place as the new president of McEwen Mining Inc. took a number of twists and turns — not the least of which is that he never planned on getting into the gritty gold mining game in the first place.

“I was a horrible student. I barely graduated high school,” Ball recalls candidly in an interview, impeccably dressed in a dark grey suit and golden yellow tie with his hair perfectly slicked back.

Oil industry’s 2014 resolution: to focus on aboriginal issues – by Jeffrey Jones (Globe and Mail – December 26, 2013)

January 6, 2014

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.

CALGARY — For the oil patch, 2014 has to be the year it finally gets its act together on aboriginal issues.

Industry leaders know they have to rethink their approach, and that the clock is ticking as they seek to get oil and gas through First Nations territories to export markets before opportunities vaporize. It stands to be their toughest task yet.

One problem is that the oil and pipeline companies are already behind in the trust-and-relationship-building departments after some misadventures that created bad blood, especially during the regulatory process for the Northern Gateway oil pipeline to the Pacific from Alberta.

For proof, take a peek at a recent survey by the University of Calgary’s School of Public Policy, which found that one-third of aboriginal Canadians have no trust whatsoever in oil and gas companies.