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Day: April 7, 2014

INTERVIEW-China’s economic problems not serious, miner Antofagasta says – by Alexandra Ulmer and Fabian Cambero (Reuters India – April 7, 2014)

http://in.reuters.com/

SANTIAGO, April 7 (Reuters) – China’s economic problems are minor and are unlikely to trigger a crisis in the world’s biggest metals consumer, the chief executive officer of Chilean miner Antofagasta Minerals Plc told Reuters on Monday.

Copper prices fell to 3-1/2-year lows in March after a bond default by a Chinese company aroused fears about credit problems in the country. Prices have since steadied, though investors remain wary of slowing growth rates in the Asian giant.

Mining industry veteran Diego Hernandez, who used to head Chilean state copper producer Codelco and base metals at BHP Billiton, brushed aside major fears about the health of the buyer of 40 percent of the world’s copper.

“We think the Chinese economy is fairly solid,” he said during an interview in his office in Chile, the world’s top producer of the red metal, as part of the CESCO/CRU copper conference. “It may have some problems, but they’re minor.”

Still, the copper market could tilt into a small surplus if new and expanded deposits come on line as promised, Hernandez said. Contributing to that would be the London-listed company’s own production, as first-quarter output was on target, Hernandez said.

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Grassroots mineral exploration is undergoing a massive decline – by Ed Thompson (Canadian Mining Journal – April 2014)

The Canadian Mining Journal, is Canada’s first mining publication.

E. G. Thompson has worked in the exploration industry for over 50 years and been associated with a number of successful mining companies.

With both the senior and junior mining/exploration companies facing a plethora of problems, grassroots exploration is undergoing a dramatic decline as the industry comes off its recent highs.

Most of the senior companies have had massive cost overruns on their projects due to a combination of inflation , permitting , environmental and social costs and delays and difficult engineering supervision in their attempts to develop large projects in remote areas of the world.

Virtually no major mining project performed to specification and the financial markets have downgraded these companies. Lower metal prices, especially for gold, and many governments raising taxes, have exacerbated the situation.

This negative publicity has not been lost on the investor who understandably says “If the majors can’t perform, why should I risk my money on juniors?” 

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Canadian private equity firm raises more than $1-billion for precious metals fund – by Peter Koven (National Post – April 7, 2014)

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

Canadian private equity player Waterton Global Resource Management LP has raised more than US$1-billion for a precious metals fund, a massive number which demonstrates that private equity interest in the mining space continues to rise.

Toronto-based Waterton announced Monday that it has received capital commitments of US$1.016-billion. It plans to use that money for acquisitions, joint ventures and partnerships in the precious metals sector. The fund will focus on North American assets that are either in production or close to it.

Over the last several months, there has been constant speculation that private equity money is set to pour into the mining space. That talk intensified last week when Mick Davis, the former chief executive of Xstrata PLC, said he raised up to US$3.75-billion for a new mining venture.

Waterton made headlines of its own this year when it launched a hostile $59-million bid for a junior miner called Chaparral Gold Corp. The company has struck more than two dozen deals since launching its first mining fund in 2009, and it now has the capital to pursue many more of them.

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NEWS RELEASE: Keep dates open for seventh annual mine reclamation conference

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

The Ontario Mining Association and the Canadian Land Reclamation Association are once again combining forces for the Ontario Mine Reclamation Symposium and Field Trip, which is being held June 17 and 18, 2014 in Peterborough. This will be the seventh annual conference dedicated to this industry environmental activity.

A one-day symposium will highlight the history and status of mining in Southern Ontario. Also on the agenda are updates on current research and rehabilitation practices and specific reclamation projects.

The field trip will take participants to mine and aggregate sites in the Peterborough and Bancroft areas. This area was home to some of the earliest mining sites in Ontario. As part of the program, there is also a reception and banquet.

The ceremony will include the presentation of the Tom Peters Mine Reclamation Awards. There are two components to this environmental award – for companies rehabilitating specific mine sites and a $5,000 scholarship for university students, who must deliver a presentation on their research topic.

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Opinion: Safety review draws crowd – by Carol Mulligan (Sudbury Star – April 7, 2014)

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

If the overflow crowd jammed into a small, hot room Thursday in the basement of the main branch of Greater Sudbury Public Library was an indication, Sudburians are heavily invested improving mine safety. But they haven’t finished having their say about how they believe that should be accomplished. Not by a long shot.

About 40 people attended the last of three consultations held in the city by the advisory group for the Ontario Mining Health, Safety and Prevention Review. It was a tight squeeze when you added six group members, chair George Gritziotis and four Ministry of Labour employees.

There was some question about whether the crowd was violating the fire code, which allows for a maximum 39 people in the meeting room.

Wednesday there was room to spare at two public consultations held in Georgian Room B at the Holiday Inn, which could have held 100 people easily. About two dozen attended the afternoon session and a dozen the 6 p.m. session.

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Northern Ontario’s Ring of Fire far from fading – by Saul Chernos (Daily Commercial News – April 7, 2014)

http://dcnonl.com/

It’s been a burning question in mining circles the last few years – when will northwestern Ontario’s Ring of Fire see production?

Time will tell if the 5,000-square-kilometre mineral hot-spot in the James Bay Lowlands holds the kind of promise that has a couple dozen mining companies prospecting for reportedly substantial reserves of chromite, copper, nickel, gold, platinum and zinc.

Despite nearly matching Prince Edward Island in size, the Ring of Fire is lacking the hydro, roads and rail lines mines would need if they’re ever to see the light of day.

The infrastructure deficit hasn’t deterred companies from staking claims, exploring, and negotiating with local First Nations. However, progress has teetered between setbacks and incremental advancements. Late last year, citing an uncertain timeline and infrastructure concerns, Cleveland, Ohio-based Cliffs Natural Resources put Ring of Fire activities on indefinite hold.

In a statement, Cliffs said it would close its Canadian offices but would continue working with the Government of Ontario, First Nations communities and other interested parties to explore potential solutions.

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PRESS RELEASE: Eramet Group: NEW CALEDONIA: AGREEMENT BETWEEN GROUPS ERAMET AND VALE AND SOUTH PROVINCE FOR THE STUDY OF MINING AND BENEFICIATION OF THE NICKEL DEPOSITS AT PRONY AND PERNOD

 Paris, April 7, 2014

NEW CALEDONIA: AGREEMENT BETWEEN GROUPS ERAMET AND VALE AND SOUTH PROVINCE FOR THE STUDY OF MINING AND BENEFICIATION OF THE NICKEL DEPOSITS AT PRONY AND PERNOD.

ERAMET, Vale Canada and New Caledonia’s South Province signed a framework agreement on April 5, 2014 in Nouméa providing for the exploration, study and beneficiation of the nickel deposits at Prony and Pernod in the south of New Caledonia.

This agreement is governed by the Mining Code, passed by the New Caledonian congress in 2009. Under this code, the deposits were classified as “Provincial Technical Reserves”* by South Province on February 12, 2012.

It follows on from the signature by the three entities of a declaration of intent on November 5, 2012 setting out the guidelines of a partnership for the development in New Caledonia of the mineral deposits at Prony and Pernod.

This agreement provides for the creation of a joint venture for the project, owned 34% by South Province, and 33% each by ERAMET and Vale Canada. The joint venture will first undertake the geological exploration works and technical studies required for improving knowledge on the deposits and the operation of the mine.

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NEWS RELEASE: PotashCorp Announces Selection of Jochen Tilk as Next President and CEO

Tilk to assume CEO role in July 2014; Doyle to continue as Senior Advisor until June 2015, allowing for planned and seamless transition

Listed: TSX, NYSE Symbol: POT

SASKATOON, April 6, 2014 /CNW/ – Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced that the Board of Directors has appointed Jochen Tilk as President and CEO, effective July 1, 2014.

After 27 years of dedicated service – during which PotashCorp grew to become the world’s largest crop nutrient company – Bill Doyle will step down as President and CEO, but remain employed with the company as a Senior Advisor through June 2015.

“We’re pleased to announce Jochen Tilk as the next President and CEO of PotashCorp. Jochen is known for his focus on operational excellence and disciplined growth, and the entire Board agreed he was the right person to lead the company forward,” said Dallas Howe, Chairman of the Board. “The Board undertook a rigorous, three-year selection process for the new CEO that included the use of international executive search firms and a review of both internal and external candidates.”

“Jochen’s successful track record, his reputation among peers and commitment to the industry made him the ideal candidate to serve our customers and lead PotashCorp through our next phase of growth,” said Bill Doyle.

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Greater tension could do systemic harm to Russian firms-Norilsk – by Silvia Antonioli (Reuters U.S. – April 4, 2014)

http://www.reuters.com/

LAUSANNE, Switzerland – (Reuters) – Any worsening of tension between Moscow and the West that leads to stiffer sanctions would do systemic damage to Russian companies by deterring investors and making borrowing more difficult, a Norilsk Nickel executive said.

Russia’s annexation of Ukraine’s Crimean peninsula has marked the biggest East-West crisis since the Cold War and prompted the United States and Europe to impose sanctions.

Norilsk Nickel, the world’s largest nickel and palladium miner, has not been hit by the political tension so far, but all Russian companies would suffer should the situation escalate, its deputy chief executive officer for government and investor relations said in an interview.

“The impact would be felt if the situation further aggravated and there would be some systemic implications for companies, like for example a decrease in the ratings…lack of interest from investors, an exodus of some of the investors from the shareholder base, tightening of the terms of financing,” Andrei Bougrov said.

“All this we do not see at the moment. But this is more of a systemic issue that may or may not evolve. One has to trust the politicians that they will be able to find a solution.”

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Throwing stones in a glass Dacha: The West’s metal vulnerabilities – by Christopher Ecclestone (Mineweb.com – April 4, 2014)

http://www.mineweb.com/

Christopher Ecclestone of Hallgarten & Company addresses supply issues the West faces with Russia as adversary.

LONDON – Some have accused the EU and U.S. of soft-pedaling on the Crimea/Ukraine issue. But might these economic powers think twice before stirring up too much of a ruckus? The EU is particularly vulnerable to Russia cutting off natural gas exports and the U.S. has to play nice with Russia to keep getting cheap uranium supplies.

According to the US Energy Administration, in 2011 the United States mined nine percent of the uranium consumed by its nuclear power plants. The remainder was imported, principally from Russia (50%), Canada, and Australia. As uranium bulls will ceaselessly inform you the supply situation is tight and if it wasn’t for those pesky Russians the price would be a lot higher.

We usually do not make common cause with the tin-foil-hatted but would beg to agree with the uranium bulls. It is a truism that the unwinding of the Soviet stockpiles have beggared the global uranium mining industry and that the great day will be when an end to this attrition is seen.

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Copper Titans Gather as Decade-High Glut Overshadows Earthquakes – by Matt Craze and Juan Pablo Spinetto (Bloomberg News – April 06, 2014)

http://www.businessweek.com/

The world’s strongest earthquake in a year and hundreds of aftershocks rattled the copper-rich Atacama Desert last week, forcing almost a million people to seek refuge from tsunamis. The copper market barely reacted.

The metal is down 0.6 percent in London since Anglo American Plc to Antofagasta Plc temporarily halted some operations after an 8.2-magnitude temblor struck on the evening of April 1. Investors’ indifference is explained by surging global output at a time of waning Chinese demand growth.

As tremors continue to shake northern mines, it will be the prospect of the biggest global glut since the so-called super-cycle began — and how miners are reacting by shelving expansions and shoring up balance sheets — that dominate discussion at the industry’s annual get-together in Santiago this week. Chile, the top producer, is opening three mines in a year, more than it has started in the past decade.

“Demand is not going to grow by the same margin, which is going to generate a significant surplus,” Alvaro Merino, head of research at Chilean mining society Sonami, said in an April 4 interview. “You are really going to see this increase in the second half of this year.”

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