Accent: Cobalt boom top event in Northern mining [Part 2 of 2] – by Stan Sudol (Sudbury Star – May 31, 2014)

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

Note: This is the second of a two-part feature on Ontario’s mining history. The first half of a top-10 list of significant events was printed in Friday edition of the Star; the countdown continues below.

For Part-one, click here: http://republicofmining.com/2014/05/30/accent-celebrating-northern-ontarios-mining-history-by-stan-sudol-sudbury-star-may-30-2014/

5) Peter Munk: Canada’s King of Gold

Amazingly, Peter Munk knew little about mining as he previously developed resorts in the South Pacific and owned a high-fidelity stereo system company that went bankrupt. In 1983, with a small oil exploration company that was losing money, he decided to buy a half interest in the Renabie gold mine near Wawa and a piece of an Alaskan placer miner which together produced 3,000 ounces that year.

In 1984, he bought Camflo Mines with operations in northwestern Quebec, but more importantly, acquired an experienced mine management team that would help Barrick takeover mines in Ontario, the United States and around the world. A significant success was the Nevada Goldstrike mine in 1988 when company President Robert Smith saw its huge potential.

Munk’s greatest success was the acquisition of Placer Dome in 2006 during the foreign takeovers of some of Canada’s legendary miners that included Inco, Falconbridge and Alcan.

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Campaign against tin mining in Bangka island targets Microsoft – by Sajid Shaikh (The Guardian – May 30, 2014)

http://www.theguardian.com/uk

Company singled out for direct action for ignoring tin mining’s enviromental impact on Indonesian island

A campaign against tin mining in Bangka and Belitung islands of Indonesia is targeting tech giant Microsoft. The islands, off the coast of Sumatra, are being stripped off their forests and marine wealth and dug up for tin, used widely in the electronics and IT industry by major brands making mobile phones, tablets, laptops, computers and other gadgets.

Friends of Earth Netherlands, an environmental group fighting for sustainable sourcing of tin, said they are targeting Microsoft for “refusing to take steps to end irresponsible mining practices on Bangka and Belitung islands.” Asus, HTC and Huawei are other brands named by the group using tin sourced unethically.

“Big brands such as Apple, Philips and LG openly support projects to produce tin in a better way. It is unacceptable that other brands still refuse to follow this lead and take responsibility. They have been made aware Bangka-Belitung islands are being destroyed and miners are dying every week. All brands use tin from Bangka-Belitung since a third of global tin production comes from these Indonesian islands,” said FoE campaigner Evert Hassink.

The group has launched an online petition against Microsoft. “We ask people to support our petition. In the Netherlands we will be collecting signatures on the streets and at festivals. We will take direct action against Microsoft,” Hassink said.

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Accent: Celebrating Northern Ontario’s mining history [Part 1 of 2] – by Stan Sudol (Sudbury Star – May 30, 2014)

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

Note: this is the first of two parts.

For part-two, click here: http://republicofmining.com/2014/05/31/accent-cobalt-boom-top-event-in-northern-mining-by-stan-sudol-sudbury-star-may-31-2014/

For crying out loud, I continue to be astonished with our collective Canadian obsession over the Klondike Gold Rush while Northern Ontario’s rich and vibrant mining history is completely ignored by the Toronto media establishment, especially the CBC.

Discovery Channel’s recent six-hour mini-series on the Klondike – vaguely based on Charlotte Gray’s book, Gold Diggers: Striking It Rich in the Klondike – once again highlighted this glaring snub.

While, the Klondike did have the benefit of terrific public relations due to famous writers like Jack London, Robert W. Service and Pierre Berton, I still don’t understand how this brief mining boom continues to dominate the “historical oxygen” in our national psyche.

At its peak, the Klondike only lasted a few years – 1896-1899 – and produced about 12.5 million ounces of gold. And unlike the California gold rush that created one of the largest and richest states in the union, the entire Yukon Territory’s population today is about 36,000. Contrast that with booming Timmins with 45,000 hardy souls who have dug out of the ground about 68 million ounces and counting of the precious metal, since the Porcupine Gold rush of 1909.

It’s enough to make to make Benny Hollinger, Jack Wilson and Sandy MacIntyre – the founders of this extraordinary deposit – spin in their collective graves.

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Indonesian export ban not a hangup for Vale N.L. – by Ashley Fitzpatrick (St. John’s Telegram – May 30, 2014)

http://www.thetelegram.com/

Long Harbour first nickel expected by end of second quarter

A ban by Indonesia on the export of unprocessed ores containing nickel will not affect the startup of Vale’s new hydromet processing facility in Long Harbour.

As previously reported, the plan for the facility in Newfoundland and Labrador is to use nickel matte from Indonesia during startup, before transitioning to ore from the Voisey’s Bay mine in Labrador as a main feed. Workers inspect equipment at Vale’s hydromet nickle processing facility in Long Harbour. — Telegram file photo

The Indonesian nickel matte, at about 78 per cent nickel, is considered less likely to cause difficulties for the Long Harbour commissioning in comparison to the material from Voisey’s Bay, at about 20 per cent nickel, as individual parts of the multibillion-dollar plant are checked and made ready for regular use.

According to Vale’s vice-president of corporate affairs in Toronto, Cory McPhee, the mining giant has been conscious of the potential for the ban on raw exports from Indonesia for years, as the company has multiple processing facilities in that country.

“The Indonesian restrictions on exports of unprocessed ore were first signaled by the Indonesian government years ago with the 2009 Mining Law which included stipulations calling for value-added domestic processing,” McPhee said in an emailed response to questions Thursday.

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Noront’s Environmental Report details innovative underground milling & backfilling plans, wetland road design – by Bryan Phelan (Onotassiniik – Summer 2014)

 http://www.onotassiniik.com/

Noront Resources intends to open the first mine in the Ring of Fire. And in building that mine, it plans to use technological innovation that could guide the development of other mines in the James Bay Lowlands and elsewhere.

When Cliffs Natural Resources late last year suspended activities associated with its proposed Black Thor chromite mine, Noront suddenly found itself the mining company “leading the charge” in the Ring of Fire, as MP Greg Rickford put it shortly before his appointment in March as Canada’s new minister of natural resources.

Alan Coutts, Noront president and CEO, this spring expressed hope construction of his company’s Eagle’s Nest mine for nickel, copper, platinum and palladium could start during next winter road season, and be operating by the end of 2017.

Noront reached an important milestone in that direction, he said, with the completion in December of a draft environmental report. The report is necessary to meet requirements for a provincial environmental assessment (EA) of the Eagle’s Nest project and for a related federal environmental impact statement (EIS). A draft version has been circulated for review and comment by the public and government agencies.

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Rickford takes mid-election jab at Ontario Liberals over Ring of Fire – by James Munson (iPolitics.ca – May 29, 2014)

http://www.ipolitics.ca/

Natural Resources Minister Greg Rickford waded into the Ontario election after appearing at the House of Commons natural resources committee today, taking a battering ram to the governing Liberals for making splashy resources announcements without giving specifics.

“We’ve gone through some silly exercises by the provincial government and I’ve been clear about that before,” said Rickford, after exiting the committee room where he was presenting his department’s latest main estimates.

“Announcing up to one billion dollars hasn’t taken investor confidence, private sector, First Nations or the federal government very far,” he said, referring to Premier Kathleen Wynne’s announcement before the writ dropped that her government would put $1 billion toward opening up the Ring of Fire mineral deposit in the province’s north.

“Saying that you’re going to have a development corporation with no articles of incorporation, no policy documents by their own admission to support it is unbelievable,” he added.

In December, Ottawa and Queen’s Park got into a scrap over Wynne’s announcement of a development corporation to get the region opened up to transportation infrastructure. The announcement of $1 billion before the election earlier this month hinged on the budget passing, which didn’t happen after the NDP pulled their support.

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Ottawa 580 CFRA News Talk Radio Host Rob Snow interviews RepublicOfMining.com’s Stan Sudol about Ring of Fire (May 26, 2014)

http://www.cfra.com/index.aspx Since taking over the drive home slot on 580 CFRA in 2004, Rob Snow has built his “Afternoon Edition” into one of the region’s most popular and influential radio shows. Snow describes himself as just an old-fashioned radio reporter at heart. Combining that reporter’s natural curiosity with a no-nonsense, let’s-just-get-to-the-point approach drives his intelligent, …

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Ring of Fire Reality Check?: Superior Morning’s Lisa Laco Interview with Mining Watch’s Ramsey Hart (CBC Thunder Bay – May 27, 2014)

http://www.cbc.ca/thunderbay/ Reality Check? It’s a big issue in the North, and the promises to ignite the Ring of Fire are flying. But Ramsey Hart of Mining Watch Canada says we shouldn’t put the horse before the cart. Click here for the interview: http://www.cbc.ca/superiormorning/episodes/2014/05/27/reality-check/

COLUMN-Goro nickel project is not just Vale’s problem now – by Andy Holm (Reuters India – May 29, 2014)

http://in.reuters.com/

The opinions expressed here are those of the author, a columnist for Reuters. May 29 (Reuters) – It’s hard not to have a grudging respect for Brazil’s Vale when it comes to the company’s Goro nickel project in New Caledonia. Others would surely have walked away from what must be one of the most problematic start-ups in the history of base metals.

Over-budget and years late even before the plant was first switched on in 2010, it has since been plagued by technical set-backs, unscheduled closures and, now, violent attack by locals. Vale has remained commendably undaunted throughout.

Yet each new start has swiftly been followed by new adversity. Even rebranding the operation as Vale New Caledonia (VNC), that tried-and-tested corporate exercise in drawing a line under historical problems, hasn’t worked.

Goro, using the relatively new high-pressure-acid-leach (HPAL) technology, continues to defy Vale’s boundless optimism and to drain money from its bottom line.

Until Jan. 12 this year it was, however, just Vale’s problem. But in the wake of the Indonesian nickel ore ban that kicked in on that date, Goro risks becoming a bigger problem for the entire nickel market.

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Barrick reaches deal with indigenous groups over Pascua Lama mine – by Rachelle Younglai (Globe and Mail – May 29, 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.

Barrick Gold Corp. has struck a deal with the indigenous groups that opposed the company’s mothballed Pascua Lama project. But the miner must still overcome huge obstacles before it can resume developing the massive gold and silver deposit in the Andes.

The mountaintop project on the border between Chile and Argentina has been put on hold indefinitely while Toronto-based Barrick waits for market conditions to improve.

The company’s mismanagement of Pascua Lama pushed costs up to $8.5-billion as the gold market soured, forcing Barrick to halt construction late last year in order to conserve cash.

Although Barrick is nowhere close to restarting the South American project, the company said Wednesday that it had reached an initial agreement in April with 15 Diaguita communities in Chile.

Barrick said it will share technical and environmental information about Pascua Lama with the indigenous groups as well as provide funding for any independent analysis.

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Vale sounds new cautionary note on possibility smelter and refinery will remain open beyond 2015 – by John Barker (Thompson Citizen – May 29, 2014)

The Thompson Citizenwhich 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

Pending federal sulphur dioxide (SO2) emission standards issues remain, as do questions over availability of nickel sulphide concentrate feed

“On the business side of things, the often talked about last year $100-million challenge, was, we have to say, a roaring success,” Mark Scott, general manager of mining and milling for Vale’s Manitoba Operations, told about 30 members and guests at the Thompson Chamber of Commerce’s weekly luncheon May 28, as he delivered a presentation entitled, “Standing on our own Two Feet.”

At the same time, however, Scott sounded a new cautionary note on the possibility of the smelter and refinery remaining open beyond next year, saying the “base case remains” that they both “will close at some point in 2015.”

Pending federal sulphur dioxide (SO2) emission standards issues remain, as do questions over availability of nickel sulphide concentrate feed, he said. The announcement that the smelter and refinery would close was originally made on Nov. 17, 2010, with Vale saying at the time it was “phasing out of smelting and refining by 2015” in Thompson.

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BHP, Rio warn strong Australian dollar will lead to more job losses – by Amanda Saunders (Sydney Morning Herald – May 26, 2014)

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

Mining giants BHP Billiton and Rio Tinto have warned the combination of high costs, high taxes and the strong Australian dollar has put a “vice-like grip” on the $60 billion coal industry that will force further mine closures and job losses this year.

About 12,000 jobs have been cut from the sector over the past two years amid a string of mine closures and delays to projects by companies ¬including BHP, Rio, Glencore, Vale and Peabody Energy.

BHP global coal president Dean Dalla Valle said there would be “difficult times ahead in a period of such oversupply”, particularly given many operators are not making money at ¬current depressed prices.

“You will see the industry adjust itself, shake itself out. You are going to see more exits from the market.” While both miners remain confident in the long-term outlook, they predict a brutal period ahead for the industry as prices remain under intense pressure.

The contract price of premium hard-coking coal has fallen to $US120 a tonne in the June quarter from $US330 a tonne in 2011, while thermal coal prices have dropped to $US74 a tonne on the spot market from $US125 in mid-2011.

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Fight to oust Cliffs board just got real ugly – by Frik Els (Mining.com – May 29, 2014)

http://www.mining.com/

Cliffs Natural Resources (NYSE:CLF), the US’ biggest iron ore producer, announced this week that it is reducing capital spending by an additional $100 million on top of the $460 million in cuts already announced.

This led to speculation that Cleveland-based firm could breach certain debt covenants should the weakness in the price of the steelmaking raw material persist.

Cliffs stock was up on Thursday, but investors in the company are nursing a 37% slide in the market value of the company and an exit from the S&P500 index as it tries to cope with a downturn in the market by idling mines in Canada and the US and laying off workers.

Activist investment firm Casablanca Capital launched a bid in January to oust the current Cliffs board and on Wednesday issued another statement calling for drastic changes at the company.

Casablanca, a top shareholder with more than 5% of equity in the miner, called the value destruction at the company “alarming” adding that despite the losses “a majority of the current Cliffs directors, including its chairman, James Kirsch, remain in their seats.”

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More pain ahead for mining investors: Michael Berry – by Alisha Hiyate (Mining Markets Magazine – May 28, 2014)

http://www.miningmarkets.ca/

Self-described natural resources bull and co-editor of Disruptive Discoveries Journal (formerly Morning Notes) with his son Chris, Michael Berry is an economist, a former professor, with 25 years of experience investing in the natural resources and life sciences sectors.

In an interview with Mining Markets in late May, Berry, who is a frequent guest lecturer at the Federal Reserve, explains where the U.S. is in its economic recovery, why gold and silver will remain range bound, and what risks and opportunities await investors in the commodity and capital markets.

Mining Markets: Let’s start off with the general state of the U.S. and global economies. Earlier this month, you wrote we are still in an economy that has not and will not achieve escape velocity – or growth – for many months or even several years. What has to happen before a recovery can take hold?

Michael Berry: In most recoveries from a recession historically, you’ve had a 4% to 4.5% economic growth rate. Today we are barely at 2%. In most recoveries, central bankers want to generate inflation to avoid the Japanese deflationary experience: they want rising prices and wages. We’re not seeing any of these at present.

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A voice in the wilderness barks again for the Northern Ontario Heritage Party – by Roy Macgregor (May 29, 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.

NORTH BAY, ONT. — ‘Just give me a minute to put my teeth in!”

It has been a wild week for 82-year-old Ed Deibel of the Northern Ontario Heritage Party. The clock on the wall behind the double-screen computer on which he hammers out his missives on how the North gets shortchanged has ticked past 2 p.m., the deadline for registering as a candidate for the June 12 provincial election, and he is getting a bit jittery waiting for the confirmation from Elections Ontario that eventually does come.

Teeth in, the man known for decades more for his bark than his bite is ready to go. “On Monday I wasn’t a leader, I wasn’t a candidate, the party was going to be de-registered,” he says. “Now I’m a candidate … and I guess I’m the leader.”

There were only two registered candidates on the NOHP ticket, but then a group of disenchanted northerners in the riding of Thunder Bay-Atikokan rounded up 25 signatures, enough to get a name on the ballot, and they asked if the old leader of the often-dormant party would let his name stand.

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