Gold Has Biggest Loss of 2014 as Portugal Concerns Ease – by Luzi Ann Javier (Bloomberg News – July 14, 2014)

http://www.bloomberg.com/

Gold futures posted the biggest decline in almost seven months as Portuguese banking concerns eased and equities gained, diminishing demand for haven assets.

Portuguese 10-year government bonds were set for the biggest two-day advance in a month on speculation that Portugal would contain financial woes at one of its banking groups. The Standard & Poor’s 500 Index added as much as 0.6 percent after Citigroup Inc. reported profit that topped analysts’ estimates.

The drop comes after gold capped the longest run of weekly gains since 2011, partly as missed payments on notes by a parent company of Portugal’s second-biggest bank renewed concern that Europe hasn’t resolved its debt crisis. EU spokesman Simon O’Connor said July 11 that the country has taken steps to shore up its financial system. Goldman Sachs Group Inc.’s Jeffrey Currie reiterated his outlook for lower bullion prices as confidence increases in the economic recovery and inflation remains tame.

“A strong stock market and some stability in the EU” are pressuring gold, Peter Thomas, a senior vice president at Zaner Group LLC in Chicago, said in a telephone interview. “A lot of people were looking at Portugal as a domino effect, and as we saw, O’Connor prevailed and it didn’t have a significant impact.”

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Why the Resource ‘Super-Cycle’ is Still Intact – by Rick Rule (MoneyMorning.com.au – July 13, 2014)

http://countingpips.com/

Rick Rule is Chairman of Sprott Global Resource Investments

I believe we are still in a resource ‘super-cycle’ — a long period of increasing commodity prices in both nominal and real terms.

The market conditions of the past two years have made many observers doubt this assertion. But I believe the current cyclical decline is a normal and healthy part of the ongoing secular bull market.

The most striking analogy to the current situation occurred in the epic gold bull market in the 1970s. You may recall that gold prices advanced from US$35 per ounce to $850 per ounce over the course of that decade.

You may also recall that, in 1975 and 1976, a cyclical decline saw the price of gold decline by 50% — from about $200 per ounce down to about $100 per ounce. It then rebounded over the next six years to $850 per ounce.

Investors who lacked the conviction to maintain their positions missed an 850% move over six short years. The current gold bull market, since its inception in 2000, has experienced eight declines of 10% or greater, and three declines, including the present one, of more than 20%.

This volatility need not threaten the investor that has the intellectual and financial resources to exploit it.

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Newmont Gives Glittering Opportunities for Ghana’s Talent – by Joe Kirschke (Engineering and Mining Journal – July 3, 2014)

http://www.e-mj.com/

Since Portuguese navigators first arrived in the 15th century, mining, production and export of gold have been integral to Ghana’s history. Through the later christening of a “Gold Coast” by British colonialists and the emergence of sub-Saharan Africa’s first sovereign nation in 1957, Ghana today also hosts the continent’s No. 2 reserves of the ore.

Yet as in all too many developing nations, Ghana’s gold mining business, representing 90% of 2011 mineral exports—and $2.7 billion by Q3 2013—is not always a kind one. Fatalities from artisanal mining have been toxic as its mercury, while unrest involving illegal Chinese miners culminated in 169 deportations to their mainland last year. “Gold is a curse to this nation!” thundered a columnist in The Chronicle, a local newspaper, shortly thereafter.

But many elements of Ghana’s mining culture—in particular Accra’s ratification of U.N. International Labor Organization (ILO) standards—reflect positive clarity, too. Others include worker apprenticeship programs at Newmont Mining Corp.’s Ahafo and Akyem projects—samples of how, via smart Corporate Social Responsibility (CSR), profits and prosperity are sparkling hand-in-hand in one of Africa’s most mature democracies.

The apprenticeships date back to 2004 when 722 local men and women joined the construction phase of the Ahafo mine ahead of Q3 2006’s first production, said Adiki Ayitevie, communications director for Newmont Africa. The program was soon upgraded to a “Semi-Skilled Metals Construction Labor Program,” wherein 324 young men and women were trained in metal working and safety; the World Bank’s International Finance Corp. (IFC) investment wing noted Ahafo was already ahead of schedule, given strong community engagement.

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In search of yield – by Allan Seccombe (Miningmx.com – July 14, 2014)

http://www.miningmx.com/

[miningmx.com] – NEAL Froneman can always be relied upon to spring a surprise. Whilst head of Uranium One in 2007, he took the company into a partnership with former Soviet assets owned by Kazakhstan. It’s what you might call ballsy.

Now, as the leader of Sibanye Gold, South Africa’s largest gold producer, he is considering a foray into platinum – a move his critics think is full of potential potholes. At Uranium One, the goal was market share; at Sibanye Gold, it’s dividends, or in investment-speak, yield.

Froneman has the backing of key shareholders for such a strategy, but it could be risky, especially if he doesn’t get exactly the right project. Yet, if the gamble pays off it will cement Sibanye as a must-have share for investors attracted to dividend flows.

“When you are a yield player, the sustainability of your yield is actually very important from a valuation point of view,” Froneman said in an interview at his offices, formerly a hospital for Libanon mine, the west Rand mine Sibanye Gold owns.

“We’ve been engaging our shareholders on a very high level on the strategy of the company. We’ve brought them into the company based on free cash and dividend yield.

They’ve made it very clear that provided as it’s along the lines we discussed earlier, they would be supportive in principle, but it will depend on the particular transaction.

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Nova asset ‘world class’, says Sirius as it publishes DFS – by Esmarie Swanepoel (MiningWeekly.com – July 14, 2014)

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

PERTH (miningweekly.com) – A definitive feasibility study (DFS) into nickel developer Sirius Resources’ Nova project, in Western Australia, has confirmed that the project’s low cash cost would allow it to fall in the lowest quartile of nickel producers globally.

Sirius reported on Monday that the Nova project was expected to generate net cash flow of A$2.74-billion from a nickel revenue of some A$4.53-billion, over the project’s ten-year mine life.

C1 cash operating costs after by-product credits were forecast to be A$1.66/lb nickel in concentrate, which was better than the 2013 scoping study estimates.

The DFS slightly increased the expected capital expenditure for the project to A$473-million, up from the A$471-million estimated in the scoping study, with the capital cost now including extra risk mitigating measures.

The DFS was based on a processing rate of 1.5-million tonnes a year, to deliver about 26 000 t/y of nickel, 11 500 t/y of copper and 850 t/y of cobalt over a ten-year mine life.

The study was based on a maiden probable ore reserve of 13.1-million tonnes, grading 2.1% nickel, 0.9% copper and 0.07% cobalt, for 273 000 t of nickel, 112 000 t of copper and 9 000 t of cobalt.

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Ontario’s ‘win’ in Grassy Narrows comes at a high cost – by Bruce McIvor (Troy Media – July 13, 2014)

http://www.troymedia.com/

Bruce McIvor is Principal of First Peoples Law Corporation .

VANCOUVER, BC, Jul 13, 2014/ Troy Media/ – The Supreme Court of Canada’s recent Grassy Narrows (Keewatin) decision places a heavy legal burden on provincial governments when they seek to exploit Indigenous lands covered by the historical treaties of Canada. The challenge now is for First Nations to hold the provinces to account.

What the case was about?

Between 1871 and 1923, Canada negotiated 11 numbered treaties with First Nations across the country, including the Anishinaabe of Treaty 3 in northwestern Ontario and eastern Manitoba. With slight variations, each treaty allowed for the ‘taking up’ of lands for non-Indigenous settlement, mining, lumbering and other purposes. The primary issue inGrassy Narrowsis what limits exist on Ontario’s ability to exercise the taking up clause in Treaty 3.

After one of the longest and most thorough treaty interpretation trials in Canadian history, Justice Mary Anne Sanderson of the Ontario Superior Court of Justice confirmed the Anishinaabe understanding that Treaty 3 was made with Canada, not Ontario. This, coupled with Canada’s exclusive responsibility for “Indians, and lands reserved for the Indians” under the Constitution, meant that only Canada can issue forestry authorizations that significantly affect the exercise of treaty rights.

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Are we due for another massive gold and silver price smash? – by Lawrence Williams (Mineweb.com – July 14, 2014)

http://www.mineweb.com/

A big rise in gold and silver shorts held by the big commercial banks not seen since the 2013 gold price smashdown, could suggest a repeat is in the offing.

LONDON (MINEWEB) – The signs are all there. The big investment banks – JPMorgan in particular – which have the financial clout to move the markets on their own through massive paper sales in the futures markets have, it is reported, been building short positions in gold and silver to a level not seen since just ahead of the big gold price smashdown of April last year.

Is history about to repeat itself? If we get another high profile bank analyst issuing a strong ‘sell short, or ‘slam dunk sell’ gold recommendation in the next few days then it may presage another attempt to knock the gold price, and the silver price, down very sharply. As was shown last April, such a move could negate any gold price gains so far this year – and more.

As Ed Steer commented in his most recent newsletter in an analysis of the latest COT report which showed that the Commercial net short position on COMEX increased by 5,548 contracts, or 554,800 troy ounces. The Commercial net short position now stands at 16.6 million troy ounces. “You’d have to go back to March of 2013 to see the Commercials holding this big a net short position in gold.

It was from that point in March of last year where gold got clocked for $400 the ounce by the end of July.

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Barrick teams with Saudi Arabian miner on copper project – Rachelle Younglai (Globe and Mail – July 14, 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. will work with a prominent Saudi Arabian miner to develop its copper mine in the country, a partnership that the Canadian company aims to replicate with other projects such as its mothballed Pascua Lama in the Andes.

The Saudi Arabian Mining Company (Ma’aden) will pay $210 million (U.S.) to own half of Barrick’s Jabal Sayid copper asset, which has been delayed due to regulatory hurdles in the Kingdom.

Barrick, the world’s largest gold producer, said the state-owned Ma’aden’s “extensive experience in the Saudi Arabian mining sector,” would help move the project to completion.

Jabal Sayid is expected to start operating in 2015 with annual production of about 100-130 million pounds of the red metal during its first five years of operation, according to Barrick.

The joint venture marks the first partnership the company has formed since John Thornton became Barrick’s executive chairman earlier this year. Mr. Thornton has spoken to media about developing a long-lasting relationship with China, currently the world’s biggest gold producer and consumer.

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Court’s land claims ruling harms Canada’s business environment – by Gwyn Morgan (Globe and Mail – July 14, 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.

On June 26, the Supreme Court of Canada awarded title to a piece of the B.C. Interior roughly the size of Prince Edward Island to the 3,000-member T’silhqot’in First Nation. Initial government and business reaction characterized the decision as merely a clarification of previous lower-court judgments.

That was before it became clear that the land-claim entitlement criteria set out in the 37-page decision, written by Chief Justice Beverley McLachlin, exceeded the worst-case scenario of both governments and industry.

Under previous legal rulings, the “basis of occupation” to be used in establishing aboriginal title was limited to the immediate environs around settlements. The Supreme Court has vastly expanded that, saying: “[A]boriginal title … extends to tracts of land that were regularly used for hunting, fishing or otherwise exploiting resources and over which the group exercised effective control at the time of assertion of European sovereignty” (that is, the mid-1800s).

The court justifies this extreme interpretation by stating “… what is required is a culturally sensitive approach to sufficiency of occupation based on the dual perspectives of the Aboriginal group in question … and the common-law notion of possession as a basis for title.”

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Mine death reinforces importance of review – by Carol Mulligan (Sudbury Star – July 14, 2014)

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

The death of another employee at an Ontario mining company Thursday — the seventh this year — further illustrates the importance of the comprehensive Mining Health Safety and Prevention Review, says a Sudbury union leader.

A 38-year-old man who was using a loading machine to haul rocks died after being pinned under a rock about 2,700 feet below surface at North American Palladium’s Lac des Iles Mine north of Thunder Bay.

Myles Sullivan, area coordinator of United Steelworkers, said the man was a USW member and he expressed the union’s sorrow at his death, which is being investigated by the Ministry of Labour.

Sullivan said he remains convinced the mining review, started at the beginning of this year, will result in recommendations that will make mining safer for those who work in the industry, particularly if it moves into a second phase and examines safety at surface plants.

The review was established after strong lobby efforts from United Steelworkers and a citizens’ group called MINES (Mining Inquiring Needs Everyone’s Support), struck after the deaths of three workers at Vale mines in Sudbury. Both the union and MINES wanted a full-blown inquiry, similar to the one into the collapse of Algo Centre Mall in Elliot Lake that killed two people.

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Fipke still looking for new diamond finds – by Anna Nicolaou (Globe and Mail – July 12, 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.

Charles (Chuck) Fipke doesn’t like giving interviews, but on this occasion, the multimillionaire geologist has a message to send: Selling his last piece of Canada’s first-ever diamond mine was anything but a retreat.

Rather, it’s his thirst for adventure that spurred him cut financial ties to Ekati, Canada’s first diamond mine and the product of his epic discovery in the Canadian arctic in the 1990s. The chunk of cash he’ll receive – a cool $67-million (U.S.), plus “quite a bit” of adjustments and interest payments – will help him to actively hunt for new sparkling gems.

Dominion Diamond Corp. – formerly known as Harry Winston Diamond Corp. – bought Mr. Fipke’s remaining interest on Wednesday, officially ending his financial involvement with the mine.

“I’m an explorer, not a manager,” Mr. Fipke explained over the phone from his home in Kelowna, B.C., where he studies gravel samples from around the world in his laboratory.

“It was always nice to own part of the [Ekati] mine,” he said, noting that he attended every quarterly meeting since before the mine was born. “It was fun, but I’m more of a geologist than a mining manager,” he repeated. “This allows me to do more exploration.”

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Market leadership CEO’s goal – by Scott Larson (Regina Leader-Post – July 14, 2014)

http://www.leaderpost.com/index.html

Plans to maintain, expand status

THE STARPHOENIX – Jochen Tilk is beginning to settle into his new role as president and CEO of Potash Corporation of Saskatchewan, the largest fertilizer company in the world.

The 50-year-old has been on the job just a week after taking over from the retiring Bill Doyle, who spent the last 15 years as CEO and president overseeing the massive growth of the company.

Tilk has 30 years of experience in mining, most recently as president and CEO of Inmet Mining, a Canadian company with global operations. He now takes over the reins of a company in a sector that has weathered a few rough years.

Last July, the $20-billion global potash market was rocked when industry giant OAO Uralkali, the Russian half of BPC, split with its Belarusian partner, sending potash prices down 25 per cent.

This year, PotashCorp laid off 1,045 employees, or almost 20 per cent of its workforce. Tilk spoke to The Star-Phoenix about his goals and expectations for Potash-Corp. What follows is an edited version of that conversation.

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BHP sell-off could undo Billiton deal – by Danny Fortson (The Australian – July 14, 2014)

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

The Sunday Times – A FEW days after Paul Anderson unveiled the largest merger in the history of the mining industry, the American boss of BHP went on a Sunday talk show to put politicians’ minds at rest. They were concerned that BHP, the 116-year-old national champion known as “the Big Australian”, was about to be lost to London.

Mr Anderson and Brian Gilbertson, head of smaller rival Billiton, had just announced a $US28 billion tie-up that would create a new natural resources Goliath.

Billiton was already listed in London. BHP, meanwhile, ran its giant oil operation from London. A relocation of the group headquarters from Melbourne seemed a distinct possibility. After all, the combined group would stretch across five continents and produce everything from diamonds and oil to nickel and iron. Why not run it from ­Europe’s financial capital?

The fears, Mr Anderson assured, were misplaced.

He said the merger was “a win-win”. There would be housekeeping to be done but a headquarters move would not be part of it. “I’m sure there will be two or three things in the portfolio that we will want to sell off … once we put the companies together,” he said.

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Life after Ekati: Legendary Canadian geologist Chuck Fipke gears up for more exploration – by Peter Koven (National Post – July 12, 2014)

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

Chuck Fipke fondly recalls the glory days of Arctic diamond exploration in the 1980s and early 1990s.

His budget was so tight that he flew around in a plane by himself, zigzagging across the Northwest Territories over an 800-mile stretch of prospective land. If he brought an assistant, it would have used up more fuel and left him less weight to carry rock samples.

“It was just fun every day,” the famous geologist said in an interview this week. “Most of the time when I’m working, it’s not really work to me at all.”

In 1991, his efforts paid off as he and partner Stewart Blusson hit the motherlode: They found the Ekati deposit, which became Canada’s first diamond mine and remains one of the richest diamond discoveries ever made.

The Ekati find made Mr. Fipke a prospecting legend and triggered a massive treasure hunt across the Arctic. Eventually, other large diamond deposits would be found as well: Diavik, Snap Lake and Gaucho Kué.

Mr. Fipke became a very wealthy man as shares of his company, Dia Met Minerals Ltd., soared through the roof. Dia Met was sold to mining giant BHP Billiton Ltd in 2001, but Mr. Fipke maintained exposure to Ekati through his 10% direct stake in the mine.

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Supreme Court of Canada upholds Ontario’s right to issue development permits on aboriginal treaty land – by Drew Hasselback and Peter Koven (National Post – July 12, 2014)

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

Ontario’s natural resource companies welcomed a ruling Friday by the Supreme Court of Canada that confirms provinces have the authority to issue logging, mining and other development permits on aboriginal treaty lands.

In doing so, the high court rejected a claim from Grassy Narrows First Nation, which argued that Ontario needed the federal government’s approval before issuing a logging permit.

Had the Supreme Court ruled in favour of Grassy Narrows in the so-called Keewatin case, many permits issued in Ontario that did not involve the federal government could have been subject to challenge by First Nations.

“If the decision had gone the other way, and in light of [last month’s] Roger William case, there would have been great uncertainty with respect to aboriginal title, aboriginal treaties and aboriginal law in Ontario,” said Neal Smitheman, a partner at Fasken Martineau DuMoulin LLP, referring to the Supreme Court judgment in British Columbia that changed the way governments must deal with First Nations over land where aboriginal title is claimed.

Friday’s top court ruling involved the interpretation of Treaty 3, a 141-year-old agreement that covers about 142,000 square kilometres in what is now northwestern Ontario and eastern Manitoba.

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