August 21, 2014 – Republic of Mining

Opinion: Extensive safeguards already in place for B.C. mining industry – by Angela Waterman (Vancouver Sun – August 20, 2014)

August 21, 2014

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

Best practices: Tailings dam breach was an extremely rare occurrence

Angela Waterman is Vice-president of Environment and Technical Affairs at The Mining Association of British Columbia.

The breach of the tailings dam at the Mount Polley Mine is an unfortunate event that is of great concern to the Mining Association of British Columbia (MABC) and all our member companies, just as it is to people across Canada.

After this incident, the public, the government and the mining industry all share the same objective: to find the root cause of what happened and determine if there are changes required or actions to be taken based.

The B.C. mining industry is committed to producing the materials the world needs in a way that is safe and responsible for both people and the environment. MABC, its members, and mining associations and companies across Canada are closely following the ongoing investigation.

Tailings dams across Canada are operated under stringent regulations and are subject to frequent and rigorous inspections, and this kind of incident is extremely rare. There has not been a comparable event in Canada in over 20 years. Globally, the general statistics related to likelihood of dam failure is between one in a million and one in 100,000 per dam year.

First Nations poised to emerge as leaders in Ring of Fire development – by Suzanne Leclair (Mining Markets – August 21, 2014)

August 21, 2014

http://www.miningmarkets.ca/

Suzanne Leclair LL.B is the founder of Connect Counsel, a Canadian professional multi-disciplinary business advisory firm dedicated to developing major aboriginal and non-aboriginal partnerships in energy and natural resource related infrastructure projects. She is an infrastructure advisor to Mushkegowuk Council.

In July, on the day after the Ontario Court handed a victory to Cliffs Natural Resources (NYSE: CLF) against KWG Resources (TSXV: KWG) regarding a potential road into the Ring of Fire, Cliffs’ legal representative flew to Marten Falls, an aboriginal community in the Ring of Fire region to explain the implications of the decision to the chiefs at their annual general meeting.

After his presentation, Cliffs’ representative fielded his first question from one of the chiefs: “How can two mining companies fight in a Toronto court over land that is simply not theirs?” With that simple question, the chief underscored the challenges as to who can lead the development of a transportation corridor into the isolated but mineral-rich region.

Also last month, another potential challenge arose with the Supreme Court of Canada’s Tsilhqot’in Nation decision. It’s the first time that aboriginal title has been granted in Canada, and it could have implications for resource development in Ontario. So, what’s changed with respect to the Ring of Fire since Canada’s highest court handed down a major victory for aboriginal communities in the form of the Tsilhqot’in ruling?

End of Australia’s mining boom threatens Pilbara Cities plan – by Jamie Smyth (Financial Times – August 20, 2014)

August 21, 2014

http://www.ft.com/home/us

Port Hedland, Australia – In a dusty industrial estate next to the world’s biggest iron ore port in Western Australia’s remote Pilbara region, business has never been so bad.

“The rents got so high in the town that when the boom ended, businesses began to die off everywhere,” says Jo Woodward, owner of Jems, a ramshackle building with an eviction notice stuck to its padlocked gate that was recently Port Hedland’s only legal brothel. “Nothing is selling here now.”

The demise of Jems, and of many other Pilbara businesses that have closed their doors following the end of the country’s mining investment boom, suggests Australia may struggle to realise one of its flagship projects.

Port Hedland and neighbouring Karratha grew rapidly during a decade-long boom as workers flooded into the Pilbara to construct the iron ore mines, railways and ports needed to feed Chinese demand for steel.

Mushkegowuk Council Sets Ring of Fire Business Case – by NNL Staff (August 20, 2014)

August 21, 2014

http://www.netnewsledger.com/

Mushkegowuk MUSHKEGOWUK HOMELANDS – The Mushkegowuk Council has announced they will coordinate the development of their business case in support of a Ring of Fire rail, sea port, fibre-optic, and energy transportation corridor through an Aboriginal-led-alliance. “We now have the experience, people, credibility and knowledge to take an active role in leading the development of infrastructure corridors. We have learned from our mistakes and we have the confidence from our successes” said Deputy Grand Chief Leo Friday.

Deputy Grand Chief Leo Friday, on behalf of Mushkegowuk Council, announced to the Matawa Council of Chiefs at their annual general meeting on July 31st, 2014 that Mushkegowuk is fully supportive of Matawa’s interests in the Ring of Fire.

Mushkegowuk Seeks Matawa Agreement

In the spirit of our joint declaration between Matawa and Mushkegowuk Chiefs, Mushkegowuk Council offered the Matawa Council of Chiefs to jointly develop sustainable infrastructure opportunities to unlock the economic potential of the Ring of Fire while safeguard ing the historic rivers of the Matawa and Mushkegowuk homelands.

For example; Mushkegowuk’s Moose Cree First Nation and Taykwa Tagamou Nation have negotiated equity partnerships in power generation stations.

Nuclear watchdog requests safety checks after B.C. mine breach – by Dene Moore (CTV News/Canadian Press – August 19, 2014)

August 21, 2014

http://www.ctvnews.ca/

VANCOUVER — A toxic spill from a British Columbia mine has prompted the country’s nuclear watchdog to request a series of checks at uranium facilities. The Canadian Nuclear Safety Commission will discuss the failure of the tailings pond at the Mount Polley gold and copper mine during a meeting Wednesday.

In the interim, the commission has asked the uranium mining and milling operations it oversees to ensure that all necessary inspections and monitoring are in compliance with licence conditions.

“The recent tailings dam breach that occurred at the Mount Polley mine in British Columbia on Aug. 4, 2014, has raised awareness of issues associated with tailings impoundments,” said a letter sent to Areva Resources, Cameco Corp. , Rio Algom, Willet Green Miller, P.J. Brugger and Associates, EWL Management Ltd. and Denison Mines Inc.

“This is a reminder that vigilance must be maintained by ensuring that tailings dams continue to be properly designed, constructed, operated, maintained and monitored to prevent such occurrences.”

The companies were asked to confirm that mitigation measures are in place in the event of a tailings breach. They’re also asked to confirm the safety of tailings facilities and report any identified gaps to the commission by Sept. 15.

Glencore to Buy Back $1 Billion of Stock as Profit Gains – by Jesse Riseborough (Bloomberg News – August 20, 2014)

August 21, 2014

http://www.bloomberg.com/

Glencore Plc (GLEN)’s billionaire Chief Executive Officer Ivan Glasenberg underscored his belief in the longevity of the global commodities boom by beating his biggest rivals in handing out surplus cash to investors.

Glencore, the third-largest miner by market value, today announced a $1 billion share buyback after first-half profit gained 8 percent on higher production. Investors in BHP Billiton Ltd. (BHP) sent the stock down the most in more than three years in London yesterday after the world’s biggest mining company chose to retain cash because of weaker commodity prices.

Global mining investors have been demanding greater returns following a period marked by failed acquisitions and spending on mine expansions that flooded metals markets. After a decade of explosive price gains fueled by Chinese demand, often defined as the commodities supercycle, mining companies are contending with slower growth by spurning mergers and cutting costs.

“The supercycle ain’t over, China is still buying, demand for commodities hasn’t tapered off, it’s even higher than it’s ever been,” Glasenberg said today in an interview. “The demand is pretty good. We’ll grow. We may do acquisitions where you’re not creating more supply in the market.”

UPDATE 4-China says Australian tycoon’s attack “irrational and absurd” – by Ben Blanchard, Jane Wardell, Sonali Paul and Adam Jourdan (Reuters India – August 21, 2014)

August 21, 2014

http://in.reuters.com/

BEIJING/SYDNEY, Aug 21 (Reuters) – China’s foreign ministry has condemned a verbal attack by Australian mining mogul and politician Clive Palmer as irrational and absurd, after the businessman described China’s government as “bastards” who shoot their own people.

The Australian government has rebuked Palmer, who holds the balance of power in the parliament’s upper house. Foreign Minister Julie Bishop said she planned to contact the Chinese embassy to stress that the Australian parliament does not share Palmer’s “abusive” views.

“Palmer’s words about China in recent days are totally irrational and absurd. We strongly condemn them,” Ministry of Foreign Affairs spokesman Qin Gang said in a statement posted on the ministry’s official website late on Wednesday.

Qin’s statement came after a prominent Chinese newspaper, the state-run Global Times tabloid, said Australia should be taught a lesson. “China cannot let him off, or show petty kindness just because the Australian government has condemned him,” it said in an editorial in its Chinese and English editions.

“China must be aware that Palmer’s rampant rascality serves as a symbol that Australian society has an unfriendly attitude toward China.”

Vale secures key licence for flagship iron ore mine expansion – by Cecilia Jamasmie (Mining.com – August 21, 2014)

August 21, 2014

http://www.mining.com/

Brazil’s Vale (NYSE:VALE), the world’s largest producer of iron ore, has secured a key environmental licence for a 90 million tonnes a year expansion of its flagship iron ore mine in the Carajás complex, in the northern state of Para.

The nearly $20 billion plan is expected to start production in 2016 and reach full capacity of 90-million tonnes a year of iron-ore in 2018, or nearly a third of Vale’s existing annual output.

In a statement Wednesday evening, the company said Brazil’s environmental regulator Ibama had granted it a preliminary license for its plans to expand its N4WS, N5S, Morro I and Morro II projects at the Carajás complex, which combined would give Vale an additional 1.8 billion tonnes in reserves.

The expansions are considered vital for Vale as the miner has been losing market share to Rio Tinto (ASX, LON:RIO) and BHP (ASX:BHP).

Carajás, located in a remote corner of the Amazon rainforest, currently holds the world’s largest iron ore deposits with 7.2 billion tonnes combined in proven and provable reserves. It accounts for 35% of Vale’s annual ore output of more than 300 million tonnes. Last summer Vale received a licence from the Environmental Protection Agency of Brazil to build a $19.5 billion railway expansion to its Serra Sul mine, part of the Carajás complex.

Editorial: Once more into the breach – by John Cumming (Northern Miner – August 20, 2014)

August 21, 2014

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists. jcumming@northernminer.com

It was another week of major developments in the fast-moving story of Imperial Metals and the massive, 15-million-tonne tailings and waste-water breach at its Mount Polley copper–gold mine in central B.C.’s Cariboo region.

One major worry amongst the general population in B.C. is that they’re looking at a Lac-Mégantic rail-disaster type of situation, where the offending company goes bankrupt soon after the incident, leaving local communities reeling and higher levels of government with the task of cleaning up the devastation and a multi-million dollar bill.

That doesn’t appear to be happening with Imperial Metals and the Mount Polley spill, as Imperial was able to flex a little of its financial muscle on Aug. 14 with the announcement that it would raise $100 million in a convertible debenture, with at least some of the funds to be directed towards the clean-up at Mount Polley.

Playing a large and leading role in the financing is Calgary-based oilsands billionaire Murray Edwards, chairman of Canadian Natural Resources and perhaps best known as a co-owner of the Calgary Flames NHL team. Among his many business ventures in Western Canada, he owns a 30% stake in Imperial Metals, which might account for less than 10% of his wealth, which was pegged by Forbes at US$2.2 billion in 2011.

Duluth PFS shows robust, high margin base/precious metals project – by Lawrence Williams (Mineweb.com – August 21, 2014)

August 21, 2014

http://www.mineweb.com/

The latest PFS on the TMM project provides increasing confidence that the proposed underground mine remains hugely attractive in economic terms.

LONDON (MINEWEB) – Duluth Metals, which is working on moving an enormous base and precious metals project to the development stage in a controversial part of Minnesota, USA, has just announced it has received an independent draft feasibility study prepared by a multi-company team led by AMEC.

The draft PFS, part of an NI 43-101 compliant technical report shows the economics of the proposed underground copper/nickel/pgm mine are supported by fundamentals showing a competitive cost position, high margins sustained over time, and capital efficiencies resulting from outstanding regional and local infrastructure and competitive advantages.

The study was carried out on a proposed underground project which involves mining only a relatively small portion of the company’s Twin Metals Minnesota (TMM) resource on the massive Duluth Complex in eastern Minnesota, and the overall project area should support an even bigger, far longer life operation.

The area is environmentally sensitive and Duluth is keen to demonstrate that a smaller project can be developed which meets all environmental criteria while keeping surface disruption to a minimum by underground mining and very strict environmental controls on waste disposal, processing and tailings storage.

Batista’s MMX to Halt Work at Mine as Iron-Ore Falls – by Juan Pablo Spinetto (Bloomberg News – August 20, 2014)

August 21, 2014

http://www.bloomberg.com/

MMX Mineracao & Metalicos SA (MMXM3), the mining unit of former billionaire Eike Batista, will temporarily stop operations at its only producing mine as it seeks to avoid bankruptcy protection amid lower metal prices.

The Brazilian iron-ore producer will give workers at its Serra Azul unit in Minas Gerais state a 30-day “collective vacation,” MMX said in a statement today. The furlough will begin during the first week of September.

“The necessity of the collective vacation and temporary stop of the production activities at the Serra Azul Unit is a consequence of the significant and prolonged decline of the iron-ore price,” MMX said in the statement. The measure also stems from “the operating restrictions imposed by the environmental authorities of the state of Minas Gerais.”

MMX is reviewing its business plan to bolster cash as iron-ore prices decline. The company will pay workers during the furlough, MMX said in an e-mailed reply to questions.

Batista, once Brazil’s richest person, has been selling assets as missed targets, mounting debt and accumulating losses forced his oil and shipbuilding companies to enter Brazil’s so-called judicial recovery proceedings last year.

UPDATE 2-Mongolia eyes economic boost from China president’s visit – by Terrence Edwards and David Stanway (Reuters India – August 21, 2014)

August 21, 2014

http://in.reuters.com/

ULAN BATOR/BEIJING, Aug 21 (Reuters) – Chinese President Xi Jinping proposed on Thursday the expansion of bilateral trade with Mongolia to $10 billion a year by 2020 as he arrived for a two-day visit aimed at deepening economic ties between the neighbours.

Xi’s arrival marks the first Chinese presidential visit in 11 years to Mongolia which has been hit by plunging commodity prices and a rapid decline in foreign investment. It is keen to agree to new deals on transport, energy and mining investment with its dominant trading partner.

The two countries signed a joint declaration upgrading their relationship to a “comprehensive strategic partnership”. They also signed agreements to cooperate further in areas such as economics, energy, mining and finance.

“Xi proposes to expand China-Mongolia trade to $10 billion by 2020,” China’s Xinhua state news agency said. Two-way trade was worth $324 million in 2002 but rose to $6 billion in 2013, accounting for more than half of Mongolia’s total foreign trade, Xinhua said.

In an article written by Xi for Mongolian newspapers, Xi said China would do all it could to help Mongolia develop. “China hopes that both countries can push cooperation on building inter-connecting railways and roads, the development of mines and processing,” Xi wrote.

B.C. mining boom, recent tailings breach prompt environmental fears in Alaska – by James Keller (CTV News/Canadian Press – August 21, 2014)

August 21, 2014

http://www.ctvnews.ca/

VANCOUVER — Heather Hardcastle has spent her life fishing for salmon at the mouth of the Taku River, which starts in a remote corner of northwestern British Columbia before dumping into the ocean near her home in Juneau, Alaska.

She was six years old when her parents bought a fishing boat. More than a decade ago, she became co-owner of Taku River Reds, a small commercial fishing outfit that ships salmon throughout the United States.

In recent years, however, Hardcastle’s attention has been focused farther upstream in B.C., where a cluster of proposed mining projects has fishermen, environmentalists, aboriginals and a handful of politicians in Alaska concerned about the potential impact on the environment in their state.

And those concerns have only been amplified by a recent mine tailings spill in central B.C., where the full impact from the disaster on aquatic life remains unclear.

“It’s one thing on paper to say that you have standards that are high, but it doesn’t matter when you have a disaster like this,” said Hardcastle, whose concerns prompted her to become involved with the environmental group Trout Unlimited.

“There’s a real lack of confidence and trust right now.”