September 8, 2014 – Republic of Mining

Potash Corp. Veteran Challenges Uralkali With Russian Mines – by Yuliya Fedorinova (Bloomberg News – September 8, 2014)

September 8, 2014

http://www.bloomberg.com/

OAO EuroChem, a Russian fertilizer maker building $7.4 billion of potash projects, is gearing up to challenge the dominance of OAO Uralkali with production from its two mines reaching the market in five years.

“We expect we’ll be able to mine the first potash at both mines in late 2017,” Clark Bailey, EuroChem’s mining head, said in an interview. About two more years will be needed to start shipments to external customers, he said.

EuroChem is developing an annual capacity of 8.3 million metric tons of potash, a form of potassium that strengthens plant roots, in two phases at the Verkhnekamskoe deposit in the Perm region and in another two at the Gremyachinskoe deposit in the Volgograd region in western Russia. The company controlled by billionaire Andrey Melnichenko kept its pace even as Uralkali plunged the $20 billion market into turmoil in July last year by ending a marketing venture with Belarus that accounted for 40 percent of worldwide potash exports.

EuroChem, which already produces nitrogen and phosphate nutrients, plans to consume a portion of the potash itself to boost its output of complex fertilizers. Even as it bets on cost advantages such as proximity to a port to take on market leaders, the key to EuroChem’s success in potash could lie in the efficiency of suppliers such as K+S AG (SDF), Europe’s largest.

“While EuroChem’s projects are the only ones at an advanced stage in the industry globally, they’re more likely to take market share from high-cost producers like K+S than from low-cost producers like Uralkali,” ZAO Raiffeisenbank analyst Konstantin Yuminov said by phone.

Ring of Fire chief says Ontario breaching consultation agreement – by Kenneth Jackson (APTN National News – September 8, 2014)

September 8, 2014

http://aptn.ca/

Just a few months after announcing a framework to negotiate with northern Ontario First Nations to develop the Ring of Fire a “number” of chiefs are concerned the provincial government is failing to honour the deal by simultaneously working towards issuing exploration permits to mining companies, APTN National News has learned.

At least one of the nine Matawa First Nations involved in the talks has written the province asking them to stop the pending permits while talks are underway and without consulting them first.

“We strongly oppose the approach that your government has taken on this matter and would strongly advise that we sit down immediately…,” wrote Chief Peter Moonias of Neskantaga First Nation in this letter dated Sept. 5. “Failure to do so would be an unjustified infringement upon our Aboriginal, treaty and custodial rights.”

According to the letter [http://bit.ly/1wei1t7], the issuance of two exploration permits on Neskantaga land are pending that would allow mining companies to determine if the land is worth of an operational mine.

But Bob Rae, the negotiator for the Matawa First Nations, said Neskantaga isn’t the only First Nation with concerns. “A number of Matawa chiefs have already been in touch with the government directly,” said Rae in an interview with APTN.

U.S. ‘3rd world regulatory system’ stymies domestic mining projects – by Dorothy Kosich (Mineweb.com – September 8, 2014)

September 8, 2014

http://www.mineweb.com/

The U.S. mining permitting system “is a formula of inefficiencies, duplications and lack of capital,” suggests National Mining Association President Hal Quinn.

LAKE TAHOE, NEVADA (MINEWEB) – “Poor public policy is affecting (U.S.) mining across the board,” National Mining Association President Hal Quinn told the Nevada Mining Association convention over the weekend at Harrah’s Lake Tahoe.

“Public lands in this country are either off-limits or highly restricted to mineral development,” Quinn observed. To compound the growing deficit of mineral supplies in the U.S., domestic mining supplies only 50% of mineral needs in this country, he noted.

The most persistent challenge U.S. mining faces is a domestic regulatory bureaucracy that resembles “a third-world permitting system,” Quinn asserted. The regulatory bureaucracy is partly responsible for the decline of the global ranking of U.S. mining production to seventh.

The U.S. permitting system is “a formula of inefficiencies, duplications and lack of capital” in which it normally takes 7 to 10 years to permit a mine, Quinn suggested, observing that other countries with strong environmental ethics can permit a mining project within two to three years.

“Never mistake the length of review for [U.S. mining permit applications] for the rigor of the review,” Quinn said.

Philippine committee approves bill banning mineral ore exports – by Erik dela Cruz and Rosemarie Francisco (Reuters India – September 8, 2014)

September 8, 2014

http://in.reuters.com/

(Reuters) – A Philippine bill seeking a halt to exports of unprocessed mineral ores has been approved at the committee stage in the lower chamber of Congress, one of two bills aimed at extracting more value from the country’s mineral resources.

The measure will go next to a full session of the lower house of Congress for discussion and voting, but no schedule has yet been set, said Ronald Madrigal, staff to Congressman Erlpe John Amante who introduced the bill in July.

A counterpart bill has also been introduced in the upper house Senate by Senator Paolo Benigno Aquino, a first cousin of President Benigno Aquino. (To read the bill in full, click bit.ly/1pGeIoV)

The bills, which would require domestic processing of all minerals extracted in the country prior to export, have raised concern at the possibility of a halt to exports of nickel ore from the Philippines, in line with similar action by Indonesia.

London Metal Exchange nickel rose 1.7 percent in early European trade on Monday and have risen more than 7 percent since news of the potential Philippines ban was revealed last week.

Mt. Polley Debacle: BC Miles behind US on Mine Danger Info – by Sean Holman (The Tyee.ca – September 8, 2014)

September 8, 2014

http://thetyee.ca/

Public here barred from records freely available in US to help avert disasters.

British Columbia is one of the country’s biggest mineral producers. But compared to Americans, British Columbians have very little information about the safety and regulation of that activity.

And that means journalists, activists and citizens have very little power to stop mining problems before they become mining disasters.

Just such a disaster happened last month when the tailing dam at Imperial Metals Corp.’s Mount Polley Mine collapsed, resulting in a flood of concern and questions about safety at similar operations in the province.

In response to a request from Vancouver Sun reporter Gordon Hoekstra, the government released details on the 49 “dangerous or unusual occurrences” that were recorded as happening at tailing ponds in British Columbia between 2000 and 2012.

Earlier, it also released a summary of inspections at the Mount Polley mine. But a spokesperson for the Ministry of Energy and Mines confirmed the government “does not generally publicly post mine inspection reports or related information, including the dates on which they were conducted.”

The reason: such reports, which can be obtained via the province’s sometimes-lengthy and often frustrating freedom of information request process, “need to be reviewed for any personal and financial information before they can be released.”

Rise in intense rainstorms challenges B.C.tailing dams – by Stephen Hume (Vancouver Sun – September 7, 2014)

September 8, 2014

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

Provincial failure to properly regulate the design and operations of dams means more failures coming

The failure rate for mine tailings dams like the one at Mount Polley has been consistent worldwide at about one every eight months since 2001.

Lest anyone think that “worldwide” refers mostly to a problem in the developing world where impoverished governments can be co-opted to accept lower safety standards because they are desperate for tax revenue, a United Nations study found that 39 per cent of these failures were in North America.

The reasons for tailings dam failures vary from shoddy construction and use of inappropriate materials to seismic or other unavoidable environmental events. However, according to a 2010 survey of all the known tailings dam failures in the past century, most fail for two reasons.

The first is unusually heavy rains that overwhelm dams’ designed capacities. They account for 40 per cent of failures. The second is poor management and flawed regulatory oversight, responsible for 30 per cent of failures.

‘Best restaurant north of 60’: How mining companies use gourmet food, suite-style rooms to attract new recruits – by Katrina Clarke (National Post – September 8, 2014)

September 8, 2014

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

Prosciutto-wrapped asparagus, lemon pepper-dusted sea bass and beef tenderloin marinated in garlic, ginger and scallions are just a few of the delicacies Executive Chef Allan Bedard serves up nightly.

But the customers delighting in his meals aren’t foodies in downtown Toronto. They are hungry miners, up to 500 of them, eager to devour a meal after working a 12-hour shift underground.

“We have people who come to site, they don’t know what a mango is… They try to eat them like apples,” says Mr. Bedard, boasting that he rapidly expands both the palates and the waistlines of miners.

Gone are the days of cheap hot dogs, wilted vegetables and Spam. As mining companies compete to recruit and retain top workers, miners at fly-in fly-out mine sites in northern Canada are increasingly getting treated to gourmet-style food. Food costs at some mine sites can reach upwards of $20 million annually.

“We have the best restaurant north of 60,” says Dale Coffin, director of corporate communications with Agnico Eagle Mines Ltd. The “restaurant” is located at Agnico Eagle’s Meadowbank mine in Nunavut’s Kivalliq region, 170 kilometres south of the Arctic Circle.

The mine is a fly-in fly-out operation, with 50% of workers coming from Quebec and 30%from Nunavut. Most workers work a two-on, two-off shift, spending two weeks on site and then getting a two week break.

10 First Nations with more than 10 years of bad water – by Jody Porter (CBC News Thunder Bay – September 08, 2014)

September 8, 2014

http://www.cbc.ca/news/canada/thunder-bay

No safe drinking water in Neskantaga First Nation for nearly 20 years

Nearly half of the 133 First Nations in Ontario currently have boil water advisories, and it has been more than ten years since ten First Nations in northwestern Ontario had clean drinking water.

Neskantaga First Nation, in the James Bay lowlands, has the longest-standing boil water advisory. The community of about 300 people has been without potable water since 1995. “Twenty years of boil water advisory, yes, it makes me angry,” said Neskantaga First Nation Chief Peter Moonias.

“It makes me feel very angry for my people. They don’t have to live that way when there is a human rights law that is legislated in Canada,” he said. “Why should we live like this? We’re part of the human race also.”

Here’s the list of ten First Nations with boil water advisories issued more than ten years ago:

1995: Neskantaga First Nation
2000: Shoal Lake # 40 First Nation
2001: Eabametoong First Nation Issued
2001: North Spirit Lake First Nation Issued
2002: Northwest Angle #37
2002: Sandy Lake First Nation

Jackleg drill contest highlights mining expo in Sudbury – by Staff (Sudbury Star – September 7, 2014)

September 8, 2014

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

The North America Mining Expo will feature the newest in mining technology and equipment Wednesday and Thursday. But when it came to hard-rock mining decades ago, you couldn’t beat the jackleg drill for sheer utility.

The dexterity of some Sudburians and some visitors will be tested Wednesday at several jackleg drilling competitions being held the first day of the mining trade show at Hanmer Centennial Arena.

The first competition will get under way shortly after the 10:30 official opening of the show, which will feature more than 300 exhibits.

Mayoral candidates will face off against the media to see who can come closest to hitting the mark in large pieces of rock placed on the arena grounds.

Seven of the nine mayoral candidates had agreed to participate by Friday and show organizers, Canadian Tradex, were looking to contact and sign up an eighth candidate. The winner will take home a giant statue of a jackleg driller, courtesy of contest sponsor Boart Longyear Canada.

The more serious competitions will get under way about 1 p.m. with the world’s only Ladies’ Invitational Jackleg Competition (novices only). Ladies’ regional champion Tina Pellerin, of Aecon Mining in Timmins, will take on all-comers for the provincial title of Ontario Queen Jacklegger and cash awards.

PoV: Development corp. notice a yawn – by Brian MacLeod (Sudbury Star – September 7, 2014)

September 8, 2014

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

It’s no wonder the response to the Ontario government’s announcement that it has formed a development corporation to get moving on the Ring of Fire ranged from muted to headshaking. It was a case of watching a long, slow train running down a flat straight track; sooner or later it would get here, but what now?

The corporation, which the Kathleen Wynne government promised to set up within 60 days of being re-elected, has only an interim board of four senior public servants. No one from the federal government, no one from First Nations, no one from the mining industry.

The interim board, said Northern Development and Mines Minister Michael Gravelle, will help bring about a full corporation, which will then negotiate agreements, assist with exploration and most importantly, make key infrastructure decisions.

But back in May 2012, the Liberal government and Cliffs Natural Resources -then the lead player in the Ring -announced that at a smelter to process material from the deposit would be built near Capreol, promising about 500 jobs, and that a north-south all-weather road would be constructed to help move the material.

Cliffs -which was going to begin production by 2015 -has since faded from the picture, stopping its operations in the Ring, so the province’s decision to throw all its eggs in that company’s basket backfired. (There are about 100 companies operating in the area, though only about one third of them are active and a few are in a position to move on development.)

Goldcorp Inc CEO says gold price plunge to $900 would be an opportunity, not a disaster – by John Shmuel (National Post – September 6, 2014)

September 8, 2014

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

TORONTO — The chief executive of Goldcorp Inc. is not fretting over lower gold prices this year and says he would view any price declines as an opportunity to buy assets.

In an interview with the Financial Post on Friday, Charles Jeannes, president and CEO of Goldcorp, spoke about the company’s growth prospects in the next year.

Gold prices have steadily pulled back since 2011, when they reached a record intra-day price of US$1,909 an ounce. Prices for the precious metal closed Friday at US$1,268.81 an ounce.

“We’re a low cost producer and we’ve done most of the investing we need to to secure our future,” Mr. Jeannes said. “Building these new mines over the last four years, even if we see gold go down to US$900 — which I don’t think we will — we’d look for opportunities. Things come for sale at that price.”

In January, Goldcorp launched a $2.6-billion hostile bid to buy gold miner Osisko Mining Corp. Goldcorp raised that bid to $3.6-billion a few months later, but ultimately let the offer expire following the launch of a rival bid from Yamana Gold Inc. and Agnico Eagle Mines Ltd.

Mr. Jeannes said on Friday that despite the failed bid, he is not rushing to look for another large acquisition in its place.

Ontario’s Ring Of Fire Gets A Development Corporation As First Nation Objects – by Sunny Freeman (Huffington Post – September 5, 2014)

September 8, 2014

http://www.huffingtonpost.ca/news/staking-claim/

The First Nation band closest to the Ring of Fire says the Ontario government is failing to live up to promises it made to the community and has neglected to include First Nations in initial plans.

Webequie, a tiny isolated community, is taking issue with Ontario’s decision to create an economic development corporation and nominate board members — all four from government– without consulting other partners.

The Ring of Fire, a giant mineral deposit 540 kilometres north of Thunder Bay, became a hot topic during the Ontario election campaign this spring with opposition parties pointing fingers at the leading Liberal party for dragging its heels. Within weeks of their re-election the Liberals announced they would create an economic development corporation within 60 days.

Scrambling to fulfil that promise, the Grits announced the corporation’s creation Aug. 28. They also announced the first four board members would be government-appointed representatives, with those from First Nations and the mining industry to join later.

“The Province’s decision to unilaterally move ahead with the economic development corporation for the Ring of Fire is disappointing,” Chief Cornelius Wabasse said in a press release.

Canadian miners scrap over gold discovery after mega deal – by Allison Martell (Reuters U.S. – September 5, 2014)

September 8, 2014

http://www.reuters.com/

TORONTO – (Reuters) – On one side, the founder of top miner Goldcorp Inc, his young apprentice, an aggressive securities lawyer, and a tiny company based in a Quebec mining town. On the other, the chief executives of two leading Canadian gold miners, fresh off one of the biggest deals of their careers.

Some of Canada’s best-known mining executives are sparring over the early-stage but promising Odyssey gold discovery in Quebec, near Canadian Malartic, the country’s biggest gold mine.

The legal fight has its roots in the C$3.9 billion ($3.6 billion) takeover of Osisko Mining Corp, the mine’s builder, this year. Yamana Gold Inc and Agnico Eagle Mines Ltd teamed up to beat a hostile bid by Goldcorp, taking control of Canadian Malartic.

At the heart of the dispute is who, if anyone, will profit from Odyssey, one of Osisko’s assets. If early drilling results at the exploration site pan out, it could be a choice addition to the Canadian Malartic mine, extending its life.

Abitibi Royalties Inc, listed on Venture, the Toronto Stock Exchange’s market for small, growth companies says it was Osisko’s minority partner, and the deal has triggered its right to take control of part of Odyssey. Yamana and Agnico dispute that claim.

Exploration and Co-Operation: When Mining Companies and First Nations Work Together – by Thomas F. Morris (Huffington Post – September 29, 2013)

September 8, 2014

http://www.huffingtonpost.ca/news/staking-claim/

Thomas F. Morris is a geoscientist and CEO of Northern Superior Resources, a junior exploration company focused on potential gold deposits in Ontario and Quebec. http://www.nsuperior.com/Default.aspx

Since joining Northern Superior Resources in 2002 (formerly Superior Diamonds) as President and CEO, I have applied my strong belief that First Nations must be meaningfully consulted and actively engaged in exploration programs. These exploration programs, after all, take place in the back yards and across the traditional territories of Aboriginal communities where Northern Superior explores.

To respect the traditional land uses of these communities is absolutely essential. We actively strive to prevent disturbances to areas that are sacred to the community or where important community events occur. At the same time, it is also very important for First Nation communities to understand what exploration is all about and the limitations of a junior mining company.

Insufficient consultation can seriously impact an Aboriginal community’s rights, way of life, and culture in a negative and hurtful way. This is a reality the industry is at long last coming to understand. But where work is still required is in ensuring that Aboriginal communities understand the tremendous impact they can have on a junior exploration company.

If the community does not respect nor appreciate the positive intentions of the company as well as their financial reality, expectations become unmanageable and opportunities for progress disappear. Working together in a spirit of mutual respect and mutual benefit is not only the most practical approach to ensuring sustainable resource development, it is now the only way to conduct business successfully in Canada.