October 2, 2014 – Republic of Mining

Supply a critical issue for suitors of Nickel West – by Tess Ingram (sydney Morning Herald – October 3, 2014)

October 2, 2014

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

Possible buyers for BHP Billiton’s Nickel West business are scrutinising the sector’s junior miners as they weigh up the potential for long-term supply for one of its key assets, the Kalgoorlie smelter.

The sale of the Nickel West business has been under way for some months and industry sources suggest interested buyers have been narrowed down to resources giants Glencore and Jinchuan Group.

Any buyer of the West Australian assets would have to work with local nickel producers to secure supply for the smelter, which has run about 10 per cent under capacity and at a high cost for BHP, with industry suggesting that either a secure offtake agreement or an acquisition of a local player is highly likely.

Fingers appear to be pointing towards both Western Areas and Sirius Resources due to the quality of their nickel concentrate and their relative freedom to sign a deal.

Western Areas managing director Dan Lougher confirmed that the company had been in talks with prospective buyers, including Glencore and Jinchuan, but had not yet been approached in regards to an acquisition.

Canadian coal mine Grande Cache sold for US$2 amid plunging bulk commodities demand – by Peter Koven (National Post – October 2, 2014)

October 2, 2014

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

The value destruction in the bulk commodities business has been astounding in the last few years and no one knows it better than Asian commodity traders Marubeni Corp. and Winsway Enterprises Holdings Ltd.

Back in 2011, they teamed up to buy Canadian miner Grande Cache Coal Corp. for $1-billion. Grande Cache was the only pure-play coal producer left in Western Canada, and the buyers saw an opportunity to secure a big source of supply in a mining-friendly country.

It turns out not to have been such a wise decision. Marubeni and Winsway are now planning to sell their Grande Cache stakes to an Asian coal firm called Up Energy. Unfortunately for their shareholders, the proposed sale price is a bit less than they paid: US$1. Each.

In a coal market as bad as this one, US$2 may not be such a bargain given the problems the buyer is inheriting.

“When you buy a coal company today, the cash outflows don’t stop when you close the deal,” said George Dethlefsen, chief executive of Corsa Coal Corp. “Even if the buyer is paying a dollar, they may need a good amount of money in reserve to sustain the company over the next 12 to 24 months.”

In depressed platinum market, Amplats struggles to go solo – by Clara Denina and Silvia Antonioli (Reuters U.K. – October 1, 2014)

October 2, 2014

http://uk.reuters.com/

LONDON, Oct 1 (Reuters) – Less than a year after tearing up a $57 million annual supply contract with its main buyer, Anglo American Platinum is struggling to implement a new strategy of selling directly to end-users against a backdrop of weak prices, sources say.

The world’s top platinum producer, known as Amplats , late last year ended a long-standing deal through which it had sold the bulk of its output at a discount to refiner Johnson Matthey, in exchange for marketing.

The idea was to make more money by cutting out the middleman, going direct to traders and carmakers and seizing profit opportunities by financing or lending metal and arbitraging different locations and grades.

To achieve that, the company, which mines platinum in South Africa and Zimbabwe, expanded marketing and sales teams in London and Singapore.

Amplats’ parent company Anglo American, whose portfolio spans iron ore, thermal coal, nickel and copper, is also undergoing a big overhaul as it tries to improve returns after years of underperformance compared with its peers. It has made a series of high-ranking personnel changes within its wider commercial department, hoping to boost the division’s earnings by $400 million by 2016.

Stainless Steel and the Ring of Fire – by Rick Millette (Northern Policy Institute – October 1, 2014)

October 2, 2014

http://northernpolicy.wordpress.com/

It would be hard to find an adult in Northern Ontario who hasn’t heard of the Ring of Fire or doesn’t know what it promises for the North’s future. Most believe that long term prosperity for workers, industry and First Nations people is at their doorstep.

That dream extends beyond the basics. Many northerners suffer a sense of loss with every trainload of raw ore they see heading down the tracks and out of Northern Ontario. There’s a long-held belief that full value is not being retained for those resources.

With the discovery of chromite in the Ring of Fire several years ago, it didn’t take long for the value-added dream to be dreamt again. The North now has all the ingredients in their backyard to make stainless steel, a uniqueness not found anywhere else in the world. How incredulous would it be for Canada to be the only G8 country not to have a stainless steel industry when the chromite, nickel and iron are all in one place?

Although the timeline for the eventual development of the Ring of Fire may be unknown, few would believe that $60-billion of known mineral wealth will stay in the ground for very long.

One way to accelerate that extraction and to start generating wealth on three fronts, would be for our governments to invest in the development of a stainless steel industry.

Arizona judge recommends Curis’ Florence aquifer permit be rescinded – by Henry Lazenby (MiningWeekly.com – October 1, 2014)

October 2, 2014

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

TORONTO (miningweekly.com) – Despite explicitly stating facts to the contrary, Arizona administrative law judge Diane Milhasky on Wednesday recommended that the Arizona Department of Water Quality (ADEQ) rescind a temporary individual aquifer protection permit (APP) granted to Florence Copper, the proponent of the in-situ copper recovery, solvent extraction and electrowinning (SX-EW) Florence copper project.

The judge made a nonbinding recommendation in the appeal of ADEQ’s decision to issue an APP to Florence Copper during July last year, which would be submitted to the Water Quality Appeals Board (WQAB) to make the final determination on the permit.

The town of Florence, legal representatives, Johnson Utilities and Pulte Home Corporation filed an amended notice of appeal with the WQAB to appeal the ADEQ’s issuing of the temporary APP to Florence Copper’s parent, Curis Resources.

In her recommendation, Judge Milhasky noted that Florence Copper’s proposed production test facility (PTF) would not have any impact on the drinking water wells in Florence, nor would it impact the wells owned and operated by Johnson Utilities located north-west of the project.

Judge upholds 20-yr Grand Canyon mining ban – by Dorothy Kosich (Mineweb.com – October 2, 2014)

October 2, 2014

http://www.mineweb.com/

U.S. District Judge David Campbell says no legal authority exists to overturn 1 million-acre land withdrawal near the Grand Canyon.

RENO (MINEWEB) – U.S. District Judge David Campbell has upheld the U.S. Department of Interior’s 20 year-ban on exploration and development of uranium mining claims on 1 million acres near the Grand Canyon National Park.

The withdrawn land includes a north parcel of 550,000 acres, an east parcel of 135,000 acres, and a south parcel of 322,000 acres. Only the mining of a few existing claims will be permitted.

Plaintiffs in the case included the National Mining Association and the Nuclear Energy Institute, the Arizona-Utah Local Economic Coalition, Quaterra Resources, and an individual, Gregory Yount, with interests in uranium mining. Motions for summary judgment were filed by Plaintiffs American Exploration & Mining Association and Yount.

Defendants included the U.S. government, the Center for Biological Diversity, the Grand Canyon Trust, Havasupai Tribe, National Parks Conservation Association and the Sierra Club.

Minister defends record on Ring of Fire – Letter to the Editor (Sudbury Star – October 2, 2014)

October 2, 2014

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

Re: “’Nothing done on Ring” and “Ontarians have had it with Liberal inaction in Ring of Fire: Horwath,” Sudbury Star/Sun News, Sept 29, 2014

It is troubling to hear a leader of a major political party in Ontario speak with such a lack of understanding of the steps required in developing the Ring of Fire. What is specifically troubling, is that (NDP leader Andrea) Horwath does not seem to understand the complexity of this major economic opportunity for our province or respect the important work we have undertaken before ore extraction can actually begin.

Our government is leading the way to drive development in the Ring of Fire. There is no question that over the past year, significant progress has been made. We have provided a $1-billion commitment to develop transportation infrastructure in the region; established a Ring of Fire Infrastructure Development Corporation within 60 days of forming our new government; and reached a historic agreement with the Chiefs of the Matawa Tribal Council that lays the groundwork for future discussions. Our government is proud of the work that we have accomplished so far.

Let me be clear, Ontario Liberals have been — and remain — committed to developing the Ring of Fire and working with First Nation communities as partners, to ensure they have the opportunity to shape and provide input as development moves forward.

Reform essential for WA’s future success – by Kevin Skinner (Australian Mining – October 2, 2014)

October 2, 2014

http://www.miningaustralia.com.au/home

Kevin Skinner works with Field Public Relations.

The government agency charged with driving the reform of Western Australia’s $121 billion a year resources industry says it is essential that the current reforms within the sector continue – and in close consultation with the industry – if the sector is to emerge successfully from the current easing in mineral commodities demand and pricing.

Addressing the Paydirt 2014 Australian Nickel Conference in Perth today, the Director General of WA’s Department of Mines and Petroleum, Richard Sellers, said it was essential however, that any reforms did not add to the cost of doing business in Western Australia, nor detracted from its appeal as a destination for global investment in exploration and mining.

“One of the most successful outcomes to date of our reform is the slashing of the tenement titles approvals processes and backlog to its best level in more than two decades,” Sellers said.

“When you consider there are more than 22 000 active mineral titles operating in Western Australia covering an area of almost 550 000 square kilometres, or just over one fifth of the State’s land mass, the Department’s moves to cut the backlog of outstanding titles applications have seen this drop from more than 18 000 in 2007 to just over 4000 today,” he said.

Agnico has room to grow in Quebec (Northern Miner – October 1, 2014)

October 2, 2014

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Agnico Eagle Mines (TSX: AEM; NYSE: AEM) has grown over the past two decades from a single asset producer to a mid-tier gold miner, with mines spread across Quebec, Nunavut, Finland and Mexico. But its four gold mines strung out along a 50 km stretch of the Trans-Canada Highway in Quebec’s Abitibi region remain the heart of the Agnico beast, and show significant upside.

The biggest shakeup for Agnico this year has been its joint acquisition with Yamana Gold (TSX: YRI; NYSE: AUY) of Osisko Mining and its Canadian Malartic gold mine in Malartic, halfway between Rouyn-Noranda and Val-d’Or. The deal gave Agnico 50% of the mine, which ranks as one of the largest gold mines in Canada, and produced 475,000 oz. gold and 422,000 oz. silver in 2013.

Canadian Malartic yielded 11,878 oz. gold attributable to Agnico in the first half of 2014 (representing only 15 days of ownership at the end of June), at a total cash cost of US$614 per oz.

A new reserve estimate was recently calculated, and the partners expect to update mine-optimization plans this month.

Speaking at the Denver Gold Forum in September, Agnico president and CEO Sean Boyd said the transition has “gone well,” and that the acquisition “gives us big reserves, big production and good net free cash flow in a part of the world we know really well.”

NEWS RELEASE: “Stones of Shame” returned to IOC/Rio Tinto: Innu First Nations demand that IOC/Rio Tinto pay its rent

October 2, 2014

MONTREAL, Oct. 1, 2014 /CNW Telbec/ – In a historically symbolic gesture, the Innu First Nations of Uashat mak Mani-utenam and Matimekush-Lac John returned two enormous iron ore stones from the mining pits of the Iron Ore Company of Canada (IOC), majority owned by the mining giant Rio Tinto, to IOC/Rio Tinto’s head office (1000, Sherbrooke Street West in Montreal, Quebec). The stones were erected in the Innu communities of Uashat and Mani-utenam in September 1970 to mark 100 years since the discovery of the rich deposits of iron ore in the Schefferville area, which deposits were mined by IOC as of 1954. This act, intended both to heal and to send a message, kicks off a campaign themed “IOC/Rio Tinto must pay its rent” which aims to denounce the violation of the Innu’s rights by IOC/Rio Tinto, particularly its refusal to negotiate a fair economic agreement.

“These stones represent the only thing we have ever received from all of IOC/Rio Tinto’s mining developments on our lands. Our peoples have yet to receive any revenue, compensation, indemnity or royalties whatsoever from IOC/Rio Tinto. We have already reached agreements with all of the other iron ore mining companies, four in total, in our territory, yet the one that was the first to move into our territory and the one which caused us the most harm, IOC/Rio Tinto, is the last one without an agreement with us – the true owners of the land. As a result, we wish to return to IOC/Rio Tinto these “stones of shame” to send a message that the era when companies like IOC/Rio Tinto could profit from our resources all the while ignoring us is over”, stated Mike McKenzie, Chief of Uashat mak Mani-utenam.

It is worth remembering, that as of 1954, IOC/Rio Tinto operated twenty mines in the Schefferville area before abandoning them (while savagely destroying the city of Schefferville) in 1982 and that the company continues to operate nearly ten iron ore mines on the territory of the Innu of Uashat mak Mani-utenam and of Matimekush-Lac John in the area of Labrador City.

Canada rejects UN resolution on native rights – by Michael Swan (The Catholic Register – October 1, 2014)

October 2, 2014

http://www.catholicregister.org/

The Canadian Conference of Catholic Bishops may have to re-fight a battle with the federal government over the United Nations Declaration on the Rights of Indigenous Peoples.

On Sept. 22 Canada became the only country to object to a draft resolution to the UN General Assembly asking countries to do more to achieve aboriginal rights. The Department of Foreign Affairs Trade and Development (DFATD) said the UN document — from the World Conference on Indigenous Peoples and submitted to the president of the UN General Assembly — “cannot be reconciled with Canadian law, as it exists.”

The Canadian representatives at the UN argued that “free, prior and informed consent” to development that affects indigenous land — whether mining, logging, hydro-electric dams or others — could be interpreted as a “veto” and is therefore inconsistent with Canada’s Constitution and undermines the supremacy of Parliament.

Canada made the same objections when the UN adopted its Declaration on the Rights of Indigenous Peoples in 2010. At that time Canada’s bishops found themselves among many groups urging the federal government to rethink its position.

The government eventually said it supported the UN Declaration as “an aspirational document,” while maintaining its reservations about aboriginal consent for development.

Vale Canada Limited fined $150,000 for workplace safety conviction in connection with death of T-3 scooptram operator Greg Leason – by John Barker (Soundings John Barker.com – October 1, 2014)

October 2, 2014

http://soundingsjohnbarker.wordpress.com/

Vale Canada Limited has been fined $150,000 in provincial court in Winnipeg and ordered to pay $37,500 in a victim surcharge after pleading guilty June 18 in a previously unreported decision to one count of failing to ensure the safety, health and welfare of all workers, contrary to The Workplace Safety and Health Act, in connection with the death of 51-year-old T-3 scooptram operator Greg Leason at Manitoba Operations in Thompson almost three years ago.

Vale was charged last Oct. 3. The Leason case marked the first time Vale, or its predecessor, Inco, had been charged by the province in connection with a mining fatality since mining began in Thompson,

The charge upon which Vale was convicted and nine other charges laid against Vale by Manitoba Labour and Immigration’s Workplace Safety and Health Branch, also under The Workplace Safety and Health Act, in connection with the the death of Leason, which were ordered stayed, all listed an offence date of Oct. 7, 2011, the date of the accident.

While stayed charges technically can be re-activated within one year of the day they are stayed by the prosecution, in practice they almost never are, unless the accused is charged with new offences during the one year period after the original charges have been stayed. When charges are withdrawn instead of stayed, the prosecution of those charges is finished immediately.