October 6, 2014 – Republic of Mining

NEWS RELEASE: NWT Government Releases Plan to Implement Mineral Development Strategy

October 6, 2014

(Yellowknife, NT – October 6, 2014) In a powerful statement to show that the NWT is “open for business”, the government of the NWT (GNWT) has unveiled NWT Mineral Development Strategy – GNWT Implementation Plan 2014-2015, its first annual plan to support the NWT Mineral Development Strategy with appropriate actions to ensure the continued growth of the NWT minerals industry.

According to Brooke Clements, President of the NWT & Nunavut Chamber of Mines, “This implementation plan lays out the first tangible actions that are designed to improve the investment climate for mining and exploration companies in the NWT. We are hopeful that these actions will help support the continued growth of the NWT mineral resource industry. A healthy and growing mineral industry will help ensure that sustainable and long-term benefits continue to accrue to all residents of the NWT.”

In his Minister’s Message, NWT Minister of Industry, Tourism and Investment David Ramsay stated, “Through a partnership effort with the NWT and Nunavut Chamber of Mines, we were proud to release the NWT Mineral Development Strategy in the fall of 2013.

This Implementation Plan puts that Strategy into action by establishing concrete goals, objectives, and timelines. Putting these initiatives in place will set the wheels in motion to restore a positive investment climate, which is important if we are to discover new deposits and establish new mines to sustain and grow our economy.”

Some highlights of the implementation plan include:

Glencore Said to Lay Groundwork for Potential Rio Merger – by Matthew Campbell, Anousha Sakoui and Dinesh Nair (Bloomberg News – October 6, 2014)

October 6, 2014

http://www.bloomberg.com/

Glencore Plc (GLEN) is laying the groundwork for a potential merger with Rio Tinto Group (RIO) in the next year that would create the world’s largest mining company, worth about $160 billion, according to people familiar with the situation.

As a preliminary step, Glencore has reached out to Aluminum Corp. of China, the Chinese state-backed company that is Rio’s largest shareholder, to gauge its interest in a potential deal, said two of the people, who asked not to be identified because the matter is private. The discussions with the company, which is known as Chinalco and controls about 9.8 percent of Rio, took place in recent weeks, one of them said.

Rio executives are well aware of Glencore Chief Executive Officer Ivan Glasenberg’s interest in a deal, which has been made clear in informal settings, the people said. However, no talks are underway between the two companies, no formal offer has been made, none is likely before the end of 2014, and Glencore could decide against an offer, they said.

Glencore views Chinalco as potentially supportive of a change in control after the Chinese company failed to secure a board seat at Rio and has seen little progress on a joint iron-ore project in Guinea, one of the people said. Glencore is also gauging the views of other Rio shareholders, and studying the tactical, financial, and regulatory obstacles to the deal as it considers its next steps, the people said.

Resources, Empire & Labour: Crisis, Lessons & Alternatives – Edited by David Leadbeater

October 6, 2014

To order a copy of Resources, Empire & Labour: Crisis, Lessons & Alternatives, click here: http://fernwoodpublishing.ca/book/resources-empire-and-labour

The interconnections of natural resources, empire and labour run through the most central and conflict-ridden crises of our times: war, environmental degradation, impoverishment and plutocracy. Crucial to understand and to change the conditions that give rise to these crises is the critical study of resource development and, more broadly, the resources question, which is the subject of this volume. Intended for researchers, students and activists, the chapters in Resources, Empire and Labour illuminate key aspects of the resources question from a variety of angles through concrete analyses and histories focused on the extractive industries of mining, oil and gas.

Natural Resources in Japanese Imperialism: The Yasuba Critique

To discuss the evidence on the role of natural resources in Japanese imperialism, a useful point of departure, despite many flaws, is Yasukichi Yasuba’s 1996 article “Did Japan Ever Suffer from a Shortage of Natural Resources Before World War II?” Yasuba challenges the resource-shortage explanation of Japanese imperialism.

According to Yasuba, proponents of the resource shortage view emphasize that Japan had a high population density and also suffered from a lack of natural resources. The situation became particularly acute in the 1930s with the rise of protectionism in the high-income countries to which Japan shipped many of its exports.

These features of the situation made it attractive for Japan’s leaders to pursue military expansion. By establishing political control over more territory, it could obtain more resources and it could create a trade bloc and thereby find markets for its exports, markets that would serve as alternatives to the markets of the other imperialist powers and their areas of control. The territories acquired could also provide an outlet for surplus Japanese population.

Campaign to World Heritage List Cornish mining sites gaining momentum – by Lauren Waldhuter (Australian Broadcasting Corporation – October 6, 2014)

October 6, 2014

http://www.abc.net.au/news/rural/

An international campaign to have South Australia’s Cornish mining sites World Heritage listed is gaining momentum. In the mid 1800s thousands of Cornish miners flocked to Burra in the state’s Mid North and shortly after to Moonta on the Yorke Peninsula to mine two of the largest copper deposits in the world, at that time.

Philip Payton, a professor of Cornish and Australian Studies from the University of Exeter in the United Kingdom, says the sites deserve global recognition by the United Nation’s heritage organisation (UNESCO).

Cornwall’s own mine sites are already World Heritage listed but Professor Payton says that only tells part of the story. “It’s not really complete until people recognise that actually there’s an international linking,” he says.

“That it’s a global story and if places like Burra and the copper triangle don’t feature in that somehow, the experience in Cornwall is diminished.”

It’s estimated 500,000 Cornish migrants left England between 1815 and the start of World War I, as the once booming mining industry on their home soil slowed down. But their advanced mining skills were an asset to other projects emerging all over the world. “They were cutting edge,” said Professor Payton.

New report finds mining industry poorly prepared for the demographic time bomb – by Will Coetzer (Stratum International – October 3, 2014)

October 6, 2014

http://www.stratum-international.com/

Stratum International’s latest research report suggests the mining industry recognises the threat of forthcoming demographic changes but is not well-prepared for the potential impact on future leadership. The reasons are complex and sometimes it’s about short-term survival rather than complacency. But those who can should start to prepare now.

The Demographic Time Bomb in Mining, published today (3 October 2014) is a new research report from Stratum International, based on the results of a survey of more than 900 mining professionals. The report considers the impact of forthcoming demographic changes in the industry from the perspective of leadership and succession strategies, and finds the sector has work to do to secure the next generation of leaders.

Several respondents made the point that for some firms – particularly juniors and mid-tiers, short-term survival is the priority in the current economic environment. So it is unsurprising that long-term leadership needs are not currently troubling them.

Even taking this into account, the findings suggest more could be done in many companies to ensure the leadership of the organisation will be in safe hands in the future. In fact only 1% of the 900 respondents believe the mining industry is well prepared for the demographic changes ahead.

Nearly four fifths believe the industry is completely or somewhat unprepared. This rises to nearly nine out of ten of board executives, who arguably have the most power to put appropriate plans in place.

Glencore CEO Slams BHP’s Iron-Ore Plan – by Alexis Flynn (Wall Street Journal – October 6, 2014)

October 6, 2014

http://online.wsj.com/home-page

Ivan Glasenberg Claims Expanding Output Will Hurt One of Africa’s Poorest Countries

LONDON— Glencore PLC Chief Executive Ivan Glasenberg on Monday criticized rival miner BHP Billiton PLC, saying its plans to further expand iron-ore output will hurt the development of one of Africa’s poorest countries.

Mr. Glasenberg said the huge amount of iron-ore being produced by the world’s three biggest miners Vale SA, Rio Tinto PLC and BHP Billiton, was already having a clear impact on prices, and that further expanding output, as BHP Billiton said on Monday it intends to do, would make investing in African iron-ore a less appealing prospect.

“If you look at the statement put out today by BHP Billiton, one of the world’s biggest iron-ore producers, saying they are going to expand production—it has already had an impact on prices—that is going to hurt Africa,” said Mr. Glasenberg, who was addressing a panel discussion in London.

Iron-ore prices have plunged 41% this year to below $80 a ton, their lowest level since 2009, exacerbated in large part by the world’s three top iron-ore miners ramping up production in the hope that they can profit from economies of scale.

First Nations chiefs seek to develop new tribal park in B.C. – by Mark Hume (Globe and Mail – October 6, 2014)

October 6, 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.

VANCOUVER — The concept of what a park is and how it functions to protect the landscape is being redefined in British Columbia by First Nations in ways that some might find surprising.

At a totem pole-raising ceremony on the weekend, the Tsilhqot’in First Nation announced plans to create Dasiqox Tribal Park, the latest in a series of declarations by native organizations aimed at protecting massive swaths of territory.

Dasiqox covers about 300,000 hectares of some of the most spectacular landscapes in Canada. The Valhalla Wilderness Society, which has long advocated protecting the area, describes it as “a vast mountain enclave for grizzlies” and other wildlife.

Unlike federally designated national parks and provincial enclaves, the First Nations concept in B.C. aims to create protected areas under the jurisdiction of native people, with potential room for resource extraction. While not new, these parks allow First Nations to control logging, mining and other activities in a particular region, which might otherwise be open to unfettered use by business.

In a series of interviews, Tsilhqot’in chiefs made it clear that their idea of what a park is, is very different from what most Canadians might think.

COLUMN-Time to buy commodities? Maybe, but not the old ways – by Clyde Russell (Reuters U.K. – October 6, 2014)

October 6, 2014

http://uk.reuters.com/

LONDON, Oct 6 (Reuters) – Crazy or brave? That might be the most logical thought if anybody told you now was a good time to invest in commodities, given the sharp declines in the main indexes in the past few months.

But that’s exactly what the overwhelming majority of fund managers and bankers were advocating at last week’s World Commodities Week conference in London.

Their optimism was in contrast to the clutch of analysts who presented at the meeting, who generally reinforced the current bearish theme by pointing to softness in demand in top importer China, as well as plentiful supply for many commodities.

The fund managers and bankers do have more than just blind optimism (and a desire for fresh funds to manage), and can point to a raft of reasons why they believe prices are near a bottom.

But the question remains as to who has the most compelling argument, and whether institutional and other major investors are prepared to buy into an asset class that most would view as having a disappointing recent track record.

While commodities had a good start to the year, outperforming equities, they have since struggled, with the Bloomberg Commodity Index down 13.2 percent from its 2014 peak in late April, and the S&P GSCI 14.9 percent weaker from its June high.

US warns Zimbabwe over US$3bln Russia deal – by Staff Reporter (New Zimbabwe – October 3, 2014)

October 6, 2014

http://www.newzimbabwe.com/index.aspx

THE United States has reportedly warned Zimbabwe about its growing economic dealings with Russia after Harare recently sealed an agreement with Moscow for a US$3 billion platinum mine.

According to Herald columnist Nathaniel Manheru, who is thought to be President Robert Mugabe’s spokesman George Charamba, the Obama administration threatened further sanctions against Zimbabwe over its ties with Russia.

Manheru’s claims could not be verified with the US embassy in Harare late Friday night. The US has imposed sanctions against Moscow, tightening restrictions on major Russian state banks and corporations, after accusing the Kremlin of providing military backing to Ukrainian separatists and generally destabilising the region.

Zimbabwe’s Pen East Investments has teamed up with Afronet, a consortium of three Russian partners, to form Great Dyke Investments, which is developing the US$3 billion Darwendale platinum project.

At full development in 2024, the mine will produce 800,000 ounces of platinum, pushing Zimbabwe’s output over one million ounces, and create 8,000 jobs.

B.C. signed-off on tailings dam repair after fissure found in 2010 – by Justine Hunter (Globe and Mail – October 5, 2014)

October 6, 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.

VICTORIA — The owners of the Mount Polley mine say a crack in their tailings dam found in 2010 was almost a kilometre away from the spot where the dam containing toxic waste failed this summer, and the company “fully complied” with a series of recommendations to improve safety in response to that initial fissure.

But NDP Leader John Horgan is calling for the release of technical documents to show just what the company and the province knew about the safety of the dam prior to the Aug. 4 breach in the dam that flushed 24 million cubic metres of water and mine tailings into Quesnel Lake in central B.C.

The last geotechnical inspection by the ministry of mines at Mount Polley took place in September of 2013 and resulted in no orders related to the tailings storage facility, according to ministry officials.

The government has not opened its inspection files, saying it must “protect the integrity and independence” of an independent engineering investigation and inquiry into the tailings pond breach that is expected to be completed in January.

“The most horrific environmental disaster in B.C.’s history wouldn’t have happened if everything was fine,” Mr. Horgan said Sunday. “They are trying to say everything that could be done, was done, but they won’t release the documents to show what they did.”

UPDATE 3-BHP aims to slash iron ore costs to become cheapest supplier – by Silvia Antonioli and Sonali Paul (Reuters India – October 6, 2014)

October 6, 2014

http://in.reuters.com/

LONDON/MELBOURNE, Oct 6 (Reuters) – BHP Billiton aims to cut its iron ore production costs by more than 25 percent and squeeze more tonnes from its mines as it aims to overtake rival Rio Tinto as the world’s cheapest producer, the world’s largest miner said on Monday.

BHP, the No. 3 iron ore producer behind Brazil’s Vale and Rio Tinto, outlined the cost-cutting and expansion plan even as iron ore prices have slumped 42 percent this year, as it sees demand picking up over the medium term.

“We will continue to squeeze the lemon because at the end of the day it’s just so value accretive,” Jimmy Wilson, the head of BHP’s iron ore division, told reporters in a video conference ahead of an analyst tour of its West Australian mines.

Miners’ focus has shifted to cost cutting as iron ore prices have dropped from about $190 a tonne in 2011 to less than $80 now, sinking to five-year lows as supply growth from the mega producers has exceeded demand growth by more than two to one.

BHP said it aims to cut production costs, excluding freight and royalties, to less than $20 a tonne in the medium term, from $27.50 for financial year 2014. That compares with Rio Tinto’s cash cost of $20.40 a tonne in the first half of 2014.

“The name of the game in the past was volume above and before everything else. Now cost is much more important and we are finding a lot more opportunities,” Wilson said.

NDP critic knocks Liberals over Ring of Fire – Michael Mantha Letter to the Editor (Sudbury Star – October 4, 2014)

October 6, 2014

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

Michael Mantha is the MPP for Algoma-Manitoulin and the NDP Critic for Northern Development and Mines.

Re: Minister defends record on Ring of Fire

Northern Development and Mines Minister Michael Gravelle’s letter to the editor criticizing NDP Leader Andrea Horwath on the Ring of Fire demonstrates the Liberal government’s failure to develop the project and Premier Wynne’s lack of leadership for Northern Ontario.

The minister claims his government is leading the way to drive development in the Ring of Fire and that significant progress has been made despite his government’s widely reported failures on the project. Ask Northerners what they think about the Liberal record on Ring of Fire.

After lack of action on the Ring of Fire over the last seven years and a vague announcement of creating a development corporation, the Wynne government gave itself a deadline of 60 days to create that corporation that was to include partners in industry and First Nations. What the Wynne government produced, in order to meet its self-imposed deadline, was a board comprised of four government bureaucrats sitting at the table by themselves.

The Wynne government failed to bring industry together. Premier Wynne and Minister Gravelle failed to bring First Nations together.

Ontario Premier Wynne Mandates Environmental And Energy [and Ring of Fire] Priorities – by Marc McAree and Julie Abouchar (Mondaq.com – October 6, 2014)

October 6, 2014

http://www.mondaq.com/

Willms & Shier Environmental Lawyers LLP

Ontario Premier Kathleen Wynne released mandate letters to her cabinet ministers on September 25, 2014, outlining key priorities for each ministry. Premier Wynne’s marching orders include many environmental and energy priorities. Key environmental priorities relate to climate change, waste diversion and reduction, pollution prevention, drinking water quality for First Nations and invasive species. Notable among the Premier’s energy priorities are protecting Ontario’s interests in pipelines and advancing renewable energy policies.

Environmental Priorities

Climate Change – the Ministry of Environment and Climate Change (MOECC) will lead the development of a new long-term climate change strategy for the province in 2015 that will look forward to 2050 and contain an action plan to achieve greenhouse gas (GHG) reduction targets for 2020. MOECC will work with other key ministries such as the Energy, Transportation and Natural Resources and Forestry, amongst others to implement the strategy and achieve targets. Other climate change efforts identified in the mandate letter include public and stakeholder engagement on climate change, developing a Canadian Energy Strategy that includes coordinated GHG emission reduction efforts, and developing new alternative fuel rules later this year to help energy-intensive industries reduce GHG emissions.

Pollution Prevention and Responsibility – the MOECC will place greater emphasis on pollution prevention and the “polluter pays” principle, focusing first on contaminated sites. Premier Wynne also encourages the MOECC to review the legislative framework to ensure a comprehensive approach to hold polluters responsible for decisions affecting the environment.