October 27, 2014 – Republic of Mining

Press Release: Ultra-Deep Mining Network issues Pan-Canadian Call for Proposals

October 27, 2014

Sudbury, ON (October 27, 2014) – Canada’s Ultra-Deep Mining Network (UDMN) is pleased to announce a Pan-Canadian – Call for Proposals for its Think Deep Program.

This $46 million business-driven network, managed by the Centre for Excellence in Mining Innovation (CEMI) aims to become the leading expert in ultra-deep (below 2.5km) research and innovation and to solve the challenges that impact resource extraction in these environments. Recognizing the importance of deep mining, earlier this year, the federal government’s Business‐led Networks of Centres of Excellence (BL‐NCE) program awarded $15 million to Ultra-Deep Mining Network.

This program aims to support solution-providers capable of creating the industry-needed tools and technologies that will help ultra-deep mines (below 2.5kms) to operate more effectively and safely, generate more value, improve the human environment and enhance mine productivity in the short term.

Working to amplify and expedite commercial value and enhance ultra-deep mining innovations in Canada and beyond, this program is intended to help the mining industry accelerate research and development, increase investment in R&D and/or deploy proven innovative and advanced technologies. This program is not intended to support fundamental research, but rather apply new forward-looking technologies to mining at depth.

[Ontario] Province must build RoF road – Editorial (Thunder Bay Chronicle-Journal – October 27, 2014)

October 27, 2014

Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

National media coverage on the Ring of Fire has been of the doom-and-gloom variety of late, but that doesn’t mean the province should throw in the towel on the idea for a main access road into the remote mineral rich zone.

Not surprisingly, in the wake of falling metal prices right across the globe, pundits and mining industry analysts have been questioning the RoF’s value. Maybe it’s not that rock-solid after all, the thinking goes.

But surely that thinking is flawed. It’s hardly a shock to discover that when mineral prices fall and stock values plummet, companies are no longer in a position to fork out the enormous upfront costs of building new mines.

Not until a mine is up and running is its proponent in a position to make operational changes, including temporary shutdowns, to ride out the industry’s inevitable ups and downs.

A few years ago, North American Palladium wisely shut down its Lac des Iles mine north of Thunder Bay when the price of palladium plunged. It restarted the operation when the price came back up, casting the views of cynics aside.

Fortunes can also lead the other way. Some may remember when Inmet Mining caved on a major expansion at its former Schreiber zinc mine after prices for that mineral crashed. But none of that means the province should abandon a sensible plan to build a main access road into the James Bay lowlands.

Russian Mining Tycoons Seek to Trim Debt as Sanctions Sting – by Yuliya Fedorinova and Alex Sazonov (Bloomberg News – October 27, 2014)

October 27, 2014

http://www.bloomberg.com/

Russia’s mining billionaires are starting to feel the sting of economic sanctions.

Mikhail Prokhorov, whose investment empire stretches from the world’s largest aluminum maker to the Brooklyn Nets basketball team, recently explored whether fellow oligarchs, including Vladimir Potanin, were willing to buy a portion of his $2.7 billion stake in potash miner OAO Uralkali, two people familiar with the matter said. The reason: the sinking value of his Russian holdings means he’d like less debt and more cash, they said.

While Prokhorov aborted the plan after failing to get the price he wanted, it’s the latest example of the pressure on Russia’s commodity magnates as sanctions hit the economy at home and a global slowdown undercuts metals demand. Billionaires including Alexey Mordashov, who controls steelmaker OAO Severstal (SVST), and Potanin, the biggest shareholder in OAO Norilsk Nickel, have increased dividends from their businesses after selling some assets.

“Whenever you hear billionaires say they are not affected by sanctions and the general situation in Russia, that’s not quite true,” said Yulia Bushueva, who helps to manage about $500 million at Arbat Capital in Moscow. “It’s natural that they are looking at options to cut the debt. Others just want to get some extra cash in the current situation.”

Column – India, Indonesia take different, but similar coal paths – by Clyde Russell (Reuters India – October 27, 2014)

October 27, 2014

http://in.reuters.com/

LAUNCESTON, Australia – India, poised to become the world’s largest importer of thermal coal, appears to be opening up its domestic mining sector to foreign competition just as Indonesia, its biggest supplier, is making it harder for exporters.

On a superficial level it appears that India and Indonesia are choosing different paths for their coal sectors, but the policies being pursued by the countries’ new, reform-minded leaders may have more in common than first appearances suggest.

India may allow foreign companies to mine coal, as long as they set up units in the country, Reuters reported on Oct. 22, citing a source familiar with the matter.

This would be a major change for the South Asian nation, which has the world’s fifth-largest coal reserves but suffers from ongoing shortages because of inefficiencies across the mining, transportation and distribution chains.

Coal mining has been dominated by state-controlled Coal India, which consistently fails to meet targets for production and supply. What private mining existed in India was thrown into chaos recently by court rulings that found the allocation of coal blocks by the previous government had been illegal, and that these areas would be returned to the state and Coal India.

Analysis Iron ore and rare earth metals mining: an industry under siege? – by Wayne Visser (The Guardian – October 24, 2014)

October 27, 2014

http://www.theguardian.com/us

Resource scarcity and human rights issues surrounding metals extraction, coupled with unrelenting global demand mean the industry is facing some tough realities

The good news: the number of people living in extreme poverty could drop from 1.2 billion in 2010 to under 100 million by 2050, according to UN projections. The bad news is that the flotilla of hope currently rising on the tide of economic growth in emerging countries is at serious risk of being dragged down under the waves. The reason is growing resource scarcity and the environmental disasters that could ensue.

As always, the poorest will be worst affected. The UNDP projects that, under an environmental disaster scenario, instead of reducing the population living in extreme poverty in south Asia from over half a billion to less than 100m by 2050, it could rise to 1.2bn. In sub-Saharan Africa, the numbers may rise from under 400m to over a billion. For the world as a whole, an environmental disaster scenario could mean 3.1 billion more people living in extreme poverty in 2050, as compared with an accelerated development scenario.

The message is simple: unless these booming economies – and the high-income countries they churn out ‘widgets’ for – can lighten the weighty anchor of resource consumption, we will all, sooner or later, get that sinking feeling. To illustrate the point, demand for steel – driven in no small part by a global car fleet doubling to 1.7bn by 2030 – is expected to increase by about 80% from 1.3bn tonnes in 2010 to 2.3bn tonnes in 2030. These trends raise red flags about material shortages of many metals in the future.

A Kingdom of riches: Saudi Arabia looks to strike it rich with mining sector – by Adam Leach (Mining Technology – October 23, 2014)

October 27, 2014

http://www.mining-technology.com/

While Saudi Arabia remains the world’s largest petroleum producer, the prospect of US shale gas eating into its dominance of the energy export market has highlighted a need for it to diversify its economy. Having already established itself in the gold market, the kingdom is now setting its sights on ruling the copper, zinc and phosphate markets.

The history of mining in the Kingdom of Saudi Arabia stretches back thousands of years. The first record of it has been dated to 2100 BC, while carbon dating has shown that operations at Madh Ad Dahab mine were underway at around 1000 BC. Archaelogists have claimed that a copper mine was generating revenue for King Solomon in the 10th century BC. But despite its early rising in the development of mineral extraction, resources in Saudi Arabia have remained relatively untapped.

Controlling around a quarter of the world’s reported petroleum reserves, Saudi Arabia has been under little pressure to exploit other resources it may have access to, with the ever growing global demand for oil enabling the country to get richer and richer.

However, over the past decade the globalisation of oil exploration, an increase in climate change pressure and an influx of US shale gas and oil to the market have served to slightly ease the monopoly of Saudi Arabia and its fellow OPEC members. In response to recent reports that US exports would reduce demand for Saudi oil, the kingdom announced that it would be cutting production to 400,000 barrels per day, the lowest since 2011, in order to preserve the current price of $100 per barrel.

Aboriginal rights: A simple matter of rights denied – by Jim Coyle (Toronto Star – October 26, 2014)

October 27, 2014

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

“People went into the Ring of Fire under the old idea that they could get what
they wanted under the old terms. And it turns out that under the new terms it’s
going to be done differently. This is the shifting of power, just as the pipeline
story is the shifting of power. Suddenly, people are realizing that they can’t get
those pipelines without the aboriginals. That’s real power. This is not the same
Canada.” (Public thinker John Ralston Saul)

If the biggest favour one human being can do another is to speak the truth, especially when that truth is uncomfortable to hear, then Canadians probably owe John Ralston Saul a collective nod of thanks.

To this high season of books by and about aboriginal people in Canada, Saul this week adds The Comeback, a celebration of how native people are empowering themselves, a review of how they’ve been (and continue to be) wronged, and a warning that Canada is at an historic moment when this missing piece in nation-building must be addressed.

He does not claim to speak for aboriginal Canadians. More than ever, they do that for themselves, he says. “There’s a critical mass of aboriginal thinkers and leaders and writers who are using the methods which can get to the population at large — very fine novels, very fine essays, very fine public arguments,” he told the Star.

Doomsay away, it’s still China’s century – by David Olive (Toronto Star – October 25, 2014)

October 27, 2014

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Why China matters, even as alarms are sounding about a looming debt crisis in the People’s Republic.

More signs that this century is destined to be recalled as China’s century as much as America’s have appeared in recent weeks, even as alarms have recently been sounded about a looming debt crisis in the People’s Republic, and an alarmist but influential report this week forecasts plunging growth rates in China’s economy through to 2025.

China matters, of course, as a long-time exporter of affordable goods that have increased the standard of living, and reduced the cost of living, for hundreds of millions of North Americans and Europeans. China is also an increasingly important customer for imports. It is now the world’s biggest buyer of industrial robots, for instance. And Beijing long ago assigned to Montreal-based Bombardier Inc. the megaproject of building China’s state-of-the-art intercity commuter rail network.

China has also rapidly created industries that generate vast amounts of electric power and manufacture cars and trucks, jetliners and advanced environmental-protection goods, gaining an early lead on the U.S. in, for instance, solar panels.

“China shouldn’t be underestimated,” economics columnist John Cassidy wrote this week in The New Yorker. “Whatever one thinks of (China’s) authoritarian state-capitalism model, its success in building industries from scratch cannot be denied.”

Coal, Climate and Orangutans in Indonesia – by Daniel Stiles (The Epoche Times – October 24, 2014)

October 27, 2014

http://www.theepochtimes.com/

What do the climate and orangutans have in common? They are both threatened by coal – the first by burning it, and the second by mining it.

At the recent United Nations Climate Summit in New York, world leaders and multinational corporations pledged a variety of actions to reduce greenhouse gas emissions and deforestation to avert a looming disaster caused by global warming.

Indonesia, home to most of the world’s orangutans, is a major player in both emissions and deforestation, with the third largest tropical forest area in the world, after the Amazon and the Congo Basin. In 2012, Indonesia surpassed Brazil as the country with the highest annual rate of primary forest loss. The country is also ranked the fourth top emitter of greenhouse gases in the world (after China, the U.S., and the European Union) during some years, largely due to high deforestation rates and peatland fires.

The New York Declaration on Forests, announced at the UN Climate Summit, called on partners to work to at least halve the rate of natural forest loss globally by 2020 and strive to end natural forest loss by 2030. It also targeted achieving a reduction in deforestation-related emissions by 4.5-8.8 billion tons per year by 2030.

The now-former Indonesia president, Susilo Bambang Yudhoyono, announced in 2009 a voluntary commitment to reduce the country’s carbon footprint by 26 percent.

Federal bill to boost transparency of public, private resource companies – by Shawn McCarthy (Globe and Mail – October 25, 2014)

October 27, 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.

OTTAWA — he federal government has introduced legislation requiring resource companies to publish what they pay to foreign and domestic governments, with a plan to include First Nations governments after two years.

Representatives of mining and oil and gas industries welcomed the bill Friday, saying it would make it easier for them to demonstrate the benefits of their investments to local communities at home and abroad.

The long-promised legislation was part of an omnibus bill introduced Thursday, and will impose fines for companies that fail to report payments exceeding $100,000. It covers all publicly traded companies, as well as privately held ones that meet two of the following three conditions: have at least $20-million in assets, $40-million in revenue or 250 employees.

Prime Minister Stephen Harper promised to pursue the “publish-what-you-pay” initiative at a G20 meeting in Britain in 2013. Some industry groups had urged the provincial securities commissions to take the lead on the effort to be consistent with similar rules in the United States and the European Union.

Saskatchewan mining has quiet future – by Paul Sinkewicz (Regina Leader-Post – October 25, 2014)

October 27, 2014

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

Gouging potash from deep beneath Saskatchewan’s surface has been the work of nasty, snarling, belching beasts of machines for more than 60 years.

The application of brute force courtesy of workhorse diesel engines did the job just fine, but with each burly r.p.m. came the inevitable byproducts of internal combustion – fumes and diesel particles and the need to bring more sweet, clean air down the shaft and deep into the subterranean tendrils of the mines.

That will all change if Patric Byrns has his way. The president and CEO of PapaBravo Innovations has been rapidly creating a new way of doing business in the province’s potash mines with a line of electric trucks. They are clean, quiet and powerful, and they are attracting attention.

“You can only exhaust so much diesel particulate into a confined space without expanding the ventilation system,” said Byrns. “So, in that environment, if you can replace diesel engines with electrics, it expands their production capabilities for what they have for ventilation, and ventilation costs a lot of money.”

Byrns said converting to electric vehicles provides operators with almost a blank cheque for how many vehicles they can put underground.

Gordienko, Hunt, Cochrane and Sigurdson: Environmentalists get facts wrong about coal – (Vancouver Province – October 26, 2014)

October 27, 2014

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

Mark Gordienko is president, International Longshore and Warehouse Union Canada; Steve Hunt is director, United Steel Workers District 3; Brian Cochrane is business manager, International Union of Operating Engineers Local 115; and Tom Sigurdson is executive director, B.C. Building Trades.

“I look at it from the perspective of the importance of coal…..in terms of employment, it’s huge here but I would remind city folk that it provides employment also for people in the Greater Vancouver area.” — Sparwood Mayor Lois Halko

While there has been much attention and controversy surrounding a small, proposed coal terminal — Fraser Surrey Docks — the larger picture of how important coal mining and exports are to British Columbia’s economy is being missed.

Our unions’ members are the coal miners and workers who ship steelmaking coal from B.C. to markets overseas, where steel is made to produce everything from cellphones to wind turbines to subway cars to surgical equipment.

B.C.’s coal sector employs 26,000 people directly and indirectly, creates $3.2 billion in economic activity and generates $715 million in tax revenues for the province and B.C. cities and towns every year.

‘Please tell people about this:’ London students’ horror at Dominican Republic mines – by Mark Spowart (Metro News – October 27, 2014)

October 27, 2014

http://metronews.ca/

Three London students were shocked by what they found last winter during a trip to the Dominican Republic. Canadian mining companies, they say, are destroying lives in the country.

“We visited the Barrick Gold mine, and while we were there, we spoke with a woman named Juliana (Rodriguez). She is 82 years old and has lived in the area for all of her life,” Klaire Gain said. “She told us the last four years, which (has seen) Barrick Gold mining in the region, have been the worst years of her life.”

Now, Gain, Claire Morrow and Natasha Jimenez — all recent graduates of the social justice and peace program at King’s University College — are working to show the world what they witnessed. Using their own money, and some brought in through fundraisers, the trio travelled back to the region this summer.

They spent two months living in the area, working on farming co-ops, meeting and talking with as many residents, along with environmental and academic experts, as they could. They also hired former CBC cameraman Mark Visser, and flew him to the region where he filmed more than 100 hours of footage for a documentary expected to be ready by spring 2015.