October 29, 2014 – Republic of Mining

News Release: New survey of ‘hidden’ supply sector nearly doubles mining contributions to Ontario’s economy

October 29, 2014

www.camese.org

October 28, 2014

The industrial sector providing equipment, supplies and services to the global mining industry, generates 68,000 jobs across Ontario, contributing billions to Ontario’s GDP.

Markham, Ontario – A new economic impact survey reveals information previously lacking about the mining supply and services (MSS) industry, which The Conference Board of Canada has called a ‘hidden’ sector, not directly measured by Statistics Canada.

The study, executed by PricewaterhouseCoopers LLP for the Canadian Association of Mining Equipment and Services for Export (CAMESE) is based on the activities of 913 companies that consider themselves mining suppliers in 2011.

Jon Baird, the outgoing Managing Director of CAMESE says: “Finally we have proof of the important economic contribution of Ontario’s mining suppliers, supporting not only the province’s mines, but servicing mining activity worldwide.”

Mining supply activity occurs throughout Ontario. While one-third of the companies’ head offices are in Northern Ontario, 21 percent are in the Greater Toronto Area and nearly half are in other parts of the province.

London nickel jumps; industry buys on worries over China’s supplies – by Melanie Burton (Reuters/Daily Mail – October 29, 2014)

October 29, 2014

http://www.dailymail.co.uk/home/index.html

SYDNEY, Oct 29 (Reuters) – London nickel jumped on Wednesday, adding to a 5 percent gain in the previous session, as worries about declining ore stocks in China set off a buying spree that traders said included purchases by consumers.

Nickel was this year’s stellar pick for investors after a ban on Indonesian ore exports threatened to starve China’s stainless steel mills of a top source of raw material, stoking a meteoric 50 percent rise by May.

By October, however, a relentless rise in London Metal Exchange nickel stocks and higher exports from the Philippines had soothed supply fears and erased almost all of the price gains. LME stocks have surged by almost a third since mid-June to records near 380,000 tonnes, more than ten weeks of supply.

“The markets have put aside supply worries for the past few months and have really focused on the increasing LME stockpiles, which on face value is bearish,” said analyst Daniel Hynes of ANZ in Sydney.

“But they are realising that it’s a lot more complicated than that. (China’s) port stocks of nickel ore are falling,” he said.

Teck Resources water-treatment plant shut after dead fish found – by Mark Hume (Globe and Mail – October 28, 2014)

October 29, 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 — A $100-million treatment plant that is a key piece of Teck Resources Ltd.’s plan to address a selenium pollution problem in British Columbia’s Elk Valley has been taken off line because of a fish kill.

In a statement, Teck says the Line Creek plant, which went into operation in July, temporarily shut down “as a precautionary measure” while technicians try to figure out what went wrong. Teck states a problem was first noticed Oct. 16 when “fish were found deceased in the area of the water-treatment facility.”

A total of 45 fish were found dead near the plant, which was built as part of a $600-million, five-year plan to address the pollution threat to westslope cutthroat trout and other aquatic life in the Elk Valley.

Environment Canada recently reported selenium levels are so high in the Fording River that trout are hatching with deformed gills, fins, jaws, spines and craniums. Teck’s statement says the cause of the Line Creek fish kill isn’t known at this time.

NEWS RELEASE: Miners launch successful one-day friendly invasion of Queen’s Park

October 29, 2014

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Scores of company representatives from Ontario Mining Association member companies constructively presented their industry’s attributes and contributions to politicians, staff and public servants in the province’s main political arena yesterday. There was a full day of activities helping to bring mining from around the province to Queen’s Park. “The theme today is Mining Builds Communities,” said OMA President Chris Hodgson.

At an evening reception, Michael Gravelle, Minister of Northern Development and Mines, said “Meet the Miners is a long standing tradition for all those who care about the mining industry in Ontario and it has been a tremendous day. Mining is important to the economy and communities.”

Mr. Gravelle referred to the recently released OMA gold mine study “An Au-thentic Opportunity: The economic impacts of a new gold mine in Ontario” in his address. There are impressive statistics in the new OMA gold mine study and it provides an opportunity to educate the positive impact of mining.”

Interim Progressive Conservative Leader Jim Wilson said “I am pleased to meet with the representatives of your Association. We want to make Ontario one of the best mining jurisdictions in the world and we know you want greater predictability and support on electricity pricing and skilled trades development.”

Shake-out of ferrochrome industry overdue – by Kunal Bose (Business Standard – October 27, 2014)

October 29, 2014

http://www.business-standard.com/ [India]

India’s ferroalloys producers have built capacity of 5.25 million tonnes (mt), including 3.2 mt of manganese alloys and 1.75 mt of chrome alloys, anticipating much faster growth in domestic production of carbon, alloys and stainless steel than is actually the case. As a result, every segment of the ferroalloys sector has considerable idle capacity. The sector’s attempt to beat overcapacity blues through exports has seen limited success in the face of oversupply of ferroalloys in the global market, thanks largely to Chinese dumping.

Ferromanganese is used for desulphurisation and strengthening of carbon steel, while ferrochrome imparts non-corrosive properties to stainless steel.

Bansidhar Panda, chairman of Indian Metals & Ferro Alloys (IMFA), says “the chromium sector is at a crossroads, buffeted by rising costs, stagnant prices” and China’s overbearing presence in both ferrochrome and stainless steel sectors. Overcapacity is hitting non-integrated producers here, without ownership of chrome and manganese ore mines and captive power plants, the hardest. Such units in the chromium segment are never sure of securing the required supplies of chromite from the Odisha government-owned Odisha Mining Corporation.

Grid power is expensive, as it is highly irregular. For ferroalloys plants without captive power, the electricity bill alone accounts for about 35 per cent of the overall production cost. Therefore, it isn’t surprising that standalone units, which have to buy chromite and electricity, are in dire straits. Only a few, with toll smelting assignments from mines-owning ferroalloys groups, are able to keep their heads above water.

Moon exploration will reduce the shortage of rare earth metals – by Aram Ter-Ghazaryan (Russia Beyond the Headlines – October 26, 2014)

October 29, 2014

http://rbth.com/

Russian scientists are already referring to the Moon as a hub for flights to other planets. However, the main goal in exploring Earth’s satellite is to expand the production of rare earth metals.

As part of the Federal Space Program, Moon exploration operations will be launched in 2016. In 2018 the first spacecraft will be sent to the Moon to deliver comet material back to Earth. A manned flight is scheduled for 2030-2031. Future plans include the mining of rare earth metals required for the development of high-tech industries.

Looking for comet substances on the lunar south pole

Scientists from the Russian Academy of Sciences, the Moscow State University Sternberg Astronomical Institute and the Russian Federal Space Agency are participating in this Moon exploration project.

The first spacecraft to be sent to the Moon will be relatively simple. According to Vladislav Shevchenko, the Sternberg Institute’s Head of the Department of Lunar and Planetary Research, this is because the Russian space program has not carried out a Moon landing for over 40 years.

China’s ‘new normal’ still global metals demand driver – by Lawrence Williams (Mineweb.com – October 29, 2014)

October 29, 2014

http://www.mineweb.com/

Although China’s growth has slipped the Asian dragon remains the key driver for metals and minerals prices and trade.

LONDON (MINEWEB) – Consensus opinion at last week’s Bloomberg East meets West seminar in London was that the latest growth figures from China, which have been considerably lower than those of the previous few years, are indeed the ‘new normal’ rather than just a downwards blip.

Government policy now seems to have abandoned the growth-at-any-costs scenario, which saw double digit GDP growth, to a more sustainable level which seems more likely to encompass annual growth figures of between 5% and 8%.

But even so, because of the size of its metallurgical processing and manufacturing sector China will remain the principal demand driver for global metals and minerals. This point was ably put by Bloomberg Intelligence’s global head of metals and mining, Ken Hoffman, in his introductory remarks, and was a point picked up by several other speakers and panel participants too.

Bloomberg notes that part of the problem facing the global resource sector is that perhaps the West did not understand the Eastern drive for growth over the past decade and its subsequent slowdown.

COLUMN-Chinese stockpiles mean bauxite may not be a sure bet – by Clyde Russell (Reuters India – October 29, 2014)

October 29, 2014

http://in.reuters.com/

LAUNCESTON, Australia, Oct 29 (Reuters) – Bauxite is one of the few natural resources to attract positive commentary amid the sharp falls in many commodities in the past few months.

Certainly the outlook appears quite constructive for the mineral used to make alumina, which in turn is the primary ingredient for aluminium.

Indonesia produced about 12 percent of the world’s output and was the top supplier to China prior to Jakarta imposing a ban on exporting raw mineral ores in January.

The Ebola outbreak in West Africa appears to have had a limited impact on shipments from Guinea, so far, but the risk of disruption rises as long as the deadly disease remains prevalent in the region.

Also, much of the planned new supply is in West Africa, including major projects in Mali, and the longer the Ebola crisis endures, the more likely delays and cost overruns become.

Throw in signs that, excluding China, aluminium demand is rising as the U.S. and other economies recover, while Chinese aluminium output remains robust, and it’s not hard to see bauxite as a shining light in the commodity firmament.

Iron ore is wreaking havoc on WA. Welcome to capitalism, Colin Barnett – by Greg Jericho (The Guardian – October 27, 2014)

October 29, 2014

http://www.theguardian.com/uk

Collapsing iron ore prices are set to smash the Western Australian budget. But the premier can’t blame the miners when the state’s forecasts were too high

It’s not often you hear an Australian politician grumbling about increases in mining production, but that is just what the Western Australian premier, Colin Barnett, has been doing of late.

He has accused the two big miners, BHP Billiton and Rio Tinto, of flooding the market with iron ore and thus bringing down the price. The collapsing iron ore prices are set to smash the WA and Australian government’s budgets. But the governments can’t blame the miners when both budgets anticipated much higher iron ore prices than we now have.

As Wayne Swan often found out during his period as treasurer, government budgets are hostage to their forecasts. If the forecasts of various aspects of the economy – whether employment, inflation or the exchange rate – are too optimistic, the end result is often a much reduced level of tax revenue.

Lower iron ore prices affect both state and federal governments. State governments lose revenue from mining royalties whereas the federal government sees its company tax revenue fall (and other taxes if the lower prices result in workers being retrenched).

Sudbury mines given hundreds of health and safety work orders (CBC News Sudbury – October 29, 2014)

October 29, 2014

http://www.cbc.ca/news/canada/sudbury

Orders cover such areas as hoist maintenance, ventilation, and preventing water accumulation

Details of health and safety orders issued to Sudbury-area mines hint at the dangers of working underground.

The Ministry of Labour provided CBC News a breakdown of orders that have been given to First Nickel’s Lockerby Mine, Vale’s Stobie and Creighton Mines, Xstrata’s Nickel Rim South and Quadra FNX/KGMH International’s Levack mine over the past three years.

The orders cover such areas as hoist maintenance, ventilation, and preventing water accumulation. Out of the five, Lockerby Mine had the most orders, totalling more than 200. Stobie had the second highest number, at more than 180. The other three had fewer than 100 each.

NDP mining critic and Timmins-James Bay MPP Gilles Bisson speculated on the varying number of work orders issued to the mines.

“Is it the style of management? Is it what is going on with the workers? But clearly, we need to make sure that whatever is going on there is properly dealt with,” he said. Bisson said the number and types of orders don’t provide a clear enough picture to make any quick judgments.

Gold Mining Stocks Diverge in Wake of Metal’s Decline – by Liezel Hill (Bloomberg News – October 28, 2014)

October 29, 2014

http://www.businessweek.com/

A chasm is opening up between the best- and worst-performing gold mining stocks as the price of the metal languishes near a four-year low.

Companies with low-cost mines and little or no net debt, including Eldorado Gold Corp. (ELD) and Randgold Resources Ltd. (RRS), have beaten gold’s 2.5 percent rise this year. More indebted rivals including Toronto-based Barrick Gold Corp. (ABX), the world’s largest producer, and Yamana Gold Inc. (YRI) have declined more than 15 percent.

There were 115 percentage points separating the average of the five best and five worst performers this year through yesterday in the Standard & Poor’s/TSX Global Gold Sector Index, almost double the spread in the same period last year, according to data compiled by Bloomberg.

“There’s been a very big divergence between the performance of gold equities globally,” Neil Gregson, a London-based natural-resources equities fund manager at JPMorgan Chase & Co., said in a phone interview. Last year, gold stocks fell more or less across the board as the metal plunged the most in three decades. In contrast, this year “it’s very, very stock-specific,” Gregson said.

Gold miners as a group are trading at their cheapest relative to the price of the metal in at least 30 years, according to data compiled by Bloomberg. Gold futures, which are wallowing about $50 above a four-year low, rose 0.2 percent to $1,231.20 an ounce at 9:34 a.m. in New York.

South African gold miner eyes biogas to power underground trains – by Wendell Roelf (Reuters India – October 28, 2014)

October 29, 2014

http://in.reuters.com/

CAPE TOWN, Oct 28 (Reuters) – A South African gold mining firm trying to cut carbon emissions and costs and improve the health of its workers could be the first globally to fuel trains with biogenic gas formed over millennia deep beneath the ground, one producer said on Tuesday.

Molopo South Africa, which holds the country’s first and so far only onshore petroleum production license, said it was partnering with Sibanye Gold to start underground testing next year on a locomotive that has been converted from diesel to run on compressed natural gas (CNG).

Biogenic gas, produced by bacteria interacting with ancient decomposing plants to release methane, has been found in South Africa’s Free State province, close to the mining operations of Harmony Gold, Sibanye Gold, and Petra Diamonds.

Although there has been research into its use in powering trains, it has never gone beyond the prototype stage, experts say. But the CNG locomotive was recently tested above ground and it managed to pull eight wagons carrying a 30 tonne load, the equivalent of those pulled by diesel engines, Stefano Marani, a director at Molopo, said.

“Which is a very big milestone to move to the next phase of what we believe is a world first,” Marani told Reuters. There was also a massive reduction in diesel emissions, with big health benefits for mine workers.

Gold Hill Depot Reception to Unveil Painting and Celebrate Nevada Sesquicentennial

October 29, 2014

http://www.comstockfoundation.org/

OCTOBER 6, 2014

Funds Raised for the Preservation of the Comstock Historic District

The rarely-seen interior of the Gold Hill Depot will open to the public for a special Nevada Day event. After extensive restorations by Storey County, the Virginia City Tourism Commission, and the Comstock Foundation for History and Culture, the Depot will be the location of a grand reception on October 31, celebrating the sesquicentennial of Nevada statehood and the unveiling of “Nine Cheers for the Silver State,” a painting by renowned Nevada artist Steven Saylor.

Saylor’s painting takes its title from a headline that appeared in the Gold Hill Daily News on October 31, 1864. Prints of the painting are available for purchase to raise funds for the historic preservation efforts of the Comstock Foundation. The champagne reception will be from 3:30 to 5:00 pm. The ticket price of $30 includes a ride on the Virginia and Truckee Railroad to and from its Virginia City terminus to the Gold Hill Depot. The train will depart from Virginia City at 3:00 pm, and it will return in time for a Virginia City parade celebrating 150 years of statehood. Tickets are available from the Virginia City Tourism Commission.

Saylor’s work depicts Governor Brian Sandoval as well as past governors Paul Laxalt, Bob List, Dick Bryan, and Bob Miller. In addition, the painting includes former First Ladies Dawn Gibbons and Dema Guinn, in honor of the Guinn and Gibbons administrations, and Corrado De Gasperis, Ron James and John Winfield, from the Comstock Foundation. Saylor has previously published prints of his popular painting as fundraisers for various causes. His earlier paintings include “Celebrity Train,” portraying notable country and western celebrities, and “Heavyweights,” that also depicted six former living governors.

New Cliffs CEO sees ‘zero hope,’ no asset sale in Ontario’s Ring of Fire – by Peter Koven (National Post – October 29, 2014)

October 29, 2014

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

The new chief executive of Cliffs Natural Resources Inc. doubts that Ontario’s “Ring of Fire” will be developed for decades to come, or that anyone will buy his company’s rich chromite assets in the region in the near future.

Lourenco Goncalves, 55, said in an interview Tuesday that he has “zero hope” that a solution will be reached to spur on development in the region anytime soon.

“I don’t believe under my watch, and I plan to stay [alive] for the next 50 years… that the Ring of Fire will be developed,” he said.

A handful of junior mining companies, including KWG Resources Inc. and Noront Resources Ltd., are more optimistic and are interested in buying Cliffs’ Ring of Fire properties. But according to Mr. Goncalves, they all have the same problem: “They do not have any money.”

His comments have to be discouraging for the Ontario government, which made the Ring of Fire the centerpiece of its northern development plans. To date, Cleveland-based Cliffs is the only large mining company to take a serious interest in the area.

The Ring of Fire, located in the remote James Bay Lowlands, was discovered amid much fanfare in 2007. It is thought to hold about $60-billion of chromite, base metals and other minerals.