Twitter

Day: November 4, 2014

Antarctic mining ban to be indefinite – by Cole Latimer (Australian Mining – November 3, 2014)

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

A symposium on polar law has heard that mining will indefinitely be banned in the Antarctic region. The event, held in Hobart, saw the former head of the Australian Antarctic Division claim that the Antarctic Treaty – which bans mining in the region – will not be revised later this century, according to the ABC.

It comes as polar ice both in the Arctic and Antarctic regions begins to recede, opening up new regions for resources companies. While the Antarctic appears barren on the surface, below it stores an abundance of highly sought resources, including coal, iron ore, manganese, copper, lead, uranium and billions of barrels of oil reserves.

The resources are plentiful but they have been largely untouched as a result of an international peacekeeping agreement – the Antarctic Treaty System (ATS).

Established in 1961, the Treaty includes 12 original signatories, consisting of Australia, New Zealand, Japan, Argentina, Belgium, Chile, France, Norway, South Africa, Russia, the United Kingdom, and the United States, plus 28 other states that have ‘consultative party’ status, which allows them to vote on decisions concerning Antarctic administration.

Australia claims the majority of Antarctica, with the Australian Antarctic Territory covering 42 per cent of the continent. In 1991, nations of the Treaty agreed to ban the exploitation of minerals by signing a comprehensive Protocol on Environmental Protection (the Madrid Protocol).

Read more

Russia’s Dependence on the West – by Grzegorz Kaliszuk (New Eastern Europe – November 3, 2014)

http://www.neweasterneurope.eu/

The conflict in eastern Ukraine, which has been lasting for nearly ten months, has had direct implications on the Russian economy. Foreign investments, as the best tool to integrate the world’s economies, are more and more often bypassing Russia. According to the Central Bank of Russia, the country is going to lose 90 billion US dollars of foreign investments as a result of the war.

The energy industry, which is the core of the Russian economy, is very close to the heart of the Kremlin. As a place where hundreds of different minerals are exploited every day, we generally associate the Russian energy industry with oil and natural gas. However, besides “black gold” and “blue fuel”, Russia’s coal mining is also a very significant part of its energy business. One-third of the world’s coal supplies are located in Russia, primarily in Siberia.

In 2012, the Russian Federation endorsed a long-term coal development programme. Its main aim is to increase Russia’s annual coal production to 430 million tonnes. The first step to success is its large coal reserve. The second are the specialised technologies which are usually purchased from other countries. The current level of exhaustion in the mining infrastructure shows an immediate upgrade is needed in up to 60 per cent of production sites (in 139 open-pit mines and in 93 underground mines).

The Russian coal industry is also a chance for the Polish economy. Until the end of the 1960s, Poland imported coal-mining technologies from Russia – now the boot is on the other foot and the Russian market is dominated by companies like Becker Mining Systems (Germany), Sandvik Mining Construction (Finland) and the export alliance of Czech Mining Technology.

Read more

Steelworkers president optimistic for future of Wabush Mines – by Ty Dunham (St. John’s Telegram – November 4, 2014)

http://www.thetelegram.com/

Businesses and families are feeling the slowdown of the iron ore market, especially those affected by the idling of Wabush Mines in February.

The recent news of Cliff’s Natural Resources choosing to shut the mine down permanently after negotiations with potential buyer MFC Industrial fell through has prompted many to worry about their future in Wabush.

But MFC is continuing to explore options to take over the mine, which is why United Steelworkers (USW), Local 6285 president Jason Penney is remaining optimistic.

“From what we’ve been told, as royalty holders they have certain contractual rights, which will allow them to re-enter the plant,” explained Penney. He said it’s not a matter of if MFC reopens the mine, but when.

“MFC seems like a very solid and strong company. This is not their first rodeo. And they’re adamant that they’ll reopen the mine. We just

hope it can be done in a quick time frame.” While it isn’t the preferred route, Penney said it’s better than the alternative. “There’s no doubt we’re disappointed by the sale. This way will be longer. The important thing I want people to remember is all hope is not lost.”

Read more

PRESS RELEASE: Northern Superior Resources Announces June 1, 2015 Trial Date for Litigation Against the Ontario Government

SUDBURY, ONTARIO, Nov 04, 2014 (Marketwired via COMTEX) — Northern Superior Resources Inc. (“Northern Superior” or the “Company”) (SUP) is pleased to provide the following update on the litigation proceedings against the Ontario Government concerning the Company’s Thorne Lake, Meston Lake and Rapson Bay properties.

— The Superior Court Judge overseeing the Company’s litigation against the Ontario Government has fixed June 1, 2015 as the trial date.
— Four weeks have been set aside for the trial.
— At the October 30, 2014 Case Conference, the sixth one in the case, Northern Superior proposed an aggressive timetable for getting the case
ready for trial, which after consideration by Ontario will be fixed by the Judge on November 7, 2014.
— The pre-trial steps agreed on include holding a mediation before an independent third party on or about February 1, 2015.

Dr. T.F. Morris President and CEO states: “I am obviously pleased that a fixed date for the trial has been set. This clearly provides some finality to what has been a long process. Northern Superior looks forward with confidence to the trial date.”

About Northern Superior Resources Inc.:

Northern Superior is a junior exploration company exploring for gold in the Superior Province of the Canadian Shield. The Company is currently focused on exploring its Croteau Est property in Quebec. The Company has a number of 100% owned properties (see Company web site, www.nsuperior.com) in the Stull-Wunnumin and Chibougamau gold districts of Ontario and Quebec.

Read more

Volatile gold prices may worsen N.A. miners’ ratings – by Dorothy Kosich (Mineweb.com – November 3, 2014)

http://www.mineweb.com/

S&P warns that if gold prices average about $1,100/oz in 2015, several N.A. gold producers may have their credit ratings downgraded.

RENO (MINEWEB) – While most Standard & Poor’s-rated North American gold producers are anticipated to maintain relatively stable credit profiles at $1,200/oz gold through 2015; if gold prices settle modestly below $1,200/oz, Allied Nevada Gold, Barrick Gold, Iamgold, Kinross Gold and Newmont Gold “are particularly vulnerable”.

“Specifically, we estimate that thse companies would breach the adjusted debt-to-EBITDA ratio, funds from operations (FFO)-to-debt ratio, or liquidity thresholds previously highlighted in the downside scenarios in our most recent research reports on each issuer,” said S&P in the new RatingsDirect report entitled: Will Falling Prices Tarnish North American Gold Producers Credit Quality?

Currently, S&P rates both Barrick and Newmont at ‘BBB’ with a “Negative” outlook, Kinross at a ‘BBB-’ with a “Stable” outlook, Iamgold with a ‘BB+’ with a “Watch Negative” outlook, and Allied Nevada at a ‘CCC+’ with a “Negative” outlook.

In an interview with Mineweb Friday, S&P primary credit analyst Jarrett Bilous observed, “We have a relatively stable gold price at $1,200 through 2015-16, and that incorporates our expectation for relatively modest US inflation below 2% through 2016.

Read more

Germany’s Turn Against Coal Risks More Reliance on Russia – by Stefan Nicola, Tino Andresen and Brian Parkin (Bloomberg News – November 3, 2014)

http://www.bloomberg.com/

Germany is turning against coal as a fuel for generating electricity, a move that will boost the nation’s reliance on natural gas from Russia.

Alarmed that curtailing nuclear power has prompted utilities to burn the most coal in six years, Chancellor Angela Merkel’s government is working on a plan to reinforce Germany’s commitment to reduce fossil-fuel emissions. The Economy Ministry on Oct. 31 published a paper laying the groundwork for the most strict steps yet to limit coal in Europe.

The shift, if implemented, would force Germany to tap Russia for additional supplies, to import power from neighbors and to further subsidize renewables such as solar and wind. That would swell the country’s 100 billion-euro ($126 billion) annual fuel import bill and may raise the cost of electricity paid by consumers, already the second-highest in the European Union.

It would also run counter to efforts by the U.S. and EU to isolate Russia economically.

“The importance of gas, and with that the dependence on Russia, will increase,” said Guido Hoymann, an analyst at B. Metzler Seel Sohn & Co. KGaA. Cross-border exchanges of electricity also would rise, helping the nuclear plants just outside Germany’s border, he said.

Read more

Ring of Fire development needs attention – by Carol Mulligan (Sudbury Star – November 4, 2014)

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

The government of Ontario must stop stalling and get serious about bringing partners together to plan and build transportation infrastructure for the Ring of Fire.

Not one ounce of the estimated $60 billion worth of chromite and other minerals in this area of Northern Ontario can be mined until a transportation system and power grid are built. And that can’t start until the much-vaunted Ring of Fire Infrastructure Development Corp. is fully functioning.

A year ago, the province announced creation of the development corporation to design, engineer, construct and maintain transportation infrastructure for the Ring. Since then, the Liberals have re-announced it three times, the last when it was formally established in August with an interim board of four Ontario public servants.

The “mature” corporation is to be comprised of representatives from government, the mining sector, First Nations and other communities. So it was disappointing to learn four bureaucrats were the only appointees. First Nations leaders and mining company officials are furious about not being drawn into infrastructure talks after a year of dilly-dallying.

Read more

Chinese unmoved by gold price drop, see it cheaper still – by A. Ananthalakshmi (Reuters U.S. – November 3, 2014)

http://www.reuters.com/

SINGAPORE – Nov 3 (Reuters) – Even with gold prices dropping to near 4-year lows, buyers in China – the world’s leading market – aren’t tempted, suggesting prices have further to fall.

When gold prices are in a slump, Chinese buyers, eyeing a bargain, traditionally move in and stop the rot. But that doesn’t seem to be happening this time around. The current market decline has seen the price of gold lose more than a third of its value in two years, to around $1,173 an ounce.

Unusually, prices on the Shanghai Gold Exchange, the world’s biggest platform for physical trade, are at a discount of around $1 an ounce to the global benchmark, slipping from premiums of $1-$2 an ounce last week. Since all physical gold trade in China goes through the exchange, it is seen as a reliable barometer of Chinese demand.

World gold prices are at their lowest since 2010 and slid $25 an ounce on Friday as the U.S. dollar strengthened, but Chinese buyers still aren’t biting, predicting prices have further to drop.

There is little sign of increased demand, dealers at importing banks in China and traders told Reuters on Monday, recalling how China led a rush to buy jewellery and gold bars and coins when prices slumped about $200 an ounce in two days last year.

Read more

Ontario mining minister ‘startled’ by Ring of Fire criticism – by Lisa Wright (Toronto Star – November 4, 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.

Cliffs Natural Resources CEO ‘wrong’ to say Ring will never be developed, says Michael Gravelle.

Ontario’s mining minister says the province is “absolutely committed” to the Ring of Fire mining development despite recent criticism that the project will never get off the ground.

Lourenco Goncalves, the new chief executive of Cliffs Natural Resources, said last week that he thinks there is “zero hope” that a mine will ever be built in the rich mineral belt in the James Bay lowlands, after the Cleveland-based miner spent $500 million trying to tap into the vast chromite deposit and got nowhere.

Cliffs has the largest land position in the area but abandoned the region last winter citing red tape from the Ontario government and First Nations groups around building necessary transportation and power infrastructure. Cliffs’ assets are for sale but there have been no takers yet.

“I will admit I was startled by those comments,” Northern Development and Mines Minister Michael Gravelle said in an interview Monday. “I think he’s wrong. We all understand that this is a complicated project in a remote area of the province that has never been developed before,” he said.

Read more

Sudbury’s Superstack could be coming down: Vale – by Carol Mulligan (Sudbury Star – November 4, 2014)

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

A Sudbury landmark, rated 10 out of 45 attractions to see in the Nickel City, could be coming down, depending upon the result of an analysis by Vale Ltd. The mining company may decommission the 1,250-foot Superstack that has become synonymous with Sudbury’s regreening efforts.

It cost about $25 million to build the giant smokestack in the early 1970s to move sulphur dioxide emissions miles out of the Sudbury Basin where it was killing vegetation and polluting the air.

Because today’s mining processes produce so much less SO2, the Superstack may be superfluous and a much shorter stack could likely do the job.

Kelly Strong, vice-president of Vale’s Ontario and United Kingdom operations, made the announcement about the Superstack study at a noon luncheon Monday of the Greater Sudbury Chamber of Commerce.

No business person asked questions of Strong, not even about the Superstack, when Strong finished his 25-minute presentation to 260 people. Strong told reporters after the luncheon that talk of disposing of the giant stack is bound to create a buzz in the community.

Read more

[Ontario mining and manufacturing] Rip-it-and-ship-it Versus Value-added – by James Cuddy (Northern Policy Institute Blog – October 2014)

http://northernpolicy.wordpress.com/

James Cuddy, Senior Policy Analyst with Northern Policy Institute

It’s a common concern that Northern Ontario is not developing industries that will add-value to raw mining and forestry materials before they are exported for use elsewhere. So, why can’t we build processing and manufacturing facilities and then sell the value-added products to the world?

Mike Moffatt puts it simply: “If there is a business case to do so, then absolutely [we can].” The notion that there is a ‘business case’ to develop processing and manufacturing facilities embodies the concept of comparative advantage.

Northern Ontario’s primary industries exist because the region has an abundance of minerals in the ground and trees on the land that can be extracted and exported. Northern Ontario is endowed with natural resources that not everyone else has; this is what gives the region its comparative advantage in these industries.

On the other hand, it is not necessarily clear that the region has a comparative advantage in value-added forest and mining products – i.e., processing and manufacturing of raw materials. Since a processing facility can be located almost anywhere, there are many additional factors – over and above having raw materials nearby – that affect where Northern Ontario’s comparative advantage (or disadvantage) lie for value-added industries.

Read more

NEWS RELEASE: Season seven SYTYKM offers more money, more prize categories and more support for schools

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.

Season seven of the Ontario Mining Association’s high school video competition So You Think You Know Mining has officially been opened. Entries are now being accepted on line. This year’s competition offers more money, more prize categories and more support for schools.

The prize money available has been increased to $42,500. A new category – Best Cinematography – is also being offered. This new award will recognize the most effective use of the camera by a contestant. Think camera angles, cuts and lighting. In addition, this year to offer more support to educators, $500 will be provided to the schools of each winning entry.

“Video equipment and video production software comes with a cost,” said OMA President Chris Hodgson. “We wanted to find a way to offer more assistance to schools and their audio-visual, communications technology and visual arts classes. We hope this new $500 school prize bonus will encourage and support educators involved in SYTYKM.”

SYTYKM is supported by comprehensive web-based resources and a social media network that includes Twitter, Facebook, YouTube and Pinterest. Contest details, video upload instructions, production ideas and past winning entries are all available on the OMA website at http://www.oma.on.ca.

Read more

Vale could demolish Sudbury’s Superstack – by Jonathan Migneault (Northern Ontario Business – November 3, 2014)

http://www.northernlife.ca/

Some call it an eyesore, while many others see it as one of Sudbury’s most easily identifiable and iconic landmarks. By the end of the year Vale is expected to determine the future of the Superstack, and decide whether or not it should be demolished.

“The reality is that there’s very little SO2 (sulphur dioxide) coming up the stack and it doesn’t make a lot of sense for use to use the stack further,” said Kelly Strong, Vale’s vice-president of Ontario and UK operations.

Strong addressed the Sudbury Chamber of Commerce Monday, where he updated the city’s business community on Vale’s operations and plans for the future in Sudbury.

Strong’s update on the Superstack was the day’s big announcement. “It’s a huge change for our community,” he said. “There’s a correlation between Sudbury and the Superstack. It’s a huge landmark.”

When it was built in 1972, the 1,250-foot (350-metre) Inco Superstack was the world’s tallest chimney, and the tallest freestanding structure in Canada. Today, Toronto’s CN Tower is the only structure in Canada to surpass the Superstack in height, at 1,815 feet, or 553 metres.

Read more

Sudbury letter: Uncertainty dogs Ring development – by Peter Best (Sudbury Star – November 4, 2014)

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

Re: Carol Mulligan’s Ring of Fire column, Oct. 30.

Stan Sudol hopes that “political sanity” will prevail and then the Ring of Fire will be developed. There can be no political sanity without underlying legal sanity, and right now, in this area of Canadian life, we don’t have that. The Supreme Court of Canada, with its “consult and accommodate” rulings, has handed First Nations band elites a virtual veto on all new developments on Crown lands, and they are using it with devastatingly negative consequences for us all, especially the vast majority of powerless natives. This was the unacknowledged elephant in the room in Carol Mulligan’s otherwise excellent article.

When George Smitherman was the Matawa Tribal Council’s spokesman he declaimed on their behalf that “First Nations will have the ultimate say on how the Ring of Fire mineral developments will unfold.” In 2012, Neskatanga Chief Peter Moonias threatened “blockades and even acts of mischief” if his little band’s demands for a proper piece of the action weren’t met. The fiscal, legal and law and order uncertainty caused by this type of selfish and irresponsible thinking foretold ultimate doom for the project.

Combined with the above was and is the McGuinty/Wynne government’s enthusiastic embrace and support of these Crown sovereignty-destroying court rulings. Wynne cabinet minister David Zimmer recently inanely lauded the framework agreement with the Matawa Tribal Council as a “government-to-government” agreement. A government’s first duty is to protect its own sovereignty.

Read more

In the U.S., a Turning Point in the Flow of Oil – by Clifford Krauss (New York Times – October 7, 2014)

http://www.nytimes.com/

HOUSTON — The Singapore-flagged tanker BW Zambesi set sail with little fanfare from the port of Galveston, Tex., on July 30, loaded with crude oil destined for South Korea. But though it left inauspiciously, the ship’s launch was another critical turning point in what has been a half-decade of tectonic change for the American oil industry.

The 400,000 barrels the tanker carried represented the first unrestricted export of American oil to a country outside of North America in nearly four decades. The Obama administration insisted there was no change in energy trade policy, perhaps concerned about the reaction from environmentalists and liberal members of Congress with midterm elections coming.

But many energy experts viewed the launch as the curtain raiser for the United States’ inevitable emergence as a major world oil exporter, an improbable return to a status that helped make the country a great power in the first half of the 20th century.

“The export shipment symbolizes a new era in U.S. energy and U.S. energy relations with the rest of the world,” said Daniel Yergin, the energy historian. “Economically, it means that money that was flowing out of the United States into sovereign wealth funds and treasuries around the world will now stay in the U.S. and be invested in the U.S., creating jobs. It doesn’t change everything, but it certainly provides a new dimension to U.S. influence in the world.”

Read more