January 15, 2015 – Republic of Mining

Copper joins commodity slump amid worries over global economy – by Rachelle Younglai (Globe and Mail – January 15, 2015)

January 15, 2015

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.

The commodities rout has spread to copper, sending the industrial metal into a tailspin on growing fears of a weakening global economy. The red metal plunged 5.2 per cent to $2.55 (U.S.) a pound, a price not seen since 2009, when financial markets were in the grip of a global economic crisis.

Copper has been sliding for a few years amid a slowing Chinese economy and an increasing surplus of the metal. But the sudden and sharp drop on Wednesday – copper lost as much as 8 per cent before recovering slightly – shocked markets already reeling from oil’s free fall.

“It’s difficult to find any fundamental reason for the dramatic slump except fears about demand have been underlined by the growth outlook lowered by the World Bank this morning,” said Robin Bhar, head of metals research at Société Générale.

The World Bank cut its economic forecast for this year and said the stronger U.S. economy would not be enough to boost global growth.

Copper, used in all sectors from construction and power generation to cars and electronics, has long been viewed as a bellwether for the world’s economic health.

World’s optimism drained as U.S. economy shows signs of weakness – by David Berman (Globe and Mail – January 15, 2015)

January 15, 2015

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.

The U.S. economy has been hailed by market strategists as a humming engine that can lead the rest of the world. Investors aren’t so sure.

Stocks are taking a beating as troubling indicators start to pile up, sending U.S. and Canadian benchmark indexes deeper under water in 2015. Markets have been volatile for several months over concerns about the euro zone economy, falling commodity prices and shifting U.S. monetary policy.

But things turned particularly rough on Wednesday following a batch of unsettling developments, including weak U.S. retail sales and falling copper prices, rattling confidence even in the U.S. economy.

The S&P 500 fell 11.76 points or 0.6 per cent, closing at 2,011.27 and marking its fourth straight decline. For the year, it is down 2.3 per cent.

In Canada, the S&P/TSX composite index fell 102.7 points or 0.7 per cent, to 14,084.43. The index is down 3.8 per cent in 2015. Stocks fell hard in Europe and Asia as well, as investors rushed to the safety of government bonds, driving down yields.

The yield on the 10-year U.S. Treasury bond fell as low as 1.8 per cent during the day, to its lowest level in more than 18 months. The yield on the 30-year bond fell to a record low.

Real-time communications to allow deep mining – by Lindsay Kelly (Northern Ontario Business – January 15, 2015)

January 15, 2015

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

It may sound like something straight from science fiction, but for miners of the future, suits and helmets that monitor their vital signs, regulate their body temperature and communicate to aboveground operators isn’t so far from reality.

Sudbury company Jannatec Technologies is working to develop fully connected, wearable gear that would do all these things to help miners go deeper underground.

“We’re very good at mining, but our communications and how we move ore and how we move things is still back 30, 40 years, so we have to catch up, and we need higher speed data under there,” Jannatec president Wayne Ablitt said. “We have to give the same working tools underground that are above ground, and that’s our goal.”

Jannatec is one of the partners in the Ultra-Deep Mining Network — established by Sudbury’s Centre for Excellence in Mining Innovation (CEMI) — focused on four areas of innovation: rock-stress risk reduction, energy reduction, material transport and productivity, and human health. The network defines ultra-deep mining as mining taking place up to 2.5 kilometres underground.

Economic uncertainty clouds Premier’s Natural Resources Forum – by Derrick Penner (Vancouver Sun – January 14, 2015)

January 15, 2015

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

Coal, copper prices have stalled, but forestry is rebounding and LNG potential remains

The provincial government’s 12th annual Premier’s Natural Resources Forum will convene next week in Prince George with a cloud shading some of the sunny optimism that has shone on British Columbia’s resource industries in recent years.

“The big story is the overall global setting and global backdrop, and for commodities, that’s relatively weak,” said Ken Peacock, vice-president and chief economist for the Business Council of B.C.

Peacock added that it is not all gloom though. While slower growth in Asia has curbed prices for commodities such as steelmaking coal and copper — dulling the prospects for B.C. mining — forestry is experiencing more of a rebound due to recovery of the American economy.

However, the province’s central interior is still buoyed by existing activity in the resource sectors, according to Mike Morris, MLA for Prince George Mackenzie, and resource-sector businesses remain pragmatic about planning for the future in cyclical industries.

“We’re still very optimistic that (liquefied natural gas) is going to move ahead,” Morris said. Morris, whose office played a big role in organizing the event, is expecting up to 600 delegates for the forum, mostly people involved in industry service businesses.

Deloitte Top 10 Mining Trends for 2015: More Agile Thinking Required to Keep Pace With Industry Change

January 15, 2015

http://www2.deloitte.com/global/en.html

Mining companies need different approaches to decision-making

For the PDF report, click here: http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/gx-er-tracking-the-trends-2015.pdf

TORONTO, ONTARIO–(Marketwired – Jan. 15, 2015) – Mining companies continue to grapple with challenging market conditions including price volatility, geopolitical turmoil, rising costs, declining grades and a general lack of financing. To remain viable into the future, companies must get more adept at balancing short-term investor expectations with long-term business imperatives. This is according to Deloitte Touche Tohmatsu Limited’s (DTTL) Tracking the Trends 2015: The top 10 issues mining companies will face this year, report released today.

The report highlights that in order to embrace the need for longer-term thinking, mining companies are getting back to the basics to clarify what they stand for, what they believe and what they plan to achieve long term.

“There is no doubt that mining companies operate in complex geographies where they face increasing challenges in responding to regulatory and compliance requirements,” said Philip Hopwood, Deloitte Touche Tohmatsu Limited’s Canadian and Global Mining Leader. “At the same time, they have an imperative to adapt to changing market conditions adopting new innovations as they seek to produce more for less cost, in a world where volatility market conditions are the new normal, and geopolitical conditions are increasingly impacting economic decision-making.”

Saving American Industry by Disrupting It – by Pat Choate (Huffington Post – January 14, 2015)

January 15, 2015

http://www.huffingtonpost.com/business/

The U.S. economy has lost more than a third of its industrial base over the past 20 years and with it more than six million good-paying jobs. This loss is the real cause of the rising economic inequality that now plagues our nation.

While most of the corporate CEOs who are facilitating this outsourcing of national wealth are indifferent to what is happening, there are a few old-fashioned, true capitalists who are not. One of those is Texas entrepreneur Rob Wendt. He is a man on a mission: He’s fighting to rebuild the American steel industry with American workers in America.

His is a lofty goal, to say the least. Once at the heart of the U.S. economy, the steel business now stands with the automobile industry as a stark symbol of American decline. Our nation led the world in steel production for decades — it was used to build the cars and appliances that fueled domestic job creation and economic growth over much of the 20th century — but U.S. producers have been in freefall since the recession of the 1970s.

At one time its biggest exporter, America is today the world’s number-one steel importer. We have been outrun by China, Europe, and Japan — and now India is hot on our heels.

Wendt wants to reverse that trend. To do so, he is using what the industry has lacked for nearly 100 years: truly disruptive technology. His startup, Origami Steel, has developed a patent-pending process that could radically change the ways in which steel is both made and sold.

Vale’s nickel unit a good target for X2 but higher price needed – by STEPHEN EISENHAMMER AND SILVIA ANTONIOLI (Reuters – January 14, 2015)

January 15, 2015

http://www.reuters.com/

RIO DE JANEIRO/LONDON – Jan 14 (Reuters) – Vale’s nickel business is a good target for former Xstrata CEO Mick Davis, but his reported offer price is probably too low, considering the Brazilian miner’s stated interest in only selling a minority stake, analysts and banking sources said on Wednesday.

On Tuesday, Bloomberg reported that Davis, who runs London-based mining startup X2 Resources, is considering a $5 billion to $7 billion offer for Vale’s nickel assets. A spokesperson for Vale, the world’s second-largest producer of nickel, told Reuters on Tuesday no offer had been received and no talks held.

A spokesman for X2 also declined to comment. “Any offer at this level… would be far too low for Vale to consider, in our view,” Citigroup analyst Alex Hacking said in a client note.

Hacking valued the business at around $20-25 billion, given an average expected EBITDA, a measure of profit from operations, of as much as $4 billion.

Vale valued its base metals business (nickel and copper) at $30-35 billion in December when it said it was considering listing 30 to 40 percent of the division in Toronto as a separate company.

Mackenzie Iles Watson (Born 1935) – 2015 Canadian Mining Hall of Fame Inductee

March 9, 2018January 15, 2015

The Canadian Mining Hall of Fame was conceived by the late Maurice R. Brown, former editor and publisher of The Northern Miner, as a way to recognize and honour the legendary mine finders and builders of a great Canadian industry. The Hall was established in 1988. For more information about the extraordinary individuals who have been inducted into the Hall of Fame, please go to their home website: http://mininghalloffame.ca/

Geological acumen, entrepreneurial instincts, and an engaging personality are some of the qualities that contributed to the extraordinary success achieved by Mackenzie Watson during his 50-year career in the Canadian mining industry. His impressive track record of discovery includes involvement in the Holloway gold project in Ontario, chromite deposits in the Ring of Fire district, and the Strange Lake rare earths project in Quebec. He also built flagship Freewest Resources into a respected project generator and provided leadership and support to junior companies and industry associations.

Watson graduated with a BSc in geology from the University of New Brunswick in 1959, and soon after participated in the discovery of the Icon Sullivan copper mine near Chibougamau, Quebec. His 1970s successes included Lynx Canada’s Long Lake zinc mine in southeast Ontario, the Hebecourt massive sulphide deposit in Quebec, and the Ellison gold deposit in Quebec, and a thermal coal deposit in New Brunswick. He later became a technical advisor to Q-Vest, which raised $60 million to invest in junior companies during the 1980s.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

Watson came into his own after becoming president of Freewest Resources in 1986. The company’s first major triumph was the Holloway gold project east of Timmins. Its discovery led to Freewest being absorbed by Hemlo Gold Mines and development of the deposit as a 1,350-tons-per-day mine.

Ian Telfer (Born 1946) – 2015 Canadian Mining Hall of Fame Inductee

March 9, 2018January 15, 2015

Ian Telfer earned his reputation as a financially astute and visionary mining entrepreneur by building a series of companies through timely acquisitions and value-driven mergers.

The companies that he founded or led — TVX Gold, Wheaton River (later merged with Goldcorp), Silver Wheaton, Terrane Minerals and Uranium One, among others — reached a combined market capitalization of more than $50 billion at their peak. Telfer’s greatest accomplishment began modestly in 2001, when he saw low gold prices as an opportunity to acquire Wheaton River Minerals and leverage its treasury to buy producing gold mines at bargain prices.

The strategy was so successful that Wheaton River was soon able to execute a friendly merger with established miner Goldcorp. With Telfer at the helm, Goldcorp grew through subsequent mergers and acquisitions to become a world-class gold mining company.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

Born in Oxford, England, Telfer was raised in Canada, and holds a BA from the University of Toronto and an MBA from the University of Ottawa. He worked as an accountant for Hudson’s Bay Mining and Smelting before becoming a founding partner of TVX in 1983. Telfer’s talents came to industry attention as TXV grew into a global gold-miner from an initial base in Brazil.

Ronald K. Netolitzky (Born 1943) – 2015 Canadian Mining Hall of Fame Inductee

March 9, 2018January 15, 2015

Ronald Netolitzky is an accomplished Canadian geologist who has always remained an independent-minded prospector at heart. He recognized and helped realize the potential of the Snip and Eskay Creek properties in northwest British Columbia, which became two of Canada’s most successful, high-grade precious metal mines. He also contributed to the growth of many junior companies and, at last count, was involved in 12 significant merger-and-acquisition events.

Netolitzky graduated from the University of Alberta with a B.Sc. in geology in 1964 and a M.Sc. from University of Calgary in 1967. He joined the Saskatchewan uranium rush as a consultant before venturing into junior mining. By 1985, Netolitzky was president of Delaware Resources and seeking a project of merit.

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

The Snip property optioned from Cominco fit the bill and the first drill program led to a gold discovery. But the 1987 market crash hindered financing and Delaware was ultimately taken over by Murray Pezim and re-named Prime Resources. Undaunted, Netolitzky turned his attention to a nearby prospect with a fruitless exploration history dating back to the 1930s.

Peter M.D. Bradshaw (Born 1938) – 2015 Canadian Mining Hall of Fame Inductee

March 9, 2018January 15, 2015

Peter Bradshaw has served the mining industry with distinction for more than forty years as a mine-finder, company builder, an advocate of collaborative research and science and by working effectively with local and indigenous people. His early career with renowned Barringer Research gave him a global perspective on mineral exploration and the opportunity to develop and publish details of ground-breaking geochemical processes and exploration methods.

In 1979, he joined Placer Development, a predecessor of Placer Dome, and helped advance several successful projects, most notably the discovery of the very high-grade zone VII at Porgera in Papua New Guinea (PNG). Bradshaw was also the driving force behind the formation of the very successful Minerals Deposit Research Unit (MDRU) at the University of British Columbia (UBC).

http://www.pendaproductions.com/ This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

Among his other achievements Bradshaw brought expertise, integrity and energy to the junior sector, first with Orvana Minerals, which developed the Don Mario gold-silver-copper deposit in Bolivia. Later, as co-founder and president of First Point Minerals, he helped discover and identify the commercial importance of a new type of nickel deposit in BC and Yukon, in which nickel occurs as the nickel-iron alloy, awaruite.

NEWS RELEASE: PDAC Names Andrew Cheatle New Executive Director

March 15, 2018January 15, 2015

TORONTO, ON–(Marketwired – January 14, 2015) – The Prospectors & Developers Association of Canada’s (PDAC) Board of Directors is pleased to announce the hiring of Andrew Cheatle as its new Executive Director, effective February 2. Mr. Cheatle joins the PDAC with more than 25 years of experience in the mining and mineral exploration industry.

As PDAC Executive Director, Mr. Cheatle’s priorities will include maintaining the organization’s strategic focus on Access to Capital, Access to Land and Aboriginal Affairs, as well as continuing to build the PDAC brand domestically and internationally.

“The PDAC Board of Directors is very enthusiastic about having someone with Andrew’s management experience, passion and drive to lead the association. He will continue the great work the PDAC has achieved by bringing the important and complex issues of our members to the national stage,” says PDAC President Rod Thomas. “He will be a great voice for our industry given his experience, including his leadership in domestic and international exploration on five continents, his experience in mining operations, and as President and CEO of a junior exploration company.”

Mr. Cheatle most recently served as President and Chief Executive Officer, Director at Unigold Inc. Prior to his time at Unigold, Cheatle served in senior roles as Vice President Exploration at Treasury Metals Inc., General Manager, Director at Landore Resources Canada Inc., Principal Geologist at AMEC plc, Chief Geologist at Goldcorp Inc./Placer Dome Inc., and Mineral Resource Manager at Anglo American Corporation.

Goldcorp chairman Ian Telfer reflects on his career as he accepts prestigious award – by Peter Koven (National Post – January 15, 2015)

January 15, 2015

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

Ian Telfer is about to accept a lifetime achievement award, but he has no intention of slowing down. The 68-year-old entrepreneur and chairman of Goldcorp Inc. will be inducted into the Canadian Mining Hall of Fame Thursday night in recognition of more than three decades of success in the industry. Mr. Telfer recently overcame a cancer scare, and is now brimming with energy and excitement as he plots Goldcorp’s future. He sat down with the Financial Post’s Peter Koven to discuss his career, his company and the gold business.

Q How did Goldcorp become the world’s biggest gold company?

A I think in all industries, there is a time where you can create something meaningful. There was a time to create Microsoft, there was a time to create Apple, and there was a time to create Goldcorp. And we just happened to be doing it at the right time. At the bottom of the last cycle, when it was very bleak and gold was US$250, Frank Giustra and I said we should get back into gold. We had never worked together. We just believed that the price of gold was going to go up and it was going to go up fast.

If we were going to participate in this, we’d better get out there and acquire gold assets as fast as we can. Over a five-year period, virtually every gold asset that came available went to auction, and we outbid everybody else because we had a more passionate view of what the gold price was going to do. And we happened to be right.

PRECIOUS-Gold jumps to 4-month high on tumbling shares after SNB move – by Clara Denina (Reuters U.S. – January 15, 2015)

January 15, 2015

http://www.reuters.com/

LONDON, Jan 15 (Reuters) – Gold rose more than two percent to a 4-month high on Thursday as European shares and the dollar turned lower after a shock move by Switzerland to abandon its three-year cap on the franc sent Europe’s shares and bond yields tumbling.

Spot gold rose as much as 2.4 percent to its highest level since Sept. at $1,260.30 an ounce in earlier trade and was up 2.2 percent at $1,256.61 an ounce by 1125 GMT. U.S. gold futures for delivery in February rose 1.8 percent to $1,257.10 an ounce.

“Gold is gaining from a risk-off situation because nobody expected the Swiss central bank not to keep that cap, and this has created potential big losses in many places and is obviously triggering some flight to safety,” Saxo Bank senior manager Ole Hansen said.

European stocks plunged and the dollar fell 0.4 percent against a basket of main currencies after the Swiss National Bank’s move, which is seen potentially preceding outright money-printing by the European Central Bank at its policy meeting next week.

“This is happening a week before the ECB meeting, which could add even further pressure to the euro… more QE in the euro zone is a double-edge sword for gold in dollar-denominated terms but gold in euro terms should benefit,” Hansen said.