January 26, 2015 – Republic of Mining

Gold turbulent on Greek aftermath – by Lawrence Williams (Mineweb.com – January 26, 2015)

January 26, 2015

http://www.mineweb.com/

The Greek election result fallout will likely create significant waves in the gold market looking ahead – while there’s always the Ukraine to spice things up…

Perhaps predictably, gold initially jumped up to the $1,300 level in Asian trading as the Greek election results became apparent. But as the news, which had been largely anticipated, began to be assessed the gold price fell back fairly sharply in London trading.

Analysts at Commerzbank put this down to ‘buy the rumour and sell the fact’ profit taking, but with the aftermath of the election result still to really impact, one suspects that the likely forthcoming very difficult negotiations between the new Syriza government in Greece and the EU/ECB and the IMF over renegotiation of Greek debt will create some significant waves in the gold market ahead.

Initial indications are that the IMF, and probably the Eurozone nations led by Germany, will strongly resist any Greek attempts to renegotiate and write-off much of its debt. IMF MD Christine Lagarde, for example, seems to be taking a hardline approach. “A debt is a debt,” she is reported as saying. But how much this is setting out an initial negotiating position ahead of the inevitable horse trading remains to be seen.

If all this results in deadlock then there is a strong likelihood that Greece will default on its debt as soon as this summer with the possibility it will be ejected from the Eurozone by the other members who may have had enough of the already huge costs of trying, unsuccessfully, to support the Greek economy and bring it back on track.

NEWS ANALYSIS: Falling copper price sounds the alarm for base metals miners – by Mark Allix (Business Day Live – January 26, 2015)

January 26, 2015

http://www.bdlive.co.za/

MOODY’s has changed its outlook for the global base-metals industry to negative from stable, saying this is driven by global economic weakness and falling copper prices.

Copper is an economic bellwether given its use in power supply, plumbing and communications. The low demand and therefore low price of copper indicates the poor health of the global building and construction sectors.

“Slowing growth in China’s GDP (gross domestic product), continued weakness in Europe and falling copper prices have all contributed to our revised outlook,” says Carol Cowan, a Moody’s senior vice-president.

But the international ratings agency says the slowing rate of economic growth in China, especially, does “not bode well” for base metals as China consumes more than 40% of the world’s production. This immediately puts up red flags for SA’s base metals miners, and also for general metals manufacturers in the country. The latter have already endured a long, slow period of decline since 2000.

Broker Imara SP Reid says in its latest report on BHP Billiton that global steel prices are trending downwards. This comes despite the global miner’s guidance for overall mining production growth of 16% over two years to the end of June this year.

NEWS RELEASE: Premier announces new funding to support mining in B.C.

January 26, 2015

VANCOUVER – Funding in Budget 2015 will establish a Major Mines Permitting Office to improve the co-ordination of major mine permits across government, add staff to conduct more inspections and permit reviews, and maintain improved turnaround times for notice of work permits, Premier Christy Clark announced today.

“Up to 10 new mines are expected to proceed in the next few years and this new funding will make sure we are ready to support these projects and ensure the safety of this important industry as it continues to grow,” said Premier Christy Clark. “B.C.’s mineral exploration and mining industry is a great comeback story and today we have a significant opportunity to create thousands of jobs by opening new mines and expanding existing ones.”

Government has used contingency funding since 2011 to significantly increase geotechnical staff and inspections and improve permit turnaround times. The funding announced today will make these improvements permanent and create additional capacity to support the major mines permitting process.

The base budget of the ministry will be increased by about $6 million, a portion of which will go towards making current contingency funding permanent. Also, new permit fees for mines in B.C. are expected to raise an additional $3 million per year. The new fees will not be charged to exploration companies.

“Since 2011, we’ve made significant improvements to increase geotechnical inspections, hire additional staff and reduce the turnaround time for notice of work permits,” said Bill Bennett, Minister of Energy and Mines.

PMO taking a look at Ring of Fire plan to rival Ontario’s: Cree chief – by James Munson (iPolitics.ca – January 24, 2015)

January 26, 2015

http://www.ipolitics.ca/

The Prime Minister’s Office has expressed interest in a First Nations-led plan to build a new seaport and railroad across northern Ontario to the Ring of Fire mineral deposit, an election-year effort that would rival Premier Kathleen Wynne’s own designs for the region.

The Mushkegowuk Council and TGR Rail Company are preparing a joint purchase of the Ontario Northland rail line between North Bay and Moosonee, pending the First Nation group’s approval from its council of chiefs this week, said Mushkegowuk Council grand chief Lawrence Martin Friday.

The plan would open the door to a east-to-west rail, transmission line and telecommunications corridor to the Ring of Fire, a 5,120 square kilometre crescent of ore that could bring a $9.4 billion increase to Ontario’s GDP over the next decade if developed.

After more than a year of what Wynne has characterized as foot dragging from Ottawa on a federal-provincial plan, the PMO and Natural Resources Minister Greg Rickford’s office called TRG Rail in the past three weeks expressing interest in the new plan, Martin told iPolitics.

“We’ve even had a call from the PMO office asking for information for our project,” said Martin, adding it was TGR Rail, a Toronto-based rail company, that took the call. “It’s gaining momentum, so it looks like it’s going ahead.” TGR Rail would not comment on the corridor plan, saying only that the firm would issue a news release Monday.

Ontario Government shuts down ONR sale talk – by Jeff Turl (Bay Today – January 26, 2015

January 26, 2015January 26, 2015

http://www.baytoday.ca/

The Ontario government and ONTC management have acted quickly to quash any talk that the ONR could be sold to a James Bay native council.

Mike Feenstra, Director of Communications for Michael Gravelle, Minister of Northern Development and Mines told BayToday in an email that, “On April 4, 2014, after extensive work with the Minister’s Advisory Committee on the ONTC, Minister Gravelle announced the government would keep the ONTC in public hands and operations would be transformed. As a result, 4 of the 5 lines of business (Onterra has been sold to Bell Aliant) are being kept in public hands under the management of the ONTC. This statement from Minister Gravelle reaffirms this decision:

“Our government has been clear – ONTC’s motor coach, Polar Bear Express, rail freight, and refurbishment services will remain in public hands. We remain steadfast in our commitment to ensure sustainable employment, continued economic growth, and a strong transportation network in northeastern Ontario through transformation of the ONTC.”

And Interim CEO of Ontario Northland Corina Moore confirmed it to BayToday. “The province has been clear that Ontario Northland’s rail operations will remain in public hands. Transformation is underway at Ontario Northland. We are focused on reshaping the organization in order to be sustainable so we can continue to provide vital transportation services to northeastern Ontario.”

TGR Rail PRESS RELEASE: LANDMARK BREAKTHROUGH FOR THE RING OF FIRE

January 26, 2015

Monday January 26th, 2015

TGR Rail Canada is proud to confirm that it is moving forward with a proposal to negotiate a deal to finance build and operate a 410 km railway to the Ring of Fire from Moosonee on James Bay with the Mushkegowuk Council. The visionary Mushkegowuk Council, on behalf of their people, are reviewing the concept of a First Nations owned infrastructure corridor through their territory that will include high power hydro lines, an access road and a railway. The Mushkegowuk, with the support of TGR Rail Canada, have also identified the potential future location for a James Bay deep sea port to service the Ring of Fire mining companies.

“These guys are different,” said Grand Chief Martin. “They don’t want to talk about treaties. They said they need land to lease from us, all they need to know is how much we want for it.” TGR Rail confirms that the Mushkegowuk will have a significant ownership position in the new Ring of Fire Railway. The James Bay area First Nation will also benefit when the construction service road built for the new railway is converted for use as a First Nations community access road benefitting the entire region.

Grand Chief Martin said his personal opinion is that the proposal is a good one because there is already an idea on the table to extend a high voltage hydro transmission line from the James Bay coast on a new right of way to the Ring Of Fire. He said it would only make sense to create a right of way to serve hydro and rail service at the same time. The most important factor is that the Mushkegowuk people will have ownership of the project.

BREAKINGVIEWS-Obama’s nuclear gift to Modi is shrewd investment – by Andy Mukherjee (Reuters India – January 26, 2015)

January 26, 2015

http://in.reuters.com/

Jan 26 (Reuters Breakingviews) – Barack Obama’s nuclear gift to India looks like a shrewd investment. By agreeing to a workaround that protects power station builders from civil liabilities in the event of a meltdown, the U.S. president has effectively unblocked New Delhi’s reactor programme. The bigger bet is on ending India’s energy crisis.

The agreement, struck on the first day of Obama’s visit to Indian Prime Minister Narendra Modi, could bring new orders for equipment makers like GE-Hitachi , Toshiba’s Westinghouse and France’s Areva. About 4 gigawatts (GW) of new nuclear power capacity is under construction in India; another 40GW is planned over the next 10 years. Even if only half of it gets built, that’s worth $35 billion in contracts.

But a more potent opportunity for U.S. businesses may be the jolt to Prime Minister Narendra Modi’s “Make in India” campaign. Lack of power is the single biggest obstacle to making India a manufacturing force. Electricity supply in northern parts of the country, which are poor and bursting with surplus labour, fell 6 percent short of demand in December.

Mining more coal will remain Modi’s first priority. But nuclear power will play an important supporting role. Currently it accounts for just 3 percent of India’s total electricity consumption; a legacy of the country’s pariah status in the global market for fissionable materials. That ended in 2008 with a civilian nuclear agreement with the United States. But the reactors that were conceived got stuck after India passed a law in 2010 making global equipment makers liable for accidents.

Iron Ore Extends Rout as China Slows, Banks Reduce Forecasts – by Jasmine Ng (Bloomberg News – January 26, 2015)

January 26, 2015

http://www.bloomberg.com/

Iron ore retreated to the lowest level in more than five years as a slowdown in China hurt the outlook for demand in the world’s biggest user while the largest mining companies add to supply, boosting a surplus.

Ore with 62 percent content delivered to Qingdao, China, tumbled 4.3 percent to $63.54 a dry metric ton, according to data by Metal Bulletin Ltd. That’s the lowest price on record going back to May 2009, and was the biggest one-day fall since Nov. 18. The commodity is 11 percent lower this year.

The raw material has been in a bear market since March after Rio Tinto Group (RIO), BHP Billiton Ltd. and Vale SA spent billions of dollars to boost low-cost output even as China slowed. Goldman Sachs Group Inc. joined global banks on Friday in cutting price forecasts for 2015, predicting a return to a bull market is probably more than a decade away. The love affair between China and iron ore is cooling, the bank said.

The decline in prices is mainly due to “slower demand growth for steel in China, together with the expected new iron ore supply,” Vanessa Lau, a Hong Kong-based analyst at Sanford C. Bernstein Ltd., said before the figure was released. Steel mills in China are also cutting output before the Lunar New Year, putting further pressure on prices, she said, referring to the national holiday next month when industrial activity slows.

Acquisitions are vital for survival, Goldcorp chairman says – by Rachelle Younglai (Globe and Mail – January 26, 2015)

January 26, 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.

Goldcorp Inc.’s quest for new mines is a matter of survival, according to the company’s chairman. “The only way mining companies can grow is through acquisitions and the only way they can survive is through acquisitions. Sometimes, I’m not sure people outside the mining business appreciate that,” Ian Telfer said in a recent interview.

“You have to keep buying stuff or you shrink … When you get to the size that we are, you have to buy things that are considerable sized and the opportunities are limited,” he said.

Last week, the Vancouver-based company made a half-a-billion dollar all-stock offer for Probe Mines Ltd. for its gold property in Ontario. The site is near Goldcorp’s mine in Timmins, Ont., which will allow the company to use its existing operations to develop the mine.

Finding cheaper ways to dig up metal has become every miner’s mission amid persistently weak commodity prices. Goldcorp enjoys the status of being the biggest gold miner by market capitalization, while producing less than the world’s two biggest producers, Barrick Gold Corp. and Newmont Mining Corp. It has a healthy balance sheet and is one of the few gold miners that can use its shares for acquisitions.

News Release: Temagami First Nation and Pacific North West Capital Corp. Sign Memorandum Of Understanding For River Valley PGM Project, Sudbury

January 26, 2015

January 26, 2015 – Vancouver, BC; Pacific North West Capital Corp. (“PFN” and the “Company”) (TSX.V: PFN; Frankfurt: P7J.F; OTC Pink: PAWEF) is pleased to announce that the Company and the Temagami First Nation have entered into a Memorandum of Understanding (MOU) dated December 5, 2014 in relation to PFN’s River Valley platinum metal project, located 100 road-km east of Sudbury, Ontario.

The MOU is designed to promote communication and foster a mutually respectful relationship, whereby Temagami First Nation are adequately informed and can provide input on PFN’s plans for exploration and development activities to be carried out on River Valley. The MOU provides a framework for how the two parties will work together to address potential impacts on Temagami First Nation rights and interests and confirms Temagami First Nation support for the Project.

Chief Arnold Paul of Temagami First Nation commented by stating “Mining in n’ Daki Menan has entered a new phase, The MOU recognizes that Temagami First Nation must be involved in a meaningful way in resource development projects. We look forward to a mutually beneficial relationship with Pacific North West Capital Corp.”

Harry Barr, Chairman and CEO of Pacific North West Capital Corp. expressed the Company’s appreciation for the support and cooperation demonstrated by everyone involved. “We look forward to working with Temagami First Nation to ensure that the River Valley Project is advanced in the spirit of continued partnership, mutual respect and good faith.”

Gloomy outlook hangs over mineral exploration Roundup in B.C. – by Karen McColl (CBC News North – January 26, 2015)

January 26, 2015

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

Yukoners looking for hopeful signs at annual event

Yukoners working in the mineral exploration industry are facing a gloomy outlook as they get together in Vancouver this week for the annual Mineral Exploration Roundup.

The federal Department of Natural Resources says exploration spending in Yukon was down in 2014, and Samson Hartland, executive director of the Yukon Chamber of Mines, doesn’t expect 2015 to be much better. “There isn’t really any projection for that to change,” Hartland says.

He is hoping to get a better sense of Yukon’s 2015 mining outlook at the Roundup in Vancouver. Hartland is one of a couple hundred Yukoners expected to be at the conference, which brings together thousands of mining representatives from across Canada and internationally.

Statistics from Natural Resources Canada show mineral exploration spending in the Yukon dipped 12 per cent last year, to about $88 million. Exploration spending decreased about 10 per cent nationally.

Hartland says Yukon’s mining industry is impacted by global markets, making investment capital hard to come by.

Liberals ‘on top’ of Ring of Fire, mines minister says – by Carol Mulligan (Sudbury Star – January 24, 2015)

January 26, 2015

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

When it comes to working with first nations to develop framework agreements for developing the Ring of Fire and approving environmental assessments for projects there, the Liberal government is “absolutely on top of it,” says Ontario’s mines minister.

Northern Development and Mines Minister Michael Gravelle said the province is continuing its “good work” on framework agreements and advancing the development corporation established to design and build infrastructure for the Ring of Fire.

The interim part of the development corporation is in place, Gravelle said in Sudbury on Friday, during a visit to boost the campaign of Liberal byelection candidate Glenn Thibeault.

The next stage is bringing the province’s full partners on board, including companies with holdings in the Ring of Fire, 540 kilometres northeast of Thunder Bay.

Gravelle said he’s also looking forward to having more formal discussions with FedNor and Natural Resources Minister Greg Rickford about the federal government’s “full engagement, if not matching dollars related to the project.”

Make Sudbury mining centre: Robinson – by Staff (Sudbury Star – January 24, 2015)

January 26, 2015

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

Green Party candidate David Robinson says Sudbury is strategically positioned to reap the benefits of developing northwestern Ontario’s Ring of Fire, as long as every effort is made to turn Sudbury into a global centre for mining excellence.

Local leadership in developing meaningful partnerships with business, industry, the education sector and higher orders of government are key to Robinson’s plan. “My plan for Northern Ontario puts Sudbury front and centre on a global stage, and will make Sudbury the staging area for developing the Ring of Fire,” Robinson said in a release.

“My plan starts with giving Northern communities the incentive and the tools that they need to seize control of their own destinies. For too long, Sudbury and other Northern communities have had to go cap in hand to Toronto, rather than being able to quickly seize local ideas and initiatives.”

Robinson said Sudbury’s local potential can be unlocked by building partnerships with job-creators like Laurentian University and Sudbury’s vigorous mining supply sector. Vacant land in the city’s downtown is strategically located to host new mining supply startups ready to capitalize on developing the Ring of Fire.

Radical left Syriza surges to Greek election win – by Eric Reguly (Globe and Mail – January 26, 2015)

January 26, 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 anti-establishment, radical left Syriza party surged to victory in Greece, the first time an anti-austerity protest movement has won a national election in Europe since the 2008 financial crisis shattered the economies of the continent’s Mediterranean flank.

In his victory speech in central Athens on Sunday night, Syriza’s youthful leader, Alexis Tsipras, a former communist, told thousands of jubilant supporters that “Greece leaves behind the austerity that ruined it … leaves behind five years of humiliation.”

He immediately threw down a challenge to the European Union, the main sponsor of the twin bailout packages that spared Greece from bankruptcy but whose demands for austerity – spending cuts and tax hikes – pushed the country into crushing recession. Since the crisis started, the Greek economy has shrunk by 25 per cent and millions of people were pushed into outright poverty.

But before he can launch his assault on the EU’s bailout terms, Mr. Tsipras has to form a government and that, depending on the final vote tally, may require him to form a coalition with a potentially unruly junior party. In the May 2012 election, Syriza was given the opportunity to form a coalition government but couldn’t come through.

What’s so smart about unaffordable housing? – by Konrad Yakabuski (Globe and Mail – January 26, 2015)

January 26, 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.

Of all the lofty attributes Canada’s world-class cities have touted in recent years, making a home unaffordable for average folks is perhaps the least enviable. It was also avoidable. But self-proclaimed “smart growth” policies have proven the opposite of smart, contributing to an affordability crisis with little to show in the way of a cleaner environment.

The biggest losers are millennials now entering their 30s, a generation urban planners and creative-class types predicted would always prefer downtown living over the suburbs. For these echo boomers, moving up to a single- or semi-detached home to raise a family is no longer even an option. Bringing up junior in a 600-square-foot condo is not as cool as it might sound. Yet that’s the choice many face.

Vancouver is considered the world’s second-most unaffordable housing market, after Hong Kong. A median-priced Vancouver home costs 10.6 times the city’s median household income, according to the latest Demographia International Housing Affordability Survey. Vancouver’s price-to-income ratio has doubled in the past decade.

At 6.5 times income, Toronto’s house price-to-income ratio has risen 65 per cent over the same period. Demographia defines a multiple above 5.1 as “severely unaffordable.” Toronto is now even more unaffordable than New York.