April 7, 2015 – Republic of Mining

Harte Gold has eyes on 2016 production – by Ian Ross (Northern Ontario Business – April 7, 2015)

April 9, 2015April 7, 2015

Stephen Roman, president-CEO of Harte Gold, could bring the first new gold mine in Hemlo into production in 30 years.(Photo by Stan Sudol) — Stephen Roman, president-CEO of Harte Gold, could bring the first new gold mine in Hemlo into production in 30 years. (Photo by Stan Sudol)

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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

If all goes according to plan, Harte Gold could soon be commissioning the first new mine in the Hemlo gold belt in 30 years. President and CEO Stephen Roman said the high-grade deposit at the company’s Sugar Zone property has open-ended potential that could lead to a new gold camp in northeastern Ontario.

“The project’s really ready to go now,” said Roman, whose Toronto-based junior has a permit in hand to take a massive 70,000-tonne bulk sample by the middle of this year.

The Sugar Zone Property is 60 kilometres east of the Hemlo area gold mines and about 25 km north of White River off the Trans-Canada Highway. Roman comes from good mining stock. His father, Stephen B. Roman, a Canadian Mining Hall of Famer, steered Denison Mines in Elliot Lake for 35 years. But the younger Stephen G. Roman is already a well-established name in Northern Ontario mining circles.

Ontario gives northern industry permanent relief from energy costs (CBC News Thunder Bay – April 7, 2015)

April 7, 2015

http://www.cbc.ca/news/canada/thunder-bay

The Northern Industrial Electricity Rate Program will carry on indefinitely, province says

A program that reduces energy costs for northern industries — like mining and forestry — will carry on indefinitely, the Ontario government says.

Speaking at a news conference at Resolute Forest Products’ Thunder Bay pulp mill on Tuesday, Northern Development and Mines Minister Michael Gravelle told reporters that Ontario would commit up to $120 million a year permanently to the Northern Industrial Electricity Rate Program, which was to expire in March of 2016.

First introduced in 2010, the program is a benefit to companies such as Resolute, Goldcorp, AV Terrace Bay, and North American Palladium, Gravelle said.

“It positions them to certainly be able to maintain operations but also potentially expand and create more jobs,” he added. The program can help cut up to 25 per cent from energy costs incurred by qualifying businesses. “It reduces our costs significantly on our site,” said Goldcorp’s Musselwhite mine general manager Bill Gascon.

“Our second highest cost on our site in production is energy — behind labour — so it’s huge for us. We’re a very energy intensive industry.”

Tax office pursues BHP Billiton and Rio Tinto over Singapore tax shelter – by Neil Chenoweth (Australian Financial Review – April 6, 2015)

April 7, 2015

http://www.afr.com/

Mining giants BHP Billiton and Rio Tinto are being pursued by the Australian Taxation Office for channelling billions of dollars in profits from iron ore sales through companies that pay almost no tax in Singapore.

While BHP Billiton and Rio TInto are Australia’s largest taxpayers, The Australian Financial Review has obtained documents that show the two mining companies report $2.6 billion a year in profits in their Singapore marketing hubs where they pay tax rates as low as 2.5 per cent.

The arrangements save the two companies more than $750 million a year in Australian tax and the ATO regards it as tax avoidance under the transfer pricing rules. The ATO is pursuing multibillion-dollar claims against each company, says a source with direct knowledge of the disputes.

The exact amounts of the potential tax bills are unclear and both companies have fought the ATO for years and argue their Singapore operations were not set up to reduce tax.

With scores of Australian companies rushing to open their own Singapore operations, the BHP Billiton and Rio Tinto cases shape as key precedents for the ATO, which has been warning of compliance problems with marketing hubs since 2010.

As iron ore slides, China buyers inflict more pain on small miners – by Manolo Serapio Jr (Reuters U.S. – April 7, 2015)

April 7, 2015

http://www.reuters.com/

SINGAPORE, April 7 (Reuters) – Chinese steelmakers are unwittingly helping the world’s biggest iron ore miners tighten their grip on global production by demanding to pay for shipments of the raw material based closely on depressed spot prices.

The three largest and most profitable iron ore producers – Australia’s Rio Tinto and BHP Billiton, along with Brazil’s Vale – have been happy to sell at or near spot despite plunging iron ore prices, while their smaller rivals struggle to make money.

Smaller producers, including some higher cost Australian miners, want to continue with deals based on longer-term averages of prices, looking to hedge against further falls in the market.

But buyers in the world’s largest consumer of iron ore are having none of it, with many Chinese mills demanding cargoes priced as close as possible to their delivery date.

“Pricing moves around with the steel mills. It used to be all based on a monthly average. Now you find the steel mills and traders perhaps trying to anticipate low points and suggesting quotation periods of maybe two weeks,” said Morgan Ball, chief executive of Australian iron ore miner BC Iron Ltd.

As beneficiation debate rages, experts insist focus must be on niche sectors, upstream manufacturing – by Jade Davenport (MiningWeekly.com – April 2, 2015)

April 7, 2015

http://www.miningweekly.com/page/americas-home

JOHANNESBURG (miningweekly.com) – The contentious debate surrounding South Africa’s beneficiation strategy and how best it should be undertaken has been placed under the glare of the spotlight again and has served to intensify tensions between government and the mining industry over continuing mineral policy uncertainty.

The debate flared up again in February follow- ing Mineral Resources Minister Ngoako Ramathlhodi’s announcement at the Mining Indaba that government intended to investigate the possibility of imposing developmental pricing on key strategic minerals and compelling producers of precious metals to sell at reduced prices.

Developmental pricing would be lower than the already-agreed-to “mine gate price”, essentially an export parity price less transport, which was a hard-won concession on the part of mining companies during discussions on the drafting of the Mineral and Petroleum Resources Development Act (MPRDA) Amendment Bill in 2013.

Government intends to use developmental pricing to enforce the beneficiation of the country’s still extensive mineral resource endowment, a mechanism it believes will stimulate the South African economy by diversifying sectors, enhancing the quantity and quality of exports, and creating decent employment.

Local View: A single mining job pays a lifetime of dividends – by Kirk D. Haldorson (Duluth News Tribune – April 2, 2015)

April 7, 2015

http://www.duluthnewstribune.com/

I grew up one of six children here in northern Minnesota, and my father was employed with Reserve Mining in Silver Bay. Growing up in a mining town, I never really thought of mining as anything but a normal, regular industry; and quite possibly I took for granted that it would always be there.

We grew up fishing, camping and swimming in the Boundary Waters Canoe Area Wilderness. We grew up planting trees for the U.S. Forest Service to help fund our college. We would plant as many as 200,000 trees a year and spend endless days enjoying the beautiful forests.

Saying all this, I never would support something such as PolyMet Mining if I thought it would harm our environment. I can honestly say there is no one who loves nature and the wilderness more than me. I feel blessed to see some of the trees I planted so many years ago now being harvested for this generation.

We need to either grow it or mine it if northern Minnesota is going to provide for future generations. My parents raised six children, and all six went on to some sort of higher education — all because of one mining job.

All six children went on to get married, and all six children and their spouses currently live, work and pay state income taxes to Minnesota — all due to one mining job.

‘Walking dead’ on the TSX Venture Exchange: How are ‘zombie’ companies surviving? – by Peter Koven (National Post – April 7, 2015)

April 7, 2015

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

Management at the TSX Venture Exchange would probably appreciate it if Tony Simon just shut his mouth for a while.

As the co-founder of the Venture Capital Markets Association, Mr. Simon is an unlikely torchbearer for the theory that Canada’s market for junior resource stocks is broken and the Venture Exchange is part of the problem. But he has assumed that role with gusto in the past few weeks as his thoughts have reached an increasing number of ears. It is hard to imagine that anyone else is causing more headaches for the Venture Exchange these days.

Mr. Simon, for his part, thinks he is just stating the obvious. “This is not something that’s an unknown problem,” the Vancouver-based entrepreneur said. The Venture management team has fired back, completely denying his claims that they are not doing their jobs properly.

However one feels about the debate, all would agree that Mr. Simon’s research paints a frightening portrait of Canada’s junior exploration sector. It raises questions about how hundreds of tiny resource companies can continue to exist. Sources said that auditors are offering these companies cut-rate fees to maintain their viability.

Media Release: Stop the fire sale of Ontario’s natural resources

April 7, 2015

Green Party Ontario leader Mike Schreiner is calling on the Liberal government to end the fire sale of Ontario’s natural resources as the government struggles to balance its budget.

(April/01/2015) Queen’s Park – “It’s irresponsible for the Liberals to sell off our natural resources at rock bottom prices, especially when the province’s finances are a mess,” says Schreiner. “The people of Ontario deserve their fair share of the province’s resource wealth.”

The Liberal government is looking at selling public assets such as Hydro One and extracting more money from alcohol sales. Yet, the Liberals have made no effort to maximize the value of Ontario’s natural resources, even though the Drummond Report called for increasing natural resource revenues, which would also create incentives to use them efficiently.

Ontario has the lowest effective mining royalty rate in Canada after all tax breaks are counted. In 2010 and 2011 the province’s mining industry extracted metals and minerals valued at $17 billion but only paid 1.4% ($250 million) for these resources. The average Canadian rate for the same period was 5.6%. Saskatchewan’s public return was over 9%.

Ontario only charges 11.5 cents/tonne for aggregate extraction. Quebec charges 50 cents/tonne. The province’s water-taking levy for industrial purposes is only $3.71 per million litres.

India’s $18 Billion Mistake? – by Dhiraj Nayyar (Bloomberg News – April 1, 2015)

April 7, 2015

http://www.bloombergview.com/

A decade ago, Korean steelmaker Posco’s proposed $12 billion investment in the eastern Indian state of Odisha (then still known as Orissa) was hailed as the country’s biggest-ever foreign investment commitment, as well as a vote of confidence in India as a potential manufacturing power. Ten years later, Posco’s reported pullout is a PR debacle and a blow to Prime Minister Narendra Modi’s hopes to convince companies to “make in India.”

Worse, it’s the government’s success rather than its policy failures that appear to have driven out the steelmaker. On the heels of a lucrative auction of telecom spectrum, which garnered bids totaling a record $18 billion last week, the government is set to sell off iron ore and the rights to limestone mines by auction as well. Under the old regime, the state would have allocated these kinds of resources to industry at a nominal price. Now that the government is looking to maximize profits by putting them up for bids instead, Posco has apparently decided that the additional costs make the Odisha project unappealing.

The political logic of auctions is obvious. Under the previous Congress-led government, the opaque process of allocating resources to private companies quickly led to accusations of cronyism and corruption. Anger over the 2G spectrum scandal of 2008 and the coal scandal of 2009 played a huge role in Modi’s landslide victory last year.

Unfortunately, criticism has focused on the idea that the government gave away India’s resources too cheaply.

Red Dog (Mining Themed Australian Movie – 2011)

April 7, 2015

http://en.wikipedia.org/wiki/Main_Page

Red Dog is a 2011 Australian family film directed by Kriv Stenders and produced by Nelson Woss and Julie Ryan. The film is based on a true story from the novel Red Dog by Louis de Bernieres about Red Dog.[2] At the 2011 Inside Film Awards, Red Dog was nominated in nine categories and won seven, including best feature film. The film was also nominated for seven AACTA Awards and won for Best Film.

Plot[edit]

In 1979, a truck driver Thomas (Luke Ford) arrives in Dampier, Western Australia, late one night. Upon entering the town pub he sees the silhouettes of a group of men, one of whom is holding a gun. Believing it is a murder, he rushes into the next room, where he sees that the men are trying to put down an apparently sick dog (Koko). Unable to bring themselves to carry out the euthanasia, the men, with Thomas, retreat to the bar.

Buddies (Mining Themed Australian Movie – 1983)

April 7, 2015

http://www.ozmovies.com.au/

(Note: this synopsis and listing contains spoilers).

Sapphire-grubbing Mike (Colin Friels) gets the show underway by wildly fornicating with Stella (Kris McQuade).

Mike is buddies with partner grubber Johnny (Harold Hopkins) as they hunt for sapphires in central Queensland – in even more wretched tin shanties just across the way in this small community lives tall Ted (Bruce Spence) and bearded, aged Hans (Ralph Albring).

The buddies decide that they’ll peg some new land, but then the big boys, led by evil, smirking Andy (Dennis Miller), with guns and ‘dozer drawn, move in on their stake. ‘Word is they’re pegging everything that isn’t nailed down’, says Harold, and the ‘dozer shows Andy means business by flattening Mike’s car.

My Bloody Valentine 3D (Mining Themed American Horror Movie – 2009)

April 7, 2015

http://en.wikipedia.org/wiki/Main_Page

My Bloody Valentine 3D is a 2009 American horror film, and a remake of the 1981 slasher film of the same name. The film was directed and edited by Patrick Lussier, and stars Jensen Ackles, Jaime King and Kerr Smith. The film had a 3D theatrical release;[2] it was released on January 16, 2009 by Lionsgate to generally mixed reviews but nevertheless a box office success. It was released on DVD and Blu-ray on May 19, 2009.

On the Valentine’s Day of 1997, in a small town, a cave-in on the north side of a Hanninger mine trapped six miners. Six days later, rescue teams found five dead miners and the comatose Harry Warden (Richard John Walters), who survived by killing the other miners with a pickaxe, allowing himself to breathe. Tom Hanniger (Jensen Ackles), the mine owner’s son, was blamed for the mine disaster because he forgot to vent the methane lines and caused a cave-in, but also Harry Warden for killing the miners.

[Vale] Thompson miners safe after underground fire – by Lara Schroeder and Peter Chura (Global News – April 6, 2015)

April 7, 2015

http://globalnews.ca/

WINNIPEG – All of the miners who were stuck underground after a fire broke out in a Thompson, Man., nickel mine have safely returned to the surface.

The eight miners who were still waiting to be rescued Monday afternoon were safely pulled out by 1:25 p.m., mine owner Vale Inco said.

The fire trapped 39 miners in the Vale Inco nickel mine in Thompson, Man., Sunday night.

The 39 mine employees moved to “refuge stations” after a remotely operated piece of equipment called LHD (load-haul-dump) caught fire at about 3:30 p.m. Sunday at the company’s T1 mine, Vale spokesman Ryan Land said in a news release Monday.

Shanda Skode of Penticton, B.C., said her husband was trapped overnight and she wasn’t happy with the way the company handled the situation.

‘They called me six hours after he was supposed to be back on the surface,” she said. Her husband, who she preferred not to name, was supposed to surface at 5 p.m. CT Sunday, and she worried when he didn’t text her as usual and she couldn’t contact him.

A new deal for the Ring of Fire – by Rick Millette (Thunder Bay Chronicle-Journal – April 5, 2015)

April 7, 2015

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

Rick Millette is senior executive director: Ring of Fire at Northern Policy Institute.

The cards have been shuffled on the ownership and history of the Ring of Fire. Noront Resources has made a brilliant play in buying the claims of Cliffs Natural Resources for a small fraction of what was originally paid for them. Noront’s shares jumped on the news. Optimism has returned.

The recent announcement of a road study for an east-west link to First Nations communities near the Ring has furthered hopes for movement on the entire project. The study is inclusive of the Matawa Tribal Council.

Some of their communities will be connected to the outside world in a way that will help improve living conditions by making everything from food to building materials more affordable. And, whatever route the road takes, it will get Noront closer to its proposed mine site.

The cherry on the cake is that the joint federal-provincial funding of the road study has served as an olive branch, calming the stormy rhetoric between the two levels of government. From shareholders, to landholders, to vote holders, everyone is beaming.

Ontario Government is blind to exploration problem – by Rick Owen (Northern News – April 2, 2015)

April 7, 2015

http://www.northernnews.ca/ [Kirkland Lake]

KIRKLAND LAKE – Monday and Tuesday there were about 300 delegates attending the Northeastern Ontario Mines and Mineral Symposium, at Northern College.

Every three years the Northern Prospectors’ Association host this event, which is a great time for networking with prospectors, geologists, mining companies and Ministry of Northern Development and Mines representatives.

Once again the organizing committee from the NPA did an excellent job and considering how small the active membership in NPA this was a huge accomplishment. While the symposium was officially two days long, it was in fact four days as the NPA also hosted courses in the two days leading up to the symposium.

During the symposium there were several talks given, on everything from exploration techniques to updates on projects, many of which are in the Kirkland Lake area. The NPA did a great job keeping everything running on schedule, which in itself is a major achievement.

Another component of the symposium is the trade show area, where local exploration companies, service providers and the provincial government had booths. The trade show floor was a busy place as there scheduled coffee and lunch breaks so delegates had time to visit the booths.