NEWS RELEASE: ONTARIO HIGH SCHOOL STUDENTS & TEACHERS AWARDED OVER $42,000 IN CASH PRIZES AT ROYAL ONTARIO MUSEUM

Best Overall Entry: Women, The Future and Mining – by Marika Moskalyk, Marymount Academy, Sudbury

To view all the winning entries, click here: http://sytykm.oma.on.ca/peopleschoice/awardwinners?year=2015&utm_source=2015+SYTYKM+news+release&utm_campaign=SYTYKM+winners+announced&utm_medium=email

TORONTO, Ontario – The Ontario Mining Association today announced the winners of 7th annual So You Think You Know Mining video competition, which challenges students to tell imaginative stories about the benefits of mining to society.

Nearly 300 videos from across the province were evaluated by an independent panel of media and mining professionals to determine the winning entries in nine award categories, with prize money ranging from $2,500 to $5,000, and each winning video earning a $500 bonus for the contestant’s school. In addition, the public voted online to select the winner of the $2,500 People’s Choice Award.

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Fortune Lost: The short, brutal and costly ride of China Investment Corp. in Canada – by Peter Koven and Claudia Cattaneo (National Post – May 29, 2015)

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

As May 19th, 2015 approached, China Investment Corp. was faced with a scenario that every pension or sovereign wealth fund dreads: whether to allow one of its key investments to live or die.

SouthGobi Resources Ltd. has become a sad story in Canada’s mining sector. The Vancouver-based company, which operates in Mongolia, is almost entirely out of cash. Its operations are deep in the red. Its CEO recently resigned. And a Mongolian court this year fined the company US$18.2 million in a very dubious tax-fraud case.

SouthGobi had a US$7.9 million interest payment coming due to China Investment Corp. (CIC) on the 19th that it was in no position to pay. State-owned CIC had two options, neither very attractive: call the loan and potentially force SouthGobi into creditor protection, or defer the payment and let the company stagger along for another couple of months trying to seek rescue funding. Not surprisingly, CIC chose the latter.

The mess at SouthGobi is just the latest misfortune among several significant bad calls CIC ended up making in its investments in Canada. Since beginning to stake major capital here six years ago, the corporation’s short experience in Canada is a story of lousy timing, costly miscalculations, and an investment strategy too vulnerable to the allure of speculative ventures talked up by sophisticated stock promoters — and not enough on conservative plays better able to withstand volatile commodity markets.

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The iron ore price equation that makes Fortescue attractive for China – – by Anne Hyland (Australian Financial Review – May 29, 2015)

http://www.afr.com/

CITIC Group and Baosteel Group, which are said to be interested in Fortescue Metals Group, are two of the most politicised companies in China. Baosteel is China’s leader in the steel industry and CITIC was anointed to make significant investments outside China, such as the $10 billion Sino Iron project, which has been described as the worst mining investment in Australia in the past decade.

What is almost certain is that CITIC and Baosteel, which is developing an iron ore project with Aurizon, won’t bid against each other for Fortescue or other resource companies. It would be politically unpalatable in China and it’s typically not what China Inc does.

While there would be a dozen companies in China capable of taking out Fortescue, only one would get the green light, say veteran China observers.

At the Stockbrokers Association conference on Thursday, Li Xinchuang, president of the China Metallurgical Industry Planning Association, firmed up speculation with comments that Fortescue would benefit from a Chinese investor, while saying he didn’t believe the argument that there was a global oversupply of iron ore.

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China plans to create US$16 billion gold stockpile to help drive new Silk Road – by Andrew Critchlow (The Telegraph/Financial Post – May 27, 2015)

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

China plans to establish a US$16 billion gold fund to stockpile the precious metal, in a move expected to provide a jolt to flagging prices.

State-endorsed media in China has reported that Shandong Gold Group and Shaanxi Gold Group will take stakes of 35 per cent and 25 per cent respectively in the new fund alongside other investors, as part of a scheme known as the “Silk Road” initiative aimed at boosting trade.

The new entity, which may include an exchange-traded fund for gold and investments in miners of the precious metal, aims to raise the US$16 billion in three tranches, according to the report.

News of the fund could restore some impetus to the gold market, which has been struggling to offset the growing strength of the US dollar. Gold fell below the psychologically important $1,200 per ounce level at the start of the week as traders bet on the timing of an expected rate rise by the US Federal Reserve this summer.

China is the largest producer and consumer of the precious metal, playing a significant role in determining the overall direction of the gold market. According to the World Gold Council’s latest market analysis, jewellery demand in China fell by 10 per cent year-on-year in the first quarter as slowing economic growth hit consumer sentiment in the world’s second-largest economy.

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The road to recovery for Ontario’s mining sector is paved in gold – by Robert Spence (Mining Global.com – May 28, 2015)

http://www.miningglobal.com/

Ontario is one of the top mining jurisdictions in the world. In recent years, the jurisdiction has been in a downturn.

The province, which is home to more than 40 operating mines, is the largest producer of gold, nickel, copper and platinum metals in Canada. Ontario’s mineral production is valued at $9.2 billion with more than $4 billion annually invested in research and development (R&D), exploration, construction and equipment.

In a recent article by NorthernLife.ca, industry stakeholders agreed that Ontario is falling behind as a mining jurisdiction. The article spotlights that while the province has shifted its focus to the Ring of Fire, which many believe is moving slower than anticipated, key figures see the government neglecting other parts of the province.

“All we hear about is the Ring of Fire. Let me explain something about the Ring of Fire. It’s not the only thing going on in this province. I’m sick to death of it,” said Gino Chitaroni, president of the Northern Prospectors Association.

“We have a lot of projects out there that could be economic very shortly, but we have to encourage them,” Chitaroni said. “I don’t see it happening.”

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Norway oil fund plans to withdraw from coal-burning utilities – by David Crouch and Pilita Clark (Financial Times – May 27, 2015)

http://www.ft.com/intl/world/europe

Gothenburg and London – Norway’s $916bn oil fund will consider pulling billions of dollars of investments out of coal in a move that threatens European utilities using the fossil fuel to generate power.

Members of the finance committee of Norway’s parliament confirmed on Wednesday night that opposition and governing parties had reached agreement that the fund should withdraw investments from companies whose business relies more than 30 per cent on coal, measured either by revenue from fossil fuel or by the percentage of power they generate from it.

The proposal will be put to parliament on Thursday for a vote on June 5 but cross-party agreement means it is very likely that it will be passed.

Norway’s move is one of the most significant responses yet to a global divestment campaign that aims to ‎stigmatise the use of coal and other fossil fuels because of their input to climate change.

“This will make a huge difference, it will have influence on ordinary miners and energy companies,” said Terje Breivik, a Liberal party member of the finance committee. “The main explanation is that the oil fund itself is aware of the financial risk due to climate problems.”

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The History of Erie Mining Company (Hometownfocus.us – May 29, 2015)

http://www.hometownfocus.us/

A project to document the history of the pioneering research, preliminary pilot plant, and construction and operation of the world’s first completely integrated taconite mine.

In early 2014, a team of willing and dedicated former Erie Mining Company/ LTV Mining employees began meeting monthly at the Hoyt Lakes City Hall. The team set as its purpose to document the initial development of Minnesota’s taconite Industry by preparing a history of the pioneering research, construction and operation of Erie Mining Company and the establishment of the town site of Hoyt Lakes.

Partnering with the St. Louis County Historical Society, the group established a goal of publishing a quality book, containing both the technical and pictorial history of the mine, plant site, railroad, power plant and harbor, town sites of Hoyt Lakes, Taconite Harbor, and Murphy City as well as the personal stories and experiences of the employees, contractors, vendors, and “town folk” who built and operated one of the world’s largest and most innovative green field mining operations, and one of our nation’s largest private capital enterprises of the past century.

The group contacted local historians, the Minnesota Historical Society and others, who confirmed that there are no comprehensive, historically accurate books documenting the history of the Erie Mining Company, or for that matter, any of Minnesota’s taconite mining and processing operations.

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Editorial: Making the case for subsidizing Arctic work -Editorial (Northern Miner – May 28, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Five industry groups focused on mining and mineral exploration in northern Canada have produced a timely report that quantifies the extra costs of carrying out work in Canada’s remote Arctic and sub-Arctic areas, and makes recommendations on how various levels of government can encourage mining activity in these places.

Called Levelling the playing field: Supporting mineral exploration and mining in remote and northern Canada, the report was produced by the Association of Consulting Engineering Companies Canada, the Mining Association of Canada, the Northwest Territories and Nunavut Chamber of Mines, the Prospectors & Developers Association of Canada and the Yukon Chamber of Mines.

They describe a “hefty cost premium” associated with working in remote and northern parts of Canada, and the challenges that industries in southern Canada don’t have to face: remoteness, severe weather, undeveloped infrastructure, and in many cases, sparse or no populations for hundreds of kilometres.

The main — and not particularly surprising — finding, backed up by empirical evidence, is that the “cost premium for both exploration and mining is directly linked to the transportation deficit” in remote and northern Canada, and that the “primary driver of cost variation was the distance of a project from the transportation infrastructure required to service the needs of the project.”

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China Dotes on South American Infrastructure – by Tim Maverick (Wall Street Daily – May 28, 2015)

http://www.wallstreetdaily.com/

In April, I told readers about the billions of dollars China was pumping into the New Silk Road, connecting Pakistan to China. But China isn’t stopping there. It seems the economic powerhouse has also set its sights on South America.

Chinese Premier Li Keqiang just completed an extensive nine-day tour of Brazil, Peru, Chile, and Colombia. These four countries account for 57% of China’s quickly increasing trade with South America.

In January, Li promised $250 billion in investment into South America over the next decade. As of the end of 2014, China had already invested nearly $100 billion into its favorite countries.

On his current tour, Li is lavishing billions more on a number of deals, most of which center around infrastructure, such as rail.

You see, China is unflinching in its quest for power and security. Meaning the Chinese want to ensure speedy delivery of the precious commodities produced in South America.

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Chinese President’s new Silk Road plan will fail unless ideas are free to travel – by Carl Mortished (Globe and Mail – May 29, 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.

“One Belt, One Road” is China’s slogan for a 21st-century revival of the ancient trading routes that linked Han Dynasty silk merchants with Central Asia and the Mediterranean. President Xi Jinping’s big idea is investment in roads, railways, ports and pipelines that will link China to the world.

However, the ancient Silk Road was more than a caravan of camels loaded with stuff. It was also a convoy of ideas, and this may be where the Chinese Communist Party’s great ambition comes a cropper.

The first question you have to ask is why China needs such a vision of a new Silk Road.

The Chinese President sought to give a romantic gloss to his plan when he first mentioned it in 2013 on a visit to Kazakhstan, noting the thousands of years of trade between the two nations on the Silk Road. Last year, he announced a $40-billion (U.S.) infrastructure fund to build roads, railways, ports and airports across central and south Asia, and this year China reaffirmed its political ties to Pakistan with a promise of $45-billion of infrastructure investment.

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S. Africa Plans $124 Million Payout for Lung-Diseased Miners – by Kevin Crowley (Bloomberg News – May 29, 2015)

http://www.bloomberg.com/

South Africa plans 1.5 billion rand ($124 million) of payouts from a compensation fund for miners suffering from lung diseases that affect about 700,000 people, Health Minister Aaron Motsoaledi said.

Companies including AngloGold Ashanti Ltd., the world’s third-biggest miner of the metal, are participating in the project rolled out by the Department of Health to unblock a backlog of 500,000 claims. Compensation will apply to sufferers of tuberculosis, silicosis, and other illnesses, Motsoaledi said. Workers from other countries are also eligible to apply, he said.

“Our goal is to compensate current and ex-mineworkers who have submitted valid and compensable claims,” he told reporters in Carletonville, a gold-mining town 86 kilometers (53 miles) west of Johannesburg. “I’m here to pay back the money.”

Silicosis, a lung disease caused by inhaling dust from mines, causes scar tissue in the lungs, increasing vulnerability to tuberculosis that can kill more than half of sufferers if not properly treated. South Africa is source of about a third of all gold yet produced globally and the continent’s biggest coal producer.

Separately, lawyers representing sufferers of silicosis say companies including AngloGold and Harmony Gold Mining Co. are to blame for workers catching the disease because they operated without adequate ventilation for the past 60 years.

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Teck Resources to temporarily close six Canadian coal mines – by Rachelle Younglai and Eric Atkins (Globe and Mail – May 29, 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.

Teck Resources Ltd. will temporarily shutter its six Canadian metallurgical coal mines this summer, a move that will have ripple effects in other sectors of the Canadian economy.

The suspensions are Teck’s latest step to deal with weak commodity prices and a glut of supply in the market. The Vancouver-based company already reduced its dividend, cut 600 jobs and shelved plans to restart one of its mines in British Columbia.

But that was not enough to deal with the prolonged slump in metallurgical coal, which is used to make steel and is down 70 per cent over four years.

“Rather than push incremental tonnes into an oversupplied market, we are taking a disciplined approach to managing our mine production in line with market conditions,” Don Lindsay, Teck’s chief executive officer, said in a statement.

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 [Howard Hampton Federal NDP Ring of Fire Advisor] Former Ontario NDP leader makes jump into federal politics (tbnewswatch.com – May 29, 2015)

http://www.tbnewswatch.com/default.aspx

Howard Hampton is getting into federal politics.

The former Provincial NDP leader announced Friday morning that he’s seeking the nomination for the federal NDP in Kenora. “The conservatives under Stephen Harper have not been kind to Northwestern Ontario,” he said.

This is a developing story. More will be published soon. You can read the full NDP-issued media release below

Hampton to seek the NDP nomination for Kenora

Thunder Bay – Howard Hampton announced today he will run for the NDP nomination for the federal riding of Kenora in the upcoming election.

“I’m excited to announce today that I will be seeking the NDP candidacy for the Kenora riding in the upcoming federal election,” said Hampton. “Whether it was as a provincial cabinet minister, MPP, NDP Leader, or Special Advisor to Tom Mulcair, I’ve proudly stood up and fought for the people of Northwestern Ontario for over 20 years. I hope to earn the support of the NDP members in the riding to run as their candidate.”

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Japan push into Africa resources sputters, helps China – by Yuka Obayashi (Reuters U.S. – May 29, 2015)

http://www.reuters.com/

TOKYO, May 29 (Reuters) – A Japanese government drive to secure access to resources in Africa has sputtered as some companies shy away from investing due to slumping commodity prices and worries over political stability, helping China as it races to import raw materials from the continent.

Around two years ago, Japan said it would provide about $2 billion mainly to back African commodity projects by its firms as part of a move to secure supplies of materials such as coking coal and copper it needs to churn out steel and electronic components.

But worries over the stability of the investment environment in some African nations, along with falling commodity prices, have sapped momentum from that push, Japanese firms said at a mining conference on Thursday and Friday.

A lack of infrastructure and concerns over resource nationalism were also cited as reasons.

“To invest in mine development, it is necessary to see an improvement in Africa’s investment environment so it is politically, sociologically and economically stable,” Shigeru Oi, president of JX Nippon Mining & Metals Corp, Japan’s top copper refiner, said in a speech.

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Nine Months After Polley Breach, Alaskans Seek Compensation Guarantee from BC – by Jordan Wong (TheTyee.ca – May 29, 2015)

http://thetyee.ca/

Proposed northern BC mines ‘source of great angst in Juneau.’

Earlier this month, Heather Hardcastle, a commercial fisherwoman from Juneau, Alaska met in Williams Lake, B.C. with members of the Tsilhqot’in First Nation. They shared a meal of wild Alaskan salmon that Hardcastle brought as a symbolic gesture: This fish was a reminder of all there was to lose.

After lunch, Hardcastle and her team of Alaska visitors boarded a helicopter and flew 25 minutes away to the site of the Mount Polley accident, the scene of a massive breach last August of its mine waste dam near the town of Likely, B.C.

The breach released millions of cubic metres of contaminated water into Quesnel Lake, which feeds into the Fraser River.

Nine months later, Jacinda Mack, a Xatsull woman from the Soda Creek reserve and one of many residents living near the path of the spill, invited the Alaskans to Williams Lake to see firsthand the main effect of that accident.

On the Fraser River, contamination from the mine breach threatened the run of Sockeye salmon that spawns in Quesnel Lake.

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