May 7, 2015 – Republic of Mining

South African Empowerment Rule Change May Hurt Top Companies – by Franz Wild and Christopher Spillane (Bloomberg News – May 6, 2015)

May 7, 2015

http://www.bloomberg.com/

Some of the biggest companies in South Africa could fall foul of regulations and lose business after the government changed how it will evaluate their compliance with rules to award shares to black people.

Black empowerment programs benefiting community and special interest trusts and employees will carry less weight when setting a company’s compliance rating than previously, the Department of Trade and Industry said in a notice on Tuesday. The rating is needed to secure business from government and some other companies.

“It’s a really big issue,” Verushca Pillay, a director at Cliffe Dekker Hofmeyr’s corporate and commercial practice in Johannesburg, said by phone on Wednesday. The black empowerment “compliance level is relevant to them winning business from other companies and from government,” she said.

South Africa’s empowerment regulations are designed to boost participation in the economy by black citizens and other groups who were disadvantaged during apartheid, which ended with all-race elections in 1994. The rules had given companies benefit for training black managers, promoting women and helping develop communities, as well as handing over ownership.

Participation of First Nations vital to success – by Tim Gitzel (Saskatoon StarPhoenix – May 7, 2015)

May 7, 2015

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

Tim Gitzel is president and CEO of Cameco Corporation.

Development of Canada’s wealth of resources has potential to deliver many generations of prosperity for Canadians.

We have what the world needs. Over the next decade, an estimated $675 billion in resource development projects are planned across Canada. This is a truly incredible opportunity.

We can attract billions in capital investment and become a trusted, reliable supplier of energy, minerals and other materials for the rapidly growing economies of China, India and other developing nations. These projects would deliver high-quality employment and business opportunities for many thousands of Canadians and strong, sustained revenue for governments.

However, without respectful, mutually beneficial partnerships between industry and Canada’s aboriginal people, none of this will happen.

Almost all of the major resource projects on the horizon have a footprint on aboriginal traditional territory. Aboriginal people must be effectively consulted and engaged in the development of natural resources and must share in the prosperity it brings. Otherwise, the incredible opportunity will be lost.

Bank Of America Backs Away From Funding Coal Mining – by Kate Sheppard (Huffington Post – May 6, 2015)

May 7, 2015

http://www.huffingtonpost.com/politics/

WASHINGTON — Bank of America is cutting off its financing for coal extraction projects, the company announced at its shareholder meeting Wednesday.

“With regard to coal, over the past several years, we have been gradually and consistently reducing our credit exposure to companies focused on coal mining,” said Andrew Plepler, Bank of America’s Corporate Social Responsibility executive, at the meeting. The new policy, he said, “reflects our decision to continue to reduce our credit exposure, over time, to the coal mining sector globally.”

“Today, our renewable energy portfolio is more than three times as large as our coal extraction portfolio,” Plepler continued. “The transition from high-carbon energy to low-carbon energy will continue. At Bank of America, we will continue to do our part to accelerate this transition for our customers, clients and communities.”

The bank said that going forward, it will continue to reduce the credit it extends to coal extraction companies. Bank of America spokeswoman Laura Hunter told The Huffington Post that the bank will continue supporting technologies like carbon capture and storage (CCS) to help reduce the impacts of burning coal, and would work with clients, including mining companies, “that are diversifying to other fuel sources.”

Special Report: Why gold threatens Ivory Coast’s peace – by Joe Bavier (Reuters U.S. – May 7, 2015)

May 7, 2015

http://www.reuters.com/

GAMINA, IVORY COAST – (Reuters) – Nestled among the cocoa plantations of western Ivory Coast is a gold mine that does not feature on any official maps. It is not run by an industrial mining company, nor does it pay taxes to the central government.

The unlicensed mine is a key part of a lucrative business empire headed by the deputy commander of the West African nation’s elite Republican Guard, United Nations investigators allege. He is one of the principal players in a network of senior officers – former rebel commanders who have integrated into the Ivorian army – that has seized control of mines that generate tens of millions of dollars a year, and that engages in illegal taxation, smuggling and racketeering, they say.

Interviews with more than two dozen military insiders, diplomats, U.N. officials, local authorities, analysts and miners also reveal that the network of former rebels continues to maintain loyalist fighters under their exclusive control. A confidential U.N. arms inventory, reviewed by Reuters, showed that one former rebel commander possesses enough weapons – from surface-to-air missiles to millions of rounds of ammunition – to outgun the Ivorian army.

A senior Ivorian army officer said that the network represents a parallel force within the military that threatens the stability of the country, which has emerged from a 2011 civil war as one of Africa’s fastest growing economies.

NEWS RELEASE: NAN CHALLENGES FEDERAL COMMITMENT TO MEETING INFRASTRUCTURE NEEDS OF FIRST NATIONS

May 7, 2015

http://www.nan.on.ca/

(May 6, 2015) – THUNDER BAY: Nishnawbe Aski Nation (NAN) Grand Chief Harvey Yesno is challenging the Government of Canada’s commitment to meeting the infrastructure needs of First Nations despite claims made by Indian and Northern Affairs Minister Bernard Valcourt in the House of Commons yesterday.

When pressured by the Opposition over his government’s failure to assist with the a state of emergency in Shoal Lake No. 40 First Nation, which is cut off from the mainland without ferry service and has spent the last 17 years on a boil water advisory, the Minister made vague references to Canada-wide funding commitments his government has repeated for years instead of making a firm commitment to fixing the water and infrastructure needs of Shoal Lake and many First Nations.

“The dire situation in Shoal Lake is very much like that across much of NAN territory, where many First Nations have been on drinking water advisories for more than 10 years and nearly all communities are in need of new or upgraded water and wastewater systems and other critical infrastructure like housing, police, firefighting, health care and education facilities,” said Grand Chief Harvey Yesno. “It is shameful that the Minister is touting nearly decade-old funding commitments instead of making the necessary investments to improve the quality of life in our impoverished communities. If the Minister was truly committed to the health and safety of First Nations we would see more action from this government.”

NEWS RELEASE: Key Components of Global Silver Demand Rose in 2014

May 7, 2015

https://www.silverinstitute.org/site/

(New York City – May 6, 2015) Key components of global silver demand rose in 2014, with global silver jewelry demand posting a new record last year and silverware offtake rising to its highest level since 2006. This was coupled with notable growth in key silver industrial end uses, including ethylene oxide, photovoltaics, and brazing and alloys, according to World Silver Survey 2015, released today by the Silver Institute. Gains in supply from mine production and producer hedging were partially offset by a continued decline in scrap supply.

Silver Fabrication Demand

Total silver physical demand stood at 1.07 billion ounces last year, the fourth highest level recorded since 1990, but a 4 percent decline from the 2013 total. A main factor in the decrease in physical demand was a fall in coin and bar demand from 2013, which had been a record year.

The largest component of physical silver demand, industrial applications, which accounted for 56 percent of total physical silver demand, was marginally lower by 0.5 percent. On a regional basis, a modest increase in industrial demand in developing countries, led by 4 percent growth in China and Taiwan, was offset by weaker demand in advanced countries in 2014. This marks the fifth consecutive year of Chinese industrial demand growth. Last year’s industrial demand total for Taiwan was 23 percent above their 2009 figure.

Short-term investment undermines sustainable growth – by Dominic Barton (Globe and Mail – May 7, 2015)

May 7, 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.

In a world that desperately needs long-term investment, we face a daunting shortfall. Global long-term investment collapsed during the Great Recession of 2008 and has not recovered since. Across advanced economies, real private business investment fell by 10 to 25 per cent from 2007 highs, and recovery has been slow.

Business investment is a key determinant of long-term growth, and essential for creating jobs. The world is facing a vast unmet infrastructure challenge: Investments of nearly $60-trillion (U.S.) are needed in roads, rail networks, airports, sea ports, water and telecommunications by 2030. Moreover, in industries with the biggest need for innovation, such as health care, research and development spending is declining.

In this context, long-term investment is needed now. Yet short-termism is actually on the rise.

Indeed, it has become the norm in our capital markets. Almost all public companies dedicate significant resources to meeting quarterly earnings guidance, and assess their performance relative to it. Since more than 50 per cent of a typical company’s value comes from activities that will take place three or more years in the future, businesses are clearly failing to make profitable investments as a result.

Don’t count out India for Asia’s top economy – by Gwynne Dyer (Sudbury Star – May 7, 2015)

May 7, 2015

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

The picture of the two Asian giants that most people carry around in their heads shows China racing ahead economically while India bumbles along, falling ever further behind.

People even talk about the 21st century as “China’s century”, just as they called the 20th century the “American century”. But it may turn out to be only China’s quarter-century.

The headline economic news this year is that India’s economy is growing faster than China’s. Not much faster yet, according to the official figures — a 7.5% annual rate for India vs. 7.4% for China — but there is good reason to suspect that the real Chinese growth rate is considerably lower than that.

Anybody who goes to both countries will see that India has a huge amount of catching up to do. The contrast in infrastructure is especially striking: China has 100,000 kilometres of expressways (freeways, motorways); India has only 1,000 km.

The differences in income and productivity are also very big: Gross domestic product per capita in China is between three and five times higher than in India, depending on how you calculate it.

Cominco Ltd. History (1906 – 2001)

May 7, 2015

For a large selection of corporate histories click: International Directory of Company Histories

Incorporated in Canada in 1906, Cominco Ltd. has emerged as a leading integrated zinc and copper producer. With mines in Canada, the United States, Chile, and Peru, Cominco is the world’s largest producer of zinc concentrate as well as the fourth-largest zinc metal refiner. Additionally, Cominco produces lead, silver, gold, germanium, and indium. The company’s head office is situated in Vancouver, British Columbia, Canada, while it oversees subsidiaries worldwide. Teck Corporation is the largest single shareholder with 44 percent of Cominco’s Common Shares.

The Beginning: 1850-1900

Cominco’s history reaches back to the Gold Rush in the second half of the 19th century. Thousands of placer prospectors flocked to the unexplored wilderness that was later to become the Province of British Columbia. (Placer refers to a gravel deposit containing particles of gold). Although the Gold Rush ended after ten years, it hastened the proclamation of the Colony of British Columbia in 1858 and influenced the development of trails throughout the region.

The newly created trails made it possible for the remaining prospectors to move further afield. Before long, placer gold was discovered in various parts of the Kootenay region in southeastern British Columbia. Soon after, steamboat service along the upper Columbia River made it easier for miners, prospectors, and others to reach the area.

Despite these transportation enhancements, mining activity was limited until the coming of the railways 20 years later.