May 8, 2015 – Republic of Mining

Peru Sends 2,000 Police as Copper Project Protests Spread – by John Quigley (Bloomberg News – April 8, 2015)

May 8, 2015

http://www.bloomberg.com/

Peru sent police reinforcements to the Islay province as protests against Southern Copper Corp.’s Tia Maria mine project spread to more towns.

About 2,000 officers are being transferred to the coastal province in southern Peru as street protests against the project entered a 47th day, Interior Minister Jose Perez told reporters.

Southern Copper’s plans to build the $1.4 billion mine in the mountains above Islay’s Tambo Valley, about 780 kilometers (485 miles) south of Lima, are opposed by local farmers concerned that water and air pollution will damage their crops. One person died and four police officers were injured in clashes this week as the unrest spread to the seaside town of Mollendo.

President Ollanta Humala weighed options for declaring a state of emergency in Islay at a meeting Thursday. “We don’t rule out any decision that needs to be taken,” Perez said. “We’re prepared for this decision. More police are arriving at this moment.”

Police used a loader to clear boulders and rocks strewn across the highway between the port town of Matarani and Mollendo, where demonstrators set fire to buses Thursday, according to Canal N. Images broadcast by the Lima-based television station showed protesters blockading a highway Friday as tires burned along the side of the road.

The Betrayal of Brazil – by Michael Smith, Sabrina Valle and Blake Schmidt(Bloomberg News – May 8, 2015)

May 8, 2015

http://www.bloomberg.com/

As a massive corruption scandal unfolds, Brazilians are facing some stark truths: The powerful and connected are still dividing the country’s riches among themselves. The past decade’s economic miracle was in large part a mirage. And the future is again on hold.

In mid-2013, Brazilian federal police investigator Erika Mialik Marena noticed something strange.

Alberto Youssef, suspected of running an illicit black-market bank for the rich, had paid 250,000 reais (about $125,000 at the time) for a Land Rover. The black Evoque SUV ended up as a gift for Paulo Roberto Costa, formerly a division manager at Brazil’s national oil company, Petrobras. “We were investigating a money-laundering case, and Petrobras wasn’t our target at all,” says Marena. “Paulo was just another client of his. So we started to ask, ‘Why is he getting an expensive car from a money launderer? Who is that guy?’”

Marena had spent the previous decade building cases against money launderers, and Youssef had been a perennial target. He’d been arrested at least nine times for using private jets, armored cars, clandestine pickups by bagmen, and a web of front companies to move illicit cash. But Youssef had been spared serious jail time by testifying repeatedly against other doleiros, Brazilian slang for specialists in laundering unreported cash.

Opinion: Mining industry continues as integral part of B.C. fabric – by Karina Brino (Vancouver Sun – May 7, 2015)

May 8, 2015

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

Karina Briño is president and CEO of the Mining Association of British Columbia.

Mining Week is a time when British Columbians have the opportunity to celebrate an industry that has greatly contributed to the prosperity of this province since before it joined Confederation in 1871.

Mining operations provide payments to government that help fund health care, social programs and education, and create thousands of jobs across the province. British Columbia is a global centre for mining and is home to some of the most innovative, sustainable mining companies in the world. Thanks to its diverse geology, the province is rich in high quality mineral resources, in every corner of the province.

Despite all these advantages, 2014 was a challenging year for the B.C. mining industry. Largely due to falling commodity prices, several operating mines were placed in care and maintenance, resulting in workforce reductions, primarily in the North Eastern corner of the province. These external pressures are continuing in 2015.

Notwithstanding these challenges, there are a significant number of projects in the approval process which provide an opportunity for growth of the mining industry, further strengthening the provincial economy.

UPDATE 2-South Africa mining union NUM vows to fight job cuts at Lonmin – by Zandi Shabalala and Silvia Antonioli (Reuters India – May 8, 2015)

May 8, 2015

http://in.reuters.com/

JOHANNESBURG/LONDON, May 8 (Reuters) – South Africa’s National Union of Mineworkers (NUM) said on Friday it would fight platinum producer Lonmin’s plan to cut 3,500 jobs, raising the prospect of a resurgence of the labour unrest that has plagued the sector.

Lonmin, the world’s third-largest producer of the precious metal, said on Thursday it needed to make the layoffs in response to depressed prices and it was holding talks with employees and unions at its South African mines.

But the NUM, which represents roughly 10 percent of Lonmin’s workers, said it was shocked by the announcement and had not yet been officially consulted.

“We are going to fight against any job losses … The platinum sector had cut 35,000 jobs since 2012 and it is time to join forces to end this bloodbath,” it added.

AMCU, by far the largest mining union with about 85 percent of Lonmin’s workers among its members, was unavailable for comment.

Sudbury family ‘overwhelmed’ by recommendations – by Carol Mulligan (Sudbury Star – May 8, 2015)

May 8, 2015

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

A coroner’s jury went beyond the eight recommendations jointly submitted at an inquest into the deaths of two men at Vale’s Stobie Mine and added 16 of its own to improve mine safety in Sudbury, in Ontario and throughout Canada.

The three-woman, one-man jury accepted eight recommendations suggested and agreed upon by Vale, United Steelworkers Local 6500, the Ministry of Labour and the families of Jason Chenier and Jordan Fram.

The first recommendation was that the Ministry of Labour implement the recommendations of the Mining Health, Safety and Prevention Review regarding water management in mines and the internal responsibility system.

The review was struck in December 2013 in response to pressure by families and mine workers for an inquiry into mine safety after the Sudbury men’s deaths. Chenier, 35, and Fram, 26, were killed when a run of muck overcame them while they were working at the 3,000-foot level near the No. 7 ore pass.

Sudbury should be proud of jury’s work: coroner – by Carol Mulligan (Sudbury Star – May 8, 2015)

May 8, 2015

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

The community owes a debt of gratitude to the work of the jury that made 24 recommendations to make mining safer in Ontario at the inquest into the deaths of two Vale workers. Presiding coroner Dr. David Eden said the issues surrounding the deaths of Jason Chenier and Jordan Fram were complex and of great concern to the community.

The “very well-considered and essential questions” and “thoughtfulness and thoroughness” of the recommendations displayed the highest level of dedication and commitment on the part of the three women and one man who sat on the jury, said Eden.

A fifth juror had to drop out a week into the two-week inquest because of medical reasons. Eden read the recommendations Thursday at the Sudbury Courthouse. “The community that you represent here should be proud of your work,” Eden told the jury.

The jury answered five basic questions that are at the heart of every coroner’s inquest. They determined that Chenier, 35, and Fram, 26, were involved in an accident and were presumed to have died June 8, 2011, about 10 p.m. The men were pronounced dead by the attending coroner early the morning of June 9.

Franco-Nevada chairman rips ‘ridiculous’ pay packages at underperforming gold companies – Business Network News’ Andrew Bell interviews Pierre Lassonde (March 7, 2015)

May 8, 2015

http://www.bnn.ca/

Mining magnate Pierre Lassonde told us on Thursday’s Commodities show that big pay packages for gold mining executives whose stocks have tanked are “obscene.”

“That is ridiculous,” the Franco-Nevada (FNV.TO 0.84%) chair said. Compensation committees, he added, “should have been far more forceful and said ‘guys, our shareholders are suffering. You’ve got to take the pain as well.’”

John Thornton, the famously well-rewarded chairman of Barrick Gold, told shareholders last week that “we have heard you loud and clear” after they voted against the company’s pay policy. But he didn’t actually promise to refund any of his 2014 compensation, valued at US$12.9-million.

Essar ramps up construction [Iron Range] – by Beth Bily (Business North.com – May 8, 2015)

May 8, 2015

http://www.businessnorth.com/news.asp

The business news source for Northeastern Minnesota and Northwestern Wisconsin.

While recent news about price, demand and employment hasn’t been favorable for Iron Range mining operations, the largest mining construction project here during this century is nonetheless moving ahead, executives say.

Essar Steel Minnesota, a $1.9 billion project located north of Nashwauk on the former Butler mining site, is ramping up for a summer of large-scale activity with the goal of completing construction on the taconite mine by the end of this year. It’s permitted to produce 7 million tons of taconite pellets annually and is expected to operate for approximately 80 years.

Reestablishing mining operations here has been decades in the making. Butler ceased production at the site in the mid-1980s. Later, various would-be developers announced plans to reopen the site to mining. But for years, the plans never made it off the drawing board. That changed in 2007, when India-based Essar purchased what was formerly known as Minnesota Steel Industries.

At a ground breaking for Essar Steel Minnesota in 2008, executives then promised a mining operation that would be up and running within 27 months.

Glencore blames rivals for creating metals glut – by Silvia Antonioli (Reuters U.K. – May 7, 2015)

May 8, 2015

http://uk.reuters.com/

LONDON – The head of global mining and trading company Glencore (GLEN.L) said rivals were to blame for an oversupply of metals which depressed its share price.

Despite a partial recovery in the last few months, Glencore’s shares are down about 6 percent from a year ago, under pressure from a rout in prices for most of the commodities it produces and trades.

“Unfortunately our competitors in the world have produced more supply than demand and commodity prices are down for that reason,” Glasenberg said at the company’s annual meeting.

“I am doing my level best to convince my competitors we should understand the words demand and supply,” he added in response to a question from an investor about the share price.

Glasenberg has criticised rivals such as Rio Tinto (RIO.L) and BHP Billiton (BLT.L) (BHP.AX) at various times, blaming them for oversupplying the market, particularly in iron ore, a commodity Glencore has little exposure to.

Ontario Northland president: “We want to move away from entitlement” (CBC News Sudbury – May 8, 2015)

May 8, 2015

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

“We want to move away from the fact that, you know, we deserve things because we’re Ontario Northland.” Corina Moore says the company is bleeding.

The interim president of the Ontario Northland Transportation Commission gave a stark warning to municipal leaders gathered in Sudbury this week for the Northern Ontario Federation of Municipalities conference.

“That highlights crisis situation for the agency,” said Moore. She said it has reached a pivotal point where Ontario Northland can’t continue to lose money if it expects to exist in the future.

Moore admitted the future will be challenging because the company hasn’t seen much change in 113 years.

“We want to move away from entitlement. We want to move away from the fact that we deserve things because we’re Ontario Northland. We are here to say that, starting now, we are focused on performance-based thinking and the way we do things. It’s a culture shift and it’s a tough one.”

Shanghai Exchange Seeks Foreign Nickel to Help Ease Shortage (Bloomberg News – May 8, 2015)

May 8, 2015

http://www.bloomberg.com/

The Shanghai Futures Exchange plans to allow delivery of foreign-made nickel into its futures contracts as it seeks relief from a shortage of domestic supply to the bourse.

Russia’s OAO GMK Norilsk Nickel, the world’s largest producer, is among suppliers the exchange plans to authorize, SHFE said Friday in an e-mailed response to questions. Six brands made by six domestic companies are currently deliverable into the SHFE futures, which started trading in March. That compares with 59 brands for its copper contract and 23 for the London Metal Exchange.

“Shanghai Futures Exchange has been actively seeking to proceed with registration of foreign nickel supply,” the exchange said. Prices below the cost of production for some companies are “the reason they are reluctant to sell, therefore reducing market supply.”

Rules limiting the origin of nickel allowed for delivery in China’s new futures prompted speculation prices may extend gains as sellers seek sufficient supplies to meet the requirements. The metal on the SHFE is up 11 percent since trading started March 27, outpacing the 7.5 percent advance on the LME.

Kevin O’Leary on NDP’s stunning win in Alberta: ‘It’s a horror movie unfolding’ – by Yadullah Hussain (National Post – May 8, 2015)

May 8, 2015

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

Influential Canadian investor Kevin O’Leary has some blunt advice for international institutions in the wake of the Alberta election: Pull out.

“It’s a horror movie unfolding,” O’Leary said in an interview from New York where he is meeting investors, referring to the election of the New Democratic Party under Rachel Notley. “Until we understand what the [oil and gas] royalties and taxes are there won’t be any material fund flows – it’s a disaster.”

The benchmark Canadian energy index retreated again Thursday, falling 1.56%, after the NDP won a majority in Alberta on Tuesday on pledges to raise corporate taxes and to set up a commission to review the royalty regime. Notley expects to make a decision on the commission’s findings within the first year of her rule.

International investors should “wait and see what happen with [oil] prices undoubtedly going lower,” O’Leary said. “You never, ever tinker with royalty rates when you are at the low. You don’t do that. “Not only are taxes going up, why would you take a whole year to guarantee that no capital flows into the province — that is beyond irresponsible,” O’Leary said. “That is un-Canadian — that’s what that is.”

Peru may declare state of emergency in province hit by anti-mining protests (Fox News Latino – May 7, 2015)

May 8, 2015

http://latino.foxnews.com/index.html

Peru’s government is studying the possibility of declaring a state of emergency in the southern province of Islay, where protests against Southern Copper’s Tia Maria project have left two dead and nearly 200 injured in recent weeks.

President Ollanta Humala’s administration is considering adopting a different strategy in response to the clashes in Islay, a province in the Arequipa region where local farmers launched an “indefinite strike” 45 days ago, Energy and Mines Minister Rosa Maria Ortiz told Radio Programas del Peru on Thursday.

“(Declaring a state of emergency) is one of the possibilities being considered. We haven’t decided yet. We’re going to continue discussing this matter at the Cabinet level and with the president,” Ortiz said.

She lamented that negotiations between the government and opponents of the copper project broke down once again on Thursday, when local authorities and grassroots leaders in Islay abandoned the talks without reaching an agreement.

The minister blamed the mine opponents for the failure of the talks, saying they had demanded cancelation of the project as a pre-condition.

Kincardine nuclear waste site gets federal seal of approval – by John Spears and Lauren Pelley (Toronto Star – May 7, 2015)

May 8, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Deep Geologic Repository proposed by Ontario Power Generation at its Bruce site is “not likely to cause significant adverse environmental effects,” report concludes.

A federal panel has given an overall seal of approval to the controversial nuclear waste disposal site proposed for a subterranean crypt below the Bruce nuclear station near Kincardine, Ont.

“The Panel concludes that the project is not likely to cause significant adverse environmental effects” given the measures contemplated to curb them, says the report by the Joint Review Panel.

The panel’s favourable view of the project, proposed by Ontario Power Generation, overcomes a major regulatory hurdle in the construction of the Deep Geologic Repository, or DGR in industry jargon, which would see nuclear waste buried hundreds of metres underground near the shore of Lake Huron.

Press Release: Antwerp Strengthens Ties With Canadian Miners (May 8, 2015)

May 8, 2015

https://www.awdc.be/en/homepage

Press Release: Canada is the third-largest diamond producer in the world and one of the most important suppliers of rough diamonds to Antwerp. Last week, the Antwerp World Diamond Centre (AWDC), spearheaded by governor Cathy Berx, traveled to Montreal, Toronto and Yellowknife. The meetings with mining company Stornoway Diamond Corp. provided strong indications the company is considering to commercialize its entire production from the Renard mine in Quebec through Antwerp.

Stornoway is the first producer to exploit a mining area in the Canadian province of Quebec. The Renard mine is expected to yield 1.6 million carats of diamonds annually, with a value of $304 million and production estimated to hit the market as of the second half of 2017. If the Renard production is marketed in Antwerp, the share of rough diamonds from Canada on the Antwerp market could increase by 64 percent.

As trade center and diamond producer, Antwerp and Canada have always maintained a close relationship because of the quality demands that both implement with regard to transparency, ethical values and observance of national and international standards.

In recent years, Canada has undergone significant changes with regard to diamond mining. Ari Epstein, the CEO of the AWDC, said, “A number of legislative changes have ensured that the regional and local authorities, such as the Northwest Territories, have obtained wider competencies as concerns the mining industry.