Space mining decades away: NASA scientist – by Peter Rakobowchuk (Canadian Press – May 12, 2015)

http://metronews.ca/

MONTREAL – Prospecting on the moon or on asteroids is probably a couple of decades away, a NASA scientist told a symposium on planetary and terrestrial mining Tuesday.

The event, part of the Canadian Institute of Mining’s annual convention, heard that issues like ownership and management of resources in outer space still have to be worked out.

One of the main problems is that no country owns anything in space. One Canadian geologist suggests a regulatory system is needed for any future mining in space.

Joe Hinzer said the mining industry on Earth is regulated by an international committee under a United Nations umbrella that sets standards in different countries.

“I think that’s the kind of approach that might work for extraterrestrial stuff as well,” he said. Hinzer also cited Europe as an example, noting it has developed its own parliament and legal system and operates in a manner similar to that of the United Nations.

Read more

It’s Rothschild vs. Widjaja: Superrich Battle Over Indonesia Coal Mine – by Dominique Fong (Wall Street Journal – May 12, 2015)

http://www.wsj.com/

Wealthy families from opposite sides of the world offer competing plans to restructure debt of Indonesian coal miner

HONG KONG—A battle between members of wealthy families from opposite sides of the world over an Indonesian coal miner on the verge of default will come to a head this week, the latest act in the drama surrounding London-listed Asia Resource Minerals PLC.

Leading the cast list of the superrich involved in the increasingly bitter struggle is 43-year old British financier Nat Rothschild, scion of the famous banking family, who is hoping to win back control of the company he first brought to the London market five years ago.

Asia Resource’s shareholders will vote Thursday on Mr. Rothschild’s proposal to inject $100 million into the company by underwriting a share issue that could take his stake in the company to around 60% from 17.5% now. Mr. Rothschild plans to pay off some of the company’s debt and restructure the rest by extending maturities and modifying the bonds’ interest rates.

Mr. Rothschild’s opponents are the billionaire Widjaja family, which doesn’t own a stake in Asia Resource but is hoping to keep its mines in Indonesian hands at a time of rising resource nationalism there, even as a plunge in coal prices in recent years that has prompted a nosedive in the value of the unprofitable company.

Read more

Glencore CEO says rivals’ strategy tipping mining sector into crisis – by Silvia Antonioli (Reuters U.K. – May 12, 2015)

http://uk.reuters.com/

LONDON – The head of mining and commodity trading giant Glencore said on Tuesday the strategy of rival companies to oversupply the market regardless of demand had hit the mining sector’s credibility and tipped it into a confidence crisis.

Chief Executive Ivan Glasenberg has criticised competitors such as Anglo-Australian BHP Billiton (BHP.AX) (BLT.L) and Rio Tinto (RIO.L) (RIO.AX) several times for flooding the market with new, low-cost, iron ore supply which critics says has sent prices into a downward spiral.

“The mining sector is suffering a crisis of confidence,” he said in a presentation at an investor conference in Barcelona. “Oversupplying markets regardless of demand is damaging the credibility of the industry,”

He said mining had been the worst performing sector over the last twelve months, with commodity prices, share values and credit ratings all impacted. Investment flow has also weakened and was now about $60 billion below its 2012 peak, when the commodity supercycle turned sour, Glasenberg said.

Iron ore, oil, nickel and thermal coal were the hardest hit commodities in the last year.

Read more

Mount Polley Mine Owner Prospecting In Clayoquot Sound – by Dan Lewis (Huffington Post – May 12, 2015)

http://www.huffingtonpost.ca/british-columbia/

Before the dust had even settled on Mount Polley, mine owner Imperial Metals was active again in British Columbia’s Clayoquot Sound. This finding was announced in Who’s Knocking?, a report on mineral tenures in the Clayoquot Sound UNESCO Biosphere Reserve. The report, released by Clayoquot Action in partnership with Fair Mining Collaborative, details who is looking for minerals in Clayoquot Sound, and what types of minerals they are looking for.

Twenty years ago when someone said “Clayoquot,” protests against clearcutting of old growth forests came to mind. At that time nobody thought anybody was crazy enough to propose an open-pit copper mine in the heart of Clayoquot Sound.

Fast-forward 20 years, and somebody is crazy enough to make such a proposal: Imperial Metals. That’s right, Imperial Metals, who operates Mount Polley mine, home to one of the largest mining disasters in the world, has been exploring the potential for two mines in Clayoquot Sound, in unceded Tla-o-qui-aht and Ahousaht First Nations territories.

Who’s Knocking? shows that 5.8 per cent of Clayoquot Sound is under some form of mineral title, with a total of 257 claims held by 23 licensees.

Read more

Nunavut review board decision on uranium mine “not what we expected,” Areva says – by Sarah Rogers (Nunatsiaq News – May 11, 2015)

http://www.nunatsiaqonline.ca/

But Areva will go on with summer exploration work

Areva Resources Canada Inc. says it is “disappointed” with the Nunavut Impact Review Board’s recommendation that the mining company’s uranium project not go ahead.

After almost six years of environmental assessment, the NIRB recommended May 8 that Areva Canada’s proposed Kiggavik mine, in exploration outside of Baker Lake, “should not proceed at this time.” The NIRB decided that, because Areva cannot provided a definite schedule for the project’s launch, the board cannot do an accurate assessment of the project’s environmental and social impacts.

But Barry McCallum, manager of Nunavut affairs for Areva, said the company submitted what it believed was a “sound” final environmental impact statement. “It’s not what we expected,” he said. “We were transparent in our plans to develop.”

The poor market conditions under which AREVA was developing its uranium project meant the mine’s timeline was never certain, although McCallum assured the project is part of the company’s plans.

Read more

Mining heavyweights seek to build mid-tier gold producer in $190M Newmarket-Crocodile merger – by Peter Koven (National Post – May 12, 2015)

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

TORONTO – Several mining industry heavyweights have teamed up in a deal they hope will be the first of many as they seek to build a new mid-tier gold producer.

Newmarket Gold Inc. and Crocodile Gold Corp. announced a friendly $190 million merger on Monday that will give Newmarket control over most of the combined board and management team.

Crocodile is an established gold producer in Australia, while Newmarket is little more than a shell company at present. However, Newmarket boasts some very big names on its board, including entrepreneurs Lukas Lundin, Randall Oliphant (of New Gold Inc.) and Raymond Threlkeld (of Rainy River Resources Ltd.). The company’s plan is to use the Crocodile mines as a platform to buy more high-quality gold assets under the “Newmarket” name.

“There is lots of competition for assets, but that’s why we put this team together,” Newmarket chief executive Doug Forster said in an interview.

Read more

ONTARIO MINING ASSOCIATION NEWS RELEASE: Looking Beneath the Surface – How Mining Taxes Benefit Ontario

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

When assessing provincial revenues from mining, one must take into account that Ontario’s mining tax is really just the tip of the proverbial iceberg with regards to the sector’s economic contribution to the province. Mining tax is paid on top of all corporate taxes, payroll taxes, sales taxes, permitting fees and other business taxes. When added up, Ontario mining companies’ tax contributions to all levels of government are more than $1 billion annually, which pays for necessities such as roads, schools, hospitals, community centres, electrical grid access for remote communities, and other public good priorities. The value of mineral production in Ontario was $11 billion in 2014.

All jurisdictions must balance the need for capital investment to develop their mineral resources with the desire to increase revenue through higher taxation. There are many models for meeting this challenge – in Ontario, we don’t risk the taxpayer funding up front by paying for infrastructure and offering competitive hydro rates. Instead, we require mining companies to take on the risk, and subsequently offer tax breaks when the project is up and running, employing and spending.

Benchmarking the cost to mine in Ontario, therefore, requires “apples to apples” comparisons. Jurisdictions with higher mining tax rates have lower electricity prices and government cost-sharing on infrastructure. A recent report indicates that exploration and mining costs are particularly inflated in the North, where companies need to invest in lacking, but essential infrastructure such as ports, power plants, winter and permanent roads, and accommodation facilities.

Read more

How CBC found the secret diamond royalty – by Rita Celli (CBC News Business – May 12, 2015)

http://www.cbc.ca/news/business

For Rita Celli’s Ontario Today program on diamond mining, click here: http://podcast.cbc.ca/mp3/podcasts/ontariotoday_20150512_18140.mp3

Ontario government breaches its own confidentiality rules to explain royalties for salt and diamonds

For stones prized for their brilliance and clarity, the true value of Ontario’s only diamond mine was murky — until the CBC investigation.

The Michener-Deacon Fellowship for Investigative Journalism allowed me the time to dive into Ontario’s opaque accounting.

For months, no one in the Ontario government or De Beers Canada would answer whether if, when, or how much of the legislated royalty was paid.

Both the current and a former provincial mines minister told CBC that the diamond royalty must be kept confidential. Preserving secrecy is spelled out in the Ontario Mining Act. Here’s how this mystery started to unravel.

I studied a variety of corporate and public accounts searching for an answer. At some point along the way, I figured out that three Ontario ministries collect a version of mining profits tax or royalties.

From a number of sources, I determined that the Ministry of Northern Development and Mines (MNDM) collects a royalty on salt.

Read more

Diamond royalties a closely guarded secret in Ontario – by Rita Celli (CBC News Business – May 12, 2015)

http://www.cbc.ca/news/business

For Rita Celli’s Ontario Today program on diamond mining, click here:http://podcast.cbc.ca/mp3/podcasts/ontariotoday_20150512_18140.mp3

CBC News investigation reveals government royalties from diamonds totalled $226 last year

Ontario’s only diamond mine is known for its exceptional quality stones, but according to official documents, the provincial government made more money on salt royalties in 2013-14 than diamonds.

De Beers Canada, which owns the only diamond mine in the province, paid $226 in royalties while salt netted the province $3.89 million in royalties.

The diamond royalty stirred a huge debate when the Ontario government suddenly introduced it in 2007. Then-premier Dalton McGuinty promised it would enrich all Ontarians. He promised the money would be used to hire more nurses and keep class sizes small in schools.

The real value has been a closely guarded secret, by government and the company, until the CBC-Michener-Deacon investigation. That secrecy has baffled many experts consulted by the CBC, including accountants, and auditors.

“It’s hard to believe that in a jurisdiction like Ontario there would be this lack of transparency,” says Paul Zimnisky, an independent diamond analyst, based in New York.

Read more

Commentary: Made in America Depends on Being Mined in America – by Hal Quinn (The National Mining Association – May 11, 2015)

http://www.nma.org/index.php

Hal Quinn is the president and CEO of The National Mining Association.

As global demand for minerals increases — driven by rising population, urbanization and more modern-day gadgets and electronics — to be “Made in America” will increasingly require more minerals be mined in America.

Yet the U.S. has one of the longest permitting processes in the world for mining projects.

An inefficient and duplicative permitting system for mines that produce the essential minerals for basic industries, technology, national defense and other products made in the U.S.A. threatens American manufacturing. The Senate Energy and Natural Resources Committee meets Tuesday to open debate on a bill sponsored by Republican Sen. Lisa Murkowski of Alaska to fix that, and to ensure America’s domestic mining policy doesn’t hinder the nation’s progress and future promise.

There have been many executive orders and legislative policies directed at providing a more efficient and accountable regulatory framework for manufacturing, infrastructure and energy. However, they often omit the mining sector which supplies the resources necessary for these industries to succeed.

Read more

Relax. Alberta’s NDP isn’t the energy deal killer – the market is – by Tim Kiladze (Globe and Mail – May 12, 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.

My dear friends in the wild rose province: Deep breaths.

Instead of offering Alberta’s premier-designate time to absorb her party’s shocking majority win, some provincial big wigs – including energy executives, who should know better – have pounced on Rachel Notley, suggesting her victory will spell the end of Canadian energy. The morning after the New Democrats won the election, there were already suggestions the incoming leader must reassure the public that she won’t nationalize the oil and gas industry.

I’m assuming most Albertans aren’t in such a panic – the NDP wouldn’t have won in a landslide otherwise. But there seems to be an underlying fear that the provincial NDP government and its pending royalty review will demolish any hopes of developing energy assets – and by extension, will destroy future deal flow.

What a knee-jerk reaction. Across the country, the NDP may not be cozy with producers of energy from conventional sources, but political parties almost always move to the centre once they are elected. And their reputation for killing deals can just as easily be slapped on their rivals. On this front, let’s not forget that Conservative governments are no pushovers, either.

Read more

ALBERTA: Rachel Notley’s victory shows the system does work – by Margaret Wente (Globe and Mail – May 12, 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.

Back in 1990, in a fit of pique, I cast my vote in Ontario for Bob Rae and the NDP. I never expected him to win. I was just mad at the other guys. Imagine my surprise when I woke up the next morning and discovered he was premier. The entire province was aghast. I thought it would be a train wreck, and it was.

Will Rachel Notley be a train wreck? I don’t think so. Unlike Mr. Rae, she doesn’t feel like the leader of a left-wing horde of crazies who got in by mistake. She feels like a gust of fresh air blowing the cobwebs out of all those stale backrooms where old boys lurked.

When Albertans woke up the day after the election, a lot of them were smiling. Ms. Notley is by all accounts level-headed, smart and down-to-earth, like her dad. Even though most of them didn’t vote for her, she’s riding an upswell of goodwill.

Mr. Rae’s crew were red-diaper socialists who really did think that capitalism and big business were the root of all evil. They despised the private sector so much that the poor saps who happened to work on Bay Street couldn’t even get an audience with the government. Ms. Notley has set a different tone. She has been courteous to the oil and gas people, some of whom have practically gone into cardiac arrest.

Read more