June 3, 2015 – Republic of Mining

COLUMN-Big iron ore miners’ plan to displace everybody else losing steam – by Clyde Russell (Reuters U.S. – June 3, 2015)

June 3, 2015

http://www.reuters.com/

LAUNCESTON, Australia, June 3 (Reuters) – How well is the plan by big iron ore miners to displace high-cost iron ore from the seaborne and Chinese domestic markets going? Maybe just OK, certainly not great.

Much has been written about how the big three global iron ore miners will use their low-cost, high-output mines to muscle competitors out of the market, thus restoring the supply-demand balance and ultimately justifying the billions of dollars they spent boosting capacity well in excess of demand.

The problem for Brazil’s Vale and the Anglo-Australian pair of Rio Tinto and BHP Billiton <BHP Billiton> is that the signs are this isn’t working perhaps as well as they may have hoped.

Certainly Chinese trade numbers show that Australia in particular has increased market share in iron ore imports, but the momentum may be stalling.

In the first four months of the year, Chinese imports of the steel-making ingredient from Australia were 195.845 million tonnes, or 63.7 percent of the total 307.282 million tonnes.

NEWS RELEASE: Gold mining industry contributed over US$171 billion to global economy according to World Gold Council

June 3, 2015

http://www.gold.org/

Click here for the report: http://www.mining.com/wp-content/uploads/2015/06/The-social-and-economic-impacts-of-gold-mining-june2015.pdf

3rd June 2015 – A new report released today from the World Gold Council, produced in association with Maxwell Stamp, a leading international economics consultancy, reveals that the gold mining industry directly contributed around US$83.1 billion to the global economy in 2013.

Once the indirect economic impact is taken into account, this figure increases to US$171.6 billion. The social and economic impacts of gold mining report builds on previous research, including studies by the World Gold Council, to provide an understanding of the socio-economic impacts of the commercial gold mining industry at both a global, national and host community level.

The report’s analysis of the impacts of large-scale commercial gold mining in 47 gold producing countries (accounting for over 90% of the world’s gold production) shows that gold mining companies in total contributed over US$171 billion to the global economy in 2013 when the value created by support services and indirect employment is taken into consideration.

Globally, gold mining companies directly employed over one million people in 2013, with over three million more people employed as a result of the industry’s suppliers and support services.

B.C. First Nations mining council report raises tailings dam safety concerns – by Gordon Hoekstra (Vancouver Sun – June 3, 2015)

June 3, 2015

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

Nearly three dozen mine-waste storage facilities could affect 33 First Nation communities

A report that shows a widespread fallout zone for mine-waste storage facilities in northern and central B.C. has led to a call for more protection of watersheds, assurance that communities receive long-term benefits, and creation of a cleanup fund.

The survey being released today was commissioned by the B.C. First Nations Energy and Mining Council in the wake of Imperial Metals’ Mount Polley mine-waste dam failure last year.

The breach released millions of cubic metres of finely ground rock containing potentially toxic metals, called tailings, into the Quesnel Lake watershed, resulting in heightened concerns over dam safety and the long-term effects on aquatic life.

The new report — Uncertainty Upstream: Potential Threats from Tailings Facility Failures in Northern British Columbia — found 35 mine-waste storage facilities at 26 active and closed mine could affect 33 First Nations communities if there is a breach.

Keep Metal Prices Lower for Much Longer – by David Stringer (Bloomberg News – June 3, 2015)

June 3, 2015

http://www.bloomberg.com/

BHP Billiton Ltd. delivered a sombre warning to global commodity markets that oversupply is very much here to stay. Tumbling prices are creating a testing environment for commodity producers, while demand is slowing to more routine levels amid a transition in China’s economy away from investment-led growth, the world’s biggest mining company’s Chief Executive Officer Andrew Mackenzie said Wednesday.

“In many markets, recently installed low-cost supply can now be stretched to meet growing demand,” Mackenzie said in a speech in Canberra. “Incremental supply, induced during periods of higher prices, will take longer to absorb and this means over-supply may persist for some time.”

Expansion by the biggest iron ore producers, including BHP and Vale SA, will see a global surplus swell to 215 million tons in 2018 from 45 million this year, UBS Group AG estimates. Teck Resources Ltd. plans to idle six Canadian coal operations amid a slump in prices and demand.

“The speed at which prices have returned to long run levels for each commodity has varied as a function of the time taken for low cost supply to come to market,” Mackenzie said.

Canada’s residential schools cultural genocide, Truth and Reconciliation commission says – by Joanna Smith (Toronto Star – June 3, 2015)

June 3, 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.

A damning report culminates a six-year examination of Canada’s residential schools that oversaw the ill-treatment of aboriginal children for more than a century.

OTTAWA—The Truth and Reconciliation Commission urges all Canadians to rise to the enormous challenge of righting the wrongs committed by residential schools, even if it takes generations to reverse the ongoing effects of cultural genocide.

“We have described for you a mountain. We have shown you a path to the top. We call upon you to do the climbing,” Justice Murray Sinclair, chair of the Truth and Reconciliation Commission, told a packed ballroom in a downtown Ottawa hotel Tuesday.

The exhortation came on an emotionally charged day that saw the commission release a heart-wrenching and damning 381-page summary of its final report detailing the history and legacy of residential schools — largely operated by churches and funded by the Canadian government — that saw 150,000 First Nations, Métis and Inuit children come through their doors for more than a century.

Northern Ontario’s next boom must come from within – by Livio Di Matteo (Waterloo Region Record/Troy Media – June 3, 2015)

June 3, 2015

http://www.therecord.com/waterlooregion/

Livio Di Matteo is professor of economics at Lakehead University in Thunder Bay.

Ontario’s north has experienced slower economic growth than the rest of the province for decades. Its shrinking economic role within Ontario — rooted as it was in natural resource extraction and processing — is a constant economic and political issue that has vexed politicians and community economic leaders for nearly 50 years.

The crisis in the forestry sector and its more capital-intensive production methods have also led to reduced northern employment. Whereas in 2003 there were 373,000 jobs in northern Ontario, by 2013 the number had decline five per cent to 355,000. Even the favourable unemployment rates in major northern urban centres are illusory, given that they reflect a shrinking labour force.

Compare that to Ontario as a whole, which saw employment grow 11 per cent over the same period despite the manufacturing malaise.

One response from northern Ontario to the employment decline has been to rely more on government. But public administration, health and social assistance, and education together already make up nearly 30 per cent of employment in northern Ontario, compared to 24 per cent in the province as a whole.

NEWS RELEASE: VALE’S SAMANTHA ESPLEY HONOURED BY ENGINEERS CANADA

June 3, 2015

SUDBURY, June 3, 2015 – Vale is pleased to announce that Samantha Espley, General Manager of Mines & Mill Technical Services (Ontario Operations), received the 2015 Award for Support of Women in the Engineering Profession from Engineers Canada.

This national award was given to Samantha for her achievements as an engineer and significant contributions in supporting women in the industry. The presentation was made at the Engineers Canada Awards Gala on May 21st in Calgary.

“I am humbled and grateful to Engineers Canada for recognizing me in this way,” said Samantha. “I feel blessed to continue to enjoy such a fulfilling career in mining and I will continue my work to promote engineering and mining as an attractive career choice to the next generation of young Canadian women”.

NEWS RELEASE: Excellon Reports on the Passing of Peter Crossgrove, Chairman

June 3, 2015

www.excellonresources.com

TORONTO, ON–(Marketwired – June 03, 2015) – Excellon Resources Inc. (TSX: EXN)(OTC: EXLLF) (“Excellon” or the “Company”), reports with sadness that Peter A. Crossgrove, CPG, O.C., Chairman of the Board of Directors, passed away yesterday afternoon.

“Today we mourn the passing of a great figure in Canadian mining,” commented Brendan Cahill, President and Chief Executive Officer. “He was an entrepreneur who experienced success in many industries worldwide. He was a connector of people and ideas who asked for nothing in return. He was selfless in his work and fundraising for charitable causes. He was an exceptional mentor, for so many as well as myself. Our deepest condolences go to Peter’s family and all of the people he touched over the years.”

Peter Crossgrove served as a Director of Excellon since 2005 and was Chairman of the Board since 2008. He had been in the mining industry for almost his entire career and most recently sat on various boards of directors including, Detour Gold, Lake Shore Gold, Pelangio Exploration, Dundee REIT and Dundee Industrial REIT. He previously served on the Board of Barrick Gold for 22 years; was CEO and Vice Chairman of Placer Dome; and was a founder of Masonite International.

Peter was the recipient of the Order of Canada, Order of Ontario, The Upper Canada Medal, Queens Golden Jubilee Medal and Queens Diamond Jubilee Medal.

NEWS RELEASE: Fasken Martineau wins Global Mining Law Firm of the Year Award

June 3, 2015

http://www.fasken.com/en/home/

Toronto (Canada) – April 28, 2015 – Fasken Martineau, a leading international business law and litigation firm, announced today that it has been awarded Global Mining Law Firm of the Year for 2015 by Who’s Who Legal. This is the seventh time that Fasken Martineau has been recognized by Who’s Who Legal as the leading law firm in the world in the area of mining.

“We are extremely pleased to be named Global Mining Law Firm of the Year. As an international law firm, this win showcases the outstanding work that our mining group members undertake for clients globally. We share this award with our mining clients who continue to call upon us for a broad spectrum of work from regulatory and financing to environmental and government relations,” said partner John Turner, Practice Group Leader for Fasken Martineau’s Global Mining Group.

Said Who’s Who Legal in a press release issued today: “Eight lawyers from the firm from three continents were selected for inclusion in Who’s Who Legal: Mining, and the firm collectively received more votes than any other in the global research.”

“The mining arena is one of the most competitive in the world and one of the most complex from a legal perspective. Being ranked amongst our international law firm peers as leader of the pack is a testament to our group’s strength as a whole,” commented Michael Bourassa, Fasken Martineau partner and Global Mining Group member.