June 17, 2015 – Republic of Mining

Vale Said to Hire Canada’s Stikeman Elliott for Base Metals IPO – by Juan Pablo Spinetto and Scott Deveau (Bloomberg News – June 17, 2015)

June 17, 2015

http://www.bloomberg.com/

Vale SA, the world’s top nickel producer, hired Canadian law firm Stikeman Elliott LLP to help it prepare for a possible initial public offering of its base metals business, three people with knowledge of the appointment said.

The Rio de Janeiro-based company probably will choose bank advisers in the coming months as it considers the IPO, said the people, who asked not to be named because the matter is private. The sale is subject to a nickel-price recovery, they said.

In December, Vale told investors in New York that it was considering selling a minority stake in its base metals operations, the largest generator of revenue after iron ore, to boost cash. Vale forecasts increased profit and output from the operations, which is based on a 2006 takeover of Inco Ltd., after years of setbacks including strikes in Canada, design defects at Brazil plants and a New Caledonia acid spill.

Vale declined to comment on IPO advisers.

Michelle Di Rocco, a Stikeman Elliott spokeswoman, didn’t respond to e-mails and voice messages seeking comment. The Toronto-based firm also advised Vale in the Inco takeover.

Mick Davis, Glencore among bidders for Anglo’s Chile copper mines – by Silvia Antonioli and Freya Berry (Reuters U.S. – June 17, 2015)

June 17, 2015

http://www.reuters.com/

LONDON, June 17 (Reuters) – Mining and trading company Glencore and X2, a vehicle set up by former Xstrata CEO Mick Davis, are among the companies that placed bids last week for two Anglo American copper mines in Chile, sources said this week.

British investment firm Audley Capital was also among the first round of bidders, the sources added.

The Mantos Blancos and Mantoverde copper mines in Chile together could fetch up to $1 billion, according to banking sources, but two mining sources familiar with the mines gave more conservative valuations of around $500 million or less.

“The deadline to submit the bids was a week ago and X2 is still in the running,” a first banking source said. “Mick (Davis) seems keen on those assets.” An industry source said although Glencore was still in the process it was unlikely to make a high enough bid to win the assets.

“They are both mines towards the end of their life although with some investment Mantoverde’s life can be extended,” a second industry source said. “I would think a smaller firm like Audley is more likely to get them. Certainly the John MacKenzie connection is strong.”

Audley Capital’s mining CEO John MacKenzie was Anglo American’s head of copper until 2013.

My Turn: Enough is enough – we need international oversight now – by Rob Sanderson (Juneau Empire – JUne 17, 2015)

June 17, 2015

http://juneauempire.com/

Rob Sanderson Jr. is the 2nd vice president of the Central Council of Tlingit and Haida Indian Tribes of Alaska, co-chair of the United Tribal Transboundary Mining Work Group, and president of the Ketchikan Tlingit and Haida Community Council.

Mount Polley’s owner received its permit to operate the Red Chris Mine in the headwaters of the Stikine River despite assurances from the British Columbia Minister of Mines that these types of tailings dams would not be used following the disastrous failure of the Mount Polley dam.

B.C.’s words do not match their actions.

The government of B.C. continues to downplay the need for any international oversight over the watersheds flowing into Southeast Alaska stating that we have nothing to worry about from the huge mining projects both active and proposed in these watersheds. The government of British Columbia, through their rigorous permitting and enforcement process, has everything under control. There are even those in Alaska repeating these same words.

So far, just like the permits themselves, these are only words. Words did not stop the Mount Polley dam failure. The B.C. government issued the final permit for the operation of the Red Chris Mine’s tailings dam despite serious concerns about dam safety and the ability of Canadian regulators to oversee these operations.

NEWS RELEASE: GRAND CHIEF OUTLINES STRATEGIC APPROACH FOR INFRASTRUCTURE AND COMMUNITY DEVELOPMENT

June 17, 2015

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

THUNDER BAY – June 17, 2015) – Nishnawbe Aski Nation (NAN) Grand Chief Harvey Yesno outlined plans for a strategic approach for infrastructure and community development in NAN territory at the opening of the 5th Annual Ontario Mining Forum in Thunder Bay today.

“NAN is currently developing a strategic and innovative strategy that will position our 49 First Nations as active partners in delivering and financing comprehensive regional transportation infrastructure across our territory in Ontario’s remote north,” said Grand Chief Harvey Yesno during his keynote address. “The development of transportation infrastructure will help our communities diversify their direct reliance on the mining economy while maximizing socio-economic benefits and providing new business opportunities that will help develop local economies and strengthen our Nation.”

Mining accounts for 20 per cent of Canada’s exports to global markets, according to a 2013 Conference Board of Canada report, with Northern Ontario home to the largest mineral mining industry in Canada. Instead of waiting for infrastructure plans developed by industry and government, NAN is moving forward with the identification of corridor options based on First Nation knowledge of local topography, sacred sites, cultural heritage, and environment and resource development activities. This new approach will provide certainty for First Nations and the business community.

Mining rising out of the downturn – by Cole Latimer (Australian Mining – June 16, 2015)

June 17, 2015

http://www.miningaustralia.com.au/home

Mining has reached the bottom of the downturn and has begun its recovery, according to a new IBISWorld report.

The major commodities, across the board, have seen a revival in fortunes after shedding prices continually for the last few months, creating a horror year, causing revenue in the mining division to decline by 10.0% in 2014-15, to reach $211.8 billion.

Iron ore hit a four month high last week after dropping to all-time lows in in April, having now risen to more than 40 per cent of the trough since then.

Gold has also seen a slight rally over the last month, following weaker trading in Europe on the back of poor economic data from China, coupled with a slightly weaker US dollar.

“With the dollar now slipping again and with some of the other markets looking a bit [like they have reached unstable highs and are likely to decline], it may be that the precious metals look relatively cheap as a safe-haven asset class should investors feel the need for a haven,” William Adams, head of research at Fastmarkets, explained.

BARRON’S INTERVIEW: Fortescue’s Andrew Forrest Battles on in Iron Ore War – by Robert Guy (Barrons Magazine – June 17, 2015)

June 17, 2015

http://online.barrons.com/home-page

Billionaire chairman of Fortescue Metals Group on iron ore, China and why he thinks the miner is worth more.

If there’s anyone that understands the joy and the inevitable pain of the waxing and waning of commodity cycles, it is Andrew Forrest.

Having topped the ranking of Australia’s wealthy in 2008 with an estimated fortune of over AUD9 billion, the billionaire founder and chairman of Fortescue Metals Group has watched his fortune – built on a 30% stake in the world’s fourth largest iron ore miner – shrink to a AUD2 billion as the price of the steel making ingredient has tumbled from a record $180 a tonne in 2011 to around $60 a tonne.

Not that he seems worried about the hit to the hip pocket when Barron’s Asia caught up with the one of Australia’s most colorful business identities on Wednesday. Forrest, who is also known by his nickname “Twiggy”, has a deep appreciation of how fortunate he is, with the mining mogul visiting Hong Kong to promote his anti-global slavery foundation, Walk Free.

“We can’t solve everything, so we’re going after one thing and that’s freedom.

Goldcorp’s $1-billion Tahoe deal suffers from weak demand – by Tim Kiladze and Reachelle Younglai (Globe and Mail – June 17, 2015), 2015)

June 17, 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.

The billion-dollar offering of Tahoe Resources Inc. shares is suffering from weak demand, another sign that mining investors remain cautious about the industry.

Late on Monday, Goldcorp Inc. announced plans to sell its remaining 26-per-cent stake in Tahoe for $998-million by way of a bought deal. Because the underwriters, led by GMP Securities and BMO Nesbitt Burns, purchased the Tahoe shares from the miner, Goldcorp has already received the full proceeds.

The financing initially looked like a big win for the lead dealers, particularly GMP, which has seen muted deal flow in recent quarters. However, the underwriting syndicate, which is rather large and includes global banks as well as boutique mining shops, is now responsible for selling the Tahoe shares to investors, and that process is struggling, according to people familiar with the deal.

The total number of shares sold falls anywhere between 25 per cent and 50 per cent of the total size, according to these people.

MagIndustries Corp reveals evidence that subsidiaries allegedly paid major bribes in Republic of Congo – by Peter Koven (National Post – June 17, 2015)

June 17, 2015

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

Potash company MagIndustries Corp. has provided a glimpse of what appears to be a major bribery scandal involving its African subsidiaries. But there may not be any more details to come.

Mag is short of cash and needs money from its controlling shareholder, a Chinese firm called Evergreen Holding Group, to continue funding an independent investigation. Evergreen, which is alleged to be responsible for some of the bribery, said it couldn’t afford to put up any money.

That means the investigation has ground to a halt. Every Mag director who was working on it has resigned, and chief financial officer Geoff Woo was removed from his duties. Auditor Ernst & Young LLP has resigned, concluding it can’t complete its work amid the controversy.

But the allegations already presented suggest this could be one of Canada’s biggest foreign bribery scandals in years. It involves infractions, minor ones such as gifts of furniture, and major ones involving “black money” payments to government officials, and the construction of a villa for one official.

The darker side of solar power – by Konrad Yakabuski (Globe and Mail – May 28, 2015)

June 17, 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.

The Saudi Arabian oil minister’s recent comment that the world’s largest petroleum producer sees a postfossil-fuel world in which his country becomes a solar-power superpower must have comforted climate activists that even the worst offenders can come around. After all, what could be more redemptive than turning abandoned oil fields into solar farms?

Solar power’s image as “clean” and “limitless” has led princes and politicians alike to dole out huge subsidies to bask in its glow. Under the 2009 Green Energy Act, Ontario agreed to pay solar power operators as much as 10 times the market rate for the electricity they produce under 20-year contracts.

Not satisfied with risk-free deals that will make many solar players rich at consumers’ expense, Ontario’s solar industry is now lobbying for even more. And it’s leveraging solar’s apple-pie image to press politicians into giving it what it wants.

On Tuesday, the Canadian Solar Industries Association (CanSIA) released a poll purporting to show that three-quarters of Ontarians “would like to see the government invest more in solar powered electricity and in technologies that enable solar power.”