UPDATE 1-Zambia power cuts hit Canada’s First Quantum, Barrick – by Chris Mfula (Reuters U.S. – July 28, 2015)

http://www.reuters.com/

(Reuters) – Power cuts in north-western Zambia, Africa’s second-biggest copper producer, have affected production at mines run by Canada’s First Quantum Minerals and Barrick Gold, an industry body said on Tuesday.

Zambian power utility Zesco Ltd is limiting power it supplies to customers, including mining companies, after water levels at its hydro-electric plants dropped due to drought.

“Power was reduced to both First Quantum Minerals and Lumwana over the weekend,” Jackson Sikamo, President of the Zambian Chamber of Mines said.

Lumwana is Barrick’s open-pit copper mine.

First Quantum said in a statement its Kansanshi mine, smelter and its greenfield Sentinel project were running at reduced capacities.

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Jobs ‘Bloodbath’ Hits South Africa – by Rene Vollgraaff and Paul Vecchiatto (Bloomberg News – July 28, 2015)

http://www.bloomberg.com/

South Africa is bleeding jobs as falling commodity prices and increasing wage demands force mining companies to cut back on staff.

In the past two months, at least seven listed mining companies announced plans to cut as many as 10,000 jobs in Africa’s most-industrialized economy. As the world’s biggest producer of platinum and manganese, mining accounts for more than half of the nation’s exports and employs about 440,000 people.

Weak economic growth because of power shortages, labor strikes and high wage demands are putting the government’s target of creating six million new jobs by 2019 out of reach.

A state report on Wednesday will probably show the unemployment rate rose to 26.5 percent in the second quarter from 26.4 percent, according to the median estimate of seven economists. That would be the highest level among 65 countries tracked by Bloomberg.

“We are heading for a jobs bloodbath,” Mike Schussler, chief economist at Johannesburg-based research group Economists.co.za, said by phone on July 24.

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Victoria shuts down Yellow Giant gold mine in northwestern B.C. over pollution spills – by Gordon Hoekstra (Vancouver Sun – July 27, 2015)

http://www.vancouversun.com/

Gitxaala First Nation plans legal action against small operation, but environment ministry says risk to animals, humans minimal

The province has shut down the small Yellow Giant underground gold mine on Banks Island in northwest B.C. for spilling pollution on land and into creeks, lakes, and a wetland.

The B.C. environment ministry said the discharge reached the ocean through a creek, several beaver-dam-created wetlands and Banks Lake before entering the ocean at Surrey Bay, but it is not believed it will harm humans or animals.

The Yellow Giant incident is the latest of several mine waste spills — although much smaller in magnitude — since the catastrophic dam failure at Imperial Metals’ Mount Polley gold and copper mine in August 2014. There have been small spills at the Myra Falls and Copper Mountain mines in the past year.

First Nations and conservationists are concerned about the effect of this latest spill on animals and aquatic life, including salmon, at the island located about 100 kilometres south of Prince Rupert.

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Fresh bloodletting among gold mining stocks – by Frik Els (Mining.com – July 27, 2015)

http://www.mining.com/

Hedge funds bet record 340 tonnes the gold price will continue to fall as bears rip into majors – Barrick falls to 1989 level, Goldcorp at 11-year low

Renewed fears about Chinese equity markets after the worst points loss in Shanghai for eight years gave the gold price a lift on Monday.

But the metal continues to trade close to five-year lows after settling at $1,093, up only $7.40 from Friday’s close. An earlier move above the psychologically important $1,100 level turned out to be brief. A return to its recent dip below $1,180 would represent a 50% retracement of the metals 12-year bull run.

The gold market has turned overwhelmingly bearish with so-called managed money investors such as hedge funds going short – placing bets that the gold price will decline – to the tune of 12.1m ounces or 340 tonnes, a new record high.

According to the Commodity Futures Trading Commission’s Commitment of Traders data for the week to July 21, large speculators now hold a net short position for the first time since at least 2006, when the data was first being tracked.

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China air quality crackdown set to hurt iron ore demand – by Michael Roddan (The Australian – July 28, 2015)

http://www.theaustralian.com.au/business

The troubles for the iron ore price are set to continue, with a Beijing crackdown on air pollution in September expected to reduce demand from the region’s steel mills.

Meanwhile, Australian exports of the commodity are set to rebound from a sluggish July, positioning the price of Australia’s biggest export for a renewed plunge, after only recently bouncing from a decade-low.

The Chinese government is likely to limit steel production in Hebei province, which surrounds Beijing and major iron ore port Tianjin, in a bid to ensure higher air quality during World War II commemorations in September, Macquarie Wealth Management says in a research note.

The clear-sky days will be similar to the “APEC Blue” of last November, when the government clamped down on emissions during the 26th annual gathering of Asia Pacific leaders in Beijing.

“Steel mills near Beijing, particularly those in Hebei province, will probably be forced to shut down production again,” Macquarie said in a research note. “This clearly spells trouble for iron ore prices.”

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My Turn: One year after disaster, mining threats remain – by Aaron Angerman (Juneau Empire – July 28, 2015)

http://juneauempire.com/

As a member of the Shtax’heen Kwaan (Stikine Tribe) in Wrangell, I am frightened to think that what happened at Mount Polley could happen here in our back yard now that the Red Chris Mine is operational. That the fish we’ve relied on traditionally for thousands of years could be contaminated or disappear, that the local commercial fishing industry could be decimated, and that we could see the local businesses that rely on the industry close doors.

Neither the community of Wrangell or the Stikine Tribe were consulted in the years of planning and construction upstream. Tahltan Nation is receiving financial benefits, but the waste flows immediately out of their waters and into ours. If the tailings dams were to give way at Red Chris Mine, an entire community will be left to pick up the pieces of a puzzle that will never again be whole.

The Red Chris Mine is located on the Iskut River, the largest tributary in the Stikine headwaters. Red Chris is owned by Imperial Metals, the same company responsible for Mount Polley. Red Chris is a larger operation than its sister mine, and it has tailings that are much more toxic.

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Canadian investors have to take China’s growth seriously – by Scott Barlow (Globe and Mail – July 28, 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 stomach-churning plunge in Chinese stocks is taking a heavy toll on Canadian markets, and Beijing’s failure to stanch the bleeding threatens further volatility in the weeks ahead.

China’s Shanghai composite tumbled 8.5 per cent Monday – that’s the equivalent of a 1,200-point drop in Toronto – as government support of equity markets could not stop the majority of stocks from falling by the maximum 10 per cent limit.

The Chinese benchmark has now declined by 28 per cent since its mid-June high.

The market collapse underscores a significant slowdown in China that is rippling through the global economy. Trade activity in Asia is declining rapidly. For example, the CPB merchandise: Asia import volume index (the CPB Netherlands Bureau for Economic Policy compiles the most widely used trade benchmarks) has slid 12 per cent so far in 2015. Sluggish trade activity strongly suggests China’s gross domestic product growth is slowing, and lends support to those questioning the validity of government reports on the economy.

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NEWS RELEASE: Ned Goodman Rejoins Excellon Board of Directors

TORONTO, ON–(Marketwired – July 28, 2015) – Excellon Resources Inc. (TSX: EXN)(OTC: EXLLF) (“Excellon” or the “Company”), Mexico’s highest grade silver producer, is pleased to announce that Mr. Ned Goodman has rejoined the Company’s Board of Directors, effective immediately. Mr. Goodman served as a board member of Excellon from April 2013 to February 2014 and Special Advisor to the board until recently.

“We are delighted to welcome Ned back on the Board,” stated Brendan Cahill, President and Chief Executive Officer. “His experience as an industry leader and company builder is invaluable. He returns to the Board at a vital time, as we upgrade Platosa into one of the lowest cost silver mines in the industry and position the Company to take full advantage of the opportunities afforded by current market conditions.”

Mr. Goodman has made transformative and enduring contributions to Canada’s minerals industry and capital markets as a company-builder, merchant banker and investment advisor during a dynamic career spanning almost half a century. He applied his geological training and business acumen to help build several successful mining companies — notably International Corona and Kinross Gold — and nurtured many other mineral producing companies through astute and timely investments.

He is considered one of the leading architects of Canada’s investment management industry.

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