30th October 2014

Controversial Canadian KSM mine gets key govt. permits – by Mary Catharine Martin (Alaska Journal of Commerce – October 30, 2014)

http://www.alaskajournal.com/

JUNEAU — Kerr Sulphurets Mitchell, a British Columbia mine in the transboundary Unuk River watershed that concerns many Southeast Alaska fishermen, Native organizations, tourism and environmental groups, has received early construction permits from the British Columbia government.

“I think people are feeling not just a sense of urgency, and being threatened, but anger, too,” said Heather Hardcastle, commercial fishing outreach coordinator for Trout Unlimited. “To hear that they have these preliminary permits, road construction permits — it seems like such a slap in the face, because the project doesn’t yet have federal approval from the government in Canada.”

KSM has received provincial approval; Seabridge Gold, the company behind the project, expects the federal decision in November.

KSM, while a large mine, is just one of a handful Southeast Alaskans are concerned about. They and Alaska’s congressional delegation are working to spur international cooperation on the larger issue of mines in transboundary watersheds. Sen. Mark Begich hopes to soon jump-start that coordination.

Rob Sanderson, Jr., Co-Chair of the United Tribal Transboundary Mining Work Group and 2nd Vice President of Central Council of the Tlingit and Haida Indian Tribes of Alaska, or CCTHITA, said the provincial approval and permitting “comes as no surprise.” Read the rest of this entry »

posted in British Columbia Mining, Canada Mining, International Media Resource Articles, Mining Conflict, United States Mining and History | 0 Comments

30th October 2014

Barrick Gold Trims Cost Forecast After Expenses Drop – by Liezel Hill (Bloomberg News – October 30, 2014)

http://www.bloomberg.com/

Barrick Gold Corp. (ABX), the largest producer of the precious metal, reduced its forecast for operating costs this year after reporting third-quarter expenses that beat analysts’ estimates.

So-called all-in sustaining costs will be $880 to $920 an ounce, compared with a previous range of $900 to $940, Toronto-based Barrick said yesterday in its third-quarter earnings statement.

Barrick is among gold producers that have reined in spending and delayed growth plans after the metal’s 28 percent decline last year. Third-quarter costs fell 8.8 percent to $834 an ounce, compared with the $916 average of three estimates.

“Their earnings look reasonably good, the cash costs are good, the guidance looks good,” David Christensen, chief executive officer of San Mateo, California-based ASA Gold & Precious Metals Ltd., said in a phone interview. His company manages $250 million including Barrick shares. “All in all, it looks like they’ve done a good job.”

Earnings excluding one-time items were 19 cents a share, topping the 17-cent average of 23 estimates compiled by Bloomberg. Sales declined 13 percent to $2.6 billion, exceeding the $2.49 billion average estimate. Read the rest of this entry »

posted in Barrick Gold Corporation, Canada Mining, Canadian Media Resource Articles, Gold and Silver | 0 Comments

30th October 2014

Minister promotes N.L. iron ore in China – by Ashley Fitzpatrick (St. John’s Telegram – October 30, 2014)

http://www.thetelegram.com/

Lab West waiting as Derrick Dalley presses mining sector investment

Eight months after the idling of the Scully Mine in Wabush, less than a month after putting a pin in construction of a mine-fuelling power line and facing continued, dismal pricing for iron ore, the Government of Newfoundland and Labrador is actively promoting iron mining in Labrador West.

Natural Resources Minister Derrick Dalley told The Telegram Wednesday the potential in iron ore was key to his presentations and conversations during a 10-day mission to China earlier this month.

He took to the microphone at industry gatherings in Shanghai and Beijing, at the Canada Natural Resources Forum and Canada Mineral Investment Forum. He met with the Canadian Ambassador to China, representatives for China’s National Development and Reform Commission, and Ministry of Land and Resources, and steel producers from companies including Wisco and Hebei Iron and Steel.

“From my perspective, it was a great opportunity to reinforce the relationship that we had forged in recent years, to understand the China economy, but as well to present on behalf of the province some opportunities and to encourage Chinese investment,” he said.

The province, it was noted in a statement issued earlier this month, provided $13,900 to help Mining Industry NL representatives make the trip and maintain a trade show booth at China Mining, the continent’s largest mining conference. Read the rest of this entry »

posted in Asia Mining, Canada Mining, Canadian Media Resource Articles, Iron Ore | 0 Comments

30th October 2014

CEO Mocks Analyst, Refuses To Answer His Question On Public Webcast Because His Stock-Price Target Is Too Low – by Myles Udland (Business Insider – October 29, 2014)

http://www.businessinsider.com/

Lourenco Goncalves, CEO of the mining and natural resources company Cliffs Natural, doesn’t take questions from haters.

On Cliffs’ earnings conference call on Tuesday morning, Goncalves told Wells Fargo analyst Sam Dubinsky that he wouldn’t answer Dubinsky’s questions because “you already know everything about my company.”

“You have a $4 price target and you think we can’t sell assets, so I’m going to take the next question, I’m not going to answer you,” Goncalves said. It is a jarring exchange.

In a note to clients following the report, Dubinsky wrote that Goncalves was “pretty bold” on the earnings call. It was also Goncalves’ first earnings call as CEO since being named to the position on Aug. 7.

And the exchange, or really just the shutting down of Dubinsky’s questions by Goncalves, shows some of the complications inherent in the relationship between companies and analysts.

It is Dubinsky’s job, as a research analyst, to publish his assessment of the companies in his coverage area and, based on this work, publish a recommendation on how he believes the stock will perform going forward. Read the rest of this entry »

posted in Canada Mining, Cliffs Natural Resources, International Media Resource Articles, Iron Ore, United States Mining and History | 0 Comments

29th October 2014

News Release: New survey of ‘hidden’ supply sector nearly doubles mining contributions to Ontario’s economy

www.camese.org

October 28, 2014

The industrial sector providing equipment, supplies and services to the global mining industry, generates 68,000 jobs across Ontario, contributing billions to Ontario’s GDP.

Markham, Ontario – A new economic impact survey reveals information previously lacking about the mining supply and services (MSS) industry, which The Conference Board of Canada has called a ‘hidden’ sector, not directly measured by Statistics Canada.

The study, executed by PricewaterhouseCoopers LLP for the Canadian Association of Mining Equipment and Services for Export (CAMESE) is based on the activities of 913 companies that consider themselves mining suppliers in 2011.

Jon Baird, the outgoing Managing Director of CAMESE says: “Finally we have proof of the important economic contribution of Ontario’s mining suppliers, supporting not only the province’s mines, but servicing mining activity worldwide.”

Mining supply activity occurs throughout Ontario. While one-third of the companies’ head offices are in Northern Ontario, 21 percent are in the Greater Toronto Area and nearly half are in other parts of the province. Read the rest of this entry »

posted in Canada Mining, Ontario Mining, Sudbury, Ontario, Canada Mining Supply and Services Sector | 0 Comments

29th October 2014

Teck Resources water-treatment plant shut after dead fish found – by Mark Hume (Globe and Mail – October 28, 2014)

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.

VANCOUVER — A $100-million treatment plant that is a key piece of Teck Resources Ltd.’s plan to address a selenium pollution problem in British Columbia’s Elk Valley has been taken off line because of a fish kill.

In a statement, Teck says the Line Creek plant, which went into operation in July, temporarily shut down “as a precautionary measure” while technicians try to figure out what went wrong. Teck states a problem was first noticed Oct. 16 when “fish were found deceased in the area of the water-treatment facility.”

A total of 45 fish were found dead near the plant, which was built as part of a $600-million, five-year plan to address the pollution threat to westslope cutthroat trout and other aquatic life in the Elk Valley.

Environment Canada recently reported selenium levels are so high in the Fording River that trout are hatching with deformed gills, fins, jaws, spines and craniums. Teck’s statement says the cause of the Line Creek fish kill isn’t known at this time. Read the rest of this entry »

posted in British Columbia Mining, Canada Mining, Canadian Media Resource Articles, Mining Environmental Accidents | 0 Comments

29th October 2014

Sudbury mines given hundreds of health and safety work orders (CBC News Sudbury – October 29, 2014)

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

Orders cover such areas as hoist maintenance, ventilation, and preventing water accumulation

Details of health and safety orders issued to Sudbury-area mines hint at the dangers of working underground.

The Ministry of Labour provided CBC News a breakdown of orders that have been given to First Nickel’s Lockerby Mine, Vale’s Stobie and Creighton Mines, Xstrata’s Nickel Rim South and Quadra FNX/KGMH International’s Levack mine over the past three years.

The orders cover such areas as hoist maintenance, ventilation, and preventing water accumulation. Out of the five, Lockerby Mine had the most orders, totalling more than 200. Stobie had the second highest number, at more than 180. The other three had fewer than 100 each.

​NDP mining critic and Timmins-James Bay MPP Gilles Bisson speculated on the varying number of work orders issued to the mines.

“Is it the style of management? Is it what is going on with the workers? But clearly, we need to make sure that whatever is going on there is properly dealt with,” he said. Bisson said the number and types of orders don’t provide a clear enough picture to make any quick judgments. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Glencore-Xstrata PLC, Mining Labour Issues and History - Sudbury and Global, Ontario Mining, Vale | 0 Comments

29th October 2014

Gold Mining Stocks Diverge in Wake of Metal’s Decline – by Liezel Hill (Bloomberg News – October 28, 2014)

http://www.businessweek.com/

A chasm is opening up between the best- and worst-performing gold mining stocks as the price of the metal languishes near a four-year low.

Companies with low-cost mines and little or no net debt, including Eldorado Gold Corp. (ELD) and Randgold Resources Ltd. (RRS), have beaten gold’s 2.5 percent rise this year. More indebted rivals including Toronto-based Barrick Gold Corp. (ABX), the world’s largest producer, and Yamana Gold Inc. (YRI) have declined more than 15 percent.

There were 115 percentage points separating the average of the five best and five worst performers this year through yesterday in the Standard & Poor’s/TSX Global Gold Sector Index, almost double the spread in the same period last year, according to data compiled by Bloomberg.

“There’s been a very big divergence between the performance of gold equities globally,” Neil Gregson, a London-based natural-resources equities fund manager at JPMorgan Chase & Co., said in a phone interview. Last year, gold stocks fell more or less across the board as the metal plunged the most in three decades. In contrast, this year “it’s very, very stock-specific,” Gregson said.

Gold miners as a group are trading at their cheapest relative to the price of the metal in at least 30 years, according to data compiled by Bloomberg. Gold futures, which are wallowing about $50 above a four-year low, rose 0.2 percent to $1,231.20 an ounce at 9:34 a.m. in New York. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Gold and Silver | 0 Comments

27th October 2014

Aboriginal rights: A simple matter of rights denied – by Jim Coyle (Toronto Star – October 26, 2014)

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.

“People went into the Ring of Fire under the old idea that they could get what
they wanted under the old terms. And it turns out that under the new terms it’s
going to be done differently. This is the shifting of power, just as the pipeline
story is the shifting of power. Suddenly, people are realizing that they can’t get
those pipelines without the aboriginals. That’s real power. This is not the same
Canada.” (Public thinker John Ralston Saul)

If the biggest favour one human being can do another is to speak the truth, especially when that truth is uncomfortable to hear, then Canadians probably owe John Ralston Saul a collective nod of thanks.

To this high season of books by and about aboriginal people in Canada, Saul this week adds The Comeback, a celebration of how native people are empowering themselves, a review of how they’ve been (and continue to be) wronged, and a warning that Canada is at an historic moment when this missing piece in nation-building must be addressed.

He does not claim to speak for aboriginal Canadians. More than ever, they do that for themselves, he says. “There’s a critical mass of aboriginal thinkers and leaders and writers who are using the methods which can get to the population at large — very fine novels, very fine essays, very fine public arguments,” he told the Star. Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Canada Mining, Canadian Media Resource Articles, Ontario's Ring of Fire Mineral Discovery | 0 Comments

27th October 2014

Doomsay away, it’s still China’s century – by David Olive (Toronto Star – October 25, 2014)

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.

Why China matters, even as alarms are sounding about a looming debt crisis in the People’s Republic.

More signs that this century is destined to be recalled as China’s century as much as America’s have appeared in recent weeks, even as alarms have recently been sounded about a looming debt crisis in the People’s Republic, and an alarmist but influential report this week forecasts plunging growth rates in China’s economy through to 2025.

China matters, of course, as a long-time exporter of affordable goods that have increased the standard of living, and reduced the cost of living, for hundreds of millions of North Americans and Europeans. China is also an increasingly important customer for imports. It is now the world’s biggest buyer of industrial robots, for instance. And Beijing long ago assigned to Montreal-based Bombardier Inc. the megaproject of building China’s state-of-the-art intercity commuter rail network.

China has also rapidly created industries that generate vast amounts of electric power and manufacture cars and trucks, jetliners and advanced environmental-protection goods, gaining an early lead on the U.S. in, for instance, solar panels.

“China shouldn’t be underestimated,” economics columnist John Cassidy wrote this week in The New Yorker. “Whatever one thinks of (China’s) authoritarian state-capitalism model, its success in building industries from scratch cannot be denied.” Read the rest of this entry »

posted in Asia Mining, Canada Mining, Canadian Media Resource Articles, Commodity Super-Cycle | 0 Comments

27th October 2014

Federal bill to boost transparency of public, private resource companies – by Shawn McCarthy (Globe and Mail – October 25, 2014)

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.

OTTAWA — he federal government has introduced legislation requiring resource companies to publish what they pay to foreign and domestic governments, with a plan to include First Nations governments after two years.

Representatives of mining and oil and gas industries welcomed the bill Friday, saying it would make it easier for them to demonstrate the benefits of their investments to local communities at home and abroad.

The long-promised legislation was part of an omnibus bill introduced Thursday, and will impose fines for companies that fail to report payments exceeding $100,000. It covers all publicly traded companies, as well as privately held ones that meet two of the following three conditions: have at least $20-million in assets, $40-million in revenue or 250 employees.

Prime Minister Stephen Harper promised to pursue the “publish-what-you-pay” initiative at a G20 meeting in Britain in 2013. Some industry groups had urged the provincial securities commissions to take the lead on the effort to be consistent with similar rules in the United States and the European Union. Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Canada Mining, Canadian Media Resource Articles | 0 Comments

27th October 2014

‘Please tell people about this:’ London students’ horror at Dominican Republic mines – by Mark Spowart (Metro News – October 27, 2014)

http://metronews.ca/

Three London students were shocked by what they found last winter during a trip to the Dominican Republic. Canadian mining companies, they say, are destroying lives in the country.

“We visited the Barrick Gold mine, and while we were there, we spoke with a woman named Juliana (Rodriguez). She is 82 years old and has lived in the area for all of her life,” Klaire Gain said. “She told us the last four years, which (has seen) Barrick Gold mining in the region, have been the worst years of her life.”

Now, Gain, Claire Morrow and Natasha Jimenez — all recent graduates of the social justice and peace program at King’s University College — are working to show the world what they witnessed. Using their own money, and some brought in through fundraisers, the trio travelled back to the region this summer.

They spent two months living in the area, working on farming co-ops, meeting and talking with as many residents, along with environmental and academic experts, as they could. They also hired former CBC cameraman Mark Visser, and flew him to the region where he filmed more than 100 hours of footage for a documentary expected to be ready by spring 2015. Read the rest of this entry »

posted in Barrick Gold Corporation, Canada Mining, Canadian Media Resource Articles, Gold and Silver, Latin America Mining, Mining and Oil Sector Image | 0 Comments

24th October 2014

Vale Coming of Age as Nickel Heavyweight as Prices Sink – by Juan Pablo Spinetto (Bloomberg News – October 23, 2014)

http://www.bloomberg.com/

Vale SA (VALE5), whose $18 billion base-metal incursion was beset by a slew of delays and stoppages, is growing nickel output at the fastest pace in six years at a time of tumbling prices for the stainless steel ingredient.

The Rio de Janeiro-based company beat analysts’ estimates to post a 16 percent jump in nickel production in the third quarter, taking total output of the metal this year to 201,400 metric tons. That puts Vale, which plans to produce 289,000 tons of nickel in 2014, on track to challenge top producer OAO GMK Norilsk Nickel, which targets as much as 230,000 tons.

After winning a battle to take over Inco Ltd. in 2006, Vale is leaving behind a series of setbacks including strikes in Canada, plant faults in Brazil and an acid spill in New Caledonia. While its earnings outlook was boosted by nickel’s first-half rally, prices have plunged 24 percent from a Sept. 8 peak and are down about 50 percent since the Inco deal.

“It’s not the best timing in the world,” Marcel Kussaba, an equity analyst at Quantitas, which oversees 16.6 billion reais ($6.6 billion) including Vale shares, said from Porto Alegre, Brazil. “There is the feeling that Vale is starting to deliver when the environment is bad.”

Vale said in its third-quarter production report yesterday that nickel climbed to 72,100 tons, beating a 68,800-ton average forecast by nine analysts surveyed by Bloomberg, the unit’s best performance for a third quarter since 2008, despite a planned maintenance at its Thompson project in Canada. Read the rest of this entry »

posted in Canada Mining, International Media Resource Articles, Nickel, Vale | 0 Comments

24th October 2014

The limits of Ecuador’s shakedown statism – by Peter Foster (National Post – October 24, 2014)

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

Ecuador is run by the left-wing caudillo windbag Rafael Correa, whose hero was Hugo Chavez

The great eighteenth century lexicographer and wit Samuel Johnson described second marriage as the “triumph of hope over experience.” How then might one characterize the tendency of Canadian mining companies to return again and again to the altar of commerce with foreign government partners who recall Glenn Close in Fatal Attraction?

This week, Vancouver-based Lundin Group confirmed that a subsidiary would take over the Fruta del Norte prospect in Ecuador from Toronto-based Kinross Gold Corporation for US$240 million. Ecuador is run by the left-wing caudillo windbag Rafael Correa, whose hero was Hugo Chavez, the man who turned oil-rich Venezuela into a basket case.

Mr. Correa’s preferred mode of money-raising is the shakedown. The two most spectacular examples in recent years have been an attempt, via the “Yasuni Initiative,” to blackmail the rest of the world into putting up US$3.6 billion in return for Mr. Correa (italics) not (close italics) drilling for oil in an Amazonian nature reserve; then there is a beyond-fiction trumped-up court case against California-based Chevron Corp. seeking (at last count) US$9.5 billion for alleged damage to the rainforest.

Kinross took a massive flier by buying Fruta del Norte in 2008 for $1.2 billion when Ecuador had no clear mining policy. The company’s attempt to develop FDN turned out to be the proverbial marriage from hell. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Latin America Mining | 0 Comments

24th October 2014

How the Fruta del Norte project is another high-risk, high-reward gamble for Lundin Group – by Peter Koven (National Post – October 23, 2014)

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

If anyone was going to tackle the Fruta del Norte project, it would naturally be Lukas Lundin.

The Vancouver-based mining entrepreneur has never shied away from investing in the most politically challenging parts of the world. And by getting into countries including Argentina and the Democratic Republic of Congo ahead of the pack, the Lundin Group has taken hold of many world-class projects at low cost and made a fortune for its shareholders.

Fruta del Norte (FDN) fits the bill for Mr. Lundin perfectly. It is arguably the world’s best undeveloped gold deposit, with 6.8 million ounces of very high-grade reserves. It is also in Ecuador, a country that has been inhospitable for mining investment and has scared away the rest of the gold sector. As a result, the asset was available at a bargain-basement price.

“One of those things the Lundin family has done so well over so many years is [obtaining] great assets,” Ron Hochstein, chairman of Lundin shell company Fortress Minerals Corp., said in an interview. “And also having the ability to work with governments and with the population to see them through.”

Fortress announced late Tuesday it will buy FDN from Kinross Gold Corp. for US$240-million in cash and stock. Fortress will be renamed Lundin Gold Inc. and plans to use FDN as the foundation to build a significant gold producer. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Gold and Silver, Latin America Mining | 0 Comments

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