19th December 2014

Tax hike, copper prices force Barrick to shutter Zambian mine – by Rachelle Younglai (Globe and Mail – December 19, 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.

Barrick Gold Corp. said it will suspend operations at its Zambian copper mine and record an impairment charge after the African country’s government more than tripled its mining royalties.

The suspension is the latest setback for Barrick, which borrowed heavily to acquire the Lumwana mine in 2011, when copper prices were soaring.

The royalty on open pit mining in Zambia will jump to 20 per cent from the current 6 per cent, under a new law that will go into effect Jan.1.

“The introduction of this royalty has left us with no choice but to initiate the process of suspending operations at Lumwana,” Barrick’s co-president Kelvin Dushnisky said in a statement.

Barrick, which employs 4,000 workers at Lumwana, said it would start cutting jobs in March after giving the Zambian government the mandatory two-months notice. The mine will be idled by the middle of the year.

It is unknown whether Barrick will be able to renegotiate rates with the government before it shutters the mine. Read the rest of this entry »

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

18th December 2014

Activist launches boardroom battle over fees to mining financier – by Jacquie McNish (Globe and Mail – December 17, 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.

Globe-trotting junior mining financier Stan Bharti has been targeted by a shareholder activist in a boardroom battle that could test the limits of compensation at money-losing companies.

Mr. Bharti, through his private, family-owned Toronto company Forbes & Manhattan, manages a large portfolio of publicly listed resource startups with mostly undeveloped properties in such remote corners as Kurdistan, Ethiopia and Mongolia. Mr. Bharti and a close-knit group of executives and directors have pocketed millions of dollars in consulting fees, bonuses and other payments at a time when a number of companies managed by Forbes & Manhattan have suffered declining financial health and stock performance.

His roster of advisers and directors includes retired Canadian major-general Lewis MacKenzie, former federal cabinet minister Pierre Pettigrew and Canada’s former ambassador to Iran, Ken Taylor. Mr. Bharti’s most prominent adviser, CNN talk show host Larry King, described himself in a Forbes & Manhattan promotional video as a global ambassador. “I provide the contacts, Stan does the close,” he said. which “equals success.”

In recent years, Mr. Bharti and his family have hosted lavish investor conferences at exclusive resorts, in Mexico and Brazil, featuring vodka-cooling ice sculptures and high-profile businessmen such as Eike Batista and Jim Rogers. Read the rest of this entry »

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

18th December 2014

NEWS RELEASE: Barrick to Suspend Operations at Lumwana Following Passage of New Mining Royalty

TORONTO, ONTARIO–(Marketwired – Dec. 18, 2014) – Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) today announced that the company will initiate procedures to suspend operations at the Lumwana copper mine in Zambia following the passage of legislation that raises the royalty rate on the country’s open pit mining operations from six percent to 20 percent.

The new taxation regime, which is expected to go into effect on January 1, 2015, eliminates corporate income tax, but imposes a 20 percent gross royalty on revenue without any consideration of profitability.

“The introduction of this royalty has left us with no choice but to initiate the process of suspending operations at Lumwana. Despite the progress we have made to reduce costs and improve efficiency at the mine, the economics of an operation such as Lumwana cannot support a 20 percent gross royalty, particularly in the current copper price environment,” said Co-President Kelvin Dushnisky .

“We sincerely regret the impact this will have on our people, as well as the communities and the businesses that depend on Lumwana, and we remain hopeful that the government will consider an alternative solution that will allow the mine to continue operating,” said Co-President Jim Gowans .

In the meantime, the company will initiate procedures to transition Lumwana to care and maintenance. Major workforce reductions are planned to commence in March, following the legally required notice period. Read the rest of this entry »

posted in Africa Mining, Barrick Gold Corporation, Canada Mining, Copper | 0 Comments

18th December 2014

UPDATE 1-Miner Sherritt says U.S. exports possible if Cuba embargo lifts – by Narottam Medhora (Reuters U.S. – December 17, 2014)

http://www.reuters.com/

Dec 17 (Reuters) – The United States move to normalize relations with Cuba could pave the way for Sherritt International Corp to export nickel and cobalt to one of the biggest markets in the world, the miner’s Chief Executive David Pathe told Reuters.

Sherritt shares jumped as much as 36 percent on Wednesday after President Barack Obama moved to thaw a five-decade freeze in relations between the two countries and said he would speak to the U.S. Congress about lifting the U.S. embargo on Cuba.
Toronto-based Sherritt is the largest independent natural resources company in Cuba and operates the Moa nickel mine in the eastern part of the Caribbean island state.

Due to the Cuban origin of its nickel and cobalt, the company is currently unable export to the United States, even though the metals are refined in western Canada.

“If the embargo were to be lifted, we could export some of that nickel and cobalt into the U.S. market, which is obviously one of the biggest markets in the world,” CEO Pathe said in an interview.

“It would also give us access to U.S. suppliers for mining equipment and supplies and services for our oil and gas industries.” Read the rest of this entry »

posted in Canada Mining, International Media Resource Articles, Latin America Mining, Nickel Laterites | 0 Comments

17th December 2014

Poland’s KGHM has talks with Canadian rival over permit dispute – by Adrian Krajewski and Anna Koper (Reuters India – December 17, 2014)

http://in.reuters.com/

WARSAW – Dec 17 (Reuters) – Europe’s second largest copper producer KGHM has held talks with Canadian-owned rival Miedzi Copper about two disputed Polish concessions which are the subject of a legal battle, KGHM said on Wednesday.

Miedzi Copper filed a case in a Polish court against the government after two copper permits it had been awarded were withdrawn by the government following a challenge from KGHM, which itself wanted to develop the concessions.

“KGHM management met with Miedzi Copper management,” KGHM spokesman Dariusz Wyborski said. “We’re aiming at a solution that’s best for us, Miedzi Copper and the region.”

He said further geological studies on the concessions would be carried out “to accurately reflect on the possibilities sketched out at the meeting.” He did not elaborate. Miedzi Copper declined to comment.

KGHM, part state owned and the only miner producing copper in Poland, has previously said it challenged the award of the permits to Miedzi copper because it had spent time and money researching the permits, adjacent to areas it is already mining.

The government said the permits were withdrawn because of shortcomings in the way the bidding process was administered. Read the rest of this entry »

posted in Canada Mining, Copper, Europe Mining, International Media Resource Articles | 0 Comments

16th December 2014

Researcher poses two scenarios for Nunavut gold mine closure – by David Murphy (Nunatsiaq-On-Line.ca – December 16, 2014)

http://www.nunatsiaqonline.ca/

“People are actually left with mining skills, but not with other skills once the mine closes”

The 1,800-person community of Baker Lake has less than three years to go before the Meadowbank gold mine, about 100 kilometres from the town, closes down.

Until then, questions linger about how Nunavut’s only inland hamlet can support itself afterwards, problem free.

“People said overwhelmingly that — with the mine closing in 2017 — there is very little awareness and very little preparedness for that scenario,” said Annabell Rixen, a master’s student assessing the mine closure and community preparedness as part of a project called “Tuktu.”

Rixen’s presentation was part of the four-day Arctic Change conference, hosted by ArcticNet, which unfolded Dec. 8 to Dec. 12 at the Ottawa Conference Centre. Rixen boiled her research down to two visions: a worst and best-case scenario.

The best case: job training programs are implemented to stimulate new local businesses and money is injected into mental health, childcare and cultural programming. Also, dwindling caribou numbers return to full strength.

“As the elders emphasized: let our land recover. We need to give our land the proper time to rejuvenate,” Rixen told Nunatsiaq News. Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Canada Mining, Gold and Silver, Northern Ontario/Canada Regional Media | 0 Comments

16th December 2014

NEWS RELEASE: Major Tribal Organizations Push U.S. State Department to Act on Transboundary Mine Concerns

National Congress of American Indians, Alaska Federation of Natives, and Alaska Native Brotherhood and Alaska Native Sisterhood Grand Camp Say U.S Tribal Voices Missing From Boundary Waters Dispute

WASHINGTON, DISTRICT OF COLUMBIA and JUNEAU, ALASKA — (Marketwired) — Dec/16/14 -- The largest tribal organizations in the Lower 48 and Alaska are backing efforts to protect key salmon rivers in Alaska/British Columbia (B.C.) threatened by large-scale mining developments in Canada.

The National Congress of American Indians (NCAI), the Alaska Federation of Natives (AFN), and the Alaska Native Brotherhood & Alaska Native Sisterhood have recently passed resolutions calling for the U.S. State Department to use its authority under the 1909 Boundary Waters Treaty and engage with Canada to protect threatened transboundary rivers.

Six Canadian mines in the headwaters of the Taku, Stikine and Unuk Rivers are in various stages of permitting and development. One of the mines — Red Chris – has its permits and financing in place and is poised to open at any time over the objections of a group of Tahltan First Nation citizens. Each of the threatened transboundary rivers, which begin in B.C. and drain into Southeast Alaska, produce millions of wild salmon and support some of the most prime salmon habitat left in North America. Unless steps are taken to protect Alaska’s downstream waters, these transboundary salmon face potential contamination from acid mine drainage, heavy metals and other pollutants. These toxins could leach from the mines or be released in a catastrophic accident similar to what happened at Mount Polley mine in central B.C. on Aug. 4, 2014.

“The health of our rivers and streams is paramount for Alaska Natives and American Indians, especially those who rely on our traditional and customary ways of life. Read the rest of this entry »

posted in Aboriginal and Inuit Mining, British Columbia Mining, Canada Mining, United States Mining and History | 0 Comments

16th December 2014

A new cold war: Denmark gets aggressive, stakes huge claim in Race for the Arctic – by Tristin Hopper (National Post – December 16, 2014)

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

For years, the Race for the Arctic had promised to be one of the most gentlemanly land grabs in history: Using only science and a whiff of diplomacy, the oil-rich Arctic Ocean could be peacefully divvied up between Russia, Canada, the United States and Europe.

That is, until the tiny nation of Denmark approached the United Nations on Monday with a staggering claim to nearly one third of the total prize — including the North Pole.

“It is ironic that the only country that right now could be said to be acting provocatively in the Arctic is Denmark,” said Michael Byers, the Vancouver-based author of Who Owns the Arctic? speaking to Danish media on Monday.

Canada has not yet wrapped up its final claim to areas of the Arctic Ocean now considered international waters, although Ottawa has vowed to shoot for 1.2 million square kilometres of ocean, including the North Pole. There is no definitive scientific evidence that Canada has any claim to the North Pole, but that did not stop Citizenship and Immigration Minister Chris Alexander from issuing Santa Claus with Canadian citizenship last year.

On Monday, Rob Huebert at the University of Calgary’s Centre for Military and Strategic Studies called Denmark’s claim evidence that it was wrong to ever believe that the Arctic could be divvied up simply with geological data. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Oil and Gas Sector-Politics and Image | 0 Comments

15th December 2014

Transparency Act : Resource company payments to First Nations unveiled (CBC News Sudbury – December 14, 2014)

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

Most First Nations in northeastern Ontario receive funds from a mining, forestry or power company

For the first time, the amount of money northeastern Ontario First Nations receive from agreements with private resource companies has been made public. The figures were included in financial documents posted under the new First Nations Transparency Act.

Many bands have been reluctant to discuss specific figures in the past and the impact benefit agreements often prohibit the companies from discussing payment to neighbouring First Nations without band permission.

Some of the most surprising numbers in the newly released financial records are for Moose Cree First Nation on the James Bay Coast.

Its balance sheet shows $1.5 million coming from Detour Gold last year. Also listed under First Nation revenue is $3 million in company stock. But it also shows Moose Cree losing $6.2 million last year in the sale of Detour Gold shares.

Repeated phone calls and emails to the First Nation’s elected officials and administrative staff were not returned. Most First Nations in northeastern Ontario do get some amount of money from a mining, forestry or power company.

All of the bands along the James Bay Coast receive money from DeBeers, for its Victor diamond mine near Attawapiskat. Read the rest of this entry »

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

15th December 2014

Our Tarnished Maple Leaf – by Tom Sandborn (The Tyee.ca – December 15, 2014)

http://www.thetyee.ca/

Why the world sees an ugly Canada, and how to restore our image.

Remember when everyone seemed to love Canada? Travellers who displayed a maple leaf emblem on their shirts or backpacks could count on a friendly welcome in most countries in the world. Now, not so much.

We are perceived as ugly Canadians for reasons that include environmental foot dragging at home and complicity in death and destruction overseas.

Stare, for example, into the mirror submitted in October to the Inter-American Commission on Human Rights. A scathing document accuses Canada of failing to hold the many mining firms with head offices here accountable for the deaths and human rights abuses associated with their mines in Latin America.

”Canada has a very strong presence in the globalized mining industry with almost 1,500 projects in the region, and we’re aware of a great deal of conflict,” said Shin Imai, a lawyer with the Justice and Corporate Accountability Project (JCAP), commenting on a submission from the Canadian Network on Corporate Accountability.

”Our preliminary count shows that at least 50 people have been killed and some 300 wounded in connection with mining conflicts involving Canadian companies in recent years, for which there has been little to no accountability.” Read the rest of this entry »

posted in Canada Mining, Mining and Oil Sector Image, Northern Ontario/Canada Regional Media | 0 Comments

12th December 2014

A fair deal for natives – by Ken Coates (National Post – December 12, 2014)

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

Assembly of First Nations National Chief Perry Bellegarde, elected on Wednesday, has made his priority clear: “To the people across the great land, I say to you, that the values of fairness and tolerance which Canada exports to the world, is a lie when it comes to our people.” The national chief then declared that First Nations expected a far greater share of the country’s prosperity: “To Canada, we say, for far too long we have been dispossessed of our homelands and the wealth of our rightful inheritance.”

To most Canadians, Chief Bellegarde’s statement seems provocative, if not radical. Conditioned to believing that First Nations simply stand before the government of Canada, cap in hand, demanding additional funding, the general public likely looks on the latest call to action as yet another money grab. It is nothing of the sort.

The national chief, in calling for aboriginal people to receive a “rightful” share of the country’s prosperity, is asserting the First Nations’ expectation that resource-revenue sharing will become the norm across Canada. Only a few decades ago, such an argument would have been rejected out of hand.

Governments provided a variety of social welfare, housing and other payments, a process that cost the Department of Indian Affairs a great deal of money but did little to address the underlying socio-economic needs of aboriginal communities.

First Nations wanted something different. They believed, as Bellegarde himself has said many times, that the historical treaties only transferred land “to the depth of the plough,” leaving the question of control of the wealth below the surface unresolved. Read the rest of this entry »

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

11th December 2014

Canadian Bush Stories – Videos by Geologist and Prospector Frank Racicot

Pat Sheridan (PDAC 2013) from Frank Racicot on Vimeo.

 http://www.canadianbushstories.ca/

Pat Sheridan (1932-) Pat graduated from the U of T in 1955. The first conductor he ever worked on in New Brunswick turned out to be an ore body but didn’t become a mine until over 50 years later. As a bonus for finding the ore body, he chose a bottle of Queen Ann Scott whiskey…apparently not the best whiskey around at the time. It didn’t take long to realize that ore bodies were not that easy to find. He found the Lac des Illes mine near Thunder Bay and advises prospectors to be inquisitive and not believe everything they hear from geologists, keep exploring and work like hell.

Film Maker and Geologist Frank Racicot

Frank Racicot is the man behind Canadian Bush Stories. He is a trained geologist and prospector who makes a living working in the bush. His intense passion is mineral exploration. He has searched for gold, platinum, nickel, copper, diamonds, uranium and other commodities. He loves his work. Read the rest of this entry »

posted in Canada Mining, Mining Movies and Documentaries | 0 Comments

11th December 2014

Confronting the Potential Extinction of a Canadian Institution – by Tommy Humphreys (CEO.ca – December 10, 2014)

http://ceo.ca/

http://www.kaiserresearch.com/s/Home.asp

To a packed crowd in Vancouver yesterday, veteran junior resource analyst John Kaiser gave a presentation hosted by AME BC entitled, Confronting the Potential Extinction of a Canadian Institution.

Here is a link to the 59 slide PDF presentation, courtesy John Kaiser.

Mr. Kaiser has been closely involved with Canada’s venture capital markets for over thirty years. In the 80’s and early 90’s, he was a research analyst at various securities firms focused on the junior resource sector. In 1994 he started his own newsletter, known as Kaiser Research or Kaiser Bottom Fish Report, that has earned a reputation for being the most comprehensive data source on Canada’s public venture capital markets.

Mr. Kaiser has a bulletproof reputation and is a sought after guest on business television and at conferences.

In his presentation to the AME, BC’s mining lobby group, Kaiser begins by reviewing the junior resource markets from 1978 until today. In that time span, Canadian venture capital stock exchanges provided the early stage capital for countless wealth creating mineral discoveries, but has undergone a number of structural changes aimed at preventing frauds. In hindsight, Kaiser says these regulations are now overkill.

Kaiser believes there are four key narratives that drive investment in early stage mining equities, and notes that none of them appear to apply today. These Key Narratives are: Read the rest of this entry »

posted in Canada Mining, Northern Ontario/Canada Regional Media | 0 Comments

11th December 2014

Perry Bellegarde, fiery new AFN grand chief, will ‘reach out’ for larger share of resource revenues – by Mark Kennedy and Richard Warnica (National Post – December 11, 2014)

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

Perry Bellegarde, elected grand chief of the Assembly of First Nations on Wednesday and the now the most powerful native politician in Canada, has spent the last 16 years honing a single, unambiguous message.

To paraphrase another prairie politician who hit it big on the national stage, in Mr. Bellegarde’s view, the First Nations want in.

A career politician and longtime regional chief from Saskatchewan, Mr. Bellegarde has long argued for a broader interpretation of treaty rights, one that would see First Nations earn a much larger share of resource revenues and jobs.

In a fiery first speech as grand chief Wednesday, Mr. Bellegarde doubled down on that theme. “To the people across this great land, I say to you, that the values of fairness and tolerance which Canada exports to the world, are a lie when it comes to our people,” he said.

“Canada will no longer develop pipelines, no longer develop transmission lines, or any infrastructure, on our lands as business as usual. That is not on.”

His final remarks drew one of the loudest responses from the crowd: “Canada is Indian land,” he said. “This is my truth and this is the truth of our peoples.” Read the rest of this entry »

posted in Aboriginal and Inuit Mining, Canada Mining, Canadian Media Resource Articles, Oil and Gas Sector-Politics and Image | 0 Comments

10th December 2014

Investors tapped to fund gold fraud film – by Ben Bland (Financial Times – December 10, 2014)

http://www.ft.com/home/us

Jakarta – Two of the world’s toughest mining tycoons battle it out with a star geologist, a chancer and a dictator’s children for control of one of the world’s largest gold discoveries in the heart of the Indonesian jungle, until it is exposed as a huge fraud.

The true story of Canadian company Bre-X Minerals, which collapsed in 1997 after attaining a market capitalisation of $6bn, reads like a movie script and the producer of hit film Home Alone is trying to raise $18m from mining investors to put it on the silver screen.

Malcolm Burne, a serial mining entrepreneur and former Financial Times journalist, has given Hollywood producer Scott Rosenfelt $150,000 of seed capital and together they are tapping minerals investors from Canada to Australia to fund a film about a scandal that changed the industry.

“It’s an amazing story with political and financial intrigue and thousands of people’s lives shattered as well as those who are still standing tall like Peter Munk of Barrick Gold,” says Mr Rosenfelt, who has tentatively titled the film Bre X: King for a Day.

Gold-mining companies struggled to raise money for years after the fraud, which prompted stock market regulators in Canada and Australia to bring in rules forcing miners to disclose detailed technical information about new finds. Read the rest of this entry »

posted in Asia Mining, Canada Mining, Gold and Silver, International Media Resource Articles, Mining Movies and Documentaries | 0 Comments

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