Republic of Mining

Vale fertilizer deal on track despite BNDES delay -sources – by Tatiana Bautzer and Guillermo Parra-Bernal (Reuters U.S. – October 5, 2016)

October 6, 2016

http://www.reuters.com/

RIO DE JANEIRO – Oct 5 Vale SA’s plan to dispose of fertilizer assets remains on track despite a request last week by Brazil’s state development bank, BNDES, to analyze the transaction more carefully, according to two people with direct knowledge of the situation.

Terms of the deal, which involves the sale of certain assets to U.S.-based Mosaic Co, are unlikely to change significantly, one of the sources said on Wednesday, requesting anonymity to speak freely about the issue.

BNDES pushed back the vote on the fertilizer deal at a Vale board meeting last Thursday, the first person familiar with the situation said. O Globo columnist Lauro Jardim, without saying how the newspaper obtained the information, reported that day that BNDES had delayed the voting on the transaction to Oct. 20.

Wyoming coal counties best positioned to weather declining industry – by Henry Lazenby (MiningWeekly.com – October 4, 2016)

October 5, 2016

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – In dealing with the decline of US coal mining, western coal-producing states, such as Wyoming, are much better positioned to weather the market shift than their eastern counterparts, such as West Virginia and Kentucky, according to new analysis by Moody’s Investors Service.

Driven by weaker seaborne demand, lower natural gas prices and tighter emissions regulations, coal production is experiencing record declines in the three largest coal producing states.

As the downturn increasingly trickles down to local governments, Wyoming counties are benefiting from greater production levels, more favourable income and poverty indicators, as well as a lower reliance on state severance tax distributions, Moody’s states.

Miners May Avoid Shutdowns in Philippine Audit as Nickel Drops – by Cecilia Yap (Bloomberg News – October 4, 2016)

October 5, 2016

http://www.bloomberg.com/

A mining audit in the world’s top nickel supplier that’s threatened mass closures may see producers prevail, with companies signaling their confidence shutdowns can be avoided as they race to remedy problems flagged in the nationwide Philippine checkup. Futures dropped.

Nickel Asia Corp. said its Hinatuan Mining Corp. unit, among those slated for closure unless it fixes shortcomings, remains in operation a week after the audit’s findings and it’s expected to stay that way, according to a statement on Tuesday. Separately, OceanaGold Corp. said its Didipio copper-gold mine is also still in business and talks with officials have been constructive.

“I am highly confident that our Didipio operations will continue to operate without interruption,” OceanaGold President and Chief Executive Officer Mick Wilkes said in an exchange release on Tuesday. Talks include discussions with Environment Secretary Gina Lopez, who’s led the checkup, and the company said it was sticking with full-year production guidance for the site.

NEWS RELEASE: Marten Falls First Nation and Aroland First Nation Re-affirm Jurisdiction for Ring of Fire Transportation Planning

October 5, 2016

MARTEN FALLS FIRST NATION, ON, Oct. 5, 2016 /CNW/ – Marten Falls First Nation (MFFN) and Aroland First Nation (AFN) re-affirm their jurisdictional authority over their respective territories in Northern Ontario, in light of recent Ring of Fire transportation plan announcements by the Government of Ontario, Noront Resources and KWG Resources. In the recent Ontario Speech from the Throne, Ontario said it “will continue to work with First Nations and other partners to move forward with greater access to the Ring of Fire and remote First Nation communities.”

“Greater access to the Ring of Fire requires greater access and use of the lands and waters over which our First Nations have jurisdiction,” said Chief Bruce Achneepineskum of Marten Falls First Nation. “Our First Nations are determined that transportation planning for ‘greater access to the Ring of Fire’ must be fully inclusive of the First Nations whose rights and interests will be impacted‎ by transportation decisions. Our decisions will be based on seven-generation and sound environmental stewardship principles. Marten Falls First Nation and Aroland First Nation laws must be respected by all parties.”

“Our First Nations also expect mining companies to respect and abide by Ontario laws and decisions, especially the Terms of References for the Noront Resources Environmental Assessment,” said Chief Dorothy Towedo of Aroland First Nation.

Rush for resources drives China’s ‘three-deep’ science quest (South China Morning Post – October 5, 2016)

October 5, 2016

http://www.scmp.com/

Beijing has made it its mission to go deeper on land and sea or farther into space than was thought possible

China’s growing demand for scarce land and resources are just two reasons why it is pushing ahead with its space programme.

The Ministry of Land and Resources’ new five-year programme released last month identified deep space exploration as one of its “three-deep” strategies to help secure the country’s resources needs – the other two being deep-sea and deep-underground exploration.

China will have 27 satellites for terrestrial surveying and scientific research by 2020. The spacecraft will play major roles in land management, mineral deposit exploration and disaster relief. More than 90 per cent of the remote sensing satellites should be domestically produced, the ministry said in the plan.

[Brazil] New Vale Heartland Has Jilted Lawmakers Plotting Against CEO – by R.T. Watson and Anna Edgerton (Bloomberg News – October 5, 2016)

October 5, 2016

http://www.bloomberg.com/

Building the world’s next major iron-ore hub has Vale SA investors applauding the prospect of higher earnings and a group of scorned politicians plotting to oust the company’s leader.

Chief Executive Officer Murilo Ferreira is overseeing the Brazilian mining giant’s shift away from its home state of Minas Gerais and toward new deposits in the north. The change has culminated in a $14 billion mining complex in an area where ore quality is higher and costs will be lower. It’s also left behind a region that’s seen spending and job opportunities steadily decline over the last four years, spurring bitter feelings along the way.

“The direction of the company could have been better handled,” Minas Gerais Congressman Newton Cardoso Jr., whose father was a state governor, said in an interview. “Vale needs a CEO that focuses on environmental issues and that respects Minas Gerais’s investment priorities and job-generation needs.”

Electric car revolution brightens outlook for a medley of metals – by Jan Harvey (Reuters U.S. – October 5, 2016)

October 5, 2016

http://www.reuters.com/

LONDON – Electric cars such as the Nissan Leaf may look no different from the standard family runaround. But the new materials that go into them could revolutionize the market for metals used in the industry, opening up a new field for commodities investors.

“We identified electric vehicles as an area where we are at an inflection point for demand,” said Duncan Goodwin, portfolio manager of the Baring Global Resources Fund.

Around 12 percent of the fund’s $378.2 million in assets is exposed to materials that are used in electric vehicles. It has investments in New York-listed Albemarle and Australia’s Orocobre, two companies producing lithium, a key element in electric car batteries. Shares in both companies have risen sharply this year.

One man’s quest to restore Jordan River salmon; water fouled by old mine – by Amy Smart (Victoria Times Colonist – October 4, 2016)

October 5, 2016

http://www.timescolonist.com/

From atop a steep slope looking down on a narrow portion of the Jordan River, Ken Farquharson points to two saplings making their way out of the crumbly earth near his feet.

The saplings are an unusual shade of yellow-green and they’re the only things growing on land the Ministry of Environment recently confirmed as “high risk.” “See these little ones, they’re not very happy,” Farquharson says.

For the Metchosin resident, cleaning up the toxic site — a former copper mine dump — is vital if salmon are going to return in full force to the Jordan River below. The retired engineer has made it a personal project since 2012 and now, it looks like it might happen: A responsible party has been identified, a site-risk assessment has been conducted and an remediation plan is due by June 2017.

China’s iron ore party rolls on in September, underpinning prices – by Clyde Russell (Daily Mail/Reuters – October 3, 2016)

October 5, 2016

http://www.dailymail.co.uk/

LAUNCESTON, Australia, Oct 3 (Reuters) – China’s appetite for imported iron ore continued unabated in September, with vessel-tracking data showing seaborne arrivals should at least match the strength shown in recent months.

Shipping data compiled by Thomson Reuters Supply Chain and Commodity Forecasts shows that 85.24 million tonnes of the steel-making ingredient arrived at Chinese ports in September.

This was higher than the 82 million tonnes estimated for August and only slightly below the 85.67 million for July, which was the highest so far this year.

Wounded Gold Bull Market Steadies After Worst Slump in a Year – by Eddie Van Der Walt and Luzi-Ann Javier (Bloomberg News – October 5, 2016)

October 5, 2016

http://www.bloomberg.com/

After the biggest swoon in gold prices in more than a year and six consecutive days of losses, the market steadied.

Metal for immediate delivery climbed 0.4 percent to $1,273.86 an ounce at 12:39 p.m. in London after sliding 3.3 percent on Tuesday. Prices are down 7.4 percent since peaking in mid-July as expectations of tighter monetary policy in Europe and the U.S. dented the appeal of precious metals.

“The gold bull has been given a good scare,” Adam Finn, who oversees precious metals at Triland Metals and was short gold, said by phone from London. “It’s not dead yet. We could drop down to $1,172 and still see a medium-term continuation of the move higher.”

5 abandoned mine sites near Yellowknife undergo environmental assessments – by Curtis Mandeville (CBC News North – October 04, 2016)

October 5, 2016

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

Two years after devolution, it’s still unclear who should be paying for the cleanup

Two years after devolution, the Government of the Northwest Territories is studying five abandoned mine sites around Yellowknife, but one local MLA says action on remediation is moving too slowly.

Environmental assessments are underway, or soon to begin, at five sites: the former Ptarmigan, Tom, Crestaurum, Tin and Burwash mines. Last month the territorial government announced that the Ptarmigan and Tom sites, in particular, would be fenced off to the public throughout September and October.

The intention of the assessments, according to the territorial government, is to figure out how much contamination there is in the soil, sediment, water and building materials of each mine site. It also wants to see if hydrocarbons and metals are migrating off site.

Trudeau replaces pipeline uncertainty with carbon price uncertainty – by Claudia Cattaneo (Financial Post – October 5, 2016)

October 5, 2016

http://business.financialpost.com/

By announcing a hefty price on carbon, Prime Minister Justin Trudeau seems to be moving closer to finally approving an oil export pipeline.

But he is also creating a new problem: His targeted minimum price on carbon emissions is so high, how it will be implemented so unclear, he’s replacing pipeline uncertainty with carbon price uncertainty — hardly the recipe to restore investor confidence in beaten down Canadian oil and gas.

“We already have a highly uncertain policy environment in Canada now, here in Alberta especially with the NDP changes that have come so fast and furious it’s almost historically unrecognizable, and this is yet another dose of uncertainty in an uncertain investment climate,” said Kenneth Green, Calgary-based senior director of natural resource studies at the Fraser Institute.

Small Tasmanian nickel mine symbol of hope in uncertain market – by Clyde Russell (Reuters U.S. – October 4, 2016)

October 5, 2016

http://www.reuters.com/

LAUNCESTON, AUSTRALIA – It’s not often that jobs get exported from the developing world back to a developed country, but this is likely to be the case with nickel, the Philippines and Australia.

The new Philippine government of President Rodrigo Duterte has roiled global nickel markets by suspending 10 nickel mines and threatening the closure of at least 12 more, citing environmental violations.

The suspended mines and those at risk represent nearly 60 percent of output in the Philippines, the world’s largest producer of nickel ore and top supplier to top buyer China.

Save ‘breathtaking’ west Quebec mine from demolition, petition urges – by Trevor Pritchard (CBC News Ottawa – October 04, 2016)

October 5, 2016

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

Tourists have flocked to remote Wallingford-Back Mine over past year, annoying residents

A scenic, off-limits mine in western Quebec that’s seen an influx of visitors over the past year could end up being demolished if a campaign to save it is unsuccessful.

The Wallingford-Back Mine, located approximately 60 kilometres northeast of Ottawa, has become a popular spot for paddlers, ice skaters and explorers, all drawn to its pristine turquoise waters and imposing rock pillars. However, Quebec’s Ministry of Energy and Natural Resources has issued an ultimatum to the regional municipality of Papineau, Que.: either invest money to secure the mine from trespassers, or demolish it.

In response, supporters of the mine launched a petition this weekend calling upon the site to be protected for its “undeniable richness, not only for the Outaouais region, but also for all of Quebec.” The petition had about 1,800 signatures by Monday afternoon.

NEWS RELEASE: Canadian Research Contributes Step Change to World Mining

October 5, 2016

Troubled Industry Lauds Advances in Intelligent Optimization as “Paradigm Shift”

MONTREAL, Oct. 4, 2016 /CNW Telbec/ – The global mining industry has lost some $1.4 trillion of shareholder value in the last 5 years. This is easily explained by the sudden end of the 2004-2011 commodity super-cycle. But such cycles are bound to repeat themselves. Will they have the same consequences? Can we learn from the past? Are there decision-making processes that can be used to improve the mining industry’s performance in the face of uncertainty?

Ground-breaking developments in risk managing optimization technologies for mining operations around the world are the results of several years of research at the COSMO – Stochastic Mine Planning Laboratory of McGill University. These new technologies shift well-established mine planning paradigms to substantially increase gains for mining companies through risk management, while contributing to sustainable development by improving utilization of non-renewable resources.

Applications of the new technology to real-world situations have shown that production forecasts can be improved from 5 to 25%; reserves can be increased by 5 to 15%, and NPV by 5 to 30%.