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Silver-coin shortage shows bright side of precious metal collapse – by Marcy Nicholson, A. Ananthalakshmi and Jan Harvey (Reuters U.S. – September 30, 2015)

http://www.reuters.com/

NEW YORK/LONDON/SINGAPORE, Sept 30 (Reuters) – The global silver-coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U.S. buyers racing abroad to fulfill a sudden surge in demand.

The U.S. Mint began setting weekly sales quotas for its flagship American Eagle silver coins in July because it can’t meet demand, and the Canadian mint followed suit after record monthly sales in July. In Australia, the Perth Mint sold a record of more than 2.5 million ounces of silver this month, nearly four times more than in August, and has begun rationing supply of a new line of coins this month, a mint official said.

“Silver demand is absolutely through the roof,” said Neil Vance, wholesale manager at the Perth Mint. “There seems to be a bit of frenzy as people think there is a shortage of silver. But in fact it is a (crunch in) manufacturing capacity.”

While demand has risen in response to the slump in spot prices to $14.33 an ounce in late July and its subsequent drop to fresh six-year lows below $14 an ounce in August, mint officials also said they were caught out by the sudden interest in coins.

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Arizona still tops in copper, up 28% in 50 years – by Tom Tracey (Verde Independent – September 29, 2015)

http://verdenews.com/

CLARKDALE — Copper: So important was it to the history of Arizona that it remains front and center on the state flag as a copper-colored star.

Over the years, Arizona has consistently produced more copper than all the other states combined. In fact, 28 percent more copper is being produced now than 50 years ago.

You don’t have to look far for copper. It’s found in airplanes, automobiles, coins, computers construction materials, cookware, radios, telephones, TVs and video games, according to the Arizona Farm Bureau.

“Here at the museum, we have a panel that shows where copper is used,” said Drake Meinke, founder of the Copper Art Museum in Clarkdale.

“For art purposes, about 3 percent of the world’s supply is fabricated into something. The other 97 percent is used for electrical, transportation and construction uses,” said Meinke.

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NEWS RELEASE: SNC-Lavalin exercises its option to sell its interest in Madagascar’s Ambatovy Nickel Project

MONTREAL, Sept. 30, 2015 /CNW Telbec/ – SNC-Lavalin (TSX: SNC) announced today that it has exercised its option to divest its five percent ownership interest and the balance of its loans in the Ambatovy Nickel Joint Venture Project, a laterite nickel mine operation and a hydrometallurgical processing plant in Madagascar, to Sumitomo Corporation, an existing partner, for a cash consideration of approximately CDN$600 million.

The Company was initially awarded an EPCM contract for the Ambatovy nickel and cobalt operation in 2007. The mine―the largest capital project in Madagascar’s history―has a capacity to annually produce 60,000 tonnes of refined nickel, 5,600 tonnes of refined cobalt and 210,000 tonnes of ammonium sulphate fertilizer for a minimum of 29 years. On September 21, 2015, the Ambatovy project achieved financial completion. Accordingly, SNC-Lavalin has chosen to exercise its put option and has received its proceeds.

“We are pleased to have been involved in building the Ambatovy operation with our joint venture partners these past seven years and helping this unique mining project achieve crucial key milestones over this time,” said Robert G. Card, President and Chief Executive Officer, SNC-Lavalin Group Inc. “With nickel being the country’s largest export, Ambatovy will continue to contribute to the country’s future growth and generate long-term economic and social benefits for the people of Madagascar.”

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Installment #4 – “My Old Man:” The Uranium King – The Final Chapter (for now) in the colorful history of Charlie Steen – by Mark Steen (Canyon Country Zephyr – August/September 2002)

http://www.canyoncountryzephyr.com/

In order to follow the history of the exploration and development of the Big Indian mining district it is necessary to understand a few things about the geology of the uranium ore deposits that were found after Charlie Steen discovered the Mi Vida mine. The most important thing to remember is that none of the ore deposits discovered during the next four years were exposed on the surface.

Although the ore bearing host rocks in the Moss Back member of the Chinle formation did outcrop in a few places along the face of the escarpment overlooking the Big Indian Wash, all of the uranium that was found after 1952 was discovered by exploration drilling. My father’s discovery proved that someone could walk over $100 million worth of uranium ore without knowing what lay beneath their feet unless they were willing to risk money on wildcat drilling in the search for totally hidden ore deposits.

Although the Big Indian mining district was developed from the single drill hole Charlie Steen had drilled through 14 feet of high-grade uranium ore on July 6, 1952, none of the other mines in the district were brought into production on the basis of one drill hole. After the Mi Vida mine proved the existence of uranium ore in the Chinle formation, drilling became the chief guide to finding more ore in the district.

Any drill hole that encountered good mineralization of minable thickness required additional drilling to block out the ore body.

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Installment #3 – “My Old Man:” The Uranium King – Charlie Steen strikes it rich and fight his partners to han on to the Mi Vida Mine – by Mark Steen (Canyon Country Zephyr – June/July 2002)

http://www.canyoncountryzephyr.com/

A few days after the Denver Post published its closely worded story about my father’s Big Indian uranium discovery, Moab’s Times-Independent ran an article based on the same announcement that Dad had given to the Denver newspaper. Although the Times-Independent article actually contained more details about the high-grade nature of the uranium mineralization contained in the discovery drill core, not a single person among the newspaper’s readership expressed any interest in helping Dad develop his prospect.

None of the area’s long-time uranium prospectors and miners were convinced that Charlie Steen had really found a uranium bonanza. Folks laughed when they heard that someone from Texas was claiming to have discovered a million dollars worth of uranium in a mining district that everyone knew the experts had already examined and written off as a loser.

In early September, Dad received a letter postmarked Casper, Wyoming from William T. Hudson, his former boss at the Chicago Bridge and Iron Company’s Houston, Texas office. Bill Hudson had overseen the college loans that my father worked off during the summers and had written to congratulate him after reading the Denver Post article.

AT LONG LAST! Charlie tries on a new pair of boots.

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Aborigines have a right to economic development – by Wayne Bergmann (The Australian – September 30, 2015)

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

In his victory speech, new Prime Minister Malcolm Turnbull announced: “There has never been a more exciting time to be alive than today and there has never been a more exciting time to be an Australian. We will ensure that all Australians understand that their government recognises the opportunities of the future.”

If federal, state and territory governments are to ensure that Aboriginal Australians are included in these “opportunities of the future”, it is obvious their first priority should be to support the economic initiatives of Aboriginal people.

Remarkably, some governments do not understand this. Take the most recent Queensland state governments.

On Cape York Peninsula near Aurukan, there’s $20 billion worth of bauxite waiting to be mined. The traditional owners of the area, the Wik and Wik Way people, eager to be part of the economic development of their region, formed a joint venture with an Australian mining company to create Aurukan Bauxite Developments and planned to mine the resource.

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BHP Billiton’s split may have lessons for Alcoa – by James Regan (Reuters U.S. – September 29, 2015)

http://www.reuters.com/

SYDNEY – In what could be a cautionary tale for Alcoa Inc, global miner BHP Billiton’s decision to spin off non-core businesses into a separate company is yet to pay off for shareholders.

Alcoa announced on Monday it will break itself in two, separating a faster growing plane and car parts business from traditional alumina and aluminum production as shareholders seek higher returns amid a commodity slump.

BHP used a similar rationale for ring-fencing select operations in Australia, southern Africa and South America into what became South 32 last May to concentrate on its most profitable commodities.

South32 shares fell to a record low on Tuesday of A$1.38, more than a third below its listing price. BHP stock, at A$21.61 at Australia’s Tuesday close, is the lowest in seven years.

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Peru Declares Martial Law in Two Regions After Protests – by Ryan Dube (Wall Street Journal – September 29, 2015)

http://www.wsj.com/

Protests against the country’s biggest copper project resulted in at least three deaths

LIMA, Peru—Peru on Tuesday declared martial law in parts of its southern highlands after protests against the country’s biggest copper project resulted in at least three deaths.

The protests are the latest to hit Peru’s mining sector, which is one of the world’s top producers of copper, gold and silver. Mining accounts for about 50% of Peru’s exports.

The prime minister’s office said that martial law would be implemented in four provinces in the Apurímac region and two provinces in the neighboring Cuzco region, located high in Peru’s southern Andes.

Local residents clashed with police on Monday during protests against the $7.4 billion Las Bambas copper mine, owned by a consortium led by China’s MMG Ltd.

During the 30-day period of martial law, civil liberties like freedom of association and movement will be restricted, while police are allowed to enter houses without search warrants.

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NEWS RELEASE: Trans-Pacific Partnership will benefit Canada’s mining sector

Canadian economy cannot afford to be left out of major trade deal

OTTAWA, Sept. 29, 2015 /CNW/ – The Mining Association of Canada (MAC) expressed its firm support for Canada’s participation in the Trans-Pacific Partnership (TPP).

“Canada’s mining industry has been a strong advocate for liberalized trade and investment flows for many years,” stated Pierre Gratton, MAC’s President and CEO. “NAFTA, free trade agreements with Chile, Peru, Colombia, and other countries in Latin America, Africa, and Asia have all helped to increase Canadian exports and investment, supporting jobs for Canadians here and abroad. TPP, representing such a massive trade block, including critical emerging markets, is a trading partnership Canada must not risk being left out of.”

The TPP is a multilateral trade negotiation that currently comprises 12 countries: the United States, Australia, Japan, Mexico, New Zealand, Singapore, Malaysia, Vietnam, Peru, Chile, Brunei Darussalam, and Canada. Together, these countries represent a market of nearly 800 million consumers and a combined GDP of $28.5 trillion – nearly 40% of the global economy.

Canada’s exports of metals and minerals to TPP countries were worth on average $158.6 billion per year from 2012 to 2014. Through the reduction of tariffs, operators in Canada stand to gain significantly with TPP partners.

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West Virginia Miners Play Second Fiddle to the Molly Maguires – by Mark Hand (Counter Punch.com – September 29, 2015)

http://www.counterpunch.org/

In search of improved working conditions and livable wages, mine workers in two major coal producing states resorted to violence against coal mine owners and managers. The militants in one of those states are celebrated as heroic fighters of America’s industrial age. In the other state, the miners’ campaign for human progress is omitted from state history books.

In Pennsylvania, the state contributed funds to build a monument to honor the Molly Maguires, a secretive Irish organization that allegedly killed coal company officials as retribution for their treatment of miners. In museums and gift shops in the state’s anthracite coal region, visitors can purchase t-shirts and other memorabilia honoring the Mollies, 20 of whom were hanged after they were found guilty of murder and other serious charges in the late 1870s.

A big-budget Hollywood movie, titled The Molly Maguires, was released in 1970 with a radical coal miner, played by Scottish actor Sean Connery, as the hero and a Pinkerton detective, played by Irish actor Richard Harris, as the anti-hero.

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NEWS RELEASE: Iran mining eyes $15 billion of foreign investment (Press TV – September 29, 2015)

http://www.presstv.ir/

Iran plans to attract $15 billion of foreign investment in its vast but largely underdeveloped mines and mining industry sector, an official says.

“The huge quantities of mineral resources call for attracting and absorbing domestic and foreign sources,” Deputy Minister of Industry, Mine and Trade Mohammad Khazaee said on Tuesday.

Iran’s mineral reserves are estimated at a whopping 60 billion metric tons, including 37 billion metric tons of proven deposits. Officials say known reserves have been found on explorations over only 7% of Iran’s total area.

“The mining sector is in fact the main base and the mother of development for other sectors which needs special attention,” Khazaee said.

“According to the sixth national development plan which is in the formulation stage, $15 billion in foreign investment is envisaged to be attracted in the mines and mining industries sector,” he added.

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Rights Group: Filipino Child Miners Risk Lives in Gold Mines (Associated Press/New York Times – September 29, 2015)

http://www.nytimes.com/

MANILA, Philippines — The Philippine government has failed to protect thousands of children, some as young as 9 years old, who risk their lives by working in illegal, small-scale gold mines under terrifying conditions, a human rights group said Wednesday.

Human Rights Watch’s report said the children work in unstable 25-meter (80-foot) deep pits or underwater along coastal shores or rivers, processing gold with mercury, a toxic metal that can cause irreversible health damage. Those who dive for gold stay underwater for several hours at a time in 10-meter- (30-foot-) deep shafts, receiving air through a tube attached to an air compressor.

The New York-based group says it interviewed 135 people, including 65 child miners from 9 to 17 years of age, in eastern Camarines Norte and Masbate provinces in 2014 and 2015.

Labor Secretary Rosalinda Baldoz told the Associated Press that the government is addressing the problem by prosecuting those forcing the children to work, and by providing the children with health, education and livelihood programs.

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Glencore’s Glasenberg, once the hunter, now the hunted – by Clyde Russell (Reuters U.S. – September 30, 2015)

http://www.reuters.com/

LAUNCESTON, AUSTRALIA – It must be tempting for Rio Tinto Chief Executive Sam Walsh to contemplate whether he should buy Glencore, almost a year after fending off an unwelcome approach from his now beleaguered rival.

It’s safe to say the almost 30 percent plunge in Glencore’s shares to a record low on Monday has laid to rest any hope that the mining and trading company had of pulling off a merger deal with Rio Tinto, which is vying with Brazil’s Vale for the title of the world’s largest iron ore producer.

When Glencore boss Ivan Glasenberg mooted a deal with Rio Tinto in July last year, the shares were trading around 344 pence ($5.19), while those of Rio Tinto were around 3,244 pence.

By Monday, Glencore’s stock was down 80 percent to 68.62 pence, while Rio Tinto’s was at 2,111 pence, a drop of about 35 percent.

These numbers alone make any new bid by Glencore fanciful, but they do raise the possibility that Glencore itself is vulnerable.

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Charging into Yukon’s new gold rush – by James Kwantes (Vancouver Sun – September 29, 2015)

http://www.vancouversun.com/

DAWSON CITY — It is possible to travel by boat for hours down the Yukon River to Dawson City without spotting another human, although you will likely see moose and black bears — and if you’re lucky, a grizzly.

It is quite a contrast from the Klondike Gold Rush of 1896 to 1899, when treasure hunters turned the river into a superhighway of steamboats, barges, canoes and rafts.

One of the stops for prospectors was Coffee Creek, a farm and trading post. Today, the waystation is a barge stop and base camp for Kaminak Gold, one of several Vancouver-based companies taking part in a modern-day Yukon gold rush. Kaminak’s four-million-ounce Coffee gold deposit lies in nearby mountains.

“Thousands of prospectors would have stopped there over the years,” Kaminak founder and chairman John Robins said with a smile. His appreciation for the irony is heightened by a personal connection — his great-great-grandfather was a prospector who was part of the original gold rush.

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Mark Steen remembers… “My Old Man:” The Uranium King…Part 2 – The author debunks a few tall tales and tells what really happened in 1952 – by Mark Steen (Canyon Country Zephyr – April/May 2002)

http://www.canyoncountryzephyr.com/

At the beginning of my first article in The Zephyr about my father, Charlie Steen, and his discovery of the Mi Vida mine and its consequences, I wrote that people couldn’t seem to resist the impulse to distort and rewrite the history of Moab’s most famous prospector. I pointed out that falsehoods about my father’s uranium discovery and his role in the Uranium Boom were now finding their way into print in historical publications.

Potato Chips & Bananas

Two good bad examples of people distorting the truth or concocting half-truths about my father’s role in changing the course of the uranium industry clearly illustrate this point. In Utah’s official centennial history, Utah: The Right Placeby Dr. Thomas G. Alexander, the author has my Dad feeding his family on “potato chips and bananas” while he searched for uranium “with a Geiger counter under one arm and a bundle of Geological Surveys under the other.”

Aside from the well-known fact that my father couldn’t afford a Geiger counter and the lack of printed geological information about the Big Indian area prior to the Uranium Boom, Dr. Alexander, who has three university degrees in history, actually seems to think that six people could live for more than two years on potato chips and bananas! I wonder what level of sobriety the old timer who spun that yarn was in when that tale was told?

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