In This Heaven/Rings of Fire – by Candida Paltiel and Victoria Foote (Al Jazeera – July 29, 2015)

http://www.aljazeera.com/

Mining Stories Productions produces meaningful stories in a visual format about cultural, social and environmental issues that move individuals and audiences. Relying on solid research, we mine stories that speak to the human and planetary condition with passion and thoughtfulness, and with a view to engaging audiences through multi-media platforms. Our creative team is made up of award winning producers, directors, writers and technical talent who are committed to excellence and care deeply about the subjects and issues that inspire our stories.

Mining Stories Productions has produced a one hour documentary commissioned by Witness, , Al Jazeera English titled In This Heaven, with a broadcast version titled Rings of Fire. The broadcast will be launched on July 29, 2015 at 8pm/20:00 GMT.

In This Heaven/Rings of Fire, documents the tireless efforts of Mae Katt, a First Nations nurse practitioner who runs a mobile drug addiction treatment program in the remote underserved Matawa First Nations communities of Northern Ontario.

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Phase 1 cleanup done at site of B.C.’s Mount Polley mine disaster – by Andrea Woo (Globe and Mail – July 29, 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.

One year after a catastrophic dam breach, the Mount Polley Mine in B.C.’s interior has passed the first phase of remediation and resumed operations, with restrictions.

The August, 2014, dam failure sent millions of cubic metres of mine waste and water into area waterways and forced the government to toughen mine permitting requirements. Imperial Metals Corp. has completed Phase 1 cleanup by taking steps to ensure increased water flow at Mount Polley does not result in additional environmental or human health impacts, according to the B.C. Ministry of Environment. The company has also ensured that water quality entering Quesnel Lake meets provincial standards.

Environment Minister Mary Polak said in a briefing on Wednesday that a “significant amount of work” has been done in the past 12 months, but acknowledged full remediation and restoration will take years.

The B.C. government issued the conditional permit allowing the Mount Polley mine to reopen earlier this month. However, the company cannot discharge water until it receives a second conditional permit, likely in the early fall.

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Editorial: Commodities rout tests miners’ pain threshold – by John Cumming (Northern Miner – July 29, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists.  jcumming@northernminer.com

July has been such a brutal month for commodities producers that even last year’s prices are looking pretty good now. The rout in commodities prices in recent weeks has been unrelenting, wide-ranging and driven by macroeconomic factors far beyond the ability of miners to control.

The Bloomberg Commodity Index has returned to levels not seen since 2002 — implying that the much talked-about “Commodities Supercycle,” sparked and sustained by unprecedented demand growth stoked by China’s booming economy, is effectively over.

The state of the Chinese economy is foremost in the minds of commodity price forecasters, and all signs point towards slowing growth rates and further sharp corrections in the Chinese stock markets in the months and years ahead. On July 27, the Shanghai Composite Index suffered its worst one-day drop (8.5%) in eight years, and it would have been worse without the 10% daily maximum-loss limits on blue-chip stocks and the strong-arm tactics of the Chinese government to buy shares and pressure companies into buying shares.

The other two dominant negatives at the macro level are the ongoing Greek debt crisis, and broad consensus that the U.S. Federal Reserve will raise interest rates later this year, further driving up the U.S. dollar and sinking commodities priced in U.S. dollars.

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Blackrock’s Evy Hambro says mine closures set to accelerate – by Peter Ker (Sydney Morning Herald – July 30, 2015)

http://www.smh.com.au/

Mine closures will accelerate in oversupplied commodity sectors in coming months, the manager of the world’s biggest mining funds says.

In a gloomy preview of the September quarter, BlackRock chief investment officer for natural resources Evy Hambro said miners were facing “tough decisions” amid modest demand and weak commodity prices.

“Looking ahead, the outlook for commodity prices remains subdued, given expectations of further US-dollar strength and a modest demand outlook. This pressure will continue to force tough decisions and mining companies are likely to remain in austerity mode,” he said in a note published by BlackRock.

Mr Hambro said analyst forecasts for the coming earning season would need to be trimmed, and miners would also need to respond to recent falls in commodity prices.

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“The 33” Movie Trailer for the 2010 Chilean Mining Accident

 

In movie theatres in November.

Wiki Summary of the Chilean Mining Accident

The 2010 Copiapó mining accident, also known then as the “Chilean mining accident”, began in the afternoon of Thursday, 5 August 2010 as a significant cave-in at the troubled 121-year-old San José copper–gold mine. The mine is located in the Atacama Desert about 45 kilometers (28 mi) north of the regional capital of Copiapó, in northern Chile.[1] The buried men, who became known as “Los 33” (“The 33”), were trapped 700 meters (2,300 ft) underground and about 5 kilometers (3 mi) from the mine’s entrance via spiraling underground service ramps.

The mixed crew of experienced miners and technical support personnel, with less experience working underground, survived for a record 69 days deep underground before their rescue.[2][3] Previous geological instability at the old mine and a long record of safety violations for the mine’s owners had resulted in a series of fines and accidents, including eight deaths, during the dozen years leading up to this accident.[4][5][6] As a result of the mine’s notorious history, it was originally thought that the workers had probably not survived the collapse or would starve to death before they were found, if ever.

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UPDATE 3-Vale returns to profit, signals cut to 2016 iron ore outlook – by Stephen Eisenhammer(Reuters U.S. – July 30, 2015)

http://www.reuters.com/

(Reuters) – Vale SA, the world’s biggest iron ore producer, returned to profit in the second quarter, bolstered by higher output and cost cuts as it kept up pressure on Australian rivals in its fight for market share.

But as the Brazilian miner battles to increase margins, Vale said iron ore production next year will likely be less than the 376 million tonnes it had previously forecast.

“Probably we’ll be between the guidance we gave… and the 340 million tonnes we are producing in 2015,” iron ore chief Peter Poppinga told analysts on a conference call, adding the company was phasing out higher-cost production.

Vale overcame a slump in iron ore prices to report a net profit of $1.68 billion on Thursday, moving into the black for the first time in a year. That was a jump of 17.3 percent from the same quarter a year ago, and more than four times the average forecast of $408 million of six analysts in a Reuters poll.

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Canadian regulator dismisses Québec uranium report (World Nuclear News – July 30, 2015)

http://www.world-nuclear-news.org/

The head of the Canadian nuclear regulator has written to Québec’s minister for sustainable development, environment and climate change questioning the recommendations made by a public consultation on uranium mining in the province.

The report by Québec’s Bureau d’audiences publiques sur l’environnement (BAPE) was published on 17 July by the province’s minister for sustainable development, environment and climate change David Heurtel.

It was the culmination of one year’s work by the commission set up by BAPE in May 2014 to study the environmental and social impacts of uranium exploration and mining, following a moratorium on new uranium exploration and mining permits imposed by the province in April that year.

The 626-page report concludes that uranium mining operations at present in the province are “counterindicated” because of “limitations and uncertainties” in the current state of knowledge over mining technology and environmental management strategies.

Michael Binder, president of the Canadian Nuclear Safety Commission (CNSC), wrote to Heurtel on 27 July saying BAPE’s report has conclusions and recommendations that “lack scientific basis and rigour”.

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Gold price not being driven by fundamentals – by David Levenstein (Mineweb.com – July 29, 2015)

http://www.mineweb.com/

Gold prices hold steady after last week’s bear raid.

Since around mid-June, gold prices have come under substantial selling pressure. One of the main drivers behind this fall has been the on-going debate about interest rates.

While the general narrative supposes that higher interest rates will have a negative impact on gold, I have often stated that this assumption is not correct. The historical record shows that gold tends to rise with nominal interest rate rises – as was seen from 2004 to 2008 and in the 1970s – and the Fed is unlikely to raise rates in any meaningful way while deflationary forces persist.

According to the WGC, although higher interest rates would make the dollar more attractive to investors looking for higher-yielding assets, the current narrative that this scenario would be bearish for gold is incorrect.

It is true that higher real interest rates raise the opportunity cost for investors holding gold. But our analysis of the gold price and previous rate conditions found gold may perform reasonably well in a positive rate environment.

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420 on Minn. Iron Range face layoffs as United Taconite idles plants – by Dan Kraker (Minnesota Public Radio – July 30, 2015)

http://www.mprnews.org/

In another blow to Minnesota’s reeling iron ore industry, more layoffs were announced on the Iron Range Wednesday.

Cliffs Natural Resources will be temporarily closing its United Taconite mine in Eveleth and its pellet plant in Forbes. The moves affect 420 employees. The latest news brings the number of layoffs announced this year to more than 1,000.

Eveleth Mayor Bob Vlaisavljevich said he had been nervously awaiting an announcement for weeks, ever since he saw the huge stockpiles of taconite pellets sitting alongside the Duluth harbor, waiting to be shipped to steelmakers.

“It was kind of a scary thought, down by the harbor there. When you see them they’re about a quarter mile long, three or four of them,” he recalled. “A lot of boatloads.”

Cliffs CEO Lourenco Goncalves cited that huge inventory of pellets as one reason the company would idle United Taconite for about six months.

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Kinross Gold Corp, Agnico Eagle Mines Ltd report lower Q2 earnings but maintain financial strength – by Peter Koven (National Post – July 30, 2015)

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

Falling gold prices took a big bite of out of second quarter earnings at Kinross Gold Corp. and Agnico Eagle Mines Ltd., but both miners generated solid cash flow and maintained strong balance sheets.

Those two factors are crucial right now. The gold price has taken a nosedive this month, falling below US$1,100 an ounce for the first time since early 2010. Investors want evidence that companies can maintain strong liquidity in case gold remains at these levels for a prolonged period, or goes even lower.

Toronto-based Kinross said it has slightly more than US$1 billion of cash and equivalents on its balance sheet. The company has relatively high costs compared to its rivals, with all-in sustaining costs of US$1,011 an ounce in the second quarter.

But chief executive Paul Rollinson said the firm is well positioned to withstand market volatility, with plenty of options on the table to reduce spending. Kinross announced on Wednesday afternoon that it is in the midst of a “comprehensive spending review” to reduce costs.

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Lonmin: victim of price falls and management wobbles – by Silvia Antonioli and Ed Stoddard (Reuters U.S. – July 30, 2015)

http://www.reuters.com/

LONDON/JOHANNESBURG, July 30 (Reuters) – Platinum producer Lonmin is facing its deepest crisis to date, hurt by a downturn in the metal and haunted by a mixture of bad luck and debatable management choices that are putting its survival at risk.

Times are tough for everyone in the platinum sector. Producers are squeezed between soaring costs and a rout in platinum prices to lows not seen since the 2008 financial crash.

But Lonmin is bleeding more quickly than the others and its apparently inexorable decline has become evident this year. Its shares dropped this week to their lowest since Jan. 1979. Pre-tax losses last year were $326 million.

Glencore’s decision to sell its 23.9 percent stake earlier this year was the latest blow to Lonmin, whose name is tied to the tragic 2012 Marikana mining strike.

“Glencore’s exit was clearly a no confidence vote on the sector but foremost on a company that is disadvantaged versus the other big players,” said Ingo Hofmaier, director at London-based merchant bank Hannam & Partners.

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Warren Buffett And Elon Musk To Spark A Lithium Boom – by James Stafford (Oil Price.com – July 28, 2015)

http://oilprice.com/

The age of electrification across the transportation sector, the solar panel revolution, and Tesla’s battery gigafactory are igniting a battle for the cheapest battery. That will transform lithium into a boom-time mineral and the hottest commodity on the energy investor’s radar.

It has been easy to take lithium for granted. This wonder mineral is the backbone of our everyday lives, popping up in everything from the glass in our windows to our mountains of electronics.

And while investors have long appreciated the steady rise in demand for this preferred mineral, the number of new applications continues to multiply. Smart phones, tablets, laptops, and other consumer electronics demand more lithium. But the largest driver for future lithium use will be in electric vehicles and home batteries for solar panels. That has lithium on the verge a boom for which supply can no longer be taken for granted.

Not since the shale boom have we seen a market transformation of such significance. Lithium has long been used for a variety of mundane purposes, and while the variety is spectacular—with applications in everything from glass, ceramics and greases to a line-up of industrial process—it has flown under the radar for most investors.

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Copper’s Tumble Not Over With Most Miners Still Making Money – by Agnieszka De Sousa and Debarati Roy (Bloomberg News – July 28, 2015)

http://www.bloomberg.com/

World copper mine production at record

The pain rippling through the copper market isn’t yet threatening profits for most miners, and that could mean more tears for bullish investors.

Even with prices near a six-year low, about 90 percent of copper mines are profitable, meaning most producers have little incentive to reduce output, according to Standard Chartered Plc. Prices need to fall another 24 percent before major companies begin cutting back, Bloomberg Intelligence estimates.

“You want miners to throw in the towel, start shutting down some mines,” Kenneth Hoffman, an analyst at Bloomberg Intelligence, said by telephone. “They keep forging ahead with all their plans. They’re still bringing new stuff on.”

As producers dig up more metal, demand for the raw material is weakening with China’s economy expanding at the slowest pace since 1990. Societe Generale SA estimates that copper’s oversupply will almost double this year. Goldman Sachs Group Inc. expects prices to reach $4,800 a metric ton in the next six months, a 9.4 percent drop from Tuesday’s settlement.

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UPDATE 2-India’s Vedanta looks to restart Goa mines by October – by Aman Shah (Reuters U.S. – July 29, 2015)

http://www.reuters.com/article

MUMBAI, July 29 (Reuters) – India’s Vedanta Ltd said on Wednesday it expected to restart iron ore mining by October in top exporting Goa province and that talks were continuing with regulators for merging with its cash-rich unit Cairn India.

The mining and energy group, which has been hit by a slump in crude prices and mining bans in key producing states, also posted a consolidated net profit of 8.66 billion rupees ($135.61 million) for its fiscal first quarter to June 30.

That compared with a profit of 3.76 billion rupees in the same period last year, which was hurt by a one-time charge of 21.28 billion rupees. Excluding the impact of one-off charge, the company’s first-quarter profit was 35.4 percent lower than a year earlier.

Chief Executive Tom Albanese said on a conference call Vedanta was hoping to get approvals as early as next month to restart a few mines in Goa and was positioned to restart mining at a rate of 5.5 million tonnes a year.

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Exploration option agreements need to be specific – by Julius Melnitzer (National Post -July 29, 2015)

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

Exploration option agreements negotiated by sophisticated parties mean what they say and nothing more, says the British Columbia Court of Appeal in a recent decision called American Creek Resources Ltd. v. Teuton Resources Corp.

That might sound simple — perhaps even obvious — But the American Creek decision has major implications for the way parties set up option agreements, a common way to fund exploration in the Canadian mining industry.

“The American Creek decision will definitely change industry practice for drafting the exploration agreements that are the lifeblood of the industry,” says Josh Lewis of Fasken Martineau DuMoulin LLP in Vancouver.

Typically, the company holding the property grants another company the option to earn an interest in the property by exploring it. The agreement usually prescribes the amount of the expenditures that must be made, but the description of those expenditures can vary from deal to deal.

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