Smr april V1 2018

2018 APRIL IN REVIEW

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Vol:107.No:04

1912-2

018

MINING TRENDS 2018

SKILLED WORKERS

P 06

CHINESE RAW STEEL PRODUCTION CONTINUES GROWTH

P 17

INSIDE STATISTICS

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2 | SKILLINGS MINING REVIEW April 2018

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...From the Editorial Desk APRIL 2018 VOL.107. NO.04

PolyMet 's Profit

P

hase

I

would include about

additional

50

or so for the

300 employees, with Stage II adding PolyMet job what could be Minneso-

ta's first-ever copper mine that fans are hoping it is going to be

a blessing to the regional market.

Skillings Mining Review publishes comprehensive information on global mining, iron ore markets and critical industry issues via our monthly magazine, weekly E-newsletter, annual mining directory and real time website.

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PolyMet said it will not build Phase II until the mine and processor are up and running and earning earnings. If Phase II is built the total protect construction price would reach $1.2 billion, with earnings jumping to $271 million annually. That is on top of the $300 million PolyMet already has spent to get to the stage, such as technology, exploration and environmental review and preparation.

The projected PolyMet copper-ni ckel mine around Hoyt Lakes will charge nearly $1 billion to construct, but will earn a $173 million annual profit for 20 years for the business after taxes and other expenditures. The company released its new technical and financial viability report aimed at investors and regulators. The report predicts the company will have to raise $945 million to build Phase I including opening the mine and restarting the former LTV Steel processing center. PolyMet hopes to acquire federal and state permits and be cleared to mine, possibly later this year, then will have to locate an investor or lender ready to front that construction money.

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April 2018 SKILLINGS MINING REVIEW | 3

IN THIS ISSUE

MINING TRENDS 2018: SKILLED WORKERS

P 06

P 12

CHINA'S COAL GAIN FALLS

CHINESE RAW STEEL P 17 PRODUCTION CONTINUES GROWTH COMMENTARY

PolyMet’s NorthMet project- Permit to Mine............15

PolyMet 's Profit.........................................................03

Dust Control Systems Market Growth Awareness...19

COVERSTORY

INDUSTRY INSIDER

Mining Trends 2018: Skilled Workers.......................06

Golder Unveils Refreshed Brand...............................13

COAL

Stepping Outside The Box

China's Coal Gain Falls...............................................12

Ron Pinto, Process improvement professional........14

MINING LAW

Great Lakes Shipping Community

Department of Natural Resources

Urges Swift Passage Of U.S. Coast Guard

approval under threat.................................................05

Authorization Bill........................................................18

IRON ORE

STEEL

Tariffs and trade deals still on point.........................20

The Sale of Essar Steel...Again.................................10

IRON RANGE REGION

Chinese Raw Steel Production

Cleveland-Cliffs “Fully Enclosed”..............................11

Continues Growth......................................................16

Statistics.............................................................. 22/23

4 | SKILLINGS MINING REVIEW April 2018

Mining People............................................................ 21

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MINING LAW

Department of Natural Resources approval under threat

T

his spring,

A

battle to

drew immediate criticism from environmental groups because it demanded filling 16 acres of high-quality wetlands including 13 acres of rare, snowy pine-red walnut plantations.

build a frac sand plant

16 acres of wetlands in Monroe County is coming to a head. A judge could decide on

whether the law was followed

Wisconsin Department of Natural Resources when it approved the job last year. by the

Staff at the DNR state they felt forced to rush the endorsement of a contentious permit to satisfy 16 acres of high wetlands in western Wisconsin that is presently being challenged in court, based on emails

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obtained from Wisconsin Public Radio via an open records request and interviews with former staffers. The plan

In 2014 Meteor Timber bought 50,000 acres of Wisconsin forestland and became the biggest land-owner in the state. After discovering 137 million tons of sand in the land it purchased f r o m J a c k s o n C o u n t y, t h e business suggested developing a mine. It also proposed developing a sand-processing plant and railroad facility on land which currently hosts a cranberry farm 14 miles away in the City of Grant at Monroe County.

April 2018 SKILLINGS MINING REVIEW | 5

COVERSTORY

MINING TRENDS 2018

Skilled Workers

Decades back, as an instance, remote under-ground ground moving equipment was designed to address some of the hazards of exploration. Now, overall fleets may be managed a few thousand miles away. The mining business is changing...again. More than just in equipment; techniques, exploration techniques and technology have significantly evolved radically.

6 | SKILLINGS MINING REVIEW April 2018

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The mining industry is enormous, diverse and made up of a workforce of people with a vast assortment of skill sets and qualifications. The informative profile of the mining industry

is distinct from different industries.

And the mining sector in Canada has a tendency to employ a bigger share of individuals who have either no post secondary training or who have an

apprentice/trades certification, while in the same time the amount of people employed in the mining industry who have degrees are comparatively small in comparison to other industries

HOW TO BEGIN A CAREER IN AUSTRALIA? Additional construction structure and technology technicians plus a number of commerce occupations like metal fitters and machinists, structural steel and welding trades people and manufacturing managers are going to be in strong demand.

A brand new approach is necessary for employers to fulfill the perpetual difficulties of recruiting and keeping staff while technical abilities could transfer from different industries.

As the industry gears up and changes towards automation and robotics, the newest breed of employee could need skills in techniques that are automated and controlled. This just starting to occur more as additional heavy machinery is being set up in Western Australia at which BHP and Rio Tinto are currently utilizing driverless dump trucks to lift productivity -- particularly on the larger mine sites in Australia.

MINING JOBS Anyone believing that they may have missed the chance may want to start constructing new plans and prepare for the next tide of jobs within the industry. Mining jobs' newest frontier will probably undoubtedly be based the area of knowledge attached to an 'expertise'.

The days when you might show up at a mine and catch a $100k mining position may be something in the past, yet fresh research suggests the mining job growth may be a trend.

Mining opportunities will continue to be available, however the true wages lie at the skilled labor marketplace. Men and women who have taken enough opportunity to advance with their skills sets from other trades into management can reach into a wide range of areas i.e. training, operate Health & Safety and beyond.

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April 2018 SKILLINGS MINING REVIEW | 7

MINING FINANCE

MINING WORK

THE FUTURE OF BUSINESS

It can be a fact that moving toward automation can lower the demand for operators and that the automation can lower the variety of mining tasks. A new collection of mining project opportunities has begun to materialise from agency professionals and a new way of training must be ready for future years. This usually means emphasizing growing math, engineering, science and technological innovation abilities.

Mineral-rich countries are increasingly encouraging local content requirements within their legal and policy frameworks, especially to supply the production of better-paid jobs, more endeavors, the promotion of national distribution chains and the transport of engineering, skills and knowledge.

It can be a strategy. It is a matter of survival: mining-dependent nations need to transform and diversify their economies, reach higher living standards and reduce poverty, and manage expectations of an population and leave future generations a legacy that is decent.

NORTH AMERICAN MARKET (LTU) Company

IRON ORE PRICE REPORT

Ore Type

Pellets, FOB Michigan Mines Pellets, FOB Cleveland-Cliffs Inc. Minnesota Upper Lakes Port Source: CLEVELAND-CLIFFS INC. Cleveland-Cliffs Inc.

8 | SKILLINGS MINING REVIEW April 2018

Per Iron Unit

Per Gross Ton at 64%

Per Ton at 64% Reporting Date

$1.28

$81.92

12/31/17

$1.42

$90.88

12/31/17

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Innovative Grinding Solutions ME Elecmetal . . . Always here when you need us ME Elecmetal offers more than mill liners — We offer innovation, support, custom designs and valuable tools to develop a total grinding solution speciic to your needs. We are your trusted partner at every stage of the optimization process to provide valuable insight based on our years of experience and advanced technologies. We will help you optimize your process, reduce downtime and increase productivity, resulting in higher proots. One more thing you can count on with ME Elecmetal . . . We will ALWAYS be here when you need us!

ME Elecmetal’s products and services include: - Grinding mill liners (castings, rubber and composite) - Grinding media (SAG, ball and grinding rods) - Crusher wear parts - Smelter ladles and slag pots - 3D laser scanning for wear analysis - Reline simulation services - 2D/3D simulation services (DEM and FEM) ME Elecmetal 3901 University Avenue NE Minneapolis, MN 55421 480-730-7500 www.me-elecmetal.com

Ask Us About ME FIT Solutions

www.skillings.net April 2018 SKILLINGS MINING REVIEW | 9 ME FIT SYSTEM | ME FIT CRUSHING | GRINDING MILL LINER | GRINDING MEDIA | CRUSHER COMPONENTS | LINER FASTENER SYSTEMS

STEEL

The Sale of Essar Steel...Again

A

rcelor M ittal , the planet ' s largest steel producer, filed a higher offer than the

VTB

Steels Ltd., which is categorized as a delinquent debtor, when it made its supply to Essar Steel.

investor group, which is backed by the son of a billionaire creator of

Essar Steel.

There were two bids for its steel firm, which could fetch a valuation of at least $6 billion. Essar Steel was possessed by billionaire brothers Shashi and Ravi Ruia prior to being brought under a new insolvency resolution procedure that was created to clear out troubled companies through asset sales.

ArcelorMittal was believed ineligible to bid since it held a bet in Uttam Galva

10 | SKILLINGS MINING REVIEW April 2018

ArcelorMittal moved 29.1 percent stake at the Mumbai-based business to additional Uttam Galva founders, based on an exchange filing in March.

The VTB investor team was deemed ineligible.

The VTB consortium submitted a bid through a Mauritius-based investment vehicle called Numetal, in which the Russian financial group is the largest shareholder. ArcelorMittal partnered with Nippon Steel & Sumitomo Metal

Corp. for its own offer. Essar Steel contains claims of about 518 billion rupees ($8 billion) which have been admitted under the bankruptcy process.

Advisers evaluating the offers for Essar Steel India Ltd. are recommending that bids to the insolvent company be disqualified, according to sources with knowledge of the topic.

Legal and accounting advisors expressed concerns to the interim settlement professional, which will be overseeing the Essar Steel sale process, about the qualification of ArcelorMittal's deal as well as another bid by a consortium headed by Russia's VTB Group.

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Cleveland-Cliffs

“Fully Enclosed�

L

ourenco

Goncalves, president and chief executive officer,

attacks difficulties head-on using a run of daring predictions.

Mr. Goncalves

said the

East Toledo plant " fully enclosed "

soon be

will and

emit no air pollution while all of the water drawn to it from the

Maumee River will be treated

onsite and recirculated. Ground was broken on the $700 million investment in Toledo side.

Industrial General Contractor Specializing in Mining Equipment Installation and Maintenance crmeyer.com 800.236.6650

The centre will soon be producing the initial step in creating steel and iron ore pellets for the nation. Unlike most executives from the steel business, Goncalves never talked about ever attempting to roll back environmental regulations. The $700 million project can provide 1200 construction contracts and about 130 permanent positions.

The Ohio EPA stated when issuing the permit that carbon monoxide, nitrogen oxides, particulate matter, and also greenhouse-gas pollutants are expected to be emitted along with other pollutants. Company leaders said,Toledo had plenty of positive attributes such as access to rail lines but also water resources, attributes most locations simply can't create.

The plant will produce 2.48 million tons of hot-briquetted iron a year after it begins operation in 2020. Cleveland Cliffs will produce the pellets, which is loaded onto freighters and turn into steel. Front Street near Millard will transform itself into a functioning industrial area. Its iron past will now become a future of iron ore pellets. However, the agency said none of the emissions will be at levels harmful to public health or the environment.

Piping Concrete Ironworking Design/Build

Goncalves has chastised China for weak environmental laws and stated his company aims to serve as a model throughout the world by showing how a significant device for steel mills can be made in a self-contained centre with minimal or no fugitive dust emitted. The East Toledo plant, also to be known as Iron Units, will utilize taconite pellets manufactured at the provider's Northshore Mining centre in Silver Bay, Minnesota.

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Millwrighting Boilermaking Offices Nationwide Building Construction Equipment Structures

April 2018 SKILLINGS MINING REVIEW | 11

COAL

CHINA'S Coal Gain Falls

Nonetheless, there's concern that the good times will become costs, have surged in recent months and analysts are warning about further declines as mines ramp up output. Spot coal in the port of Qinhuangdao averaged 36 percent higher last season and struck 751 yuan in January, the most because 2012, based on China Coal Resource.

P

rices , that have since eased

March 19, may 5% this season.

Shenhua targets output season of 290 million tons after submitting a 1.9 percent increase to 295.4 million to 2017. Coal earnings will slip from nearly 444 million tons, to 430 million tons. to

636

yuan at

diminish about

China Shenhua Energy Co., the nation's largest coal miner, said earnings jumped to the maximum amount since

12 | SKILLINGS MINING REVIEW April 2018

2012 as strong demand and government attempts to rein in overcapacity helped strengthen prices. Net income increased to $7.6 billion based on the Hong Kong Stock Exchange.

The organization, which r uns railroads and electricity channels, had flagged the gain jump. Demand was underpinned by robust development. Net income was helped by its own subsidiary, Yancoal Australia

Ltd., swinging into a record gain in the loss the prior year, the business said.

Yanzhou additionally reported impairments of over 2.2 billion yuan, such as bad debts and depreciation of stock.

China Coal, the nation's biggest listed miner later Shenhua, reported net earnings plummeted to 3.49 billion yuan this past year. While the manufacturer said China could face irrigation shortages from time to time, it cautioned that the country's intake will slow. Declines in coal power plant construction in China, India and the U.S. are estimated to drive the heavily polluting gas within the border but not quickly enough to fulfill global climate change objectives, environmental groups said Wednesday. Coal's

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Golder Unveils Refreshed Brand

G

older, a leading global engineering and consulting firm, unveiled its refreshed brand in January.

This

has been the first major refresh

of the company’s brand in over half a century.“Golder has enjoyed

a long and successful journey, responding to incredible challenges with a powerful resilient spirit, driven by

our employee owners and their commitment to our company,” says Golder CEO Dr. Hisham Mahmoud. “Updating our brand isn’t just about our logo, it’s about sharing our success story more broadly with the world.”

As a client-centric, employee-owned company, Golder is constantly striving to be differentiated in its chosen markets. The update of the brand is a result of direct insight and feedback from employees and clients worldwide.

It is much more than a new logo; it is a milestone marker in the company’s history, a momentum builder for the future, and a representation of Golder’s commitment to its clients and communities. Golder works on some of the world’s most challenging projects.

dominance as the gas of choice for producing electricity has been falling as cheap all-natural gas and renewable energy resources challenge its decadeslong reign.

The findings are based on information from the International Energy Agency, which recently announced coal was first in a decade of stagnation with need falling at a level last observed in the early 1990s. Having fewer naturally-occurring crops would reinforce international efforts to steer away in the economical and widely gas.

Coal accounted for roughly 70 percent of global energy industry emissions of this greenhouse gas carbon dioxide in 2016, according to the International Energy Agency prices.

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April 2018 SKILLINGS MINING REVIEW | 13

Industry Insider

Stepping Outside The Box hrs./day. I asked why not 24 hrs./day and, in a demeaning tone, he said that it needed maintenance, cleaning up.

RON PINTO Process improvement professional.

São Paulo Area, Brazil

A

l l o f u s , at o n e t i m e o r another, have thought about better ways to do what we

do, make better use of the resources, shorten the cycle time or any other way to optimize our processes.

The

I questioned the need for 4 hours to clean-up the machine, and he said that cleaning the machine actually took one hour, but they needed to remove the very fine powder that accumulated on the ground.

could do the job, because that is what shovels are for. I asked then why not place some canvases with strings under the structure and at the right moment pull the strings, bringing most of the powder from under the structure and exposing it to the action of the bulldozer. He simply answered, in a sort of amazed way, that they had never thought of doing that.

Again, I questioned the reason not to use a bulldozer to do it, and again in a demeaning way, he said that they did it, but they needed to use shovels to remove the powder from under the structure. In his mind only shovels

Soon there were canvases under the structure and the stoppage was reduced to one hour. At 250 tones/ hr., and US$ 5.00/ton you can do the math and see how much more they produced annually.

problem is that we usually think of

our “field of vision”, meaning that our solutions stay within the traditional tools or traditional ways of doing things. solutions that remain within

There is a puzzle that challenges people to cover all 9 dots in a box using only four straight lines. The only possible way to do it is by drawing the lines beyond the boundaries of the box, which is allowed, but that box tends to keep us from doing it. That box is what we call “tunnel vision” or “we always did this way” syndrome.

In a lime quarry, in Mexico, during the walk through to get acquainted with the areas, the top boss finally stopped by the large crusher and proudly informed that it worked 20

14 | SKILLINGS MINING REVIEW April 2018

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- PolyMet’s NorthMet project -

S

Permit to Mine

ince the last quarterly update, the

DNR placed a Permit to Mine on public notice and accepted public comments and objections from January 5, 2018 through March 6, 2018. The draft Permit to Mine is comprised of the permit application, draft Special Conditions, and a draft Wetlands Replacement plan. draft

review may result in changes to the draft permit. Using the decision criteria outlined in statute, the DNR will determine whether to hold a pre-decisional contested case hearing and the scope of any such hearing. If no contested case hearing is held, DNR will proceed to making its final decision on the draft Permit to Mine.

The draft Permit to Mine and several related fact sheets were posted on the DNR’s Permit to Mine webpage for the NorthMet project.

On January 29, 2018, the DNR deemed the PolyMet application “filed” in accordance with the newspaper publication requirements established in state law. This determination triggered a 30-day opportunity to file petitions for a contested case hearing on the draft Permit to Mine.

The petition opportunity ended on February 28, 2018.

The DNR and MPCA held joint public meetings on February 7th and 8th regarding DNR’s draft Permit to Mine and the MPCA’s draft air quality permit, draft water quality permit, and draft 401 certification.

The meetings were held in Aurora and Duluth and featured an open house where the public could talk directly with agency staff, the state-hired consultants, and PolyMet. Each meeting also included a public comment forum where attendees could provide oral comment on the draft permits with agency leadership listening.

Since the close of the comment and objection period, the DNR and its consultants have started the review and careful consideration of the public comments, objections, and petitions for a contested case hearing. This extensive

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April 2018 SKILLINGS MINING REVIEW | 15

STEEL

Chinese Raw Steel Production Continues Growth Late last month, when the Department of Commerce's Section 232 reports to the president were made public, the administration expressed the the goal of increasing the capacity use rate for both aluminum and steel up to 80%, the minimum rate needed for the long-term viability of the business, according to the Department of Commerce.

T

he

U.S.

domestic sector is more

than capable of generating at a continuing

80

percent or more

capacity utilization rate (the report points

U.S. 87.4% capacity usage rate), MetalMiner Executive Editor Lisa Reisman wrote last month. When steel to the

2002-2008

period, in which

mills operated in an

mill utilization falls, costs per unit of steel product rises, reducing profit margins and product pricing efficacy, the section's analysis stated. Even the U.S., on the flip side, between 2011 and 2016 had a normal capacity utilization rate of 74 percent.

As a consequence of Beijing's crackdown on polluting industries, Chinese steel mills are increasingly turning into the higher-purity iron ore levels, leading to a buildup of low-grade iron ore in port stocks. Doubters may suggest the direct acid battery is doomed, together with the internal combustion engine in the very long term, they'd probably be right. Last month, the Trump administration announced a aim of reaching an 80% capacity utilization rate for the domestic aluminum and steel industries. As stated by the American Iron and Steel Institute's most recent raw steel production report, the potential rate for

16 | SKILLINGS MINING REVIEW April 2018

this year through March 10 sat at 74.8 percent. Generation in the year so far amounted to 17,187,000 net heaps. Concluding the anti-dumping and countervailing duty investigation of Chinese aluminum foil imports investigations which started last March the U.S. International Trade Commission

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issued a final affirmative determination. Because of this, the Department of Commerce will soon issue orders to the imports. Anti-dumping duties ranging from 48.64 to 106.09% and countervailing responsibilities ranging from 17.14 to 80.97 percent could be implemented.

The production for that week produced a capacity utilization rate of 77.8%. The numbers for this week end up year over year, compared to 1,716,000 net tons produced in exactly the same week a year ago (which had a 73.6% capacity utilization rate).

Meanwhile, manufacturing for the week ending March 10 was down 1.1 percent from the previous week, when manufacturing was 1,834,000 net tons and the rate of capacity use was 78.7 percent.

Year-to-date production through March 10 was 17,187,000 net heaps, good for a capacity utilization rate of 74.8%, which was down 0.2% from your 17,221,000 net tons during exactly the identical period last year, once the capacity utilization rate was 74.6 percent. President Trump signed a memorandum authorizing the U.S. Trade Representative (USTR) Robert Lighthizer to accept the upcoming steps

We thrive on challenges golder.com

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in the government's Department 301 probe, that launched last August. The memo signed by Trump can lead to as much as $60 billion in tariffs on Chinese products, the president said Thursday.

According to report, the suggested list of products which can be subject to tariffs comprises around 1,300 items.

The USTR now has 15 days to print a listing of merchandise, after which a review period will commence.

In metals news, domestic raw steel production for the week ending Feb. 24 was up slightly from the same week last year, Shanghai copper prices drop and Japan's steel exports rose 24.1% in January. Engineered steel production

for the week ending Feb. 24 was up 0.7 percent compared with the same week in 2017.

Production for the week flocked to 1,783,000 net heaps for a capacity use rate of 76.5 percent. Production for the week ending Feb. 24 grew up 1.8 percent from the last week. From the year up to now, nevertheless, raw steel production is down 1.6 percent compared with the exact same interval in 2017.

The most-traded April contract to the exchange dropped to $8,430 a ton, according to the report. Exports of zinc from Japan jumped 24.1% year over year in January.

April 2018 SKILLINGS MINING REVIEW | 17

IRON RANGE REGION

Great Lakes Shipping Community Urges Swift Passage Of U.S. Coast Guard Authorization Bill

C

ompanies and organizations

G reat L akes shipping are urging the Senate to quickly approve the Coast Guard Authorization Bill (S.1129) when it comes before them next week. The bill would set funding for all U.S. Coast Guard operations this year and next.

Key Great Lakes missions that would dependent on

be funded include search and rescue, law enforcement, aids to navigation, pollution response and icebreaking.

Of particular importance is the provision that authorizes construction of a new Great Lakes icebreaker as capable as the heavy icebreaker MACKINAW. The MACKINAW was built in 2006, but the other vessels charged with icebreaking date as far back as 1979.

The bill includes the Vessel Incidental Discharge Act (VIDA), which consolidates the current patchwork system of separate and sometimes conflicting regulations on commercial vessel ballast water discharges by the U.S. Coast Guard, U.S. Environmental Protection Agency and the Great Lakes states into a unified regulatory system in which each has roles that play to their regulatory, technical, and scientific strengths.

As the Coast Guard’s ballast water regulatory system has matured over time, the initial uncoordinated efforts between states and the federal government to stop the introduction of non-natives species will be integrated. VIDA does not eliminate the regulation of

commercial vessel ballast water, rather it improves it by imposing stricter and more uniform requirements on vessels bringing foreign ballast water into the Great Lakes. Senate passage of the Coast Guard Authorization Act will continue and enhance the Coast Guard’s priority missions of maritime safety, homeland security, and environmental protection on the Great Lakes.

Founded in 1992, Great Lakes Maritime Task Force promotes domestic and international shipping on the Great Lakes.

With 82 members, it is the largest coalition to ever speak for the Great Lakes shipping community and draws its membership from both labor and management representing U.S.-flag vessel operators, shipboard and longshore unions, port authorities, cargo shippers, terminal operators, shipyards and other Great Lakes interests.

While this past winter was not as harsh as the arctic-like winters of 2013/2014 and 2014/2015, U.S.-flag Great Lakes carriers had to cancel or delay more than 1.8 million tons of cargo because the U.S. Coast Guard was unable to meet the needs of commerce.

A number of their icebreakers suffered casualties that kept them out of service for significant periods of time.

S.1129 also authorizes a new Coast Guard Center of Expertise for Great Lakes oil spill preparedness and response. This is very important as the Lakes are the source of drinking water for more than 30 million North Americans.

18 | SKILLINGS MINING REVIEW April 2018

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Dust Control Systems Market Growth Awareness The dust management systems market is estimated to reach 20.08 Billion in less than 10 years from 15.67 Billion in 2018, in a compound annual growth rate (CAGR) of 5.08% through the forecast period. Wet dust control systems are segmented into electrostatic precipitators and scrubbers. into wet and dry. The segment accounted in 2017 for a sizable market share of the international dust management systems market. Based on end-use industry, the dust control systems market is broken down into structure, mining, oil & gas, chemical, textiles, pharmaceutical, food & beverage, and many others, which include utility & power, and metal & finishing businesses. The construction segment accounted for the largest market share in 2017.

Industrialization and rapid urbanization are currently fueling the requirement for dust control systems in the mining and construction industries.

A

s wet electrostatic precipitators have been utilised to treat particulates, such as aerosols or fumes, their requirement is forecasted to

develop at a higher speed.

The sterile dust management systems are split into bag dust collectors, electrostatic dust collectors , vacuum dust collectors , modular dust-collectors, and cyclone dust control systems.

The dust collectors segment is projected to grow at the highest (CAGR).

The dust control systems market is segmented into controllers that are fixed and mobile controls. At one time the international dust control systems market was dominated by the controllers segment. Mobile controls trailed, and include sub types such as handheld, self propelled, tractor-mounted. Easy and reliable working of tractor-mounted dust management systems makes it the fastest-growing and most dominant market internationally.

The growth in urbanization and health awareness of users and industrialization are expected to fuel the requirement for dust management systems. Predicated on the type, the dust control systems market is segmented

www.skillings.net

April 2018 SKILLINGS MINING REVIEW | 19

IRON ORE

Tariffs and trade deals still on point

T

he

U.S. is attempting to reach C hina in

a trade deal with

which the nation would reduce

stopped much sooner in the process if the previous governments had taken a stronger stance.

tariffs and further open its markets.

The Treasury secretary weighs in on President Trump's tariffs, dangers of a trade war and falls in the stock market ,

“P resident T rump W asn ' t

he ordered $60 billion in tariffs on China, in an apparent attempt to balance commerce between states, and he fully intends to inflict the extra bill on the imports.�

bluffing when

Yes, There'll be some short term effects as a result of pushing on China, but there is a strong belief that drawing a line in the sand today and sticking with it, will create a better future. The

executive suites declare higher tariffs raise prices on basic goods and price U.S. Tariffs are a massive problem in this country. The truth is, we already pay way too much in concealed taxes on almost every purchase we make as Americans before any additional tariffs President Trump has proposed or take effect. You may not realize it, but fundamental products like footwear, apparel and household items are extremely price sensitive. Any price increase at any point in the procedure, from manufacturing to the shop shelf, adds directly to the final price for shoppers.

The President truly believes that we have far too many poor trade deals. A number of these deals were entered into if the U.S. was helping the rest of the world develop and helping make strong trading partners was in our very best interest, and that time has passed, have to be revisited.

Notably there are several factors impacting the stock exchange, but the most significant component to concentrate on is that the market will go down and up at the short-term, the real important issue is where will it be longer-term.

Popular view indicates, the best end game is all about Intellectual Property.

While we'll begin with trade wars and tariffs, the actual purpose is to negotiate a solution concerning the integrity of intellectual property rights. The Administration believes that many existing 'problems', such as North Korea achieving atomic weapons, could have been

20 | SKILLINGS MINING REVIEW April 2018

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MINING INDUSTRY PEOPLE Hut 8 Mining Corp. announced the appointment of Andrew Kiguel as President and Chief Executive Officer and a director of the Company effective April 2, 2018, subject

ADVERTISING INDEX

Azcon..........................................20

to final acceptance by the TSX Venture Exchange. In connection with such appoint-

Barr Engineering.........................17

ment, Sean Clark will step down as Interim Chief Executive Officer of the Company

Fryberger....................................13

on March 31, 2018, but will continue to serve the Company in an advisory role. Mr. Kiguel joins Hut 8 from GMP Securities L.P. where he played an integral role for more than 18 years in the Real Estate and Retail Capital Markets groups.

Nevada Copper Corp could be announcing the replacement for CEO and president Giulio Bonifacio imminently following the appointment of veteran mining executive

Global Minerals Engineering.....20 Golder Associates......................15 Hallett Dock Company...............05

Tom Albanese and former RBC Capital Markets chief Ernie Nutter to an “advisory”

Lake Superior Chapter ISEE.......20

board, and Bonifacio’s sudden retirement. The company is currently promoting its

Malton Electric Company..........21

revamped Pumpkin Hollow copper mine blueprint at the 2018 BMO Global Metals & Mining Conference in Hollywood, Florida.

New Gold Inc. announced the pending retirement of four Directors - Vahan Kololian, Martyn Konig, Randall Oliphant and Kay Priestly, as well as the nomination of two new independent Directors, Dr. Gillian Davidson and Peggy Mulligan. Overall,

walcot water...............................10 Mielke Electric Works.................09 Minnesota Power.......................11

the changes result in the planned reduction in the size of the Board from nine to

Naylor Pipe.................................24

seven members. Dr. Davidson has 20 years of experience as an internal and external

NBC.............................................20

advisor to companies and other organizations regarding sustainability, social license and community relations. Ms. Mulligan has over 35 years of experience in audit and

Neo Solutions.............................21

finance. 

Northern Engine & Supply.........21 RMS............................................13 SEH.............................................22

www.skillings.net

April 2018 SKILLINGS MINING REVIEW | 21

STATISTICS

January 2018 Crude Steel Production

By John Edward, Associate Publisher

W

orld crude steel produc-

64 countries World Steel Association (worldsteel) was 139.4 million tonnes (Mt) in January 2018, a 0.8% increase compared to January 2017. tion for the

reporting to the

The crude steel capacity utilisation ratio of the 64 countries in January 2018 was 70.0%. This is 0.2 percentage points lower than January 2017.

Compared to December 2017, it is 0.7 percentage points higher. China’s* crude steel production for January 2018 was

67.0 Mt, a decrease of 0.9% compared to January 2017. Japan produced 9.0 Mt of crude steel in January 2018, up 0.3% on January 2017. India produced 9.0 Mt of crude steel in January 2018, up 2.5% on January 2017.

In the EU, Italy’s crude steel production for January 2018 was 2.0 Mt, up by 5.3% on January 2017. France produced 1.4 Mt of crude steel in January 2018, an increase of 3.0% compared to January 2017. Spain produced 1.1 Mt in January 2018, a decrease of 1.0% on January 2017.

Turkey’s crude steel production for January 2018 was 3.2 Mt, up by 7.6% on January 2017.

The US produced 6.8 Mt of crude steel in January 2018, a 2.2% decrease on January 2017. Brazil’s crude steel production for January 2018 was 2.9 Mt, up by 1.3% on January 2017. * worldsteel estimate Statistics based on World Steel Association Report released on February 26, 2018. 

Preliminary USGS Iron Ore Statistics for September 2017

By John Edward, Associate Publisher

A

U.S. G eological S urvey (USGS) report by Mineral Commodity Specialist Christopher A. Tuck, U.S. mine production and shipments of iron ore in September 2017 were 4.18 million metric tons (Mt) and 5.38 Mt, respectively.

Let’s show the world

Average daily production of iron ore was 139,000 metric tons (t), 13% greater than that of August and 27% greater than that of September 2016. Average daily shipments of iron ore were 179,000 t, 7% greater than those in August and 36% greater than those in September

the world forward.

ccording to the

what we can do together.

Day by day. Project by project.

Together we’re engineering what’s possible and moving

2016.

Mine stocks at the end of September 2017 were 16% less than those held at the end of August 2017 and 15% less than those held at the end of September 2016. U.S. exports of iron ore totaled 1.20 Mt in September 2017, 23% less

Building a Better World for All of Us Engineers | Architects | Planners | Scientists

than those in August 2017 and 10% greater than those in September 2016. U.S. imports of iron ore totaled 178,000 t in September 2017, less than one-half those in August and

sehinc.com • 800.325.2055

33% less than those in September 2016. 

22 | SKILLINGS MINING REVIEW April 2018

www.skillings.net

CRUDE STEEL PRODUCTION, FEBRUARY 2018. Source – World Steel Association

1,030 e

1,140 e

1,149

-10.4

Total - European Union (28)

15 e

20 e

17

-11.8

El Salvador

5e

10 e

8

-37.5

Guatemala

25e

25 e

24

4.2

1,535 e

1,620 e

1,652

-7.1

-

-

-

-

United States

6,446

6,822

6,423

0.4

e – estimate | r – revised Monthly Crude Steel Production in the 67 Countries included in the report, in thousands of metric tons. The 67 countries included in this table accounted for approximately 99% of total world crude steel production in 2016.

Total - North America

9,056

9,637

9,274

-2.3

U.S. RAW STEEL PRODUCTION

417

344

305

36.7

Brazil

2,714

2,866 e

2,572

5.5

Chile

85 e

100 e

91

-6.3

Colombia

90 e

105 e

109

-17.3

Percent Change*

Capability Utilization Rate

Production

Ecuador

45 e

45 e

48

-6.3

March 31, 2017

1,776

- 1.5

76.2

22,592

1

75.4

Paraguay

2e

5e

1

100.0

Previous Year

1,716

3.5

73.6

22,369

-

74.6

100 e

100 e

93

7.1

March 24, 2017

1,803

- 1.3

77.4

20,816

5e

5e

3

66.7

0.8

75.3

25 e

35

37

-31.5

Previous Year

1,716

5.1

73.6

20,653

-

74.6

3,483

3,605

3,259

6.9

March 17, 2017

1,826

0.7

78.3

19,013

0.4

75.1

Egypt

583

660

541

7.6

Previous Year

1,716

6.4

73.6

18,937

-

74.6

Libya

48

48 e

41

15.0

March 10, 2017

1,813

- 1.1

77.8

17,187

-0.2

74.8

-

-

-

-

Previous Year

1,716

5.7

73.6

17,221

-

74.6

South Africa

491 e

577 e

496

-0.9

Total - Africa

1,122

1,285

1,078

4.0

2,120 e

1,980

1,426

48.6

Qatar

152

233

223

-31.8

Saudi Arabia (HADEED only)

385

423

480

-19.8

2,859

2,918

2,403

19.0

China

64,930 e

67,000

61,328

5.9

India

8,434

9,028 e

8,154

3.4

Japan

8,296

9,030 e

8,340

-0.5

South Korea

5,415

6,125 e

5,529

Taiwan, China

1,810 e

1,960

Total - Asia

90,475

Australia

Cuba

Mexico Trinidad and Tobago

Argentina

Peru Uruguay Venezuela Total - South America

Morocco

Iran

Total - Middle East

New Zealand Total - Oceania

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FEB 2018

JAN 2018

FEB 2018

13,354

14,391

13,456

-0.8

Total - Other Europe

3,290

3,514

2,980

10.4

Total - C.I.S. (6)

7,675

8,490

7,711

-0.5

131,791 139,439 127,338

3.5

COUNTRY

Total (64 countries)

Weekly Production WEEK ENDING

Year-to-Date Production

Percent Change*

Canada

FEB 2018

% CHANGE FEB – 18/17

JAN 2018

Production

% CHANGE FEB – 18/17

FEB 2018

COUNTRY

In thousands of Net Tons – Source - American Iron and Steel Institute * Percent Change is a comparison between a given week and the previous week.

The % change figure in the previous year row refers to the change from a given week compared with the corresponding week of the previous year.

AISI’s estimates are based on reports from companies representing about 50% of the Industry’s Raw Steel Capability and include revisions for previous months.

WEEKLY U.S. RAW STEEL PRODUCTION BY DISTRICT DISTRICT

WEEK ENDING 3/31

3/24

3/17

3/10

North East

205

200

218

214

-2.1

Great Lakes

663

676

672

681

1,848

-2.0

Midwest

168

170

164

163

95,047

86,736

4.3

Southern

667

686

707

686

90,475

493

86 736

4.3

Western

73

71

65

69

52

59

50

3.4

Total

1,776

1,803

1,826

1,813

477

552

442

7.7

In thousands of Net Tons – Source – American Iron & Steel Institute.

April 2018 SKILLINGS MINING REVIEW | 23