Skillings December 2012

PROFILES IN MINING President and CEO of Sandstorm Gold

IRON ORE Posco Studying Bid For ArcelorMittal Canadian Iron Ore Mines

www.skillings.net

Nolan Watson

M I N I N G

Mining Industry Shipping South Africa Workers Return To Anglo American Mine

R E V I E W

DECEMBER 201 2 • VO L. 1 0 1 N O . 1 2

Mining

Water Management Annual Index IRON ORE PRICE REPORT MINING INDUSTRY PEOPLE SOCIAL MEDIA MIP LINKEDIN MINING MATTERS STATISTICS

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2 | SKILLINGS MINING REVIEW December 2012

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CONTENTS

DECEMBER 2012 VOL. 101 No. 12

Mining Water Management ....6 This month, we take a look at Mining Water Management.

Annual Index....................................................................................26 ADVERTISING INDEX............................................................................30 IN Memoriam ............................................................................18 IRON ORE PRICE REPORT.....................................................................24 MINING INDUSTRY PEOPLE..................................................................18 MINING MATTERS.................................................................................30 SOCIAL MEDIA MINING INDUSTRY PROFESSIONALS LINKEDIN........20 STATISTICS........................................................................................24,25 COAL Requirement Of Coal Increases As China And India Increases More Power Plants......................................................17 COPPER Codelco Copper, Expected To Produces 1.7 MT This Year..................10 GOLD Banks Underwrite $1.5 Billion Financing Package To Back SA Mining Company Gold Fields© Demerger Of Mines And Refinance...............9 IRON ORE Cuervo Resources Jumps Back Into Action In Peru.............................11 Iron Ore Mining Stifled By Imposed Costs: Gilbertson.......................11 Cliffs - $71 Fair Value...........................................................................12 Posco Studying Bid For ArcelorMittal Canadian Iron Ore Mines......12 Ferrum Americas Mining Intersects 88.5m Grading At Cerro RojoIronOre Project In .........................................................21 MINING FINANCE $1 Trillion Of Potash...............................................................................5 North American Metals& Mining Companies Slowly Recovering-S&P....5 MINING INDUSTRY SAFETY South Africa Workers Return To Anglo American Mine....................10

Publisher Chas Pitts Chas.Pitts@Skillings.net Associate Publisher John Edward john.edward@cfxnetwork.com Senior Sales Manager Stan Salmi Stan.salmi@Skillings.net Contributing Editors Katie Nathan katie.nathan@cfxnetwork.com Anna Grant anna.grant@cfxnetwork.com Art Director Mo Shine mo.shine@cfxnetwork.com Circulation and Subscriptions Subscriptions@skillings.net Conferences & Seminars DigitalSuites@Skillings.net Sales & Marketing Christine Marie Advertising@Skillings.net Operations Manager Allen Paul allen.paul@cfxnetwork.com

MINING INDUSTRY SHIPPING Environmental Group Sues New York.................................................16 NON-FERROUS METALS Non Ferrous Metals Outlook On ........................................................13 PRESS RELEASES Researchers Tap Into CO2 Storage Potential Of Mine Waste............19 Great Lakes Iron Ore Trade Off 3.6 Percent in October.....................21 JDN Hoists Provide 200 Ton Handling Capacity On Offshore Rig.....29 Cliffs Natural Resources Board Elects New Director...........................22 Atlas Copco Introduces New Range Of Electric Concrete Pokers......23 PROFILES IN MINING Nolan Watson – President, CEO and Director of Sandstorm Gold Ltd. and Sandstorm Metals & Energy Ltd...............14 STEEL New Electrical Steel Grades From Cogent Power.................................9 Subscriptions: U.S.: $72 annually in U.S. funds. $109 annually in U.S. funds for 1st Class Service All other countries: $250 in U.S. funds for 7-21 day service. $335 in U.S. funds for air mail service www.skillings.net

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December 2012 SKILLINGS MINING REVIEW | 3

SKILLINGS MINING REVIEW

DECEMBER 2012 | VOL. 101 No. 12

Commentary

By John Edward

F

or the December 2012 issue of Skillings Mining Review, we interviewed Mr. Nolan Watson - President, CEO and Director of Sandstorm Gold Ltd. and Sandstorm Metals & Energy Ltd. Mr. Watson is also the Chairman of the Audit Committee of the Board of Bear Creek Mining Corp.; a Director of Blue Gold Mining Inc. and the former Chief Financial Officer of Silver Wheaton Corp. He has won numerous awards for his professional and charitable achievements including

4 | SKILLINGS MINING REVIEW December 2012

We provide comprehensive news of the global iron mining industry and the issues which affect it through a monthly magazine, a continually updated website, electronic news alerts and newsletters and a mining directory.

the Early Achievement Award by the Institute of Chartered Accountants of British Columbia and Canada’s Top 40 Under 40 award. The full interview is available on our website www.skillings.net - a summary is reproduced in the current issue.

Sandstorm Gold Ltd. is a gold streaming company which provides upfront financing for gold mining companies that are looking for capital. Since early 2009, the company has compiled a portfolio of eight gold streams (five of which are producing gold) and three NSR gold royalties and grown its market capi-

talization to over $1 billion. It plans to diversify its low cost production profile through the acquisition of additional gold streams. Sandstorm Metals & Energy Ltd. is the world’s first diversified streaming company which provides upfront financing to resource companies that are looking for capital.

The company has acquired a portfolio of seven commodity streams in copper, palladium, oil, natural gas and coal. Sandstorm plans to grow its production base through the acquisition of additional commodity streams.

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MINING FINANCE

North American Metals & Mining Companies Slowly Recovering-S&P

By Anna Grant

D

uring the next year or so, Standard & Poor’s analysts expect the credit quality of most North American metals and mining companies to improve, albeit slowly. This trend is in step with what S&P analysts expect to be sluggish economic growth.

Nonetheless, S&P noted results for mining companies, such as FreeportMcMoRan Copper & Gold, Teck Resources and Cliffs Natural Resources have improved markedly this year.

Meanwhile, base metals and steel have been recovering at different paces, while gold continues to benefit from overall global economic uncertainty.

In an analysis, S&P analysts outlined several key factors which have,

or potentially could have, a significant impact on the North American metals and mining sector including: • Economic growth.

• Demand from China.

• Producer discipline. “In our view, producer discipline should keep prices high enough to support profitable operations.”

• Liquidity/cash flow • M&A activity. “Acquisition activity has begun to pick up, most notably among coal companies,” S&P analysts said. “We would expect further M&A across the metals and mining sector as a whole, as confidence returns, since the various factors that fueled M&A for many companies before the recession persist, namely the need to replace reserves, lower costs, enlarge

their geographical footprint, enhance product offerings, and expand the size and scope of operations.” S&P said its outlook for base metals producers is also mixed. Aside from China, end markets remain relatively weak which could cause copper prices to decline from $3.60 per pound. However, S&P noted with no new supply of copper expected during the next few years and copper demand improving outside of China, copper prices should remain strong.

In their analysis, S&P noted, “Gold continues to be a bright spot and credit profiles for producers are strong.” The analysts predicted that gold prices could remain above $1,000 “for quite some time as economic recovery falters in western economies.”

Reported by http://www.mineweb.com

$1 Trillion Of Potash

By Anna Grant

T

he price of potash has been volatile during the past decade, rising from about $175 per ton in 2007 to over $870 in 2009 before stabilizing around its current $450.

Potash is a nutrient-rich substance that is mined out of the ground and added to most fertilizers. The days of cheap potash are long gone, primarily due to limited supply, population growth, increased food consumption, and the need for more efficient farming.

Extra! Extra! Arizona Has $1 Trillion Of Potash!

Amid potash’s 300% rally in 2008, the State of Arizona released a study that its Holbrook basin contains a significant amount of potash. According to the governmental study, the basin contains 682 million to 2.27 billion tons. At a price of $450 per ton, this implies a reserve that is worth between $300 billion to $1 trillion- and that is from just one of the state’s basins.

Companies quickly took notice of the government’s report.

Soon thereafter, the basin’s land was gobbled up by three companies: Passport Potash, Hunt NZ Potash and Prospect Global Resources. Aside from minor federal, state and Native American royalty interests, these three companies won the bidding wars and are the only entities planning to mine potash in Arizona’s Holbrook basin.

Reported by www.seekingalpha.com www.skillings.net

December 2012 SKILLINGS MINING REVIEW | 5

COVER STORY

Open pit mine - dewatering pumping system operating at the bottom of the pit in a mine located in northern Chile operating at 4,000 m.a.s.l. or 13,123 f.a.s.l. photo courstey: www.pump-zone.com

Mining Water Management W

ater is used within a broad range of activities including mineral processing, dust suppression, slurry transport, and employee requirements. Over the last several decades, the mining industry has made significant progress in developing far reaching approaches that maximize water utilization and conservation. At the same time, operations are often located in areas where there are not only significant competing municipal, agricultural and industrial demands but also very different perspectives on the role of water.

6 | SKILLINGS MINING REVIEW December 2012

Laws regulating water vary around the world, but it is fair to say that the mining sector can expect to demonstrate a growing leadership approach to water use and management. As water plays an essential role in most mining and extractive processes, responsible water use is a critical business issue that affects the ability of individual mines to establish, operate and close.

enough water for ecosystem functioning.

In most mining operations, water is obtained directly from groundwater, streams, rivers and lakes or through commercial water service suppliers. In many countries, water abstraction is highly regulated, and permits specify the amount of water that may be used. Governments therefore play a key role in determining and allocating water among various users.

The Freeport-McMoRan Cerro WATER SOURCING Extending BlastMine Furnace Courtesy : UMECC Verde inTuyere’s Peru isLife. constructing a potable water treatment plant to Water sources often need to be ensure that the city of Arequipa will shared by multiple users, while leaving www.skillings.net

In areas of water stress, a reduction in water usage across a mining operation benefits the local community and the site (through reducing costs and improving operational efficiencies). A concerted effort in this regard can achieve significant water use reductions. have access to clean drinking water.

The plan is to build a wastewater treatment plant to divert and treat the town’s sewage to meet water requirements for future mine expansion.

The Cerro Verde operation is an open pit copper and molybdenum mining complex located approximately 20 miles southwest of Arequipa in Peru.

Freeport-McMoRan Copper & Gold, through its predecessor companies, began operating Cerro Verde in 1994.

The mining operation is conducted in two pits; the Cerro Verde pit is now approximately 1,082 ft/ 330m deep, and the Santa Rosa pit currently has a depth of 492 ft/150m.

Currently, there is insufficient wastewater treatment capacity in Arequipa Province, and the Rio Chili has become contaminated because of untreated residential and industrial sewage discharges to the river. These discharges also affect water quality in agricultural areas downstream of the city of Arequipa.

Treating wastewater for use at the expanded Cerro Verde operations would be a long-term source of treated water for mining operations.

It would also improve the river’s water quality, enhance agriculture products grown in the area and reduce waterborne illnesses.

Furthermore, the reuse of effluent is being promoted by the Peruvian government as a sustainable water supply for the mining sector.

WATER'S ROLE IN MINING PROCESSES Mines operating in regions with extreme seasonal variations in temperature or rainfall face difficult water www.skillings.net

management challenges. Where seasonal patterns provide very high rainfall for only one or two months, water must be managed to avoid flooding of operations that could lead to water contamination and potential health and safety issues. In these cases, water storage facilities are often constructed for use during extended dry periods.

In areas of water stress, a reduction in water usage across a mining operation benefits the local community and the site (through reducing costs and improving operational efficiencies).

A concerted effort in this regard can achieve significant water use reductions. For example, at Rio Tinto’s Argyle mine in Western Australia, an impressive 95% reduction in water use from the ecologically significant Lake Argyle has been achieved since 2005.

Argyle Diamond Mine is located in northwest Australia in the Kimberley region, which is remote, arid and hot- with temperatures reaching 104°F/40°C in the wet season and with an annual rainfall of 29inces/750mm.

Each of Rio Tinto’s operations implements the water strategy in its own way, reflecting local and regional water risks. To support improved performance, Rio Tinto developed a water standard in 2003 that sets out minimum expectations for water management at each of its operations.

To meet this water standard, each operation is required to develop a water balance and water management plan, employ skilled personnel to deal

with the different aspects of water management and design appropriate water infrastructure that reflects leading practice. Rio Tinto uses a “catchment approach” to water management, which considers all water flows and uses for the areas surrounding operation.

DISCHARGES AND POTENTIAL IMPACTS Planned water discharges from mines into the receiving environment are normally carefully monitored and controlled to ensure compliance with regulations and to minimize impact to receiving waters. Discharge of treated process water is routinely monitored and must meet certain quality standards and requirements in terms of temperature, pH and conductivity.

Other discharges occur due to normal run-off, extreme storm events and discharge from surplus dewatering where water may be contained and discharged appropriately.

Every case differs, but where water contamination has been a problem, water treatment solutions have sometimes been required. These solutions may need to be implemented long after a mine has closed. In some cases, specific ore types being mined interact with oxygen and water to form acid rock drainage (ARD), a process which can persist long after mine closure and may require on-going management and treatment. Mining companies now design operations to minimize ARD impacts. However, there are many old sites where water treatment is required.

Barrick’s Homestake mine in the United States of America is an example of on-going water treatment and December 2012 SKILLINGS MINING REVIEW | 7

COVER STORY reclamation projects to prevent longterm water issues.

mize sediment transport into streams, thereby protecting water quality.

The Homestake mine is located in the northern Black Hills near the city of Lead, South Dakota. The mine has been operational since 1876, with Barrick acquiring the site in 2001 when it purchased the Homestake Mining Company that historically operated the site.

The development of a network of capture systems to collect all seepage while diverting clean surface water into surrounding streams.

Over the life of the mine, more than 1,250 metric tons of gold was produced.

The majority of mining was from underground methods, but starting in the early 1980s a significant open pit was developed in the area of the original discovery.

With the long history of the mine, processing included various methods, including gravity concentration, amalgamation and cyanidation. This resulted in processing facilities occurring over a large area.

When the mine closed in 2001, it consisted of an extensive mine with between 300 and 400 miles of underground workings, a single open pit, three waste rock facilities, a tailings disposal facility, a mill site, a gold refinery and numerous other facilities and historical structures.

The rehabilitation of historical waste rock facilities and ancillary mine facilities to improve water management.

Initial reclamation concentrated on the removal of affected materials from the former mill site, to allow natural precipitation onto the site to flow to the surrounding streams without water diversion or treatment.

Subsequent reclamation of the waste rock facilities has concentrated on the establishment of vegetation to mini-

8 | SKILLINGS MINING REVIEW December 2012

First, storm water diversion structures were built on the waste rock facilities to minimize the amount of precipitation seeping into the water rock facilities while protecting the surrounding environment due to excessive sedimentation.

Secondly, multiple collection systems were built to capture seepage and surface drainage and pump it to the site water treatment plant.

The management and treatment of collected affected seepage to ensure discharged water meets water quality standards.

Homestake undertook a multipleyear study to determine the most effective way to manage and treat this affected seepage.

A water treatment plant, using reverse osmosis and the biological reduction of selenium to less soluble state, was constructed and integrated within the seepage collection system.

Water quality monitoring in nearby streams is demonstrating that all water quality standards are met and that the receiving waters are being protected as cold-water fisheries.

The maintenance of freshwater collection systems from the area’s natural springs, which supply process and potable water to surrounding communities.

During early operation of the mine, Homestake developed an extensive

system to collect water from a number of the area’s natural springs. This freshwater collection system supplied process water and potable water to the surrounding communities.

Due to the arid nature of the area, access to a high-quality water source increases the incentive for development in the area.

Homestake worked with the surrounding communities and the LeadDeadwood Sanitary District for the transfer of this historic water gathering system to these entities.

The excess water formerly used by the milling process can now be used by the district and be sold to surrounding housing developments as an additional source of income.

STAKEHOLDERS AND INNOVATION Leading companies in the mining sector have anticipated trends and allocated resources in preparation for their pragmatic responses. Dialogue within the industry, including principals and stakeholders, contribute to discussions developing regulations and standards essential to progress on the many water issues that affect the mining sector and the communities in which it operates.

Technology will continue to be developed to find innovative solutions to the challenges of obtaining water, reducing demand on water for mining processes and designing more efficient and effective means of water management and treatment. As the monetary value of water continues to rise, it will become a growing consideration in the financial planning and feasibility studies for mining operations. The industry’s future engagement is center to be undertaken at global, regional and operational levels to ensure that it is an informative voice in the emerging matter.

Source : The report “Water management in mining: a selection of case studies” by the International Council for Mining & Metals (ICMM). The full ICMM report can be downloaded via the Mining IQ website on http://goo.gl/bIIYM

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STEEL / Gold

New Electrical Steel Grades From Cogent Power

By Katie Nathan

A

range of new electrical steel grades, optimum for hybrid and electric vehicle drive motor applications is developed by Cogent Power, a wholly owned subsidiary of TATA Steel.

Electrical steels are generally developed to provide specific electromagnetic properties as defined in European and international industry standards. But these standards do not provide any specification in terms of mechanical characteristics.

There is increasing trend for considerably higher rotating speeds in motors to achieve improved power densities and material strength is therefore an increasingly critical factor.

In general an industrial induction motor may rotate at 3,000 rpm, while many drive motors for HEV and EV

applications are designed for a rotating speed of 10,000 rpm and in some instances even higher.

To provide the demanding mechanical requirements of these latest generation high speed rotating machines, at present Cogent Power could offer three non grain oriented electrical steel grades (M330-35HT, M330-35HS and M250-35HS) in 0.35mm gauge with guarantees of both electromagnetic and mechanical properties.

In addition, Cogent Power is also now offering a unique 0.50mm NO50 NGO grade, which has been specifically developed for cost-effective use at elevated frequencies over 50Hz. Mr Magnus Lindenmo technical development manager at Cogent Power’s Surahammar Bruks business in Sweden mentioned that “We are committed to providing our customers

with a wide range of high performance and high efficiency electrical steels and recognize that for our customers developing low carbon vehicles, mechanical performance is just as critical as electromagnetic performance.”

Mr Mark Cichuta GM of Cogent Power said that “I am delighted that we have been able to expand our electrical steels portfolio in this way.

This new product development shows the kind of benefit we can bring to our customers now we have full control over our production processes from raw materials to finished products.”

From 2007 the Surahammar plant had been supplied with hot rolled NGO electrical sheet primarily from TATA Steel’s IJmuiden works in the Netherlands.

Source - TATA Steel

Banks Underwrite $1.5 Billion Financing Package To Back SA Mining Company Gold Fields© Demerger Of Mines And Refinance

By Staff

B

arclays, Credit Suisse and JP Morgan opened a $900 million loan to participation by other banks and will hold the remaining $600 million as a bridge loan to a planned bond issue.

South African Gold Fields, the world’s fourth-largest gold producer, is spinning off two mines into a new company Sibanye Gold Ltd. Sibanye Gold will be traded in Johannesburg and New York starting February 2013. It will manage the KloofDriefontein Complex, Africa’s largest gold operation, and the Beatrix mines, which have relatively short operating lives and require a different management approach.

Gold Fields’ demerger follows strikes that began in South Africa’s platinum industry and spread to gold, iron-ore, coal and diamond mining. About 29,000 Gold Fields staff went on strike in the last three months, and won pay gains that added to rising power costs and capital spending.

The $900 million loan, which is being syndicated to banks, consists of a $450 million, three-year term loan and a $450 million, five-year revolving credit. The $600 million bridge loan to a bond issue has a 21-month maturity.

www.skillings.net

December 2012 SKILLINGS MINING REVIEW | 9

COPPER/ Mining Industry Safety

Codelco Copper, Expected To Produces 1.7 MT This Year

By Staff

C

hilean state copper giant Codelco is anticipated to produce about 1.7 million tonnes this year and slightly more than that quantity in 2013, reports BNamericas Thomas Keller CEO of Codalco informed reporters at the International Council on Mining and Metals Health and Safety Conference 2012 in Santiago, Chile, that “This year we will be very close to 1.7 million tons and next year our goal will be slightly more.

This forecast takes into consideration the decrease in production at certain operations, which is something the company had anticipated.”

These estimates do not include

production from the company’s equity stakes in Anglo American Sur and the El Abra copper mine in Chile. While the Ministro Hales project in Chile’s northern region II is planned to start operation by the year end, it would not contribute significantly to Codelco’s production until 2014.

Keller said that “Remember that Ministro Hales will enter production at year end, meaning MMH’s impact next year will still be marginal. By 2014 it will be an important factor in our production equation. In 2011, Codelco produced 1.74 million ton of copper.”

El Abra, a 51:49 Joint Venture between Freeport McMoRan and Codelco contributed 123,400 tons last

year and production from London based Anglo American’s Anglo American Sur assets that include the Los Bronces mine totaled 245,000 tons.

Especially at Los Bronces, the recently finished USD $2.8 billion expansion project would raise production by 278,000 tons per year to an average of 490,000 tons per year of fine copper in the first 3 years of full production.

A Codelco Mitsui Joint Venture controls 29.5% of AAS and according to their recently announced agreement; Mitsui would hold a 32.2% interest in the Joint Venture and Codelco would retain control with 67.8%.

Source - Business News Americas

South Africa Workers Return To Anglo American Mine

By John Edward

A

nglo American Platinum Ltd. announced that the miners at its operations in South Africa resumed work thereby ending a more than eight-week strike that crippled the world’s largest platinum producer. The arrival of workers at Anglo American Platinum’s operations in Rustenburg, about 100 kilometers (60 miles) northwest of Johannesburg, marked a waning of the crisis that has struck South Africa’s mining industry in recent months. However, farm workers angered over their minimum daily wages simultaneously launched a second day of violent protests in the nation’s Western Cape, setting fires and marching through the countryside.

“The company is pleased to welcome its employees back to work,” Anglo American Platinum spokeswoman Mpumi Sithole said in a statement.

The strike at Anglo American Platinum, known locally as Amplats, began amidst unrest across South Africa’s mining industry, a major economic engine of the nation. The company fired 12,000

10 | SKILLINGS MINING REVIEW December 2012

A South African Police truck, left, that was overturned by farm workers after they went on a rampage in Wolseley, South Africa, Wednesday, Nov. 14, 2012. Violent protests by farm workers have erupted in South Africa after weeks of unrest in the country's mining industry. The workers have been protesting their wages, saying they want a minimum wage of $17 a day. Currently, workers make about half that amount a day. (AP Photo)

workers and then reinstated them though the miners did not return to work.

Workers had previously demanded pay increases to give them 16,000 rand (about $1,800) in monthly pay but settled for less in the end. In the last several days, Amplats offered workers a one-time 4,500 rand ($500) payment, as well as either a monthly pretax allowance of 600 rand ($70) or a monthly pretax salary increase of 400 rand ($45).

While striking workers said they still

wanted higher wages, the fatigue of the long strike is likely to have played a part in ending the standoff.

But the financial damage has already been done - the company’s platinum arm declared that its year-end earnings “will decrease by more than 20 percent” compared to last year.

Meanwhile, world platinum prices have risen about $200 an ounce to about $1,600 during the unrest.

As reported by Jon Gambrell for the Associated Press www.skillings.net

IRON ORE

Iron Ore Mining Stifled By Imposed Costs: Gilbertson

Cuervo Resources Jumps Back Into Action In Peru

By Anna Grant

By Anna Grant

FORMER BHP Billiton chief executive Brian Gilbertson has warned that Australia’s high-cost environment and cumbersome regulatory process is making it difficult to get new iron ore projects off the ground.

N

G

ilbertson was speaking after telling shareholders at the annual meeting of Jupiter Mines in Perth that Jupiter would be freezing expenditure on its proposed $1.6 billion Mount Ida magnetite project in the central Yilgarn region of Western Australia.

His comments were followed later in the day with the news that the $6bn Oakajee port and rail iron ore project in WA’s mid-west region had been indefinitely delayed.

Iron ore prices have fallen 20 percent from last year’s annual average of $US151 a tonne to $US121 a tonne.

Continued strength in the dollar has also eroded likely returns for new iron ore projects.

Jupiter remains debt-free and has a cash position of $100m. The company is 17 per cent-owned by Gilbertson’sPallinghurst. South Korean steel giant Posco has a matching interest. Mr Gilbertson was one of the key architects of the 2001 $US57bn merger between Melbourne-based BHP and Anglo-African miner Billiton, the group he built into a global player through a string of acquisitions.

He took over as the merged group’s chief executive in 2002 but was dumped shortly after because of “irreconcilable differences” with the board, believed to be related to ambitions he had to take over Rio Tinto and Alcoa.

orthern Mine reported that iron ore explorer Cuervo Resources may be on to something big as it drills off the Bob 1 zone, one of the two large targets on its flagship Cerro Ccopane iron ore property in southern Peru.

Mr. Gordon Watts, Chairman of Cuervo Resources said that “Iron ore deposits are not that exciting, but they are definitely lucrative.”

Cuervo Resources said that while the prices have slumped lately, they should recover as steel consumption picks up, causing Asian steelmakers to look for new sources of iron ore. While Cuervo wholly owns over 250 square kilometer of iron prospects in Peru, its main focus is the Cerro Ccopane property that it has grown through grassroots exploration to 190 square kilometer. Cerro Ccopane is 65 kilometer south of Cuzco, the ancient capital of the Incan empire, and 600 kilometer in a straight line from the country’s capital, Lima.

The drive to Cuzco from Lima takes about 24 hours, but a commercial flight between the two cities cuts the commute to little over an hour.

Once in the historic and vibrant city of Cuzco, driving to the property takes roughly 6 hours, as it sits high up in the Andes, at an elevation ranging from 3,500 meter to 4,600 meter above sea level. The climate in the mountainous area is relatively cool and dry.

Reported by www.steelguru.com, Source: www.northernminer.com

Reported bywww.theaustralian.com.au

www.skillings.net

December 2012 SKILLINGS MINING REVIEW | 11

IRON ORE

Posco Studying Bid For ArcelorMittal Canadian Iron Ore Mines

By Anna Grant

P

osco, Asia’s third-largest steelmaker, is considering buying a stake in ArcelorMittal Mines Canada Inc. scrapping a bid for Australia’s Arrium Ltd. (ARI) “We are studying a possible stake purchase in the iron ore asset in Canada,” Kim Ji Young, a Seoul-based spokeswoman, said in November 2012.

“At the moment, nothing has been determined.”

A group including Posco may seek to buy about 10 percent of ArcelorMittal Mines Canada that’s worth about $1 billion, MoneyToday reported earlier, citing unidentified banking officials. Posco, which may invest as much as $300 million, hired Morgan Stanley to advice on

A man rides his bicycle past the Posco steel mill in Pohang, South Korea. photo: bloomberg.

the possible stake purchase, the Koreanlanguage news provider also added. The balance of funds would be raised from partners, who were not identified.

ArcelorMittal (MT) is considering selling about 30 percent of its Canadian

iron ore unit, a person familiar with the matter said.

ArcelorMittal is working with Goldman Sachs Group Inc. and Royal Bank of Canada, according to the person, who asked not to be named because the deliberations are confidential.

ArcelorMittal declined to comment.

The Luxembourg-based steelmaker fell 0.3 percent to 12.11 euros as of 1:40 p.m. in October 2012, under Amsterdam trading. ArcelorMittal has lowered the dividend, is selling assets and moving output to cheaper sites to help cut $23.2 billion of debt.

Reported bySungwoo Park and Sangim Han

Cliffs - $71 Fair Value

By Anna Grant

C

liffs Natural Resources is the largest producer of ironore pellets in North America and a major supplier of direct-shipping lump and fines iron ore and also a significant producer of metallurgical coal. According to analysis, North American iron ore division contributes most, about 60% to our $71 Trefis price estimate for the company’s stock. Given below are two of the most important drivers for Cliffs’ stock: 1. North American Iron Ore Revenue Per Ton: Cliffs iron ore operations in North America realized an average of $148 for each ton sold in 2011.

2. North American Iron Ore Gross Profit Margin: The North American iron ore business saw margins of 42.6% in 2011.

1. Higher Iron Ore Prices (+20%): The revenue generated by Cliffs per ton of iron ore sold is directly correlated to the global iron ore prices over a period. As the iron ore pellets produced by the division are used exclusively by steel manufacturers, the demand for steel directly impacts the demand for iron ore and hence the price commanded.

2. Stable Margins (+10%): Nowadays miners are grappling with rising input including fuel and labor costs. However, if Cliffs is somehow able to maintain current margins of 42.6% by the end of the Trefis forecast period, this will represent a 10% upside to the Trefis price estimate.

Reported by www.forbes.com 12 | SKILLINGS MINING REVIEW December 2012

www.skillings.net

Non-Ferrous

Non Ferrous Metals Outlook On

By Staff

A

luminium capacity expansion projects are expected to be commissioned in the short to medium term. India’s aluminium demand which consists of 55% of domestic consumption is driven by the power and construction sectors. The central firms in the market; Vedanta Group, Hindalco Industries Limited, National Aluminium Company Limited and Hindustan Copper Limited control the primary base metal industry in India including aluminium, copper and zinc. Even with these numbers, consumption of these metals in India still only account for only about 5% or less of the global market. Indian enterprises have limited influence on the global demand-supply position. The domestic prices, therefore, largely reflect the international prices and the currency movements. China remains the largest country for both production and consumption of non-ferrous metals, whereas the

Aluminium:

Given the weak economic outlook, demand for aluminium in the global market is expected to remain muted, at least in the near term. The extent of the upward movement however might be largely dependent on the health of the Chinese economy and the steps taken by the country to boost demand.

Copper: The sharp growth in apparent consumption during the current year, which was primarily led by strong imports by China, possibly indicates increased warehouse inventories rather than actual consumption, since industrial growth rate in that country has moderated over the last few quarters.

Zinc: Zinc prices, which weakened over the last three quarters due to the uncer-

tainty in recovery of the global economy, are likely to remain soft in the near term, as consumption growth is expected to remain moderate.

www.skillings.net

December 2012 SKILLINGS MINING REVIEW | 13

Profiles In Mining

Interview with Nolan Watson - President and CEO of Sandstorm Gold and Sandstorm Metals & Energy.

Nolan Watson SMR: When exactly did you formulate the idea to start Sandstorm?

NW: Prior to Sandstorm I was the first employee at Silver Wheaton and was their Chief Financial Officer from 2004 to 2008. During that time period, we completed a number of foundational silver streams and the company grew to over a $5 billion market cap. I am entrepreneurial by nature, so the idea of building another streaming company in commodities outside of silver was very appealing to me. The silver mining space is actually a very small sector in comparison to the gold and base metals sectors so we saw a lot of opportunity for the streaming model to be deployed.

The

14 | SKILLINGS MINING REVIEW December 2012

co-founder of Sandstorm, David Awram, was a colleague of mine at Silver Wheaton and when we left to start Sandstorm, our intention was to build a base metal streaming company.

With the market meltdown in late 2008, it was almost impossible to raise money for any venture other than gold, so we became a gold streaming company. Since that time, Sandstorm Gold has grown to over $1 billion market cap, we spun out a base metals streaming company (Sandstorm Metals & Energy) and we now have about 15 employees between the two Sandstorms.

SMR: Can you explain “gold streaming?”

NW: A gold stream is an agreement between Sandstorm and a gold mining company. At the core of the agreement, Sandstorm provides an upfront cash payment to a mining company that is in need of capital to build their mine.

In exchange for that upfront payment, Sandstorm receives the right to purchase a percentage of the gold produced from the mine, for the life of the mine, at a fixed price per ounce. Once the mine begins producing, Sandstorm purchases a ‘stream’ of gold on an ongoing basis.

The success of our business is dependent on our ability to complete streaming deals with companies that have excellent mining assets and strong management teams. We complete thorough due diligence to ensure that the mine has robust economics, that the management team has the ability to deliver on their www.skillings.net

PROFILES IN MINING

‘‘

The success of our business is dependent on our ability to complete streaming deals with companies that have excellent mining assets and strong management teams. We complete thorough due diligence to ensure that the mine has robust economics, that the management team has the ability to deliver on their plan and that there is exploration upside at the property.

plan and that there is exploration upside at the property.

SMR: Can you elaborate on the risks involved in this business?

NW: We view ourselves as a lower risk way to invest in the mining sector because we are not an operator and therefore do not have exposure to capital expenditures and operating expenditures beyond our initial upfront payment.

Having said that, if we complete a stream financing with a company that never gets their mine into production, Sandstorm would not make money.

To protect our investors from that risk, we have built cashflow guarantees and production guarantees into our contacts so that if the mine does not end up producing, we will receive our invested capital back.

How does Sandstorm’s business model differ from competitors?

NW: Sandstorm is often referred to as a royalty company and although there are similarities between royalty and streaming companies, they are not identical business models.

A royalty company is similar to Sandstorm in that both models function on the finance side of things and do not own and operate resource projects.

Where the royalty companies differ is that they finance early stage exploration projects with a small amount of seed capital in exchange for a royalty on future revenue which could be 10 or 20 years away.

Streaming companies like www.skillings.net

Sandstorm get involved in advanced staged development projects, put a larger amount of capital upfront, but have a shorter timeline to production and cash flow from the streaming transactions.

SMR: Tell us a little about Sandstorm Metals &Energy?

NW: Sandstorm Metals & Energy was spun-out of Sandstorm Gold in May 2010 and is deploying the streaming business model to a broad base of commodities in the base metals and energy sectors.

Since launching the company in December 2010, Sandstorm Metals & Energy has completed 6 commodity streams in copper, palladium, natural gas, oil and metallurgical coal.

What I like about the metals and energy side of the business is that the size and scope of the base metals, bulk commodities and energy sectors is much larger than the precious metals sector and there are significantly more deals to be done.

Having a diversified commodity base will allow us to use cash flowthat is being generated byhigh-priced commodities and buy streams from commodities that are at the lower end of the commodity price cycle.

SMR: How do you decide which mine holds potential and which does

not? Are you personally involved in shortlisting the mines you will work with?

NW: We have built a strong team of finance and technical experts to evaluate streaming opportunities.

Our corporate development team completes a thorough due diligence processwhich begins with adesktop analysis that evaluates the economics of the mine.

If the project is robust in its economics then we dig into the technical aspects and look for potential fatal flaw areas. I get involved once these assessments have been completed and we have reached advanced staged negotiations with the counterparty.

SMR: ‘Nations Cry’ is an outstanding philanthropic endeavor. Can you please share with us your reasons for founding a charitable organization which is focused on providing education to underprivileged children in Africa?

NW: I believe that life is short, and if it is lived solely in “the pursuit of happiness” it is wasted.

I believe we have an obligation to use our lives to make a difference and I believe the most significant difference that we can make is to educate people because education transforms lives permanently.

December 2012 SKILLINGS MINING REVIEW | 15

Mining Industry Shipping

Environmental Group Sues New York

By John Edward

T

he National Wildlife Federation sued New York state officials for easing the regulations to rid ship ballast water of invasive species which threaten the Great Lakes, the Hudson River and Long Island Sound.

The rules would have necessitated that cargo vessels clean ballast water to a level at least 100 times stricter than Environmental Protection Agency standards. Environmentalists and New York’s Department of Environmental Conservation assert that the EPA standards are inadequate to protect against invasive species that can potentially be introduced when ballast water is discharged prior to loading cargo.

DEC Commissioner Joe Martens had said in February that the state would strive towards stronger national limits instead of pursuing tougher requirements.

The agency said in a statement that it requires measures that are not part of the EPA or Coast Guard programs, such as requiring ships from foreign ports to implement both onboard ballast water treatment and ballast water exchange in the open ocean, “a practice that experts estimate will likely increase treatment effectiveness by a factor of 10.”

Shippers said that the previous, stronger New York rules would have effectively shut down international shipping in the Great Lakes since all international cargo ships must pass through New York waters to reach the lakes.

Traffic at the busy Port of New York and New Jersey would be affected as well.

The industry contends that no current technology can meet the stricter New York requirements.

Environmentalists counter the claim by adding that carmakers made the same argument against stricter fuel efficiency standards and then developed new technology when the standards forced them to.

Each state in the Great Lakes region was required to certify the EPA’s regulations for ballast water discharges in 16 | SKILLINGS MINING REVIEW December 2012

photo courtesy: http://www.chroniclenewspaper.com

2008. The EPA rules were a minimum standard; each state had authority to impose stricter rules.

New York did impose stronger rules, scheduled to take effect in August 2013. In February, DEC postponed that date to December 2013. Because they are tied to a federal permit that expires then, the state rules essentially are being canceled.

The standards limit the number of live organisms in ballast water, which

ships carry for stability in rough seas and dump after arriving in port to take on cargo.

Invasive species such as the zebra and quagga mussel, spiny water flea and round goby have been transported into Great Lakes waters in ship ballast.

Prevention and damage control from aquatic invasive species in the region costs more than $200 million a year.

As reported by Mary Esch for the Associated Press

www.skillings.net

COAL

Requirement Of Coal Increases As China And India Increases More Power Plants

By Katie Nathan

G

lobal demand for coal is anticipated to increase from 7.9 billion tons this year to 8.9 billion tons by 2016, with the bulk of new demand - about 700 million tons - coming from China, according to a 2009 Peabody Energy study Coal and the Commonwealth.

China is anticipated to add 240 gigawatts, the equivalent of joining around 160 new coal-fired plants to the 620 operating now, within four years.

During that period, India would increase another 70 gigawatts, via more than 46 plants.

“If you poke your head outside of the U.S., coal-fired plants are being built left and right,” said William Burns, an energy analyst with Johnson Rice in

www.skillings.net

New Orleans. “Coal is still the cheapest fuel source.”

Besides huge demand for thermal coal, which is used in power plants, use of metallurgical coal or coking coal, burned in blast furnaces, is also expected to increase 200 percent in China, to about 1.7 billion metric tons by 2016, as the country’s steel mills produce more steel for automobiles, skyscrapers, and export goods, included the Peabody study.

Coking coal would be increasingly in demand in other steel centers such as Brazil and India, edging coal companies to search for new reserves in places like Botswana, Mongolia and Mozambique.

In all, analysts anticipate coal to increase 50% by 2035.

December 2012 SKILLINGS MINING REVIEW | 17

Mining PEOPLE

Mining Industry People

By John Edward

Talvivaara Mining Co plc appointed Mr. Pekka Perä, its largest shareholder, as interim Chief Executive (CEO) less than seven months after he originally stood down. The company’s previous CEO Mr. Harri Natunen, who was appointed in April after Mr. Perä’s departure, will continue in other executive functions. The company has also appointed Non-Executive Director Mr. Tapani Järvinen, as Chairman. “Both appointments are of interim nature and in force until further notice and

at least until the company’s operations have been stabilized” Talvivaara said.

Clariant Mining has appointed Mr. Andrew Forward as Global Business Development Manager for the company’s emulsifiers for explosives business. Mr. Forward previously served as Regional Manager of Clariant Mining in South Asia Pacific.

He has served in various roles at Clariant for more than 30 years. In his new role, Mr. Forward will utilize his extensive expertise in the explosives industry to expand Clariant’s

Sources: www.sacbee.com, www.proactiveinvestors.com, www.equities.com

emulsions business globally.

Teck Resources Limited appointed Mr. Keith Stein as Vice President (Project Development); Mr. Bill Fleming as Vice President (Engineering, Projects and Business Improvement, Coal); Mr. Robin Sheremeta as Vice President (Operations, Coal); and Mr. Bob Kelly as (Vice President, Health & Safety). Mr. Stein’s appointment took effect October 1, 2012. Mr. Fleming, Mr. Sheremeta and Mr. Kelly will assume their new roles with effect from January 1, 2013.

In Memoriam D

an Norrgran, 59, Manager-Minerals & Materials Processing and Heavy Industries, passed away unexpectedly at St. Vincent Health Center in Erie on October 16, 2012. Dan was hired in 1985 as a Technical Representative in the Sales Department, coming from Anaconda Minerals in Tucson, Arizona, where he served as Technical Manager -Beneficiation Applications and Supervisor of the Mineral Beneficiation Laboratory.

He was active throughout Anaconda’s mining/milling operations – successfully reducing production costs by controlling operating expenses and increasing mineral recovery. Prior to that, he worked with the U.S. Bureau of Mines in Twin Cities, Minnesota as a Minerals Engineer. He participated in the engineering development of high intensity magnetic separators and developed a novel process for treating silvermanganese ores with high-intensity magnetics.

A native Minnesotan, he earned his BS degree in Physics from Hamline University in St. Paul, and an MS in

18 | SKILLINGS MINING REVIEW December 2012

Mineral Engineering at the University of Minnesota in Minneapolis, where the emphasis of his work was on the electrostatic and high intensity magnetic separation of paramagnetic minerals.

He then earned his MBA from Penn State University. He was a prolific writer, authoring dozens of technical papers on magnetic separation advancements which were published in professional trade journals around the world.

Dan was employed at Eriez for 27 years, most recently serving as Manager of the Minerals & Materials Processing Division, where he traveled extensively

worldwide in growing the company’s global equipment sales to the Mining, Coal Processing, Industrial Minerals and other related industries into Eriez’ largest served markets. He was a respected member of several professional associations including the Canadian Institute of Metallurgy, the International Minerals Association and the Society of Mining Engineers, where he served as National Committee Chairman.

In 2004, he received Eriez’ highest honor, Person of the Year, in recognition for “managing the Mineral Processing Division to its present key position within our Worldwide Operations.” Talented, intelligent and caring, Dan truly lived the inscription on today’s Special Recognition plaques, You make Eriez a better place for all of us.

He is survived by his wife, Susan, and son, Nathan. Cards may be sent to The Norrgran Family, 4435 Neptune Drive, Erie, PA 16506. Memorial Contributions may be sent to a local animal shelter of one’s choice or to St. Jude’s Children’s Hospital, 501 St. Jude Place, Memphis, TN 38105. www.skillings.net

Press Release

Researchers Tap Into CO2 Storage Potential Of Mine Waste VANCOUVER, CANADA -- It’s time to economically value the greenhouse gastrapping potential of mine waste and start making money from it, says mining engineer and geologist Michael Hitch of the University of British Columbia (UBC).

Hitch studies the value of mine waste rock for its CO2-sequestration potential, or “SP.” He says mining companies across Canada will, in future, be able to offset CO2 emissions with so-named “SP rock,” and within 25 years could even be selling emissions credits.

Digging, trucking and processing make mining an energy-intensive industry that emits greenhouse gases.

However, mine waste rock that is rich in the mineral magnesium silicate has an inherent ability to react with CO2 and chemically “fix” it in place as magnesium carbonate—an ability that can be greatly enhanced with some processing.

Hitch and his colleagues note that this capacity for CO2 fixation can be five to ten times greater than total greenhouse gas production from some mine operations. Nickel, diamond, copper, chromite, platinum, palladium, talc, and asbestos mines could all be contenders.

Some large mines, the researchers add, could fix 5 million tonnes or more of CO2 per year.

www.skillings.net

“I don’t like waste,” asserts Hitch. “I like to see efficient use of the resources.”

Instead of using just 1 per cent of the materials from a big mining pit, he explains, a company could receive value from the non-commodity rock. “All of a sudden this material starts having value, and this material starts taking on a position in the company’s cash flow as a byproduct,” says Hitch, adding, “It really kind of changes the dynamics of the mining operation.”

With the global price of carbon emissions credits expected to rise, SP rock could become even more valuable.

However, in order to achieve substantial CO2 sequestration in SP rock, the somewhat sluggish chemical reactions that naturally fix CO2 require a jump start.

Hitch is working on this problem alongside researchers Greg Dipple, team lead, and Ulrich Mayer, both of UBC’s Department of Earth, Ocean and Atmospheric Sciences, and Gordon Southam, with the University of Western Ontario’s Department of Earth Science.

The collaboration is being funded

by Carbon Management Canada, a Network of Centres of Excellence that funds research to produce the technology, knowledge, and human capacity

that will reduce carbon emissions in the fossil energy industry and in other largescale emitters.

Two of the team’s primary goals are to measure the rate of CO2 fixation in mine waste rock and tailings in a lab setting and to speed up the process.

Team members have already observed that CO2 fixation is greatly accelerated in mine tailings, presumably due mainly to the large surface area exposed and available to react after rocks are crushed into small particles.

Dipple’s lab reports that their previous research has demonstrated that CO2 is trapped in mineral precipitates at rates of up to 50,000 tonnes per year within tailings during mine operations, and continues to be sequestered after mine operations cease. Rates of fixation are limited by the dissolution of CO2 in water and one area of investigation involves increasing the concentration of CO2 supplied to a slurry similar in chemical composition to tailings process water. Results show a 200-fold rate of increase over atmospheric weathering of some minerals by increasing the concentration of CO2 in the air passed through the slurry to 10%.

For more information, visit www.cmc-nce.ca

December 2012 SKILLINGS MINING REVIEW | 19

social media MINING INDUSTRY PROFESSIONALS LinkedIN

Surface Mining or Open Pit Mining?

for complete articles,visit our website: www.skillings.net

Somebody has told me once...A mining engineer ‘can’ be a geologist, but a Geologist ‘can’t’ be a mining engineer...My dear geologist and mining engineer friends....need your comments. This month’s LinkedIn activity is all about questions and some wicked answers.

The mining industry is tapping information technology know-how as it tries to push down production costs Fabio Tiozzo

Subject Matter Expert: Planning, Scheduling and Execution Solutions for Manufacturing, Supply Chains and Services Paris Area, France

This I believe has to do with competitive advantage. It is therefore important to consider all factors, look at what systems could be automated, link them up and see how it turns out.

Theo Martei Akita HSE Supertinendent, Tongon Gold Mine COTE D’IVOIRE

Mining is a capital intensive industry that requires a lot of investment in equipment and in infrastructure. Thus, the first goal of these companies is to get the most out of their assets. While one year ago mining companies had long term contracts as the predominant part of their business, now they see a lot of spot cargos. It is a matter of delivering ‘on time’ the right mix and grade steel.

20 | SKILLINGS MINING REVIEW December 2012

Somebody has told me once...A mining engineer can be a geologist, but a Geologist can't be a mining engineer...My dear geologist and mining engineer friends.need your comments.

Nagendra Panda

Geologist at Tata Steel (Tata Sasol CTL Project) Bhubaneshwar Area, India

One saying here is that the prospector finds it, the miner digs it out and the geologist tells you how it got there in the first place.

Jeremy Peters. Principal Consultant at Snowden Mining Industry Consultants, Western Australia

Interesting discussions and a lot of worthwhile comments. Mining Engineers and Geologists work and live in different worlds but, as stated above, there are grey areas, where the two have to work together. As a geologist, I worked in several projects going from grass-roots exploration over the BFS up to preparing the terrain for mine construction. I met and worked together with good, professional and cooperative mining engineers as well as with some people who were not so great. The latter exist in every domain. All together most of what I experienced was good and pleasant too. I enjoyed it and I hope I can go one for many more years !!!.

Lucas Classens. Vice President Exploration at Sandspring Resources Ltd., Guyana

I have some problem with definition of surface mining and open pit mining. Can someone explain the difference between those two?

Katarzyna Pawlecka

Teaching and research asisstant at AGH University of Science and Technology Kraków Area, Poland

Surface miners are very similar to road planers like those seen repairing highway surfaces almost daily. They cut a thin layer from the exposed bed. So unless surface miners do something else that is all there is to surface mining. Open cast/ pit working involves blasting or excavating materials from vertical faces and collecting the material from the working floor, often by trucks or specialized conveyors.

Working floors are nearly always surrounded by exposed benches (walls) with the provision of exit ramps which are extensions of the haul road. In other words it is simple quarrying gone fancy because the minerals for mining are sometimes a bit more valuable than the basic building materials sought by quarrymen. Overburden removal comes into play around your part of the world, going east. Huge ponderous machines were built up and down the Baltic coast and put to work, stripping earth down to the lignite below.

John Gateley. Bulk Handling Professional at ConveyO’Wright.

West Java Province, Indonesia www.skillings.net

IRON ORE/ Press release

Ferrum Americas Mining Intersects 88.5m Grading At Cerro RojoIronOre Project

By Anna Grant

M

ineralization at Cerro Rojo occurs as a massive-banded hematitemagnetite iron formation overlying a Proterozoic basement sedimentary sequence.

Ferrum continues to focus on outlining iron ore resources which will be amenable to open pit mining.

Ferrum has engaged P&E Mining Consultants Inc to work in collaboration with Paul Pitman, P Geo, to prepare a NI 43-101 compliant resource estimate for the Cerro Rojo project.

A field visit was completed by a representative of P&E and the Company

anticipates receiving a final report early 2013.

Mintrex Pty Ltd, an Australian based metallurgical and process design engineering consultancy has been hired by Ferrum to perform iron ore beneficiation tests.

The first sample of drill core has been shipped to Mintrex as part of a comprehensive beneficiation program.

Final results are expected by the third quarter of 2013.

Sample preparation is being carried out at ALS Minerals lab in Oruro, Bolivia.

ALS is a multinational company which operates to ISO 9001 quality assurance

standards. All samples are HQ core and vary in length from 1.5 to 4 meter.

A split of up to 250 grams is taken and pulverized to better than 85% passing a 75 micron screen.

These pulps are sent to ALS Chemex Lima and grades are reported as total Fe%.

Assays are completed using the High Grade/Ores Method and XRF analysis.

The QA/QC program included the insertion of systematic standards, blanks and duplicate samples within every sample batch submitted to ALS. Reported by Ferrum Americas Mining Inc

Great Lakes Iron Ore Trade Off 3.6 Percent in October CLEVELAND—Iron ore shipments on the Great Lakes totaled 5.5 million tons in October, a decrease of 6 percent compared to September, and 3.6 percent below the level of a year ago. Shipments were, however, marginally ahead of October’s 5-year average.

Shipments from U.S. ports totaled 4.5 million tons, a decrease of 11.1 percent compared to a year ago.

Included in that total were 81,000 tons shipped to Québec City for final delivery overseas.

Loadings at Canadian ports jumped more than 60 percent to 950,000 tons.Through October the iron ore trade stands at 50 million tons, an increase of 2.5 percent compared to a year ago, and 14.6 percent better than the 5-year average for the January-October timeframe.

Shipments from U.S. ports are virtually tied with a year ago, and 14.6 percent ahead of their 5-year average. Cargos destined for Quebec City for transshipment overseas total 3.5 million tons through October.

Loadings at Canadian ports are up 23.3 percent compared to a year ago, and 14.3 percent ahead of their 5-year average.

Lake Carriers’ Association represents 17 American companies that operate 57 U.S.-flag vessels on the Great Lakes and carry the raw materials that drive the nation’s economy: iron ore and fluxstone for the steel industry, aggregate and cement for the construction industry, coal for power generation, as well as salt, sand and grain. Collectively, these vessels can transport more than 115 million tons of cargo per year. www.skillings.net

December 2012 SKILLINGS MINING REVIEW | 21

Press Release

Cliffs Natural Resources Board Elects New Director CLEVELAND - Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) announced today that its Board of Directors has elected Timothy W. Sullivan, 59, executive advisor of CCMP Capital Advisors LLC and former president and chief executive officer of Bucyrus International Inc. to Cliffs Board. The appointment is effective Jan. 1, 2013. With the addition of Mr. Sullivan, Cliffs’ Board will be comprised of a total of 11 directors.

Joseph Carrabba, Cliffs’ chairman, president and chief executive officer, said: “I am pleased with the appointment of Tim to Cliffs’ Board. His background and in-depth understanding of the global mining industry will be extremely beneficial to our board as we continue to execute our strategic growth plans in a challenging economic environment. Tim’s understanding of the importance of capital allocation will only add to his contributions to our

business.”

Mr. Sullivan began his business career in the mining industry when he joined Bucyrus, a global designer and manufacturer of mining equipment, in 1976 where he spent 19 years in positions of increasing managerial responsibility for the company. He was named vice president of sales and marketing in 1995. Mr. Sullivan was later promoted to executive vice president before pursuing an opportunity outside of Bucyrus when in 1999 he joined United Container as president and chief executive officer.

Within a year he was recruited back to Bucyrus as president, a position he held from 2000 to 2004, where he successfully transformed the company’s financial position. In 2004, Mr. Sullivan was named president, chief executive officer and a director of the company, a role he held until 2011 when Bucyrus

was acquired. Mr. Sullivan recently joined CCMP Capital Advisors LLC in 2012, a private equity firm after a 34 year career with Bucyrus International Inc. Mr. Sullivan received a Master of Business Administration from American Universityand a Bachelor of Science from Carroll University. Currently, he serves as director for Generac Holdings Inc., Aurora Health Care Inc., and The Northwestern Mutual Life Insurance Company.

About Cliffs Natural Resources Inc. Cliffs Natural Resources Inc. is an international mining and natural resources company. A member of the S&P 500 Index, the Company is a major global iron ore producer and a significant producer of high- and low-volatile metallurgical coal. Cliffs’ strategy is to continually achieve greater scale and diversification in the mining industry through a focus on serving the world’s largest and fastest growing steel markets.

Skillings Mining Review Mag

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5/24/12 10:40 AM

Atlas Copco Introduces New Range Of Electric Concrete Pokers A

three-model family of electronic Atlas Copco SMART concrete pokers has made its debut in the U.S. market. The 3rd generation re-design of the model 40, 48 and 56 SMART pokers has a streamlined aluminum housing that protects their built-in electronics with an overall weight reduction of 30 percent.

That the Atlas Copco SMART concrete pokers can be powered by common 120 volt supply gives them what the company has described as “plug and poke” operation and simplicity of control with a single on/off switch.

High centrifugal force, ranging from 360 pounds in the SMART 40 to over 1,030 pounds in the SMART 56, combines with stable speed and high amplitude to ensure good concrete vibration

www.skillings.net

with fewer dips.

The SMART poker’s variable frequency converter is built in, which protects against shock, overload and overheating.

Rapid acceleration to 12,000 vibrations per minute means voids are transported to the surface quickly. Light and maneuverable, the SMART poker comes with

32.8 feet of cable and 16.4 feet of hose provide ample reach at the jobsite. Special poker hose lengths are also available.

The SMART poker with be featured at the annual World of Concrete show to be held in the Las Vegas Convention Center Feb. 5 through 8. The Atlas Copco booth is C4255

December 2012 SKILLINGS MINING REVIEW | 23

STATISTICS

October 2012 Crude Steel Production

IRON ORE PRICE REPORT

By John Edward

NORTH AMERICAN MARKET (LTU)

World crude steel production for the 62 countries reporting to the World Steel Association (worldsteel) was 126 million tonnes (Mt) in October 2012, an increase of 1.3% compared to October 2011. The crude steel capacity utilisation ratio for the 62 countries in October 2012 declined to 76.5% from 77.7% in September 2012.

Compared to October 2011, it is 1.4 percentage points lower. The US produced 6.9 Mt of crude steel in October 2012, down by -3.3% on October 2011.

Brazil’s crude steel production for October 2012 was 3.2 Mt, an increase of 7.7% compared to October 2011.

Germany produced 3.7 Mt of crude steel in October 2012, a slight increase of 0.3% on October 2011. Italy’s crude steel production was 2.4 Mt, down by -10.4% compared to October 2011. France’s crude steel production was 1.3 Mt, a decrease of -7.2% on October 2011. Spain produced 1.1 Mt of crude steel, -15.6% lower than October 2011.Turkey’s crude steel production for October 2012 was 2.9 Mt, a decrease of -6.9% compared to October 2011.

China’s crude steel production for October 2012 was 59.1 Mt, up by 6.0% compared to October 2011. Elsewhere in Asia, Japan produced 8.8 Mt of crude steel in October 2012, a decrease of -6.7% compared to the same month last year.

Statistics based on World Steel Association Report released on November 20, 2012.

Company

Ore Type

Iron Unit

Cliffs Natural Resources Inc

Pellets, FOB Michigan Mines

Cliffs Natural Resources Inc

Pellets, FOB Minnesota Upper Lakes Port

Per Gross Ton Iron Content Per Ton at 64% Reporting Date

$2.07

$132.48

12/31/12

$1.64

$104.96

12/31/12

Source: CLIFFS NATURAL RESOURCES INC

Weekly U.S. Raw Steel Production by district In thousands of Net Tons – Source – American Iron and Steel Institute

Week Ending

District

11/17

North East Great Lakes Midwest Southern Western

11/10

11/3

10/27

201 206 174 168 633 642 628 593 259 264 258 237 611 545 561 594 88 89 86 87

U.S. Raw Steel Production Week Ending

In Thousands of Net Tons - Source - American Iron & Steel Institute Weekly Production Year-to-Date Production Production

Percent Change* Capability Utilization Rate

Production

Percent Change

Nov 17, 2012 1,792 2.6 72.5 86,349 .3.3 76.0 Previous Year 1,809 -0.9 73.0 83,628 .74.4 Nov 10, 2012 1,746 1.7 70.7 84,557 .3.3 76.0 Previous Year 1,809 -3.5 73.0 81,819 .74.4 Nov 3, 2012 1,707 1.7 69.1 82,811 .3.5 76.2 Previous Year 1,793 -4.8 72.4 80,011 .74.5 Oct 27, 2012 1,679 -2.5 67.9 81,104 .3.7 76.3 Previous Year 1,781 -5.7 71.9 78,218 .74.5 * 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.

Crude Steel Production, august 2012 Monthly Crude Steel Production in the 62 Countries included in the report, in thousands of metric tons Source – World Steel Association

Country

October 2012

September 2012

October 2011

% change October– 12/11

Canada............................... 1,125 e.... 1,090 e...........1,093.....................2.9 Cuba........................................25 e.............26................20...................25.0 El Salvador................................10 e...............9..................9...................11.1 Guatemala...............................30 e.............28................43................. -30.2 Mexico................................ 1,600 e.... 1,460 e...........1,542.....................3.8 Trinidad and Tobago................55 e.............52................43...................27.5 United States......................... 6,918....... 7,015...........7,156....................-3.3 Total - North America......9,763....... 9,680......... 9,906..................-1.4 Argentina................................. 414...........158..............506................. -18.2 Brazil...................................... 3,154....... 2,848...........2,928.....................7.7 Chile...................................... 140 e...........136..............113...................23.9 Colombia.............................. 105 e...........102..............100.....................5.0 Ecuador....................................50 e.............49................45...................11.1 Paraguay....................................5 e...............4..................4...................25.0 Peru....................................... 105 e...........102................84...................25.0 Uruguay...................................15 e.............13..................8...................87.5 Venezuela.............................. 195 e...........188..............208....................-6.3 Total - South America.....4,183....... 3,600......... 3,996...................4.7 Algeria......................................25 e..........25 e................54................. -53.3

Country

September 2012

October 2011

% change October– 12/11

Egypt..................................... 545 e...........526..............571....................-4.6 Iran........................................ 1,166.... 1,090 e...........1,025...................13.8 Morocco...................................50 e..........50 e................69................. -27.0 Saudi Arabia............................. 467...........410..............426.....................9.6 South Africa.......................... 580 e........560 e..............582....................-0.3 Total - Africa /Middle East....2,834....... 2,661......... 2,726...................4.0 China ..................................59,096.....57,950........ 55,739.....................6.0 India.................................... 6,510 e.... 6,155 e...........6,157.....................5.7 Japan..................................... 8,841....... 8,798...........9,479....................-6.7 South Korea....................... 5,790 e....... 5,602...........6,087....................-4.9 Taiwan, China.................... 1,490 e.... 1,780 e...........2,002................. -25.6 Total - Asia......................81,727.....80,285....... 79,463...................2.8 Australia................................... 428...........430..............412.....................3.8 New Zealand...............................76.............81................61...................24.5 Total - Oceania.................... 504.......... 511............ 473...................6.5 Total-EuropeanUnion(27).......14,224.....14,105....... 15,170..................-6.2 Total - Other Europe........2,996....... 3,197......... 3,323..................-9.8 Total - C.I.S. (6)..................9,915....... 9,597......... 9,495...................4.4 Total (62 countries)......126,145...123,637.....124,552...................1.3

The 62 countries included in this table accounted for approximately 98% of total world crude steel production in 2011.

24 | SKILLINGS MINING REVIEW December 2012

October 2012

e – estimate r - revised

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Preliminary USGS Iron Ore Statistics For June 2012

By John Edward

According to the U.S. Geological Survey (USGS) report by Iron Ore Commodity Specialist John D. Jorgenson, U.S. mine production of iron ore in June 2012 was 4.20 million metric tons (Mt), a 5% decrease from that of May. Production was 140,000 metric tons (t) on a daily average basis, slightly less than that of May and 7% less than that of June 2011. Average daily production in June 2012 was 3,000 t less than that of May. U.S. iron ore shipments were 5.27 Mt in June 2012, 8% less than in May. Shipments were 176,000 t on a daily average basis, the same as those of June 2011. Mine stocks at the end of June 2012 were 1.07 Mt less than those held in May, a 17% decrease. U.S. exports of iron ore were 1.33 Mt, and U.S. imports were 253,000 t.

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December 2012 SKILLINGS MINING REVIEW | 25

AnNual INDEX

2012 ANNUAL INDEX OF SKILLINGS MINING REVIEW Perusing through our 2012 annual index will give the reader a good retrospective of 2012. New headings reflect trends unique to what has been an extremely interesting year. There is an increasing emphasis on sustainability - clean technologies, waste water management, re-vegetation and adherence to legislation.

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Coal Analysts: India More Important Than China For US Coal Export Growth . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 13 Clean Coal And Power Companies. . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 11 Coal Demand Heats Up In Pennsylvania Region . . . . . . . . . . . . . . . February. . . . . 22 Coal Exports To Reach 113 Million Tons In 2012 . . . . . . . . . . . . . . October. . . . . 16 Coal Royalty Incentive For Navajo And More. . . . . . . . . . . . . . . . . . February. . . . . 13 DOE Funds B&W For Carbon Capture Research. . . . . . . . . . . . . . . . January . . . . . 14 EPA To Hold Kentucky Coal Mining Hearings . . . . . . . . . . . . . . . . . May. . . . . . . . 18 IBISWorld Releases Market Research Report On Coal Mining In The US Industry. . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 23 Is Coal Bed Methane Sans Environmental Concerns, A Low Cost Mining Opportunity?. . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 23 More US Coal Plants To Retire Due To Green Rules – Study. . . . . . .November . . . 29 Sandstorm Metals & Energy Releases Fourth Quarter Results . . . . . May. . . . . . . . . 5 US Coal Use Declining Rapidly As Utilities Choose Gas. . . . . . . . . . July . . . . . . . . . 5 West Virginia Coal Industry Under Legal Scrutiny . . . . . . . . . . . . . . June. . . . . . . . 33

Conference Review

Impressions Of The ISEE Convention 2012 . . . . . . . . . . . . . . . . . . . March . . . . . . 22 Impressions Of The ISEE Convention 2012 – Part II. . . . . . . . . . . . . April. . . . . . . 12

Copper

Copper Mining And Northern Minnesota, To Be Or Not To Be?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 10 EBRD Funds First Privately Owned Copper Mine In Mongolia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 29 EPA Report Raises Concern Over Potential Pebble Mine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 28 Feasibility Study Of Copperwood Copper Project. . . . . . . . . . . . . . . March . . . . . . 13 Global Copper Market Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 18 Grupo Mexico On An Expansion To Increase Its Current Copper Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 10 Kennecott Eagle Mine Gets Approval For Mining Copper And Nickel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 23 Metso Receives An Order For The Supply Of Mill Liners Worth Around $1 Million. . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 10 Rambler Signs Off-take Agreement From Ming. . . . . . . . . . . . . . . . February. . . . . 23 Rio Tinto Opens World’s First Training Centre For Specialist Underground Mining Method . . . . . . . . . . . . . . . . . . October. . . . . 10 World’s Next Frontier - Seabed Mining. . . . . . . . . . . . . . . . . . . . . . April. . . . . . . . 9

Featured Articles

Computer Equipment/Mobile Analytical: Mining In The Digital Age. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 14 Differences In Mining For Different Geology: Challenges To Coal Mining In The Midwest. . . . . . . . . . . . . . . . . . . October. . . . . 14 Global Iron Ore Prices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . . 6 Global Iron Ore Production Report. . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 16 Human Resources/Recruiting Skilled Workers . . . . . . . . . . . . . . . . . April. . . . . . . 16 Iron Mining Management Technology. . . . . . . . . . . . . . . . . . . . . . . September. . . . 6 Iron Ore Exploration Around The World. . . . . . . . . . . . . . . . . . . . . . February. . . . . . 6 Iron Ore Processing: Test Undertaken To Extract Iron From Sand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . . 6 Mergers And Acquisitions In The Iron Ore Sector. . . . . . . . . . . . . . . May. . . . . . . . . 6 New Technology At Work In Mining Equipment 26 | SKILLINGS MINING REVIEW December 2012

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- Up Next: Rio Tinto’s Mine Of The Future. . . . . . . . . . . . . . . . . . . . January . . . . . 20 North American Iron Ore Report. . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . . 6 One Hundred Years And Going Strong: Skillings Mining Review is a Centenarian Now. . . . . . . . . . . . . . . . January . . . . . . 6 Open Cut Mines: Effective planning required for Restoration. . . . . . August. . . . . . . 6 Progress on New Iron Ore Projects. . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . . 6 Safety Innovations - Rio Tinto Blazes New Ground With “Mine Of The Future”. . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 14 The Mining Industry Of The Future Why Education Continues To Play An Important Role . . . . . . . . . . . March . . . . . . 18 The Net: Training Equipment Operators Using Internet . . . . . . . . . . February. . . . . 20 The Role Of Mineral Industry Advisors: Ernest Young Reports Of Business Risks Of Mining And Metals 2012–2013. . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . . 6 Troubled Waters Ahead: Climate Change And Shipping. . . . . . . . . . March . . . . . . . 6 Wear Parts: Keeping Iron Mines Productive. . . . . . . . . . . . . . . . . . . August. . . . . . 14 What Is Ahead For Iron Ore In 2012. . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 10

Gold

Agbaou Project, A Globally Competitive Gold Project . . . . . . . . . . . July . . . . . . . . 10 Expect Gold To Peak In 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 21 Firm Looking At Rerouting US 95 In Nevada To Reach Gold . . . . . . January . . . . . 17 Gold And Diamond Mining Permits Suspended In Guyana. . . . . . . . August. . . . . . 10 Gold Loses Its Glitter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 12 Great Basin Gold Suspends Operations At Its Burnstone Mine. . . . . October. . . . . 10 Lake Shore Gold Confirms Large-Scale Resource For Timmins West Mine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 25 Rusoro Expects Venezuela Gold Takeover As Talks Fail. . . . . . . . . . . April. . . . . . . . 9 Shareholders Approve Takeover Of Avion Gold By Endeavour Mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . . 8 Silver Wheaton Closes HudBay Deal. . . . . . . . . . . . . . . . . . . . . . . . September. . . 10 WGC Claim Raises Eyebrows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 33

Iron Ore

Article. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date. . . . . . Page $194M For Alderon From Chinese Firm. . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 19 2011– A Challenging Year For Iron Ore Producers. . . . . . . . . . . . . . January . . . . . 15 Amazon Iron Ore Mining Project Okayed By Brazil . . . . . . . . . . . . . August. . . . . . 12 Anglo American Considering Selling Amapa Iron Ore In Northern Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . . 9 Another £370,000 For Strategic Minerals. . . . . . . . . . . . . . . . . . . . February. . . . . . 5 ArcelorMittal To Build Iron Ore Mine In Canada Close To Arctic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 11 Australian Mine Faces Finance Delays. . . . . . . . . . . . . . . . . . . . . . .August. . . . . . 11 BC Iron, Cleveland Mining Strike Brazil Alliance . . . . . . . . . . . . . . . October. . . . . 12 Canadian Teck Resources Displays Renewed Interest In The Iron Ore Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 28 Centrex Boosts Iron Ore Reserves In New Australia Frontier . . . . . . July . . . . . . . . 11 Century Iron Completes Earn-In Of An Additional 5% Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .July . . . . . . . . 12 Cliff Sees Profit In Emerging Markets. . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 20 Cliffs Natural Resources Reports Dip In Profits As A Result Of Iron Ore. . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 34 Essar Steel Interested In 20 mt Iron Ore Pellet Capacity In A Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 24 Ferrexpo Flying High Despite Economic Fluctuations. . . . . . . . . . . . April. . . . . . . . 5 www.skillings.net

ARTICLE

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Fortescue Metals Resumes Operation In Pilbara . . . . . . . . . . . . . . . February. . . . . 26 Fortescue Plunges On Debt Fears. . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . 11 Gindalbie Seeks Buyer For Australia Iron Ore Project. . . . . . . . . . . . September. . . 13 Golden Dory Resources Increases Iron Ore Stake In Labrador . . . . . June. . . . . . . . . 9 High-Risk Regions Fair Game For Miners . . . . . . . . . . . . . . . . . . . . April. . . . . . . . 5 Iron Ore And Coking Coal Prices Tumble. . . . . . . . . . . . . . . . . . . . . September. . . 17 Iron Ore Mining Market - 2020 Forecasts For Asia-Pacific & North America Regions. . . . . . . . . . . . . . . . . . . . . . . September. . . 12 Iron Ore Price Drop Seen Putting Canada Projects In Doubt By Labrador. . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 24 Iron Ore Will Take Time To recover As China Slows . . . . . . . . . . . . . November . . . 25 Iron-Ore Fever Catches On. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 15 Is Alderon A Takeover Target?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . . 9 Is Iron Ore Rusting?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . 11 Is The Iron Ore Gold Age Coming To An End?. . . . . . . . . . . . . . . . . July . . . . . . . . 13 Kumba Inks Liberia Iron-ore JV With Jonah Capital. . . . . . . . . . . . . October. . . . . 13 Labrador Iron Mines Starts 2012 Production Season First Train Shipments To Port Of Sept Iles . . . . . . . . . . . . . . May. . . . . . . . . 5 Labrador Iron Mines To Collaborate With CN To Study A New Multi-User Rail Line And Port Terminal Facility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 11 Labrador Iron Ore Royalty Reports Profit Down In 2011 . . . . . . . . . April. . . . . . . 18 Labrador Iron Provides Update On Schefferville Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 13 Labrador Iron’s Q3 Loss Widens As A Result Of Start-Up Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . . 5 Labrador’s Iron Ore Goes Global . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 12 London Mining JV Partner Files $650m Counterclaim. . . . . . . . . . . February. . . . . 19 Marrying Cash-strapped Explorers And Asian Partners. . . . . . . . . . . April. . . . . . . 10 Mining Bill Hearing In Hurley. . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 11 New Iron Mine Proposed For Western Labrador . . . . . . . . . . . . . . . November . . . 24 New Study Says Brazil About To Flood Export Markets With Iron Ore. . . . . . . . . . . . . . . . . . . . . . . . November . . . 25 North American Demand For Steel To Boost Iron Ore Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 12 North American Mining Companies Penetrating Australia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 11 Nunavut Labrador To Become A World Class Iron Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . . 8 Old Pits - New Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 16 Partner For Fortescue To Develop Magnetite Resource. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 23 Ridgemont To Acquire IronOne Inc. And Expand Into The Labrador Trough. . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 22 Rio Reaps Reward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 11 Rogue Iron Ore Announces Its Second Set Of Results From Its Radio Hill Iron Ore Project . . . . . . . . . . . . . March . . . . . . 14 Takeover Bid Rebuffed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 28 Update On Duncan Lake Iron Ore Project. . . . . . . . . . . . . . . . . . . . January . . . . . 15 Vale Cuts Budgets As A Result Of Iron Ore Collapse. . . . . . . . . . . . October. . . . . 12 Vale’s Iron Ore Pellets Find Increased Demand In Asia. . . . . . . . . . . April. . . . . . . 18 Vale’s Profits Decline As A Result of Troubles In Europe. . . . . . . . . . March . . . . . . 24 Value Trap Of Cliffs Natural Resources . . . . . . . . . . . . . . . . . . . . . . November . . . 27

Iron Ore Price Report

Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 18 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 18 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 16 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 14 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 12 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 30 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 24 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 22 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 22 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . 22 Iron Ore Price Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 30

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Mining Finance

$6.2 Bln Outlined For Cobre Panama Development Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 34 Acquisiton Of Royalty Option On Spring Valley Gold Deposit, Nevada, Along With A Cash Infusion On The Cards For Terraco Gold. . . . . . . . . . . . . . . . . January . . . . . 13 Advertising Campaign Against The Gillard Government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . . 9 Astra Resources Wins Milestone $750m Project. . . . . . . . . . . . . . . February. . . . . 14 Australian Miners Freeze Pipeline Of Projects. . . . . . . . . . . . . . . . . October. . . . . . 5 Canada Leads M&A In Mining Sector. . . . . . . . . . . . . . . . . . . . . . . November . . . . 5 Canada’s Largest Infrastructure Project. . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 26 Canada’s Mining Industry Smiling - Post-Budget. . . . . . . . . . . . . . . May. . . . . . . . 19 Canadian Market Promising For The Future. . . . . . . . . . . . . . . . . . . April. . . . . . . 19 Capital Financial Global To Raise $3,000,000 For St. Louis Gold Mine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 13 Crosshair Maps Out Its Return To Labrador. . . . . . . . . . . . . . . . . . . June. . . . . . . . 29 Emgold Seeks Second Round Of Funding. . . . . . . . . . . . . . . . . . . . January . . . . . 13 Friedland Plans $300m-plus Ivanplats IPO On TSX . . . . . . . . . . . . . October. . . . . . 5 Gold Coast Mining To Acquire Gold Star Mine Claims. . . . . . . . . . . March . . . . . . . 9 Guerrero Exploration Announces $250,000 Financing. . . . . . . . . . . July . . . . . . . . 14 HudBay Gets US$750-million Financing From Silver Wheaton For Constancia. . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . . 5 Miners Look For Innovative Financing In The Face Of Uncertainty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 21 Mining Affects Canada’s Economy. . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 27 Mining Program Could Return To The University Of Minnesota. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 15 Mining Worries Sparked RBA Rate Cut. . . . . . . . . . . . . . . . . . . . . . November . . . . 5 New Iron Ore Mining Projects In Brazil To Boost Output By 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . . 5 Opposition For Proposed Peat Mine. . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 16 Pacific Wildcat Resources Seeks Funding To Fuel Exploration Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 23 Thompson Creek May Need More Cash To Finish British Columbia Copper Mine: US Iinvestment Bank Dahlman Rose . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . . 5 Two Miners To Bank On In 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 15 Wallbridge Mining’s Plans For 2012. . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 23 West Kirkland Mining Finds Surface Gold At 12 Mile Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . . 5 Wisconsin Mining Bill Stuck In Senate . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 23

Mining Industry People

Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 16 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 16 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 13 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 11 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 16 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 27 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 22 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 20 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 20 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . 20 Mining Industry People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 28

Mining Industry Professionals LinkedIn

Mining Industry Professionals LinkedIn. . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 20 Mining Industry Professionals LinkedIn. . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 20 Mining Industry Professionals LinkedIn. . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 32 Mining Industry Professionals LinkedIn. . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 26 Social Media Mining Industry Professionals LinkedIn. . . . . . . . . . . . August. . . . . . 24 Social Media Mining Industry Professionals LinkedIn. . . . . . . . . . . . September. . . 24 Social Media Mining Industry Professionals LinkedIn. . . . . . . . . . . . October. . . . . 24 Social Media Mining Industry Professionals LinkedIn. . . . . . . . . . . . November . . . 32

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AnNual INDEX ARTICLE

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Mining Industry Safety

Alpha Foundation Aims For Big Mine Safety Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 35 Arch Coal’s Dugout Canyon And Castle Valley Prep Plant Bags Three Awards . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 16 Department Of Labor’s “Final Rule” Sets Safety Standards For Underground Coal Mines . . . . . . . . . . . . September. . . 16 Impact Inspections Catch Mine Safety Violators . . . . . . . . . . . . . . . January . . . . . . 5 Industrial Accident At Mesabi Nugget. . . . . . . . . . . . . . . . . . . . . . . February. . . . . 24 Judge ‘Outraged’ At Outcome Of Utah Mine Collapse. . . . . . . . . . . April. . . . . . . 21 Life Saving Mobile Mine Gas Laboratory. . . . . . . . . . . . . . . . . . . . . March . . . . . . 12 Peabody Energy Endorses US Mining Industry’s CORESafety System . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 10 Safety Of Acid-injection Mining Technique Debated. . . . . . . . . . . . . October. . . . . 17 Sustainability: Responsible Mining. . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 19 Three Experts To Look Into Mine Safety Improvements . . . . . . . . . . June. . . . . . . . . 8 Tomblin’s Mixed Bag Of Mine Safety Reforms. . . . . . . . . . . . . . . . . February. . . . . 12

Mining Industry Shipping

US Coast Guard Proceeds With Ice Breaking Operations In Western Great Lakes . . . . . . . . . . . . . . . . . January . . . . . 19 Drop In Lake Erie Water Level Raises Concerns. . . . . . . . . . . . . . . . November . . . 26 Great Lakes Dredge And Dock Orders ATB-Concept Dredging Barge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 19 Greater Emphasis On Dredging Needed. . . . . . . . . . . . . . . . . . . . . August. . . . . . 18 Lake Carrier’s Association Releases Shipping Figures For 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 14 Laker Traffic Up In January. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 18 Minnesota Lakes Under Threat From Invasive Species. . . . . . . . . . . February. . . . . 17 Peninsula Harbour Sediment Capping Project To Begin In May 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 26 Preview Of The Upcoming Shipping Season . . . . . . . . . . . . . . . . . . April. . . . . . . . 8 Shipping Company Invests $500 Million In New Ships . . . . . . . . . . March . . . . . . 10 U.S. And Canada Sign Amended Great Lakes Water Quality Agreement . . . . . . . . . . . . . . . . . . . . . . October. . . . . 19 Vale In The Process Of Soothing Relations With China. . . . . . . . . . . July . . . . . . . . 20 Valemax Set To Enter Chinese Ports. . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 10

Mining Investments

Mining Automation Attracts Significant Mining Investment. . . . . . . June. . . . . . . . 35 New Mining Law In Wisconsin. . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 24 Rio Tinto Forays Into Indian Market With $US2bn Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 19

Mining Marketplace

New Chinese Online Iron Ore Mining Trading Platform. . . . . . . . . . March . . . . . . . 9

Mining Matters

Article. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date. . . . . . Page Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 24 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 24 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . 28 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 22 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 26 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 35 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 28 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 26 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 26 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . 26 Mining Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 34

Mining Policy and Law

New Mining Law Of Honduras. . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . . . . . 5

ARTICLE

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Mining Stocks

Miners Drag Shares Down. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 22 SPDR S&P Metals And Mining ETF Awaits Growth In Global Economy Activity . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 11

Mining Supply Chain

Article. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Date. . . . . . Page Anglo American Rides The Technology Wave With BT . . . . . . . . . . . May. . . . . . . . 16 GRT Introduces Road Stabilizing Technology For Safer Roads. . . . . . August. . . . . . 20 Triple Point Technology Expands Its Services With Qmastor. . . . . . . February. . . . . . 9

Non-Ferrous Metals

Alcoa Expands Into Used Beverage Can Recycling With Evermore. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 18 Canada’s First Sea Floor Mine Finds Its Customer In China. . . . . . . June. . . . . . . . . 5 China Mining Company On The M&A Path On Fluorite And Barite. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . 13 Duluth Embarks On Feasibility Study For Monster Mining Project In Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . . . . 17 Expected Global Aluminum Market In 2012. . . . . . . . . . . . . . . . . . March . . . . . . 10 Glencore Xstrata To Hold 11pct Of Global Zinc Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 27 India’s Aditya Birla Moves Ahead With Its Biggest Greenfield Project In Aluminum. . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 19 Platinum Price Expected To Increase More Than Gold. . . . . . . . . . . October. . . . . 18 Strategic Alliance In Non-Ferrous Metal Recovery And Recycling Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . . . . 11 Supply Of Zinc Likely To Face Reduction With Mines Closure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 21 US Metal Powder Set To Grow At 6.3% Per Annum . . . . . . . . . . . . January . . . . . 14

Press Release

ABB Wins $100 Million Power Orders To Boost Production At Rio Tinto Mines In Australia. . . . . . . . . . . . . . .May. . . . . . . . 27 AIST Specialty Conference: Call For Papers. . . . . . . . . . . . . . . . . . . March . . . . . . 24 Ambre Energy Selects Ventyx Ellipse 8 In $2M Deal . . . . . . . . . . . . June. . . . . . . . 31 ASGCO Armorite Wear Liners - Protection For Extreme Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . 19 Atlas Copco Ranked Number 10 Among 2012 Global 100 Most Sustainable Companies. . . . . . . . . . . . . . . . . . . . May. . . . . . . . 13 Canada Steamship Lines Orders Two New Bulkers As Part Of Fleet Expansion. . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . . . . 29 Coal Gasification Facility Commissioned In Laramie . . . . . . . . . . . . March . . . . . . 12 Global Petroleum Show 2012 Returns To Calgary Bigger Than Ever. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 29 Great Lakes Iron Ore Trade Up 8 Percent In November . . . . . . . . . . January . . . . . . 5 Jadco Manufacturing Signs Quarry Supply & Service as Distributor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 23 ME Elecmetal To Build Specialty Steel Casting Foundry In China. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 31 Measurement Devices, LLC Strengthens Technical Services Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . . 9 Modular Attains Microsoft Gold-Level Partner Status. . . . . . . . . . . .October. . . . . 25 Modular To Support Rollout Of Komatsu Autonomous Deployment At Rio Tinto . . . . . . . . . . . . . . . . . . . . . . January . . . . . . 9 Outotec Cooling Towers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . . . . . 5 Planetary Resources, Inc. Announces Agreement With Virgin Galactic For Payload Services. . . . . . . . . . . . . . . . . . . . September. . . 25 U.S.-Flag Lakers’ Cargo Down Slightly In March. . . . . . . . . . . . . . . May. . . . . . . . 17 U.S.-Flag Lakes Float Down 8.6 Percent In August . . . . . . . . . . . . . October. . . . . 25 Union Pacific Railroad Named North American SupplierOf The Year By Newmont Mining Corporation. . . . . . . . . . . February. . . . . . 8

Profiles in Mining

Arvind Singh, CEO of Utopia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . . . . 21 Christopher Gale - Managing Director of Latin Resources. . . . . . . . November . . . 33 28 | SKILLINGS MINING REVIEW December 2012

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AnNual INDEX/ Press release ARTICLE

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PAGE

Dan McGroarty, President of the American Resources Policy Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September. . . 21 Doug Connell - President and CEO, Barr Engineering Co. . . . . . . . . August. . . . . . 21 Interview: Eric Anderson. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .July . . . . . . . . 23

Statistics

Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . 18, 19 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . February. . 18, 19 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . March . . . 16, 17 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April. . . . 14, 15 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . May. . . . . 12, 13 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . June. . . . . 30, 31 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July . . . . . 24, 25 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . 22, 23 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . September22, 23 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . October. . 22, 23 Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November.30, 31

ARTICLE

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Steel

ArcelorMittal Sells Skyline To Nucor. . . . . . . . . . . . . . . . . . . . . . . . June. . . . . . . . 27 Canadian Candidate Calls For Restrictions On “Foreign Predators”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . January . . . . . 26 Domestic Steel Makers Bullish Yet Concerned. . . . . . . . . . . . . . . . . May. . . . . . . . 11 Expect A Record High In Steel Making In 2012. . . . . . . . . . . . . . . . June. . . . . . . . 33 Gerdau’s St. Paul Steel Mill, Redefining The Way To Do Business Steel Industry Leads. . . . . . . . . . . . . . . . . . . . July . . . . . . . . . 9 India Expected To Increase Its Steel Imports. . . . . . . . . . . . . . . . . . October. . . . . . 9 Modernization Of Nucor Corp Manufacturing Facility . . . . . . . . . . . March . . . . . . 26 Nippon Steel To Build Mexican Steel Plant. . . . . . . . . . . . . . . . . . . September. . . . 9 Optimistic Outlook In Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . August. . . . . . . 9 P&H Joy Mining Investing $25 Million In West Bengal. . . . . . . . . . .February. . . . . 11 Steel Industry Leads Manufacturing Out Of Recession. . . . . . . . . . . May. . . . . . . . 19 ThyssenKrupp Inches Closer To Sale Of Stainless Steel Unit. . . . . . . February. . . . . 10 ThyssenKrupp Sale: U.S. Steel, Others Considering A Bid For Calvert Mill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November . . . 28 US Steel’s First Quarter Results To Perform Better Than Expected. . . April. . . . . . . 19

JDN Hoists Provide 200 Ton Handling Capacity On Offshore Rig

F

our J D Neuhaus type EH50 air operated monorail hoists have been supplied and mounted by Westcon Løfteteknikk AS of Bergen to the Maersk offshore rig Guardian.

These products have been specified for the synchronized lifting and handling of an 18.3/4” 15,000psi BOP unit before and after drilling operations. Two hoists are each mounted on twin parallel overhead rails, with each hoist providing 50 ton load and 20 meter lift capacities for between deck operations.

Removable connector bars have also been supplied for fitting between paired hoists on the individual rails to maintain a fixed working distance of 4060mm between the load hook centers.

With the two sets of hoists operating together, a combined lift capacity of 200 tons is made available. The minimum horizontal travel distance of the trolleys with the connector bars fitted is 14.81 meters.

The maximum available

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free travel without the connector bars in place is 18 meters, with the travel distance limited by pneumatic end switches mounted on the hoist trolleys.

Synchronized operation of all linear movement and lifting operations of individual, paired or all the four hoists when used in conjunction, is provided with the F type multi-function pendant controllers also supplied by JDN. These tough, ergonomically designed controllers are suitable for the outdoor, heavy-duty operations that can be experienced offshore.

A main air emergency stop together with load monitoring device is incorporated in the controllers.

The two overhead beams are 23 meters in length and also carry twin energy chain power supplies, with each power chain comprising two x 1” diameter air supply hoses.

The hoists provided are part of a range of well-proven JDN monorail hoists with individual lift capacities from

10 to 115 tons.

Westcon Løfteteknikk AS is an authorized Norwegian sole importer of J D Neuhaus

lifting and handling equipment.

For more information, visit www.jdngroup.com

December 2012 SKILLINGS MINING REVIEW | 29

mining Matters/ Advertising Index

Mining Matters Announcement ABB To Improve Energy Efficiency For Several LKAB Mines In Sweden

ABB (www.abb.com) recently won an order to deliver an energy management system to Swedish mining company LKAB that will optimize energy use at its Kiruna and Malmberget underground iron ore mines, and its newest Svappavaara open pit mine.

All three mine operations, located in Northern Sweden, extract and process the iron ore on site; the processed ore is then used in a variety of steel products. ABB’s award-winning cpmPlus Energy Manager will improve the energy efficiency of the mines, reduce their carbon footprint and lower their overall energy costs.

Disclaimer: While every effort has been made to ensure the accuracy of the information supplied herein, Skillings Mining Review cannot be held responsible for any errors or omissions. Unless otherwise indicated, opinions expressed herein are those of the author of the page and do not necessarily represent the corporate views of Skillings Mining Review.

reach a deal on the federal budget and drove stocks Monday to their biggest gain in two months. A pair of strong corporate earnings reports also helped.

reason the layoffs are necessary.

Mining Investments

A new survey of 21 New South Wales mining companies has revealed the industry injects more than $4.6 billion in direct spending in the Hunter region.The economic survey shows the industry generated over $9 billion in wages and spending across the state.

Uncertainties in the mining industry, have resulted in project delays that have trimmed investments by nearly half. Mines and Geosciences Bureau Director Leo Jasareno says mining investments fell by 48% to $160 million, from the $309.31 million during the same period last year.

Mining Market Place BHP Billiton Iron Ore Mining Stifled By Imposed Costs

FORMER BHP Billiton chief executive Brian Gilbertson has warned that Australia’s highcost environment and cumbersome regulatory process is making it difficult to get new iron ore projects off the ground. www.bhpbilliton.com

Mining Stocks The stock market finally shook its post-election slump.

Investors seized on hope that Washington will

Markets Live: Miners pull shares down

Australian shares were dragged down by local mining and banking shares and disappointing US corporate earnings on Wall St as investors scrambled for any positive economic indicators ahead of US GDP data due later today.

Mining Policy & Law Murray Energy—the nation’s largest privately owned coal mining company—announced it was laying off more than 160 workers in response to the reelection of President Barrack Obama. The company cites the Obama administration’s so-called war on coal as the

Advertising Index Anixter................................................. 12 AZCON Corporation............................. 13 Barr Engineering.................................. 17 CR Meyer............................................. 13 Electric Power Door.............................. 22 Eloranta & Associates........................... 23 Hanft Fride........................................... 22 Global Minerals Engineering................. 15 Golder Associates................................. 29 Hallett Dock Company.......................... 25 30 | SKILLINGS MINING REVIEW December 2012

Bloomberg Businessweek

Mining Supply Chain

Rio Tinto RIO Tinto will continue to cut costs at its Australian mining business and faces a “complex and volatile” operating environment for the foreseeable future. It also anticipates a long-term reduction in demand for raw materials from China as its economy matures. www.riotinto.com

Vale SA Vale SA, the world’s largest iron-ore producer, won’t pay more than the 1.41 billion reais ($682 million) already provisioned to settle a royalties dispute, Chief Executive Officer Murilo Ferreira said. Rio de Janeiro-based Vale expects to announce the settlement with the Brazilian government in the coming weeks. www.vale.com

Skillings Mining Review is supported by these leading providers of materials, services and supplies to the mining industry. Please patronize them whenever possible and let them know you saw their advertisement in Skillings.

Hydro Klean......................................... 19 Idea Drilling LLC................................... 13 International Society of Explosive Engineers...23 Jasper Engineering............................... 23 Krech Ojard.......................................... 17 L & S Electric........................................ 16 Lakehead Constructors, Inc..................... 2 Malton Electric Company...................... 13 MEelecmetal........................................ 31 Mielke Electric Works.............................. 9

Minnesota Power................................. 21 Naylor Pipe Company........................... 32 Neo Solutions...................................... 25 Noramco Engineering Corp................... 23 Northern Engine & Supply Inc............... 13 Northern Belt & Conveyor..................... 13 SEH...................................................... 11 Viant Crane............................................ 5 WmW Meyer.......................................... 4

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December 2012 SKILLINGS MINING REVIEW | 31

32 | SKILLINGS MINING REVIEW December 2012

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