Page 1

2017 NOVEMBER ADVERTORIAL ISSUE

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Vol:106.No:11

Mining Industry Consultants Impact 2017 P 04

TWIN METALS MINING A DIFFERENT JURISDICTION? P 14

INSIDE STATISTICS


...From the Editorial Desk

NOVEMBER 2017 VOL.106. NO.11

Mining and Politics: The New Civil War

L

ike many lifelong Iron

Rangers, there

Vol:106.No:11

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Democrats

who are

Departing from the family Democratic party of their parents and neighbors, which claimed the mantra of hard working people that represented them for generations. now vocal

President Trump

are former

2017 NOVEMBER ADVERTORIAL ISSUE

supporters.

Mining Industry Consultants Impact 2017 P 04

TWIN METALS MINING A DIFFERENT JURISDICTION? P 14

INSIDE STATISTICS

The mayor of Eveleth, Minnesota made headlines last year when he wrote a letter to the editor of The Mesabi Daily News, which urged fellow Iron Rangers to back Trump believing that “Democrats are too beholden to environmental groups and have become less supportive of mining.” Many former Democrats now identify the Republican Party as the “working man's party." The Iron Range economy is improving yet still stagnant in many sectors. The stark signs of mining facilities still closed after boom years is underscored by voter frustration as they wait for improvement. Expecting change across the Rust Belt of the Upper Midwest, from Ohio to Wisconsin to the Iron Range, voters took their chances on Trump this year. Now they’re expecting work for people at a sustainable wage, where people can make a living and return money to the economy. However many now are not sure the right choice was made, but hope remains that a change in Washington can help jumpstart mining and the local economy...again.

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Skillings Mining Review publishes comprehensive information on global mining, iron ore markets and critical industry issues via our monthly magazine, weekly E-newsletter, annual mining directory and real time website. PUBLISHER CHARLES PITTS chas.pitts@skillings.net MANAGING EDITOR JOHN EDWARD john.edward@cfxnetwork.com SENIOR SALES MANAGER STAN SALMI stan.salmi@skillings.net SALES REPRESENTATIVE, CANADA RON SANDERSON ron.sanderson@cfxnetwork.com CONTRIBUTING EDITORS SARAH HART KATIE SIMS DAVID WILSON CAROLINE DAVIS ART DIRECTOR MO SHINE mo.shine@cfxnetwork.com CIRCULATION & SUBSCRIPTIONS Subscriptions@skillings.net SALES & MARKETING CHRISTINE MARIE advertising@skillings.net

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IN THIS ISSUE

MINING INDUSTRY CONSULTANTS IMPACT 2017 P 04

SULFATE DEBATE OF WILD RICE

P 17

TWIN METALS MINING P 14 A DIFFERENT JURISDICTION? COMMENTARY

IRON ORE

Mining and Politics: The New Civil War....................02

Twin Metals Mining A Different Jurisdiction?..........14

COVERSTORY

BHP Billiton Exits Shale.............................................18

Mining Industry Consultants Impact 2017...............04

Warning: HFZY30 EEBD

COPPER

self-rescue respirator.................................................20

Low “Teck” Profile......................................................15

IRON RANGE REGION

China: The Copper Miner’s Revenge.........................16

Great lakes iron ore trade surges..............................07

INDUSTRY INSIDER

Sulfate Debate of Wild Rice.......................................17

Great Lakes Iron Ore Trade Strong

MINING LAW

Again in October.........................................................16

“Prove it First” law Dimming on sulfide mining........19

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

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

November 2017 SKILLINGS MINING REVIEW | 3


COVERSTORY

Mining Industry Consultants Impact 2017 The mining consultant is no longer a dedicated mineral expert providing technical advise, the 21st century discipline now plays in the political field and increasingly nation building more than ever. Called on to shape policy and offer up vote-getting opinions, the consultant’s role has advanced to the board room and the cabinet table. ENGINEERING CONSULTING SERVICES... LEXINGTON, KENTUCKY, THE WHITE HOUSE.

Office of Surface Mining Reclamation and Enforcement (OSM) in the Department of Interior.

James Steven Gardner, who condemned endeavors by the Barack Obama administration to protect the environment, was designated October 26, 2017, to lead the

OSM is accused of advancing U.S. coal generation while endeavoring to secure and reestablish the land that has been desolated by surface mining. Given his experi-

4 | SKILLINGS MINING REVIEW November 2017

ence, Gardner is expected to exceed expectations at the principal objective and fall short at the second. Gardner experienced childhood with a tobacco farm in Green County, Kentucky. He moved on from Greensburg High School in 1970 and went ahead to the University of Kentucky (UK), where he earned

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coal business, and has composed a few opinion piece articles protecting practices, for example, mining by mountain tops, and frequently limits the harm coal mining does to the earth. He was instrumental in making a gallery in Kentucky where guests can go into a shut-down mine. In 2012, Kentucky Gov. Steve Beshear selected Gardner to the Kentucky Geological Survey Advisory Board. Gardner has indicated over and over that he will battle anything that hinders benefits for coal administrators. In 2015, Gardner was named leader of the Society for Mining, Metallurgy and Exploration.

AMC CONSULTANTS... AUSTRALIA, CANADA, SINGAPORE, UNITED KINGDOM a B.S. in agricultural engineering in 1975 and played rugby. Gardner later came back to UK to gain a M.S. in mining engineering in 1991. Gardner joined the Elkhorn Division of Bethlehem Mines, a division of Bethlehem Steel, as an project engineer soon after acquiring his four year college education. In 1979, he was a counseling engineer for Big K Operating Co. and after that was VP of the building division for Kenwill in Maryville, Tennessee. Gardner ventured out in 1983, forming Engineering Consulting Services (later ECSI LLC) in Lexington, Kentucky. The consultant practice concentrates on common assets, land use issues, recovery risk, health and safety and security issues, and mining and quarry operations. Gardner is a vocal defender of the

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Kasbah Resources recently commissioned AMC Consultants to conduct an independent technical review of the Morocco-based Achmmach project. This construction readiness review assists in ensuring the optimal route to a commencement of construction. The review has been completed without fatal flaws identified.

ity study which allows Kasbah Resources to substantially progress funding discussions and ultimately facilitate a construction decision. AMC recommendations will be incorporated into the feasibility study, construction financing and the board decision to mine. The use of EDS mills as a replacement for rod mills in the grinding circuit. Increasing the primary grind size to 150 represents a potential opportunity to reduce energy consumption and slimes generation, with the potentially beneficial effect of increased recovery through a reduction in fine tin loss. However, it was identified that more work is required to validate this assumption, and so, as recommended by AMC, Kasbah Resources will conduct further metallurgical studies to test and hopefully confirm this. AMC recommended replacing the proposed Imhoflot cells with conventional flotation cells for cassiterite flotation. The application of the Imhoflot cells versus conventional flotation cells will be further evaluated by Kasbah Resources in combination with AMC recommendation to further investigate the opportunity for recovery of liberated tin within the grinding circuit circulating load in the overall flow sheet.

Only a small number of areas were identified as offering the potential to both lower the overall risk of the project and impact the bankability of the project. While work has commenced on these initiatives, the funds raised in this Entitlement Offer will allow final technical work on the Achmmach project to be completed, resulting in an updated definitive feasibil-

AMC considers EDS mills insufficiently proven for a hard-rock implementation, especially when compared to rod mills which are widely applied to tin processing and are considered a far more conventional solution for hard-rock comminution. Concurrent with this work, discussions will commence

November 2017 SKILLINGS MINING REVIEW | 5


COVERSTORY

trend of increasing domestic scrap generation and it will strengthen the current bullish sentiment in the Chinese aluminium industry. The latest news out of China suggests that the China Nonferrous Metals Industry Association (CMRA) received a document the central government (including the Ministry of Environmental Protection) on July 25.

with potential financiers in the second half of 2017 with the aim of securing construction funding by first quarter 2018, at which point construction approval will be sought. AMC recommendations have been adopted by Kasbah Resources and incorporated into the on-going works programme for the development of the Achmmach tin project.

This can only make the Achmmach project more attractive to potential investors and financiers.

CRU... THE AMERICAS, CHINA, ASIA AND AUSTRALIA

As a result of the recommendations from the AMC technical report, the capital cost estimate and financial model for the Achmmach project will be revised and updated and the results released later this year.

CRU understands that the Chinese government has moved to limit imports of Category 7 scrap types. CRU's Beijing analysts conducted a market survey, speaking with industry associations, processing facilities, and secondary plants in China so that they can understand the impact these restrictions will have on the copper and aluminium markets.

In conclusion, CEO Richard Hedstrom stated, Kasbah is now entering the final stage of pre-development work and I'm very pleased that we have been able to identify further opportunities to enhance the Achmmach tin project.

Analysis suggests that the policy will have far reaching implications for the copper market and cause the off-shoring of some Chinese scrap processing. The impact on the aluminium market will be small but the policy will hasten the current

6 | SKILLINGS MINING REVIEW November 2017

This document gave notice that domestic scrap processing companies must stop importing the majority of Category 7 scrap from late 2018; namely scrap cables, scrap motors and scrap hardware. The central government is trying to lower waste product imports into China because the harmful environmental impact of processing. The China Steel Service provides analytical coverage of the Chinese steel market, combining rigorous price assessments from a dedicated team of price assessors, detailed weekly domestic and export margins, granular export data and analysis from CRU analysts in Beijing to provide in-depth coverage of the Chinese steel market. The margins over variable costs are based on CRU proprietary production cost and EBITDA margin data, and are updated weekly for rebar, square bar, HR coil and CR coil. CRU is adding domestic margins covering the same products to allow better comparison of margin calculations, which have become an important factor in price-sensitive exporters export allocation decisions.

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Great lakes iron ore trade surges A total of 5.9 million tons of iron ore were shipped in October, according to the Lake Carriers Association (LCA). The amount bettered the months 5-year average by 6.8 percent, data show. Out of the 5.9 million total tons, shipments from U.S. ports last month totaled 5.5 million tons, which was an increase of 13.3 percent compared to a year ago.

H

owever, loadings at Canadian terminals in the Seaway decreased by 18.2 percent to 395,000 tons, LCA data show. Through the first 10 months of the year, iron ore trade stands at 49.2 million tons, a 13.3 percent rise over

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2016, statistics show. Year-over-year, loadings at the same point in

U.S. ports total 45.5 million tons, a 16.3 percent increase, while shipments from Canadian ports

in the St. Lawrence Seaway fell 13.7 percent to 3.7 million tons, the LCA said. The Lake Carriers Association represents 13 American companies that operate 49 U.S.-flag vessels on the Great Lakes that carry the raw materials such as iron ore and fluxstone for the steel industry, aggregate and cement for the construction industry, coal for power generation, as well as sand, grain and other dry-bulk cargoes. Collectively, the vessels can transport more than 100 million tons of cargo per year.

November 2017 SKILLINGS MINING REVIEW | 7


COVERSTORY

CR MEYER

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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.

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Iron Range Roots, Iron Range Commitment Industrial Lubricant Company serves its Iron Range customers from service centers in Grand Rapids, Coleraine and Hibbing, Minnesota. The company provides products and services to the coal mining industry from their service centers located in Wyoming, North Dakota, Texas and Canada. Its dedicated employees strive daily to passionately serve all customers with innovative and valuable lubrication solutions. Industrial Lubricant Company provides lubricants, filtration products and services and lubrication system design, installation and maintenance. Industry wide best practices and solutions are drawn from their over 70 years of lubrication experiences serving mining companies throughout the United States and Canada. With their partners, they provide best in class lubricants and equipment, custom solutions, recycling and related value added services. Now in its third generation of continuous Iron Range ownership, leadership and management, Industrial Lubricant is re-newing and strengthening its commitment to the Range through significant investments in its people, facilities and service and product offerings. www.skillings.net

November 2017 SKILLINGS MINING REVIEW | 9


IRON ORE


CR Meyer Safely & Successfully Shortens Mine Shutdown by 50 Percent THE CHALLENGE

A

U.S. operator of an iron ore mine in marqUette range of the Upper peninSUla of michigan waS preparing to replace a 100-foot long, 12-foot diameter cylindrical concentrate dryer at their Site. the Scope of the project involved welding leading the

together Seven new dryer SectionS ranging in weight

from 30,000 lbs. to 50,000 lbs. The company had been told by other vendors that the replacement of this dryer could require up to 40 days of downtime. The location of the final new assembled dryer was at an elevation 18 feet above grade. CR Meyer reviewed the tight quarters and the logistics required to accomplish this project and submitted a plan that reduced the downtime projection by 50 percent.

THE SOLUTION The original plan for replacement was to demolish the existing dryer and re-install the seven new dryer sections in place. Instead, CR Meyer engineers designed a structural steel runway system which allowed the dryer to be pre-assembled prior to the outage. Major welding was completed for most of the sections as they were pre-erected on the runway. After the old dryer was removed, the new dryer was rolled into place. The entire shutdown was successfully completed in just 18

days and without a recordable safety incident. The mining industry relies on CR Meyer’s team of professionals and skilled trades people whose primary focus is the installation and maintenance of mining equipment. More than 70 years ago they began constructing heavy industrial facilities at iron ore mines in Michigan’s Upper Peninsula. The company has since expanded across the United States to include mines that extract rare earth minerals, metals, cement, lime, aggregates, and materials for the petrochemical industry. CR Meyer employs skilled union ironworkers, millwrights, pipefitters, boilermakers, carpenters, laborers, operators, bricklayers, and concrete finishers. CR Meyer’s professional services division includes project managers, engineers, architects, and schedulers who develop solutions to control costs, maximize productivity, and complete projects safely. www.skillings.net 12 | SKILLINGS MINING REVIEW November 2017

The Smart Choice Industrial General Contractors Specializing in Mining Equipment Installation and Maintenance Millwrighting Piping Ironworking Concrete Boilermaking Building Construction Design / Build Offices Nationwide

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RAW MATERIALS FOR INDUSTRY

H

allett Dock Company, located at the western

at Dock 5 in Duluth and Dock 8 in Superior while the rail trans-

end of Lake Superior in the Duluth-Superior

load facility at Dock 6 in Duluth has the capability to handle unit

Mill Scale

Used to enhance iron/steel production

harbor has been in the business of handling, storing, and trans-

trains of 123 cars. Because of the varied

shipping bulk raw materials from its three operations since

nature of our customer operations, the company

1961 for a variety of industrial customers-whether they be in North America, South America,

transships a wide range of raw materials — Sinter Feed and Blast Furnace Trim

or Northern Europe. The company’s two maritime facilities are

for the America’s steel industry; Limestone, Dolomite, Coal,

iron nugget industries; Salt for winter ice control, Limestone for

located on Seaway draft of 27'

Bentonite, Clay, Soda Ash for North American iron ore and

North Dakota sugar beet industry; Slag and Limestone for roofing industry; and Liquid Calcium Chloride for dust suppression.

info@hallettdock.com • (800) 637-4497

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November 2017 SKILLINGS MINING REVIEW | 13


IRON RANGE REGION

Management and other federal agencies involved, urged U.S. District Judge Susan Richard Nelson to dismiss the lawsuit, arguing that it’s a contract dispute that under federal law can be brought only in the Court of Federal Claims. Attorneys also argued that the government had the discretion to refuse to automatically renew the leases. But Twin Metals lawyer Daniel Volchok framed the case as a property rights dispute that the district court has the jurisdiction to hear.

Twin Metals Mining

A Different Jurisdiction? Government lawyers asked a federal judge to dismiss a lawsuit by developers of the proposed Twin Metals copper-nickel mine who are seeking to regain their mineral rights leases, arguing that their dispute belongs in a different court.

T

Obama administration in 2016 declined to renew the long-standing leases that Metals Minnesota needs for he

Twin

the underground mine it wants to build in northeastern

project. The company’s congressional supporters, meanwhile, are trying both to persuade the Trump administration and to pass legislation to reverse the lease decision.

Minnesota.

At the time, the government cited the potential for irreparable harm to the nearby Boundary Waters Canoe Area Wilderness from acid mine drainage. Twin Metals sued to get those leases back, claiming it has already invested $400 million in the

Supporters are also trying to undo a related decision that imposed at least a two-year moratorium on minerals exploration in a watershed that flows into the Boundary Waters, including the Twin Metals site southeast of Ely. Sean Duffy, an attorney for the Bureau of Land

14 | SKILLINGS MINING REVIEW November 2017

He said, “no rational prospector would undertake the huge investment of time and money necessary to develop a mine if its mineral rights weren’t secure.” Volchok stated the government was obligated to renew Twin Metals leases instead of “pulling the rug out” from under the company maintained that Twin Metals already has bought and paid for the metals under the land covered by the leases. Alex Ward, an attorney for Northeastern Minnesotans for Wilderness, an environmental group that was granted intervenor status, backed the government’s arguments.w Ward said Twin Metals still has a legal path for recouping its lost investments and lost profits by going to the Court of Federal Claims, which has the power to award monetary damages but not to order renewal of the leases and that it might not be the remedy Twin Metals prefers, but the company must follow the rules.

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The so-called Mesaba deposit sits between the proposed PolyMet copper mine and the Peter Mitchell taconite iron ore mine operated by Cleveland-Cliffs' Northshore Mining.

Low “Teck” Profile Teck is one of Canada's largest mining and energy companies focusing on copper with eight operations in Canada, two each in Chile and the U.S.

A

s recently as

Teck

2003

the

project appeared to

be ahead of other copper

mines in the region.

But

the

Teck

deals failed in the mid-2000s when the company lost the bid for the former

LTV Steel Mining processing center near Hoyt Lakes that to PolyMet. Vancou-

Teck officials met with Babbitt City, Saint Louis County, Minnesota representatives as recently as October to say they were still working in the area about 10 miles southeast of Babbitt. Teck, was known as Teck Cominco until 2008, took control of the project in 1999. ver-based

Teck officials said at the time that they were turning away from the Minnesota project, at least for the time being, to focus on development of other mines overseas. Teck continues to explore at the site as well as review hundreds of thousands of feet of core samples taken from drill holes.

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November 2017 SKILLINGS MINING REVIEW | 15


COPPER

Great Lakes Iron Ore Trade Strong Again in October

S

hipments of iron ore on

Great Lakes and St. Lawrence Seaway totaled 5.9 million tons in October, an increase of 10.5 percent compared to a year ago. Shipments also bettered the month’s 5-year average by 6.8 percent. Shipments the

U.S. ports totaled 5.5 million October, an increase of 13.3 percent compared to a year ago. However, loadings at Canadian terminals in the Seaway decreased by 18.2 percent to 395,000 tons.

from

tons in

Year-to-date the iron ore trade stands at 49.2 million tons, an increase of 13.3 percent compared to the same point in 2016. Year-over-year, loadings at U.S. ports total 45.5 million tons, an increase of 16.3 percent. Shipments from Canadian ports in the St. Lawrence Seaway total 3.7 million tons, a decrease of 13.7 percent. Lake Carriers’ Association represents 13 American companies that operate 49 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 sand, grain and other dry-bulk cargos. Collectively, these vessels can transport more than 100 million tons of cargo per year. More information is available at www.lcaships.com.

China: The Copper Miner’s Revenge

C

opper investors were disappointed after the data showed a sharp fall in copper imports.

China

330,000 metric tons of unwrought October compared to 290,000 metric tons in the same month last year. Although China’s unwrought copper imports rose on a yearly basis, they fell 23.2% compared to September. imported

copper and copper products in

Unwrought copper imports fell to the lowest level since April 2017. China’s copper ore and concentrate imports also fell on a month-overmonth basis in October. Sighted was a sell-off in copper prices after Chinese trade data were released. China’s vehicle sales grew at a slower pace in October. The data released last week showed that total vehicle sales rose 2% YoY (year-over-year) last month. Previously, CAAM (China Association of Automobile Manufacturers) projected 5% YoY growth in vehicle sales for 2017. There were some company-specific events last week concerning. Reaching the end of the 3Q17 earnings season, most mining companies have already released their quarterly financial performance. Leading diversified miners Glencore and BHP Billiton have only provided their quarterly operating performances. Most mining companies seem to have put the worst behind them, and after cutting back on capital expenditure for the last couple of years, miners have again opened their purses for new exploration activity. However, there are some exceptions. Freeport-McMoRan 2017 returns have trailed other copper miners, including those of Southern Copper. FCX has also underperformed copper this year.

16 | SKILLINGS MINING REVIEW November 2017

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Sulfate Debate of Wild Rice In August, the Minnesota Pollution Control Agency (MPCA) announced the rollout of the new wild rice sulfate standard, developed over several years after an old standard was deemed too vague and too difficult for industry to meet.

Environmental Program Schuldt said that at one point, the MPCA's approach to the new wild rice standard was based on the theory that adding iron to water would neutralize the sulfide. Instead, the iron combined with the sulfide to prevent the roots from taking up nutrients by coating the roots with a plaque, Schuldt said. Research shows that sulfate in high levels harms wild rice, most likely as sulfate transforms to sulfides absorbed by the plant. But the impact also appears to vary in different types of water chemistry.

A

1973 limited sulfate Minnesota waters that to 10 parts per million. But

law in place since pollution in all hold wild rice

the

MPCA

said that rule was too broad not all

water can handle the same amount of sulfate.

The new rules would instead study the water chemistry of each wild rice lake and river to determine what sulfate level they could handle and still grow wild rice. The new rule, if enacted, will limit sulfides to 120 parts per billion, and calculate a lake-specific sulfate concentration based upon the amount of iron and carbon in the sediments. That sulfate concentration in the water column would be low enough to ensure that the sulfide in the sediments, where it is toxic to plants, does not exceed 120 parts per billion. There are about 1,300 lakes and rivers listed so far on the statewide list of wild rice waters. In an interview with the Pine Journal, Nancy Schuldt water projects coordinator for the Fond du Lac Band's

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November 2017 SKILLINGS MINING REVIEW | 17


IRON ORE

BHP Billiton Exits Shale BHP Billiton Petroleum's new office space seems to have taken a few signs from Silicon Valley working environments. Examiners expect a hot market for BHP Billiton's shale land. The world's biggest mining organization purchased huge into shale six years back, burning through $20 billion for land in the Eagle Ford, Permian, Haynesville and Fayetteville plays.

A

t that point, while examining

2017

income,

administrators unceremo-

niously dropped the bomb that they were finished with shale, and will auction everything.

It's a blow for Houston, where BHP once strutted its new shale position, supporting the Houston Dynamo soccer team and arranging an enormous office development. Be that as it may be, BHP’s misfortune may wind up a pick up for Texas energy organizations hungry to acquire more prime shale territory. "Private Equity firms, U.S. autonomous oil organizations, the majors,

and even national oil organizations will all need a seat at the table amid deals," said Jon Weintraub, of Wood Mackenzie. Houston energy investment firm Tudor Pickering Holt described BHP 105,000 acres in the Permian’s Delaware Basin the crown jewel of the mining company’s shale portfolio. Anadarko Petroleum Corp., based in The Woodlands, is the logical buyer, the bankers said, with its own Delaware acreage checker-boarded alongside BHPs. “The company’s 200k net acres in the Haynesville also sits in the right ZIP code,” Tudor Pickering Holt said. BHPs Eagle Ford

18 | SKILLINGS MINING REVIEW November 2017

land has less undeveloped acreage, it said, as does its Fayetteville holdings. The Danish transportation group AP Moller Maersk just sold its oil and gas business to the French integrated oil company Total for $7.5 billion. And the Phoenix-based mining company Freeport McMoRan sold its petroleum operations to Anadarko last year for $2 billion. “Investors are pushing companies to focus on core competencies,” Weintraub said. And that means dumping assets that make less money It has been a turbulent few years for BHP Billiton, the world’s largest mining and petroleum company. First came the Samarco tragedy in Brazil, when the collapse of a dam at its iron ore mine unleashed a flood and killed 19 people. The company is still facing the prospect of criminal charges and a potential $47bn settlement over the worst environmental disaster in Brazilian history. More recently, BHP came under attack from activist hedge fund Elliott Advisors, which has built up a 5% stake as it bids to force executives to rethink the firm’s strategy. Elliott wants BHPs bosses to bow to its demands, which include the sale of its US shale oil business. The division was snapped up when oil prices were above $100, but is considerably less attractive now that Brent crude is hovering closer to $50. BHP may be reluctant to seek a buyer at a time when the price is likely to be low, but it is caught between an oil-bearing rock and a hard place.

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“Prove it First� law Dimming on sulfide mining

sin has been effectively banned by state law. But an effort to clear the way for sulfide mining is picking up steam and reopening decades old fault lines between environmentalists and the mining industry

The bill, called the Mining for America Act, would overturn the "Prove it First" law, which forces companies seeking a permit for sulfide mining to show regulators a similar mine that has operated for 10 years and been closed for 10 years without polluting groundwater or surface water.

S

upporters of

395

Senate Bill

say sulfide mining can

be done without harming

the environment, and would create good paying jobs.

"Mining can be done safely, responsibly, and there is no better

place to do it than in Wisconsin," bill sponsor Sen. Tom Tiffany, R-Hazelhurst, said in a Sept. news release. "It is time to repeal the arbitrary mining moratorium and provide opportunity for northern Wisconsin. Over the last 19 years, mining for metallic minerals like copper and gold in Wiscon-

NORTH AMERICAN MARKET (LTU) Company

IRON ORE PRICE REPORT

Ore Type

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

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The 80-acre Flambeau Mine, located 1 mile south of Ladysmith along the Flambeau River in northwestern Wisconsin, was the only sulfide mine to operate in the state under modern regulations. The Flambeau Mining Co., a subsidiary of international mining firm Rio Tinto, employed 70 people and produced 180,000 tons of copper along with millions of ounces of silver and gold.

Per Iron Unit

Per Gross Ton at 64%

Per Ton at 64% Reporting Date

$1.28

$81.92

12/31/17

$1.42

$90.88

12/31/17

November 2017 SKILLINGS MINING REVIEW | 19


IRON ORE

Warning: HFZY30 EEBD self-rescue respirator

S

afeWork

Wales

New South

has issued a notice

warning users to remove an

unsafe emergency escape breathing device from road transport vehicles and workplaces.

Transport industry members are advised to remove the HFZY30 EEBD self-rescue respirator as it does not meet Australian Standard respiratory protection device requirements (AS/NZS 1716). Testing by the Mine Safety Technology Centre

of the HFZY30 EEBD has established that, “the device does not provide sufficient breathable air to be safe and users are at risk of asphyxiation from carbon dioxide after wearing the device for more than a few minutes," the notice states and exceeded the maximum carbon dioxide limit of 3 per cent. Due to these failures, the devices were not tested for their claimed safe duration of 30 minutes. The rubber plugs that are on either side of the

chemical canister often break when you are trying to remove them and so stay stuck in the canister and they break where the string pull attaches to them. This is of particular concern in regard to the plug that is inside the breathing bag as a user would be unaware of the failure and would not be able to breathe through the unit. SafeWork recommends informing all workers about the potential hazards of the product and instructing them not use it even in an emergency. It recommends replacing the emergency respirator with an AS/NZS 1716 compliant device as per the list of design registered breathing apparatus provided by the NSW Resources Regulator.

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(800) 496-6789 or fryberger.com

20 | SKILLINGS MINING REVIEW November 2017

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MINING INDUSTRY PEOPLE

ADVERTISING INDEX

Condor Gold appointed Aiser Sarria as General Manager Mina La India, Nicaragua. Mr Aiser Sarria is a Civil Engineer and Nicaraguan national with 16 years' experience specialising in mining projects. Mr Sarria joins Condor Gold from B2Gold where he

Azcon .........................................18 Barr Engineering.........................08

was the Projects and Mines Superintendent at the El Limon Gold Mine, one of the

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largest operating gold mines in Nicaragua. During his six years at B2Gold, Mr Sarria

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was the manager of seven open pit operations, involved in underground mine opera-

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tions, the construction of two stages of Tailings Storage Facilities and was Pavon's Mining Project Manager.

Fluid Systems.............................15 Global Minerals Engineering.....18

Adventus Zinc Corporation appointed Jason Dunning as its Vice President of Exploration. Jason will oversee Adventus Zinc's global exploration business, and work with its management team and strategic shareholders on follow-on zinc-related M&A

Golder Associates......................22 Hallett Dock Company...............15

transactions. He is a veteran exploration geologist with over 20 years of experience

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in greenfield and brownfield environments with success in developing sustainable

L & S Electric Inc........................09

project pipelines for both small and large capitalization companies. Most recently, he

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

was the Mining Group Manager - Geology & Exploration at Nyrstar from 2014 to 2017.

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Skeena Resources Limited appointed Justin Himmelright as Skeena’s new Vice President

ME Elecmetal.............................13

of Sustainability. Mr. Himmelright has over 25 years of experience in environmental

Minnesota Power.......................12

management and developing social license for natural resource projects throughout Canada and internationally. He previously served as Vice President responsible for

Mielke Electric Works.................09

sustainability matters at Pacifica Resources, Selwyn Resources, Scozinc Mining, and

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Selwyn Chihong Mining. Mr. Himmelright has also worked as a consultant to Indig-

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enous communities on mining proposals within their Territories and with non-profit

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organizations to advance community capacity related to mineral development. ď Ž

Northern Engine & Supply.........21 SEH.............................................14

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November 2017 SKILLINGS MINING REVIEW | 21


STATISTICS

August 2017 Crude Steel Production By John Edward, Associate Publisher

W

reporting to the World Steel Association (worldsteel) was 143.6 million tonnes (Mt) in August 2017, a 6.3% increase compared to August 2016.

Mt of crude steel in August 2017, an increase of 4.1% compared to August 2016. In the EU, Germany produced 3.6 Mt of crude steel in August 2017, an increase of 3.3% compared to August 2016. France produced 1.1 Mt of crude steel in August 2017, an increase of 15.5% compared to August 2016.

China’s crude steel production for August 2017 was 74.6 Mt, an increase of 8.7% compared to August 2016. Japan produced 8.7 Mt of crude steel in August 2017, a decrease of -2.0% compared to August 2016. India produced 8.5

Italy’s crude steel production for August 2017 was 1.1 Mt, up by 0.4% on August 2017. Spain produced 1.1 Mt in August 2017, a decrease of -2.7% compared to August 2016. Turkey’s crude steel production for August 2017 was 3.2 Mt,

orld crude steel production for the

67

countries

up by 13.3% on August 2016. The US produced 7.1 Mt of crude steel in August 2017, an increase of 6.3% compared to August 2016. Brazil’s crude steel production for August 2017 was 3.0 Mt, up by 1.2% on August 2016. The crude steel capacity utilisation ratio of the 67 countries in August 2017 was 72.2%. This is 3.3 percentage points higher than August 2016. Compared to July 2017, it is 0.2 percentage points lower. Statistics based on World Steel Association Report released on September 21, 2017.

Preliminary USGS Iron Ore Statistics for May 2017 By John Edward, Associate Publisher

A

U.S. Geological Survey (USGS) report by Mineral Commodity Specialist Christopher A. Tuck, U.S. mine production and shipments of iron ore in May 2017 were 3.87 million metric tons (Mt) and 4.82 Mt, respectively. Average daily production of iron ore was 125,000 metric tons (t), 7% less than that ccording to the

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of April and 7% greater than that of May 2016. Average daily shipments of iron ore were 155,000 t, 10% greater those in April and 4% greater than those in May 2016. Mine stocks at the end of May 2017 were 8% less than those held at the end of April 2017 and slightly greater than those held at the end of May 2016.

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U.S. exports of iron ore totaled 988,000 t in May 2017, 7% greater than those in April 2017 and 32% greater than in May 2016. U.S. imports of iron ore totaled 315,000 t in May 2017, 18% less than those in April and 16% greater than those in May 2016. 

22 | SKILLINGS MINING REVIEW November 2017

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CRUDE STEEL PRODUCTION, AUGUST 2017. Source – World Steel Association COUNTRY

AUGUST 2017

JULY 2017

AUGUST 2017

% CHANGE AUGUST – 17/16

AUGUST 2017

COUNTRY

Canada

2017

July

1,011

11.3

Total - European Union (28)

Cuba

2017

August

22

-7.9

El Salvador

2016 % change

8

AUGUST 2017

% CHANGE AUGUST – 17/16

12,622

13,655

12,180

3.6

Total - Other Europe

3,479

3,569

3,061

13.7

19.2

Total - C.I.S. (6)

8,095

8,090

8,434

-4.0

Total (67 countries)

143,580 143,245 135,117

6.3

Aug–17/16

20 e

26

-4.8

1,730 e

1,725 e

1,648

5.0

0

0

0

-

United States

7,064

7,071

6,648

6.3

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

Total - North America

9,974

9,941

9,364

6.5

U.S. RAW STEEL PRODUCTION

417

355 e

343

21.6

Brazil

2,955

2,832

2,921

1.2

Chile

100 e

95 e

97

3.2

Colombia

110 e

85 e

124

-11.5

Ecuador

50 e

50 e

49

2.0

Paraguay

2e

2e

3

-37.5

105 e

115 e

109

-3.4

5e

5e

5

-9.1

20 e

30 e

55

-63.5

Total - South America

3,765

3,569

3,707

1.6

Egypt

535 e

535

433

23.6

Libya

20 e

17

31

-35.8

Morocco

45 e

45 e

45

0.0

South Africa

554 e

493 e

446

24.4

Total - Africa

1,154

1,091

954

20.9

Iran

1,750

1,575 e

1,520

15.1

Qatar

233

250 e

232

0.4

Saudi Arabia (HADEED only)

485

380 e

483

0.3

2,743

2,414

2,502

9.6

China

74,594

74,021

68,618

8.7

India

8,474

8,362

8,141

4.1

Japan

8,731

8,588

8,909

-2.0

South Korea

6,160 e

6,159

5,870

Taiwan, China

1,960 e

1,960 e

101,228 100,401

Peru Uruguay Venezuela

Total - Middle East

Total - Asia Australia New Zealand Total - Oceania

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Weekly Production

Year-to-Date Production

September 16, 2017

1,745

0.7

74.9

64,378

3.5

74.6

Previous Year

1,591

9.7

68.0

62,208

-

72.1

September 9, 2017

1,733

- 0.8

74.3

62,633

3.3

74.6

Previous Year

1,591

8.9

68.0

60,616

-

72.1

September 2, 2017

1,747

0.4

74.9

60,900

3.2

74.6

Previous Year

1,609

8.6

68.8

59,025

-

72.1

August 26, 2017

1,740

- 1.3

74.6

59,153

3.0

74.6

Previous Year

1,655

5.1

70.8

57,416

-

72.2

WEEK ENDING

Percent Change*

Production

Argentina

Capability Utilization Rate

Trinidad and Tobago

Percent Change*

Mexico

Production

Guatemala

JULY 2017

In thousands of Net Tons – Source - American Iron and Steel Institute * Percent Change is a comparison between a given week and the previous week. The % change figure in the previous year row refers to the change from a given week compared with the corresponding week of the previous year. AISI’s estimates are based on reports from companies representing about 50% of the Industry’s Raw Steel Capability and include revisions for previous months.

WEEKLY U.S. RAW STEEL PRODUCTION BY DISTRICT DISTRICT

WEEK ENDING 10/14

10/7

9/30

9/23

North East

181

-

198

200

4.9

Great Lakes

641

-

703

684

1,835

6.8

Midwest

162

-

163

160

94,408

7.2

Southern

686

-

575

614

74

-

67

62

1,744

-

1,706

1,720

461 e

459 e

451

2.2

Western

58

55

56

3.1

Total

519

514

507

2.3

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

November 2017 SKILLINGS MINING REVIEW | 23


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Skillings Mining Review November 2017  

Skillings Mining Review - Mining Industry Trade Magazine - Issue November 2017

Skillings Mining Review November 2017  

Skillings Mining Review - Mining Industry Trade Magazine - Issue November 2017