Study on impacts of uranium mining to extend Quebec moratorium another year

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• Study on impacts of uranium mining to extend Quebec moratorium another year
• "Consider M&A option": Laurentian bank tells Taseko
• ArcelorMittal Europe reports $79m operating profit
• Coal-producing Wyoming becomes first state to reject climate school lessons
• Striking Implats miners to vote on wages; AMCU rejects latest offer
• Glencore may consider bidding for ENRC Kazakhstan manganese assets

Study on impacts of uranium mining to extend Quebec moratorium another year Posted: 09 May 2014 12:25 PM PDT Demonstrators outside hearings for the Matoush uranium project. (Image from archives) A group of doctors, environmental groups and First Nations leaders gathered in Montreal Thursday to urge Quebec's new premier to keep the moratorium on uranium mining until the risks and effects of these kinds of operations on nearby communities have been thoroughly studied. The suspension of uranium mining in the province came in effect in April last year, making Quebec the third Canadian jurisdiction, after Nova Scotia and British Columbia, to halt exploration and development of these kinds of mines. The Bureau d'audiences publiques sur l'environnement (BAPE), the province's environmental watchdog, is currently beginning a yearlong study on the matter, which will be carried out in three phases. The results of this consultation could be critical for the future of mining in the east-central province, which has been losing its allure to investors in the last few years. Mining investments in Quebec dropped significantly more than expected last year, plunging about 37% from a record year in 2012, and marking the first annual drop in a decade. The jurisdiction has also fallen in the famous index of mining destinations put together every year by the Fraser Institute, an independent think-tank: From being the No.1 desired place to invest in mining from 2007 to 2010, it barely reached the 11th place out of 96 jurisdictions last year. Experts think the uranium moratorium speeded up the fall and companies with interest in the area are a testimony of that. Strateco (TSE:RSC), based in Boucherville, has been waiting for years for a certificate of authorization from Quebec's environment department to begin exploration work at its Matoush site in the Otish Mountains, about 275 kilometres north of Chibougamau. The junior has began legal action against the provincial government and announced an impairment charge of $87 million in its accounts due to its inability to proceed with the project's underground exploration program. In November Quebec refused to authorize the Matoush underground exploration phase. Strateco said it had invested over $123 million to date in the project, the most advanced of about 20 proposed uranium mining projects in northern Quebec which were part of former Liberal premier Jean Charest's plan to develop Canada's north.

"Consider M&A option": Laurentian bank tells Taseko Posted: 09 May 2014 10:53 AM PDT Laurentian Bank Securities released Friday an analysis of Vancouver-based Taseko Mines' (TSE: TKO) current project pipeline and potential merger and acquisition (M&A) targets. The analysis stated the copper producer, operating Gibraltar mine in south-central British Columbia, could look to make an acquisition in the near-to-medium term to strengthen its production growth profile. The companies that could be on Taseko's M&A radar are: Copper Mountain (TSE: CUM), Curis Resources (TSE: CUV), Yellowhead Mining (TSE, CVE: YMI) and Panoro Minerals (CVE: PML) according to the analysis. Merging with these companies and forming a "B.C. Mining Inc," would create a significant producer with low political risk jurisdictions and give investors an additional mid-tier investment on the TSE. The study estimated in 2013, BC Mining Inc. pro-forma attributable contained production of 147 million pounds of copper, 1.2 million pounds of molybdenum, 25,000 ounces of gold and 226,000 ounces of silver at an operating cash cost of $2.21 per pound. This was compared with BC Mining Inc.'s attributable contained copper-equivalent production. Taseko is currently in the planning stages for several other mines, including Harmony, Aley and the controversial New Prosperity Mine, which was rejected by the federal government, and not for the first time, last February. Taseko has said the rejection is "not an acceptable conclusion" and haswarned it will pursue other courses. The analysis concludes the miner could be better served by spinning out the asset to another investment vehicle to potentially unlock some value. This, it said, could help remove some of the New Prosperity blemishes that continue to overhang the Taseko share price.

ArcelorMittal Europe reports $79m operating profit Posted: 09 May 2014 09:24 AM PDT Steel giant ArcelorMittal Europe (NYSE:MT) announced Friday positive financial results as net loss narrowed during the first quarter at $205 million, but the company expressed  "cautious optimism" for the rest of 2014. The European segment of Luxembourg-based global steel and mining company reported an operating profit of $79.7 million, compared to an operating loss of $545 million last quarter. Earnings before interest, taxes, depreciation and amortization for the quarter also rose by 29% to $536 million, compared with $416 million last quarter. Sales in the Europe segment also increased by 1.6% to $103 billion, due to higher steel shipments as the company predicted in February. Global steel consumption. Source: ArcelorMittal. "As the pace of recovery in the EU has been slightly stronger than expected when we announced our full year results in February, we have upgraded our forecast for European steel demand in 2014 from around 2%, to 2-3%," said CEO ArcelorMittal Europe's Aditya Mittal in a statement. Global market-wise, the firm expects apparent steel consumption to increase by approximately 3%-3.5% in 2014, based on current economic outlook. Apparent steel consumption refers to the sum of net industry shipments within a given country or region, plus its imports and minus its exports. In 2013 the world's largest steel producer had revenues of $79.4 billion and crude steel production of 91.2 million tonnes, while own iron ore production reached 58.4 million tonnes.

Coal-producing Wyoming becomes first state to reject climate school lessons Posted: 09 May 2014 08:53 AM PDT Coal mine in Wyoming, US. United States' top coal-producing Wyoming has become the first state to ­reject a new science curriculum proposed by ­national education groups, largely because it regarded man-made climate change as a likely possibility. According to Climate Parents, an environmental group with 38,000 active members, the Wyoming Board of Education decision of reviewing the Next Generation Science Standards, a multi-state effort to improve science education, authorities are choosing "coal over kids." "The Board of Education could push back against political meddling and assert its authority over setting science standards, but it will take an outcry from parents and science supporters from Wyoming and throughout the country," the group's website reads. For Amy Edmonds, policy analyst for the Wyoming Liberty Group, the board decision was the right one. "The Next Generation Science Standards are just inferior standards for the state of Wyoming," she told the Laramie Boomerang last month, citing an analysis by a conservative think tank that gave the standards a "C" rating. But NGSS proponents claim that can't be further from the truth. "The science standards are acknowledged to be the best to prepare our kids for the future, and they are evidence based, peer reviewed, etc. Why would we want anything less for Wyoming?" said Marguerite Herman, a proponent of the standards, according to AP. Wyoming's current science standards haven't been updated since 2003, but new guidelines were approved last month in three other areas: social studies, physical education and career & vocational education. According to data from Wyoming Geological Survey, the state accounts for almost 40% of all the US coal production. The sector supports about 6,900 jobs in the state and it is its second largest source of revenue, contributing over $1 billion in 2012. Image source: Bureau of Land and Management /Wikimedia Commons

Striking Implats miners to vote on wages; AMCU rejects latest offer Posted: 09 May 2014 08:03 AM PDT Impala Platinum (Implats) (LSE: IPLA), (JSE: IMP), the world's second largest supplier of platinum, will ask its striking South African employees to vote on its latest wage offer by SMS this week. The vote, Reuters reports, would involve miners who are willing to take part in a poll asking them whether they wanted to return to work. The now 15-week-long strike is a costly one. Miners said in March damages were irreversible and that they had lost nearly over a billion dollars in revenue by then. Implats had to shut down operations in January ahead of the announced strike for safety reasons. Rivals Anglo American Platinum (LON:AAL) and Lonmin (LON:LMI) have also been severely hit the strike. Combined production of Impala, Amplats and Lonmin account for almost 50% of the world's platinum. Including smaller producers, the African nation is responsible for 70% of global mined supply, with Russia making up a big chunk of the remainder. The price of platinum jumped this week on deficit forecast, after GFMS Platinum & Palladium Survey 2014 reported last week that roughly 10,000 ounces of platinum production and 5,000 ounces of palladium are lost each day the strike drags on. The Association of Mineworkers and Construction Union (AMCU) rejected the producers' latest offer of 12,500 rand (US$1205.68) a month by 2017 with benefits, Bloomberg reported Friday. Impala's voting results won't be disclosed before May 13. Meanwhile Lonmin is aiming to restart its operations on May 14.

Glencore may consider bidding for ENRC Kazakhstan manganese assets Posted: 09 May 2014 06:04 AM PDT Glencore Xstrata Plc (LON: GLEN) is said to be considering  an offer to buy manganese assets from Eurasian Natural Resources Corp. (ENRC), a private Kazakhstan/Central African-focused company, Bloomberg reported Thursday. The report added ENRC's Zhairem GOK mainly sells manganese concentrate used in steel and its sale could fetch $100 million to $200 million. London-listed ENRC took a major step to go private after a series of accusations of corruption and bribery last year. The ENRC's three founders and the Kazakh government now control more than 75% of the diversified miner. Should a deal be made, it would enable Switzerland-based Glencore to build on manganese assets from Vale SA in 2012.

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