Canadian Mining Journal, 1/13/2008

CANADIAN MINING PERSPECTIVE: Expensive transportation part of mining costs

By Marilyn Scales

The cost of buying an ocean-going vessel to transport iron ore is over $100 million dollars, and RIO TINTO is purchasing three of them. Each ship will be 250,000 tonnes deadweight, and move ore from the company’s mines in Western Australia to China and elsewhere. They will be built at Namura Shipyards in Japan for delivery in late 2012. Total cost is US$315 million.

Our readers may not be aware that Rio Tinto created RIO TINTO MARINE in 1996. The division was small at first, transporting about 17 million tonnes per year around the South Pacific Ocean. The business has expanded to 70 million t/y in 2006 and over 100 million t/y this year.

Rio Tinto’s subsidiary, PILBARA IRON, operates 11 mines and related facilities in Western Australia. With demand from China expected to double after 2010, Pilbara Iron is expanding its output to 220 million tonnes by 2009. Building new ore carriers, although expensive, is expected to add flexibility to Rio Tinto’s transportation strategy. Operating the ships will not be cheap either, as the price of crude oil continues to rise.

I remember when you could develop a large-scale open pit mine in Latin America for $300 million or a small one in Canada for $100 million. My memory goes back as far as 30 years for those numbers. These days copper and nickel developments run into the $1-billion to $2-billion range. The concept of “billions” is mind-boggling to me. At least I can get my mind around “hundreds” and “thousands”, and that sale of number will cover gold projects for the time being.

Canadian Mining Journal

U. P. CD aids anti-mining effort

By Steve Seymour

January 16, 2007

Internationally renown musician Greg Brown knows the power and purpose of folk music.

His “Yellow Dog” album, drawn from an Aug. 26, 2005 performance at the historic W. C. Peterson Auditorium in Ishpeming, describes a way of life in the Upper Peninsula being threatened by a proposed metallic sulfide mine in northern Marquette County.

The folk singer routinely fishes the Yellow Dog River, known as a unique habitat for native brook trout. Over 50 miles in length, the main branch begins in the Ottawa National Forest at the boundary between Marquette and Baraga counties. The river runs through the Yellow Dog Plains, a remote wilderness area which has been routinely logged, but is otherwise virtually untouched.

Recently, Rebecca Humphries, director of the Michigan Department of Natural Resources, announced the agency was delaying a decision on the permits requested by Kennecott until more information could be obtained.

Regardless of the outcome, Brown has used the best traditions of folk music to make an eloquent point in an effort to preserve an irreplaceable part of the Upper Peninsula‘s ecological heritage.

Please click here to read the entire article 

On June 28^th, 2007 the Community Coalition Against Uranium (CCAMU),

agroup of concerned citizens from the Ottawa Valley and Kingston area, joined a peaceful protest with the Shabot Obaadjiwan First Nation and the Ardoch Algonquin First Nation. The First Nations began protesting in October of 2007 in response to uranium exploration at the headwaters of the Mississippi water system which feeds the Ottawa River.

The First Nations claim the site is on its land and fear the uranium drilling could lead to environmental contamination. The uranium exploration company, Frontenac Ventures, has threatened to have the protesters arrested and sue the First Nations for 77 million dollars.

Despite threats from the corporation, on Oct. 8, 2007 Grandma Donna Dillman started a hunger strike to call for a moratorium on uranium mining and moved into a tent trailer near the protest site. On Oct.15 an organization called Raging Grannies joined Donna Dillman at the protest site near Sharbot Lake.

“We wanted to show our support, sing with her, have tea, and make sure she is alright”-Raging Grannies.

[youtube]http://youtube.com/watch?v=eFF3ESIH4h4[/youtube]

The Raging Grannies’ mission is to arouse awareness about such issues as Peace, Social Justice, Environmental Protection, Racism — and in so doing to bring about necessary changes in both laws and attitudes.

Shortly after the Grannies joined the protest, the First Nations agreed to a 12-week truce provided that the provincial and federal government agreed to formal mediation. After much deliberation the First Nations and the government agreed on the agenda of the mediation process, but the First Nations have recently threatened to reoccupy the site unless the province stops uranium mining in the area.

Visit the Community Coalition Against Mining Uranium

Visit the Ottawa Raging Grannies

The Weather Channel has named the Upper Peninsula a Top 10 pick for Winter vacaction destinations.

If you’re from the midwest, you know what winter really means. And you
can take it. You may even love it. If your brood embraces even the heaviest
snows of deepest winter, Michigan’s Upper Peninsula is a can’t-miss
destination for your family. Yes, only the truly well-shod, hearty and
adventurous need apply. But if zero crowds, mile after mile of near-virgin
snow and family time in a rustic cabin by a roaring fire sound good to you,
then look no further. The UP has everything you’re dreaming of.

For full article click link below:

2008-weather-channel-top-10-winter-destination.pdf

Click here for a Mining Journal Letter to the Editor on this Top 10 Listing

U.S. EPA Continues Kennecott UIC Permit Review

Jan 14, 2008

U.S. EPA has notified WIMS that it is continuing its review of an Underground Injection Control permit application it requested from Kennecott Eagle Minerals Co. in March 2007, regarding the company’s proposed Eagle Mine northwest of Marquette in Michigan‘s Upper Peninsula. EPA’s Phillippa Cannon of the Office of Public Affairs told WIMS on January 14 that, “EPA is in the process of reviewing the Underground Injection Control permit application, including whether any additional federal laws or regulations might impact construction activities.”

    On March 23, 2007, EPA announced that Kennecott must obtain an underground injection control permit before it can begin construction of a proposed wastewater disposal well that would be used to dispose of industrial process wastewater. At that time EPA said, “EPA requires permits in order to protect underground sources of drinking water. Based on the significant volume of wastewater to be discharged and the industrial nature of Kennecott’s proposed well, permit conditions will be necessary to protect human health and the environment and to meet the requirements of the Safe Drinking Water Act and underground injection control regulations.” EPA said that Kennecott was required to submit a complete permit application for the proposed wastewater well within 60 days of that time, and would also be required to provide assurance that sufficient money has been set aside to properly close the well.

    In a related matter, on January 10, the Michigan Department of Natural Resources (MDNR) announced at the Natural Resources Commission (NRC) [See WIMS 1/11/08], that it is delaying its decision on approving a surface use lease for 120 acres of public land for 35 years necessary for the proposed Kennecott nickel mine in Michigan’s Upper Peninsula to commence. The MDNR decision is the second part of the State approvals required for the mining operations. MDEQ has already announced its approval of the Kennecott’s permit to develop the sulfide mine [See WIMS 12/14/07]. On December 21, 2007, the National Wildlife Federation (NWF), Keweenaw Bay Indian Community, Huron Mountain Club and Yellow Dog Watershed Preserve announced they were filing a contested case petition and a lawsuit against MDEQ as the first step in a legal challenge to halt the mine [See WIMS 1/2/08].

 This was forwrded to SWUP in an e-mail.  WIMS= Waste Information and Management Services.  WIMS provides a subscription-based environmental news bulletin.  There was no official Press Release from the EPA on this matter at the time of posting.

BHP May Add Cash to Proposal to Buy Rio Tinto, Australian Says

Bloomberg – USA
14 (Bloomberg) — BHP Billiton Ltd. is considering adding cash to its proposal to buy Rio Tinto Group as well as increasing the proportion of shares in the …
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Rumours rev up as BHP nears deadline
The Australian – Sydney,Australia
THE rumour mill over mining giant Rio Tinto seems to be cranking up as the February 6 deadline nears for BHP Billiton to either “put up or shut up” in …
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Article from 1/13/08 Free Press

State has eyes fixed on land in UP

Aim is to guard more than 1,000 acres of beauty

January 13, 2008

By JOHN FLESHER

ASSOCIATED PRESS

TRAVERSE CITY — The state of Michigan is working toward ownership of more than 1,000 acres of scenic land in the Upper Peninsula, officials said last week.

The Department of Natural Resources said it had bought three parcels totaling 373 acres in Iron County from We Energies, an electric utility based in Wisconsin.

Additionally, the DNR said it was close to a deal for 681 acres of former We Energies land in Baraga County now owned by a nonprofit conservation group. “These acquisitions will help the DNR preserve and protect some of the wild beauty of Michigan’s Upper Peninsula,” said Mindy Koch, deputy director for resource management.

Click link at top of the page for full article

George Desort, artist/filmmaker has an exhibit showing at the Omphale Gallery in Calumet, MI through February 29th exploring the different philosophies of wilderness and through post card art and a project, including a short film, as a result of a two week artist-in-residence stay in the Porcupine Mountains.