Ring of Fire News


What's up with the biggest thing happening in mining in NW Ontario?

Ring of Fire News – 14 Jul 12

  • Cliffs issues dividend ….  “Cliffs Natural Resources Inc.  …. announced that its Board of Directors declared a quarterly cash dividend on the Company’s common shares of $0.625 per share. The cash dividend will be payable on Aug. 31, 2012, to shareholders of record as of the close of business on Aug. 15, 2012 ….”  Source (company news release) – More (company Twitter post)
  • …. while selling off its Aussie coal assets ….  “Cliffs Natural Resources Inc. announced today that its wholly owned subsidiary, Cliffs Australia Coal Pty Ltd, has entered into a definitive share and asset sale agreement to sell its 45% economic interest in the Sonoma  joint venture coal mine located in Queensland, Australia to QCoal Sonoma Pty Ltd (QCoal). The assets to be sold include Cliffs’ interests in the Sonoma mine along with its ownership of the affiliated wash plant. Upon completion of the transaction, Cliffs expects to collect approximately AUD$141 million in cash proceeds. The Company anticipates the transaction to close during the fourth quarter of 2012 …. Joseph Carrabba, Cliffs’ chairman, president and chief executive officer, said, “Cliffs continues to make capital allocation decisions through a process focused on driving top-quartile Total Shareholder Return for our shareholders. This transaction reinforces our strategy to direct management and capital resources towards long-lived expandable assets where Cliffs has operational control.” ….”  Source (company news release) – More (company Twitter post) – more
  • …. and getting a “buy rating”  “Cliffs Natural Resources  stock had its *buy* rating reiterated by investment analysts at UBS AG in a note issued to investors on Wednesday.  Shares of Cliffs Natural Resources traded up 0.59% during mid-day trading on Wednesday, hitting $46.30. Cliffs Natural Resources has a one year low of $44.40 and a one year high of $102.00. The company has a market cap of $6.597 billion and a P/E ratio of 4.18.  Cliffs Natural Resources last issued its quarterly earnings data on Wednesday, April 25th. The company reported $2.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.16 by $1.47. The company*s revenue for the quarter was up 6.9% on a year-over-year basis. On average, analysts predict that Cliffs Natural Resources will post $8.04 earnings per share for the current fiscal year …. “  Source
  • Noront issues latest drilling results  “…. Wes Hanson, President and CEO notes: “The winter drill program successfully intersected nickel sulphide mineralization at AT2 that previous airborne geophysical surveys had not identified. Drilling at AT12 intersected long, down-hole intervals averaging from 0.2% to 0.7% nickel within an ultramafic intrusive measuring approximately 200 metres in width and has been traced over a strike length of 1,200 metres to an average depth of 400 metres. The resulting exploration target (1) may host 150 to 300 million tonnes of 0.25% nickel. Within this exploration target are zones of higher-grade nickel sulphide mineralization with associated copper, platinum and palladium, ranging from 1.0% to 4.0% nickel. The Company is currently examining these high grade intersections relative to the geological model developed for the camp to determine the geological continuity of these zones, an effort that will continue throughout the summer.” Mr. Hanson adds: “The Company is also actively evaluating the potential economic benefit(s) related to recent government of Ontario announcements on infrastructure development in northwestern Ontario.  Provincial participation in infrastructure development is welcomed news as is participation by other industry partners.” …. The Company will be completing geotechnical, metallurgical and condemnation drill programs over the summer and fall field season. No exploration drilling is planned at this time …. “  Source
  • Chiefs of Ontario backing First Nations Ring of Fire legal actions  “…. *When a First Nation*s right to free, prior, and informed consent is ignored the consequences are devastating* said Ontario Regional Chief Stan Beardy. *I support Matawa First Nations and its member Nation, Neskantaga, in their recent legal challenges and ask the provincial government to reconsider the position it has taken in these disputes.*  At the 38th Annual All Ontario Chiefs Conference, the Chiefs in Assembly passed Resolution 12/11 which formally supported Matawa First Nations, asking for the federal and provincial  governments and industry, to negotiate with the First Nation based on their right to free, prior and informed consent ….”  Source
  • Mining lawyers:  More rules on Aboriginal consultation (but questions also remain)  “…. Between the changes to CEAA (Canadian Environmental Assessment Act), the new (Ontario) Mining Act purpose clause and regulations and the (Ontario) Far North Act, Aboriginal law is now firmly embedded in the mine development process from start to finish. There are now regulatory and Aboriginal consultation requirements for miners in Ontario starting with early exploration plans and ending with mine closure plans. Aboriginal participation and cooperation is now a core part of the CEAA environmental assessment process …. These changes, taken together, are beginning to operationalize the Aboriginal provisions of the Constitution and give some sense of what these rights mean in practice.  However, many questions remain unanswered. With all of these new Aboriginal consultation requirements at both the federal and provincial levels, it is unclear if there will be sufficient coordination (or harmonization) between the Ontario and the Federal government to make this Aboriginal consultation regime work in practice. Aboriginal consultation at the provincial level must be accepted to meet federal requirements and vice versa. Federal-provincial harmonization of environmental assessments (including Aboriginal consultation) was a key recommendation of the Drummond Report …. but it has not yet been implemented into practice.  At a minimum, coordination between federal and provincial governments should include:  The sharing and acceptance of information between federal and provincial authorities (including Aboriginal consultation information); Allowing federal and provincial regulatory processes to run concurrently; and Timely review by both levels of government.  Otherwise, the new Aboriginal consultation regime will create significant delays for miners and we suspect that governments may be forced to use the highly controversial cabinet override provisions contained in each of the these statues to ensure that projects are not cancelled because of endless delays.”  Source

More open source information (excerpts from information monitored 24 Jun-14 Jul 12 (PDF) here. All information shared here in accordance with the Fair Dealing provisions (§29) of the Copyright Act. The blog is not responsible for the accuracy of the source material, and inclusion of material doesn’t mean endorsement.


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