Mining deaths reach record low

Mining deaths fell to an all-time low in 2009, according to preliminary data from the U.S. Department of Labor’s Mine Safety and Health Adminstration.

Deaths at metal and nonmetal mine deaths registered at 16 and coal mines had 18 deaths. A total of 34 people lost their lives in 2009, a drop from 52 last year.

This stat is somewhat misleading, for instance, because most of the Iron Range’s mines sat idle 2009. I’m sure there were similar cases across the U.S.

“This decline in numbers is a testament to the commitment of miners, mine operators, MSHA, the Department of Labor and other members of the mining community in making safety and health our top concern,” said Joseph A. Main, assistant secretary of labor for mine safety and health. “At the same time, we are ever mindful that these numbers represent a tragic loss to the families and friends of the 34 victims. We will not rest until we reach zero fatalities in mining.”

According to Main, a key factor contributing to the record low number of deaths include enforcement of the Federal Mine Safety and Health Act of 1977 (which succeeded the 1969 Mine Act) and continued implementation of the Mine Improvement and New Emergency Response (MINER) Act, enacted by Congress in 2006.

In 2009, MSHA assessed 173,000 civil penalties for violations of mine safety and health legal requirements. The dollar amount of assessed penalties totaled $140.7 million in 2009. Twenty-five flagrant violations were assessed at a total of $3.4 million.

 

Duluth Metals sees heavy trading

Canadian press is reporting frenzied interest in Duluth Metals after an updated estimate of higher grade areas the company hopes to mine in Northeastern Minnesota suggested greater payback of capital investment.

With company officials touting the Nokomis property in Northeastern Minnesota as “one of the largest valuable mineral assets in the world,” its stock shot up nearly 70 percent on Friday on the Toronto Stock Exchange, the Winnipeg Free Press reported.

Shares trading was described as frenzied with nearly 7,900,000 shares trading hands, and Duluth Metals stock closing at $1.79, up 73 cents, the Free Press reported.

Duluth Metal is seeking to develop an underground mine near Ely to harvest mineral deposits of copper, nickel, palladium and other precious metals. Company officials have said test drilling has indicated the deposits are more than 20 percent greater than previously thought.
 

Cliffs acquires chromite company

Cliffs Natural Resources, owner of Northshore Mining and United Taconite, will acquire a Canadian-based company that mines chromite, a mineral used for industrial purposes.

Cleveland-based Cliffs is set to buy three chromite deposits from Montreal-based Freewest Resources, said a news release today.

“This long-term project is consistent with Cliffs’ stated strategy to broaden its mineral diversification and opens the door tp a new universe of customers," said Cliffs’ Chairman, President and CEO Joseph A. Carrabba in a news release. "In addition to furnishing the raw-material needs of carbon steel producers, we will become a supplier to producers of stainless steel."

 

Cliffs sees revenue fall 67 percent

Cliffs Natural Resources, owners of United Taconite and Northshore Mining, reported a third-quarter net income drop of 67 percent from $178 million in 2008 to $58 million this year.

The Cleveland-based company had revenues fall 44 percent from about $1.2 billion in 2008 to $666 million this year.

The poor third-quarter performance came the same week U.S. Steel, with two mines on the Iron Range, also posted decreases in net income and production.

Cliffs’ Minnesota operations are United Taconite in Forbes and Eveleth and Northshore Mining in Silver Bay and Babbitt.

A restart of Keetac operations could be delayed

What is going on at Keewatin Taconite?

In September, Steelworkers Union 2660 President Jack Thronson said about 325 workers would be called back to Keetac, which had been idled since December.

Not so fast, say two news sources.

On Monday, mine workers were told by union management that Keetac would not reopen soon, said the Hibbing Daily Tribune. WDIO-TV Channels 10 and 13 reported it without naming a source.

Thronson — or any other union representative — has not yet returned calls to the News Tribune to shed light on the situation.

U.S. Steel, which owns Keetac, was nearly mum.

“We do not provide updates on our operations,” said Courtney Boone, a U.S. Steel spokesman. “We continue to adjust production at our facilities to stay in line with customer demand.”

Boone declined further comment.

Tom Sampson, mayor of Keewatin, said the town’s 1,100 residents were rejuvenated when U.S. Steel indicated in September that operations would pick up over the next couple months.

“It was buzzing again,” Sampson said. “Everyone was talking about it.”

But Monday’s reversal deflated the rural town about 80 miles north of Duluth.

“It’s a big letdown, of course,” Sampson said. “We will keep our fingers crossed, but if the market isn’t there, the market isn’t there.”

Rumors swirl about the future of the workers, Sampson said, referring to them being laid off longer or shifted to work at Minntac.

Keetac workers often meet at Vene-Qua Bar and Lounge.

“They are all confused and frustrated,” Annette Gilbert, owner of the Vene-Qua, said of the workers. “They don’t know what is going on right now. … There is not a lot of info now.”

Not a lot of info, indeed.

Cliffs boosts its taconite holdings in Canada

Cliffs Natural Resources Inc. announced today its plans to buy out partners for about $88 million and acquire full ownership of Wabush Mines, with taconite mining and pellet operations in Newfoundland, Labrador and Quebec.

In so doing, Cliffs will exercise its right of first refusal, edging out a $120 million bid made by Consolidated Thompson to buy Wabush Friday. Cliffs already holds a 26.8 percent stake in the operation. Other co-owners of Wabush include U.S Steel Canada (44.6 percent) and ArcelorMittal Dofasco (28.6 percent).

Wabush Mines has a rated annual capacity of 5.5 million tons.Cliffs has been a managing partner at Wabush since it began operating in 1965. Wabush employs about 770 people.

As of the end of 2008, Wabush had proven reserves sufficient to produce at least 75 million tons of pellets.

In Minnesota, Cliffs owns United Taconite Co., with operations in Forbes and Eveleth, and Northshore Mining Co., with operations in Silver Bay and Babbitt. The company also manages and has an ownership stake in Hibbing Taconite Co.
 

More positive mine signs

Some more encouraging news from U.S. Steel Corp…

For the first time since 2008, the Iron Range’s largest taconite facility returned to full production, when Minntac fired its fifth line back up last week. About 960 people are now back to work at the Mountain Iron facility, according to Mike Woods, president of United Steelworkers Local 1938.

Minntac’s owner, U.S. Steel Corp., recently also announced plans soon to resume production at Keetac, a Keewatin facility that last produced pellets in December. Keetac employs about 400 people when it is up and running full strength. Some of those workers will probably be back on the job this week.
 

Copper/nickel deposit found to be more extensive

Even as PolyMet Mining hosts an open house in Hoyt Lakes today, another would-be developer of a copper-nickel-cobalt-palladium and platinum mine, was touting encouraging results of exploratory drilling on the Range.

Duluth Metals Ltd. announced that it has discovered discovered promising deposits of copper and nickel more than half a mile beyond the previously defined boundary of what’s been dubbed the Nokomis formation.

"This latest step-out drilling continues to confirm Duluth Metals’ belief in the continuity of the Nokomis mineralization," said Henry Sandri, president and CEO of Duluth Metals. "It is gratifying to have the confidence to drill a hole nearly a kilometer away from the defined Nokomis Deposit outline and achieve these types of results."

"This new out-step hole supports our belief that the Nokomis Deposit has the potential to be substantially increased, with the added possibility of finding areas of higher grade zones," he said.

So far, just about 50 percent of the Nokomis deposit, located southeast of Ely, has been explored, and all 155 holes drilled have revealed the presence of mineable minerals.

Duluth Metals proposes to develop an underground mine. PolyMet proposes an open-pit peration.

 

Check out PolyMet’s plans

PolyMet Mining Corp. will host an open house at the Hoyt Lakes Arena from 1 p.m. to 7 p.m. this Thursday, Aug. 20. The company will share details of its plans to develop a mining operation to extract gold, copper, nickel, cobalt, platinum and palladium from deposits near Hoyt Lakes.

The project still awaits environmental permits it will need to proceed. In all, PolyMet expects to spend about $600 million on the mining operation if it receives the green light.

Building the new facility would lead to the creation of about 300 construction jobs, and when complete, the operation is expected to employ about 400 people. The total projected payroll? About $40 million annually.

For more information on the open house or the project, click here.