Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
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NEWS-LEADING DEVELOPMENTS individual commitment to ensuring that Kusasalethu is mined in a safe and secure way with full respect for the rule of law. Planning for re-opening the mine began immediately following the February 14 announcement. Employees will return over a period of time in phases to ensure a safe and smooth process. The process of making underground areas safe was expected to take up to six to eight weeks to complete, with the mine returning to normal operations by the end of April and to full production by the end of June. CN Suspends Labrador Trough Rail Study Drillers load core into a sample box at Orko Silver's La Preciosa silver deposit in Durango, Mexico. Idaho, USA-based Coeur d' Alene Mines plans to acquire Orko for C$350 million in cash and Coeur shares. g/mt silver and 140 million oz of silver inferred in 49.6 million mt grading 87 g/mt silver. 95% of the resource is accessible to open-pit mining methods. Coeur President and CEO Mitchell J. Krebs said, "La Preciosa is one of the largest undeveloped silver deposits in the world and adds a large-scale development opportunity with significant exploration upside to Coeur's portfolio. The combination with Orko will deliver enhanced asset and geographic portfolio diversification and robust growth prospects for our combined shareholder base." The transaction requires the approval of at least 66-2/3% of the votes cast by Orko shareholders at a special meeting expected to take place in April 2013. Assuming Orko shareholders approve the transaction and all court and regulatory approvals are obtained, the transaction is expected to close in April. Following completion of the transaction, the current shareholders of Orko will hold approximately 11% of the issued and outstanding shares of Coeur. Harmony Reaches Agreements with Unions to Re-open Kusasalethu Harmony Gold announced on February 14, 2013, that its Kusasalethu mine near 6 E&MJ; • MARCH 2013 Carletonville, South Africa, closed since December 20, 2012, would re-open in a phased process following the successful conclusion of an agreement with the various trade unions representing the majority of the employees at the mine. Harmony had closed the Kusasalethu mine for security and safety reasons and had announced on January 7, 2013, that following a review of both the financial and operational impact of lawlessness, violence, and non-compliance to South Africa's Mine Health and Safety Act at the mine during the fourth quarter of 2012, it would keep the mine closed until such time as it is safe enough for its employees to begin mining activities (E&MJ;, February 2013, p. 18.) A consultation process was begun between Harmony and Kusasalethu employees represented by the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM), Solidarity, and UASA. A pre-condition for re-opening the mine was the acceptance by all employees of a number of conditions broadly relating to commitment to full compliance with operating policies and procedures and safe and orderly conduct. The unions agreed to these conditions and also agreed that each employee would sign a code of conduct to show their The Canadian National Railway (CN) announced in mid-February 2013 that it has suspended a feasibility study for the construction of a proposed rail line and terminal handling facility to serve the northern Labrador Trough of Québec and Labrador. The feasibility study was initiated last August by CN and its partner La Caisse de dépôt et placement du Québec (the "Caisse"), along with a group of six mining companies (E&MJ;, September 2012, p. 10). The CN announcement said the study had been progressing steadily; however, current market realities have resulted in anticipated delays to mine development projects in and around the Labrador Trough. A joint review of the project with the mining companies indicated that mine construction schedules and diverging needs for each individual project would make it difficult to obtain the critical volumes of iron ore necessary to support the building of new rail and terminal infrastructure by CN. CN also said decisions by some miners in the region not to join the group of mining companies supporting the CN infrastructure project were also a factor in the much-lower-than-projected iron ore volumes that are now expected to be shipped in the foreseeable future. Luc Jobin, executive vice president and CFO of CN, said, "We have invested considerable effort and resources towards the feasibility study, but in light of the circumstances, CN has concluded that it is not advisable to continue with the feasibility study at this time." Three of the iron ore development companies participating in the CN study—Champion Iron Mines, New Millennium Iron, and Alderon Iron Ore— issued follow-up statements to the effect that suspension of the rail study would not impact their plans for their projects. www.e-mj.com