Skillings November 2019

2019 NOVEMBER ADVERTORIAL ISSUE

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Vol:108.No:11

1912-2

019

THE FEDS ATTEMPTED TO MAKE AN EXAMPLE OF A SMALL WASHINGTON COAL MINE. IT DIDN’T WORK! P 04

TATA STEEL RECRUITS WOMEN IN MINES P 14

INSIDE STATISTICS

...From the Editorial Desk

JUNE 2019 VOL.108. NO.11

As the coal industry struggles, lawmakers facilitated coal marketing program

A

fter a bruising summer in coal country,

Wyoming

lawmakers are

under pressure to help a dwindling industry that has long served as a crucial part of the state's economy.

Faced

with a decision on

whether to intercede or step back, state lawmakers have so far chosen to double down. At a recent meeting, they suggested marketing the Powder River Basin's coal to new customers, hoping to enhance the industry by connecting its product to global markets.

Members of the Legislature's Joint Minerals Committee advanced a draft bill which will provide $1 million to the office of Gov. Mark Gordon to "protect and expand Wyoming's coal exports and coal facilities and to address impacts cities, towns and counties have experienced because of changes in the coal market." What it's doing is giving $1 million to the executive to deal with crises when they emerge," said Rep. Mike Greerar, R-Worland. "Keep yourself updated with trending news, market insights, best practices and case studies to digitizing your channel management, engaging your partners, capturing data for sales intelligence, growing, motivating and enabling your channel network."

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IN THIS ISSUE

The feds attempted to make an example of a small Washington coal mine. It didn’t work P 04

P 14

P 18

5 GOLD MINING ETFS & STOCKS LEADING IN AUGUST

TATA STEEL RECRUITS WOMEN IN MINES

COMMENTARY

IRON RANGE REGION

As the coal industry struggles, lawmakers

Eye On Mining: A look back at the Iron Range

facilitated coal marketing program...........................02

labor union struggle...................................................15

COVERSTORY

Mining industry blacklist of companies

The feds attempted to make

that cave.....................................................................20

an example of a small Washington

MINING LAW

coal mine. It didn’t work.............................................04

U.S. Steel files countersuit over leases

GOLD

that could extend Hibbing Taconite’s

5 Gold Mining ETFs & Stocks leading

Mine life......................................................................16

in August....................................................................18

Fond du Lac band issued legal proceedings ...........17

IRON ORE

SAFETY

Iron ore price slump by biggest

Mining, oil and gas employees at

monthly fall in eight years.........................................06

risk of hearing loss.....................................................20

Weir Group wins 'record'

STEEL

£100m mining orde....................................................17

Tata Steel recruits women in Mines.........................14

Statistics.............................................................. 22/23

www.skillings.net

Mining People............................................................ 21

November 2019 SKILLINGS MINING REVIEW | 3

COVERSTORY

The feds attempted to make an example of a small Washington coal mine.

It didn’t work

For the past two decades, one of the West's smallest coal mines has remained inactive, neither producing the "black diamonds" the town is known for, nor completing federally required cleanup.

Located about 20 miles east of Puget Sound, the site still has four piles of mine waste and two coal pits. "It's been 20 years, and not much has occurred," said Black Diamond Mayor Carol Benson.

T

his

480-acre project has played

a major part in the federal government's attempt to tackle

the challenges with mine that sit idle

Trump administration — federal regulators could have addressed concerns about coal mines idling for years with minimal chances of reopening

for a long period of time.

Sometimes referred to as "zombie mines," such projects have long been a concern for federal regulators who have tried to strengthen standards for cleaning up inactive mines.

At the most recent Reform attempt, in 2011, the John Henry Mine provided an ideal example of the need for strict regulation to federal officials. They knew the mine well; many states have regulatory regimes that transcend federal criteria, but Washington lacks a state-level mining agency; therefore, the Office of Surface Mining Reclamation and Enforcement (OSMRE) is accountable. If the federal lawmaker had succeeded — it was nullified by the

A report in 2010 by a team at OSMRE laid out the shortcomings of the present federal regulations, based on documents obtained from the Center for Public Integrity. Regulators found that under existing federal criteria, mine operators need minimal justification for stopping mining.

The operator does not have to report what reserves remain or demonstrate that the mine is in regulatory compliance, and there is no re-evaluation of their owner's financial capability to cover reclamation costs. And, importantly, the present regulations lack a time limitation to get a mine's a mechanism or inactivity for ending that idle status and so activating the

4 | SKILLINGS MINING REVIEW November 2019

owner's duty to clean up the site. Even before OMSRE stated the issues with unclear regulations, it had tried to find John Henry to stop delaying cleanup.

The project, which had been a thorn in regulators' sides for many years, match lots of the loopholes disclosed in the report. "Critical effort "had been expended, the report said, trying to end the temporarily idled status of the mining company, Pacific Coast Coal Co. (PCCC).

In 2009, OSMRE ordered the mine to stop delaying reclamation. PCCC challenged this, arguing that it had more coal to mine. "You can put it in idle mine status and then leave it there." However, Interior Department Appeals Court Judge Robert G. Holt ruled against the company, stating that while there exists no regulation that expressly requires reclamation, even after an extensive time period, tempo-

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reclamation in May, according to Morris, who accuses the federal regulators of not letting the mine to reopen.

With Seattle's growing Population spilling into Black Diamond, the town is eager to see the mine reclaimed. The site is in the process of being restored to wetlands and forests. One of the pits will become a lake, yet another will probably be backfilled from refuse piles on site, and also mine sediment's open ponds will be filled and recovered if all goes as planned.

Black Diamond Mayor Carol Benson.

rary cessation does not allow companies to delay reclamation indefinitely.

"PCCC has not mined coal for ten years and has shown no present ability to resume mining or to sell coal,'' said David Morris, PCCC's general manager.

The court ruling provided an important legal basis for the proposed rule to set stronger timelines for reclamation, stated Joe Pizarchik, the director of OSMRE under the Obama administration. "It was a court decision that ten years was not 'temporary' cessation of operations. The ruling thus allowed OSMRE to assert that it was not overreaching in crafting mineral criteria for idled mines.

agenda. Today, the John Henry Mine appears as it did in 1999 when coal came from its open pits. Regardless of the court decision, reclamation work stopped, thanks to years of wrangling over permits and an environmental impact statement. Like other companies in the coal industry — PCCC attempted to resume mining, but could not find a market. The company started final

Alyssa Barton of Puget Soundkeeper, a non-profit that focuses on area watershed protection, stated that she is hopeful the site will be restored at last. Although there was a delay," she explained, "but we want to make sure the site gets cleaned up and probably changes ownership if that is possible so that it becomes a park or something and never can be utilized for mining again."

Pizarchik stated that the agency was eager to implement a stronger idled-mine regulation but lacked the budget and staff. During this period, the agency was busy writing regulations on mountaintop removal mining, which later became the Stream Protection Rule. In the long run, both the Stream Protection Rule and the yet-to-be-finalized mine-idling rule failed due to the Trump government's deregulatory

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November 2019 SKILLINGS MINING REVIEW | 5

IRON ORE

Iron ore price slump by biggest monthly fall in eight years

The seaborne iron ore price has witnessed its most significant one month fall in nearly eight years as shipments increased to China, sparking supply pressure.

S&P Global Platts disclosed that iron ore lump premiums have declined by 74 percent over the last two months as steel mills reduced the usage of the lump in response to thin steel margins.

crackdown on environmental policy has BHP expecting a spike in demand for high caliber seaborne iron ore fines and substances, such as a lump in the moderate to long-term.

Chinese steel-markers are alternatively turning to domestic ores and foreign fines in the mixing process.

This coincides with international trade tension as US President Donald Trump threatened to impose a tariff on Chinese products.A growing Chinese trend towards larger furnaces and a

The price of the product has fallen from $US110.65 ($163.62) at the end of July to $US84.64 by the end of August, in accordance with Market Index, as Australian mining firms ramped up lump shipments to China throughout July. The sharp fall, which follows a period of prosperity for the Iron ore

6 | SKILLINGS MINING REVIEW November 2019

price, highlights what BHP described in an August economic and commodity prognosis as "significant volatility in pricing." It attributed this to the normalization process of international iron ore supply as Brazilian exports recuperate from the Brumadinho tailings dam tragedy.

BHP had signaled it expects ore stocks at Chinese ports may fall further in the second half of this year. This would worsen what has already been a "spectacular Level of decline" according to BHP, together with stocking falling from 142 million tonnes at the end of 2018 to just below 120 million tonnes in late July this year.

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CR MEYER

ME ELECMETAL

NORTHSHORE

HALLETT DOCK

NAYLOR PIPE

STEEL

Skillings Mining Review is supported by these leading providers of materials, services and supplies to the mining industry. Please patronize them whenever possible and let them know you saw their advertisement in Skillings.

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November 2019 SKILLINGS MINING REVIEW | 7

Innovative Solutions and Proven Performance from ME Elecmetal!

For over 100 years, ME Elecmetal has worked closely with mineral processors to help them increase productivity and reduce downtime by developing the most cost-effective and innovative products and services in the marketplace.

ME Elecmetal offers complete solutions that include impact and abrasion resistant liners for grinding mills and crushers, using alloys and designs unique to each specific application. In addition, we also provide a full array of the highest quality grinding media — from small-diameter forged steel balls to 6+ inch SAG balls.

ME Elecmetal provides valuable insight based on our years of experience and advanced technologies. Our experienced and knowledgeable sales and technical engineers will help you optimize your process, reduce downtime and increase productivity, resulting in higher profits.

We deliver value to our customers’ operations with Innovative Solutions based on Proven Performance!

ME Elecmetal

3901 University Avenue NE Minneapolis, MN 55421 480-730-7500 www.me-elecmetal.com

ME FIT SYSTEM | ME FIT CRUSHING | GRINDING MILL LINER | GRINDING MEDIA | CRUSHER COMPONENTS | LINER FASTENER SYSTEMS

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The system is developed through the ongoing analysis of your mineral processing data by ME Elecmetal’s highly qualified sales engineers. It takes advantage of the highest standards in quality, manufacturing, service and logistics — along with the people who bring it all together.

op Pe

The ME FIT System is a concept developed by ME Elecmetal. FIT stands for Fully Integrated Technology. The system combines mill liner and grinding media technology with the dynamic operating data from each mill to develop an optimized grinding solution specific to your needs.

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Learn more about how the ME FIT System can help you improve your milling operation at www.mefitsystems.com

MINIMIZE DOWNTIME WITH CR MEYER

Realign, Repair, and Rebuild The mining industry relies on CR Meyer’s team of professionals and skilled trades people whose primary focus is the installation and maintenance of mining equipment. More than 70 years ago they began constructing heavy industrial facilities at iron ore mines in Michigan’s Upper Peninsula. The company has since expanded across the United States to include service to mines that extract rare earth minerals, metals, cement, lime, aggregates, and materials for the petrochemical industry.

THE CHALLENGE

THE SOLUTION

M ining

CR Meyer has technicians and crews, along with specialty equipment, that have the expertise to perform these repairs and alignments accurately and efficiently.

When repairs require around-theclock effort, CR Meyer will mobilize day and night shifts to make sure down time is kept to a minimum.

CR Meyer crews have special experi-

and industrial customers

often have equipment such as kilns, balling mills, twin ducers/gear boxes, crushers, and pumps which get out of alignment, require emergency repairs, or necessitate routine rebuilding.

This

equipment is critical to maintaining production , so down time must be minimized; yet, these repairs typically require special skills and equipment.

ence with complex gear box rebuilds, trunnion rebuilding, and full realignment capabilities.

We can draw on in-house heavy equipment, including large cranes, 200-ton gantry/jack systems, and a 3D Faro Laser alignment system. CR Meyer responds quickly to ensure safe, accurate, and timely project completion.

Industrial General Contractor Specializing in Equipment Installation and Maintenance Millwrighting l

Piping l

Ironwork l

Concrete l

Boilermaking l

Building Construction l

Design/Build l

Offices Nationwide

crmeyer.com 800.236.6650 12 | SKILLINGS MINING REVIEW November 2019

Offices: Byron, GA Escanaba, MI Muskegon, MI Coleraine, MN Tulsa, OK Chester, PA Oshkosh, WI Green Bay, WI Rhinelander, WI

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RAW MATERIALS FOR INDUSTRY

H

allett Dock Company, located at the western end of Lake Superior

at Dock 5 in Duluth and Dock 8 in Superior while the rail transload facility at Dock 6 in Duluth

in the Duluth-Superior harbor has been in the business of handling, storing, and trans-

has the capability to handle unit trains of 123 cars.

Because of the varied nature

shipping bulk raw materials from its three operations since 1961 for a variety of industrial customers-whether they be in North America, South America,

of our customer operations, the company transships a wide range of raw materials-Sinter Feed and Blast Furnace Trim for the America’s steel industry;

or Northern Europe. The company’s two maritime facilities are located on Seaway draft of 27'

Limestone, Dolomite, Coal, Bentonite, Clay, Soda Ash for North American iron ore and

Limestone Used in Minnesota’s sugar beet and taconite industries

iron nugget industries; Salt for winter ice control, Limestone for North Dakota sugar beet industry; Slag and Limestone for roofing industry; and Liquid Calcium Chloride for dust suppression.

info@hallettdock.com • 218-628-2281

World Gateway for Transloading & Storage of Bulk Commodities

H

allett Dock Company, located in the Duluth-Superior Harbor at the western end of Lake Superior, has been in the business of receiving, stockpiling, screening, and shipping bulk and liquid

commodities since 1961. • Whether transloading chrome ore from Montana to European customers, bentonite from Wyoming to iron ore plants in Quebec or bringing limestone from Michigan for Minnesota’s sugar beet industry—we stand ready to meet your needs.

P.O. Box 16447 • Duluth, MN 55816-0447 (800) 637-4497 • (218) 628-2281 Web: www.hallettdock.com • Email: info@hallettdock.comà

Located at the head of the St. Lawrence Seaway system, we serve customers worldwide

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Our liquid storage tanks have 2.1 million gallon capacity

We have two docks with seaway draft capacity, and a third surface transloading facility

We’ve been efficiently handling and delivering a wide variety of products for nearly five decades

November 2019 SKILLINGS MINING REVIEW | 13

STEEL

Tata Steel recruits women in Mines

area 24x7 even on night shifts. Beginning September 1, we have deployed women engineers at our Noamundi OMQ," explained Arun Misra, vice president, raw material, Tata Steel. Kher, who holds a first-class certification in mining by from the Directorate General Of Mines Safety DGMS, Dhanbad, has been recruited as a senior executive manager at Noamundi, stated Misra, adding that she'll be supervisor in-charge, leading a group of 40-50 people, including men and women.

The company has created a friendly ecosystem for women in and around the mines. This includes engaging women security personnel, transport services, female drivers, CCTVS and GPS trackers in the vehicles, restrooms, etc. Also, the company is adhering to the principle of not less than three women per shift.

Pratixa Kher is going to be a pioneer in Noamundi Hills of Jharkhand, which supply the iron ore that feeds the blast furnaces of Tata Steel. She will be among those shattering a gender barrier – women managers directing mining operations.

Kher is one of the engineers hired by Tata SteelNSE -1.74 percent who'll be doing traditional jobs considered too hazardous and too difficult for women.

The steel major has recruited ten officials – including mining, electric, mechanical and mineral processing engineers – who have been posted to the Noamundi Ore, Mines and Quarries (OMQ) branch and started on Sunday.

The company is also on a drive to employ more women at the mine.

This follows the authorities scrapping Section 46 of the Mines Act 1952, over

60 years old, which imposed limitations on women's employment in mines in February. Women are now able to operate in underground mines and curbs that prevented them from working night shifts in surface mines.

"We had women working in various roles in mining areas earlier. However, the new law has opened the opportunity for women to be posted to mines

14 | SKILLINGS MINING REVIEW November 2019

This new framework also opens up job opportunities for women who want to pursue technical jobs in mines such as fitters, welders, station operators, drill drivers and operators. Misra stated there had been a clear business case for employing women in mines because it leads to the creation of innovative and new ideas, improving access to a diverse set of customers and talent.

"Women will contribute unique attributes, including different ways of thinking, problem-solving skills, along with a multidimensional strategy," said Misra. "We are on the look-out for more women for our mines. We want women who would compete in the organization and would see a future for them and are not intimidated by the job." In seven-eight years, the company intends to recognize a woman leader of mines to head its mining operation.

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E Y E

O N

M I N I N G

A look back at the Iron Range labor union struggle The history of manpower in Iron Range mines is complicated and in some instances dark. "It was bad working conditions," said Pamela Brunfelt, an Iron Range Historian. "These were immigrant miners who could not speak the same language, and they were severely underpaid.

T

Minnesota's Iron Range, "They had to pay for all their tools, they had to pay for anything they damaged," explained Brunfelt while visiting the Blue-Collar Battleground Exhibit at the Minnesota Discovery Center. "It was a very hard way he beginning of mining on

a stark contrast with today's standards.

unions has dropped, and that is not true for Iron Range. It's still a strong, important portion of the Iron Range community."

If you would like to walk through that part of history, you can do so by visiting the Blue-Collar Battleground Exhibit at the Minnesota Discovery Center in Chisholm.

to earn a living, and no amount of pay was going to make up for the dangers."

Eventually, the miners said enough is enough and started the strike. "They occasionally fought against the forces of a raid against them. They never gave up." But at that time, they were fighting alone. "They were fighting without the assistance of the government, so each and every strike was doomed," Brunfelt said trust was betrayed as mining firms hired spies from within to try and break the labor unions.

"Lots of spies were extorted, in other words, the companies knew they had something in their lives that they needed money for and they would approach them and say we will pay you this amount and then you can look after your problem and after that, they were trapped."

Regardless of the many challenges, the miners pressed on in their fight. "They were committed to fairness, and it did not matter whether they spoke English or not, they wanted fairness, they needed a fair system at their workplace."

And this commitment paid off when the National Labor Relations Act and the Wagner Act was signed into law. "It put the government on the side of the workers, and it has empowered them greatly." Brunfelt said there's no doubt that the work done by those miners of the early 1900s still lives on today. "The number of people who are in labor

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November 2019 SKILLINGS MINING REVIEW | 15

MINING LAW

U.S. Steel files countersuit over leases that could extend Hibbing Taconite’s Mine life

T

he land and minerals at the center of discussions to

extend the mine life of Hibbing Taconite are back in the focus of interest, this time as part of a legal attempt by the firm in possession of the leases.

U.S. Steel has filed a countersuit against Glacier Park Iron Ore Properties, stating that its lease agreement for the Carmi-Enterprise land and minerals around Hibbing Taconite is legally acceptable and that the litigation is designed to halt their operations in favor of a financial windfall.

Glacier Park claimed in a lawsuit last month that U.S. Steel used pressure approaches to negotiate a 47- year sweetheart agreement on the land, breaching the intentions of the Great Northern Iron Ore Properties Trust. U.S. Steel filed the countersuit in Hibbing on Tuesday, from Sixth Judicial District Court, the same authority as the original. In it, the Pittsburgh-based steel Company paints the image of a new ownership group unhappy with their Predecessor's agreement on the land, and is using Hibbing Taconite as a narrative "to extract the undue corporate windfall." U.S. Steel is currently seeking to dismiss the claims of Glacier Park, and prevent it from arbitrating the Carmi-Enterprise lease agreement and declare that the steel company isn't

responsible for damages. In accordance with this latest court filing, U.S. Steel negotiated lease terms with the GNIOP Trust and was accepted by Glacier Park and its parent firm ConocoPhillips, in 2011. When Glacier Park was sold to its new Texas ownership, the company's Iron Range operations lasted before 2016 on the status quo.

U.S. Steel asserts that the new ownership started expressing dissatisfaction with the rental terms and minimum royalties as a means to "capitalize" on improved market conditions in the iron ore market. The firm is arguing that it infiltrated the confidence with an insider as a way to suppress potential bidding on the Carmi lease.

U.S. Steel had sought a federal court complaint Aug. 26, the same day, Glacier Park filed two lawsuits against them, trying to prevent arbitration attempts.

That complaint was sealed and later

16 | SKILLINGS MINING REVIEW November 2019

dropped by the company. Glacier Park's original suit was subsequently sealed Aug. 27. It's the first public attempt to put pressure on U.S. Steel over the land in question, which would generate about 500 million tons of resources and seven to twelve years of mining for HibTac. Estimates demonstrate that the mine could run out of ore by 2024, potentially threatening over 3,000 direct and indirect jobs and its operation across the Iron Range.

"GPIOP's allegations are pointless and have been made in bad faith," U.S. Steel states in its countersuit. "GPIOP is expecting that the specter of litigation, and its potential effect on U.S. Steel's operations, will offer commercial leverage.

Glacier Park declined to comment on the countersuit citing pending litigation.

A request for additional comment has been submitted to U.S. Steel.

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Fond du Lac band issued legal proceedings

T

he Fond du Lac Band of Lake Superior Chippewa has issued legal proceedings against

U.S. EPA along with the U.S. Army Corps of Engineers about the permits issued to P oly M et for the firm ' s proposed copper - nickel mine near Hoyt Lakes.

Weir Group wins 'record' £100m mining order

S

Technology firm Weir Group has won a record £100m order to provide mining equipment for a significant iron ore project in Western Australia. The deal includes crushing and pump equipment for the Iron Bridge Magnetite Project, located in the Pilbara region. cottish

the

The Band that filed the lawsuit on Tuesday says the proposed mine would be located in the Band's Ceded Territory, which is where the firm has treaty rights for fishing, hunting, and gathering. Band members state that the territory is roughly 70 miles upstream from their reservation. According to Fond du Lac Chairman Kevin DuPuis, the band "is not against mining, but wants to make sure that any new exploration operation in Minnesota complies with the legislation and is protective of the environment, not only for the Band and its members but for all Minnesotans." The Band also states that the St. Louis River within the reservation area is already above the Band's water quality standard for mercury, which has caused health advisories to limit fish consumption depending on the contamination in fish.

Furthermore, the Band says it has the right to ensure the mine won't violate their downstream water quality standards, which has rigorous mercury levels than the states. As stated by the Band members, the EPA and Army Corps ignored the Band's multiple orders for notice, in addition to a public hearing, and did not respond to the Band's requests and analysis.

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Weir Group chief executive Jon Stanton described it as a "landmark deal". He Said: "Fortescue asked us to help build one of the most energy and cost-efficient magnetite ore processing facilities in the world. "Our engineers have worked tirelessly to design a solution that is genuinely advanced - providing significant energy, water and cost savings." Earlier This year, Weir sold its circulation control arm to a private equity investment company to concentrate on mining and oil and gas markets. The Glasgow-based company said that it was its largest-ever individual mining order. The $2.6bn (£81.3m) Iron Bridge project is a joint venture between Fortescue Metals Group and Formosa Steel IB Pty. Weir Said the order would reduce the project's energy consumption and waste by over 30%, compared with local mining technologies. First Ore is expected to be completed in 2022.

NORTH AMERICAN MARKET (LTU) Company

IRON ORE PRICE REPORT

Ore Type

Pellets, FOB Michigan Mines Pellets, FOB Cleveland-Cliffs Inc. Minnesota Upper Lakes Port Source: CLEVELAND-CLIFFS INC. Cleveland-Cliffs Inc.

Per Iron Unit

Per Gross Ton at 64%

Per Ton at 64% Reporting Date

$1.28

$81.92

12/31/17

$1.42

$90.88

12/31/17

November 2019 SKILLINGS MINING REVIEW | 17

GOLD

5 Gold Mining ETFs & Stocks leading in August

T

rade has played foul on

Wall Street

in

August,

sending the compre-

hensive indices into a tailspin, thereby convincing investors to switch to gold as a great store of value and hedge against market turmoil.

The

trade drama resulted for the worse as the world's two largest economies levied

a tit-for-tat increase in levy although trade talks are expected to start soon.

The effects of inflation, Collapse in bond yields, global recession fears, political unrest in Hong Kong in addition to fall in Argentina's and stock markets boosted demand for gold. Moreover, rising hopes of loose monetary policies globally added to the metal's strength. Lower rates will continue to weigh on the dollar against a basket of currencies, increasing gold attractiveness as it does not pay interest like fixed-income assets.

As both local and foreign markets are struggling, gold climbed six-year highs to above $1,500 per ounce with anticipation of additional Increase if uncertainty continues. Moreover, the central banks are major buyers of gold (read: Gold ETF Inflows Hits 6-Year High: How to Go Long.)

Acting as a leveraged play on metal prices, Metal miners often experience more profits than their bullion cousins in a rising metal market. Given that, we emphasize five gold mining ETFs and stocks that were at the forefront

of the market in August. These could be outstanding plays for investors, who believe that gold will continue to move higher, given the unsteady fundamentals.

Harmony Gold Mining Company Limited HMY: Upward 39.4percent It is engaged in the exploration, extraction, and processing of gold in Papua New Guinea and South Africa.

The stock has a Zacks Rank #2 (Buy) and VGM rating of A. It has a market cap of $1.6 billion (read: 5 ETF Zones to Take Shelter From Trade War).

Yamana Gold, Inc. AUY: Upward 21.8percent It is involved in operating mines, development-stage projects, and exploration and mineral properties majorly in Canada, Brazil, Chile, and Argentina.

With a market cap of $3.4 billion, it has a Zacks Rank #2 and VGM Score of C. Asanko Gold, Inc. AKG – Upward 20.3percent This company is engaged in the

18 | SKILLINGS MINING REVIEW November 2019

mining, development, and production of gold properties. It has a Zacks Rank #1 (Strong Buy) and VGM Score of B. The stock has a market cap of $210.2 million. You can view the complete list of today's Zacks #1 (Strong Buy) Rank stocks there.

AngloGold Ashanti Limited A.U. – Upward 18.9% Based on Production, It is the third-largest gold mining company in the world. With a market cap of $9.4 billion, it has a Zacks Rank #1 and VGM Score of B Kinross Gold Corporation KGC – Upward 17.1percent This company is involved in the acquisition, exploration, and development of gold properties in the USA, Russia, Brazil, Ghana, Chile, and Mauritania. The stock has a Zacks Rank #1 and VGM Score of B. It also has a market cap of $6.2 billion. iShares MSCI Global Gold Miners ETF RING: Upward 11.8% This ETF gives exposure to companies that derive most of their revenues from gold mining. It follows the MSCI ACWI Select Gold Miners Investable Market Index and retains 35 securities in its portfolio. Canadian companies take half of their portfolio, while the United States, South Africa, and Australia round out the top four with double-digit exposure each. RING is the cheapest option in the gold mining

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market, charging only 39 bps in fees and expenses. The fund has been sufficient to handle assets worth $304.2 million and trades in good volume of 211,000 shares per day (read: 5 ETFs which are Up More Than 10 Percent in Volatile August).

U.S. Global GO GOLD and Precious Metal Miners ETF GOAU: Upward 9.9% This fund provides investors with access to firms engaged in the production of valuable metals through active (mining or production) or passive (possessing royalties or production flows ) means. It monitors the U.S. Global Go Gold and Precious Metal Miners Index, having 29 stocks in its basket.

of around 48 million shares. The fund follows the NYSE Arca Gold Miners Index, having 44 stocks in its basket.

Canadian companies account for half of the portfolio, while Australia (18.1percent) and the USA (17.2percent) round off the top three. The finance charges 52 bps in yearly fees (read: Fed Cuts Rate: Sector ETFs & Stocks Set to shoot up.

Sprott Gold Miners ETF SGDM: Upward 9.5percent This fund follows the Solactive Gold Miners Custom Factors Index, holding 31 stocks in its basket. Canada leads the market with 60%, followed by 20 percent in the United States and 17 percent in South Africa. The fund has

accumulated $198.3 million in assets and trades in moderate volume of about 45,000 shares every day. Also, it charges 50 bps in annual fees from investors.

VanEck Vectors Junior Gold Miners ETF GDXJ: Upward 6.6percent GDXJ monitors the MVIS Global Junior Gold Miners Index. Having 70 stocks in its basket, Canadian companies dominate the fund's portfolio at 46.5%, while Australia (25.3%) and South Africa (9.1percent) round up the top three.

Also, it has AUM of $4.5 billion and charges 53 bps in yearly fees. It trades in heavy volume of more than 15.4 Million shares on average each day.

The lion's share is taken by Canada at 56.8%, followed by South Africa (17.8 percent) and the United States (12.9percent). It has accumulated $26.6 million in assets and charges 60 bps in fees per year. Volume is light at almost 18,000 shares.

VanEck Vectors Gold Miners ETX GDX: Upward 9.8% This is the most common and actively traded gold miner ETF with AUM of $11.7 billion and average daily volume

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November 2019 SKILLINGS MINING REVIEW | 19

SAFETY

Mining, oil and gas employees at risk of hearing loss

R

esearchers have found that hearing loss is widespread in workers in the mining and oil and gas extraction industries.

Between 25 to 30 percent

of employees in the mining industry had hearing loss, according to a

published report. Around 61 percent of workers in mining and oil and gas extraction has already been exposed at work to hazardous noise levels. Certain chemical exposures in the industries also pose hearing loss dangers.

"Prevalence of hearing loss among noise-exposed employees within the Mining and Oil and Gas Extraction industries, 2006-2015" was reported in the American Journal of Industrial Medicine.

New, specific findings In the mining industry, 24 percent of all noise-exposed workers had hearing loss. Workers in the construction sand and gravel mining industry had the highest prevalence of hearing loss at 36 percent, followed by: • 31 percent of noise-exposed workers in uranium-radium-vanadium ore mining; • 28 percent in bituminous coal and lignite surface mining; • 27 percent in iron ore mining; and • 24 percent in copper ore and nickel ore mining.

Noise-exposed workers in coal mining support operations had double the chance of hearing loss compared with other industry jobs such as couriers and messengers. Workers in gold ore mining had a 71 percent higher risk of hearing loss than messengers and couriers. In the oil and gas extraction industry sector, researchers discovered that: • Overall, 14 percent of noise-exposed employees in the industry had hearing loss.

• Within natural gas liquid extraction, 28 percent of noise-exposed workers had hearing loss and a 76 percent greater chance of hearing loss compared to couriers and messengers.

But, no data had been available for two of the largest industries—crude oil and natural gas extraction and drilling oil and gas wells, indicating a need for more employee surveillance. The research is the first to study hearing loss prevalence and risk by industry within the mining and oil and gas extraction sectors.

Researchers at the National Institute for Occupational Safety and Health's (NIOSH) Taft Laboratory in Cincinnati, Ohio, conducted the recent study.

Preventing occupational hearing loss Noise exposures not only may cause hearing loss, according to NIOSH but also are related to elevated cholesterol levels and higher blood pressure. NIOSH's recommended limit for occupational noise exposure is 85 decibels. Noise levels are measured as an 8-hour, time-weighted average.

20 | SKILLINGS MINING REVIEW November 2019

Mining industry blacklist of companies that cave There is talk going on in the mining sector that some of the big players could blacklist contractors or suppliers who will not work on coal projects due to pressure from climate activists.

It comes after Melbourne based engineering company Aurecon recently cut ties with Adani. At the time Federal Resources Minister Matt Canavan called the decision ‘piss weak. Today the senator stated that virtue-signaling wouldn’t stop projects moving forward, it will only make Australian firms lose work to foreign suppliers.

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ADVERTISING INDEX

MINING INDUSTRY PEOPLE GoldMining Inc. announced the appointment of Dr. Ken Wang to its advisory board.

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Azcon .........................................19 Barr Engineering...........................9 CR Meyer....................................11 Global Minerals Engineering.....19 Golder Associates........................9

Titan Mining Corporation announced the closing of a senior secured credit facility with the Bank of Nova Scotia, and the appointment of Naomi Johnson as Vice President, Community Relations. Naomi Johnson joined Titan in April 2018 and is a global community relations executive, international development specialist and lawyer with 15 years of management experience in leadership positions across the private, public and not-for-profit sectors. Ms. Johnson brings a broad perspective to the development of sustainable and leading-edge approaches to stakeholder impact and risk management at Titan.

ing Officer and Andrew Cheatle as Vice President. Mr. Campbell is a Professional Certified Mining Engineer with over 30 years of extensive exploration and mining project experience across Africa. Mr. Cheatle is a mining industry executive and professional geoscientist with over 25 years of domestic and international experience

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African Gold Group Inc. appointed Malcolm Campbell as President and Chief Operat-

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November 2019 SKILLINGS MINING REVIEW | 21

STATISTICS

September 2019 crude steel production 1.1% on September 2018. France produced 1.2 Mt of crude steel in September 2019, a 10.2% decrease compared to September 2018. Spain produced 1.2 Mt of crude steel in September 2019, down by 1.0% on September 2018. The US produced 7.1 Mt of crude steel in September 2019, a decrease of 2.5% compared to September 2018. Brazil’s crude steel production for September 2019 was 2.4 Mt, down by 22.0% on September 2018. Turkey’s crude steel production for September 2019 was 2.7 Mt, down by 6.9% on September 2018. Crude steel production in Ukraine was 1.7 Mt this month, down 2.3% on September 2018.

W

orld crude steel production for the

64

W orld S teel Association (worldsteel) was 151.5 million tonnes (Mt) in September 2019, a 0.3% decrease compared to September 2018. World crude steel production was 1,391.2 Mt in the first nine months of 2019, up by 3.9% countries reporting to the

Statistics based on World Steel Association Report released on 25 October 2019 

compared to the same period in 2018. Asia produced 1,000.1 Mt of crude steel, an increase of 6.3% over the first nine months of 2018.

The EU produced 122.5 Mt of crude steel in the first nine months of 2019, down 2.8% compared to the same period of 2018. North America’s crude steel production in the first nine months of 2019 was 90.6 Mt, an increase of 0.3% compared to the same period of 2018. The C.I.S. produced 76.0 Mt of crude steel in the first nine months of 2019, down by 0.1% over the same period of 2018.

China’s crude steel production for September 2019 was 82.8 Mt, an increase of 2.2% compared to September 2018.

India produced 9.0 Mt of crude steel in September 2019, up 1.6% on September 2018. Japan produced 8.0 Mt of crude steel in September 2019, down 4.5% on September 2018. South Korea’s crude steel production was 5.7 Mt in September 2019, a decrease of 2.7% on September 2018.

In the EU, Germany produced 3.4 Mt of crude steel in September 2019, down by 4.0% on September 2018. Italy produced 2.2 Mt of crude steel in September 2019, up by

22 | SKILLINGS MINING REVIEW November 2019

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CRUDE STEEL PRODUCTION, SEPTEMBER 2019. Source – World Steel Association COUNTRY

SEPT 2019

SEP % CHANGE 2018 SEP-19/18

2019

% CHANGE

Austria

588

348

69,1

5 732

18,3

Mexico

Belgium

670 e

674

-0,6

5 990

-1,0

Bulgaria

55 e

5,2

472

-6,1

Croatia

SEPT 2019

COUNTRY

SEP % CHANGE 2018 SEP-19/18

2019

% CHANGE

1 465 e

1 638

-10,6

14 208

-8,2

United States

7 072

7 255

-2,5

66 200

3,2

North America

9 632

10 117

-4,8

90 620

0,3

406

435

-6,6

3 579

-8,3

Brazil

2 403

3 081

-22,0

24 618

-7,3

Chile

90 e

101

-10,6

731

-12,6

5e

13

-60,6

59

-28,7

Czech Republic

374

374

-0,1

3 581

-5,0

Finland

299

331

-9,9

2 714

-13,6

France

1 205

1 341

-10,2

11 243

-3,1

Germany

3 352

3 490

-4,0

30 552

-4,4

Colombia

110 e

100

9,8

859

-4,8

Greece

120 e

148

-18,9

1 009

-9,3

Ecuador

55 e

50

10,2

465

5,2

Hungary

109

154

-29,2

1 302

-12,4

Paraguay

2e

3

-26,0

14

-9,1

2 208

2 185

1,1

17 620

-3,9

Peru

100 e

100

0,0

921

1,2

Luxembourg

183

198

-7,5

1 666

-2,1

Uruguay

5e

5

-3,7

44

2,0

Netherlands

396

446

-11,1

5 017

-1,3

Venezuela

10 e

5

100,0

64

-44,7

670 e

824

-18,7

6 967

-8,4

51

59

-13,1

485

-4,9

South America

3 182

3 879

-18,0

31 295

-7,2

Egypt

497

669

-25,7

5 530

-3,5

1 175

1187

-1,0

10 641

-1,0

Libya

46

13

254,9

409

54,0

Sweden

398

280

42,0

3 706

5,1

South Africa

481

573

-16,0

4 513

-6,6

United Kingdom

599

637

-5,9

5 525

-4,4

Africa

1 023

1254

-18,4

10 451

-3,5

930 e

914

1,7

8 213

0,7

Iran

2 130 e

2 065

3,2

19 318

6,0

European Union (28) 13 386

13 656

-2,0 122 494

-2,8

Qatar

222

226

-1,7

1 970

-1,1

425 e

399

6,4

3 888

-1,1

293

233

25,7

2 456

4,2

Italy

Poland Slovenia Spain

Other E.U. (28) (e) Bosnia-Herzegovina

Argentina

65 e

72

-9,1

615

35,2

Saudi Arabia (1)

22

23

-3,1

174

-12,6

UAE

Norway

55 e

50

8,9

463

10,6

Middle East

3 070

2 923

5,0

27 632

4,3

Serbia

178

123

44,6

1 458

0,1

China

82 773

80 959

2,2 747 824

8,4

Turkey

2 733

2935

-6,9

25 286

-10,1

India

8 961

8 819

1,6

84 189

3,5

Other Europe

3 052

3 203

-4,7

27 996

-8,7

Japan

8 045

8 427

-4,5

75 639

-3,8

Byelorussia

220 e

211

4,3

1 978

10,0

South Korea

5 691

5 847

-2,7

54 130

-0,1

Kazakhstan

360 e

309

16,5

3 090

-8,5

Pakistan

275 e

415

-33,7

2 529

-33,4

35 e

34

2,9

287

-28,6

1 830 e

1 868

-2,0

17 027

-1,1

5 575 e

5 812

-4,1

53 775

-0,9

Thailand

380 e

576

-34,1

3 278

-35,1

1 745

1 787

-2,3

16 400

3,9

Vietnam (2)

1 695

1 265

34,0

15 502

53,8

60 e

56

7,1

486

-2,2

Asia

7 995

8 209

-2,6

76 016

-0,1

Australia

1 040 e

1 168

-11,0

9 746

-5,1

New Zealand

Cuba

20 e

20

-2,0

164

1,0

Oceania

El Salvador

10 e

9

7,9

78

5,7

Total (64 Ctry) (3)

Guatemala

25 e

27

-5,7

224

0,6

Macedonia

Moldova Russia Ukraine Uzbekistan C.I.S. (6) Canada

Taiwan, China

109 650 108 175

1,4 1 000 117

6,3

459

434

5,9

4 107

-6,2

49

48

2,6

499

1,9

508

481

5,6

4 606

-5,4

151 499 151 898

-0,3 1 391 227

3,9

(1) HADEED only. (2) partial data, approximately 75% of national total. (3) the 64 countries included in this table accounted for approximately 99% of total world crude steel production in 2018. e – estimate | r – revised

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November 2019 SKILLINGS MINING REVIEW | 23

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