Mining: Xstrata's B.C. coal play
Swiss mining giant Xstrata announced last week a $35 million joint venture to study the feasibility of a new coal mine in northeast B.C.
Xstrata Coal, a subsidiary of the Zug-based miner, has teamed up with Japan's JX Nippon Oil & Energy Corp. to initiative a pre-feasibility study of the Suska steelmaking coal project between Tumbler Ridge and Chetwynd, one of B.C.'s largest coal- producing regions. The project includes areas Xstrata acquired from First Coal Corp. and Cline Mining last year. The study is expected to be complete next year, at which point the companies will decide whether there's value in proceeding with the project.
Mining: Ivanhoe's name change
Rio Tinto (NYSE:RIO) has managed to take control of Ivanhoe Mines (TSX:IVN)and install a new management team and now plans to change the company's name.
Last week, Rio Tinto, which owns 50% of Ivanhoe, said shareholders would vote next month to approve a new name for the Vancouver-based company – Turquoise Hill Resources.
The name reflects the nature of Ivanhoe's flagship project Oyu Tolgoi, which is considered the world's largest undeveloped copper-gold project.
The mine, which is in Mongolia, began initial ore stockpiling late last month.
Pulp and paper: Catalyst's new plan
Embattled pulp maker Catalyst Paper has tabled a new plan to help it emerge from creditor protection with improved liquidity and a lot less debt.
Under an amended plan of arrangement, the company, which owns several mills in B.C. and Arizona, has asked for a US$120 million reduction in the number of notes to be issued under the plan, which would increase total debt reduction to US$435 million from US$315 million. The company also said 50% of the net proceeds from the sale of its interest in Powell River Energy would go to unsecured creditors, and that 100% of the company's new common shares would be issued to first-lien note holders.
Forestry: Timber committee appointed
The provincial government has formed a special committee to consider how to increase timber supply for the forest sector in the aftermath of the mountain pine beetle infestation. The committee, which consists of four Liberal and three NDP MLAs, will look at how changes to land-use objectives, the rate of harvest and conversion of volume-based tenures to area-based tenures could potentially increase the overall timber supply in B.C.'s interior. The beetle infestation is the largest in North American history and has wiped out 58% of the province's pine volume – a key commodity that supports the Interior forestry sector.
Mining: Mining renaissance continues
BC's coal sector helped drive a $2 billion increase in total mining revenue last year, according to a new PwC report.
Last week, the tax, audit and advisory firm said aggregate gross mining revenues from the province's mining companies totalled $9.9 billion in 2011. Metallurgical coal was the main driver behind the increase, PwC said, with shipments up 10% and prices up 42%.
The industry's overall net earnings changed little from 2010, however, totalling $3.7 billion.
Still, B.C.'s mining companies reported a 135% increase in capital expenditures last year.
