Twitter

Year: 2009

Inco’s Record in Indonesia Under Microscope – Mick Lowe (December/2000)

Mick Lowe’s column – On The Rock – was originally published December 6, 2000 in Northern Life, Greater Sudbury’s community newspaper.

What are the environmental and health effects of living near one of the world’s largest laterite nickel mining and smelting complexes, specifically Inco’s operation on the Island of Sulawesi in eastern Indonesia?

That was the big question on Evan Edinger’s mind when he went to visit the village of Soroako earlier this fall. Edinger is a post-doctorate fellow in geology at Laurentian University, and the first scientifically trained, independent observer from Sudbury to visit Inco’s Indonesian operations.

What Edinger found was a lush, mountainous tropical setting which, superficially, at least, has suffered little of the environmental devestation so sommon around Inco’s activities here On the Rock.

Much of the contrast, Edinger believes, is due to the difference in the chemical makeup of sulphide nickel ores, which is what we mine here in Sudbury, and laterite nickel ores, which is the type of nickel mined throughout the tropics.

Read more

Statement by Greater Sudbury Mayor John Rodriguez on the Xstrata Cutbacks

Greater Sudbury Mayor John RodriguezThis statement was released on February 11, 2009

I want to take an opportunity this evening to speak directly to the people of Greater Sudbury.

As Mayor of this great city, both here at home and wherever I have had the opportunity to travel, I have always said that, “if you want to know anything about mining, you come to Sudbury!”  Mining built this community and, though we have made strong advances in economic diversification, mining remains at the heart of our local economy.

On Monday of this week, 686 of our fellow citizens lost their jobs with Xstrata Nickel, and we were reminded once again that being the Mining Capital of Canada means not only benefiting from the boom cycles in metal prices, it means dealing with the bust cycles as well.  This week’s news is a devastating blow to this city, and it will have ripple effects across many sectors.  Just six to twelve months ago, these same employees were spreading the good fortune of their nickel bonuses throughout the community, creating strong demand for housing, cars, recreational equipment and entertainment.  Now their financial pain will also be strongly felt.

Monday’s announcement was not entirely unexpected. 

Read more

Sudbury Angry Over Xstrata Job Cuts – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

“Xstrata Nickel today [Feb. 9, 2009] announces plans to restructure its Sudbury operations in response to ongoing challenging market conditions.” With those words the Swiss mining giant axed 686 jobs in Sudbury, Ont., and touched off a firestorm of protest from residents and union leaders.

Some of the closures were expected. In November 2008, Xstrata said it would accelerate closure of the Craig and Thayer Lindsley mines that were near the end of their productive lifespans. Operations there ceased with this month’s announcement.

The Fraser mine complex will be placed on care-and-maintenance, and the Strathcona mill will run with two work shifts rather than four due to the reduction in feed tonnage. The smelter is expected to operate at a level similar to 2008 thanks to concentrates from the new Nickel Rim south mine and Xstrata Nickel Australasia. Concentrates from the Montcalm and Raglan mines, as well as third-party feed, will also be treated.

Not all the news is bad, just the loss of 686 jobs.

Read more

A Tune from the Nickelodeon – by Charles Baird (October, 1982)

Most of your readers will have sensed that they were being given a fevered caricature of Inco and the international mineral market in Mick Lowe’s Podium piece “Why Inco Must Be Nationalized”, in the July 19, 1982, issue of Maclean’s. Mr. Lowe is a Sudbury-based freelance journalist, well-known to us for his numerous Inco-related articles of the past, and we question his qualifications as a commentator on the international marketplace.

For example, a key statement in Mr. Lowe’s article is that Inco was debt-free in 1972 and now owes $1.1 billion. He also charges that “Inco’s profits in recent years have been invested everywhere but in Canada.” In fact, Inco’s debt in 1972 exceeded $500 million. This money, as well as profits, was used to finance an investment program of more than $1 billion undertaken in Ontario and Manitoba from 1967 to 1972. Inco has continued to invest in Canada, but did indeed invest outside Canada for two reasons: because Canadian nickel supplies were seen to be inadequate to meet market demand; and to diversity the company’s revenue sources so as to be less dependent on the world metal cycle.

Regrettably, there is no basis for any assumption that Inco’s shareholders have realized more from Inco’s Canadian operations than others. For example, from 1970 to 1980 the tax take from Inco by Canadian governments increased from $54 million to $260 million, or by 382 per cent, and our Canadian unionized workers’ hourly wage rates and related fringe benefits increased from $5 million to $15 million, or by some 200 per cent.

Read more

Why Inco Must Be Nationalized – Mick Lowe (July, 1982)

Inco must be nationalized, and the sooner the better. The need is pressing not because the firm’s management has squandered the immense Canadian wealth of the Sudbury, Ontario, and Thompson, Manitoba, ore bodies in ill-advised adventures in Guatemala, Indonesia and the United States. Nor is it because Inco’s management has exercised almost legendary arrogance and callousness with regard tot eh Canadian environment and in dealing with its Canadian work force (this summer’s strike at the company’s Sudbury operation was the third in seven years).

Inco must be nationalized for strictly economic reasons: it may be necessary in order to save the Canadian nickel industry, for never before has it been threatened at it is today. As stated in World Mineral Markets Stage II, a report recently released by the Ontario ministry of natural resources, North American nickel production will actually decrease over the next 10 years, even though total world nickel demand should increase moderately.

The projections on world nickel production made in the report should be disquieting  to all Canadians, and a truly national debate over its pat management and future development is long overdue. The sad truth is that, despite the projected increase in demand for nickel during the next decade, Inco’s share of the market will continue to decline because of the nature of its competitors: most of the newer nickel-producing companies tend to be in the Third World and state-owned.

Read more

Thayer Lindsley: The Founder of Falconbridge (Present Day Xstrata Nickel) 1882 – 1976

This profile came from the Canadian Mining Hall of Fame. The Canadian Mining Hall of Fame honours the mine finders and developers who helped develop our northern and rural regions and created enormous wealth for the country. For more exciting profiles on the individual who made Canada a global mining powerhouse, go to: http://www.halloffame.mining.ca/halloffame/

Thayer Lindsley, the father of such mining giants as Falconbridge Ltd., Ventures Ltd. and Frobisher, has been described as the greatest mine finder of all time.

Not only did he found Falconbridge, a multinational organization ranked now among the largest mining companies in the world, but throughout his long and extraordinarily dedicated career, Lindsley either found or was involved in the development of such other famous Canadian mining names as Sherritt Gordon, Giant Yellowknife, Canadian Malartic, United Keno Hill, Lake Dufault and Opemiska Copper, Connemara in Southern Rhodesia and Whim Creek in Australia.

His geological and creative genius touched the fortunes of perhaps more than 185 companies in all.

In a book on exploration he published in 1966, he aptly described the kind of attributes that made he himself a giant among mining men: “To be a successful mine finder,” he said, “one must have determination, knowledge, tenacity, a rugged constitution to withstand the rigors of outdoor life, and enjoy overcoming obstacles of every description. Also, a little dash of imagination and enthusiasm is helpful.”

Read more

Aboriginal Communities and the Mining Industry: Moving Forward in 2009 – by Juan Carlos Reyes

Juan Carlos Reyes is the organizer of the annual Learning Together conference and an aboriginal consultant with Efficiency.ca. He is passionate about human rights and works tirelessly to help improve the lives of Canadian aboriginal people.

What a difference a few months can make! If I had written this article six months ago and attempted to predict the outlook of the mineral resource industry, it probably would have been a much different picture. As we all know, the financials of the minerals industry are on a real roller-coaster ride, and currently it seems to be still coasting downward. This decline tends to make a big difference in the amount and quality of capital available to the start or continuation of new initiatives. This has particular significance for aboriginal groups as this is where we would typically see new negotiations taking place.

On the other hand, not much has changed for aboriginal communities across Canada — poverty levels are still running high, government negligence is still a major concern and education about the industry throughout most communities is nearly nonexistent. Add to this the amount of new information now available regarding the need to consult and accommodate, and the impact of the recent jail terms served by the Chief and council from KI First Nation, and you have a recipe for tough negotiations ahead.

Read more

Mining as a Core Supplier to the Global Clean Energy Revolution – by Paul Stothart

Paul Stothart is vice president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues.

Few subjects are receiving as much attention in the daily media as that of our societal need to move towards a clean energy economy. This theme was fundamental to the platforms of all the Canadian federal parties in the recent election — each featuring an array of programs supporting this transition. In the United States, the platform of President-elect Obama talks extensively of hybrid vehicles, electricity from renewable sources, low carbon standards and the ultimate objective of eliminating oil imports from the Middle East and Venezuela within a decade. Republicans in Washington talk of nuclear power, carbon capture and sequestration and battery development, among other initiatives.

Beyond the political and media coverage, it is evident that few subjects offer comparable transformative potential as changes to the world’s energy infrastructure. Developed economies have been driven for two centuries by the industrial combustion of fossil fuel — indeed there has long existed a direct macro-economic correlation of living standards with per-capita energy consumption. Societies that have been able to efficiently generate and transport energy from fossil sources have become far wealthier than those that cannot. To shift away from this dependency, even in a gradual manner, requires major changes in our underlying financial, fiscal and technological practices.

The market potential for new products and technologies associated with such a shift is staggering.

Read more

Xstrata Layoffs in Sudbury: Short-term Financial Gain and Long-term Hiring Pain – by Stan Sudol

Global commodity prices have fallen off the cliff. ThyssenKrupp AG, Germany’s largest steelmaker, recently stated that not since the end of the Second World War has the demand for steel fallen so rapidly. Steel is the fundamental building block of all infrastructure and manufacturing activities.

These are extraordinary economic times, so we all knew this was coming.

Yet no one was prepared to see Xstrata Nickel chop its Sudbury workforce in half – 686 layoffs and 210 early retirements. Like most in the community, I am shocked and very, very angry. This kneejerk reaction from Zug, Switzerland has two serious repercussions that will affect the Canadian mining sector for a long time. The first is this: should Canada have allowed foreign companies to take over such a strategic resource as the Sudbury Basin with such weak controls on jobs and investment and, second, how will these severe employment cutbacks impact impending labour shortages in the mining sector?

To be fair, regardless of who owns the two nickel miners, the fundamental issue is that you cannot continue operating if it costs $6 to mine a pound of nickel and you can only sell it for $5.

Read more

Sudbury Community Furious About Xstrata Layoffs – by Bill Bradley

Northern Life, Greater Sudbury’s community newspaper, gave Republic of Mining.com permission to post Bill Bradley’s article. www.northernlife.ca

Many Sudbury residents are furious that Xstrata Nickel laid off 686 workers Feb. 9 given an anti-layoff agreement the Swiss company signed in 2006 when it took over Falconbridge Ltd.

“In July 2006, the Minister of Industry allowed the Swiss-based Xstrata to buy-out Canadian based Falconbridge, on the condition that Canadian jobs would be protected for three years,” said Sudbury New Democrat MP Glenn Thibeault, in a release.

“This (announcement of layoffs) is cold comfort to the 700 Canadians who have lost these so-called protected jobs,” said Nickel Belt New Democrat MP Claude Gravelle.

Both federal politicians said there is still time for the federal government to say no to the job cuts.

In an Xstrata release dated July 25, 2006, it is stated, “to demonstrate net benefit to Canada in order to obtain the approval under the Investment Canada Act, Xstrata has provided to the minister several important commitments in respect of Falconbridges’s operations and employees in Canada.”

Read more

Sudbury’s Mood Fiery as Furnaces (1977) – by Elmer Sopha (1925-1982)

This article was written by former Sudbury lawyer and MPP in October, 1977, in response to the then recent massive layoffs of 2,800 local workers by Inco. Ironically, some of the issues in his column will resonate with the recently laid off Xstrata workers in February 2009. The more things change, the more they stay the same! – Stan Sudol

Once upon a time Local 6500 of the United Steelworkers of America was the vehicle for economic security of 18,000 hourly rated workers in Sudbury. Those were the salad days of high employment which marked feverish exploitation of the magnificent geological structure disposed, it is said, on the Sudbury basin by a vast errant meteor a couple of billion years ago.

It hosts 14 metals and the one most talked about is nickel and that is probably why the complex came to be known as The International Nickel Company of Canada Limited. But it is now an age of efficiency, the acronym is its phylactery, and the name perforce has been shortened to Inco Ltd.

Dave Patterson, young in years and not yet hardened against the realities of life, is president of the union, which by slow and steady attrition numbers only 11,000 these days.

As one listens to him speak in public one senses that his idealism is intact. He conveys genuinely and humanely the reflection of sorrow and uncertainty which beset 2,800 workers and their families who have received an impersonal slip attached to their time cards which told them tersely that their jobs no longer existed.

Read more

Sudbury’s Elmer Sopha – 1925-1982 – A Historical Profile

The following profile was originally published in the South Side Story – a Sudbury weekly paper on January 2005. He was called the “northern gadfly” and was one of Sudbury’s most flamboyant and successful criminal lawyers. Elmer was born in Cobalt and began his law practice in Sudbury after completing his studies and serving in …

Read more

Xstrata Nickel Announces Restructuring of Sudbury Operations (Company Press Release)

Toronto, 9 February 2009

Xstrata Nickel today announces plans to restructure its Sudbury operations in response to ongoing challenging market conditions.  The restructuring follows the announcement in November 2008 of the accelerated closure of the end-of-life Craig and Thayer-Lindsley operations at Sudbury, both of which will cease operations with immediate effect.

As a result of the restructuring, the Fraser Mine Complex will be placed on care and maintenance and associated support and administrative functions will be reorganized. The Strathcona Mill, with annual capacity of 2.7 million tonnes of ore, will be reduced to two work shifts from four as a result of reduced feed. In addition, the Fraser Morgan development project will be deferred. This project will be evaluated on an ongoing basis and may be re-initiated when economic conditions allow.

Today’s announcement does not impact the world-class Nickel Rim South project in the Sudbury basin.  The project remains on schedule to ramp up to 60% of its ultimate 1.25 million tonne per annum production capacity in 2009, equivalent to approximately 7,400 tonnes of nickel.  Nickel Rim South will become a low-cost, cornerstone operation in Sudbury, generating annual production of approximately 18,000 tonnes of recoverable nickel by early 2010. 

Read more

Xstrata Says Demand Collapsing, 686 Jobs Lost – by Bill Bradley

Northern Life, Greater Sudbury’s community newspaper, gave Republic of Mining.com permission to post Bill Bradley’s article. www.northernlife.ca

The global economic meltdown is now biting Greater Sudbury. Gone for good are 686 full-time jobs at Xstrata Nickel, after the company announced a major restructuring of its Sudbury operations.

“Demand for our product has collapsed,” said Marc Boissonneault, vice-president Xstrata Nickel, Sudbury on CBC Radio One, Monday morning.
“We can’t carry on business as usual.”

As a result, the following will occur:
– 686 permanent employee positions will be made redundant, affecting both union (600) and salaried (86) employees;
– three-day shutdown will take place immediately to implement restructuring and talk to employees;
– 300 employees will be moved to the higher-value Nickel Rim project, displacing some contractors;
– Fraser Mine will be placed on care and maintenance for now;
– accelerated closure of Craig and Thayer-Lindsley operations;
– Strathcona Mill will be reduced from four shifts to two;
– Fraser Morgan development project will be deferred to be evaluated and possibly re-initiated.

Read more

OMA Chairman George Flumerfelt Headlines Canadian Mining Magazine

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association Chairman George Flumerfelt is featured in the January 2009 issue of the Canadian Mining Journal.  “Keeping Pace With Reality” is the headline on his article in the magazine.  Mr. Flumerfelt, who is President of JS Redpath, took over as Chairman of the OMA in June 2008.

In the article, he catalogues some of the initiatives being carried out by the OMA to help its members get through the current rough patch and lay the groundwork for the foundations of future growth and development.  “There is no doubt the current downturn in prices has come upon us more suddenly that those of years past,” he said “Also, when coupled with the world credit crunch and all the talk of global recession, government bailouts of banks and formerly stable household name companies, the situation seems to be more serious this time.”

“Hopefully, with all the stimuli being applied by countries around the globe, the mining industry will start to recover before too long,” Mr. Flumerfelt added.  “One thing we do know for sure is that recovery will come as companies and individuals adjust to the current market realities.”  And on an optimistic note, he said “We need to remember that demand for mineral commodities will return and inevitably better pricing will  follow.  It is hard to believe that 2009 is going to be a great year but there is some hope for price recovery in 2010.”

Read more