2012 – Page 132 – Republic of Mining

Quebec’s new budget is business as usual [Resources Quebec] – by Tasha Kheiriddin (National Post – March 22, 2012)

March 22, 2012

The National Post is Canada’s second largest national paper.

Plus ça change, plus c’est la meme chose. Once again, the Quebec government is championing government intervention as the cure for the province’s economic malaise.

On Tuesday, provincial finance minister Raymond Bachand presented the province’s 2012-13 budget. After digging Quebecers into a deep financial hole — a whopping $184-billion debt, representing 55% of provincial GDP — the government is promising to dig a few more, in the form of multi-billion dollar mining projects, in which it will take an equity stake. Mr. Bachand credits former Quebec premier Jacques Parizeau with the idea: “It comes down to what Mr. Parizeau said … we have to make sure we get a share of the business.”

The mining proposals form part of Premier Jean Charest’s “Plan Nord,” an ambitious northern-development proposal that brings back memories of the massive Hydro Quebec developments at James Bay in the 1970’s. To help develop the north and exploit the province’s abundant mineral resources, the government is setting-up Resources Québec, a new Crown corporation that will oversee a $1.2-billion equity portfolio. And assuming commodity prices remain high, the government expects to collect $4-billion in mining royalties over the next 10 years.

[Canadian] Mining sector expects hiring boom – by Paul Brent (Globe and Mail – March 22, 2012)

March 22, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

These are high times for the mining business. It has shrugged off the effects of the 2008 recession on the strength of robust commodity prices. Canada is well-positioned to supply the resource-hungry economies of China and India, our markets are the preferred destination for companies seeking financing, and the industry has $137-billion worth of investment earmarked for the next five years.

What could go wrong? Simply put, running out of people to run the nation’s $36-billion-a-year mining machine.

“There is a huge shift in demographics in the country, in the mining industry, and we are certainly experiencing it in our company,” said Marcia Smith, senior vice-president of sustainability and external affairs at Teck Resources Ltd.

The Vancouver-based coal and copper producer, which employs more than 8,000 people across the country, plans to hire 4,600 people over the next few years.

Provinces’ budgets get a lifeline from resource royalties – by Barrie McKenna (Globe and Mail – March 22, 2012)

March 22, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA— China is becoming a key line item in the budgets of Canada’s resource-rich provinces.

From Alberta and Saskatchewan in the West to Quebec in the East, China’s thirst for commodities such as oil, fertilizer and iron ore is no longer just about jobs and economic activity – the gusher of royalties is also helping provinces balance, and even pad, their books.

On Wednesday, Saskatchewan unveiled a budget with a small surplus for 2012-13 thanks to sharply higher oil and potash royalties. Potash will bring in $705-million, up 36 per cent from last year. Oil will generate another $1.6-billion in royalties, up 8 per cent. Saskatchewan now gets nearly 30 per cent of its revenue from various resource royalties.

Quebec Finance Minister Raymond Bachand predicted on Tuesday that royalties from the province’s booming mining industry will grow nearly tenfold over the next decade, putting $4-billion into provincial coffers.

Duluth sets Bechtel parameters for 100 year copper-nickel-pgm mine PFS – by Lawrence Williams (Mineweb.com – March22, 2012)

June 19, 2013March 22, 2012

www.mineweb.com

Duluth Metals’ huge copper-nickel-pgm-gold resource on the Duluth complex in northern Minnesota moves on a stage with top engineering company Bechtel being given the parameters on which to base a PFS

HONG KONG (Mineweb) – Talking to Duluth Metals Chairman and CEO, Chris Dundas at Mines & Money Hong Kong he remains extremely enthusiastic about his monster mining project in Northern Minnesota, USA which, if and when it comes to fruition, will become one of the world’s great underground mining operations with a mine life probably well in excess of 100 years.

Top engineering company Bechtel has been retained to undertake the preparation of the NI 43-101 Prefeasibility Study (PFS) on the initial project based primarily on the Nokomis section of this vast resource and the parameters under which Bechtel has been instructed give a great indication of the scale of operations envisaged.

Bechtel has thus been instructed to prepare its study based on the following:

$5B rail line to boost Quebec resources – by Nicolas Van Praet (National Post – March 22, 2012)

March 22, 2012

The National Post is Canada’s second largest national paper.

MONTREAL – It rated just a six-paragraph mention among hundreds of pages of Quebec government budget documents. But it will be one of Canada’s largest infrastructure projects when it gets off the ground – a multibillion-dollar effort to build a huge railway across an isolated stretch of rugged land and accelerate the province’s push into natural resources.

Canadian National Railway Co. and pension fund manager Caisse de dépôt et placement du Québec are teaming up on an estimated $5-billion project to lay down a new track stretching 800 kilometres from the port of Sept-Îles north past Shefferville into the mines of the Labrador Trough. The aim is to serve major iron ore producers like Cliffs Natural Resources and juniors like Adriana Resources Inc., as well as other current and potential miners, that are searching for a better way to get their Quebec-produced material to international markets.

The project is in its early stages but is expected to be completed by 2017 if talks underway with mining companies yield firm transport agreements. Once those commitments are reached, the railway will do a feasibility study.

Quebec banking on big windfall from mining royalties: provincial budget – by Andy Blatchford (Canadian Business Magazine – March 20, 2012)

March 21, 2012

Founded in 1928, Canadian Business is the longest-publishing business magazine in Canada.

The Canadian Press

QUEBEC – The Quebec government is banking on a royalty bonanza from its natural-resources sector to help Canada’s most indebted province begin its long climb out of the red.

In releasing its 2012-13 budget Tuesday, Quebec revealed that its path to prosperity hinges on whether it can cash in on its abundance of minerals, forests and hydroelectricity.

The document calls for a $1.5-billion deficit in 2012-13, but says the government remains on track to fulfil its long-held pledge to balance the budget by 2013-14.

The budget, possibly the last for an unpopular Premier Jean Charest before the next election, also tries to strike a positive populist tone for voters: no new tax hikes or user fees.

In the next election — which must be called before the end of 2013 — Charest will likely portray himself as a sound economic manager, while at the same time hammering away at the uncertainty of sovereignty.

Ring of Fire mining region in Ontario requires extensive infrastructure development – by Don Procter (Daily Commercial News and Construction Record – March 21, 2012)

March 21, 2012

http://dcnonl.com/

The Ring of Fire (ROF) could become one of the most significant mining opportunities in Ontario in a century, according to a provincial government spokesperson.

The region, 500 kilometres north of Thunder Bay, Ontario, is rich in “globally-significant” minerals such as chromite and nickel — key ingredients in stainless steel, a material in big demand in countries like China and India.

Extending over a swath of hinterland the size of the Greater Toronto Area, east to Port Hope and north to Barrie, the ROF will require extensive infrastructure development, including access roads, rail and power.

The development and other major mining projects in Ontario’s north spell good news for builders in coming years but the construction industry is under pressure to develop a skilled labour pool to meet the demand.

Christine Kaszycki told delegates at the Ontario Construction Secretariat’s 12th Annual State of the Industry and Outlook Conference recently that to date $208 million has gone into exploration of what is estimated to be several billion dollars worth of development in the ROF. An additional $84 million will go into exploration this year.

OMA high school video competition So You Think You Know Mining attracts record number of entries

April 5, 2015March 21, 2012

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.

The Ontario Mining Association’s high school video competition So You Think You Know Mining, which is now in its fourth year, continues to attract more entries. Momentum keeps building with dramatic increases in the level of participation of every edition. This year, more than 135 videos were received, which is approximately 70% more than the 80-plus last year.

Video entries arrived electronically from all parts of the province and students from high schools we had not seen SYTYKM entries from previously have been received for the judges’ consideration. “We try every year to keep the SYTYKM video competition fresh and interesting for students and educators,” said OMA President Chris Hodgson. “It is gratifying to see this response. We know these students invest a great deal of creativity, energy and time into making their productions.”

This year’s competition is making available opportunities to win $33,500 in prize money, an $8,000 increase of what was on the table last year. Several entries eligible for the Early Bird draw for $500 were received by March 1. Other key dates in 2012 are April 1 to 15 for the determination of nominees for the People’s Choice and OMA Academy Award, April 20 to June 3, which is the voting period for the People’s Choice Award, and May 22 when winners will be determined and notified.

In West Africa, a Canadian mining company pioneers ‘the new humanitarianism’ – by Geoffrey York (Globe and Mail – March 21, 2012)

March 21, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

BURKINA FASO – Mining company boss Steve Letwin was ecstatic when he struck a precedent-setting deal with the Canadian government to work together on a training project for African youth. “I think it’s the model of the future,” says the president of IAMGOLD Corp., the Toronto gold miner that operates the biggest mine in the West African country of Burkina Faso.

Many aid experts are less thrilled by the controversial $7.5-million deal between IAMGOLD, the Canadian International Development Agency, and private aid group Plan Canada. They say the miner’s partnership with CIDA amounts to a taxpayer-funded benefit for a highly profitable corporation.

But like it or not, this may be the shape of things to come. The United States has done 900 such deals between its official aid agency and private companies. Now Canada is heading in the same direction, with four similar projects in recent months. “Welcome to the new humanitarianism,” says one of the skeptics, Toronto physician Samantha Nutt, founder of the aid group War Child.

Iron ore producers undeterred by slowing growth in China – by Nicolas Johnson (Globe and Mail – March 21, 2012)

March 21, 2012

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The world’s largest miner may have sent a chill through global markets with a warning that growth in China’s steel output is slowing, but Canadian suppliers of iron ore have no plans to slow their expansion plans.

Rio Tinto Group, which controls Canada’s biggest producer of iron ore, a key ingredient in steel, said in a presentation that it’s continuing to build mines in Quebec and Newfoundland and Labrador. ArcelorMittal, the world’s biggest steel maker and the No. 4 producer of iron ore, is pursuing a $2.1-billion expansion in Quebec.

China is the world’s fastest-growing major economy and the biggest consumer of materials such as iron ore, coal, copper and gold – and prices for those products react to changes in the outlook for demand. That’s particularly important to Canada since companies that produce or process those commodities account for many of the listings on the Toronto Stock Exchange, the country’s main bourse.

Quebec bets on resource boom – by Nicolas Van Praet (National Post – March 21, 2012)

March 21, 2012

The National Post is Canada’s second largest national paper.

QUEBEC — The Quebec government is wielding a heavier hand in the province’s economy, forcing every business with more than five people to institute employee retirement savings programs and grabbing higher equity stakes in mining and hydrocarbon projects.

The language the Liberal government of Jean Charest used in its budget presented Tuesday suggests it is keen to push forward with oil and gas exploration and commercialization despite public opposition, saying it is “risky” to postpone the development of natural resources. It said it would start awarding oil and gas exploration licences by way of auction.

It also emphasized its vision of developing Quebec’s northern territory to generate much-needed revenue. The government announced that Canadian National Railway Co. and the Caisse de dépôt et placement du Québec are partnering on a new 800-kilometre rail line worth several billion dollars between the port of Sept-Îles and the Labrador Trough mining site. And it said Valener Inc.owned utility Gaz Métro will study the feasibility of building an estimated $750-million natural-gas pipeline to the Côte-Nord region.

Brazilian miner [Vale] invests $3.4 billion in Sudbury complex – by Lindsay Kelly (Northern Ontario Business – March 19, 2012)

March 20, 2012

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Vale makes capital commitment

Five years after Inco was purchased by Brazilian mining giant Vale, the company is pouring unprecedented levels of capital into its operations across Canada, with the North poised to reap a share of the benefits.

In November 2010, Vale announced it would be embarking on a $10-billion investment program across the country over the next five years, with a third of that going into its Sudbury operations.

“For Sudbury, $3.4 billion has been targeted over the next few years,” said Angie Robson, manager of corporate affairs for Ontario operations at Vale. “It certainly speaks to Vale’s commitment to Sudbury and the fact that we certainly have a long future of mining here.”

Dick DeStefano, executive director of the Sudbury Area Mining Supply and Services Association (SAMSSA), said the promise of spilloff from the Vale investment is unique because that amount of capital from a company has never been concentrated in such a short period of time.

Change Canadian immigration policy to attract skilled workers [for mining sector] – by David Garofalo (Canadian Business Magazine – March 13, 2012)

March 20, 2012

Founded in 1928, Canadian Business is the longest-publishing business magazine in Canada.

David Garofalo is the President and CEO of Hudbay Minerals Inc.

Canada is rightly perceived as an emerging natural-resource superpower, with the sector generating upwards of 11% of our GDP. Mining alone accounts for almost $9.7 billion in capital spending, according to the Mining Association of Canada. That’s why we should all be concerned when study after study declares the lack of skilled workers one of the biggest threats to our future competitiveness.

The issue isn’t limited to natural resources—labour shortages are poised to affect high-tech, construction and other drivers of growth, too. Ottawa appears to recognize the problem’s magnitude and is floating some creative policy solutions. Immigration Minister Jason Kenney recently suggested giving employers a more active role in the immigration process by having them identify applicants who could be expedited through the system to f ill immediate openings. But the government needs to move fast.

It is well known in mining circles that there is a chronic deficit of skilled and professional workers, as well as a significant projected shortfall in semi-skilled and other labour required to grow the industry. More than 100,000 workers will be needed over the next 10 years to staff planned projects and counter attrition due to retirement. Considering the industry’s workforce today stands at just over 200,000, the shortfall will be vast. The only way to manage a human resources crisis this acute is to pursue a two-track strategy.

MEDIA RELEASE: First Nation and Conservation Groups Seek Investigation of Exploration Company God’s Lake Resources by Securities Regulator

March 20, 2012

For Immediate Release March 20, 2012

This joint media release was issued by: Kitchenuhmaykoosib Inninnuwug First Nation; MiningWatch Canada; Earthroots; Ecojustice and Wildlands League

TORONTO – Today four conservation groups have joined with the northern Ontario Oji-Cree community Kitchenuhmaykoosib Inninuwug or “KI” to request the Ontario Securities Commission investigate junior exploration company God’s Lake Resources (stock symbol GLR). KI and the groups are concerned that GLR may have made misleading statements in its public filings. The
company’s documents suggest the company was making progress towards an agreement with KI to allow exploration on leases and claims held by GLR and within KI’s traditional territory.

“Despite repeated correspondence from KI that it had placed a moratorium on all mining exploration in their homeland, from what we have reviewed, GLR has not yet communicated this risk to their investors” said Justin Duncan, staff lawyer at Ecojustice, “as a result, we have asked the Securities Commission to investigate whether GLR has violated the Ontario Securities Act.”

“The KI moratorium on mining exploration is no secret” said KI Chief Donny Morris. “We have said in writing, we have said on Youtube, we have said it on the radio and we have said from jail and we will say it again:

PNG the worst country for mining project political risk – Behre Dolbear – by Dorothy Kosich (Mineweb.com – March 20, 2012)

March 20, 2012

www.mineweb.com

The United States is the worst ranked nation in terms of mining permitting delays, while South Africa mining projects may encounter more corruption and social risk factors.

To download the free survey report, “2012 Ranking of Countries for Mining Investment Where ‘Not to Invest'”, go to http://www.dolbear.com

RENO (MINEWEB) – In its annual ranking of countries in terms of political risks for mining investment, Denver-based mining business consultants, Behre Dolbear, has ranked Australia, Canada, Chile, Brazil and Mexico as the top five nations in which to locate mining projects.

The five lowest-scoring nations were Russia, Bolivia, the Democratic Republic and Kazakhstan with Papua New Guinea bringing up the rear as the worst in terms of political risk for mining projects.

The 25 nations considered in this year’s survey were ranked on seven criteria: economic system, political system, degree of social issues affecting mining, delays in receiving permits, degree of corruption, stability of the country’s currency, and the competitiveness of the nation’s tax policy.