2012 – Page 20 – Republic of Mining

Goma’s fall leaves Congo afraid of score settling and all-out war [mineral resources] – by Geoffrey York (Globe and Mail – November 21, 2012)

November 23, 2012

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.

JOHANNESBURG — The rebel takeover of the key Congolese city of Goma has sparked fears for the future of one of Africa’s biggest and most war-torn countries.

In the short term, the victory by the M23 rebels could trigger a wave of reprisal attacks on civilians in the city of a million people. Thousands of displaced people, in the chaos of the rebel advance, are fleeing out of Goma or into the city from rural camps.

In the longer term, the rebel victory could destabilize and weaken the fragile government of the Democratic Republic of Congo, opening the door for a foreign carve-up of eastern Congo, a mineral-rich region that has attracted rebels and invaders for many years.

The Rwandan-backed rebels, commanded by indicted war-crimes fugitive Bosco Ntaganda (known as “the Terminator”), walked into Goma almost unopposed on Tuesday after the city was abandoned by Congo’s notoriously underpaid and unreliable army.

United Nations peacekeepers, who had deployed helicopters to strafe the rebels with cannons and rockets on Sunday in a futile attempt to slow their advance, appeared to give up and just stood by watching as the rebels took the city. French Foreign Minister Laurent Fabius said it was “absurd” that the 17,000-member UN force was unable to stop a few hundred rebels.

Why DR Congo’s volcano city of Goma matters – by Theodore Trefon (BBC News Africa – November 20, 2012)

November 23, 2012

http://www.bbc.co.uk/news/

Theodore Trefon is senior researcher at the Royal Museum for Central Africa and author of the blog Congo Masquerade: The political culture of aid inefficiency and reform failure.

Goma lies at the foot of an active volcano in the Democratic Republic of Congo and on the border with Rwanda. It matters today because it testifies to the powerlessness of the Congolese government and the United Nations to stop fighting and tit-for-tat violence.

The border city also matters because it could be an indicator of the unravelling of the Rwandan president’s authority. In Rwanda, President Paul Kagame is under pressure from hardliners frustrated by the continued presence of opposition forces who have found sanctuary on the Congolese side of the border.

President Kagame is also increasingly seen as an embarrassment to touchy foreign partners. M23 rebels have now entered Goma; the governor of North Kivu has fled to Bukavu by boat and hundreds of thousands of people are fleeing the city helter-skelter without having anywhere to go.

War, rape and the illegal extraction of minerals – an old story – matter more and more.

Coltan: Michael Nest – Book Review – by Stephen Williams (African Business – September 10, 2012)

November 23, 2012

http://africanbusinessmagazine.com/main-articles/ic-publications

Just one of many resources that the DR Congo has in abundance, coltan, has received an unprecedented amount of attention from Western-based NGOs. They accuse the world’s technology corporations of fuelling the bloody conflict in the eastern Congo region where this metal is found. More accurately termed columbite-tantalite, but universally known by its abbreviation ‘coltan’, author Michael Nest explodes many of the myths that have grown around this controversial metal.

Like any good researcher, Nest takes the time to crosscheck and corroborate the basic facts and figures. One of the first ‘facts’ that he debunks is the commonly cited figure of 80% as the DR Congo’s share of the world’s reserves, or even the world’s production of coltan.

The earliest article he could find that gave this figure was a story from Agence France-Presse that quoted the 80% as Africa’s total, which was then repeated in March and April 2001 respectively by the UK’s Guardian newspaper and New Scientist magazine. It was the BBC News website, in the same year, that first attributed the 80% tag to DR Congo itself.

Nest tells us that there is no shortage of coltan, and it is, in fact, found in many countries around the world. The author’s own research suggests an “informed estimate” that Central Africa has about 9% of the world’s total and the DR Congo has about 7-8% of global reserves. Nest also believes that for much of the 2000s, the DR Congo may have produced around 20% of the world’s total, but historically the largest producer has been Australia.

Mining’s deep-rooted male chauvinism keeps glass ceiling firmly in place – report – by Dorothy Kosich (Mineweb.com – November 21, 2012)

November 23, 2012

http://www.mineweb.com/

The dearth of women executives running mining operations and mining companies is not due to a skills shortage, as the overwhelmingly male-dominated industry claims.

The full report, The Pathway Forward: Creating Gender Inclusive Leadership in Mining and Public Leadership, is available at: http://www2.carleton.ca/cwppl/ccms/wp-content/ccms-files/Women-in-Mining-2.5.pdf

RENO (MINEWEB) – Despite the whining of mining companies concerning a critical shortage of skilled employees during an era of increasing numbers of female university graduates in engineering and technology programs, a university study made public Tuesday found women only comprise 18% of those employed in the Canadian mining sector.

A report by Carleton University’s Centre for Women in Politics and Public Leadership in Ottawa finds women remain under-represented in all of the mining industry’s employment opportunities, from entry level jobs to leadership posts.

At 18%, the number of women employed in the mining industry is very low compared to other key sectors such as finance (61.53%), service (71.86%), public administration (47.7%), manufacturing I21.7%), tourism and transportation (45.21%), and energy (24.6%).

The Pathway Forward: Creating Gender Inclusive Leadership in Mining and Resources Report – by Umut Riza Ozkan and Clare Beckton (November 2012)

November 23, 2012

This report was done by the Carleton University’s Centre for Women in Politics and Public Leadership. This organization promotes equitable representation of women in democratic institutions at all levels of government and in all positions of leadership within the public, private and non-profit sectors.

Executive Summary

Canada is a major player in the world mining industry, producing more than 60 different minerals and metals. The Canadian mining industry provides an important contribution to Canada’s economy, accounting for 4.5% of Gross Domestic Product (GDP) and 23% of Canadian exports in 2011. Moving forward, however, the industry faces key challenges, such as serious labour
shortages due to an aging workforce, requiring strong recruitment of new talent. According to the Canadian Mining Industry Employment and Hiring Forecasts Report (2011), the mining industry will require 45,760 new people by 2016 and 75,280 new workers by 2021.

Despite the looming labour shortage, women remain underrepresented in all of the industry’s employment opportunities, from entrance positions to leadership posts. In fact, women’s employment in the mining industry – at around 15% for the past 14 years – is very low compared to other key economic sectors: mining (18.6%), service (71.86), public administration (47.70%), manufacturing (21.70%), energy (24.56%), finance (61.53%), tourism and transport (45.21%). Women’s employment did marginally increase from approximately 14% in 1988 to 18.6% in 2011.

Group worried about metals in Sudbury soil – by Carol Mulligan (Sudbury Star – November 23, 2012)

November 23, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

A committee concerned about the health of Sudburians is calling on the government of Ontario to fill what it says is a gap in a study that looked at metals of concern in Sudbury’s air, water and soil.

Recommendations from the Sudbury Community Committee for Human and Environmental Health are the next logical step to the Sudbury Soils Study, says the committee and an environmental expert it commissioned to review the study.

The Sudbury Soils Study was a $15-million, eight-year study of the effects of a century of mining on the soil, air and water of the Sudbury Basin. The committee says the study didn’t consider an important factor relating to Sudburians’ health — the quality of the air inside their homes.

Scientific data collected for the study, conducted by the Sudbury Area Risk Assessment group, included indoor dust testing at 91 homes in five communities in Sudbury. That sampling showed, in many of those homes, levels of metals such as nickel and lead three to six times higher than concentrations those metals in soils in the areas.

The dust samples were collected in Falconbridge, Copper Cliff, Hanmer, Coniston and Sudbury Centre, some of which were dubbed hot spots because of smelting activities over the years.

Candidate votes to save ONTC [Gerard Kennedy] – by Sebastien Perth (Sudbury Star – November 23, 2012)

November 23, 2012

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

The decision to sell off Ontario Northland should be reviewed, but Northern Ontario does not need another level of government to promote economic growth.

Those are just a few of topics Ontario Liberal party leadership candidate Gerard Kennedy covered during a campaign stop at past Sudbury poet laureate Roger Nash’s house Thursday. About Ontario Northland, Kennedy said it wasn’t helping either passengers or industry.

“I’m going to review that decision (to shut down Ontario Northland). I’m not sure that is key part of a Northern strategy. I know a lot of people are upset, but Ontario Northland ran at a level that was almost not helping the passenger and not helping industry,” he said.

“The Ontario Northland … has to be one that is fully viable. The question is how do you do it that way. Is it part of the Ring of Fire outlook? We’ll have to look at that.” Born in The Pas, Man. , Kennedy said he knows full well the discrepancy in services offered to northern areas.

“I am interested in seeing what we can do in the North and I know some of my colleagues have mentioned things. I’m from northern Manitoba, so you guys are all southerners to me.

MINING ASSOCIATION OF CANADA NEWS RELEASE: Commodity Boom Not Going Away

November 22, 2012

Scotiabank Vice President Patricia Mohr Bullish About Mining Prospects

OTTAWA, Nov. 20, 2012 /CNW/ – In a keynote address to the Economic Club of Canada, Patricia Mohr, Scotiabank’s Vice President of Economics and Commodity Market Specialist, provided a bullish outlook on mineral and metal prices over the long term, underscoring the potential value to Canada as a major mining jurisdiction.

“Over the medium-term, the ’emerging markets’ including China will remain supportive for commodity prices, notwithstanding this year’s slowdown,” said Ms. Mohr.

In her address, Ms. Mohr looked at the fundamental drivers of the mining business; in particular, the role of China and ’emerging markets’ as consumers of mineral and metal products. While China is in transition to lower-trend growth, further industrialization, modernization and urbanization will continue to drive demand for metals. Ms. Mohr points out that metals and minerals account for one-third of Canada’s net exports of all commodities and resource-based manufactured products. New mining plays—such as the world-class ‘Labrador Trough’ iron ore region and ‘The Ring of Fire’ chromite development in northern Ontario—will continue to provide significant economic benefits to Canada.

“Ms. Mohr’s comments underscore the major opportunity for Canadians to capitalize on new investments in the mining sector, estimated to be worth $140 billion over the next decade,” stated Pierre Gratton, CEO of the Mining Association of Canada (MAC).
“Keys to success will be creating an enabling regulatory environment, proactively addressing skills shortages and investing in critical infrastructure to capitalize on new projects and ensuring access to emerging markets.”

Canada: A Global Mining Powerhouse – by Minister Joe Oliver (Toronto, Canada – November 14, 2012)

November 22, 2012

Minister of Natural Resources, the Honourable Joe Oliver gave this speech at the Toronto Stock Exchange on November 14, 2012.

Check Against Delivery

Thank you very much, Ian. And, ladies and gentlemen, it’s great to be with you and my thanks to the Mining Association of Canada, the Prospectors and Developers Association and their members for hosting this event. I’m pleased to talk to you about the pivotal role that mining and exploration plays in creating jobs and economic growth in Canada.

Merci beaucoup. C’est un plaisir d’être avec parmi vous. Je remercie l’Association minière du Canada, l’Association des prospecteurs et entrepreneurs du Canada et leurs membres pour cet accueil. Je suis ravi de vous parler du rôle primordial que joue l’exportation minière dans la création d’emplois et la croissance économique du Canada.

We all know that Canada is a global mining powerhouse. We’re shattering production records for the second year in a row with world class mineral production in Canada reaching a record of over $50 billion. Mining contributed more than $62 billion to Canada’s nominal GDP last year — more than a fifth of our merchandise exports.

The thriving Canadian natural resource sector directly and indirectly accounts for close to 20 percent of all economic activity in Canada and growth in mining and exploration has meant well-paying jobs for more than 320,000 people, including more Aboriginal Canadians than any other sector of the economy.

The Importance of Canadian Flow-through Share Financing and the Mineral Exploration Tax Credit – by Ross Gallinger (Toronto, Canada – November 14, 2012)

November 22, 2012

PDAC Executive Director Ross Gallinger gave this speech at the Toronto Stock Exchange on November 14, 2012.

Check Against Delivery

Thank you Minister Oliver for your remarks and for being here with us this evening. We sincerely appreciate your ongoing support of our industry. Your efforts are paramount to our success, and we thank you for your hard work.

For those of you who don’t know me, my name is Ross Gallinger and I am the Executive Director of the Prospectors & Developers Association of Canada.

For 80 years, our association has been a leading voice in representing the mineral exploration and development industry. The PDAC has more than 10,000 members, both individual and corporate, and exists to protect and promote mineral exploration and development, and to ensure a robust mining industry in Canada.

As Minister Oliver and others have noted on numerous occasions, the natural resources sector, and in particular the exploration and mining sector, are vital to Canada’s economic sovereignty. Mineral exploration and junior mining operations play a key role in driving economic development, and provide employment opportunities throughout the country—especially in: Northern, Aboriginal and remote communities.

Mixed feelings on plans and permits – by Norm Tollinsky (Sudbury Mining Solutions Journal – November 2012)

November 22, 2012

Sudbury Mining Solutions Journal is a magazine that showcases the mining expertise of North Bay, Timmins and Sudbury.

Mining Act regulations to be fully enforced April 1, 2013

The jury is still out on the new Mining Act regulations in Ontario that require prospectors and exploration companies to consult with First Nations and apply for plans and permits prior to carrying out most exploration activities.

The new rules have triggered a chorus of grumbling and stoked fears of major delays, excessive demands by First Nations and the flight of exploration dollars to other jurisdictions, but Ross Gallinger, executive director of the Prospectors and Developers Association of Canada, claims they provide “certainty in terms of the steps required and transparency for stakeholders.

“Some people are going to look at this permitting as a bit of a delay, but thinking through the process, the amount of certainty outweighs the potential delay,” he said.

“The duty to consult has already been part of the process and, from a best practice perspective, the PDAC has always been an advocate of early and often consultation as a means to facilitate access.”

Is Canada closed to foreign investment? – by Matthew McClearn (Canadian Business Magazine – November 19, 2012)

November 22, 2012

http://www.canadianbusiness.com/

Canada was, quite literally, built with foreign investment. From the mid–19th century, British investors supplied much of the capital necessary to finance the railways, buildings, canals and other infrastructure its colony required. Later, American industrialists built lumber and newsprint mills, mines and manufacturing plants. Despite constant internal bickering about the consequences of allowing it, Canada came to be regarded internationally as a nation quite open to receiving foreign capital.

In the past five years, however, several high-profile takeovers proposed by foreigners were spurned. Most recently, Ottawa surprised many by blocking a bid by Malaysia’s Petroliam Nasional Berhad (Petronas) to acquire Progress Energy Resources for $5.9 billion. More important, this prompted speculation that China National Offshore Oil Corp.’s outstanding $15.1-billion offer for Nexen might receive similar treatment.

Most bizarrely, provincial officials in Quebec intervened this summer to oppose an attempt by Lowe’s, the American home-improvement retailer, to purchase Rona, that province’s celebrated vendor of hammers, reciprocating saws and drywall. And while Bell Canada is a decidedly domestic company, the recent decision by the CRTC to reject its bid for Astral Media only confirmed in some minds the notion that Ottawa is in a mood to meddle in large deals.

Fraser Institute Mining Survey 2012/2013 Needs Participants

November 22, 2012

The Fraser Institute, Canada’s leading public policy think-tank, conducts an annual survey of how miners and explorers rate the investment climate of jurisdictions around the world. The results identify the countries, states, and provinces whose policies create the greatest barriers to investment in the mining sector.

The results of the 2011-2012 Mining Survey, which elicited a great deal of media attention, can be downloaded as a free PDF at:

http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/mining-survey-2011-2012.pdf

We are asking you to participate in the 2012-2013 Survey of Mining Companies. Your participation will help to ensure that the results reflect the views of professionals with first-hand knowledge of the mining industry investment climate in countries around the globe. Broad involvement in the survey will increase the number of jurisdictions evaluated, thereby increasing the number of governments who get candid and anonymous opinions on their policies. Additionally, all information collected through the survey remains confidential.

You can complete the survey on line in less than 15 minutes. To thank you for your participation, we will send you an email alert the very moment the survey is released, with a link to the survey. You will have the information at the same instant as the media.

Give More For Less [Flow-through share financing] – by Lisa G. Davis (Advisor.ca – October 16, 2012)

November 22, 2012

Lisa G. Davis, LL.B, ICD.D, is head of the legal and operations teams for Toronto based PearTree Financial Services Inc.

Advisors should beware of tax-shelter offerings that either have no underlying business purpose or are based on schemes so aggressive that reassessment is a foregone conclusion.

But done right, flow-through share financing lets major charitable donors minimize taxes while maximizing giving.

HOW FLOW-THROUGH WORKS

When resource companies prospect, they rarely find an ore body of sufficient value to warrant the building of a mine. Under the flow-through tax regime, a mining company or oil and gas explorer can issue new shares to finance new or future exploration activity as specifically defined in the Income Tax Act.

Under the flow-through-share subscription agreement, the company agrees for its tax deduction to benefit the investors who fund that future exploration. There are many safeguards built into the flow-through system to ensure balance and to limit fundraising to what is actually needed for exploration over the 12-to-23 months post funding. There is also a natural end to the availability of this structure.