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Year: 2012

Gold Fields set to fire 11,000 strikers in South Africa – Reuters (Globe and Mail – October 18, 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 — Reuters – Striking miners at one of Gold Fields Ltd.’s South African operations returned to work on Thursday, but the bullion producer still looked set to fire more than 11,000 others taking part in the worst wildcat walkout since the end of apartheid.

More than 80,000 miners have downed tools in the country since August in often violent strikes that are hitting growth and investor confidence in Africa’s biggest economy, and raising questions about President Jacob Zuma’s leadership.

Gold Fields, the world’s fourth-largest bullion producer and second-biggest in Africa, said all of the 9,000 workers at its Beatrix mine were now back at work after responding to a dismissal ultimatum.

Eleven thousand strikers at its KDC West operations in Carletonville, 40 km west of Johannesburg, have until 1200 GMT to return to work or face immediate dismissal. Gold Fields has said it may issue a similar ultimatum to those striking at KDC East.

More and more mines in South Africa have resorted to mass dismissals to tackle the strikes gripping the sector. Around 15,000 workers have been sacked in the last two weeks, although experts say it is more a hard-ball negotiating tactic than outright dismissal.

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[Ned Goodman] Donor hopes to create world’s best mining school – by Heidi Ulrichsen (Sudbury Northern Life – October 16, 2012)

http://www.northernlife.ca/

LU names mining school for Ned Goodman

Ned Goodman said his goal is nothing less than to make the Goodman School of Mines the best mining school in the world.

Laurentian officially named its new mining school after the CEO of Dundee Corporation Oct. 15 after the Goodman Family Foundation made a large contribution to an endowment fund set up for the mining school.

The contribution was made with the condition that any financial commitment, present or future, remains confidential.

However, Laurentian University president Dominic Giroux said the Goodmans’ contribution, along with others, brings the university more than halfway to the endowment fund’s financial goal of $20 million.

Goodman is a geologist, securities analyst, portfolio manager and senior executive, and has invested in many mining operations.

He was the driving force of the Dundee group of financial companies, which grew under his family’s leadership from a $300 million base to a $50 billion mutual fund entity.

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Vale reports production declines across wide band of commodities – by Dorothy Kosich (Mineweb.com – October 18, 2012)

http://www.mineweb.com/mineweb/view/mineweb/en/page102055?

Bloomberg Industries says Vale’s share of the global seaborne iron-ore market has declined from 28% in the first half of 2011 to 26% for the same period of this year.

RENO (MINEWEB) – Vale has reported production declines in iron ore, pellets, manganese, copper, potash and phosphate rock for the first nine months of this year.

While the Brazilian mega-miner’s coal output increased a record 144.4% during the period, pellet output was up 3.8% and nickel production stayed flat.

For the first nine months of this year, Vale reported iron ore production of 234.5 million metric tons, a 2.2% drop over the 240 million metric tons of production reported during the first nine months of 2011.

“At Carajas we have not been able to match last year’s performance,” said Vale. “Issues with environmental permitting led to the continuation of mining in some older pits, which has entailed lower productivity, lower Fe content and higher costs.”
“Current performance is definitely not consistent with the high quality of our assets and corrective measures are underway,” the company said in its 3Q12 production report.

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Northerners weigh in on McGuinty resignation – by Benjamin Aubé (Sudbury Star – October 18, 2012)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Reaction is pouring in from political and water-cooler circles across Ontario in the days following Premier Dalton McGuinty’s resignation.

The decision did not fall on deaf ears in the North of the province, where some of the McGuinty government’s actions have come under much fire as of late.

McGuinty will remain at his post until a new party leader is selected, which could take months. As a result, McGuinty announced the prorogation of the legislature, essentially stalling regular proceedings at Queen’s Park until further notice.

For the Liberals, who fell just short of gaining a majority government last month after losing the Kitchener–Waterloo riding byelection to the NDP, the move is being celebrated for the prospect of rejuvenating the party’s vision.

Timmins-James Bay Provincial Liberal Association president Gaetan Groleau has been with the organization since 1999, and has watched McGuinty and his vision at work from the very beginning.

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Sudbury must become ‘self-sustaining’ – Vale by Jonathan Migneault (Sudbury Star – October 18, 2012)

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

Vale’s Sudbury operations must become “self-sustaining,” according to a letter sent to the company’s global operations Wednesday by Peter Poppinga, CEO of Vale Canada Ltd.

What that will mean to the company’s Sudbury operations and its 4,000-plus employees will become clear by the end of the week.

“In every area that we operate, there will be conversations with employees about specific actions that can be taken at those sites,” said Cory McPhee, Vale’s vice-president of corporate affairs. “Sudbury is no different.”

McPhee said Vale needs to make changes to improve efficiencies and control costs, while facing a difficult base metals market hampered by weak prices and demand.

He said representatives from the company will be speaking with employees across its global operations, including in Sudbury, before the end of the week to go over exactly what they mean by becoming more “self-sustaining.”

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Mining education continues to advance in Ontario

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 Certificate in Mining Management that is being offered by Ryerson University’s G. Raymond Chang School of Continuing Education is another indicator that mining education in business is continuing to evolve in Ontario. It is moving forward in recognition of development within the industry and changes in society, in which mining must operate.

This new program at Ryerson University in Toronto is designed for people with a degree and/or at least five years of experience working within the sector. “The Certificate in Mining Management has been developed in close consultation with industry experts to ensure employment relevance and to meet the urgent need in the mining industry for employees who have practical as well as theoretical skills and who understand and have been exposed to real-world cases and simulations,” says Ryerson University.

“As mining has evolved, so has mining education evolved,” said Philip Walsh, a geologist, Academic Coordinator for the program and an Associate Professor in the Ted Rogers School of Management at Ryerson. “The impetus for this program came from mining executives. It is about sustainability in mining; that is doing things right from the business perspective, the environmental perspective and the community perspective.”

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Citizens form Cliffs watchdog group – by Heidi Ulrichsen – (Sudbury Northern Life – October 16, 2012)

http://www.northernlife.ca/

‘We only get one shot at doing it right’

There’s strength in numbers. That’s one of the ideas underpinning a newly-formed citizens’ group examining all aspects of the chromite smelting facility Cliffs Natural Resources wants to build near Capreol.

“People together are stronger than individuals,” Capreol resident Bob Johnson said. “The public have come here and said ‘Yes, these are the concerns that we have.’ They can’t be ignored, but individuals can be ignored.’” About 50 people gathered at the Capreol Millenium Centre Oct. 15 to learn about the new committee.

In the end, the group unanimously passed a mission statement to focus on ensuring the Cliffs plant, if it materializes, is safe and healthy and provides a net benefit for its workers, the surrounding communities and the environment.

Former Sudbury East NDP MPP and Capreol resident Elie Martel was elected chair of the committee, with Johnson as secretary and Black Cat owner and former Laurentian University professor John Rutherford as treasurer.

Martel said the idea for the committee started after he did a media interview where he talked about his concerns about the project’s potential environmental impact. He immediately started receiving phone calls from concerned citizens. Then he realized that the environmental assessment process for the project is already underway.

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Aboriginal studies featured for mining institute – by Ian Ross (Northern Ontario Business – October 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. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

A proposed mining institute at Thunder Bay’s Lakehead University will place a strong emphasis on acting as an “honest broker” in dialogue between industry and First Nations.

If there’s one focus of study that will be addressed as a Centre of Excellence in Mineral Exploration and Sustainable Mining Development takes shape it’s the need to bridge the cultural gap often widened by the lack of communication and consultation.

Geology professor Peter Hollings, who’ll head up the institute, said the goal of the centre is to be a one-stop repository of experts and research for both companies and Aboriginal bands. “We want the natural answer to be Lakehead.”

For years, both industry and First Nations have chafed at the lack of definitive government rules on consultation in Ontario. Hollings knows the frustration that exists on both sides.

“We hear it a lot from industry and the First Nation communities who don’t fully understand the difference between a junior company coming in to do prospecting and drill a hole, as opposed to Cliffs Natural Resources coming to develop the Ring of Fire.

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Possible junior zinc takeover targets – by Kip Keen (Mineweb.com – October 17, 2012)

http://www.mineweb.com/mineweb/view/mineweb/en/page102055?

A supply crunch in zinc is predicted by leading analysts and some miners have already said they’re on the hunt for acquisitions leaving open the question of which juniors might get taken out.

HALIFAX, NS (MINEWEB) – It wasn’t so long ago, as reported by Reuters, that Lundin Mining told the press in Sweden that it was on the prowl for zinc and copper acquisitions. While you’re never going to get too many specifics about potential targets from a miner, Lundin did give some rough parameters of what it was after.

Lundin CEO Paul Conibear said it was interested in copper and zinc mines – especially in Europe, Canada and Mexico with 30,000 to 70,000 tonnes metal production a year. He also signalled Lundin was ready to take a pretty quick shot. “We are going to be very disciplined, but when we find something for the right price, we will act quickly and aggressively,” Reuters quoted Conibear as saying back in late September.

This hunger for base metals, zinc especially, is not all that surprising. It is shaping up to be a good year for zinc hunting and in that Lundin’s pursuit is probably not alone in donning a camouflage jacket and loading its gun with cash, among other kinds of powder.

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[Sudbury] Citizens question Cliffs – by Jonathan Migneault (Sudbury Star – October 16, 2012)

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

A group of citizens in Capreol voted unanimously Monday night to form a citizens’ committee to explore the net benefits and potential downsides of the planned Cliffs chromite smelter near the community.

Environmental concerns were front and centre at the meeting. Judy Sumner, a retired chemistry teacher at Cambrian, explained how chromite turns into a carcinogen when it comes into contact with oxygen.

That hazard was publicized in the case of Erin Brokovich and her fight against the Pacific Gas and Electric Company of California in 1993. Her exploits were later made into a film starring Julia Roberts.

Sumner said a modern closed smelter was built in Tornio, Finland that does not allow the burned chromite to escape into the surrounding air. She said her concerns about the project would be alleviated if Cliffs built a similar plant.

Elie Martel, who was voted the committee’s chair, said he attended an open-house meeting hosted by Cliffs, but the answers he received on environmental issues were not very forthcoming.

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Goodman makes historic donation [to Laurentain’s School of Mines] – by Jonathan Migneault (Sudbury Star – October 16, 2012)

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

A substantial donation to Laurentian University’s upcoming School of Mines will help propel the school to the top of the world heap in the discipline, said Laurentian President Dominic Giroux.

On Monday the university announced that an “historical gift” from Ned Goodman, the president and CEO of the Dundee Corporation, has put the school ahead of the halfway mark to create a $20 million endowment fund for the new mining school.

“To have the Goodman name associated with Laurentian University is exceptional,” Giroux said.

Through the Dundee group of financial companies Goodman helped build a $50-billion mutual fund entity. After he was laid off by Noranda in 1960 he went on to get his MBA from the University of Toronto and eventually became an important financier of Canada’s mining industry.

To honour Goodman and his donation, the exact amount of which has not been disclosed, the new school will be officially named The Goodman School of Mines. “It’s a school that needs the investment,” Goodman said about Laurentian. “It’s in the right place and it has the right background and it should be one of the best mining schools in the world, but it’s not there yet.”

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The decline of Canadian juniors – by Brent McNiven (Canadian Mining Journal – October 15, 2012)

The Canadian Mining Journal is Canada’s first mining publication.

The junior mining and exploration sector that once formed a discreet, integrated and dynamic economic entity has become a fragmented and isolated group of investors and managers with narrow focus and short term (often short sighted) mandates, operating too many companies (excess supply) lacking sufficient resources to be effective.

The contracting and consulting sectors have been sharply reduced in scope and capacity, and they face increasing international competition, for example Australia, but also local actors in every market, resulting in consolidation, increased barriers to entry and opportunities have been lost.

Where Canada once produced world class exploration geologists, the failed industry-university link consistently graduates students without any field experience and lacking even the most basic exploration skills.

Competition for geology careers is fierce, as many low cost developing countries have improved quality (often trained by Canadian companies). Open education, which should be considered a disruptive technology, is expected to continue this trend. It offers affordable, high quality education to anyone, worldwide, and that erodes the advantage of Canadian universities, and by extension the potential value of their graduates.

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‘You can print money as much as you like but you can’t print gold’ – by Lawrence Williams (Mineweb.com – October 15, 2012)

www.mineweb.com

A quote from a Swiss gold refiner/trader puts the case for gold as sound money very succinctly and coupled with the suggestion that it is a Giffen good, bodes well for further price rises.

LONDON (MINEWEB) – The title of this article is very much a truism which says much about the position gold has held as an international standard for many centuries and why, ultimately, it will hold its position as the monetary yardstick against which all global currencies in this fiat money world will ultimately be measured, and fail to pass muster. Indeed if some far cleverer analysts and economists than I are to be listened to, these currencies will collapse into a morass of hyperinflation unless the money printing can somehow be brought under control.

With QE to infinity policies currently in place in most of the world’s key financial blocs, the likelihood of such controls coming into place before at least one major currency does collapse is becoming more and more remote. And if one does collapse the dominoes could rapidly start to fall plunging the world into financial Armageddon where the middle classes in particular will have their wealth totally destroyed. One sincerely hopes that somehow this doomsday scenario can be avoided, but it’s as well to be prepared just in case.

I am indebted to an article on Swiss dominance in global gold refining on website www.swissinfo.ch for the quote used in the title – (from Frédéric Panizzutti, spokesman for MKS (Switzerland) SA, a Swiss company, which specialises in gold trading and which owns the Pamp gold refinery).

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Mining has seen a lot of changes over 30 years – by Jodi Blasutti Miner (Sudbury Star – October 15, 2012)

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

The past 30 years have shown a dramatic increase in technology in mining. Prior to the 1980s, the majority of excavation work was done with hand held equipment using pressurized air and water.

The biggest advances in taking workers away from the face, the singular most hazardous place, was utilizing mechanized equipment and more recently remote mechanized equipment.

When electric hydraulics were introduced everything became bigger, stronger and faster. The consequences of this was more advanced rock mechanics and ground wee support required to safely allow the rapid advance of stopes and headings.

Even with ongoing changes to safety practice and procedures, the modern environment has created life threatening hazards not seeing in historical mining. In this new age of mining, the rapid advancement of equipment and procedures has superseded the advancement of safety.

The current high cost of wages and equipment puts pressure on engineering design to maximize capable tons produced and concurrently maximize profit.

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Historic milestone for [Sudbury] union – by Harold Carmichael (Sudbury Star – October 15, 2012)

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

A milestone anniversary in Greater Sudbury’s labour history is being marked today: United Steelworkers Local 6500 turns 50 years old.

It’s also a day of infamy in the history of the Mine Mill and Smelter Workers Union to whom the more than 13,000 Inco Limited production and maintenance workers belonged before the “raid” by the United States-based union occurred.

While the Steelworkers were successful in winning the right to represent the Inco workers in a vote in June, 1962 — the result was 7,182 votes to 6,951 in favour of being represented by the Steelworkers, the margin of victory was just 231 and only 15 votes over the required 50% — the ballot box victory was not made official for several months.

That was because Mine Mill protested that 71 of the ballots were not stamped with the official mark of board officials and that the 72-hour no propaganda rule had been deliberately violated by the Steelworkers. On Oct. 15, 1962, the board ruled the Steelworkers should be certified. At the time, Local 6500, as the new bargaining group became known, was the largest union local in Canada.

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