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Year: 2012

Ontario’s Ring of Fire could open economic door to locals – by Henry Lazenby (MiningWeekly.com – December 14, 2012)

http://www.miningweekly.com/page/americas-home

In the far-north muskeg of Ontario lies a chromite deposit that could potentially rival that of world No 1 producer South Africa, heralding the development of North America’s first significant chromite mine, a new era of prosperity for the region’s First Nations and millions in tax revenue for Canada’s capital province for many decades to come.

Discovered almost by accident in 2002 by diamond major DeBeers, which at the time was looking for diamonds, but instead found copper and zinc, the 5 000 km2 Ring of Fire deposit, which is about 1 000 km north-west of Toronto, is one of the most promising mineral development opportunities in Ontario in almost a century.

Tucked deep into northern Ontario, the Ring of Fire contains rich mineral deposits that could transform the region much as the oil sands have transformed Alberta. Named whimsically for a Johnny Cash song, the crescent-shaped arc of deposits has the potential to make Canada the world’s fourth largest chromite producer.

Only four countries account for about 80% of the world’s chromite production, with South Africa leading Kazakhstan, Turkey and India.

China’s resource-hungry economy buys half the world’s supply and the US buys about 15%. Chromite, when processed into an alloy, is used in the production of stainless steel, among other products and is valued for its ability to increase steel’s hardness, toughness and resistance to corrosion. In thin chrome-plated coatings, it protects auto parts, appliances and an array of other products, including weapons.

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TOO HOT TO HANDLE? NORTHERN ONTARIO’S RING OF FIRE – by Nathan Elliott (Ontario Mineral Exploration Review – December 2012)

This article is from the Insightwest website. Insightwest offers strategic, compliance and technical-based solutions for the energy and resource sectors. http://www.insightwest.ca/

And it burns, burns, burns, the ring of fire

The ring of fire

On January 11, 1964, Ring of Fire: The Best of Johnny Cash became the number one record on Billboard’s new Country Album Chart. The collection featured some of Cash’s best material and its title track would become the biggest hit of the “Man in Black’s” career. The album, however, was more than a one hit wonder. Several of its songs would also climb the charts and connect with listeners worldwide. For example, Cash re-wrote what became the iconic television score for Bonanza, but its central messages remained the same – the pursuit of fortune, and the thrills of striking it rich. In the anti-war classic The Big Battle, Cash’s social conscience is front and centre, as is the old adage that a fight is not over until it’s over. (There’ll Be) Peace in the Valley (For Me) concludes the album. Its message is one of hope and possibility, rising from the ashes of conflict.

With the 50th anniversary of the Ring of Fire album release around the corner and the 10 year commemoration of Cash’s passing next year, it is timely that the northern Ontario geological discovery that bears the album’s name is front page news today. It is also fitting that the universal themes of hope, desire, war and peace that define the album can be used as frameworks for understanding the Ring of Fire mining developments, as well as the motivations of First Nations, industry, government and environmental groups with vested interests in the region today.

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Why Ontario has a strong economic case for seceding from Canada – by John Ibbitson (Globe and Mail – December 13, 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.

“But prosperity will prove elusive, unless $12-billion that flows out of Ontario 
annually is used at home – to retrain unemployed workers, to expand public transit
in Greater Toronto and to supply the needed roads, energy and Internet without
which Northern Ontario’s Ring of Fire, touted as the most promising Canadian mining
development in a century, will never reach its full potential.” (John Ibbitson)

If it were simply a question of dollars and cents, Ontario should separate from Canada, now. This is emphatically not the conclusion of a new report by the Ontario Chamber of Commerce on the punishment that Ottawa inflicts on Canada’s economic heartland. But so damning is the evidence contained in that report that the sentiment is hard to suppress.

A copy of “A Federal Agenda for Ontario”, released Thursday, was provided in advance to The Globe and Mail. It details the manifold ways in which federal policies punish Ontario workers and the Ontario economy.

‘Twas ever thus, but at least in the past Ontario was wealthy enough to bear the burden. No more. “Ontario needs to think of how it can reinvent itself and reinvent its economy,” Allan O’Dette, president of the Ontario Chamber of Commerce, said in an interview.

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B.C. mine to hire only Chinese temporary workers for years – CBC News (December 12, 2012)

http://www.cbc.ca/bc/

HD Mining plans to start hiring Canadians after 4 years

The B.C. Federation of Labour says documents show it will be 14 years before Canadians replace all the temporary foreign workers from China hired to work at an underground coal mine in northern B.C.

Two unions are in court challenging more than 200 temporary foreign worker permits obtained by HD Mining for its Murray River underground coal mine near Tumbler Ridge, B.C. The employer says there were no qualified Canadians to do the specialized work at the underground mine.

Documents tendered in the case include HD Mining’s previously unreleased transition plan, which outlines how the company won’t start hiring Canadian miners for more than four years and plans to continue using temporary foreign workers for the next 14 years.

“What the document says categorically is it will be 4½ years before a single Canadian will be working underground at the mine,” said B.C. Federation of Labour president Jim Sinclair.

“After 4½ years, it will be 10 years before it will be a majority of Canadians working underground, and it will be 15 years before the temporary foreign workers are finished working in that mine.”

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Conflict-Free Gold Standard – World Gold Council

http://www.gold.org/about_gold/sustainability/conflict_free_standard/

The World Gold Council has developed the Conflict-Free Gold Standard, an industry-led approach to combat the potential misuse of mined gold to fund armed conflict. The Standard has been developed with our member companies, comprising the world’s leading gold producers, and with extensive input from governments, civil society and supply chain participants. It is hoped that the Standard will promote responsible mining practices throughout the gold mining industry. It is an open standard that is available for use by any party involved in the extraction of gold.

Responsibly undertaken, gold mining can play an important role in contributing to sustainable development and alleviating poverty in many of the world’s developing countries. The direct and indirect economic contribution of professional gold mining creates new possibilities for these nations, their communities and individuals.

However, when there is armed conflict, even the best managed operation will need to take additional steps to ensure that both the gold it produces and its broader activities do not contribute to the conflict.

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Review: Le Nord au coeur – by Brendan Kelly (Montreal Gazette – December 6, 2012)

http://www.montrealgazette.com/index.html

Louis-Edmond Hamelin shines a northern light

MONTREAL – Louis-Edmond Hamelin is quite the character, and when you have such a great character as your leading man, you usually have a pretty captivating film. Le Nord au coeur is no exception to that rule.

Seasoned documentary filmmaker Serge Giguère has made a brilliant feature about Hamelin, a key intellectual figure in the discussion of northern affairs in Quebec over the past few decades. But this is no dry academic piece; rather, it’s a lively, thought-provoking look at a fascinating man that also serves as a history of Quebec’s forgotten people.

From the development of the iron ore industry in the north in the ’50s to the James Bay mega-project in the late ’60s/early ’70s to the controversial Plan Nord unveiled by the Charest government, those in southern Canada have spent decades plotting the commercialization of the north without worrying about the people who actually live there.

Right at the start of Le Nord au coeur, Hamelin, 89, is seen getting into an Air Inuit plane and then a small seaplane to make his way to the aboriginal community of Mushuau-nipi, a place Hamelin hadn’t been to for 37 years. There he meets with locals, which is when the film moves backwards to look at his life’s work studying the north and its communities.

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Bill Gallagher, Author, Lawyer, Consultant and Strategist – Nation Talk Interview (December 11, 2012)

http://nationtalk.ca/ NationTalk speaks to Author, Lawyer, Consultant and Strategist Bill Gallagher. An experienced strategist in the dynamic area of native, government, and corporate relations, he is held in high regard as an authority on the rise of native empowerment in Canada’s resources sector. He is now also the Author of Resource Rulers: Fortune and Folly …

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No Canadian hires for four years at Chinese-owned B.C. mine – by Pav Jordan (Globe and Mail – December 13, 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.

MINING REPORTER — HD Mining International, building a large coal mine in northern British Columbia using Chinese workers, will take four years before it hires even a single Canadian miner, and another decade beyond that before the work force is fully local, court documents show.

According to documents made public on Wednesday by the B.C. Federation of Labour, HD Mining plans to use up to 201 workers from China to staff the mine through 30 months of construction and two years of ramp-up and mining.

It plans to phase in a Canadian work force at the so-called Murray River coal mine, near Tumbler Ridge, B.C., in the subsequent 10 years, at a rate of 10 per cent per year, documents showed. Murray River is expected to have a mine life of 40 years.

The revelations could deepen the controversy around the company – majority-owned by Chinese coal miner Huiyong Holding – and the use of temporary foreign workers in an industry suffering from skills shortages after demand for metals skyrocketed over the past decade.

Local unions were in court on Wednesday seeking an injunction that would prevent any more workers coming to the project pending a judicial review of the process that cleared the hirings.

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Here’s Why Chief Theresa Spence Is Starving Herself – by Carolyn Bennett (Huffington Post.com – December 13, 2012)

http://www.huffingtonpost.ca/politics/

Carolyn Bennett is a federal Liberal Member of Parliament.

The Assembly of First Nations (AFN) hosted a Special Chiefs Assembly in Ottawa last week to develop a plan to deal with the Conservative government’s increasingly confrontational approach toward First Nations. Speaking to the Assembly, National Chief Shawn Atleo referred to the deterioration in the relationship with Ottawa noting, “We’ve seen promises broken and others act in bad faith.”

He also called First Nations to action in “not rallies of a few, but a movement. A movement of peoples. A moment of nations coming together.” Frustration boiled over as the assembled Chiefs rallied on Parliament Hill and tried to gain entry to the House of Commons chamber in order to be heard by Harper and his colleagues.

A tweet from Tanya Kappo of Edmonton against Omnibus Bill C-45 with hashtag #idlenomore has snowballed and inspired thousands on Monday to protest in communities across Canada against the unilateral and paternalistic approach of the Harper government.

Chief Theresa Spence of Attawapiskat started a hunger strike this week — “I am willing to die for my people because the pain is too much and it’s time for the government to realize what it’s doing to us.” With this government’s decision to treat Aboriginal Peoples in Canada as “adversaries,” Aboriginal peoples have indicated that this may well be only the beginning of their protests.

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Ontario Program offers grants to prospectors – by Liz Cowan (Northern Ontario Business – December 12, 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.

Joseph Barr was one of the most popular exhibitors at a recent mining symposium since he was “giving away money.” As president of the Ontario Exploration Council (OEC), he set up a booth at the Ontario Exploration and Geoscience Symposium Nov. 6 and 7 in Sudbury to inform prospectors of available grants.

OEC is fully owned by the Ontario Prospectors Association (OPA) and the organization was created to replace a former grant program with the provincial government. “We have a three-phase program,” said Barr. “Prospectors can get up to $85,000.”

If a prospector stakes a claim, a $10,000 grant can be applied for. Half is given initially, and the remaining half is received once an assessment report is filed with the Ministry of Northern Development and Mines.

After the $10,000 is spent, a further $25,000 can be applied for. The money must be spent on the claim, and if it looks promising, this second level of funding can be used for activities such as drilling or sampling. If the assay results are good from drilling and sampling, a further $50,000 can be applied for.

“It is totally interest-free, and there is no repayment. What we take on the first $10,000 is a one per cent net smelter return (NSR). On the second phase, we take another 0.25 per cent and on the third, another 0.25 per cent,” he said.

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Molycorp CEO Exits Six Months After Neo Material Deal – by Sonja Elmquist (Bloomberg.com – December 12, 2012)

http://www.bloomberg.com/

Molycorp Inc. (MCP) Chief Executive Officer Mark Smith left the rare-earths producer amid an investigation of its disclosures and a lawsuit related to engineering deficiencies at its mine.

Vice Chairman and former Neo Material CEO Constantine Karayannopoulos is Smith’s interim replacement, the Greenwood Village, Colorado-based company said yesterday in a statement. Molycorp said its board is looking for a permanent hire.

“We feel that Mark had lost credibility with a number of constituents, shareholders, potential investors and analysts,” said Michael Gambardella, a New York-based analyst at JPMorgan Chase & Co.

Molycorp disclosed the probe by the U.S. Securities and Exchange Commission in a filing on Nov. 9, the day after reporting its third-quarter earnings and hosting a conference call to discuss results with investors, a decision that eroded investors’ trust in his management, Gambardella said.

Gambardella, who rates Molycorp shares underperform, equivalent to a sell, said that regardless of who takes Smith’s place, the company will be producing into an oversupplied market and will need to raise more money next year.

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Uranium miners still struggling to emerge from shadow of Fukushima – by Peter Koven (National Post – December 13, 2012)

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

Following the Fukushima nuclear facility disaster in March 2011, uranium miners were quick to rationalize that the fundamentals of their business were unlikely to change and the world still needed more nuclear power.

They were wrong, to put it kindly.

More than 21 months after Fukushima, the uranium business is still stuck in a rut. Uranium’s spot price has plummeted to nearly US$40 a pound (compared to a high topping US$135 in 2007), and there has been minimal activity in the spot market. Utilities are well-supplied with uranium for the foreseeable future, and, thanks to Fukushima, the outlook for demand growth is not nearly as healthy as it was a couple of years ago.

“The recovery in Japan has been slower than we expected,” Tim Gitzel, chief executive of Cameco Corp., acknowledged in an interview.

Now the question on everyone’s mind is whether things will finally start to turn around in 2013? The market is still waiting for news on Japanese reactor restarts, while digesting Germany’s plans to get out of the nuclear business entirely.

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Fix U.S. permitting system before imposing federal hardrock mining royalties – Sen. Lisa Murkowski – by Dorothy Kosich (Mineweb.com – December 12, 2012)

http://www.mineweb.com/

While data may be lacking to determine how much revenue U.S. taxpayers are losing from hardrock mining operations on federal lands, a slow-moving government bureaucracy is discouraging exploration investment.

RENO (MINEWEB) – As expected, the General Accounting Office on U.S. hardrock mining and its lack of federal royalties was finally officially released Wednesday, as the ranking member on the Senate Energy & Natural Resources Committee questioned why reporters received the report before it was made available to the House and Senate resources committees, or even was published on the GAO website.

“Whether GAO intended it or not, leaking the report to reporters before lawmakers gives the distinct impression that the GAO is promoting its own agenda,” said Sen. Lisa Murkowski, R-Alaska, and the ranking Republican on the Senate Energy & Natural Resources Committee.

As Mineweb reported on December 12th, the Washington Post published a story on the report one day prior to its official release. In that story, a Post reporter conducted interviews with the two lawmakers who originally requested the study.

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First Nations given tight deadline to respond to Cliffs new terms of reference – by Shawn Bell (Wawatay News – December 12, 2012)

Northern Ontario’s First Nations Voice: http://wawataynews.ca/

Cliffs Natural Resources has adjusted the terms of reference for its proposed Ring of Fire mine, meaning First Nations are again being asked to provide comments and concerns.

Yet at least one First Nation argues that the government should deal with an outstanding Treaty issue before expecting it to comment on the new terms of reference. First Nations were provided with Cliffs’ amended terms of reference on Nov. 30, and given 15 days to respond.

Neskantaga Chief Peter Moonias said that while he wants to respond to the terms of reference, situations within his community and his family mean there is not time to do so before the date that Ontario has set.

Moonias also said Ontario should deal with Neskantaga’s request for mediation on the terms of reference before expecting First Nations to respond to the amended version of the terms of reference.

“The government is trying to give its mandate (to consult with First Nations) to Cliffs,” said Neskantaga Chief Peter Moonias. “They are trying to make Cliffs look like the bad guy, but the government is the one that has a responsibility to come back to the table with First Nations.”

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Fired Vale striker gets his job back – by Carol Mulligan (Sudbury Star – December 13, 2012)

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

The first miner fired during the year-long strike by United Steelworkers against Vale has been reinstated to his position at Vale’s Coleman Mine.

Ron Breault was fired by the mining company in September 2009, two months after about 3,000 members of USW Local 6500 in Sudbury and Local 6200 in Port Colborne went on strike.

Arbitrator Janice Johnston released her decision Wednesday. She ruled Breault should get his job back, with full seniority and benefits, and that he be awarded about 19 months of back pay.

Brian Shell, the lawyer representing USW and Breault, said Johnston gave Breault a 30-day suspension because of “some words he spoke on the picket line.” But she ruled firing Breault was too severe a penalty. USW Local 6500 president Rick Bertrand said Breault was happy and relieved to get his job back.

Breault happened to be standing outside the Steel Hall at Brady Street when Bertrand called him to tell him the good news. Bertrand said Breault and his union knew he was innocent of allegations of misconduct, for which Vale fired him during the strike.

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