Archive | Canada Mining

NEWS RELEASE: Canada most acquisitive country with 196 mining deals in first half of 2011: Ernst & Young

Mining and metals deal value in first half of 2011 doubles from 2010

Click here for: Mergers, acquisitions and capital raising in the mining and metals sector – 1H 2011

(Vancouver, 31 August 2011) Canada topped the global mining and metals sector as the leading acquirer with 196 deals and as the leading target destination with 129 deals from January to June 2011, says Ernst & Young.

Following Canada, Australia was the second top acquirer by volume with 83 deals and the second target destination with 72 deals occurring within the country.

“So far, 2011 has brought fewer but larger deals to the global mining sector,” says Tom Whelan, Leader of Ernst & Young’s national mining and metals practice. “Despite the drop from 573 deals in the first half of 2010 to 511 deals in the first part of this year, the total deal value of mining transactions from January to June more than doubled to US$96.3b from US$47.9b.” Continue Reading →

Arctic has great riches, but greater challenges – David Ljunggren and Euan Rocha/Reuters (National Post – September 1, 2011)

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

At the rim of the Arctic Circle in Canada, gold mining firm Agnico-Eagle is learning how tough it is to operate in a remote region with temptingly large, but frustratingly inaccessible, reserves of oil, gas and minerals.

Commentators rarely mention nightmarish logistics, polar bears and steel-snapping cold when they confidently predict that as the Arctic warms up, melting sea ice and shorter winters will open up the expanse to exploration.

But the rosy words obscure the reality of working in an icy wasteland that stretches across Russia, Scandinavia, Alaska and Canada. And rather than making life easier, the warming of the Arctic and the thawing of its permafrost could make operating here even more complicated.

A closer look at the far northern Canadian territory of Nunavut, one of the most promising areas for exploration, reveals challenges so huge that the Arctic may well turn out to be a niche market where big firms with a serious tolerance for risk and adversity develop a handful of major deposits.

For all the talk of a bonanza there is just one mine working in Nunavut today – Agnico-Eagle’s Meadowbank operation, which has cost a total of US$1.5-billion so far. Continue Reading →

Mining Association of Canada NEWS RELEASE: The Canadian mining opportunity: $130 Billion over the next five years

SUDBURY, ON, Aug. 25, 2011 /CNW/ – New figures from the Mining Association of Canada today estimate that approximately $130 billion worth of investment is projected over the next five years for the Canadian mining industry;  including both new project and expansions to existing operations.  That message was part of an address to the Sudbury Chamber of Commerce made by Pierre Gratton, President and CEO of the Mining Association of Canada.

“Multi-billion dollar investments are planned in virtually every province and territory of Canada.  Global demand for commodities is creating opportunities not seen since the post-war boom of the 1950’s,” says Gratton.  “As a global mining superpower, Canada is well positioned to capitalize on this opportunity.  Canada is fortunate to have a rich endowment of commodities and over the past several decades we’ve developed best-in-class expertise in extracting materials in an environmentally responsible manner.”

Joining Pierre Gratton in addressing the Sudbury audience was Chris Hodgson, President of the Ontario Mining Association.  “The world needs the products of mining.  Mines will be built and operated.  What better place to mine than Ontario, with its responsible environmental protection, world class safety record and desire to participate in new and emerging technologies,” added Mr. Hodgson.  Continue Reading →

[Agnico-Eagle Meadowbank gold mine] Inuit embrace mining to secure future – by Marilyn Scales (Canadian Mining Journal – August, 2010)

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.

Site Visit By Field Editor Marilyn Scales

A true partnership has been forged by Agnico-Eagle Mines and the Inuit of Baker Lake, Nunavut, one that treats the land with respect and provides a modern future for young members of the community. The elders have embraced Agnico’s vision of gold mining. They know mining will provide education, training and well-paying jobs for many years. And most importantly, they trust Agnico to be a responsible steward of their land.

The Meadowbank project offered many firsts for all involved. It is the first project Agnico has pursued in the Arctic. It is the first gold mine in Nunavut (and currently the only mine). It is the first to be developed on Inuit land. It is the first mine to be covered by a water compensation agreement, signed in April 2008 with the Kivalliq Inuit Association.

Agnico gained control of the Meadowbank deposit when it purchased Cumberland Resources in 2007. Cumberland had great success exploring the deposit in the previous decade. A pre-feasibility report was completed in 2000 and updated five years later. The takeover of Cumberland cost $710 million, but it increased Agnico’s gold reserves by 23%. Continue Reading →

[Port Radium uranium mining] They Never Told Us These Things – Julie Salverson ( Magazine – Summer 2011)

Maisonneuve is a Montreal-based general interest magazine that publishes a wide range of Canadian and international topics about culture and politics. It is named after Paul de Chomedey de Maisonneuve, the founder of Montreal.

A mine in the Northwest Territories provided much of the uranium used during the Manhattan Project—unbeknownst to the indigenous people who worked there.

Long ago, there was a famous rock called Somba Ke—“The Money Place”—on the eastern shore of Great Bear Lake in the Northwest Territories. Loud noises came from this place and it was bad medicine to pass near it. In the old days, a group of caribou hunters camped at Somba Ke for a night. One of them—a man named Ehtséo Ayah, known in his community as “Grandfather”—had a dream and saw many strange things: men with white faces climbing into a big hole in the ground, a great flying bird, a big stick dropped on people far away. This would happen sometime in the future, after we are all gone, the prophet said. In his vision, everyone died. Everyone burned.

Theresa Baton recounts this tale, recorded by the elder George Blondin, as we sit in her narrow, smoky trailer. There is a framed photo of Ayah on the sideboard. Baton is a strikingly beautiful woman, as slender and fit as her husband, Peter. They are two of the few Dene grandparents left alive in Déline, an indigenous community of several hundred people in the Northwest Territories.

In the waning days of World War II, the people of Déline and the white miners working at nearby Port Radium ferried bags of uranium ore from the Eldorado mine—where Somba Ke once sat—across Great Bear Lake. The ninety-pound sacks were carried on men’s backs, loaded onto boats and transported about two thousand kilometres south to Alberta. The crushed ore was refined in Port Hope, Ontario. Then it was sent to the Manhattan Project in New Mexico, where it was used to develop the atomic bombs dropped on Hiroshima and Nagasaki. Few Canadians know about their country’s role in one of history’s most destructive acts of war. Continue Reading →

Be Not Afraid of Greatness or Sudbury: A Cosmic Accident – by Kenneth Hayes (Part 2 of 2)

Sudbury-born Kenneth Hayes currently teaches  architectural history at the University of Toronto.

This essay was commissioned by the Musagetes Foundation on the occasion of the Musagetes Sudbury Cafe. It appears in the book Sudbury: Life in a Northern Town / Sudbury: au nord de notre vie.

Musagetes is a private foundation based in Guelph, Ontario which seeks to transform contemporary life by working with artists, cultural mediators, public intellectuals and other partners to develop new approaches to building community and culture.

Kenneth Hayes – Be Not Afraid of Greatness or Sudbury: A Cosmic Accident (Part 2 of 2)

Sudbury’s development displays some of these features in their later, more advanced forms. The “I” in Inco’s name proclaimed the venture international, but the dominant company in the exploitation of Sudbury’s ore reserves was essentially American. Inco may nominally have been based in Toronto, but Canada’s role in this relationship was at best that of junior partner in a kind of corporate suzerainty.

Falconbridge, the newer and smaller corporation in Sudbury, generally enjoyed a better reputation than Inco, but it was not that different. In fact, the rivalry between Inco and Falconbridge over the course of the twentieth century often had the unreal air of a duopoly — the minimum diversity required to maintain the appearance of open competition while colluding for the same ends. (11)  In the last decade, Inco and Falconbridge were purchased, respectively, by the giant mining corporations Vale, from Brazil, and Xstrata, from Switzerland. This situation is still regarded (not without some degree of xenophobia) as abnormal, but the truth is that Sudbury has never really ruled itself.

Understandably, diversification has been Sudbury’s cultural and economic mandate in recent decades. Fuelled by the North’s long-standing regionalist grievances, the city went through a phase of public investment that resulted in the creation of the Taxation Data Centre, Science North and improved health-care and educational facilities, but there are now signs that vigorous private initiative is rising from the thrall of the mines, and doing so in Sudbury’s own inimitable way. Continue Reading →

Harper sells vision of economic development in North as Arctic tour continues – by Bruce Cheadle – The Canadian Press/Global BC

“Oh yeah, it was (rough),” the burly Innu says of life
in Baker Lake before the mine opened. “Everybody was
on social welfare and now they can afford to buy food
and snowmobiles and trucks and clothes and help out
their families.”

BAKER LAKE, Nunavut – Stephen Harper used the backdrop of peaking gold prices amid international economic turmoil Wednesday to sell his vision of economic development in Canada’s Far North.

The prime minister made no apologies for his Conservative government’s development-first strategy after touring the roaring Meadowbank gold mine near Baker Lake. It is Nunavut’s only operating mine, but many more are promised.

Critics have long complained the Harper Conservatives are ignoring environmental damage and the impact of climate change as they rush to capitalize on a thawing Arctic. With gold prices hovering near $1,800 an ounce, Harper was not prepared to concede an inch. Continue Reading →

[MAC’s Pierre Gratton says] embrace foreign investment – by Carol Mulligan (Sudbury Star – August 26, 2011)

The Sudbury Star, the City of Greater Sudbury’s daily newspaper. [email protected]

“We have already succeeded as Canadians on the global
mining stage. We are every-where…Canada’s voice is
loud, the Canadian industry is loud, our expertise is
used everywhere, our government legislation is copied
everywhere. We have nothing to fear about our place
in the world.” (Pierre Gratton, President and CEO,
Mining Association of Canada)

It can be a difficult message to deliver, but someone has to do it, says the head of an organization that calls itself the voice of the mining industry in Canada.

Foreign investment in mining companies is a good thing and should not be feared, says Pierre Gratton.

In Sudbury, for instance, the billions in investments that Vale is looking to make in its Sudbury operations might not have been made by the former Inco Ltd.

Gratton, president and chief executive officer of the Mining Association of Canada, urged an audience of 200 people Thursday to “avoid protectionism.” Continue Reading →

Sudbury ready to cash in [on mining investments] – by Carol Mulligan

The Sudbury Star, the City of Greater Sudbury’s daily newspaper. [email protected]

“If we do the right things, mining can literally help
dig Ontario out of its debt.” (Chris Hodgson, President
and CEO Ontario Mining Association)

Sudbury is well-positioned to benefit from that mining
boom because it has the largest integrated mining complex
in the world and one of the largest nickel-copper
sulphide bodies. (Pierre Gratton, President and CEO,
Mining Association of Canada)

Sudbury stands to benefit from investments in mining operations to the tune of about $5.2 billion in the next five years. That’s a healthy percentage of the $136.4 billion in capital expected to be invested in mining projects throughout Canada from 2012 to 2017.

All of those billions will go into mining projects already in existence, says the president and chief executive officer of the Mining Association of Canada.

That doesn’t include private and public money that may be invested in projects to develop, mine, smelt and transport chromite from the Ring of Fire in northwestern Ontario.

Pierre Gratton was one of two guests who spoke to the Greater Sudbury Chamber of Commerce on Thursday about how the city can benefit from the current up cycle in the metals industry.

China will continue to be a mineral price driver as its econo my continues to grow at double-digit rates. That demand is long-term, with expectations its growth will still be in the 6% to 9% range from 2020-2025. Continue Reading →

Federal government gets it! Harper supports northern mining – 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.

Miners rejoice! The Canadian government understands the enormous potential of developing natural resources in the Arctic.

Prime Minister Stephen Harper made his annual pilgrimage to the North this week, including a stop at Agnico-Eagle’s Meadowbank gold mine near Baker Lake, NU. He told miners and guests, “Development of the North’s awesome resource potential is a national economic challenge which could yield enormous national economic benefits. The primary beneficiaries will be Northerners themselves, but the wealth generated here will create jobs and opportunities for Canadians all across the country.”

Since the Harper government was first elected in 2006, it has spent hundreds of millions of dollars in development of the North. Some of the money has gone into the GEM geo-mapping program, better to understand where resources might be found. And this week the feds committed $230,000 over three years to support an office in Iqaluit for the Northwest Territories and Nunavut. Continue Reading →

Harper defends Nunavut waste decision – by Mike De Souza (Montreal Gazette – August 25, 2011)

Gold mine allowed to dump in lake; Environmental issues ‘have to be addressed, but that can’t stop development,’ PM says

Prime Minister Stephen Harper pointed to environmental effects of development in Canada’s largest cities Wednesday and defended a government decision to allow a local gold mine to dump its waste into nearby fish habitat.

“Obviously, when you dig holes here you create some environmental issues and those have to be addressed, but that can’t stop development, any more than we would let that stop development in Toronto, Montreal or Vancouver,” Harper said, drawing applause from local workers at the Meadowbank gold mine.

“The people here care about the environment. They’re partners in the environment, but they have as much right to development and opportunity as people in any other part of the country.” Continue Reading →

Prime Minister Stephen Harper pushes mining expansion in Arctic – by Gloria Galloway (Globe and Mail – August 25, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

The GDP in this territory [Nunavut] rose nearly 15 per cent last
year, due in large part to the [Agnico-Eagle] Meadowbank
mine. And developers are considering 10 to 12 other mines
for gold, uranium, diamonds and iron ore.

“Development of the North’s awesome resource potential
is a national economic challenge, which could yield
enormous national economic benefits…The primary
beneficiaries will be Northerners themselves, but the
wealth generated here will create jobs and opportunities
for Canadians all across the country.” (Prime Minister
Stephen Harper – Baker Lake, Nunavut – August 24, 2011)

BAKER LAKE, NUNAVUT – While Billie-Jo Eindhoven’s friends back in the Nunavut hamlet Rankin Inlet are having babies, she is 300 kilometres away, driving 150-tonne trucks around the rocky pit of the Meadowbank gold mine.

Ms. Eindhoven, 24, started off as a kitchen helper, and moved to the trucks five months later “mostly for the challenge,” she said on Wednesday after Prime Minister Stephen Harper and his entourage arrived at what is now the only working mine in this territory.

The recent surge in the price of gold, which is still above $1,700 an ounce despite a recent dip, has made it easier for the Prime Minister to boast about the burgeoning development of the natural resources that lie below the tundra in Canada’s far North. Continue Reading →

John Diefenbaker’s “A New Vision” Northern Speech – (February 12, 1958)

John G. Diefenbake’s “A New Vision” speech was given at the Civic Auditorium, Winnipeg, 12 February 1958

Ladies and gentlemen, we started in the last few months, since June the 10th, to carry out our promises, and I can tell you this, that as long as I am Prime Minister of this country, the welfare of the average Canadian will not be forgotten. We intend to launch for the future, we have laid the foundations now, the long-range objectives of this party.

We ask from you a mandate; a new and a stronger mandate, to pursue the planning and to carry to fruition our new national development programme for Canada. For years we raised that in the House of Commons, and those in authority ridiculed it. Day before yesterday, Mr. Pearson came out in favour of a national development policy. Why didn’t they do it when they were in power?

This national development policy will create a new sense of national purpose and national destiny. One Canada. One Canada, wherein Canadians will have preserved to them the control of their own economic and political destiny. Sir John A. Macdonald gave his life to this party. He opened the West. He saw Canada from East to West. I see a new Canada – a Canada of the North. What are these new principles? What are our objectives? What do we propose? We propose to assist the provinces, with their co-operation, in the financing and construction of job-creating projects necessary for the new development, where such projects are beyond the resources of the provinces. Continue Reading →

Nunavut’s future is underground, says Harper – Allan Woods (Toronto Star – August 25, 2011)

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

“Our government is the first since that of Prime Minister Diefenbaker to put the north at the top of Canada’s agenda. We put it there and we will keep it there, and the north’s best years are only beginning.” (Prime Minister Stephen Harper – Agnico-Eagle’s Meadowbank Mine, Nunavut – August 24, 2011)

BAKER LAKE, NUNAVUT—A gold mine on the tundra is helping Nunavut blast, haul, crush, melt and pour its way to prosperity and that is just the way Prime Minister Stephen Harper wants it to be.

The future in this long-impoverished territory is under the ground and the role he has set for his government is to help mining companies find it. The environmental consequences won’t exactly be damned, but they won’t exactly stand in the way either.

“Obviously when you dig holes here, you know, you create some environmental issues and those issues have to be addressed, but that can’t stop development any more than we would let that stop development in Toronto, Montreal or Vancouver,” Harper said at the Meadowbank Mine, which is owned by Toronto-based Agnico-Eagle Mines Ltd.

There are “extraordinary circumstances” in which the government has and would refuse to permit certain projects to go ahead. Under normal circumstances, when the environmental checks and balances are completed “we want to see projects occur,” Harper said. Continue Reading →

Chavez nationalizes all gold mines in Venezuela – Globe and Mail Editorial (August 25, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous impact and influence on Canada’s political and business elite as well as the rest of the country’s print, radio and television media.

What Hugo Chavez, the Venezuelan President, intends to do with his decree on Tuesday nationalizing all the gold mines in the country is by no means clear; in particular, it is not known whether any compensation, let alone how much, will be offered. There has been a Canada-Venezuela Investment Protection Treaty since 1996, which might help.

Before this week’s decree, two Canadian companies, Crystallex International Inc. and Gold Reserve Inc., were already suing the Venezuelan government because they had been deprived of their gold interests, in unwieldy international arbitration proceedings under the treaty. As it happens, Gold Reserve Inc. revised its claim upwards in August, to $2.1-billion.

Rusoro Mining Ltd., a Vancouver-based firm that is now the only non-Venezuelan company to be actually mining gold in the country, is remaining calm. It has some reason to hope that the nationalization is aimed at wildcatters and smugglers in the southeastern state of Bolivar, not at enterprises of any size. But the company may be prudently refraining from provoking Mr. Chavez by expressing concern. Continue Reading →