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Canada Mining

Mining legend built legacy by giving back [John Larche dies] – by Kyle Gennings (Timmins Daily Press – October 8, 2012)

The Daily Press is the city of Timmins broadsheet newspaper.

Timmins lost one of the golden pillars of its community this Thanksgiving Day. John Larche died of natural causes, surrounded by his family at Timmins and District Hospital on Monday morning. He was 84.

It was the final page in a life highlighted by a long list of accomplishments which changed the face of the prospecting and mining industry the world round; it was the final page in a life that saw both hardship and success, one that was built on giving back, a life that cemented him in the memory of the City with the Heart of Gold

Larche was one of the true legends of the Porcupine Camp, as one of Canada’s most successful prospectors and in term of generosity in the community. He became involved in exploration in 1955, as an independent prospector and contractor.

He remained active in the industry until shortly before his death. Beginning in the late 1960s, he was elected president of the Porcupine branch of the Prospectors and Developers Association for 17 consecutive terms.

“He was a long-time friend,” said Dean Rogers, the association’s current president. “John was one of the stalwarts of the Porcupine Camp’s second generation, a true legend”

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Foreign junket rules allow MPs to fly under the radar – by Barrie McKenna (Globe and Mail – October 8, 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 — Imagine that a Canadian company flies a group of MPs and their spouses to a conference in Paris or Hong Kong, puts them up in a luxury hotel, and then plies them with food and wine. Think this kind of junket is prohibited? Not necessarily.

The conflict-of-interest code for members of Parliament prohibits accepting “any gift or benefit … that might reasonably be seen to have been given to influence the member.”

But there’s a special exemption for travel if it “relates” to an MP’s work in the House of Commons, providing that details are disclosed to the federal ethics commissioner.

The result is a troubling contradiction. It’s sometimes okay for MPs to accept free travel from people who are actively lobbying them. “It’s a gaping hole in the MPs’ ethics rules,” argued Duff Conacher, the founding director of Democracy Watch.

“If someone’s lobbying you, they shouldn’t give you anything,” he said.

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Resources: The flashpoint of 2015’s election – by John Ibbitson (Globe and Mail – October 8, 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 federal election of 1988 was so important that both sides agreed the very future of the country was at stake. The federal election of 2015 could be of similar nature. Then, the issue was trade. This time it could be resources.

The government and the opposition are dividing, with increasing bitterness, over whether and how Canada should exploit its resource wealth – especially petroleum. The question encompasses jobs, the environment, international relations, and regional growth and decline.

“The real issue is the vision of the future economically and environmentally,” NDP natural resources critic Peter Julian said in an interview. “These are the kinds of issues that will be front and centre in the next campaign.”

Twenty-five years ago last Thursday, as many have noted, Canada and the United States signed a free-trade agreement. But the country was bitterly divided over that issue, as well, ultimately forcing Brian Mulroney’s Progressive Conservative government to call – and win – an election.

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A nine-step plan to fix Canada’s resource economy – by Barrie McKenna (Globe and Mail – October 6, 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 — Canada will never be a true resource superpower until it shuns “rip-and-ship” extraction, embraces sustainability and shares the wealth with future generations.

Those are among the key conclusions of a provocative new report by the Canadian International Council, entitled “Nine Habits of Highly Effective Resource Economies.” Canada has won the “geological lottery,” with vast stores of resources that the world craves, but it risks squandering that inheritance because it lacks a clear national plan to exploit them wisely, the CIC says.

The foreign affairs think tank points to Norway, Sweden, Finland and Australia as the best examples of countries successfully leveraging their resources for maximum economic and social benefit.

“Other resource producers do a better job of collaborating, of finding a balance between environmental protection and the economy, of adding, building, or extracting value from their resources, of saving for future generations, and of being strategic about resource development,” according to the report, written by Madelaine Drohan, The Economist’s Canadian correspondent and former Globe and Mail reporter. “There are smaller countries with fewer resources than Canada that punch far above their weight on the global stage.”

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MPs arrested over Canadian mine protest – by Olga Dzyubenko (Globe and Mail – October 5, 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.

BISHKEK — Reuters – Kyrgyzstani police on Thursday arrested three members of parliament who had led a crowd that tried to storm government headquarters in a protest over a Canadian-owned gold mine, Centerra Gold.

Wednesday’s clashes between police and supporters of the opposition Ata Zhurt party in the former Soviet republic were the most violent in the capital, Bishkek, since the April, 2010, revolt that ousted then-president Kurmanbek Bakiyev.

The protesters want the mine, crucial to Kyrgyzstan’s fragile economy, to be nationalized. The three parliamentarians – Kamchibek Tashiyev, Sadyr Zhaparov and Talant Mamytov – are being held on suspicion of trying to seize power. Prosecutors have 48 hours to decide whether to charge them.

On Thursday, about 1,000 supporters rallied in the main square of the southern city of Jalalabad, their power base, to demand their release. There was no violence. “Parliament, the President, the government should resign because they are not resolving the Kumtor issue,” one demonstrator shouted through a megaphone.

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Rebounding gold miners ‘have got religion’ – by Pav Jordan (Globe and Mail – October 4, 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

Buoyed by a new mantra of cost discipline, Canadian gold miners are starting to catch the wave of booming bullion prices after a summer of woe.

From major producers like Barrick Gold Corp., Goldcorp Inc. and Kinross Gold Corp. to junior explorers, gold mining stocks are booming, propelled by a shift in the industry to restrain spending and focus on profits and cash flow, rather than pursue reckless strategies that favoured growth at any cost.

The spot price of gold danced around $1,779 (U.S.) an ounce on Wednesday, or about seven times where it was a decade ago, when central banks were bailing out of the metal. Today, banks are piling back into gold to hedge their U.S. dollar reserves as forecasts for gold prices climb above $2,000 an ounce. And gold stock prices are beginning to catch fire.

Drastic shifts in corporate strategies are helping gold companies and their shares, repairing a disconnect between their valuations and the price of the metal. Risk-weary investors had favoured exchange-traded funds (ETFs) for exposure to gold, rather than shares of the miners themselves.

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In gold, iron ore they trust – by Marilyn Scales (Canadian Mining Journal – October 2, 2012)

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.

Mining companies appear to be having an easier time attracting investors recently – particularly if they have a gold or iron ore project. Both commodities have been hot, hot, hot the past year, and developers are prospering.

Labrador Iron Mines Holdings of Toronto has arranged at $30-million bought deal public equity financing. The company calls itself “Canada’s newest iron ore producer” having begun production at its James direct shipping ore iron mine earlier this year. Now LIM will issue 30 million common share at a price of $1.00 each. The deal is underwritten by Canaccord Genuity that is also entitled to an overallotment of 4.5 million shares. The net proceeds are to used for working capital and general corporate purposes.

Premier Gold Mines of Thunder Bay, ON, has arranged a $58.5 million deal consisting of a bought deal public offering and flow-through shares. The company has a number of active exploration projects in Ontario and Nevada. A syndicate of underwriters led by RBC Capital Markets has agreed to purchase 6.58 million common shares at $6.08 each plus 2.61 million flow-through shares at $7.08 each. The underwriters have been granted an overallotment option of 15%. Premier will use the net proceeds of the flow-through shares on its Canadian projects; the balance could be spent in the United States.

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China joins nations seeking treasure in warming Arctic – by Elisabeth Rosenthal (New York Times/NBC News – September 19, 2012)

Visit NBCNews.com for breaking news, world news, and news about the economy

 http://www.nbcnews.com/

Bid to join Arctic Council is so ‘it won’t be shut out from decisions on minerals and shipping,’ expert says

NUUK, Greenland — With Arctic ice melting at record pace, the world’s superpowers are increasingly jockeying for political influence and economic position in outposts like this one, previously regarded as barren wastelands.

At stake are the Arctic’s abundant supplies of oil, gas and minerals that are, thanks to climate change, becoming newly accessible along with increasingly navigable polar shipping shortcuts. This year, China has become a far more aggressive player in this frigid field, experts say, provoking alarm among Western powers.

While the United States, Russia and several nations of the European Union have Arctic territory, China has none, and as a result, has been deploying its wealth and diplomatic clout to secure toeholds in the region.

“The Arctic has risen rapidly on China’s foreign policy agenda in the past two years,” said Linda Jakobson, East Asia program director at the Lowy Institute for International Policy in Sydney, Australia. So, she said, the Chinese are exploring “how they could get involved.”

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Mine clean-up rules too lax, critic says – by Elizabeth McMillan (CBC News North – September 29, 2012)

http://www.cbc.ca/news/

Taxpayers still may end up with massive bills like Giant Mine in future, says MiningWatch

When Royal Oak Mines went bankrupt more than a decade ago, it left behind a toxic legacy that Canadian taxpayers are still paying to clean up.

The federal government had to take responsibility for two of the company’s gold mines in the Northwest Territories — Giant Mine in Yellowknife and Colomac, located about 220 km northwest of the capital. Giant is one of the most contaminated sites in Canadian history and it will be one of the most expensive to clean up.

The company’s costly wake leaves some wondering whether enough has changed to prevent taxpayers from getting similar bills in the future. MiningWatch Canada said recent examples such as Jericho diamond mine in Nunavut show money set aside by mines for clean up isn’t always adequate.

“One thing that has happened time and time again is that there are surprises and cost overruns at the time of closure,” said Ramsey Hart, MiningWatch’s Canadian program co-ordinator. “Certainly we’d like to see some contingency funds set aside for unanticipated events.”

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Mining drives new MBA approach – by Denise Deveau (National Post – September 25, 2012)

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

When a sector has achieved global leadership status, the demand for skills can stretch beyond the output of mainstream education channels.

This is very much the case in the mining sector, where the appetite for knowledge about how the industry and system works is driving a new approach to MBA studies.

According to Jean Vavrek, executive director for CIM (Canadian Institute of Mining, Metallurgy and Petroleum) in Montreal, skill sets are changing more and more in the line of “softer issues” related to social acceptance and license.

“The industry is dealing with much more complex environmental issues, more regulations, deeper ore bodies, remote exploration … the dynamics and the management challenges are only getting bigger,” he says. “So is the potential for career development.”

Canada needs to accelerate the development of future leadership, Mr. Vavrek adds. “The potential on the management side is big, from project management and capital expenditures to exploration and development. What managers are facing today in this sector dwarfs most other industries.”

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At Trade Show, Makers of Mining Equipment Push Cost-Savings – by James R. Hagerty (Wall Street Journal – September 24, 2012)

http://online.wsj.com/home-page?mod=WSJ_topnav_’home_main

LAS VEGAS—Companies that sell equipment and services to mining companies have geared up for a boom—just in time to see miners cut capital spending due to weak commodity prices.

The MINExpo International trade show, which began here Monday and is sponsored by the National Mining Association, is billed as the largest collection of mining equipment ever gathered. The number of exhibitors total 1,890, up 45% from the previous show four years ago, and cover 860,000 square feet of exhibitions, up nearly 40% from the last show.

But in a sign of hard times hitting the industry, Caterpillar Inc. Monday lowered its forecast for profit growth over the next few years, citing weaker demand for construction and mining equipment.

Around the world, mining companies are cutting costs and delaying some projects. Still, executives at the Las Vegas trade show insisted the slowdown will be short-lived. “We still believe we are in the very early innings” of the economic development of China, India and other fast-growing markets, Mike Sutherlin, chief executive officer of Milwaukee-based equipment maker Joy Global Inc., JOY -1.08% said during a panel discussion.

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Huge potential in China deal – by John Ivison (National Post – September 25, 2012)

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

Four in 10 Canadians see China as a threat, if opinion polls are to be believed. Seven in 10 oppose approval of the $15.1-billion bid by China’s CNOOC for Calgary oil company, Nexen.

For a prime minister in need of a bump in his approval ratings, it must be tempting to go for the political sugar by nixing the Nexen deal. This was clearly the fear of China’s ambassador in Ottawa, Zhang Junsai, who is urging that the deal be judged solely on business terms. “If we politicize this, we can’t do business,” he told the Globe and Mail.

But for the Harper government to bow to its baser political instincts would be to put short-term political self-interest ahead of the long-term prosperity of the country. There appear to be no reasons of any substance to blow up the transaction.

The Industry department is weighing whether the Nexen purchase is of “net benefit” to Canada. This is pretty simple arithmetic, given the 66% premium CNOOC is willing to pay Nexen’s shareholders. Much of that money will be re-invested in the Canadian economy – a net benefit by any measure.

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Why the metal industry is getting harder – by By David Garofalo (Canadian Business Magazine – September 20, 2012)

 http://www.canadianbusiness.com/

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

The recent conflicts at mines in developing nations—the violence erupting in South Africa, Guatemala, Panama and elsewhere this summer—are unsettling and deplorable. Yet they illustrate the new context for mining companies around the world, which often goes unexplored in mainstream coverage.

The new reality of the global mining industry is that most of the large, high-grade mine operations located in favourable jurisdictions are getting long in the tooth. As production at these mines inevitably declines with time, mining companies are forced to look farther afield for new supply. Since all of the near surface high-grade deposits have been discovered, companies are now looking at more geologically challenging deposits, usually with lower-grade ore. Often, this means considering development opportunities in areas that are not only more complex geologically, but also carry more social and political risks.

Among other things, this explains the chronic deficit in copper supply the world has experienced over the past four years. Average copper production grades have fallen dramatically over the past decade. Simply to maintain output, companies have to process much higher tonnages in order to sustain consistent production. Increased demand from developing economies has created a supply crisis—the term is not too strong.

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Barrick Gold closes Peruvian mine for one day after violent clashes – by Vanessa Lu (Toronto Star – September 21, 2012)

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.

Barrick Gold is resuming operations Friday at its Pierina mine in Peru after violent clashes this week between police and nearby villagers left one person dead and four injured.

In an official statement from its Peruvian unit, Barrick, which is the world’s largest gold producer, said its mine operations were suspended Thursday out of mourning for “the unfortunate event.” The dispute centres on a disruption in the local water supply, which Barrick says is out of its control, blaming drought conditions.

The open-pit mine is high in the Andes in north-central Peru at an altitude of 4,100 metres above sea level. While it was once one of Barrick’s bigger mines, Pierina produced 152,000 ounces of gold in 2011, out of a company-wide total of 7.7 million.

Mining is central to Peru’s economy. The country is a key producer of gold, copper, silver and zinc, but opposition has long existed from locals, who worry about environmental problems and possible contamination of the water supply.

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Mining Association of Canada (MAC) focuses on transparency, free trade (Canadian Mining Journal – September 19, 2012)

The Canadian Mining Journal is Canada’s first mining publication providing information on Canadian mining and exploration trends, technologies, operations, and industry events.

VANCOUVER — For Mining Association of Canada (MAC) president and CEO Pierre Gratton, the future of the nation’s mining industry lies in clear cut regulatory reform and the cultivation of global free trade arrangements geared towards expediting the flow of goods and capital across international borders. In a speech at a Vancouver Board of Trade luncheon on Sept. 7, Gratton outlined his vision of a unified Canadian resource sector operating under clearly defined regulatory legislation.

One of the perceived problems with the current Canadian regulatory model lies in layers of reviews that criss-cross over provincial and federal jurisdictions. Gratton is quick to point out that when Canada first initiated its Environmental Review Act in 1993 the majority of provinces did not have comparable pieces of legislation,

“If you clear away the rhetoric with what is going on, and focus on the dual [provincial-federal] review regulations, I think it will make things better. As proponents of the industry we hear from communities expressing frustration they experience by being consulted twice on the same project,” Gratton explained during a question period. “What we’re doing 20 years later is taking a step back and saying ‘Do we really need these two systems doing this in parallel?

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