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Canadian [mining] interests and values are aligned – by Marketa Evans (Canadian Mining Journal – December, 2011)

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

Marketa Evans is the Government of Canada’s Extractive Sector CSR Counsellor. The CSR Counsellor is a special advisor to the Minister of International Trade. The Counsellor has no policymaking role and does not represent Government of Canada policy positions.

I am delighted to begin a new “Corporate Social Responsibility and Mining” column for Canadian Mining Journal. Over the coming months, you can expect this column to explore some key issues in the rapidly evolving CSR landscape.

Let’s start with a little recent history. When I first wrote a guest column for this magazine in April 2007, I saw a significant opportunity for the Canadian mining industry to drive a leadership position on social issues in emerging markets.

The industry, I argued then, “will be judged on its ability to manage social issues” in countries where “domestic regulation and accountability” may be weak. The good news, I said then, and still believe, is that on issues of CSR and mining, Canadian interests and Canadian values are aligned.

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Total’s Joslyn mine approval triggers Tory calls for speedier review process – by Shawn McCarthy and Carrie Tait (Globe and Mail – December 9, 2011)

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 AND CALGARY— The Harper government has approved Canada’s fifth oil sands mine after the project spent six years under regulatory scrutiny, prompting a senior cabinet minister and energy executives to argue lengthy reviews are unacceptable.

France’s Total SA and its partners are now free to build their proposed Joslyn North strip mine after Joe Oliver, the federal Natural Resources Minister, gave Ottawa’s blessing Thursday, while pushing for regulatory reforms.

Mr. Oliver said the approval process for projects like the Joslyn North effort should take no more than two years. His comments, made in Ottawa, come as global leaders struggle to hammer out a new climate change treaty in South Africa. Mr. Oliver’s push to speed up the approval process will further fuel criticism of Canada’s oil sands industry, which is expected to double production by 2020 to three million barrels of crude per day.

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Mining Films Paint an Ugly Picture – by Patrick Whiteway (Canadian Mining Review – June 1, 2010)

http://canadianminingreview.typepad.com/canadian-mining-review/

To turn the industry’s negative image around, the mining industry needs to invest millions in new films

Canada’s latest contribution to popular culture, Justin Bieber, is bathing in positive publicity. His Twitter page tells 2.8 million followers, largely pre-teen girls, seemingly everything about him. And a music video of his song Baby has been viewed 171 million times on You Tube (as of June 1, 2010).

Not so with the mining industry. Mining publicity in today’s popular culture is exclusively negative, documenting the shenanigans that go on in the industry.

Two films about gold mining, for example, were screened recently in Toronto at the Canadian International Documentary Festival, more commonly known as the HotDocs Festival. One was the world premiere of The Devil Operation directed and produced by Stephanie Boyd.

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NEWS RELEASE: GRAVELLE CITES THE ‘GOOD AND BAD’ IN FOREIGN OWNERSHIP, TAKEOVERS OF MINES

Claude Gravelle in the federal NDP Member of Parliament for the riding of Nickel Belt. http://claudegravelle.ndp.ca/

2011 12 08

Public disclosure, full reviews needed for takeovers and Ring of Fire project

 OTTAWA, ON – At a Parliament study hearing on northern resources Wednesday, Nickel Belt MP Claude Gravelle used the appearance of a Northeastern Ontario group to raise the “good and bad” of foreign ownership and takeovers of mining companies and the giant chromite “Ring of Fire” project.

 Citing this week’s news on a Polish firm takeover bid of Quadra FNX, Gravelle acknowledged foreign ownership sometimes will happen but Canada’s record has not been good on takeovers.

 “Contrary to what some people will tend to make you believe, the NDP is not against foreign ownership, but we are against foreign takeovers,” Gravelle said. “I have three private member’s bills that would make foreign takeovers more transparent, would involve the communities, and would involve workers.”

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RepublicOfMining’s Stan Sudol interviewed about Far North Act on The Gary Doyle News Radio Show

570 News listeners have come to know the “Gary Doyle Show” as a voice for better living in the community. Each day from Noon to 3:00pm, Gary brings a non-controversial and non-confrontational approach to topics of lifestyle, money, health, finances and more. With the big news stories of the day in mind, Gary will also …

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Quadra Takeover Up for Grabs With Escalating Price Driving Deal – by Tara Lachapelle and Liezel Hill – (Bloomberg.com – December 8, 2011)

http://www.bloomberg.com/

Quadra FNX Mining Ltd. is poised to secure the largest takeover price increase in North America as the cheapest copper bid on record leaves room for Vale SA (VALE3) or Antofagasta (ANTO) Plc to make a competing offer.

Poland’s KGHM Polska Miedz SA agreed this week to buy Quadra for C$2.28 billion ($2.26 billion) including net cash, valuing the Canadian miner at 5.2 times net income, the lowest for a copper takeover of similar size, according to data compiled by Bloomberg. The price is also a 36 percent discount to net asset value, based on analysts’ estimates compiled by Bloomberg. After closing 5.4 percent above the bid yesterday, Quadra is more likely to draw a higher offer than any other deal greater than $500 million in North America, the data show.

While the Vancouver-based company agreed not to solicit rival proposals to KGHM’s C$15 a share in cash, Quadra may still lure offers from Vale (VALE5) or Antofagasta with its copper deposit in Chile and mines in the U.S. and Canada, according to Stifel Nicolaus & Co. With analysts expecting Quadra to reach C$18.28 in the next 12 months as an independent company, a bidding war may push the price tag to as much as C$28.25, 88 percent higher than the current agreement, said Salman Partners Inc.

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NEWS RELEASE: Rare earth metals scarcity: A ‘ticking timebomb’ for the world, asks PwC?

Click Here For: Minerals and metals scarcity in manufacturing: The ticking time bomb

  • Chemical, energy and auto industry in ‘red alert’ over disruption of supply
  • Manufacturers will struggle to keep up with demand
  • 14 raw materials named as ‘critical’

London, 7 December 2011 — Seven core manufacturing industries could be seriously affected by a shortage of minerals and metals, which could disrupt entire supply chains and economies, according to new PwC research.

PwC surveyed some of the largest manufacturing businesses across manufacturing, chemicals, automotive, energy/renewable energy, aviation, metals, infrastructure and high-tech hardware to see what impact such a scarcity would have, and where, over the next five years.

Of these, business leaders in automotive, chemicals, and energy sectors fear they will be hit hardest according to PwC’s Minerals and metals scarcity in manufacturing: A ‘ticking timebomb’, report.

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PwC Website: Minerals and metals scarcity in manufacturing: The ticking time bomb

Click Here For: Minerals and metals scarcity in manufacturing: The ticking time bomb

The fine line between ‘just in time’ and ‘just not there’

With a growing population, increasing GDP levels and improving lifestyles, we’re consuming more and more. Renewable and non-renewable resources—energy, water, land, minerals—are in ever-higher demand. And since the relationships between these resources are strong, both the causes of, and the solutions to scarcity are complex. Which, for a manufacturing organisation with a global supply chain, can spell trouble.

Minerals and metals scarcity—explosive prices, delivery delays

In Minerals and metals scarcity in manufacturing: The ticking time bomb, we explore the impact that minerals and metals scarcity is likely to have on seven manufacturing industries. We interviewed senior executives in many of the leading organisations that are central to the future growth of these industries to gauge the relevance and effects of this scarcity.

We found that the supply of many minerals and metals is struggling to keep up with rapid increases in consumption, resulting in price hikes and delivery delays. For example, dysprosium, an essential component of super magnets, and tantalum, an important component in aircraft and medical equipment, automotive electronics, mobile phones and LCD screens, have both experienced explosive price increases in recent years.

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Quebec Bill 14 a blow to mineral industry – by Marilyn Scales (Canadian Mining Journal – December 6, 2011)

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.

The Quebec government has introduced Bill 14 that will give local communities rather than the province the right to control where and when mineral exploration and development takes place. It has the Quebec Mineral Exploration Association (AEMQ) up in arms, and with good cause.

In the words of the AEMQ, the bill is appalling and the government is abandoning its fiduciary responsibility to manage mineral resources. Bill 14 gives that responsibility individually to 1,200 local entities, making the administration of Quebec mineral resources “messy” and “incoherent”.

“By giving municipalities the option to reject exploration activities, the government of Quebec is setting up an environment of unprecedented instability within Quebec’s mineral business sector. In spite of a favourable global environment and high metal prices, once adopted, Bill 14 will instil doubt on the stability and predictability of our mining system”, said AEMQ president Jean-Marc Lulin. 

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Investors question ‘cheap’ takeover offer for Quadra FNX – by Brenda Bouw (Globe and Mail – December 7, 2011)

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.

Quadra FNX Mining Ltd. has agreed to a $3-billion takeover by Polish copper producer KGHM Polska Miedz SA, triggering criticism the company is accepting a low-ball offer due to an overly cautious view of the metal’s prospects.

The $15-a-share, all-cash bid offers a 40-per-cent premium to Quadra’s recent stock price. But some investors believe it’s a stingy offer that undervalues the company’s assets, which include the promising Sierra Gorda copper project in Chile and operations in Sudbury, Ont.

“Unless the operations are running much weaker than expected, we do not see why one of the most bullish copper companies is selling out so cheap,” said Cormark Securities analyst Cliff Hale-Sanders. .”

Toronto-based hedge fund West Face Capital Inc., which said Tuesday that it owns a 6-per-cent stake in Quadra, called the bid opportunistic. “Given the fact that the shares were trading at $16 a few months ago, it is puzzling that the board did not attempt to contact any other purchasers or run a process,” said chief executive officer Greg Boland.

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Quadra FNX agrees to $3.5-billion takeover [by Polish miner KGHM Polska] – by Peter Koven (National Post – December 6, 2011)

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

Canadian copper miner Quadra FNX Mining Ltd. has agreed to be acquired by Polish mining giant KGHM Polska Miedz S.A. in a $3.5-billion all-cash deal. The offer is worth $15.00 a share and is a 32% premium over Quadra’s closing price on Monday. However, Quadra shares traded at higher levels early this year.

The stock jumped 36% to $15.40 in early trading in Toronto, just slightly above the KGHM offer, as investors speculated on the possibility of a higher bid.

Paul Blythe, Quadra FNX’s chief executive, said in a statement that the two companies held talks earlier this year about a joint venture to develop Quadra’s giant Sierra Gorda project in Chile. Then in recent weeks, KGHM made a proposal for the whole company.

“The proposal represents a significant premium to the current share price and we are recommending that our security holders vote in favour of the transaction,” he said.

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NEWS RELEASE: KGHM begins process of acquiring Canadian mining company [QuadraFNX]

Lubin, 6 December 2011

KGHM Polska Miedź S.A. intends to acquire the mining company Quadra FNX, listed on the Toronto, Canada stock exchange. As a result of entering into today’s agreement, the process of friendly acquisition of this company has begun. KGHM will come into possession of world-class ore bodies and
operating copper mines situated in Canada, the USA and Chile. The value of
this transaction amounts to USD 2,83 billion, and will be financed by the cash resources of KGHM.

The acquisition of Quadra FNX will increase production next year by the KGHM Group by approx. 25%, i.e. 100 thousand tonnes of mined copper, and ultimately by nearly 50%. Total mineral resources will increase by more than 8 million tonnes of copper, i.e. by 28%, putting KGHM into fourth place globally. KGHM is also considering the production of other metals, such as nickel and molybdenum.

There will also be a significant increase in the production of gold and other precious metals. Thanks to the acquisition of attractive mining projects, over several years the KGHM Group will substantially reduce its costs of production. This acquisition will strengthen the position of KGHM on the copper market, and will enable the growth of the company, as foreseen by the Company’s strategy, in the mining sector.

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Attawapiskat: await the audit – Thunder Bay Chronicle-Journal Editorial (Thunder Bay Chronicle-Journal – December 2, 2011)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

HOW does a remote native community of 2,000 people that receives $18 million a year in federal funds alone — $90 million in total since 2006 — wind up in such a wretched state? Attawapiskat on the James Bay coast is not alone among reserves in poverty, but it’s housing conditions are top of mind across Canada as winter sets in. Large families living in shacks and tents is a national disgrace.

Uninformed critics blame the band council without knowing the details. Those details will shed light where it belongs, but everyone must wait for that information before coming to conclusions.

Others say the Harper government is blaming the victim, so to speak, for taking control of local spending out of the band’s hands and ordering an audit. This examination of spending will look at where it comes from as well as where it goes. The Aboriginal Affairs and Northern Development department will thus be under as much scrutiny as the band itself. This alone may prove to be the most illuminating aspect of the audit, for it could shed light on a system of bureaucracy that First Nations have long complained is too complicated and restrictive.

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Debeers Representative Tom Ormsby Speaks to CBC Radio/TV About Attawapiskat Crisis

The housing crisis in Attawapiskat has some wondering why the community isn’t benefitting more from the nearby diamond mine. DeBeers Canada Director of External and Corporate Affairs Tom Ormsby spoke with various CBC Radio and TV interviewers: CBC Televion Interview between Tom Ormsby and Suhana Meharchand – November 30, 2011 http://ca.news.yahoo.com/video/canews-22424922/diamonds-at-attawapiskat-27436870.html CBC Radio Ottawa – November …

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Consulting sector buzzing – by Norm Tollinsky (Sudbury Mining Solutions Journal – November, 2011)

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

Euro zone debt, American stagnation and a slowdown in China paint a picture of economic doom and gloom, but Northern Ontario’s mining engineering consulting firms have never been busier.

Sudbury and North Bay staff with Hatch, Stantec, Wardrop, AMEC and Knight-Piésold are busy working on projects across Canada and around the world, and are bullish about the next few years.

The engineering consulting sector in northeastern Ontario constitutes an important sub-section of the region’s mining cluster, employing upwards of 600 engineers, scientists, technicians and administrative staff.

This wasn’t always the case.  Wardrop, now part of Pasadena, California-based Tetra Tech, started out with a three-man operation in 2001 and today has 50 employees at its Sudbury office. Stantec, formerly McIntosh Engineering, had one or two people in Sudbury in 2008 and now has 92, with approximately 100 more in North Bay.

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