Canada Mining – Page 390 – Republic of Mining

Not another wimp out [Comparisons to Brazilian Takeover of Inco] – by Martin Goldfarb (Toronto Star-April 18, 2011)

June 10, 2015April 18, 2011

The Toronto Star, which is the largest circulation newspaper in the country, has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion.

Martin Goldfarb is principal at Goldfarb Intelligence Marketing and was official Liberal party pollster from 1972 to 1984.

Inco is an example worth remembering. At one point Inco was
a global leader, dominating a mining category. It was the soul
of the city of Sudbury and added stature to Ontario. It produced
intellectual property in the mining industry that was second to
none and respected globally. It provided work to miners, engineers, lawyers, bankers and others. So much of this was lost. The intellectual property and pride that Inco brought to Canada,
Ontario and Sudbury are all but gone. What happened? Management ceased to lead. In so doing it became vulnerable to takeover. (Martin Goldfarb-April 18, 2011)

Australia said No to Singapore. Australia decided its stock exchange is not for sale. Now we in Canada are thinking about whether or not the Toronto Stock Exchange (TSX) should be taken over by the London Stock Exchange (LSE).

A country is more than a business. There are totems in our country that define our personality, help create our character and engender pride, independence and a sense of our own charisma. Some arise from our geography (the Rockies, the Arctic), some from our natural resources (oil, water, lumber, maple syrup) and some from government (national health care). All help give us a sense of who we are.

But there are other totems in Canada that are not a function of our geography, our geology or our government. These are institutions created by the citizens of our country in business and academia — our universities and our internationally recognized businesses, such as RIM today, and in the past, Inco and Falconbridge. Inco and Falconbridge have disappeared but should never have been allowed to do so. A dose of economic nationalism is good for our soul. In some circumstances, profit should be second to the national interest. National interests help define who we are.

A War of Words or a War of Worlds: Brazilian Vale versus North American USWA – by Kim T. Morris (Part 3 of 3)

June 10, 2015April 15, 2011

Kim Morris won third place in the 2011 Arthur W. Page Society and Institute for Public Relations case study competition – business school category.

Her case study entry was on the Vale Sudbury year long strike – A War of Words or a War of Worlds: Brazilian Vale versus North American USWA. She is a senior adviser of communications and public affairs at the North East Community Care Access Centre.

Discussion

Reputation

Public perception of Vale has changed dramatically since 2006. There is mistrust and suspicion surrounding the company’s motives and future plans for the Sudbury operations. Actions and decisions made during the 11 month strike have tarnished Vale’s reputation not only in the Sudbury area, but province-wide, and possibly internationally. Unions from across the world weighed in on the labor dispute. In January 2010, the trade magazine Metal Bulletin described Vale’s hard line as an attempt to break the union.

Reputation matters. Reputation impacts a wide variety of areas: consumer purchasing decisions, employee recruitment and retention, investment decisions, even how media covers your news [40]. From an outsider’s point of view, Vale does not seem very concerned with its reputation, choosing to place profits ahead of its people.

USWA Local 6500 also needs to rebuild and revamp its reputation. Given the lack of community support received during the strike, the actions of certain members, and the harsh and hateful words spoken during the dispute, the union has a long road ahead of it if it is to restore its reputation to where it was prior to the strike.

A War of Words or a War of Worlds: Brazilian Vale versus North American USWA – by Kim T. Morris (Part 2 of 3)

June 10, 2015April 15, 2011

Kim Morris won third place in the 2011 Arthur W. Page Society and Institute for Public Relations case study competition – business school category.

USWA Local 6500

The executive of USWA Local 6500 anticipated difficult negotiations from the start. This was a new company and the negotiating team did not know what to expect. The only thing that was clear was that there would be no concessions on the part of the union.

Talks collapsed mere weeks after they began and the gloves came off shortly thereafter with both sides blaming the other for the impasse [23]. It was at this time that the USWA Local 6500 first alleged that the root cause of the problem was a lack of understanding by Vale’s Brazilian owners as to North American culture, along with a desire to trample workers’ rights and reduce their compensation package [23].

As the months wore on, the USWA Local 6500 web page featured alleged replacement workers, providing names and addresses as well as photos of the individuals. Anonymous members posted that there should be retaliation toward these so-called “scabs”. This resulted in a flurry of threats, assaults and damage to property throughout the community. In May 2010, Vale fired nine strikers for purported violations of its code of conduct on the picket line. There were also criminal charges laid against some of the nine strikers for other offences related to the strike. The matter is still before the Ontario Labor Relations Board and the courts.

A War of Words or a War of Worlds: Brazilian Vale versus North American USWA – by Kim T. Morris (Part 1 of 3)

June 10, 2015April 15, 2011

Kim Morris won third place in the 2011 Arthur W. Page Society and Institute for Public Relations case study competition – business school category.

Final Case Study

Abstract

In July 2009, USWA Local 6500, the union representing the employees of Vale’s Sudbury operations went on strike. This was to become the longest and most acrimonious strike in Sudbury mining history. Both sides in the dispute were responsible for less than flattering behavior, including leaking of documents, bullying, making racist comments, and even criminal activity. The final result of this strike is a community that has lost respect for both organizations.

This case study offers an opportunity to study how actions taken during a strike impact on the reputation of both parties. It also highlights the communication breakdown between not only both parties but also with their key stakeholders.

Overview

“We are very happy with the results of the ratification vote. The agreement establishes a newworking relationship with our employees and the union and allows us to move forward with our long-term, sustainable growth plans. We look forward to returning to normal production andbuilding the future together with employees.”

Tito Martins, Vale’s Executive Director for Base Metals
Vale news release, July 9, 2010 [1]

Protect the [mine financing] cluster [Toronto] – by Janet Ecker (National Post-April 14, 2011)

April 14, 2011April 14, 2011

The National Post is Canada’s second largest national paper. This article was originally published in the Financial Post section on April 14, 2011.

Janet Ecker is president of the Toronto Financial Services Alliance.

The proposed merger of TMX Group and the London Stock Exchange has provoked uncharacteristicallystrong and diverse reactions within the financial community. Those mixed views were clearly displayed during four days of hearings on the deal before the select committee of the Ontario Legislature. How they will judge the strong arguments for and against the deal in their report later this month is anyone’s guess.

Whatever their verdict, and those of the review processes yet to come, we must remember that Toronto is the global leader in mining and metals financing, with TMX playing a significant role. With or without this deal, all sides agree on the need to retain that leadership.

The Toronto exchange (TSX or TSX Venture) lists nearly six in 10 of the world’s publicly listed mining companies, and last year they raised $17.8billion in equity capital -60% of the world’s total for the sector.

Rare Earths: Critical and Strategic – or the Flavour of the Month? – by Paul Stothart

April 12, 2011

Paul Stothart is vice-president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues. This article was published in February, 2011.

In political Ottawa, where parliamentarians can be exposed to dozens of different issues in an average week, it is not unusual for policy issues or media stories to acquire profile based on a superficial level of understanding. This has happened in recent months in the mining sphere, for example, where many MPs supported flawed private member’s legislation regarding international activities of mining companies so as to not be perceived as “opposing social progress”. On a broader scale, much of the art of political communications seeks to capitalize on superficiality and is oriented around developing a simple effective message and repeating it time and again. (Mining companies have communications lessons to learn on this front, though that is a subject for another day).

The same practice of applying simplistic analysis to interesting and complex policy issues may be occurring in the area of rare earths elements (REE), where the subject has acquired a high level of sex appeal among politicians in Europe, in the United States and in Canada in recent months. There are several developments that have contributed to this new heightened profile, although three are particularly relevant:

• First, commentators have become increasingly aware of the fact that China controls a high portion of the supply of the world’s processed rare earth minerals. While figures may vary among light and heavy REEs, the most commonly cited figure is that China produces 97% of the world’s rare earths.

The Competitiveness of Mineral Processing in Canada – by Paul Stothart

April 8, 2011

Throughout our history, there has been a call for greater value-added in Canadian resource production. The image of Canada as a hewer of wood and drawer of water has long irritated many Canadians – including politicians and industrial strategists who have felt that Canada should be more sophisticated and more active in manufacturing value-added products.

Rather than exporting lumber, we should export furniture or even prefab houses. In the mining sphere, rather than sending raw concentrate or bitumen abroad, we should be producing refined petroleum products, chemicals, finished jewelry, specialized metal alloys and the like. Or to move another few steps along the continuum, we should have inherent raw material advantages in producing computers, iPods, medical equipment and machinery.

There has historically been some appeal to this argument, including at the political level. Why send something abroad in an unfinished form when additional jobs and wealth could be associated with adding production value at home? This has manifested itself on some occasions in past decades, when inland mineral processing facilities in Ontario, Manitoba and New Brunswick were established largely for political reasons. Several of these facilities are today under competitive pressure – more so because of poor location rather than a failed economic model.

Mining: From “Old Economy” in the 1990s to “Sexy and Strategic” in the 2010s – by Paul Stothart

April 6, 2011April 6, 2011

Paul Stothart is vice president, economic affairs of the Mining Association of Canada. He is responsible for advancing the industry’s interests regarding federal tax, trade, investment, transport and energy issues. This article was published in April, 2011.

It is unlikely that any sector in Canada has undergone a transition in recent decades comparable to that seen within the mining industry.

The mining sector in the 1980s and 1990s was an afterthought. Mineral prices worldwide were in the dumps. Exploration and prospecting, in effect a form of R&D aimed at finding tomorrow’s stream of commodities, was neglected and the amounts invested were piddling. Attention to attracting new talent to the industry was minimal.

University mining programs closed. The sector was shunned by Canadian politicians and policymakers as old-school, dark and dirty, and non-technological. Economists and financiers held similar views. Even the leading companies such as Inco and Noranda were viewed as complacent and staid despite being world-leaders in many respects.

The contrast with Canada’s shining beacons of the day was stark.

[Minmetals bid for Equinox] When is a miner Canadian? (It’s not as simple as you think) – by Boyd Erman (Globe and Mail-April 5, 2011)

April 5, 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. berman@globeandmail.com

The multiparty merger fest that’s reshaping the copper mining industry in Canada has one very odd twist: The companies are here, but the metal is not.

The main assets in Canada for Lundin Mining Corp. , Inmet Mining Corp. and Equinox Minerals Ltd. are office space, Toronto Stock Exchange listings and investor interest. None is focused on Canada as a place to produce.

China’s Minmetals Resources Ltd., the interloper that on Sunday announced an intention to buy Equinox, is the only player that highlights its assets in Canada – a couple of exploration projects in the country’s North.

Inmet, which tried and failed to merge with Lundin, had an operating mine in Canada until last year, but no more; it now focuses on projects and exploration in countries such as Peru and Finland. The main assets for Lundin, the target of an Equinox takeover bid, are across the Atlantic, in Africa and Europe. Equinox’s big project is in Africa.

The tortured future of Elliot Lake – by Lloyd Tataryn (Saturday Night, June, 1976)

March 30, 2011March 28, 2011

This article was orginally published in Saturday Night (a Canadian general interest magazine that ceased publication in 2005) in the June, 1976 issue.

“The conditions in Elliot Lake are not the best conditions to work in to survive a normal life span. If anybody does not like to go to the hospital with lung cancer, he should have a very close look at the Elliot Lake situation before he signs on as an employee of either one of the companies. We believe that the companies should not have the right to expose people to conditions that will cause bodily harm. There has to be a clean-up programme before we can definitely advise people to seek employment in Elliot Lake.” (Paul Falkowski, United Steel Workers of America, Environmental Representative – June 1976)

The uranium miners there are dying of cancer at three times the normal rate. But what can a single-industry town do about it? Close down? Or live with death?

His voice broke in mid sentence. His eyes were red-rimmed and he fought back tears.

“I could be healthy, still workin. Now I have dust plus cancer. And the family is all upside down. Dad’s gonna die maybe today, maybe tomorrow, we don’t know.” His voice broke once again. “And that’s the way it looks like. It’s bad. It’s very bad for a family. Family’s more hurt than me. Cryin’, you know. Disaster.”

It was the type of interview that makes a documentary a success. It was also the type of interview that makes a journalist fell parasitic. One is pleased with having captured an extremely moving moment on tape. But one also feels exploitative for having the presumption to ask a dying man to spill his emotions into your microphone.

Here was a forty-four-year-old man who had spent fifteen years digging and blasting a living in the Elliot Lake uranium miners in northern Ontario. The work was back breaking, the kind of work that makes a man tough and hard. Miners a proud of the strong, vigorous image they project. They don’t cry in public. They don’t cry, that is, unless they are overwhelmed by events and their defences have been destroyed.

[Canada Mining] Underground Takeover – by Mike Blanchfield (Sharp April, 2011)

March 23, 2011March 23, 2011

Sharp is Canada’s largest men’s lifestyle magazine, covering fashion, technology, cars, food, booze, culture and current events from an intelligent Canadian perspective. Subscribe to the magazine and the Sharp Insider newsletter at Sharpformen.com

Mike Blanchfield covers international affairs for The Canadian Press in Ottawa.

Underground Takeover – Mike Blanchfield

Foreign Companies are lining up to buy the extraction rights to Canadian oil, nickel and potash and spending billions in the process. Are we selling our birthright?

The town of Kitimat was born in the brash 1950s, the product of a successful marriage between herculean feats of engineering and unabashed visions of grandeur.

Canadian captains of industry carved the town out of old growth forest at the end of the Kitimat River, blasting an industry out of British Columbia’s rugged Coast Mountain range that would sustain its people for the next half-century. The engineers of Alcan – then the Aluminum Company of Canada – saw a rich future in this rugged northwestern BC terrain. The company built the town over four years, as 35,000 workers bored a 16-kilometre tunnel through the mountains and erected a massive hydroelectric dam and aluminum smelter. In August 1954, when Kitimat produced its first batch of aluminum, Prince Phillip was on hand to help celebrate the day.

PDAC NEWS RELEASE: Prospectors and Developers Association of Canada welcomes extension of mineral exploration incentive in 2011 federal budget

March 23, 2011

TORONTO (March 22, 2011) – Scott Jobin-Bevans, president of the Prospectors and Developers Association of Canada (PDAC), expressed support for the inclusion of the Mineral Exploration Tax Credit (METC) in the Government of Canada’s budget, announced today.

“On behalf of our members, many of whom are involved in raising financing for grassroots exploration, I am pleased that the federal government has proposed that the Mineral Exploration Tax Credit be extended for another year,” said Dr. Jobin-Bevans. “Investment in mineral exploration is the first step in addressing Canada’s decline in mineral reserves and the METC program plays a critical role in encouraging investment in Canadian-based projects.”

The 2011 federal budget proposes that the Mineral Exploration Tax Credit, known also as the super flow-through share program, that was due to expire at the end of March 2011 be extended for an additional year to March 31, 2012. As stated in today’s budget, exploration and development of Canada’s rich mineral resources offer important investment and employment benefits in many parts of the country, particularly in rural and remote regions.

PDAC NEWS RELEASE: Highlights from the 2011 PDAC International Convention, Trade Show & Investors Exchange

March 23, 2011

TORONTO (March 22, 2011) Where the world’s mineral industry meets just about sums up this year’s PDAC International Convention. Total attendance was a record-breaking 27,700, up by 26% or 5,000 from last year. Attendees included registered delegates, exhibitors, investors, speakers, sponsors, students, media, staff and volunteers.

In all, 1,000 companies showcased their discoveries and wares at the Trade Show and Investors Exchange in an exhibit space covering the equivalent of eight football pitches. Sixty companies were featured in the Core Shack.

More than 50 foreign delegations, many of them headed by government ministers, attended. The largest contingents came from Argentina, Chile, China, India, Mexico and Peru. Many countries booked rooms where their governments could promote mining and investment opportunities, and the crowds flocked to find out more about Armenia, Bolivia, Portugal, Australia, Greenland, Brazil. Ecuador, South Africa, Peru, Chile, Colombia and India.

Thompson Citizen Editorial: Hats off to the save-the-smelter team (February 23, 2011)

March 22, 2011March 22, 2011

This article was originally published in the Thompson Citizen which was established in June 1960. The Citizen covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.

February 23, 2011

While we haven’t written in this space about the local Vale refinery and smelter saga since Jan. 5, it hasn’t been for lack of interest in recent weeks. Rather, we stepped back to watch events unfold and see how things play out a bit before offering our two cents again from the cheap seats.

At the same time, however, we are cognizant that some things merit commenting on along the way before the final chapter is written in this story, which is likely some time away given the final shutdown isn’t scheduled until 2015. It’s probably trite but nonetheless true to observe the obvious: a lot can happen in four years.

Last week, the save-the-smelter team as they’re sometimes dubbed by us (it includes the refinery, too, of course, but there are only so many words you can include in a catchy headline), travelled to Toronto again to meet with Tito Martins, chief executive officer of Vale Canada and executive director of base metals for the international parent company, and his senior management team, and deliver proposals aimed at keeping the smelter and refinery open beyond 2015 with those 500 “value-added” jobs Thompson NDP MLA and Infrastructure and Transportation Minister Steve Ashton often mentions, rightly stressing those two words – value added.