Premier Brad Wall’s Potash Saskatchewan Address – October 21, 2010

Potash Saskatchewan address

Premier Brad Wall gave this speech to the Saskatchewan Chamber of Commerce, at the Conexus Arts Centre in Regina, Saskatchewan on Oct. 21, 2010

(Check against delivery)

The world has, I think in many ways, tuned in a little bit more to what has been happening in Saskatchewan over the last number of years and certainly over the last number of weeks. 

If you were watching the Google trends back in August, when the BHP Billiton hostile takeover story broke, you would have seen a real spike in terms of the number of stories with the word Saskatchewan.  In fact, we broke our own record in terms of the number of media stories around the world involving the word Saskatchewan, at the time of this announcement of this hostile takeover.  It wiped out previous record, happily, because the previous record was the 13th man story from the Grey Cup. So there have been some unintended benefits to all of this.

I remember a night in August when I got a call from someone who told me that the next day the news would break, that the PostashCorp of Saskatchewan would become the target of a hostile takeover bid by BHP Billiton.  It was one of those rare nights where Tami and I had actually organized a date night.  We were going to be going to the movie, and the movie we went to that night was Inception.  I don’t know if you have seen it, it’s the new DiCaprio movie and it’s pretty complex.  It’s one of those movies you’ve got to pay attention to, there’s about seven different dream plots with one dream plot and I don’t remember anything of the movie, I can tell you that.  I was thinking mostly about potash and what the implications for what I had just been told might be.  Tami and I are going to have to rent that when it’s out on DVD. 

Immediately upon learning the news, the Government of Saskatchewan struck an internal task force made up of representatives, senior officials in Finance, Energy and Resources, in Justice and in Enterprise Saskatchewan.  We retained the services of the Conference Board of Canada to help us provide some qualitative analysis as to the impact of this takeover on the provincial economy and on the revenues for the province of Saskatchewan. 

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STATEMENT BY PROSPECTORS AND DEVELOPERS ASSOCIATION OF CANADA AND THE MINING ASSOCIATION OF CANADA ON THE DEFEAT OF BILL C-300

OTTAWA, Canada (October 27, 2010) – The Prospectors and Developers Association of Canada (PDAC) and the Mining Association of Canada (MAC) today issued the following statement in response to the defeat of bill C-300, a private members bill entitled An Act Respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries in the House of Commons:

“Canada’s mining and exploration industry, which employs more than 306,000 Canadians, is pleased that the Parliament of Canada saw the importance of defeating bill C-300, a fundamentally flawed private members bill that would have damaged Canada’s exploration and mining industry and jeopardized jobs here in Canada and the local jobs in the communities in which we work. We appreciate the efforts of the Government of Canada in exposing the flaws of the bill and in working to defeat it in the House.

Canada’s mining and exploration industry is already actively engaged in Corporate Social Responsibility practices and bill C-300 would not have enhanced Corporate Social Responsibility (CSR). Canada’s competitors would have used the passage of bill C-300 as a tool to undermine the competitiveness of Canadian firms in the highly competitive global extraction industry. Frivolous or vexatious claims would have been filed against Canadian firms by competitive interests at no cost or risk to themselves, tying up important projects and putting well paying local jobs and community development projects in developing countries at risk.

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Chile Mine Rescue Teaches Us That Modern Civilization Built on Mining — John R. Hunt (On the Rocks)

I spent most of one night and the next day watching the rescue of the Chilean miners. Like most people I am delighted, and a little surprised, that the rescue was successful. The news they are likely to make a very healthy buck out of their adventure is also pleasing.

I thought the commentators missed one point when they were pontificating about mining and miners. If it were not for the metal ore miners dig up, modern civilization could not exist. This is not an exaggeration. Just walk around your home and consider all the things made out of metal, or held together with metal.

Plastics have replaced some metal but I even your computer has some vital bits of gold and other precious metals performing tasks I do not understand and cannot spell. That awful tangle of wires that connect your computer, printer, scanner and also connect to the power source are most likely made of copper, possibly from the same mine the 33 Chileans were trapped in.

Mining is dangerous, even if safety regulations have made mining a lot safer in Canada than in many other countries. Even as this is written there is news of miners trapped beneath the surface in Ecuador and a much bigger and nastier accident in China.

According to many reports the Chinese mines kill more than 2,000 miners a year. There are not only many big operations which can be supervised but also many illegal small mines where anything goes.

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John Pollesel, Vale Canada COO and Director for Base Metal Operations North Atlantic, Speech to Sudbury Chamber of Commerce – October 13, 2010 – Sudbury, Ontario

John Pollesel, Vale Canada COO and Director for Base Metals North Atlantic

John Pollesel is the Director for Base Metal Operations North Atlantic and Chief Operating Officer for Vale Canada, reporting to Tito Martins, Executive Director Base Metals and Vale Canada Chief Executive Officer.

John Pollsel has extensive management experience, specializing in the mining industry where he has been employed for more than 20 years. He joined Vale in August of 2008 in the capacity of VP Sustainability and Business Services for the Ontario Operations and in July of 2009 was promoted to the role of VP Production Services and Support for the Canada/UK region and General Manager for Ontario Operations.

Mr. Pollesel is a Fellow of the Society of Management Accountants of Ontario and a Certified Management Accountant. He graduated from Laurentian University with a Masters degree in Business Administration and holds an Honors BA in Accounting from the University of Waterloo.

Our objective is to create a sustainable, profitable and long-term operation in Sudbury – contributing further decades of employment, economic growth and community support. There is an important caveat, however. We must demonstrate our willingness and ability to become a more productive and efficient operation. Aspiring to the status quo is simply no longer an option. – John Pollesel, Sudbury, Ont.

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Thank you, and good evening everyone. It’s a pleasure to have been invited to speak to you at your Chamber’s Annual General Meeting.

Vale is a proud member of the Chamber of Commerce and we’ve been active on the Chamber’s Board for many years. In fact, personally I was proud to have sat as a Board member a few years back.

Vale and the Chamber have enjoyed a very long and productive relationship together…the Chamber has been there for us during some tough times, and we’ve been there for the Chamber as an active partner on a number of fronts. It’s a beneficial and productive partnership that we look forward to continuing.

I want to especially recognize Debbi Nicholson, who has been an exemplary leader of the Chamber for more than 30 years.

Debbi – you lead with dignity, good business sense and a keen awareness of what is best for our community. I congratulate you and your team on all the things you’ve accomplished throughout your long tenure with the Greater Sudbury Chamber.

* * * * *

Tonight, I am here to speak to you about Vale and our future in the Sudbury Basin.

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Sarah Palin’s Defence of Alaskan Mine Threatens Canadian Fish [Mine Tailings in Lakes] – by Toronto Star National Writer Linda Diebel

Linda Diebel is a National Writer for the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion. This article was originally published October 3, 2010.

The Dolly Varden carp isn’t much of a looker except, perhaps, to the opposite sex of the same scaly species. What is exceptional (other than a name from Dickens) is how the impending death of about a thousand of these duller members of the salmon family changed Sarah Palin’s life and influenced the fate of fish across Canada.

Of course, they’re not the only factor. Still, their role is impressive, considering these particular fish in southeastern Alaska’s Lower Slate Lake are, in all likelihood, quite dead.

It’s a sprawling story that begins with fish and grows to include mining conglomerates, politicians, lobbyists, promoters, environmental activists and, in Canada, lakes with names like Bucko, Bamoos, Fish (Teztan Biny to the Tsilhqot’in people), Sandy Pond and Ruby Creek.

Already, there are winners and losers; there will undoubtedly be more. Let me explain.

In June, 2007, Palin was governor of Alaska with political ambitions as vast as the northern sky. She’d already hired a savvy East Coast PR firm to promote Alaska (and herself) but she needed serendipity. And that’s exactly what pulled into Juneau in the form of a luxury cruise, sponsored by the conservative magazines The Weekly Standard and National Review. On board were elite American journalists, including William Kristol, Fred Barnes and Michael Gerson.

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Mining Industry Human Resources Council (MiHR) Receives $1 Million to Support Labour Market Research – by Ryan Montpellier

Ryan Montpellier is the Executive Director of the Mining Industry Human Resources Council (MiHR)

On September the 17th, the Honourable Christian Paradis, Minister of Natural Resources, announced funding of $1 million to the Mining Industry Human Resources Council (MiHR) in support of mining-related labour market information (LMI), under the Council’s Mining Workforce Information Network (MIWIN) project. The funding will be used to build a counter cyclical strategy for industry, enhance supply side information and establish a mining LMI centre of excellence, all requested by industry. 

Launched in 2007, MIWIN now provides accurate and timely labour-market information to the mining industry and its stakeholders. This entails forecasting future hiring requirements in the sector, by occupation and region, based on a number of factors including productivity, turnover, retirement rates and fluctuations in commodity prices — the largest driver of employment in the sector. 

The Canadian mining industry faces several labour market challenges and tens of thousands of skilled positions must be filled in the next decade to keep the industry robust. Despite impressive increases in the participation of various demographic groups (e.g., Aboriginal peoples, women and new Canadians), employers are still faced with an aging workforce and a looming labour shortage.

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Corporate Social Responsibility and Canada’s Mining Exploration Sector: Doing the Right Thing Wherever We Work – Jon Baird (June 23, 2009)

Jon Baird, Past President of the Prospectors and Developers Association of Canada (PDAC), gave this speech to the Economic Club of Canada on June 23, 2009

Check against delivery

Thank you for your generous introduction, Bill. In a 2007 speech here at the Economic Club, National Chief Phil Fontaine of the Assembly of First Nations didn’t pull any punches.

He opened his talk by describing the poverty, suffering and frustration that too many of his people live with.
He called for businesses to join the AFN’s Corporate Challenge and work together with First Nations to help address long standing problems and alleviate poverty. The National Chief described the resource industry as a natural partner for First Nations and called on both groups to work together for their mutual benefit.

So it’s fitting that the PDAC is here today to publicly introduce our new corporate social responsibility initiative, e3 Plus: A Framework for Responsible Exploration.

Aboriginal people and Europeans have been working together on the hunt for minerals in Canada since Jacques Cartier arrived here 500 years ago looking for, he said, “gold, rubies and other gems.”

The PDAC marks the industry’s long connection with Aboriginal people with the Skookum Jim Award, which is presented at our convention in Toronto every March. It recognizes Aboriginal achievement in the industry. Skookum Jim was a Tagish man who led the group that discovered gold in the Klondike in 1896 and touched off the Yukon gold rush.

Those of you outside the mining community may not be aware of how closely geoscientists in this country work with First Nations people.

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Nunavut’s Inuit and Agnico-Eagle Partner and Embrace Mining to Secure Their Futures – 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 and visited Baker Lake, Nunavut to file this article.

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.

The Inuit elders have embraced Agnico’s vision of gold mining.
They know mining will  provide  education, training and well-paying jobs for many years.

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%.

The acquisition brought with it 10 Crown mining leases and three Nunavut Tunngavik exploration licences in the Kivalliq District, 70 km west of Baker Lake. Three deposits -Portage, Goose Island and Vault -dot the property along a 25-km-long trend. The gold deposits are of Archean age and hosted within volcanic and sedimentary rocks.

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Diamonds and Gold – A Common Past, Present and Future – by By Paul Stothart

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. www.mining.ca

With due respect to cobalt and coal, it is fair to state that diamonds and gold are the world’s two most prestigious minerals.  They are the minerals that hold the deepest emotional meaning among consumers, with traditional and cultural ties to commitment, union, luck, love and marriage.  They are also the minerals that are most indicative of personal wealth, affluence, sophistication and social status.  These two minerals and the corresponding industries have long shared a number of similarities in terms of the surrounding market-drivers, price mark-ups and social pressures.     

For example, the fundamental driver of the global market in both gold and diamonds is jewelry.  According to the World Gold Council, fully 68% of the world’s demand for gold over the past five years was for use in jewelry.  While the delineation is less exact in diamonds, it is estimated that gem-quality diamonds used in jewelry account for over 80% of the value of the world diamond market. 

A second point, and the converse from the above, is to note that the industrial application market for diamonds and gold is relatively modest in size.  Only 14% of world gold demand stems from industrial uses (while the remaining 18% is for investment purposes).  While there are important industrial uses in dental, electronics, medical and environmental fields, and growing potential in nanotechnology, these industrial uses for gold face the challenge of being commercially feasible at raw material price points that are currently well north of $1000 per ounce. 

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A History of the Canadian Shield – Canada’s Mineral Treasure Trove – David Kilgour (Part 2 of 2)

The Honourable David Kilgour P.C., is the Conservative Member of Parliament for Edmonton Southeast. http://www.david-kilgour.com/mp/house.htm

North of the Fiftieth Parallel

In addition to its northeast and northwest, Ontario also has another north, the one beyond the fiftieth parallel where boreal forests become tundra. Sioux Lookout, Moosonee and Red Lake/Balmertown are its major cities; places like Pickle Lake and Ear Falls are its “towns.” Most of its approximately 30,000 residents live in isolated communities, accessible mostly by bush planes.

Culturally, the various Ontario Norths differ both from each other and from the southern part of the province. Many non-British newcomers reached parts of northern Ontario and Prairie Canada in roughly equal numbers and at about the same time. Today, despite the passage of three generations, multiculturalism has triumphed in numerous northern communities.

Francophones are found everywhere in northern Ontario, although most numerous in the northeast, and today command reasonable access to francophone education, radio and health services in a number of census districts. A second major group is the aboriginal peoples who predominate “north of fifty” either as status Indians, with treaty rights, as non-status Indians, or as Métis. Ojibway is spoken in the south; Ojibway and Cree in the centre; Cree only in the north. Band councils and Band chiefs are the municipal governments of these peoples. It troubles small native communities who live from fishing and hunting that their band chairmen are not yet recognized by Queen’s Park and Ottawa as they are by other Indians.

The living conditions of Ontario aboriginals tend to vary with the situation of the neighbouring white centres. The Fort William band members near Thunder Bay live quite well; conditions for people living near less prosperous centres are often outrageous. Native communities in some remote reserves compare unfavourably with settlements in developing world nations. Virtually nowhere today do hunting, fishing, trapping, and wild rice harvesting provide decent livings. High school and junior education is generally inadequate for young persons choosing either to remain in the north or to seek future-oriented jobs in the south.

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Teck CEO Don Lindsay on the Hollowing Out of Canada’s Mining Sector – Globe and Mail Interview

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. This quote was from the June 14, 2010 edition of the Globe and Mail’s Report on …

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[Vale Strike] In Sudbury it’s Restive, Not Festive – by Tony Van Alphen (Toronto Star-December 19, 2009)

Tony Van Alphen is a Business Reporter for the Toronto Star, which has the largest circulation in Canada. The paper has an enormous impact on Canada’s federal and provincial politics as well as shaping public opinion. This article was originally published on Saturday, December 19, 2009.

Workers’ mettle gets test as Vale Inco strike drags into bitter northern winter , It’s a war zone here. Their tactics are designed to provoke us like never before. They’re not interested in getting back to bargaining.

SUDBURY–Led Zeppelin’s “Whole Lotta Love” is blasting from a satellite radio in the tent’s makeshift living room.

A couple of plush La-Z-Boy rockers and a couch surround a blazing wood stove. The fresh Christmas tree in the corner gives the place a cozy holiday feeling.

Three hearty men in heavy overcoats and toques hover around the stove, slap their gloves and exchange brotherly greetings. The song ends and they step outside into another world.

There’s not a lot of love or warmth there. They’re on the picket line just after sunrise a few days before Christmas at Vale Inco’s Clarabelle Mill.

It’s a flashpoint in the five-month standoff between some 3,100 workers and one of the world’s biggest mining companies.

The workers face a bitter wind, -20C temperatures and a company spending millions of dollars to keep them in line. Strikers walk the line and delay trucks and cars for 12 to 15 minutes before allowing them through to the sprawling mill up the road. Then, they walk some more.

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Vale Inco’s Bottom Line – How Much Does it Cost to Produce a Pound of Nickel in Sudbury, Canada? – by Kelly Louiseize

This article was orginally published in Northern Ontario Business on March 18, 2010. Established in 1980, Northern Ontario Business provides Canadians and international investers with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Differing opinions on Sudbury’s costs

When Brazil’s Vale SA snapped up Inco for $19 billion in 2006, there was plenty of buzz as to what the mining giant would do with the 107-year old Canadian miner.

Traumatic restructuring fears were quickly put to rest by Murilo Ferreira, the Brazilian in charge of the nickel division who spoke at a Sudbury luncheon. He said there would be very little change with this “successful company.”

Less than a year later, Ferreira stepped down and was replaced by Tito Martins, a former Vale communications executive who together with CEO Roger Agnelli began a series of strategies to make Sudbury more globally competitive.

Agnelli stated that based on current price levels the Sudbury operations was one of the “highest cost operations” Vale Inco owns.

Change was needed to make Sudbury more sustainable.

Productivity and bonuses were red-flagged five years ago when Mark Cutifani was the helmsman at Inco Ltd. Under his direction the intent was to increase productivity by 30 per cent and take another look at the nickel bonus when negotiations came around.

“We knew we all had to work together,” Cutifani said in a phone interview with Northern Ontario Business this past month.

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‘Kill the Avatar Bill!’ (Canada’s Anti-Mining Bill C-300) – by National Post Editor Peter Foster

This opinion piece was published in the National Post, Canada’s second largest national paper on March 09, 2010,

If passed, Bill C-300 would open up Canadian companies to attacks by those who believe mining should stop

“Kill the Avatar bill!”

That’s the cry at this week’s annual meeting of the Prospectors & Developers Association of Canada in Toronto. Not quite in those words, mind you, but the private member’s bill in question, C-300, is based on the same lurid anti-capitalist, anti-mining fantasies that provided the psychic substructure for James Cameron’s mega-grossing but Oscar-short movie.

Activists last week bought an ad in Hollywood organ Variety to suggest analogies between oilsands development and the sci-fi epic’s tale of interplanetary resource rape and alien cultural genocide. So far, C-300’s supporters don’t seem to have followed that tack, but then perhaps that’s because they include the Catholic Church, which has condemned Avatar for its mystic eco-mumbo jumbo (I know. Pot. Kettle. Etc.)

This week, the PDAC opened a campaign to bombard MPs with letters opposing this potentially disastrous piece of legislation. The real wonder is that the bill, which was proposed by Liberal MP and NGO stooge John McKay, is still alive. In fact, having survived prorogation, it seems to stand little chance of passing a third reading, but then it was never expected to pass a second reading.

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Canada’s Very Flawed Bill C-300 Anti-Mining Legislation Should be Withdrawn – by Gary Nash

Gary Nash is a former Assistant Deputy Minister at Natural Resources Canada and former CEO of the International Council on Metals and the Environment. His remarks were made recently to a Parliamentary committee during hearings on Bill C-300. He may be reached at 613-748-0142 or GNash@rogers.com.

The purpose of Bill C-300 is “to ensure that companies engaged in mining, oil or gas activities and receiving support from the government of Canada act in a manner consistent with international environmental best practices and with Canada’s commitments to international human rights standards.”

Provisions in the bill allow any person anywhere to register a complaint with the Ministers of Foreign Affairs and International Trade against a Canadian company that may not have adhered to various international human rights and environmental norms, principles, conventions or standards in a developing country.

Ministers, in turn, will then consider and possibly examine the complaint to decide within eight months whether the complaint is valid or if the complaint is frivolous. In either case, ministers will publish the results of their decisions in the Canada Gazette (not exactly a widely publically read document in Canada or abroad).

The sanctions to be applied against a guilty company are the withdrawal of any support for the project in question given by Export Development Canada (EDC) as well as a withdrawal or avoidance of any investment by the Canada Pension Plan (CPP) in the shares of the company.

While few would dispute that the intent of the bill is laudable, its enactment will create very serious issues for federal governments in Canada and indeed will diminish the contribution to Canada from overseas investment by our mining industry.

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