[Ontario] Wynne’s scary ‘safe hands’ – by Margaret Wente (Globe and Mail – May 6, 2014)

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.

What does Kathleen Wynne have against hairstylists? The nice young woman who snips my bangs would like to know. To her surprise, she is now being regulated by a new body called the Ontario College of Trades. It wants her to fork over $120 every year (plus tax) for a piece of paper saying she’s qualified to do her job.

In order to get a licence, hairstylists already log 1,500 hours of school, write exams and serve apprenticeships. Now they must also have a Grade 12 diploma and pass a written government test. But hey! When it comes to protecting the public from rogue snippers, you can never be too careful.

The hairdresser tax is a small but potent example of what’s gone wrong in Ontario over the past decade. As manufacturing evaporated and jobs dried up, the Liberal government threw sand in the gears. All its instincts are regulatory and interventionist. At a time when we desperately need smaller businesses to create jobs, it has ratcheted up the cost of doing business and smothered them in red tape.

Meanwhile, it’s kept spending as if the good times never stopped. Prudent Ontarians used to deplore Quebec – those profligate French! – as the free-spending wastrel of Confederation. But now, we’re the wastrel. Our dour Scottish accountant forebears must be spinning in their graves.

Read more

Baffinland could start mining Mary River this summer – by CBC News North (May 05, 2014)

http://www.cbc.ca/north/

Baffinland Iron Mines Corporation could begin its first phase of extracting ore from the Mary River mine site this summer.

The scaled-down version of the iron mine on North Baffin Island got its final approval from Minister of Aboriginal Affairs and Northern Development Bernard Valcourt last week, following recommendations from the Nunavut Impact Review Board.

NIRB plans to hold a final workshop by conference call mid-May to prepare a project certificate, which will outline the terms and conditions, and the agencies responsible for them, that the mine will have to meet in order to keep operating.

Greg Missal, vice-president of corporate affairs with Baffinland, said the company was pleased with the final terms and conditions imposed on the mine and will start mining iron ore at the site this summer or fall.

“It’ll start to be trucked up to Milne Inlet and it’ll be ready to be loaded onto ships during the open water season of 2015.” The dock that will carry that ore on to ships is now being designed and engineered. Missal said that dock will determine the precise number of ships needed to move the ore.

Read more

Poison pill works in takeover battle for Augusta – by Peter Koven (National Post – May 5, 2014)

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

A ruling in the battle for Augusta Resource Corp. shows that Canadian securities regulators are willing to inject some actual poison into poison pills when shareholders clearly support the anti-takeover measure.

Late Friday, a British Columbia Securities Commission panel declared that Augusta’s shareholder rights plan (or poison pill) should stay in place until July 15. HudBay Minerals Inc. launched a $444-million hostile bid for Augusta back in early February, meaning the regulator gave Augusta more than five months to study its alternatives.

That is an extraordinary amount of time by Canadian standards. Historically, regulators have given hostile takeover targets mere weeks before striking down their poison pills. The pills were treated as a brief delaying tactic while the targets studied their options, and were not viewed as a serious impediment for hostile bidders.

However, that mentality is starting to change. After years of complaints that acquiring Canadian companies is too easy for hostile bidders, the Canadian Securities Administrators have proposed new rules that would allow companies to deploy rights plans for a full year as long as they are approved by shareholders. The plan could then be renewed for another 12 months with a fresh vote.

Read more

Asian coal demand is set for robust revival, study says – by Brent Jang (Globe and Mail – May 5, 2014)

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.

SEATTLE — Global coal markets are depressed amid a supply glut, but reports of the commodity’s demise have been greatly exaggerated, a new study says.

Prices for thermal coal, a commodity used by power plants to generate electricity, fell recently to less than $75 (U.S.) a tonne, compared with $190 in mid-2008. And prices for metallurgical (or coking) coal, a key ingredient used in the production of steel, have tumbled to $120 a tonne, from $300 in late 2011.

Some industry observers have warned that there will be many more dark months ahead for the coal industry. But the long-term forecast calls for robust Asian demand, which should give producers hope, as long as they are able to ride out the tough times.

“Despite increasing environmental opposition to the use of coal, coal still plays a crucial role in the global energy mix and will continue to do so for the foreseeable future,” according to a study by Shoichi Itoh, senior analyst at the Tokyo-based Institute of Energy Economics. “The importance of coal use will be all the more important in Asia.”

Read more

Meadowbank helps put Agnico Eagle back in the black – by Canadian Press (CBC News North – May 02, 2014)

http://www.cbc.ca/north/

Agnico Eagle Mines has reported a net income of $108 million in the first quarter of 2014 — a big improvement over its $406 million loss in 2013.

Gold prices are lower than at this time last year. Rather, Agnico Eagle says it set a company record for gold production in the last three months, extracting about 366,421 ounces overall at a cost of $567 US per ounce. That’s $200 less per ounce than in the same three months in 2013.

Agnico Eagle president and CEO Sean Boyd said a lot of the first-quarter success was due to the company’s largest gold producer, the Meadowbank mine in Nunavut, but added there was also strong performance from mines in the Abitibi region of northwestern Quebec.

“Meadowbank carried on its strong performance from Q4 of 2013.In fact, it had a very strong entire 2013. We carried that momentum into the first quarter (and) we’re seeing strong production in April. We have encountered higher grades there.”

The company is doing exploration around Meadowbank, about 110 kilometres north of Baker Lake, through which it hopes to extend the life of the mine. This year, it will spend about $2.2 million in exploration in and around the mine site, including at the IVR project, about 50 kilometres northwest of the mine.

Read more

Goldcorp, other gold miners’ first-quarter earnings show progress on cost cuts – by Peter Koven (National Post – May 2, 2014)

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

TORONTO – Gold miners promised investors they would cut operating costs, and recent earnings reports show they are doing just that. First quarter earnings from Goldcorp Inc., Agnico-Eagle Mines Ltd., New Gold Inc. and Barrick Gold Corp. demonstrate they are all making significant improvements on the cost front. And while there are further reductions to be made, investors and analysts have been pleased with what they’ve seen so far.

This earnings season is an instructive one for the gold sector, because the first quarter of 2013 was the last one before gold prices plummeted and companies began a frantic process of yanking costs out of their business. By comparing this year’s results to last year’s, investors get a good sense of how aggressively miners have acted.

On Thursday, mining giant Goldcorp Inc. reported all-in sustaining costs of US$840 an ounce for the first quarter. The result beat its own forecast and is a significant decline from US$1,134 an ounce in the same quarter a year ago (though that was an unusually bad result for the company).

“Goldcorp’s solid first quarter results underscore what we expect to be recurring themes in 2014: High quality production growth, excellent cost performance and strong progress toward completion of our three current growth projects [Cerro Negro, Eleonore and Cochenour],” chief executive Chuck Jeannes said on a conference call.

Read more

[Saskatchewan] Mining exploration spending forecast to mirror ’13 – by Scott Larson (Regina Leader-Post – May 2, 2014)

 http://www.leaderpost.com/index.html

The amount of capital invested in mining exploration in Saskatchewan this year will mirror last year’s total of $236 million, says Gary Delaney, chief geologist with the province’s Ministry of the Economy.

“Most of the focus is between potash and uranium, but we will see a few million in gold and I suspect we might see a little more optimism in the diamond area,” said Delaney, who spoke at the fourth annual Saskatchewan Mining conference Thursday in Saskatoon.

The ministry conducts a survey to see how much was spent last year and what people are planning to spend this year (estimated at $234.6 million). That ranks Saskatchewan fourth in mining exploration expenditures in Canada.

Spending in 2014 will be split fairly evenly between juniors (who don’t have production) and major producers, he said. It has been a rough few years for junior miners trying to raise capital. Between 2012 and 2013, the amount of money junior companies were able to raise dropped by 50 per cent. “These are pretty rough times,” Delaney said.

Uranium There are bright spots, like the Patterson Lake South uranium discovery by Fission and Alpha Minerals in the Athabasca Basin. Companies with stakes in that area have been able to raise money.

Read more

Editorial: Barrick-Newmont fling ends in acrimony – by John Cumming (Northern Miner – April 30, 2014)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists.  jcumming@northernminer.com

It’s gotta rank right up with the worst “first dates” in recent mining history: the proposed merger between gold titans Barrick Gold and Newmont Mining broke off a week after it was made public through media reports in April, and then things soured with a flurry of rival press releases pinning the blame on the other party for the breakdown.

Barrick and Newmont executives had gone so far as to negotiate a term sheet for a merger that was signed by both parties on April 8, after months of private negotiations. It’s a deal that hearkened back to 2005–2006 — the era of the growth for growth’s sake mega-merger — and would have been the biggest merger in the history of gold mining.

But by April 28, merger discussions were officially terminated. It didn’t stop there, however, with discreet silence or any deflecting “it’s not you, it’s me” sentiment: Barrick put out a press release and told reporters that it had wanted to finish the merger, but Newmont’s board had backtracked.

Newmont slipped that jab, came back hard with its own, by making public a private letter it had sent to Barrick’s board the week before.

Read more

Quebec mining industry urging provincial government to help restore stability – by Lia Levesque (Montreal Gazette – April 28, 2014)

http://www.montrealgazette.com/index.html 

THE CANADIAN PRESS – MONTREAL – The province’s mining community is urging Quebec’s new Liberal government to help restore some stability in the industry.

Investor confidence was tarnished by numerous political skirmishes that preceded the adoption of the province’s new Mining Act last December, the head of the Quebec Mining Association said Monday.

Josee Methot said the process took its toll on the industry and she added that the new Liberal government will have to play a part in restoring confidence.

“We absolutely have to reverse this trend,” Methot said in a speech to the Montreal Board of Trade. “The image investors have of us is very poor, so we need to change this trend and look to the future.” Methot’s plea came during a panel discussion organized by the board of trade at the launch of Quebec mining week.

Several hurdles had to be overcome before the Mining Act was finally adopted. The contentious issues included royalties, protection of the environment, the establishment of protected areas, ore processing and the role of municipalities.

Read more

Harper’s petro-folly: How Canada fumbled its post-Keystone energy vision of a gateway to China – by Edward Greenspon, Andrew Mayeda, Jeremy van Loon and Rebecca Penty (Bloomberg News/National Post – May 2, 2014)

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

Stephen Harper was in need of a new friend with a big appetite for oil. The Americans just weren’t cutting it.

It was February 2012, three months since President Barack Obama had phoned the Canadian prime minister to say the Keystone XL pipeline designed to carry vast volumes of Canadian crude to American markets would be delayed.

Now Harper found himself thousands of miles from Canada on the banks of the Pearl River promoting Plan B: a pipeline from Alberta’s landlocked oil sands to the Pacific Coast where it could be shipped in tankers to a place that would certainly have it — China. It was a country to which he had never warmed yet that served his current purposes.

Harper stood before a business audience in a luxury hotel banquet hall in Guangzhou, capital of China’s most populous province, putting on his best pro-China face while touting his nation’s virtues. “Canada is not just a great trading nation; we are an emerging energy superpower,” he said surrounded by a phalanx of red Chinese and Canadian flags.

Oil was top of mind. He noted that a single country — the U.S. — took 99% of Canada’s exports, a situation he described as contrary to Canada’s commercial interests.

Read more

Sherritt Tops Armoyan With Putin’s Help: Corporate Canada – by Christopher Donville (Bloomberg News – May 1, 2014)

http://www.bloomberg.com/

Nickel and energy producer Sherritt International Corp. (S) is poised to fend off an attack by activist shareholder George Armoyan, helped by the soaring price of the industrial metal.

Nickel has risen 32 percent this year, propelling Sherritt to top performer among its Canadian base-metal peers, as Armoyan has sought to convince investors to replace three of the Toronto-based mining company’s nine directors with himself and two others.

“I think for George, the worst thing that could have happened was nickel prices went up,” David Taylor, the Toronto-based chief investment officer of Taylor Asset Management Inc., said by telephone last week. “He would have had a much better chance if this stock was still hovering around three bucks.”

Sherritt, which closed today at C$4.68 in Toronto, has advanced 26 percent this year on an Indonesian ban on nickel-ore exports. The threat of wider economic sanctions on Russia for President Vladimir Putin’s annexation of Crimea and skepticism of his efforts to defuse tensions in eastern Ukraine also lifted the price of the stainless-steel ingredient. Nickel generated 50 percent of Sherritt’s first-quarter sales, the company said yesterday in its earnings statement.

Read more

Peter Munk’s bittersweet goodbye to Barrick – by Rachelle Younglai (Globe and Mail – May 1, 2014)

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.

Peter Munk, a Hungarian refugee whose ambitions led him to build hotels in the South Pacific and create stereos for Frank Sinatra, said goodbye to Barrick Gold Corp., the company he founded three decades ago and turned into the world’s biggest gold producer.

The 86-year-old Canadian businessman stepped down as the company’s chairman on Wednesday, a bittersweet moment for Mr. Munk, who has described Barrick as his life and the one thing that keeps him up at night.

“You can take, maybe, Munk out of Barrick. You can’t take Barrick out of Munk,” he said at the company’s annual meeting of shareholders in Toronto.

Mr. Munk knew nothing about gold mining when he took a stake in a small mine near Wawa, Ont., in 1983. He spent the next 30 years buying out rivals and building Barrick into a gold giant.

He has been succeeded by former Goldman Sachs executive John Thornton, who he says shares his vision of transforming Barrick into a Canadian-based mining titan with production in all types of metals.

Read more

Sherritt International swings to Q1 loss – by Henry Lazenby (MiningWeekly.com – April 30, 2014)

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Diversified Canadian miner Sherritt International on Wednesday reported a first-quarter net loss, as a charge at its new Ambatovy nickel mine, in Madagascar, and financing costs related to a weakening Canadian currency impacted results.

The Toronto-based miner, which specialises in mining and refining nickel from lateritic ores at its operations in Canada, Cuba, and Madagascar, reported a first-quarter loss of C$48.2-million, or C$0.16 a share, compared with earnings of C$23.1-million, or C$0.08 a share.

Earnings were affected by the impact of higher financing outlay related to foreign exchange losses as a result of the weakening Canadian dollar against the US greenback and by depreciation, depletion, and amortisation being recognised at Ambatovy for the first time following the commercial production declaration in January, which totalled C$27.5-million for Sherritt’s 40% share.

The Ambatovy Joint Venture (JV) is a vertically integrated nickel and cobalt mining, processing, refining and marketing JV between subsidiaries of Sherritt (40%), Sumitomo (27.5%), Korea Resources (27.5%), and SNC-Lavalin (5%).

Read more

Peter Munk says he’s leaving Barrick Gold in good hands – by Lisa Wright (Toronto Star – May 1, 2014)

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.

Outgoing founder and chairman praises management team and new board chair amid tough times in the gold industry in emotional farewell at annual meeting.

Gone, but definitely not forgotten. That was the tone of Barrick Gold Corp.’s annual meeting in Toronto Wednesday, which marked the emotional farewell of outgoing chairman and founder Peter Munk, and the release of dismal first quarter financial results amid the lacklustre gold price.

The auditorium was filled with the requisite Bay St. suits and shareholders while the annual group of environmental protesters outside hoisted a 15-foot Munk puppet and waved signs like “Gold is a toxic asset” to mark the 86-year-old’s departure.

But it was really Munk’s show, in which he made a farewell speech that drew laughs, hugs, kisses and a standing ovation for his 30 years at the helm of the firm that began as a penny stock with one mine in Northern Ontario to the world’s largest gold miner.

“As much as we’d like to believe we are eternal, the reality hits home,” he said. “The time has come to hand it over.”

Read more

Baffinland wins approval for scaled-down Nunavut iron mine (CBC News North – April 29, 2014)

http://www.cbc.ca/north/

Baffinland Iron Mines has won the go-ahead to proceed with a considerably scaled down version of its proposed iron mine on North Baffin Island.

In December of 2012, Baffinland was approved to move 18 million tonnes of iron ore each year, shipping it first by rail to the west coast of Baffin Island, then by ships that would travel year round through the ice-choked waters of Foxe Basin to markets in Europe.

Just weeks after winning approval for the plan, Baffinland changed it, proposing a phased approach that would move about 3.5 million tonnes of ore per year using an existing road and port on the eastern side of Baffin Island, and citing the poor economy as a reason for doing so.

To accommodate the change of the plans, the Nunavut Impact Review Board modified 44 of its initial 182 terms and conditions for the mine and added eight new ones.

In a letter to the Nunavut Impact Review Board today, Bernard Valcourt, minister of Aboriginal Affairs and Northern Development, accepted most of those changes, modifying nine and rejecting one.

Read more